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96-1376 � • Council File# \ b " ��� � - . •°. '� �� � �� � � �\' � I ��° Green Sheet# 3(�y R � RESOLUTION C OF SAINT PAUL, MINNESOTA a3 Presented By Referred To Committee: Date 1 RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF A 2 DEVELOPMENT AGREEMENT WITH 3 THE SCIENCE MUSEUM OF MINNESOTA, A CONSTRUCTION 4 GR.ANT AGREEMENT WITH THE STATE OF MINNESOTA 5 AND OTHER NECESSARY DOCUMENTS IN CONNECTION WITH 6 THE SCIENCE MUSEUM PROJECT 7 8 9 WHEREAS : 10 11 12 l . City Council Resolution 87-1613 (November 10, 1987) and 13 HRA Resolution 87-11/4-2 (November 4, 1987) approved the 14 Redevelopment Plan and Development District for the Riverfront 15 Redevelopment Project and Development District pursuant to 16 applicable Minnesota Statutes . The Riverfront Redevelopment Plan 17 establishes the public purposes for the acquisition of real 18 estate for the Project as further described in the Development 19 Agreement Exhibit c-1 . 20 21 2 . Pursuant to Laws of Minnesota, 1994, Chapter 643 , 22 Section 81, the City is authorized to establish and maintain a 23 museum for the purpose of public education and enlightenment, 24 including, but not limited to, a museum of natural science and 25 technology (the "Governmental Program" ) and to exercise the 26 powers in Minrlesota Statutes, Section 471 . 191, to acquire and 27 better facilities for a museum and to lease the same to a 28 non-profit organization to carry out the Governmental Program. 29 30 3 . The Science Museum of Minnesota, a Minnesota non-profit 31 corporation ("SMM" ) proposes to construct new facilities in the 32 Riverfront Redevelopment Area of the City of St . Paul, which 33 facilities will include, but are not limited to, a museum of not 34 less than 300, 000 square feet (the "Museum" ) , a parking ramp 35 containing at least 700 spaces (the "Ramp" ) , and certain related 36 improvements (the "Upper Landing Improvements" ) (collectively, 37 the "Project" ) . 38 39 4 . The Project will be one of the first major developments 40 in the Riverfront Redevelopment Area, will draw a substantial 41 number of visitors to the City, and will have a significant 42 employment impact . 43 44 �. ' - ' � -l�as- Y�ereto _aPP�Q�ed-a--�r�e�����-UL TT .7......-.a-......a� l-�oFe.�oor� #-b� CMM ��n.�1 �L,.. !"�i �cr /F-k�_o IIMom�r�r�r7�� �,�, 45 ��=-�La��.a��n ��.� �.-�T-�zzz� ( S �.c=� \ 0. G � � � 334512.3 `� C�- � �� L :::: ::::.:::.::;::::::::,::.:::::::;:::.::::::::::::::.::::,::;::::::::;:::.;.:::::�::::::::::::::.::.:::::::::::::::::.;.:::::;:;:::.:.::.::;::::::;;:;:: ��:��i��::: ..;;; ...... ::: � �:::::::::.::::::: .:::::::.. ..::::: :��:::::::����:::::::����.::.:::.::::::�� . .����::::. .�. . 1 �::+: �►��::::�.�� .::::c��:::���..:::::::::::::::::::::::::::::::.:::::::::::::::�::::.�.:::::::::.��:::::::: :::.::..�.::::::::::::::.:�::::::::� .....:.......... ::::::::::::.::::.::::::::�::::::::::::.:::..:::....:............ .........................:.....::::.::::::.:.:::::..:::::::::..::::::: : :..:::.:::::::::.:::,::: :.::..::::::.:..:..: . :::::::::::�:::::::::::.::::::::::.:.:�::::::::.::::.�:::: :..::.::.:::::::::.:.::::::::::::::::.:::::.:�.:::.:::.::.::: .:::::::.:::.: :...::..:...:..::::. :..::... ...:..:..:..:: .:..:.....:....:::....:....:.....:.. .. . � ..;..::::....;::>�..�..�::>::::.�. .::: :>:>::.. .... .::.::..:.:.::::::::::.:::: : ::::>:::.;:�:.:.><>::S:a:�:;::�:::::>��ul:::<:;:r��:�d����:::>;:�l�:�r�� � 2 ������?�:�:��.��:.::�r�rk;:.::r� : :�r�u�i��.�.s.:::.�.:::r:.::.::::::::�..�::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::::.:::::::::::::::::::g:::. :;;:>::»»»;;»>;:.::.;�.;;:;;�::;:.:;;:;;:.;;::.;:.;::.;:.;;�.:;;>;;;;;;;:;.;::.;:�?�.;;:.:;.::;:.;;;;:.;::.;:.;:.;:.:>::>...: ,, .:.�..:..:iiii".:: . :..:.:.::..:......�::�..�.:�::'.:iSii�::..:i.Y:�i'.:.�.�i::ii....i'..:::::i.�::.:.::,:::: ... ............. ............. ............... 3 '���:::;::#���:�`�Ei;.c'�,'�.�'�!�.:>::�����3�;;:::�J!��.:�?��,.:: 4 ... . . . . . . . 5 �:�:. The City Council has hereto approved a Memorandum of 6 Understanding between the SMM and the City (the "Memorandum of 7 Understanding") which set forth in a preliminary manner, among 8 other things, the obligations of SMM to construct the Project and 9 the contributions to be made by the City to the Project, which 10 Memorandum of Understanding, by its terms, was to be superseded 11 by a final development agreement. 12 13 fr'�'. In connection with the Project forms of the following 14 documents have been submitted to the City Council: 15 16 (a) a Development Agreement by and between the City 17 and SMM (the "Development Agreement") which sets forth the 18 rights and obligations of the City and SMM with respect to 19 the Project; 20 21 (b) a Construction Grant Agreement by and between the 22 City and the State (the "Construction Grant Agreement") 23 setting forth the terms and conditions under which the State 24 has made a $30, 000, 000 grant to the City for the Museum (the 25 "State Grant") ; 26 27 (c) a Disbursement Agreement Construction Grant by and 28 between the City and the State (the "State Disbursing 29 Agreement") setting forth the terms and conditions under 30 which the State Grant will be disbursed to pay for the 31 design and construction costs of the Museum; 32 33 (d) a Disbursing Agreement by and between the City and 34 SMM (the "Disbursing Agreement") setting forth the terms and 35 conditions under which the State Grant and the City 36 Contribution (as defined in the Development Agreement) will 37 be disbursed to SMM to pay costs of the design and 38 construction of the Museum and the Upper Landing 39 Improvements; 40 41 (e) a Ramp Lease by and between the City and SMM (the 42 "Ramp Lease") pursuant to which the City agrees to lease to 43 SMM the land on which the Ramp will be constructed; 44 45 (f) a Museum Lease by and between the City and SMM 46 (the "Museum Lease") pursuant to which the City agrees to 47 lease to SMM the land on which the Museum will be 48 constructed; and 49 50 (g) a Lease by and between the City and SMM (the "West 51 Building Lease") pursuant to which the City agrees to lease 52 to SMM the existing building currently occupied by SMM. 53 H:\USERS\BUDGET\WPFILES\SMMDVAG.RES `�C�- � � `� � 1 The above documents, together with all exhibits thereto, are 2 collectively referred to as the Project Documents. 3 4 5 RESOLVED: 6 7 8 1. The City Council hereby establishes the Governmental 9 Program and approves and authorizes the Mayor, Clerk, Director, 10 Department of Planning and Economic Development and Director, 11 Department of Finance and Management Services (the "Authorized 12 Officers") to execute the Project Documents in substantially the 13 forms submitted. The approval hereby given to the Project 14 Documents includes approval of such additional details therein as 15 may be necessary and appropriate and such modifications thereof, 16 deletions therefrom and additions thereto as may be necessary and 17 appropriate and approved by the City Attorney, the appropriate 18 staff person or by the officers authorized herein to execute or 19 accept, as the case may be, Project Documents prior to their 20 execution; and said officers or staff inembers are hereby 21 authorized to approve said changes on behalf of the City. The 22 execution of any instrument by the appropriate officer or 23 officers of the City herein authorized shall be conclusive 24 evidence of the approval of such document in accordance with the 25 terms hereof. 26 27 2 . The authority to approve future amendments to Project 28 Documents is hereby delegated to the Director, Department of 29 Planning and Economic Development, subject to the following 30 conditions: (a) such amendments do not materially adversely 31 affect the interests of the City, and (b) such amendments are 32 acceptable in form and substance to the appropriate staff person, 33 the City Attorney and any other counsel retained by the City to 34 review such amendments. Any amendments shall be executed by the 35 Authorized Officers described in paragraph 1 hereof. 36 37 3. The authority to negotiate terms for a loan of 38 approximately $3, 500, 000 to assist in the acquisition of lands 39 for the SMM Project. The Budget Director and Director of 40 Planning and Economic Development will by [November 30, 1996] make 41 a recommendation to the City Council on the structure of the loan 42 and will investigate the feasibility of the following three 43 options: (1) a forgivable loan from the foundation community or 44 other non-profit organizations; (2) a City annual appropriation 45 lease;or 3) a City tax exempt revenue note which is secured by a 46 mortgage. Sources for the repayment of the loan may include but 47 are not limited to new District Heating and Cooling franchise 48 fees attributable to the SMM Project, temporary parking income 49 generated from the acquisition for the Project on the Ryan Block, 50 future sales proceeds from that property, and an annual Cultural 51 Star appropriation of $100, 000 for the term of the loan. 52 53 4. The acquisition of the real estate described in Exhibit 54 C-1 of the Development Agreement is hereby approved, and staff is H:\USERS\BUDGET\WPFILES\SMMDVAG.RES ��—1 a 'l� 1 hereby directed to proceed to negotiate the acquisition. The 2 City hereby authorizes the use of eminent domain and its legal 3 counsel is directed to undertake such eminent domain proceeding 4 if and to the extent necessary to aid in the acquisition of such 5 land and, if necessary, requests the Housing and Redevelopment 6 Authority to undertake such eminent domain proceeding. 7 ..::::. ..:::::::::.::.:::::::::::::::.�:.:::::::::::.::::::.::::::::::::::..::.:::.:::::::.:.:::.::::::::::...:::::::::::::::::.:..:::::::::::..:.;::;:.,:.::.:;�;:.;:.;:.;:.; ::��.;..;:.;:.;;;;:.;:.;:�.;:.;.:.;:.;:.:;.:;. • :.:. ....:::: . ..:...:::::.:......:..:...v-.::::....�..:.......:L: ...v..v .:::. ....�..:::. .:.....�...�:::::... ..:.:y::: : v.. . ..... .. . �>::::>.�:.:. :�:��;�d>::>:b:.;>;:<:I�xa:;::>:>:>t��:<::::S:�a��<:::>a�:�:3x��:i�� 8 �::�> !��?!::::;;�1��:>::<e���:��:::: .:...ar�tt........................... ....:.::......:::,::::::::::::::::::::::::.:::::::::::::::::::::::::::.::::::::.:::::::::::::::::::. :::::::..........::::::::::.::::::::::::::::::::::::::::::.::::::.:::.�:.:.�::::::::::::::::::::::::::::::::�.::...::.:::..............:::.:..:::::::::.�::::::.:�:::::::.:::::::::.�::::.::.:::::::::::::::.: ;.;::;:;:::.:::;:.:::.;..::>;:::;�:.;:.;:::.�.:::<:;�:.:;;>:��:;::�<:..;:..<:::>:::.��:;:::.::;:::::,�::.>�.>,.:::,.::,: ;,>:::>.<;:.::>::::>::::��>::<:;:::::::;:;; ; �.;.;::.;::.;:<:.:<;�::...:.:::.::.:......:.:: ::;:�xat�:::>:::�����.����::::<:;�':�>���oie��::«::��;� 9 �t:�:�::�:�#:�»>:..: ��:�:�:::::::#�:��:�:::::>:��::>::>�:�.. ....�.�'�:�»::::�.�.:...................................... ........................ .......................................... :::::::::::::::::::::::::.:�.:::::::::.:::.::::::::...:..............................�:..:::....:::::::::::.:::::::.:::::::::::::::.:::::::.::::::::::::::�::::::::::::::::::::::�,�.:::::.::::::.:::::::::::::::::::::::::::... ... .:.:..:...:.::::::::.::.:....::::::::::::...:.:::.::.::::::.�:::.�::::::::::::.:::::::::::::.....::::...:::::..::.:.:.::::::::::::::. ::.::::.::::::::::::.:::::::::..::::::: ::::::::::::::::.,.:..:::.::::::::::::::::::::::::::::::::. S:i::.:': .i.ii.ii::i::...:...i.?'r..:... ...:::..::n�:.�.Y..:..:...:y...y..Y.�.'3...:y.�...,j�.,�..:�..y.�.y.rt..::.�fvt��4k., �y7ftA� �F1�. . .: :::. ..�f�: ..'.: .' :x.��.y..:::.+�i�� �:/��.y*�Y� •`.::::i':z:w�'..��iril:i.�i1i!:V1:�L:Fi:::�.f::L��::i:::�:::i::�R�iliLiY���i:�:�i'���::::i:'ti:F�:��:�•:Y:�7"./.�:<4:i:.�7'w.il:�wl:�:.� 10 52�»>:��;:i:�:<:<:::��l��t::;:.�:.:................................................................................................................:.::. .::::::::::::::::::::::::::::::::::::::::::::::::::.:. .::::::::::::::.�:::..................................................:..:::....:::.::::::::::::::::::::::::::::::::::::.:::::::::.:::::::::::::::::::::::::::::::::::::::::::::::::..:..�!............................................. �iii::.i}i:4i::i'iiii:<•::i:.:iii'ii'i:�i'.i::.i'.i'.:�iiiiii::ryiiiiiiiiii}i:.i:.:v.i:.:<� ` ��3�::>::��:::<::I���� ;>`;%;::�»::;:;:.::>�:,:: ::.y;:::>;•;.;::.:> •:::�::��:����»>:>:.;:>�::::.::..::.:::.:•.;:.;;:.;.;�::.;::.;:.;:�.: .;:.;::.;:;<;.;::<.;..;.;;::........................ «<:� :�#: `:>:::�2��::<:::��k����i����:><:::�i:�:':�`:�:<z<:;�1:3: f�.Y�'!.... . 11 ��::<:::�:�:�:�:��'��:?�;e«>;:���:�:��.:::�t..:.E�.....................................................................................................................:......:..:.::.:..::.. i:'::::iti:::!�::i:iiii:{::{{::::iti::titi:•i':.i}i:.i:.iiiii:titi^i:titi<C•iii:0:'n?i".iiii:.ii}iiiiii}i:.i'ri}i:.iiiiiiii::^iiii:h:::"�i:��::.i'ii::ii:::i::i::::i'i::i::i::ii::i:4:iv{ijjj:n:i:'':ij}}::::::v<:i::::::ii::::!:::iiiii::i:<::i::ii:Si;::;":i::ii'ii'ti::ii:{Y.• ••.. ;�::...i.......:...i......:.:..v :.y..::...:.......:...:.v... .:.i:.::.........,.:..,......'.''.�.....�.:'.:'v�::..::..< `� i:::::': : :i.�::i:i �:.":::: ::::�.` " :::::i. : ::....i:::%'.''. :::::: ::.:. . 12 :�:��r�e���d;;;:� : r��t���;::;>a : .��t�n�:t:i��:«:>a�r�:�3abl:�:::;:::��::>;: .ar�:::>::;a�`;:::<��� :«<>::»:«:;::.�;;;;<.;:.;;:;;; :�?'� ,;. ,,.,.: ..:.��., ,�,.. ,,,,.,. .,,.,,, .. _ ,, 13 �!���;��:�::� 14 . 15 ri�:. The City's 1996 Budget is hereby amended to read as shown on Exhibit A attached hereto. Yeas Nays Absent Requested by Department of: Blakey Bostrom Guerin ✓ BY� Harris ✓ Megard � Form Approved by City Attorney Rettman � gy; Thune 1/ A rpved by Bud et Director for �( O p S�Z�mission to M�yor Adopted by Council: Date qq� By� Ado t'on Certified by Council �gPCouncily Mayor for Submission Sec�e�ary By: By: Approved by Mayor: Date �1 ' '�� By� �`' a H:\USERS\BUDGET\WPFILES\SMMDVAG.RES �� {� -���5� Exhibit A Financina Current Amended Budget Change Budget Science Museum-City and State Contribution C96-OT200 Scattered Site Tax Increment Finance District 2,400,000 2,400,000 Community Development Block Grant(CDBG)Contingencies 500,000 500,000 Urban Devebpmerrt Action Grant 600,000 600,000 1996 Capital Improvement Bonds 3,000,000 3,000,000 City of SaiM Paul Sales Tax proceeds-Culharal Account 300,000 300,000 Riverfront Tax Increment Finance District 100,000 100,000 Civic Center Resenres 500,000 500,000 S�te of Minnesota-Preliminary Design Grant 1,000,000 1,000,000 Resolution Trust Corporation(RTC)assets 4,000,000 4,000,000 Science Museum of Minnesota Repayment of Loan(9052) 2,500,000 2,500,000 Loan proceeds 3,549,500 3,549,500 ReimbursementsJTemporary Income Ramsey County(morgue demolition) 100,000 100,000 Science Museum of Minnesota(EAW, Eagle St.Acq.) 220,500 220,500 Parking income 25,000 25,000 14,900,000 3,895,000 18,795,000 S n in Science Museum-City and State Contribution C96-OT200 State of Minnesota-Preliminary Design Grant 1,000,000 1,000,000 Land Assembly AcquisitioNDemolition/Relocation 3,000,000 3,580,000 6,580,000 Environmental 375,000 375,000 Contingency 125,000 (125,000) 0 Real Estate/Legal Casts/Misc. 265,000 265,000 Le�al Work on Memorandum/Development reement 175,000 175,000 ••:�.w:•:�•::•::.:•:.::•::•>:•::•::.::••:::•::•;:•;:::•::•::•:;:•:;;:•::•>•:.. :•'•'F.�•�.4�. � •n�.;r v:tiL?i"�;::;:ti••� J.•.'};4:�:} �..\��j:i.��+.i�{•:.; ::.i:•i:•:?$�::: :::::::. ,Y, �+'��t •"tS�,.`�e's,t,`a, t:x:' �'r,.fi<%?::2:r�'i,i::' �.' �cr<vi 9.?)S::rxfVi .»s..,,x,,�A,,,;.;.>����?%.,•::••:.:.�'+.�:�,;:.',`^:40�;,.�>�r,???t'�aY,,;?:o?rl:`:,�.,',�„�,.t�?�^'" � .f::..... :�•'•'`�.. �'>•'•?'•..•:r..;.;...::••::+:.:::::•..,.,.; k.:�•�::.• •�• � , ...,.. ;., ..;`.: �,� f :•.y�;•:.••r•.;:• t �y+� ;�.;.;y�•:y •:.4 �i�.{y'��::•ti•:•::•:•::��i+;}i:•'��:y 'ri+ $ ••,.�•.•::;.,+;;;fi;:; :�:;4i::•'r.`::h:�:ti�S:,','•::,:::�>'�'':i�r::h. ...\•. . {,... +,:;M•'•:';.;.:• ': •::;,�.r,;'•.}., :.�w`.' .{.�;�:k• r.,.,#,:c.,..... :��`�r."•.a'�::;�:;a'•. •.,•'.'+,',•+. . �#k',+:•..:•.\st,f//,•,/.,•r:;::••:: M1~�}`YJJ :.l•.��.�, v,rr J '�•.}, / :•� ? .•\•{v...•�.v:} �';.A.;.��}.�.'�.;k,.�.,+.•:•iY,•,'r,:;:;.;\v,.,:•ii�•':::Fi,`l,.,?CS:tir�\ ��... .}:.•i.v.r:.�F,•{y•rq�{••: �...y `i•�``ni,'�•„'.�k} • '•i;•.v�;}• •{j:,\�., r {.,.?nZ•:::•R•}:•:;}.'i,'�:Y•f �y� •'r,i'$•�;.5�.:�:},•^;•;+�:�:{.i:?.t �.v.;�}•�.�.•::,•K,i:'i:::•:��:�:��y '�: ;: 'A '.f. 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JW�V�JV SMM loan($2.5 million total) Transfer-Civic Center Turn Around(0565) 1,500,000 1,500,000 Transfer-SMM tum around other c�sts(0789) 242,000 242,000 NSP:feeder line relxation(0784) 758,000 758,000 14.900,000 3,895,000 18,795,000 " Excludes$3,100,000 of 1997 CIB Bonds not yet appropriated by the Mayor and City Council. If approved, City contribution for public improvements will total$10,500,000. Mayofs&Mpa1011fee-H:YJSERSIBUDGET723U2ESOlUTI\RES SMD2.WK� - a�- 13�4� City Council� � � A �REEN SHEET N_ 3 6 4 81 8 E �p��ApTNAE►dT DIRE�N��� �CYTY COUNCIL - _ INITIALJDATE Dave Thune, 266-8620 �N �CITYATfORNEY �CITYCIERK IL NDA ( �� �BUDQET DIRECTOR �FIN.8 Mf�T.SERVICEB DIR. November 6, 1996 � ❑"AAYO"�°p"�'�T""� ❑ TOTAL#E OF SIGNMTU�iE PACiES (CUP ALL LOCATIONS FOR$It�NATURE7 �pprov ng and Authorizing execution of a Development Agreement with the Science Museum of Minnesota, a construction grant agreement with =the State of Minnesota, and other necessary documents in connection with the Science Museum Pro�ect. :�pprow(A)a Ry�ot(R) PERSONAL BERVICE CONTRACTS MU8T ANlWER TNE FOLL01NIN0 CUEdT10N�: _PIANNMdO COMMI8SION _GNN.SERVICE,COMM1681QN 1. Has lhis personRirm ever worked unds►a t�ontt4Ct for thi3�OneM4 _C�Ct�NI1TTEE _,,, YES NO 2� H8a Mie peroonlflrm ever bes�a dly smployes,? —�� — YES NO _aeTRICT COURT _ 3. 8oes this psroon/firm posasoe a skiN not normelly Poaseasd bY anY W►re�dtY e�lo�ro�? 8tiPPOA'T8 WFIICFI OOINrCII OBJECfIVE4 YES NO Ezpliin all ya�n�w�n on�pNnt��hNt and attacb W�wn shpt a�tm�7x�o�oe�EM,�ssu�,o�oAnx�rrr Mrno.wnn.ar►�.wn�e.w�,r�: /1DYANTA(iE8 IF APPRONED: OISADVANTAOES If APPAOVED: � Counc� ��s��rch Ca��!'r OCT 31 1� � 0�18ADVANTAOE8IF t�T IIPPROVED: - TOTAL AMOUNT OF TRANBACTION = COST/REVENUE BUDQETEp(CIRCLE ONE) YES NO FUNDIHd sOtlRCE ACTIVITY NUM9ER FlNANCIAL INFORMATION:(EXPLAIN) NOTE: COMPLETE DIRECTIONS ARE IN�UJDED IN'1'Flf`{i�1EEN SHEET UOSTRl1CTIONAL MANUAL AVAIUIBLE IN TWE PURCHASING OFFICE(PHON�N0.2@lF42�F),:;� ROUTING OiiDER: ; Below aro c�orrect routinys for the five most iroquent typss oi dooumsnts: CON?RACTS(asaumes authorfzsd budget sxists) COUNCFL RESOLUTIOW(Amend Budpstf/Acapt.OnMs) . t. �tsids Agsncy 1. bepartrnent Di�ector . . , . ,, � 2. Departmsnt Director 2. Budget Director 3. City Attomey 3. City Atbmey 4. Mayor(tor contracts over s15,000) 4. MayoNAssistant 5. Human Rights(for coMracts rnrer 550,000) 5. City CouncN 8. FManc�and Management Servk�s Director . ¢. Chiei AccouM�t,Finanoe�d Mananertl�nt Serv�oas 7. Findnt�AcxountMy . ADMINISTRATIVE ORDERS(Budget Revision) COUNCIt RESOLUTION(MI o1Mrs,�d Ordin�op) t. Activity Manager 1: Departmsnt Oksctor . 2. Depertmenl Acoountant 2. Ciy Attomey 3. Department Director 3. Mayor Aseiatant 4. Budget Dirsctor 4. Cily Coundi 5. Ciry CMrk 6. Chie(Accountant, Finance and Management Services ADMINISTRATWE ORDERS(efl others) 1. Department�IreClor 2. City Attorney 3. Finance and Manapement Services Di�ectw 4. City Clerlc TOTAL NUMBER OF SI(3NATURE PAC�ES Indicate the#o(paqes on which sig�aturos are roquired and paperellp o�flay �ech oi th�s�papss. ACTION REQUESTED Deacribe what the prujecthequest seeks W accomplish in either chronologi- cal order or oMer of tmportance,whichsvsr is moM app►opriats for the issue.Do not write complete senten�s.Bspin each item in your Ifst with a verb. RECOMMENDATIONS ' Completa H the iasue in queation haa been presented before any body,public or private. SUPPORTS WHICH COUNCIL OBJECTIYE? Indlcate which Council objectiva(s1 your project/request supports by Usting the key woM(a)(HOUSIN(i,RECREATION,NEIt3HBORHOODS,ECONOMIC DEVEIAPMENT, BUDC3ET,SEWER SEPARATION).(SEE COMPLETE LIST IN INSTRUCTIONAI.MANUAL.) PERSONAL SERVICE CONTRACTS: This in(ormation vWq be used to detennine the ciiy's tiability(or workers c�mpsnaallon claims,tax�s and prOpsr o1vN s�rvl�s hi►ing rulae. INITIATIN(3 PROBLEM,ISSUE,OPPOFiTUNITY Expiaf�the situation or conditlona thet croated a need for your project or request. ADVANTAGES IF APPROVEO Indicate whether this is simply an annual budqst procedure roquired by Iaw/ charter or whether there�e speci(ic ways in whk�the Ciy of Saint Paul end its citizens wiN bensNt from thia proJect/action. DISADVANTA(3ES IF APPROVED What negative effects or major changes W existing or past procesaes might this proJect/requeat produce it it is pasaed(e.g.,hafflc delaya,noise, tax incroasea or assessmer,ts)?To wnom7 Whsn4 r•or now long� DISADVANTA(3ES IF NOT APPROVED What will be the negatNre conaequences it the promised adion is not , epproved?Inab�iy to dsliver service4 Contlnued high traHic,noise, accident rate?Losa of revenue7 FtNANCUI 1MPACT Although you must taibr the informadon you provide here to the issue you aro,addresaing,in gsneral you must ar�awer two questiona:How"much is it � � going to cost?Who is going to pay4 � � - � 3� � 1 Understanding" ) which set forth in a preliminary manner, among 2 other things, the obligations of SMM to construct the Project and 3 the contributions to be made by the City to the Project, which 4 Memorandum of Understanding, by its terms, was to be superseded 5 by a final development agreement . 6 7 6 . In connection with the Project forms of the foll wing 8 documents have been submitted to the City Council : 9 10 (a) a Development Agreement by and between he City 11 and SMM (the "Development Agreement" ) which set forth the 12 rights and obligations of the City and SMM wit respect to 13 the Project; 14 15 (b) a Construction Grant Agreement by and between the 16 City and the State (the "Construction Gra Agreement" ) 17 setting forth the terms and conditions u er which the State 18 has made a $30, 000, 000 grant to the Cit for the Museum (the 19 "State Grant" ) ; 20 21 (c) a Disbursement Agreement C nstruction Grant by and 22 between the City and the State (the "State Disbursing 23 Agreement" ) setting forth the ter and conditions under 24 which the State Grant will be di ursed to pay for the 25 design and construction costs o the Museum; 26 27 (d) a Disbursing Agreem nt by and between the City and 28 SMM (the "Disbursing Agreeme t" ) setting forth the terms and 29 conditions under which the tate Grant and the City 30 Contribution (as defined ' the Development Agreement) will 31 be disbursed to SMM to p costs of the design and 32 construction of the Mus m and the Upper Landing 33 Improvements; 34 35 (e) a Ramp Le e by and between the City and SMM (the 36 "Ramp Lease" ) purs nt to which the City agrees to lease to 37 SMM the land on w ich the Ramp will be constructed; 38 39 (f) a Mu um Lease by and between the City and SMM 40 (the "Museum ease") pursuant to which the City agrees to 41 lease to SMM the land on which the Museum will be 42 constructe , and 43 44 (g) a Lease by and between the City and SMM (the "West 45 Buildin Lease" ) pursuant to which the City agrees to lease 46 to SMM the existing building currently occupied by SMM. 47 48 The bove documents, together with all exhibits thereto, are 49 collect ' ely referred to as the Project Documents . 50 i� 334512.3 �1 � -13�1 � 1 RESOLVED: 2 3 4 1 . The City Council hereby establishes the Govern ntal 5 Program and approves and authorizes the Mayor, Clerk, D' ector, 6 Department of Planning and Economic Development and D' ector, 7 Department of Finance and Management Services (the " uthorized 8 Officers" ) to execute the Project Documents in sub antially the 9 forms submitted. The approval hereby given to th Project 10 Documents includes approval of such additional tails therein as 11 may be necessary and appropriate and such modi cations thereof, 12 deletions therefrom and additions thereto as ay be necessary and 13 appropriate and approved by the City Attorne , the appropriate 14 staff person or by the officers authorized erein to execute or 15 accept, as the case may be, Project Docum ts prior to their 16 execution; and said officers or staff ine ers are hereby 17 authorized to approve said changes on b alf of the City. The 18 execution of any instrument by the app opriate officer or 19 officers of the City herein authorize shall be conclusive 20 evidence of the approval of such doc ment in accordance with the 21 terms hereof . , 22 ' 23 2 . The authority to appro�e future amendments to Project 24 Documents is hereby delegated t�6 the Director, Department of 25 Planning and Economic Develop nt, subject to the following 26 conditions : (a) such amendm ts do not materially adversely 27 affect the interests of the ity, and (b) such amendments are 28 acceptable in form and sub ance to the appropriate staff person, 29 the City Attorney and any other counsel retained by the City to 30 review such amendments . Any amendments shall be executed by the 31 Authorized Officers de�ribed in paragraph 1 hereof . 32 33 3 . The autho�y to negotiate terms for a loan of 34 approximately $3 , 50 , 000 to assist in the acquisition of lands 35 for the SMM Projec . The Budget Director and Director of 36 Planning and Eco mic Development will by [November 30, 1996] make 37 a recommendatio to the City Council on the structure of the loan 38 and will inves gate the feasibility of the following three 39 options : (1) forgivable loan from the foundation community or 40 other non-pr fit organizations; (2) a City annual appropriation 41 lease;or 3) a City tax exempt revenue note which is secured by a 42 mortgage . Sources for the repayment of the loan may include but 43 are not 1 'mited to new District Heating and Cooling franchise 44 fees att ibutable to the SMM Project, temporary parking income 45 genera d from the acquisition for the Project on the Ryan Block, 46 futur sales proceeds from that property, and an annual Cultural 47 Star appropriation of $100, 000 for the term of the loan. 48 49 4 . The acquisition of the real estate described in Exhibit 50 -1 of the Development Agreement is hereby approved, and staff is 334512.3 q C� - i3�� 1 hereby directed to proceed to negotiate the acquisition. The 2 City hereby authorizes the use of eminent domain and its lega 3 counsel is directed to undertake such eminent domain procee ' ng 4 if and to the extent necessary to aid in the acquisition o such 5 land and, if necessary, requests the Housing and Redevel ment 6 Authority to undertake such eminent domain proceeding. 7 8 5 . The City' s 1996 Budget is hereby amended t read as shown on Exhibit A attached hereto. Yeas Nays Absent Requested Department of: Blakey � Bostrom Guerin Harris �' For �Approved by City Attorney Megard .- �`"" Rettman ���-- ,�_ G� —' Thune ��'�-�G' `l Approved by Budget Director for Submission to Mayor ,� ►� 6�� Adopted by Council: ate Adoption Certifie by Council Secretary Approved by Mayor for Submission to Council Approve by Mayor: Date B,��i q� - I�� � Exhibit A Financins� Current A ended Budget Change Bud et Science Museum-City and State Contribution C96-OT200 Scattered Site Tax Increment Finance District 2,400,000 2,400,000 Community Development Block Grant(CDBG)Contingencies 500,000 500,000 Urban Development Action Grant 600,000 600,000 1996 Capital Improvement Bonds 3,000,000 3,000,000 City of Saint Paul Sales Tax proceeds-Cuftural Account 300,000 300,000 Riverfront Tax Increment Finance District 100,000 100,000 Civic Center Resenres 500,000 500,000 State of Minnesota-Preliminary Design Grant 1,000,00 1,000,000 Resolution Trust Corporation(RTC)assets 4,000,0 0 4,000,000 Science Museum of Minnesota Repayment of Loan(9052) 2,5 0,000 2,500,000 Loan proceeds 3,549,500 3,549,500 Reimbursements/Temporary Income Ramsey County(morgue demolition) 100,000 100,000 Science Museum of Minnesota(EAW, Eagle St.Acq.) 220,500 220,500 Parking income � 25,000 25,000 :' � 14,900,000 3,895,000 18,795,000 Saendin� Science Museum-City and State Contribution C96-OT200 State of Minnesota-Preliminary Design GranY 1,000,000 1,000,000 Land Assembly Acquisition/Demolition/Relocation :`� 3,000,000 3,580,000 6,580,000 Environmental 375,000 375,000 Contingency 1� 125,000 (125,000) 0 Real Estate/Legal Costs/Misc. 265,000 265,000 Legal Work on Memorandum/D elopment Agreement 175,000 175,000 Public Improvements 7,400,000 * 7,400,000 * Conbngency-East Skyway nk 500,000 500,000 SMM loan($2.5 million tot Transfer-Civic Cente Turn Around(0565) 1,500,000 1,500,000 Transfer-SMM tur around other costs(0789) 242,000 242,000 NSP:feeder line elocation(0784) 758,000 758,000 � 14,900,000 3,895,000 18,795,000 r�: i " Excludes$3,100,000 of 1997 CIB Bonds not yet appropriated by mayor and council. If approved, City contribution for public improvements will total$10,500,000. Mayofs Budget 0t5ce-H:UISERS�BUDGET�123V2ESOLUTIU2ES_SMDA.WK4 , `�C� _ I3� � kt �!�..� � A������ �� T�r.�..�� � � Eagle Parkway (for the record) , �� l `� � � b This is just a house keeping item on Eagle Parkway. Our attorney and staff should make sure that of the $10.5 million City contribution for public improvements that the trustee account seperately for $1.5 million for Eagle Parkway which the City has agreed to build as part of the Science Museum Project. Any adjustment to the appropiate documents or budget should be made. �- ,. . _.. �L.�� ,���cj ��)�,�`�� � :�' I �� —��� c� November 6, 1996 `� � � ,�te �`�� AMENDMENT ����� � � 1 Whereas, the City of Saint Paul strongly supports providing construction work opportunities for Saint Paul residents through its affirmative action policy Resolved, tate affirmative action goals will be required in the Development Agreement and SMM will lect a contractor with a demonstrated positive record on affirmative action and the contracto will endeavor to make increased apprentice opportunities available as part of this Projec o t e extent permitted by law November 6, 1996 G� (P , i�� �° � �� �� 1 AMENDMENT �- � Whereas, the City of Saint Paul strongly supports providing construction work opportunities for Saint Paul residents through its affirmative action policy Resolved State affirmative action goals will be required in the Development Agreement and SMM wi select a contractor with a demonstrated positive reaord on affirmative action and the contra tor will endeavor to make increased apprentice opportunities available as part of this Project��o the extent permitted y a ° �- � � � � ��� MEMORANDUM ; DATE: November 6, 1996 �� �,,;� �� r � h��"`� TO: Bobbi FROM: Ann SUBJECT: Science Museum Development Agreement We are being asked today to approve a development agreement to provide approximately $19 million to a non-profit organization. I say approximately purposefully because we really don't know what we are committing to. Ramsey County has not acted on donating land to the city Ramsey County has not agreed to provide $100,000 for the demolition of the morgue building. We don't know where, or how, we are going to finance over 3.5 million in the costs we know today. And the land acquisition cost are still staff guestimates • Before tnis body acts: We need a review of the lease agreements by our real estate people for compliance with city leasing practices and policy. , � We need to have a decision by Ramsey County �%� � We need to have a cap on the financial burden to city taxpayers. �� ,S A �� ����� Propose an amendment to page 3 of the resolution � � �2�- � �q� l Notwithstanding any of the agreements, the Council states that the ma�cimum city ' contribution for all the city contributions including land acquisition and the borrowing s�costs on the loan proceeds listed on e�chibit A, shall not exceed $18.5 million. The Council also resolves that the following City and HRA funds shall not be used to , fund the City's contributions: the Neighborhood Sales Tax, including interest, and the �,�,.,�' ' HRA fund. • A-116smm.mem � � DEPARTMENT OF PLANNING ���/� ,1� &ECONOMIC DEVELOPMENT Pamela Wheelock,Director CITY OF SAINT PAUL 25 West Fourth Street Telephone:612-266-6700 Norm Coleman, Mayor Saint Paul,MN SS102 Facsimile: 612-228-3261 � October 28, 1996 To: Council President Dave Thune Councilmember Jerry Blakey Councilmember Michael Harris Councilmember Roberta Megard Councilmember Janice Rettman Councilmember Dan Bostrom � Councilmember Dino Guerin From: Bob Geurs, PED Subject: Science Museum Project Enclosed please find the following documents for your consideration. The Documents include: ' j� �/ � � �c�,� ,�� �+��'�— 1. Development Agreement and Exhibits / � 2. State Construction Grant Agreement �l�G /(�/ t, , , ,' 3. Ramp Lease � '�t' �� � , � - 4. Museum Lease ���� � � ' 5. City Disbursing Agreement s_ 6. State Disbursing Agreement . �,,, � �• ,,. 7. °West" Building Lease �' '' � � 8. Memorandum of Understanding The City Council Resolution will be delivered separately and is cunently with the Budget Director Joe Reid. � J ' ` 9� -/3�� CITY COUNCIL REVIEW: On Wednesday October 30, 1996 at City Council, City and SMM staff will be prepared to cover: Project Overview Funding Raising Update Project Schedule Project Design Public Benefits City Council questions The following Wednesday November 6, 1996 at City Council discussion will focus on the Resolution, Development and Related Agreements and the Budget. On Monday Teresa Sterns, Bruce Englebrecht and I met at the aides briefing to cover the Project Design and Schedule. Next Monday November 4, we will meet again with Council aides to go over question on the attached documents, Resolution and Budget. CITY LEGAL ADVICE/CITY STAFF: Documents which have been negotiated over the last two years have been drafterl by Briggs and Morgan by Mary Dyrseth (223-6625) and Mike McEllistrem (223-6425) and reviewed by Assistant City Attorney Terry Garvey (224-5686). City staff includes PED Director Pam Wheelock, Bob Geurs, and Bob Simon. If you have additional questions please don't hesitate to call me at 266-6653. I will be on vacation on Thursday and Friday and Bob Simon will be available at 266-6593 to handle any questions. DOCUMENT OVERVIEW: BACKGROUND: z. The first seven documents have been drafted consistent with the Memorandum of Understanding (8) which the Council adopted on August 25, 1995. These documents taken together represent the City's contractual obligation with the State of Minnesota who is giving the City $31 million dollar towards the design and construction of a museum and the respect responsibilities of the City and SMM during construction and after the opening of the new SMM by March 1, 2000. The City will own the land and building. SMM will be a tenant of the City on a long term lease to run the museum. SMM will be responsible solely for maintaining and operating the lease space. Annual the City will met with the Museum to review budget and operations plans of the SMM and report to the State as a requirement of the grant. � � 9� -�3 �� 1. Development Agreement and Exhibits - The overview document between the City and State that spell out the respective responsibilities. The $250,000 annual repayment obligation is cover in (7) - "West" Building lease below. Desi�n is covered with graphics in Exhibit G. 2. State Construction Grant Agreement - State/City document that discuss conditions of the $30 million dollar construction grant to the City on behalf of the SMM. These monies will be used only for the construction of the building and its related design. 3. Ramp Lease - City/SMM Agreement that allow SMM to construct a 700 to 825 car ramp below Kellogg Plaza. Financing for this will be arranged for by SMM and is not part of the State imposed restriction under their grant. 4. Museum Lease - City/SMM Agreement that establish the respective responsibilities of the City as Landlord and SMM as tenant. The term of the lease will be 20 years with 3 ten year renewals. There will be a nominal rent of$100 a year. 5. City Disbursing_A�reement - City/SMM Agreement which makes sure that during construction the State, City and SMM's money is sufficient to complete the project., SMM plan to ask HRA to issue approximately $40 million of revenue conduit bonds this winter so construction can begin in March 1997. 6. State Disbursin�Agreement - State/City Agreement which spells out conditions the City must satisfy on behalf of the SMM museum to get the $30 million for the construction and $1 million for the predesign work. Where appropriate the City has � passed this obligation on to the SMM as part of the Museum Lease. 7. "West" Building, Lease - City/SMM Agreement that amends and existing lease on the Science Center which is the "west" building of the existing campus. The principal purpose of this document is get $250,000 a year from SMM after the opening of the museum for 20 years as contemplated in the Memorandum of Understanding. The document also contemplates the possibility of a sale and that this is a non-recourse obligation of the museum. ,._ 8. Memorandum of Understanding - City/SMM Agreement from last year that spell out the respective business points. / � � � � i ,���� 'r! p �� \�� .� ��i�`' � , ,. , e �� �• i ''.. � • I 1M pppp •� � �• ` i '� � � � � ,i � � �,.pp0� •��\ � �1r,�•� • � ,� � . � � �a a� a�.i� �, �\ �� n� • �7• �� -- -_ ,o. . , � p q`�� �\ •.�+ • ,. 1�. I � ������' \\ �• •� •� • � -- �T�T -� '��� �� � �'� �����S � ��� �T� 1 �'� � ;�, \ • � � � �. - u�� � , \ �� • •• lii� ��, � � .. � � ..�i%/I��� .; � 1 � � \�\ �� '��� a�� �r . ;����., �,o I��� ►-i����1 � � . �•• ��pr . ' � tV�a.�� � � �. ♦ � ��� t, • �� ��11�� f; . � �j����\ \; ' ��, �� �i> !� ��-, ��� �� , � • ,�� �!. . �'r —�_ u. ` � r . '�. ��`. � • ru� \ • � �,S•� • • � � � ��:� `P w • Ii c�� . . A . � `v � �� �.� � . � D \ �i, ��� ;.�r;:;: O ��• � !`; •. us� ,q�,,. 0 \\ '• Q , ;'�� 1 � � O'_ .�� �• �� L `1 : �s' ,�''�!1".-=' •� : 4 ,r±• � •. �� I: '� a..p � • � ��r — 0 �I �4 { r0 � �� .O �� . �' � ; '�d•;;: �* \ : •��� ,�� ���� � � � �i�� � � \ �� � � � ° • ,i� • r � O \ � � �'� y�, � a'�,���� - , o o • ► ' • h '�;�,��,n ",� e , ^ �� •„ , �3. o �'o � . �� o� n'i ,p,p� ;: � � e.,r„� , i► -�O �1 r, .....\ i, '�' "'0�a .-.,.A� �` . '� � . °�� .a. ,=:A4pa 1 � � ' � : o;o���o�a .�.. 'i�Q O afiJ���.� \�� �� = � :�'�4v41 �;O'-� ��'D��"de es �` \\ �� � .,� �P�r �1���P� 0�1!�i� 49 A�O�'� � �� . � � � , laa�� � �.�rf v'D .aa,�V' 40��� �� �� � , : _4r�4,�, ���QO ��o� ' o�o'a��, �,�f���� = � � . �o�+a► �� r d.��o ve�'��4 r ���. �' \�� �r e>O v � � 6'd � �\rJ .— + o� / • . `�� � • o'° O � o ' �•• � \\�� i e6��0i�:pa,:. oO l,'„�� pa� " � • �� � �• ��A.a�:o � � y,fit � .•\\ �� • � ,,d , a 'i►� 4's �'• \ ,,� • �: •�������o� �� :�r���� �d.��� �� ��� y ' ��•:� f�:,.� � � �•��� "�e � ,�?�I � �.•�r��i �'��i � : •��' �� � ••� ���:e. '�r � .�� � ���~ �� ���� � . • ! ��� �` . , •, � � � � �� � � �, , � �,� • � t t �{�-�3��e EXHIBIT B-2 DESCRIPTION OF THE SMM IMPROVEMENTS 1 . A museum of not less than 300, 000 square feet, containing an omni theater, an auditorium and exhibit space (the "Museum") . : 2 . A parking ramp of not less than 700 spaces but not more than 850 spaces (the "Parking Ramp'�) . 3 . On site infrastructure improvements, including lower access connection to District Energy, Ramsey West and the County Jail . 4 . The Grand Stairway more particularly described �in Exhibit G (the "Grand Stairway" ) . 5 . The Pedestrian Path System more particularly described in Exhibit G (the "Pedestrian Path System") . 6 . The Plaza off Kellogg Boulevard more particularly described in Exhibit G (the "Kellogg Plaza") . 7 . Celebration Plaza more particularly described in Exhibit G ( "Celebration Plaza") . 8 . The Plaza Connection described in Section 4 .19 . 9 . The Civic Center Turnaround and the NSP feeder lines . 331479.7 B-2 . � � q�- ���� EXHIBIT B-3 � SCIENCE MUSEUM OF MINNESOTA ESTIMATE OF COSTS AND SOURCES OF FUNDS .:. >�roject �Costs; < ;:. ;.. .::>: _ : .. ,:: .. :.. . . _. A. Soft Costs-Construction A1 Design & Project Management $8,550,000 9.24% A2 Exhibits $8,000,000 8.65% A3 FF&E $3,000,000 .24% Subtotal Soft Costs $19,550,000 21.14% B. Hard Costs 61&B2 On-Site/Infrastructure $10,500,000 11.35% B3 Buiiding $44,000,000 47.57% B4 IMAX Theatre (equipment) $4,300,000 , 4.65% B5 Parking Structure $7,000,000 7.57% 66 Construction Contingency $3,150,000 3.41% Subtotal Hard Costs $68,950,000 74.54% C. Soft Costs-Other Expenses . C1 Moving $1,000,000 1.08% C2 Ext. Relations=(Dev.&Comm.) $1,500,000 1.62% C3 Financing Costs $1,500,000 1.62% Subtotal Other Costs $4,000,000 4.32% TOTAL SCIENCE MUSEUM COSTS $92,500,000 100.00% _ ��roject �our�es vf F�n�s• : : _ _ . _ ...... D. Private Sources D1 Capital Campaign $41,500,000 44.86% D2 Parking Ramp Financing $6,000,000 6.49% D3 Science Museum Funds $1,300,000 1.41% Subtotal private $48,800,000 52.76% E. State of Minnesota $31,200,000 33.73% F. Federal Project Grants $2,000,000 2.16% G. City of Saint Paul $10,500,000 11.35% TOTAL SCIENCE MUSEUM SOURCES $92,500,000 100.00% B-3 ` ' aC�- �3�� EXHIBIT C-1 DESCRIPTION OF TI�LAND Parcel 1. Former Ramsey County Morgue Parcel2. West - a, b, c& d Parcel 3. Plastics - a&b Parcel 4. 272 Chestnut House Parcel5. Eagle/Exchange/Kellogg area for right of way for Eagle Parkway Improvments a. Portion of the former Rehab Center land owned by Robert Walsh/Seven Corners Hardware b. WJW Properties Parcel6. Portion of District Energy Property � � :�` �1,-��RT � .� . '_ - __._ -,�.- - ��' Exhibit C2: Acquisition Parcels ' ' ''' ' =� -'-" • � "�-� - � � �' .� ; ::�� ,;. . _ ..`` �.< -� � ' �—�, � � ��.,.�3�� _ . .;.. ��,`� � � . �:. ,, ;. - :, ,` .,. Z ST • ��`•`. ��ri �� +.. �`•� � 3' •i� '_:• � :' � .'. �•.,, Y� . • S � � �� � • ; �,,, o, j�.,: ; — . ,� . w . .,� . .. .. , .. � , �.::�-j =T o --_; . :- g: : ` . • e ` : A :y � t , � , •,•,;•,` '' N ,, Sa ��.� ' 'ti ::- ,, I��LI.� � . �_ � y ,.. ' ` . � , •;� � . (�,� � '�°,; ` . , w �: �L[,� � M-GO�po� t , I �S � �'(')r Q N•�'� r�,v 4✓•�__�= . `\�, • f • .... !�, ' � i - ; ��r'�1^ � • ,�:,�x —'t'-- , -, - �. _ KE��o� ,. 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C; �� �/'� J� '��'Y-'.' tG �.� x'7�d.��:'� `b ,• _ ;u\,�.�� ���� � , , f � ;••�; 1O Indicates parcel number o.�i}i^" 1 ' •'% / �, r j jf j�j�,'t-i %�y�� ;�� -;J;%,�� . ,;�� �' , � �'�� . ��� < ,-�./ �•�,, � , A i�. ; . ,- �/i,;�,i . i. . ,' � �' ,'�, � � ,�;;i� �� .�' ,. :,,� �• _, � �.r ., i �, � ��- G :��v .f`' � � 4 � � .�� �, `',, r_'� 'T: �` j. . j �/'. / .� �. � �%,.�'/ `:, ' - � �. . j . i -, �'� ��� r , ✓ '`��%�j�%�� \ l��~ ' /� / , . . �� ���i �� � • �. � �, � � � ��� � � .� `� �r . �, � ��,�. � ��� : , � - , l..' �' C. � i � q�,- �3�4 EXHIBIT D-1 DESCRIPTION OF THE UPPER LANDING IMPROVEMENTS The following public improvements located within the Development Area: 1 . Eagle Parkway i 2 . The Grand Stairway 3 . The Pedestrian Path System including public accessibility through the Lease Premises 4 . The Plaza Off Kellogg Boulevard (Science City Plaza) 5 . The Civic Center Turnaround and NSP feeder lines, all as described in the Z�rn Around Agreement 6 . 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O a:- .,�, .� . �� � ��: 0 i��� o , 4 �..�:�j �' •\� ,,� , � ; ;,.�f�9�`00 � 6:�,���� ��;! •��� / • . • ' .4�� ��e�or . �•� `i • � •`• � � .:� ��urs � �• �•�• / • ,• Q �� m�u���� ► •�r� ���" � � • �j . . �i ����■����u■��u��u��u�m .•• ��•�� .i /��� � : ����..•��n��iiiiii■�■■■■�m��■��� �'/ •�'���.:.,:.• '�• /,/�� � •��p 0���� .� � � �� �r.o�r� ��� � � � � , � , . ,� � * , � •�. � .�i � �� ��� � i�°' ► 9 � - • � � �l�- ���� Exhibit E-2 Eagle Parkway Improvements Description Street, pedestrian and bike system connecting Kellogg and Chestnut along Eagle that are further identified in the alignment and cross-sections on Exhibit E-1 and E-3 f Streets: width - typically - 48 feet Curbs: parkway-style curb Sidewalk: concrete surface � width: east - 12 ft - combined with bike path west - 5 ft Bike path: Concrete Surface Width - 12 ft (east side only) - combined with sidewalk path ' Lights: Standard City Lantern Style spacing - 80' - 120' Trees: one row - both sides, 2 1/2 diameter �. spacing - 40' Trash receptacles: east side only, 8 spaced appropriately Benches: east side only, 8 spaced appropriately Information signs east side only, 4 spaced appropriately Buffer to Irvine Park: 1 row of trees around the triangular shaped buffer at Ryan Avenue and Chestnut including a concrete plaza area with a 5' sidewalk K�\SH.qRED1RBG\EXH•£.ShiM ` ' - - -- . EXHIBIT E-3 q�' i3�� , CELEBRATION PLAZA TYPICAL CROSS SECTIO�' �' EAGLE PARKWAY w a oQw � N �1NmF=- � Q � p °wQa c� �' a z o � U � m � � U } • Q 3 Y � � Q a J Q U � a � U F- _ • C� � � • J � _ w U ' � r �- Q N 3 Z Y � � W Q �. a z Q J � W Y � � Q W J � 3 �" a w � U Z O U ' � ��- 13� � EI��TT F SCIENCE MUSEUM OF MINNESOTA MII,ESTONE SCHEDULE Scheduled A. Pre-Construction Activities Completion Date 1. Development Agreement 11/06/96 2. Construction Documents 12/16/96 3. GMP Contract Award 03/27/96 B. Deliverv of Land 1. Parcel 1 County Morgue O1/15/97 2. Parcel2 West Publishing O1/15/97 3. Parcel3 Plastics 08/15/98 4. Parcel4 272 Chestnut House 11/15/97 5. Parcel 5 Eagle/Exchange/Kellog,g ROW O1/15/97 6. Parcel6 District Energy Prop. Portion 03/15/97 C. Site Construction 1. NSP Feeder Location 03/15/97 2. Civic Center Truck Egress 03/15/97 3. General Sitework (Utility Relocation & Mass Excavation) 06/23/97 4. Complete Sitework (Roadways, Landscaping) 10/30/99 � D Ramp & Plaza Construction 1. Foundations 10/O1/97 2. Structure 06/OS/98 3. Plaza Paving& Landscaping 11/27/98 E Buildin� Construction 1. Foundations 09/26/97 2. Structure 04/03/98 3. Building Envelope 12/02/98 4. Interior Finishes 07/16/99 5. Exhibit Construction 12/30/99 F. City Roadwav Construction 1. Shepard Road Railcrossings 04/15/99 2. Chestnut& Eagle Parkway 04/IS/99 3. Shepard Road Completion 12/O1/99 G. SMM GRAND OPENING 12/31/99 � � q(�- 13��e EXHIBIT G DESIGN GUIDELINES FOR THE NEW SCIENCE MUSEUM OF 11�TNFSOTA Introduction: The general purpose of these guidelines is to provide a design framework for site development and building design for the new Science Museum of Minnesota. These guidelines are intended to describe the overall character, form and image of this project while allowing design latitudes for specific material selections, colors, and precisely defined shapes. Overall Design Concepts: The following major design concepts for the new museum reinforce the museum's emphasis on visitor experience as the primary organizing mechanism for the new facility: •Easy to Use: The museum's design will be user friendly, pedestrian friendly and city friendly. Visitor amenities and public circulation will enhance the visitor's experience. •Full of Surprises: The museum will contain a variety of uses and different types of space. The museum will continue to be a dynamic, entertaining destination that will be full of discovery. , •Connects You to Site: The new museum will have a downtown presence as well as a site that opens towards the river;it will also provide a transition to a neighborhood scale at Eagle Parkway/Irvine Park. Just as the views and movement through the building will connect the city to the river, the museum itself will fundamentally express this connection through its form and public spaces. General: The new museum will contain approximately 300,000 gross square feet of new construction. Five major exhibit halls as well as a new Omnitheater are currently planned for the new facility. Visitor amenities, such as retail shops, a restaurant, ticket office and restrooms will be contained in an area known as Science City. An education center is planned to provide classroom space and serve as the destination point for school groups. Research laboratories and collecdons storage areas are planned to support the major exhibit areas and ongoing scientific research. The site itself will become a destination as science parks, outdoor exhibits, public walkways that lead to river access. A 700-825 car parking structure and an improved traffic/access network are major site components of the plan. The design of the interior spaces must allow for a public, handicapped accessible, transition through the building to one or more exits that allow the visitor into a public area that will lead naturally toward the river. � , ��- �3�1� SITE DEVELOPMENTS The new museum will be built on a site in downtown Saint Paul that embraces the Mississippi River on one side and Kellogg Boulevard on the other. As the lead project in the redevelopment of the Upper Landing site, the museum will provide a welcoming pathway from Rice Park to the river's edge as well as help Saint Paul realize its dream of restoring this valuable riverfront property and returning it to public use. A major focus of the site will be the long term transformadon of existing surface parking areas into science parks that will provide participatory learning experiences centered around the ecology, biology, history, culture, geology and physics of the local Mississippi River watershed, as well as a Celebration Plaza which will be a gathering area for the public near the west end of the site. In addition, the site will contain an urban plaza on Kellogg, a Grand stairs for the public to descend to pathway system that leads toward the river. Key Site Design Strategy: Take advantage of the attributes of the site. The verticality of the site, while challenging architecturally, provides opportunities to open up spaces for magnificent views of the interior as well as the outdoors. The building will feature dramatic views of the Mississippi River and will employ natural daylight. The museum will connect programmatically as well as visually to the site by developing outdoor programs and an environmental focus to their exhibits through the development of Science Gardens as well as a landscaped Celebration Plaza. Views: The new museum will enhance the visual connection from Kellogg Boulevard to the river and river valley by providing framed views from street level along key public right-of-ways, such as Washington Street, and by maintaining strategic second story views from the Civic Center and the Minnesota Club. Priority urban view corridors for enhancement include: •Up river - west of the Civic Center parking ramp •Across the river valley - at the end of Washington Stre�t •Down river - between the new Science Museum and District Energy The building roof will be designed as an architectural element that will be viewed from various perspectives. Connections: The new museum will improve the experience for pedestrians along Kellogg Boulevard during all seasons. Canopies and arcades will be considered as part of the design solution at Kellogg Plaza. A new at-grade, signalized, pedestrian crossing at Washington Street and Kellogg Boulevard will improve connections from downtown to the new museum. The new museum will also provide an outdoor public walkway from Kellogg Boulevard through the site to Chestnut which leads to the river. A future phase may also provide an elevated pedestrian crossing from the new museum ' � �Ce.— i 3�t4 across the railroad tracks and Shepard Road to the public space near the rivers edge. It is important to design a direct connection between the Science Museum and downtown that does not block views of the river nor creates a canyon effect along Kellogg Blvd. The new museum's landscape elements at Kellogg Plaza such as street furniture, historic lighting, planting, and other public improvements will be consistent with the public improvements currently existing at Kellogg Mall. Urban Spaces: The new museum will create a sense of place, enclosure and arrival through the use of street furniture, entrances, plant material, and paving. Durable materials with long-lasting finishes compatible with nearby existing projects will be utilized. Vegetation will be indigenous and hardy with more formal treatment within the urban plaza areas. Park Areas: Celebration Plaza will provide the transitional setting from the urban, downtown development to the undeveloped and natural areas of the river valley. Land forms, vegetation, paving, lighting and other site elements will respond to this transitional setting through predominantly informal as well as some limited formal arrangements. Large group gathering areas will contain a mix of landscape and plant material. BUILDING DEVELOPMENT.• ' At its core, the new museum will contain the following different types of uses: �The museum Visitor Place, the museum's best-known business, where visitors experience the Omnitheater, exhibit halls, and other programs. •Education, including services to teachers, outreach programs to schools throughout Minnesota and the Upper Midwest, and classes for adults and families; •Production and Distribution, which develops Omnitheater films and related products distributed worldwide and major traveling exhibitions distributed throughout North America; •Research and Collections, which conducts original research and preserves objects and artifacts in trust for all Minnesotans. ` � �c�— �3—�c� The following key design strategies provide the underlying foundation for the conceptual approach for the new building: Srraregy One: Design a building that works for people. •Convenient access to and from parking to the main lobby •Services such as ticketing, stores and restaurant conveniently clustered •Sufficient space for public circulation; convenient access for wheel chairs and strollers •Room for adults to rest and relax, spaces for children to run and move •Architecture that is welcoming and warm, not insdtutional Particular detail is being paid to designing the spaces for the core visitor services-- lobby, ticketing, restaurant, restrooms, elevators and parking--for anticipated future growth. Due to the configuration of the site, these areas are more difficult to renovate or move, so they must be designed properly the first time. Strategy 71+�0: Design exhibit halls that provide the greatest flexibility possible. Museum staff know from documenting the history of the museum's current two buildings that exhibit space changes dramatically in character and use as the museum's r�eeds change. Large contiguous spaces that can be expanded or shrunk as . needed are the ideal. Services such as electrical, heating and cooling, and telecommunications wiring will be easy to move and upgrade. The building will be designed to accommodate future expansion such as additional exhibit halls, classrooms or offices. Srrategy Three: Design a building using the latest in sustainable building materials and technology. The museum has formed the energy group, an advisory group of experts in the areas of energy research and analysis, evolving energy technologies, construction management, building systems and architecture. With their guidance, the new museum will feature an integrated design that is economical, functional and protective of the environment. The building's "green" design will be featured as an exhibit in its own right. Form & Massing: The new museum will be compatible in form and massing with the sunounding context and nearby buildings, including the new Civic Center, Minnesota Club and the Public Library. Key elements that define the museum's character include: < < ��— i 3�c� Building scale: Fundamentally, the museum's focus on a positive visitor experience and bridging downtown with the Mississippi River Valley, should translate into a highly pedestrian- friendly scale. Cazeful attention to the building's human scale through such elements as detailing, joint spacing and modular materials is needed. Massing / Orientation: The museum will utilize the site's verticality and bluff condition by cascading down from Kellogg Boulevard to the river valley below. The interior movement of visitors will also follow the cascading effect down the bluff by allowing multiple changes in floor elevations. Conceptually, the building is being organized with a "no back door" approach. This means that this museum will have several primary facades and/or entryways: - On the north at Kellogg Blvd., the museum will relate to the more formal historic character of Rice Park. - On the west, it will transition to Eagle Parkway and the neighborhood. - On the south, it will relate to the river. - On the east, the Science Museum will provide an architectural transition between District Energy and the museum itself. Service areas and loading docks will be designed with minimum visual / functional impact on the building's primary facades. The building will respond to excellent on-site solar orientation through the use of large glazed areas and clerestory lighting. There will be a strong, well-defined site edge along public and internal streets, through building setback, landscaping, fencing and/or other elements. At south edge of the site an eight foot high fence will be located parallel to existing railroad tracks. Treatment of the fence will be consistent with the surrounding park like treatment of the site. i ht: The new museum will extend above Kellogg Blvd. in order to: frame views from Kellogg, provide a strong visual icon marking the entry to the museum for visitors at Kellogg Blvd., and maintain a strong urban edge at the street level. Specifically, the museum's height along Kellogg Boulevard will be compadble in height with adjacent buildings, such as the Minnesota Club, Public Library, and expanded Civic Center. Due to the cascading massing effect, the building will step up from the river valley. � . a�-�3-�4 Exterior Finishes The museum will be composed of durable finishes similar to other typical Saint Paul projects. In general, a warm color palette of earth-tone masonry such as brick, stone, and pre-cast concrete will form the majority of exterior finishes. Conceptually, a "lighter", more transparent feel for the portion of the building that extends above Kellogg Boulevard is desired in order to allow for river views. This would suggest larger azeas of glazing of non-reflective glass, particularly in areas related to pedestrian pathways. This is important to provide a sense of connection between the building's interior / exterior and to put "eyes on the street". The building will minimize blank walls on primary facades or facing pedestrian areas. Site walls will contain materials, detailing and scale consistent with those of the new museum design. Li�h�inQ/Landscape The museum will furnish a street landscape and lighting plan consistent with the design guidelines principles outlined in this Exhibit and Exhibit E-2. Grand Stairs The Grand Stairs which is located at the eastern edge of the site will approximately 20 to 22 feet in width and provide a pivotal transition for the visitor to descend from the urban bluff along Kellogg into the river valley below. Architectural treatment shall be consistent with announcing this as a public space, with ample lighting and the design should avoid unnecessary 'switch backs" and over-hangs for safety and maintenance reasons. Kellog€ P� Treatment and choice of materials should invite the visitor to and through the museum space and be consistent with other public gathering spaces along Kellogg Bvld. such as Kellogg Park. Pedestrian Pathways thro�,h the site Special care must be taken to promote the publicness and accessible of the pedestrian path that bisects the site from the Grand Stairs on the east to the western end near Chestnut and Shepard Road. Grades and treatments must allow for ease of visitor movement and the paths must handicapped accessible. Fa�le Parkwa� Along the western edge of the site, the design elements of the SMM designed Celebration Plaza will be integrated with the City Eagle Parkway design. Eagle Parkway is further described in Exhibit E-1 and E-2. K:\SHARED\RBG�SMMDESIG � � e ` �.�� b ''i� � i �- � � ii � � � �---= � � -� � "!�r. 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If 1� ■::{ ��yyl11u,1 i�.� _ I� 1� ■��, 1 ��•1� /p pp� nunsnu�nnmmmu:�l' aumnnu�uuu�uoun�ll Y���t�V�����ii����/UN����� ����� I������I�����I���t�1�����1 I 111 �iiiiiiiiiiiai uiiiiuiue 111' ' !111 , I 111,,1111 �IIl1 i11111....—.. ... .........� IIIIIItIII 1111111111 i;:'; � IIIIIIIIU ��'�., 'i�� n �Illllllli.� n _�' I � uunu-. - ■ I�' • nxm�uantumnmi "� muumnmmumui �I�! nmuuamwunmu 1 ���� um�o��nx�m�unn I!4 ���� ii����Y�����iY��/�t1;I I — 1,� � nim�minnMxu ■li. . - ���aum�u�wmual��� � uwm�nurun ■IJi 1- ` �� u ll� r�P� ll{i a= �,� i I lfl�l i ii �� .'mmruw�= i� a� i,I�I:�ai�dY.i i ii, !■ , ����'��,' i�. i�.l: u j� � �. � � ii J� Ilun+li� ���i� I � I!i !! .�� II.�I,I� I ' f'' I�� I ��������� � - 1�� _� ,llll������ IIIIIIIIII ', I�,l � u� -I iln�� � �IIIIIIIII� _ j!��i���:'� iii nii���I� _ �� �';��' ��.,I uwuni = ��r,:l �;: �I � �inuuur _: �;.r• �.�.�.�� �- �jl uuwu� _ , °: ���ji � �nnuun - ...� III�-; 1111111111i= j �iiu��iii°�''�:�� ----� �m�uu�;I'�' I �.�nuuu,,;..�,�,'�I �m�ou � unmu � mnm■ n -= i uum�■ n i�uum�'_� f ,r.-: ,,,�d!�J , � . a�-13�� EXHIBIT �-} CITY OF SAiNT PAUL FIRST SOURCE EMPLOYMENT PARTICIPATION AGREEMENT Participating Employer. Address: Zip: Phone: � Author¢ed ContaG Person: Estimated Number of New Jobs: I. GENERAL A The City desires to increase employment opportunities for unemployed, economically disadvantaged City residents paRicipating in the comprehensive employment and training services provided through the Saint Paul Employment and Training Center. B. DevelopedEmployer agrees to use the City as its primary source for recruitrnent, training, referral, and placement of new or repiacement employees in accordance with the terms of this Agreement C. The Ciry's delegate agenry witl be the Workforce Development Division (WDD)in the Department of Planning and Economic Development, Saint Paul, Minnesota, or any other appropriate City agency as may be designated by the Mayor. D. This Agreement becomes effective upon the date hereof and shall continue for five years from the time EmployerlDeveloper occupies any developed facil'dies unless othervrise specfied as provided herein or until the job creation goals as described in the Estimated Hiring Schedule (Attachment A)are fu�lled. E. This Agreement shall be applicable to all Developer/Emptoyer new or replacement entry level positions for which unemployed, economically disadvantaged persons might reasonably be avai(able. This Agreement shall not apply to those jobs covered by existing collective bargaining agreements or other DevelopedEmployer Agreements, where the terms of this Agreement would cause DevelopedEmployer to breach the provisions of such agreements. F. The Developer/Employer shall incorporate this agreement in each lease and sale agreement for space, if any, developed with public assistance, provided by or through the City of Saint Paul in a manner in which the space so leased or sold and the lessee or purchaser thereof shall bear a proportional share of the job placement to be accomplished under this agreement. II. RECRUITMENT A The em�loyment positions covered by this Agreement include ony DevelopedEmployer job openings in the classfications, titles and qualfications contained in Attachment A B. The DevelopedEmployer witl notify WDD of its need for new employees in covered positions as soon as the Developed Employer decides to hire such employees. Specific job descriptions and/or qual�cations for each position w11 be on file with WDD prior to any notfication of job openings. C. The DevelopeNEmployer will provide WDD with its best estimate of the number and timing of potential job openings through use of Attachment A and other wmmunication as necessary. D. Afthough the DevelopeNEmployer is not obligated to hire employees from WDD referrals, they must consider such individuals for hire in good faith. WDD staff will follow up with the Developer/Employer to better understand why employees are or are not hired. E. Job openings which are filled by internal processes from the Developer/Employer existing work force are not covered by this Agreement. C1TY OF SAII�T PAC�L Torm Colcman, �tayor DE��RTME.�.'T OF PL.nA^�'TNG� EL0�0!�S1C DE1'F10Pr�.7 W'or\fora De.•elopment Di�ision �r� , , , . R��- �3�� iil, REFERRAL A WDD wiil refer applicants according to the quaifications requested by DeveloperlEmptoyer. B. If training for specific jobs has been agreed upon between the City and DevelopedEmployer in a separate agreement under Sedion V,hereof, trainee appiicants will be considered oniy when the training is successfully completed by applicant C. DevelopedEmployer reserves the right to make atl decisions on hiring new or additional employees, i�ciuding the quai'fications of applicants, but agrees to consider hiring for covered positions from among those persons referred by WDD who meet the job descriptions and qual�cations. � D. WDD staff witt coordinate fts referrai and placement efforts with the Urban League and other agencies housed at the Saint Paul � Employment and Training Center. RefeRals from the Center wiil be handled by one person designated as the First Source Job Devefoper. iV. PLACEMENT A. When OevelopeNEmployer not�es 1NDD staff of job openings in covered positions, WDD will notify the Employer within forty- eight{48) hours of the number of appticants WDD will refer. B. Ii WDD cannot refer the total number of qualified persons requested, WDD staff will notify the DevelopedEmployer who may fill the remaining positions by any means. C. WDD will monitor a)job retention of employees place under this agreement, and b) referrals not hired by the Developer/Employer and the reason(s) given. D. After the DevelopedEmployer has hired an app(icant referred by WDD,the City will not be responsible for the employee's conduct and the Developer/Emptoyer releases the City,from any liability for the actions of such employees. V. TRAINING A. WDD and the DevetopedEmployer may agree in a separate agreement to develop training programs including: ♦ On-The-Job Training programs (O.I� • Customized Training Programs developed jointly between the City, EmployedDeveloper, and area educational institutions. B. The DevelopedEmployer agrees that it witl not discontinue on-the-job training presenty provided to its employees by reason of the provision of UVDD of on-the job training under this or a separate agreement VI. CONTROLLING LAWS AND AGREEMENTS A If this Agreement conflicts with or requires Developer/Employer to breach an existing collective bargaining agreement or any other existing agreements, said agreements shall prevail. B. Developer/Employer will provide WDD staff with written evidence that Developer/Employer has provided the representative of any collective bargaining unit wfth a copy of this Agreement and has requested comments irom said unR DevetopedEmployer will provide such comments to WDD. • � . . �C�— i 3�c� PARTICIPATING EMPLOYER: gy; Date: Tdie: f gy. Date: Tdle: CITY OF SAINT PAUL gy; Date: Director of Planning and Economic Development gy; Date: Director of Finance and Management Services APPROVED AS TO FORM: gy; Date: Assis;ant City Attorney ' � � �(�� �3�� Attachment A ESTIMATED HIRING SCHEDULE City of Saint Paui Department of Planning and Economic Development Workforce Development Division � Empioyer Date Job Titles Immediate Future Training Necessary New Hires New Hires Prior to Employment FIRSTSRCA � � � � �- �3�� CITY OF SAINT PAU� PLANNING AND ECONOMIC DEVELOPMENT WORKFORCE DEVELOPMENT DIVISION JOB IMPACT STATEMENT Projed Name Brief Description of Project . � Financial Package ProjeGed Approval Date Developer Phone Project Manager Phone Jobs to be Retained Jobs to be Created Narrative Please 1) attach to any proposed development application for city financial support and 2) send copy to Wayne Young, First Source Coordinator, 215 East Ninth Street, Saint Paul, MN 55101. Additional information may be requested as needed. CI'Il'OF S.4L�-I'PAUL Aorm Coleman, �fa�•or DEPwF7?'�'�7 OF PLti,:�'L'�G k ECO`:0�11C DE�'ELOPT�T N'orl:fo�ce Dc��dopmu�t Division ��� , � . + �,(�- l 3�� Job# FIRST SOURCE JOB ORDER FORM 1. Employer 2. Date Client Response Date (SPETC) 3. Job Trtte 4. Number of Openings � 5. Job Location 6. StaRing Date 7. Start Salary 5 per 8. Benefrts 9. Days to be worked 10. Hours of Work 11. Will union membership be requiredl Yes No UnioM.ocal 12. Duties of position (may attach description) 13. Necessary Qualfications: Skiti Level (include licenses and/or cert�cates necessary) Education/Expe rie nce: Specialized Training: � Miscellaneous: 14. Are your employees in this position expected to provide any necessary toois in the jobs(s)? Yes No (It yes, please attach an itemized I"�st(with prices) of tools required for each position.) 15. Could a person with limited Engiish speaking skills periorm this job7Yes No 16. Is pubGc transportation easiiy accessbie? Yes No 17. Dces the job require shift work or other than trad'Aional hours? Yes � No (If yes, please ciarify) Return to: Department of Planning and Economic Development Workforce Development Division 215 East Ninth Street Saint Paul, MN 55101 Attention: Wayne Young, First Source Coordinator ' 228-3262122&3277 (Fax) CITY OF SAI�T PAC�L Norm Coleman, �fayor DEPAA7T�7 OF PLt`�'T�'L`�G d ECONOMIC DE\'ELOP!.�!.T �1'okforu Dcvelopmrni Di.•isio� �� DEPARTMENT OF HUMAN RIGHTS , ' � ' Mazk Robertson,Acting Director Q�— � �j�(p CITY OF SAINT PAUL 900 City Hall Telephone: 612-266-8966 Norm Coleman, Mayor 1 S W. Kellogg Boulevard Facsimile: 612-266-8962 Saint Paul, MN 55102-1681 TDD: 612-266-8977 � AFFIItMATIVE ACTION/EQUAL EMPLOYMENT OPPORTUNITY REQUIItEMENTS CONSTRUCTION CONTRACTS Section 183.04 of the Saint Paul Legislative Code (Human Rights Ordinance) and the Rules Goveming Affirmative Requirements in Employment set forth the Affirmative Action Requirements which are to be incorporated into and made a part of'every contract entered into by the City of Saint Paul. These documents are available at the Department of Human Rights, 900 City Hall, Saint Paul, Minnesota 55102-1681, (612) 266-8966. The Saint Paul Department of Human Rights is responsible for monitoring the Contract Compliance Program to determine whether or not persons or firms doing business with the Ciry are complying with Section 183.04 of the Human Rights Ordinance and the Rules. As stated in Section 183.04, the contractor will not discriminate against any employee or applicant for employment because of race, creed, religion, sex, sexual or affectional orientation, color, national origin, ancestry, familial status, age, disability, marital status or status with regard to public assistance. EMPLOYERS WHO CONTRACT WITH THE CITY OF SAINT PAUL MUST DO MORE THAN MERELY AVOID�ISCRINIINATORY PRACTICES. THEY MUST ADOPT AND IlVIPLEMENT AFFIItMATIVE ACTION PROGRAMS TO EMPLOY MINORITY, FEMALE AND DISABLED PERSONS. The contractor must also include the Affirmative Action provisions of the Human Rights Ordinance and the Rules in every subcontract, purchase order, or agreement with any subcontractor(including material suppliers and subcontractors who ' enter into a contract with another subcontractor or material supplier), with stipulations that the subcontractor is bound by the terms thereof. A CONTRACTOR'S AFFIRMATIVE ACTION IN THE EMPLOYMENT OF MINORITY, FEMALE AND DISABLED PERSONS WILL BE TAKEN INTO CONSIDERATION IN THE AWARDING OF A CONTRACT. It is the r,ontractor's responsibility to become familiar and comply with the City's requirements and to ensure that their. subcontractors comply with them. Technical assistance will be provided by the Human Rights Department staff upon request. THE EMPLOYMENT UTILIZATION GOALS FOR CONSTRUCTION PROJECTS ARE 15.4% MINORITY UNSKILLED LABORERS, 14.3% MINORITY SKILLED AND 9.4% FEMALE SKILLED/UNSKILLED. CONTRACTORS MUST DEMONSTRATE THEIR GOOD FAITH EFFORTS TO MEET OR EXCEED THE GOALS. The following documentation must be submitted to the Department of Human Rights for approval efor a contract will be awarded: AFFIRMATIVE ACTION PROGRAM Every contractor or subcontractor whose total accumulated contract or subcontract awards from the City of Saint Paul over the preceding twelve months has exceeded$50,000 shall develop and implement an Affirmative Action Program in writing substantially similar to the Department's Model Affirmative Action Program for Construction Contractors, which shall include hiring goals for the employment of minorities and females in the contractor's An Affirmative Action,Equal Opportunity Employer qC�- �3�c� Affirmative Action Requirements Page 2 permanent and construction work force. Once the Affirmative Action Program is approved by the Department of Human Rights the contractor will be notified of their compliance status. Compliance with Section 183.04 is valid for two(2)yeazs. At the end of the two-year period the AAP must be reviewed and updated. The Model Affirmative Action Program is available from the Department of Human Rights. A Model Modified Affirmative Action Program is available for contractors with twenty (20) or fewer employees. Contact the Department of Human Rights for more information. Contractors and subcontractors will also be required to submit the following documentation and other information and reports as requested by the Human Rights Department: �DENTIFICATION OF PRIME CONTRACTORS AND SUBCONTRACTORS-FORM CPF-3 (TO BE SUBMITTED BEFORE CONTRACT IS AWARDED OR PRIOR TO START OF CONSTRUCTION AND UPDATED AS NEW SUBCONTRACTORS ARE ADDED) The Identification of Prime Contractors and Subcontractors includes Material Suppliers and second or third Tier Subcontractors and Material Suppliers. The names, addresses, telephone numbers, start date, completion date and nature of work must be listed for the prime contractor, as well as all subcontractors (including all major material suppliers). PAYROLL REPORTS-FEDERAL FORM WH-347(TO BE SUBMITTED WEEKLY FOR THE DURATION OF THE PROJECT� The contractor and all subcontractors actually performing work on a construction project must submit weekly payroll records ("Modified" Federal Form WH-347) and must include�of the information requested on this form. Computerized Payroll Reports may be substituted if they include all of the information on the "Modified" Form WH-347. Payroll records are to be submitted seven(7)days following the end of each payroll period. WEEKLY REPORT OF SUBCONTRACTORS ON JOB SITE These reports should be completed by the project foreman and submitted along with the weekly payroll records. The daily construction log(s) for the week may be submitted in lieu of these reports. EOUAL EMPLOYMENT OPPORT[TNITY POSTERS must be posted at the construction site and also in the offices of the contractor and all subcontractors. PROJECT UTILIZATION CONFERENCE(PUC) After the contract has been awarded, but before construction begins, the Developer and/or Prime Contractor and all Subcontractors that have been selected to work on the project will be required to meet(Project Utilization Conference [PUC] and/or Pre-Construction Conference)with the Human Rights Specialist that has been assigned to monitor the project. This conference will be held to discuss the utilization goals for minority and female skilled and unskilled workers, how the goals will be met, and any problems that may affect the project's ability to achieve the goals. At this meeting the Prime Contractor and each Subcontractor will complete and submit to the Human Rights Specialist the Project Employment Utilization form(PEU) indicating the Total Number of Project Work Hours they anticipate it will take to complete their portion of the work on the construction project, the Total Female Work Hours, Total Skilled Work Hours, Total Minority Skilled Work Hours, Total Unskilled Work Hours, and the Total Minority Unskilled Work Hours. The contractor and subcontractors must indicate on the bottom of the PEU form how they will meet the goals--through their internal work force or by hiring additional employees. If they are unable to meet the goals they must indicate the reason of the bottom of the PEU form. These forms must be submitted to this office as near to the start of the project as possible for as many subcontractors as you have hired. They must also be submitted as you hire additional subcontractors during the project. An Aftirmative Action,Equal Opportunity Empioyer . � . � q(�-�3�� Affirmativc Action Requirements Page 3 The Human Rights Specialist will use this information to calculate the number of minority and female skilled and unskilled work hours the project must have to meet the respective utilization goals. As a result of this conference, a "Letter of Understanding" will be written that will detail the plan and steps the contractor(s)will take to meet the project's minority and female utilization goals. The Developer and/or Prime Contractor has the contractual responsibiliry to ensure that the project achieves the utilization goals. However, each Subcontractor ihat the Prime Contractor hires to work on the project must assist the Prime Contractor to meet the project's goals. Consequently, each Subcontractor is also required to achieve or make every good faith effort to achieve the respective utilization goals in proportion to the number of construction hours they anticipate it will take to complete their portion of the construction. Once the project has begun, the Human Rights Department staff will conduct periodic on-site inspections at the project site in order to verify the employment of minority and female employees. The Human Rights Department staff will monitor the contractor's and subcontractors' affirmative action efforts and results. On-Site Compliance Reviews will be conducted on the work force of Contractors, their Subcontractors and Material Suppliers that enter into contractual agreements with the City of Saint Paul. The purpose of the review is to determine the contractors' compliance with the rules, regulations and orders of Section 183.04 of the Human Rights Ordinance. On-site reviews include reviewing the implementation of the contractor's Affirmative Action Program, personnel policies and procedures. Contractors and subcontractors may be required to provide additional documentation in order to determine whether or not they aze making measurable improvements in the hiring of minority, female and disabled persons, including, but not limited to: 1. Good Faith Efforts Questionnaire 2. Applicant Flow Data 3. Employee Tumover Data 4. Documentation Supporting Dissemination and Implementation of EEO/AA Policies. . 5. Documentation Supporting Recruitment Efforts. Failure to comply with any of the requirements set forth above is sufficient grounds for disciplinary or remedial actions provided for under Article IV of the Rules; namely: 1. Termination of the contract; 2. Suspension of the contract until corrective steps are taken; 3. Continuation of the contract subject to the imposition of conditions to conect the noncompliance; 4. Declazation that the contractor shall be ineligible to bid on future contracts either permanently or for a stated time; or 5. A combination of the above. It is imperative that Vendors who are being considered for contracts of$50,000 or more contact the Human Rights Department's Compliance Division to obtain copies of the requirements and documents in order to expedite the Affirmative Action reviewing process. If you have any questions, please contact Bonnie Jellinek, Sharon Taylor, Linda St. Ores, Caroljean Coventree, Emily Tuck or Rich Nymoen at 266-8966. 11/97 An Affirmative Action,Equal Opportunity Employer . . �(�— �3�c� GOOD FAITH EFFORTS CRITERIA 1. Ensure and maintain a working environment free of harassment, intimidation, and coercion at all sites, and in all facilities at which the Contractor's employees are assigned to work. The Contractor shall specifically ensure that all foremen, superintendents, and other on-site supervisory personnel are aware of and carry out the Contractor's obligation to maintain such a working environment, with specific attention to minority or female individuals working at such sites or in such facilities. 2. Establish and maintain a current list of minority and female recruitment sources, provide written notification to minority and female recruitment sources and to community organizations when the Contractor or its unions have employment opportunities available, and maintain all records of the telephone and written communications to the resources and organizations' responses. When seeking to fill specific openings contractors will give agencies a reasonable amount of time to locate and refer applicants, preferably one month prior to the closing date for receipt of applications. Application and application filing procedures will be as simple as is consistent with business requirements. 3. Maintain a current file of the names, addresses and telephone numbers of each minority and female off-the-street applicant and minority and female referrals from a union, a recruitment source or community organization and of what action was taken with respect to each such individual. If such individual was sent to the union hiring hall for referral and was not referred back to the Contractor by the union or, if referred, not employed by the Contractor, this shall be documented in the file with the reason therefore, along with whatever additional actions the Contractor may have taken. 4. Provide immediate written notification to the Human Rights Department when the union or unions with which the Contractor has a collective bargaining agreement has not referred to the Contractor a minority person or woman sent by the Contractor, or when the Contractor has other information that the union's referral process has impeded the Contractor's efforts to meet its obligations. 5. Develop on-the job training opportunities and/or participate in training programs for the area which expressly includes minorities and women, including upgrading programs and apprenticeship and trainee programs relevant to the Contractor's employment needs, especially those programs funded or approved by the U. S. Department of Labor and/or Minnesota Department of Labor. The Contractor shall provide notice of these programs to the sources compiled under No. 2 above. 6. Disseminate the Contractor's EEO/AA policy statement by providing notice of the policy to unions and training programs and requesting their cooperation in assisting the Contractor in meeting its EEO/AA obligations; by including it in any policy manual and collective bargaining agreement; by publicizing it in the company newspaper, annual report, etc.; by specific review of the policy with all management personnel and with all minority and female employees at least once a year; and by posting the company EEO/AA policy statement on bulletin boards accessible to all employees at each location where construction work is performed. . � Q(�- � 3�c� Page 2 7. Review, at least annually, the company's EEO/AA policy statement and affirmative action obligations with all employees having any responsibility for hiring, assignment, layoff, termination or other employment decisions. Specific review of these items must also be made with onsite supervisory personnel such as superintendents, general foremen, etc., prior to the initiation of construction work at any job site. A written record shall be made and maintained identifying the time and place of these meetings, persons attending, subject matter discussed, and disposition of the subject matter. 8. Disseminate the Contractor's EEO/AA policy externally by including it in any advertising in the news media, specifically including minority and female news media. Provide written notification to and discuss the Contractor's EEO/AA policy with other Contractors and Subcontractors with whom the Contractor does or anticipates doing business. 9. Direct its recruitment efforts, both oral and written, to minority, female and community organizations, to schools with minority and female students and to minority and female recruitment and training organizations serving the Contractor's recruitment area and employment needs. Not later than one month prior to the date for the acceptance of applications for apprenticeship or other training by any recruitment source, the Contractor shall send written notification to organizations such as the above, describing the openings, screening procedures, and tests to be used in the selection process. 10. Encourage present minority and female employees to recruit other minority persons and women and, where reasonable, provide after school, summer and vacation employment to minority and female youth both on the site and in other areas of a Contractor's work force. 11. Conduct, at least annually, an inventory and evaluation of all minority and female personnel for . promotional opportunities and encourage these employees to seek or to prepare for, through appropriate training, etc., such opportunities. 12. Ensure that seniority practices,job classifications, work assignments and other personnel practices, do not have a discriminatory effect. Continually monitor all personnel and employment related activities to ensure that the EEO/AA policy and the Contractor's AA. : . obligations are being carried out. 13. Ensure that all facilities and company activities are nonsegregated, except that separate or single-user toilet and necessary changing facilities shall be provided to assure privacy between the sexes. 14. Document and maintain a record of all solicitations of offers for subcontracts from minority and female construction contractors and suppliers, including circulation of solicitations to minority and female contractor associations and other business associations. 15. Conduct a review, at least annually, of all supervisors' adherence to and performance under the Contractor's EEO/AA policy and aff'irmative action obligations. ALL EMPLOYMENT PRACTICES REGARDING GOOD FAITH EFFORTS MUST BE COLLECTED AND MAINTAINED IN YOUR EMPLOYMENT FILES FOR AT LEAST TWO (2) YEARS. 6/24/94 � . ��-�3�� � � CITY OF SAINT PAUL DEPARTMENT OF HUMAN RIGHTS PROJECT EMPLOYMENT UTII.IZATION(PEin FOR CITY FUNDED CITY PROJECTS PROJECT DESCRIPTION CONTRACTOR NAME PRIME SUB ADDRESS TELEPHONE TYPE OF WORK TO BE PERFORMED CONTRACT AMOUNT EST START DATE EST COMPLETION DATE EMPLOYMENT GOALS (City Funded Projects): Female Skilled/iJnskilled - 9.4% of Total Project Work Hours Minority Skilled - 14.3% of Skilled Work Hours Minority Unskilled Laborers - 15.4% of Unskilled Work Hours Please complete the section below and include your company's anticipated construction work hours on the project: TOTAL PROJECT WORK HOURS TOTAL FEMALE WORK HOURS qo TOTAL SKILLED WORK HOURS TOTAL D�IINORITY SKILLED WORK HOURS % TOTAL UNSKILLED LABORER WORK HOURS , TOTAL UNSI�LLED MINORITY LABORER WORK HOURS qo TOTAL NUMBER OF EMPLOYEES ON PROJECT INSTRUCTIONS: Total Skilled Work Hours + Total Unskilled Work Hours = Total Project Work Hours Female Work Hours = by Total Project Work Hours = Percentage of Female Hours Minority Skilled Work Hours = by Total Skilled Work Hours = Percentage of Minority Skilled Hours Minority Unskilled Work Hours = by Total Unskilled Work Hours = Percentage of Minority Unskilled Hours Indicate if company will use current employees and/or hire additional workers to meet the utilization goals for this project. If you are unable to meet the goals, indicate the reason: NAME(PLEASE PRINT) SIGNATURE TITLE DATE PEUFORM.97 - 11/96 �(�— i��c� � � CITY OF SAINT PAUL DEPARTMENT OF HUMAN RIGHTS PROJECT EMPLOYMENT UTILIZATION(PEin FOR CITY FUNDED CITY PROJECTS PROJECT DESCRIPTION_ Saint Paul Office Buiiding CONTRACTOR NAME_ ABC Construction Comnany PRIME SUB X ADDRESS 1000 Cedar Lane. Saint Paul. MN 55102 TELEPHONE 266-8966 TYPE OF WORK TO BE PERFORMED_ Roofin� CONTRACT AMOUNT $236.000 EST START DATE April 13. 1997 EST COMPLETION DATE July 6. 1997 EMPLOYMENT GOALS (City Funded Projects): Female Skilled/Unskilled - 9.4% of Total Project Work Hours . Minority Skilled - 14.3% of Skilled Work Hours . Minority Unskilled Laborers - 15.4% of Unskilled Work Hour Please complete the section below and include your company's a 'cipa d onstructio w k rs on the project: TOTAL PROJECT WORK HOURS 2 TOTAL FEMALE WORK HOURS 1 2 9.64 % TOTAL SKLLED WORK HOURS TOTAL 1�IINORITY SHILLED ORK HOUR 21 • 14.44 % TOTAL UNSKILLED LABORER OURS 496 TOTAL UNS ORITY HOURS 96 19.35 % TOTAL NUMB YE ON PROJECT 12 INSTRUCTIONS: Total Skilled Work Ho + To nskilled Work Hours = Total Project Work Hours Female Work Hours = b T roject Work Hours = Percentage of Female Hours Minoriry Skilled Work Hou = by Total Skilied Work Hours = Percentage of Minoriry Skilled Hours Minoriry Unskilled Work Hours = by Total Unskilled Work Hours = Percentage of Minority Unskilled Hours Indicate if company will use current employees and/or hire additional workers to meet the utilization goals for this project. If you are unable to meet the goals, indicate the reason: . Dorian Grey NAME (PLEASE PRINT) SIGNATURE PrQject Manager March 30 1997 TITLE DATE PEUSAM.97 - 11/96 a�- � ��� , F , , � � F D � O � � V Q � .� �3 i A y W � � F •� W b 3 � a o Ao i E a o � 3 a � � � � .� 3 � � � F � G7 � '� A O � A � A D ^ a � U � � V � � p�G � 3 O " 3 o � ; U U °� � d a O � N y � �Yi ,�, O F •,: U � C � � � E' � � � ;� z Z � V � . Q � � "o � O U W a � p: F � � 4�i � z �Y � � o = ; � U ° � D W b ° Z � >' � � o � � z p�„ on o°� c� ° 'o �o` � � �o z 0 «i O � � �C >. C Or � O ^ .-, �O � � � C O � � N N � � d x '°o ,-, a v F o.. e� ;n cv a N Z d � � v, �p .i�i a O .. � ,o v� ,` :. w � oy � � a �.. 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N O N E q�,- � 3�� TARGETED VENDOR DEVELOPA�1�'T PROGRANI REQUIREMENTS The City has a goal to award approximately 25% of its annual purchases of eligible goods and services to vendors currently registered in the Targeted Vendor Development Program. 1fie following methods have been developed to achieve this goal and are used where applicable: •The City will specify a percentage of the project that is to be subcontracted to vendors who have been certified as a Targeted Vendor at least 2 weeks prior to bid opening. THIS PERCENTAGE VARIES FOR EACH PROJECT AIr'D WILL BE CLEARLY STATED ON THE BID FORI�i. -A bid preference not to exceed five percent (5%) may be applied on certain purchases to vendors who have been certified as a Tazgeted Vendor at least 2 weeks prior to bid opening. PROCEDURE � A. If a project carries a Targeted Vendor percentage, contractors must solicit Targeted Vendors to obtain sub-contract pricing to meet the reqpirements,and then list those subcontractors in the space provided on the bid form. Failure to provide this information may be cause for bid rejection. Targeted Vendors are available not only in areas such as materials and labor, but also design, consulting, insurance, security, etc. A directory of certified targeted vendors can be obtained by mailing a $3.00 check payable to the City of Saint Paul to cover mailing costs,to Joint Purchasing Office, Room 280 City HalUCourt House, 15 West Kellogg Blvd., Saint Paul, MN 55102, or is available via the Joint Purchasing's Quest fax on demand system. Contractors who already have a copy should call for updates/deletions before bidding. Contractors who know of vendors that qualify should have them contact the Targeted Vendor Development program at the address shown below. Vendors must be certified at least two (2)wee�:s prior to bid opening, if they are going to be used on that project. B. The apparent low bidder must submit a Genera! Contractor Utilization form (copy follows) indicating the Targeted Vendors that will be used on the project within ten days after a vendor notification letter is mailed. The apparent low bidder is also responsible for submitting Intent to Perjorm forms (copy follows) completed and signed by the Targeted subcontractors certifying that they aze going to perform this work. ELIGIBILITY REQUIREMENTS A. The Targeted Vendor Development Program is open to small and emerging businesses. Eligible businesses are based in Minnesota; have been in continuous operation for at least one year; are not affiliates or subsidiaries of a business dom.i.nate in its field of operation; are not non-stocking wholesalers or retailers;or manufacturer's representatives,brokers,franchises or businesses where the owner is owner or part owner of another similar business; and do not exceed the City's revenue limit for their Standard Industrial Classification (SIC) code. A listing of SIC codes and limits is available on Quest B. Vendors who are certified with the State of Minnesota or City of Minneapolis programs may be eligible for an expedited certification process, provided they meet all other criteria. Certification is not automatic and eligible vendors must contact the Joint Purchasing Office at least two (Z) weeks prior to bid opening to determine certification eligibility. FOR ASSISTAI�'CE OR SPECIFIC II�'FORMATION CONTACT: Targeted Vendor Development Program, Room 2S0 Cin� Ha11�Court House 1� ��'. Kelio�g Bl��d. Saint Paul, I��f?v 5�10? 612-266-8905 -n��:sPz�s,-->?-s> ' ' t saint paul/ramscy county joint purchas'wg officc targeted vendor development program ��� ���� SUBCONTRACTOR INTENT TO PERFORM (to be carspletcd onty by ss+bconaactors who me regis:ccG targcuG vcndon) Project Name Bid Number Departmeat . Project Number General Contractor Tugeted Vendor Name Federal ID # t Business Address Contact Person Phonc__� Describe the work you will perform oa this contrac.t: Date work begins: _�__J Ends• /__, Indicate below subcontractors and/or suppliers you plan to use on this contract. Stacking of contracts is prohibited � Contract Company Name Address/Phone Type of Work/Supplies Amount Offce:use..onty. >;<::�:::�;`<::�:::>::::«<�;�::<'::;`::::: x�:>�::<:::>;�;�;::>::�::>:>::>:::>:::;:. �::�><<>::::�::... .... :.:::�-::�,:;::;<:::>:«>:�>;:. <;�;;<:;><:::>;:>,;<;�:;;::;_.:<:> S (Attach addioonal sheet with subcontroctor and supplier information as necessary) ���������•��-��� �-�- � Dollar amount of your contract S Estimated dollar amount of work to bc completed diredly by Xour company S Any changes in contract amount or subconh-actors must be approved by 1YDP stafL Questions? Call 266-8906. T1u undersigneQ haeby casifies that s/he has�ead the temu of tlu Intuu to Pafornr and is aurhoriud to bind r1u campeny to the eommianau haein ser forrh SignaavS�le ojaurhorced consparry afficiai and dau must be propaty eucuted on this docwnm� The undasig�ud swems rhat the joregoing sraran�nts are auc and eorrecr. Fwsho,t1u undasigned agrces to provide eompleu and acuaau injomsetion regmdirsg acu�al work pafomud on Au projec� tluPaymer.t rluieof,and arry proposed c1,a,rger of r1u foregoing arra„ga,sasts and funl+er, w pamit access dirring nom+al6uri�uss hours w the busintss work sir� record� end filcs wr,�n necas�y to determiru eonfomiance to Targeted VrndorDe+xlopmau Prog�am rcqubrmerus upon requesr of the loint PwCl+asing Ofj"ice. Name of Authorized Officer Phone_J Signature: Title• Date: / / ,;. . : : OFFICE USE OIv'LY '. <; , �I'pamcipaiion S ' «, >. ZVDP ataff dR �e__�_� . , ,;: SS'. P,S `:: H S �uty.A.S , B S GS ES i S — �undm� City. County M'�I: CDBG UDAG ?�P `URAP Other ' DFrs_I—1 ��ry�<<J-1 �D�`--J / `xc�c ,, . / / :::. DO NOT SEPAR.ATE USERS\iti'D`�SL'&1�'PE�T.FR�� � � saint paul/ramsey county joint purchasing office targeted vendor development program �� _ I ��� . ' � ' GENERAL CONTRACTOR UTILIZATION CONIlVIITMEI\T Entered (ro be complered only by gene�a!contractor) Project Name Bid h'umber- Department � Project Manager Total contract amount S Targeted vendor participation required: °/a or S i General Contractor Federal ID Contact Person Phone / Address Targeted vendors may be used on construction, professional services, goods, and/or materials contracts. List below the targeted vendors you intend to use on this contract. Stacking on contracts is strictly prohibited. Contract Comparry Name Address Phone Type of Work Amount O�ce use only $ '; `; Q� v .a $ $ (Attach additional sheet with subcontractor information rf necessary) Total value of contracts with targeted vendors: $ Estimated value of work to be completed directl by general contractor: � Changes in contract amounts or subcontractors must be approved in advance by TVDP stafL Questions? Call 266-8906. ?he undersigned xi!!enter into formal agreemenf with the listed targeled vendor fvm(s)conditiona!upon execution oJa contract with Sarnt Paul or Ramsey Counry. The undersigned ce�tifres thar s/he har read t1u lerms oJrhis commitmen�and is authorized 10 bind!he bidder fo rhe commitment herein set farth. Signvture, title of authorced comparry official and date must be on lhis documenl or tht bid may be deemed non-responsive. The undersigned swears that�he above sfntemexts we irue and correct. The undersigned agrees to provide comple�e cnd accurak injormarion regardrng acfual work performed on 1he project, the payment rhereJor, and a�proposed changes of�he foregoing anangemenu, and ro permil access during norma!busrness hours�o the business work site, records, and files when necessary ro delermine conformance with Ta�geled Vendor Developmenl Program requiremenls upon reques�ojlhe Joint Purchasing Office. Name of Authorized Officer Phone / Signature Title - Date / / ; , FOR OFFICE.L3SE ONLY ; , ': Actual N dollan S % TVDP.aPProval Date ! ' / 5:S F:5 A 5 ;Mnrt}= A:S B:S ' C:S E:S '' I:S ' Funding: Ciry Counri. �viN ' CDBG LTDAG 'TvPP URAP '; �t for subkr�t °a DPTS / 1 Cin�rpt ' / �_ HUD l 1 RC rpt I : DO hOT SEPAI2ATE us�s.nv.c�iT�-F::�+ ,<� . . � � ��- � 3-�� w m 'E o � . m � • U � '' � y j � �o v� N d E o q U rn o N a` 0 a � U Q o N m m c O o o O o 0 o V u d d ,y �E �a p � 'c m � � c °' ,� o a U �, � � m a` c T o � � o N � rn rn rn a vi � o c c c L N _�- - N 'N 'N 'N U � � � x x = 3 b N � V Yj � � N � C � W �d t0 u` b Q 1° � � a Q o�i 7'' n' c c c a � Vu V � �p � p � `� C _ u u �.'r � j 7 � N � Z N •p 7 7 7 = . a y W a U � a ° = a a a b U � � Q Q J � Cro II II II II g y w V a Q � o c i. co m o O tn OD liJ LL, Z = Z � � .p , � O O a .. O � 7 N C � � r. = O � d (� Q 10 E � � o � � � ` 0 U o � c c c ,° � c c � � a �o v E c -o v � � �° c � � c 'o � a o z a � a o � b u � U O � b 7 7 R1 � _ � t � y Q > j j � ? j > � � 0 � , > v > = ao 2 t- � c I U � � o E d �T-i Z a a °' y ^ E N a rn � � v d J47 Q ' � � N C1 [� Q Q � � p F" V � � � �' �c � '_ U y C N C C � Z Z Q � �n a � .�p ' j Z c o .o � W �? Z �, � � �,, cn oo � N G wa%WLLZ o � a O E vi � o � o W � -� � (n � m �a w a, C ax, �'c, � �'o, � ava � Q � a r� � oa � v� = � T c W in CL d n u u r n r G � V� I"' � N �f a tA � N C') v �7 t:i W � � � �. _ O � ' _-_-_-_ . _ .' m �) ... � , ' ' � �'I'Le- �3�1�e LITTLE DAVIS-B.A,CON LABOR. STANDARDS REQUIREMENT All contractors, subcontractors, and loti�•er tier subcontractors shall comply �vith the: • Little Da�•is-Bacon Ordinance, Section 82.07 of the Saint Paul � Administratiti�e Code. The requirements of the Ordinance are as follows: 1) The minimum wa;e rates and frin�e benefits as identified by the Little Davis- � Bacon Prevailin� Wa�e Rate Schedule shall be paid to all on-site employees. 2) All «•orkers shall be paid time-and-one-half for all overtime hours �vorked, meanin� hours worked over 8 in one dav and over 40 in one «�eek. 3) Apprentices may �vork at apprentice wa;es if they are enrolled in a bona fide apprentice prooram and are workin� in compliance with the apprentice to joume}�vorker ratios (Ratio of Apprentice to Journeyworkers on Locally and . Federally Funded Projects). Proof of aoprer_±iceship �vill be required. It is the prime contractor's responsibility to ensure that the followin� are included in all . contracts, subcontracts, lo�ver tier subcontracts, and bid documents pertainin� to this project: L2bor Standards Requirement St2tement; Little Davis-Bacon Prevailin� Wage Rate Schedule; Ratio of Aoprentice to Journeyw•orkers on Locally and Federally Funded Projects; and, Bona Fide Self-EmployedlIndependent Subcontractor Status Demonstration. City staff may make periodic visits to the construction site to inten�ie�v tne �`�orkers. The purpose of the interviews is to verify waQes and �vork classifieations. These intervie�vs will be conducted on company time. A Little Da�•is-Bacon poster (provided b}� City staf� and the �vaoe schedule must be posted at the construction site in a ti•isible location. For assistance or specific information }�ou may contact Ann Copeland, (266-6695) or Sandra HaLStein (266-6690), Grants Management, P.E.D. ; ..... __ .. - �. ,, i:,s ;�: :,:,.:,: __ � � � � �c�- i 3�(� SAMPLE WAGE DECLSION DA7'E: October 18, 1996 STATE: MINNT.SOTA DECISION NUMBER: MN96-7, Mod. 10 COUNTY: RAMSEY B�rilding & Residential Projeds BUII.DING CONSTRUCTION PROJECTS (Does not include Treatment Plants) RESIDENTIAL CONSTRUCTION PROJECTS (Consisting of single family homes and apartments up to and including 4 stories) BASIC HOURLY FRINGE RATES BENEFITS INSULATOR/ASBESTOS WORKERS (Includes application of all insulating materials, protective coverings, coatings & finishings to all types of inechanical systems) $24.13 $8.18 • HAZARDOUS MATERIAL HANDLERS (Includes preparation, wetting, stripping, removal, scrappinQ, vacuuming, bagging & disposing of atl insulation materials, whether they contain asbestos or not, from mechanical . � systems) 18.21 3.30 BOILERMAKERS 21.15 7.86 BRICIiLAYERS & STONEMASONS 22.94 5.51 I��ARBLE SETTERS 21.99 5.95 TILE SETTERS 21.65 5.84 MARBLE SETTERS' FI1vISHERS & TILE SETTERS' FIIVISHERS 18.55 4.99 TERRAZZO WORKERS 22.91 5.15 LATHERS 21.2� 7.04 MILL«'RIGHTS 21.14 7.69 SOFT FLOOR LAYERS 18.38 6.17+a , . � �C,� - � 31�(' FOOTNOTE: a. 6 Paid Holidays: $2.24 per day for New Year's Day; Memorial Day; Independence Day; Labor Day; Thanksgiving Day; & Christmas Day CARPENTERS & PILEDRIVERMEN (Site Preparation, Excavation & Incidental Paving) 20.43 6.80 COMMERCIAL BUILDING: CARPENTERS & PILEDRIVERMEN 20.43 6.81 INSULATORS (Other than description of Residential) 20.43 6.81 RESIDENTIAL: CARPENTERS & PILEDRIVERMEN 18.50 6.81 INSULATORS (Erection of or remodeling of wood frame structure, 4 stories or less; the remodeling of any existing residential structure 4 stories or less) 18.50 6.81 ELECTRICIANS (Also includes new construction of multiple dwellings in excess of 4-plexes & all residential remodeling, rewiring & repairing of any apartment project exceeding 8 units or 400 amp ser��ice): ELECTRICIANS 22.67 8.56 CABLE SPLICERS 23.27 8.56 ELECTRICIANS (Up to and including 3 stories above grade in height) 17.47 5.81 2 . . . , �(.e� I 3�e SOUND, SIGNAL & COMMiJNICATIONS WORK: TECI��ICIAN (Installation of Controller Only) 19.22 .58 (3%)+a+b Il�'STALLER (Excluding Controller Work) 11.31 .34 (3%)+a+b FOOTNOTES: a. I year's service - 5 days'paid vacation; 2 years'service- 10 days'paid vacation ; S years' service - 12 days'paid vacation; 7 years'service- 14 days'paid vacation; 9 years'service- 16 days' paid vacation; 11 years'service- 18 days'paid vacation; 12 years'service- 20 days'paid vacation b. 8 Paid Holidays: Nerv Year's Day; Memorial Day; 4th of July; Labor Day; Thanksgiving Day; Day After Thanksgiving; the normal work day precedirtg Christnaas Da}'; & Christmas Day ELEVATOR CONSTRUCTORS: ELEVATOR MECHANICS 23.79 6.12+a+b FOOTNOTES: c. 7 Paid h'olidays: 1�'etiti� Year's Day; 1�lenic�•ial D��; Indeper•�dence Day; La'�or Day; 77ianksgiti�ing Day; The Day Afzer Thanksgiving & Christmas Day b. Employer contributes 8% of regular hourly rate to vacation pay credit for employee who has tivorked i�t business more than S years; 6%for less than S years PO��'ER EQUIPI7ENT OPERATORS (Buildin' & Residential Construction): GROUP 1 23.74 6.55 •° GROUP 2 23.40 6.55 GROUP 3 22.60 6.55 GROUP 4 21.99 6.55 GROUP 5 21.65 6.55 GROUP 6 21.48 6.55 GROUP 7 19.97 6.55 GROUP 8 18.85 6.55 GROUP 9 18.29 6.55 3 . . . , ��- � ��� POVVER EOUIPn1ENT OPERATORS Building & Residential Construction): GROUP 1: Helicopter Operator; Truck & Crawler Crane with 300' of Boom & Over, including Jib; Tower Crane 300' & Over GROUP 2: Truck & Crawler Crane with 200' of Boom, up to but not includin� 300' of Boom, including Jib; & Tower Crane 250' & Over GROUP 3: Truck & Crawler Crane with 150' of Boom, up to but not including 200' of Boom, including Jib; & Tower Crane 200' & Over GROUP 4: Traveling Tower Crane; Master Mechanic; Pile Driving Operator (when 3 drums are used); & Tower Crane 150' & Over GROUP 5: Truck & Crawler Crane, up to but not including 150' of Boom, including Jib; Crawler Backhoe; Derrick (Guy & Stiffleg); Hoist Engineer (3 drums or more); Locomotive Operator; Overhead Crane Operator (inside building perimeter); Tower Crane (Stationary) 100' & Over; Tractor Operator with Boom; & Terrain Vehicle Crane GROUP 6: Air Compressor Operator 450 CFM or Over; Pump Operator and/or Conveyor Operator (2 or more machines); Hoist Engineer (2 drum); Mechanic; Pumperete or Complaco type Machine Operator; Forklift; Boom Truck Operator; Concrete Mixer Operator; Drill Rig - Heavy Rotary or Churn when used for Caisson Drilling for Elevator Cylinder or Building Construction; Front End Loader (Over 1 cu. yd.); Hoist Engineer (1 drum); Straddle Carrier Operator; Power Plant Engineer (100 KW & over on multiples equal to 100 KW & over); Tractor Operator over D2; & Well Point Pump Operator GROUP 7: Concrete Batch Plant Operator; Gunite Operator; Tractor Operator D2 or similar si2e; & . ' Front End Loader Operator, up to 1 cu. yd. GROUP 8: Air Compressor Operator 450 CFM or Over; Pump and/or Conveyor Operator; Brakeman; Pick-up Sweeper (1 cu. yd. & over Hopper capacity); Truck Crane Oiler; & Welding hlachine Operator GROUP 9: Mechanical Space Heater (Temporary Heat); Oiler or Greaser; & Elevator Operator POWER EQUIPi�1ENT OPERATORS (Site Preparation, Excavation & Incidental Paving): GROUP 1 21.32 6.55 GROUP 2 20.77 6.55 GROUP 3 20.59 6.55 GROUP 4 20.47 6.55 GROUP 5 17.43 6.55 GROUP 6 16.22 6.5� 4 . � . � q�-- ►��c� POWER EOUIPMENT OPERATORS (Site Preparation, Excavation & Incidental Pavin�: GROUP 1: Helicopter Pilot; *Crane with over 135' Boom, excluding Jib; Dragline, Crawler, Hydraulic Backhoe and/or other similar equipment with Shovel-type Controls 3 cu. yds. & over Mfg. rated capacity; & Pile Driving when 3 drums are in use GROUP 2: Cableway; Concrete Mixer, Stationary Plant over 34E; Derrick (Guy or Stiffleg) (Power) (Skids or Stationary); Dragline, Crawler, Hydraulic Backhoe and/or similar equipment with Shovel- type Controls, up to 3 cu. yds. Mfg. rated capacity; Dredge or Engineers, Dredge (Power) & Engineer; Front End Loader, 5 cu. yds. & over; Grader or Motor Patrol, Finishing Earthwork & Bituminous; Locomotive Crane; Master Mechanic; Mixer (Paving) Concrete Paving, Road; Mole, including Power Supply; Mucking Machine, including Mucking Operations, Conway or similar type; Piledriving; Refrigeration Plant Engineer; Tandem Scraper; Tractor - Boom type; Truck Crane - Crawler Crane; & Tugboat - 100 HP & over GROUP 3: Dual Tractor; Elevating Grader; Pumperete; Scraper - Struck Cap. 32 cu. yds. & over; & Self-propelled Traveling Soil Stabilizer GROUP 4: Air Track Rock Drill; Articulated Hauler Terex, Caterpillar or similar type; Asphalt Bi[uminous Stabilizer Plant; Automatic Road Machine (CMI or similar); Backfiller; Concrete Batch � Plant; Bituminous Roller (8 Tons & over); Bituminous Spreader & Finishing (Power); Boom Truck (Power Operated Boom); Cat Tractors with Rock Wagons or similar types; Chip Harvester & Tree Cutter over 150 HP; Concrete Mixer on jobsite over 14S; Concrete Mobile; Crushing Plant (G:a��el �. Stone) or Grz�:el �'4'zshing, Crus,"�ing &: Screeni�:�� �;ar.t; CLrb M:�cr:r.�; Dope Machine (Pipeline); Drill Rigs, Heavy Rotary or Churn or Cable Dri?1; Fork Lift or Straddle Carrier; Fork Lift or Lumber Stacker; Front End Loader, over 1 cu. yd.; Hoist Engineer (Power); Hydraulic Tree . � Planter; Launcherman (Tankerman or Pilot License); Lead Greaser; Locomotive; Mechanic; Milling, Grinding & Planing Machine; Multiple Machines, such as Air Compressors, Welding Machines, Generators, Pumps; Pavement Breaker or Tamping Machine (Power Driven) Mighty Mite or similar t}�pe; Pickup Sweeper, 1 cu. yd. & over Hopper Cap.; Pipeline Wrapping, Cleaning or Bending Machine; Power Plant Engineer, 100 K.W.H. & over; Power Actuated Horizontal Boring Machine, over 6"; Pugmill; Rubber-tired Farm Tractor, Backhoe Attach.; Scraper, up to 32 cu. yds.; Skid Steer Loader, over 1 cu. yd. with Backhoe Attachment; Slip Form (Power Driven) (Paving); Tie Tamper & Ballast Machine; Tractor, Bulldozer, o��er 50 HP with Power Take-off; Trenching Machine (Se�ver, Water, Gas); Well Point Installation; & Dismantling or Repair Mechanic GROUP 5: Air Compressor, 600 CFM or over; Bituminous Roller (Under 8 tons); Bituminous Rubber-tired Roller; Concrete Distributor & Spreader Finishing Machine, LonQitudinal Float, Joint Machine, & Spray; Concrete Saw (Multiple Blade) (Power Operated); Form Trench Digger (Power); Front End Loader, up to & including 1 cu. yd.; Grader (Motor Patrol); Gunite Gunall; Hydraulic Log Split[er; Loader (Barber Greene or similar type); Payhauler or similar type; Post Hole Driving Machine/Post Hole Auger; Power Actuated Auger & Boring Machine; Power Actuated Jack; Pump; Se]f-propelled Chip Spreader (Flaherty or similar); Sheep Foot Compacror «�ith Blade - 200 HP & over; Shouldering 1�Iachine (Pow�er) Apsco or similar type including self-propelled Sand & Chip Spreader; Stump Chipper & Tree Chipper; Tractor, Bulldozer, 50 HP or less: and Tree Farmer (�Iachine) � . . . , g(�- r3�� POWER EQUIPMENT OPERATORS (Site Prep., Excavation & Incidental Paving�: (contd) GROUP 6: Conveyor; Dredge Deck Hand; Fireman or Tank Car Heater; Gravel Screening Plant (Portable not Crushing or Washing); Greaser (Truck or Tractor); Leverman; Mechanic, Space Heater (Temporary Heat); Oiler (Power Shovel, Crane, Dragline); Power Sweeper; Roller on Gravel Compaction; Self-propelled Vibrating Packer (35 HP & over); Sheep Foot Roller; Tractor, Wheel Type (over 50 HP); & Truck Crane Oiler *CRANE OVER 135' BOOM, EXCLUDING JIB - $.25 PREMIUM; CR.ANE OVER 200' BOOM, EXCLUDING JIB - $.50 PREMIUM UNDERGROUND WORK: TUNNELS, SHAFTS, ETC. - $.25 PREMIUM UNDER AIR PRESSURE - $.50 PREMIUM IRONWORKERS 22.85 7.59 LABORERS (Building & Residential Construction): GROUP 1 18.70 4.78 , GROUP 2 19.02 4.78 GROUP 3 19.32 4.78 FLAGPERSON 15.92 4.58 LABORERS (Buildin� & Residential Construction): GROUP 1: Construction; Carpenter Tender; Concrete; Damp Proofer Below Grade; Drill Runner Tender; Dumpman - Dirt, Asphalt, Concrete, Cement; Heater Tender; Hot Tar Caulker - Corker; Joist Handler; Material Handler - Power Bugg}�; Rebar; Snow Blower Operator; Signal Person; Asbestos and Hazardous Waste Technician; Hydro Blast or Waterblast; Chain Saw Operator; Concrete Saw, Drill Operator; Concrete Vibrator; Demolition & Remodeling, Excluding Demolition of an entire Structural System; Mason Tender; Mortar Mixer - Cement or any other substitute Material or Composition; Pipe Handler; Pneumatic & Electric Tool, Jackhammer, Paving Buster, Chipping Hammer, Tamper Operator, etc.; Swing Stage Line Scaffold (Not including "Patent" Scaffolding); & Torchman - Gas, Electric, Thermal or similar device; & Remote Control Tamper GROUP 2: Caisson Wark; Nozzle Operator - Gunite, Cement, Sandblasting; Pipelayer; Refractory Worker; Sheeting Setter & Driver, Heavy Building Excavation; Underground Work - Open Ditch or Excavation 8' Below Grade; & Underpinning GROUP 3: Driller for Blasting purposes; Dynamite Blaster or substitute products - Tovex TR, �Vater, Gac, Gel, Bristar, Silent Dynamite, etc. 6 . . , . q�—�3�c.e LANDSCAPE - SOD LAYERS{All work except Residential of 4 units or less) 9.13 3.39 LABORERS (Site Preparation, Excavation, & Incidental Paving): GROUP 1 18.02 4.72 GROUP 2 18.17 4.72 GROUP 3 18.22 4.72 GROUP 4 18.37 4.72 GROUP 5 18.47 4.72 GROUP 6 18.72 4.72 GROUP 7 14.47 4.32 LABORERS (Site Pre�aration, Excavation, & Incidental Paving): GROUP 1: General; Bituminous Batcherman (Stationary Plant); Cement Coverman Batch Truck; Cement Handler - Bulk, Bag; Carpenter Tender; Concrete Batcherman; Concrete Handler, Caisson, Footings, Columns, Piling, Slabs, etc.; Concrete Shoveler, Tamper & Puddler (Paving); Concrete Longitudinal Floatman (Manual Bullfloat on Paving); Damp Proofer Below Grade; Drill Runner Tender; Dumpman (Dirt, Paver, Dumping Batch Trucks, etc.); Fabric Installer; Hydrant & Valve Setter; Hydro Blast or Waterblaster; Joint Filler (Concrete Pavement); Kettleman (Bituminous or Lead); Labor Wrecking Demolition; Pipe Handler; Power Buggy Operator; Powder Monkey; Reinforced Steel Laborer; Reinforced Steel Setter (Paving); Service Connection Maker (Water, Gas); Signalperson; Squeegeeman; Stabilizing Batcherman (Stationary Plant); Temporary Heater & Blower 'Tender; c& Top Man (Sewer, Water or Gas Trench) GROUP 2: Bituminous Worker - Shoveler, Raker, Floater, Squeegee; Utility; Brick Tender; Compaction Equipment (Hand Operated); Conduit Layer; Curb Setter; Mortar Mixer; Sand Cushion Bedmaker; & Torchman - Gas, Electric, Thermal or Similar Device GROUP 3: Chain Saw; Concrete Drilling; Concrete Mixer Operator; Concrete Sawer; Concrete Vibrator; Ditch & Other Work (More than 8 feet below starting level of manual work); Formsetter;:, Joint Sa���er, I�lortar; Pneumatic Tools, Jackhammer, Paving Buster, ChippinQ Hammer, etc.; & Stone Tender Mason Tender GROUP 4: Bottom Man (Sewer, Water or Gas Trench - more than 8 feet below starting level of manua] work); Brick or Block Paving Setter; Caisson Work; & Cofferdam �l'ork ' GROUP 5: Cement Gun Operator (1 1/2" or over); Driller - Air Track or Similar; Nozzleman (Gunite, Sandblasting, Cement); & Pipelayer GROUP 6: Asbestos & Hazardous Waste Technician; Blasting Powder Man (Dynamite or substitute products); Tunnel Miner; Tunnel Miner Tender; Tunnel Laborer; Underground Laborer; & Underpinnina 7 , � � . �--«�c� GROUP 7: Flagperson PAINTERS: GROUP 1 20.55 6.69 GROUP 2 15.41 6.69 GROUP 3 21.30 6.69 PAINTERS CLASSIFICATIONS: GROUP 1: Brush; Drywall Finisher; & Paperhanger GROUP 2: Drywall Sander GROUP 3: Sandblaster; Spray; Swing Stage; Boatswain Chair; Window Jack; Safety Belt; Erected Structural Steel; Bridges; & Application of Epoxy Materials & Materials containing over 50% Creosote SIGN PAINTERS 19.01 1.61+a+b+c FOOTNOTES: a. $100.00 per month b. 8 Paid Holidays: New Year's Day; Memorial Day; Independence Day; Labor Day; Thanksgiving Day; the Day After Thanksgiving; the last working Day Before Christmas; & Christmas Day. c. Vacation Pay: Employees hired before June 9, 1983 - 3 weeks' paid vacation at $1.14 per hour; Employees hired after June 9, 1983: 1 year or more of employment - 2 weeks' paid vacation at �.80 per hour; Five or more years of employment - 3 weeks' � paid vacation at $1.14 per hour. GLAZIERS 22.06 6.14 CEMENT MASONS (Building & Residential) 21.49 6.41 PLASTERERS 21.49 6.41 CEMENT 1�1AS0�'S (Site Preparation, Excavation, & Incidental Paving) 21.39 6.41 8 . , . �� � ,3� PLiJMBERS 24.26 7.07+a FOOTN'OTE: a. 1 Paid Holiday: Labor Day SPRII�'IiLER FITTERS 22.73 9.11+a FODTNOTE: a. 6 Paid Holidays:Memorial Day; July 4th; Friday before Labor Day; Labor Day; Columbus Dcry; & Thanksgiving Day PIPEFITTERS & STEAMFITTERS 24.70 7.23 ROOFERS 21.24 6.22+a FOOTNOTE: a. 1 Paid Holiday:Labor Day SHEET METAL WORKERS: COMMERCIAL RUILDING 2291 7.Sl+a RESIDENTIAL 14.72 4.15+a . • FOOTNOTE: a. 1 Paid Holiday: Labor Day TRUCI� DRIVERS (Site Preparation, Excavation & Incidental Paving): GROUP 1 18.55 4.03 GROUP 2 18.00 4.03 GROUP 3 17.90 4.03 GROUP 4 17.65 4.03 TRUCK DRIVERS (Site Preparation, Excavation & Incidental Pavin�: GROUP 1: Boom; Mechanic; Off-Road; Tractor Trailer; Truck Driver (Operation of Hand & Power Operated Winch) GROUP 2: 'Tri Axles (Including Four Axles) 9 � � � , � . � a�- �3�� GROUP 3: Bituminous Distributor; & Tandem Axles GROUP 4: Bituminous Distributor Spray Operator (Rear End Oiler); Dumpman; Pilot Car; Self- propelled Packer; Single Axles; Slurry Operator; Tank Truck Tender (Gas, Oil, Road Oil & Water); Tractor Operator (Wheel type used for any purpose) THE FOLLOWING CLASSIFICATIONS SHALL COME UNDER THE APPROPRIATE AXLE RATE WAGE GROUP: "A" Frame; Dry Batch Hauler; Dump; Ready-Mix Concrete; Slurry; Tank (Gas, Oil, Road Oil & Water) TRUCK DRIVERS (Landscape - sod, trees, shrubs & black dirt): SINGLE AXLES & FARM TRACTORS 10.10 2.65 TANDEM AXLES 10.25 2.65 TRUCK-TRAIN COMBINATION 10.40 2.65 TRUCK DRIVERS (Building & Residential Construction): GROUP 1 - Boom Truck Operator 16.25 2.65 GROUP 2 - Ready Mix; Tractor-Trailer 15.90 2.65 GROUP 3 - Mechanic; Fork Lift Operator; & Tandem or 3 Axles 15.80 2.65 • � GROUP 4 - Farm Tractor; Single or 2 Axles; & Dumps 14.95 2.65 WELDERS - Receive rate prescribed for craft performing operation to which welding is incidental. Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29 CFR 5.5(a) (1) (v)). In the listing above, the "SU" designation means that rates listed under that identifier do not reflect collectively bargained wage and fringe benefit rates. Other designations indicate unions whose rates have been determined to be prevailing. 10 , . , , CITY OF SAINT PAIIL q�p ���C�1, RATIO OF APPRENTICES TO JOIIRNEYWORRERS ON LOCAL STATE AND FEDERALLY-FIINDED PROJECTS anbeatoe workeza 1 Apprentice for 1 Journeyworker; then 1 additional apprentice for each and Ineulatoza 9 additional journeyworkers; Removal - 1 Technician for each 4 Helpers Boiler Makere 1 Apprentice for the first 6 Journeyworkers, then 1 for 5 (the contracting company must provide their actual union agreement to allow this ratio) Bricklayere 1 Apprentice for 2 Journeyworkers Carpentere Commercial - 1 Apprentice for 3 Journeyworkers (statement of exception included in their agreement) Residential - 1 Apprentice for 1 Journeyworker � Carpet Layere 1 Apprentice for 1 to 4 Journeyworkers Cemeat Maeons 1 Apprentice for 1 Journeyworkez Blectriciane Commercial: Residential: 1 Apprentice for 1 to 3 Journeyworkers 1 Apprentice for 1 Journeyworker 2 Apprentices for 4 to 6 Journeyworkezs 3 Apprentices for 7 Journeyworkers Elevator 1 Helper for 1 Journeyworker = 1 team; two teams or more may have 1 additional Conetructora Helper for the first 2 teams; 1 extra Helper for each additional 3 teams; CI.€J�NIIP: 2 Helpers for 1 Journeyworker Glazieze and 1 Apprentice for 1 Journeyworker; then 1 for 5. Apprentice Glassworkers at the Glaeeworkere 6th-1000 hr. level may work alone Iroawozkera All Structural Ironwork 1 Apprentice for 7 Journeyworkers All Ornamental Ironwork 1 Apprentice for 4 Journeyworkers Lathera 1 Apprentice for 1 Journeyworker; then 1 additional for addl 5 journeyworkers operatoza 1 Apprentice for 1 to 10 Journeyworkers Paiatere (iacluding: decorators, epray paiatera, paperhangare, drywall finishers, applicatoze, aad eandera) 1 Apprentice for 1 Journeyworker; then 1 for 4 Apprentices in their last 2 years of training may work alone. (inclvdi.ag: plaetic tabricstora, siga aractors and paintere) 1 Apprentice for 2 Journeyworkers; then 1 additional for addl 9 journeyworkers . Pipefitters 1 Apprentice for 1 to 4 Journeyworkers; 1 additional Apprentice for each additional 5 Journeyworkers. All shops employing 3 Journeyworkers are required to employ 1 Apprentice. No employer shall be allowed to employ more than 5 Apprentices. Plaeterera 2 Apprentices for 1 Journeyworker Plumbere 1 Apprentice for 1 to 4 Journeyworkers; 1 additional Apprentice for each addiGional 5 Journeyworkers. All shops employing 3 Journeyworkers are required to employ 1 Apprentice. No employer shall be alloved to employ more than 5 Apprentices. Roofera 2 Apprentices for 2 Journeyworkers; 1 of the 2 Apprentices must be 60t Sheetmetal workere Camnercial: 1 Appre�tice for d Journeyworkers; or if your agreement so states, 1 Appzentice for 3 Jaurneyworkezs, up to 15 journeyworkers, then 1 to 4 thereafter Aesidential: 1 Apprentice for 3 Journeyworkers; residential apprentices may work alone on project residentfal work with proper supervision after they have been indentured for two (2) months Spzinkler Fittere 1 Apprentice for 1 Journeyworker Terrazzo Wozkere 1 Apprentice for 3-5 Journeyworkers Tile Settere 1 Apprentice for 3-5 Journeyworkers Zt is required that you DO NOT exceed the ratio of apprentices as shown above. DO NOT IISE AN APPRENTICfi ALONE Oti A JOH SITE unless an exceptior. is indicated above or in the contracting company's union agreement. NO OTF�R EXCEPTIONS ARE ALLOWED. APPRENTICES must be registered in a bona fide (e.g., State certified) Apprenticeship Program �LPERS are not allowed at a lesser pay rate on State & Federally-funded pzojects R.�.C.'s (Reaidential IItility Carpentere) are not allowed at a lesser pay rate on Sta*_e & Federally-funded projects \a-jrato7:11/16/9� � ' • � Little Davis-Bacon Q(e- � 37(� Requirements for Bona-Fide Self-Employed/Independent Subcontractor Status -� All "self-employed" independent contractors/subcontractors and "partnership" contractors/subcontractors must provide bona-fide status demonstration prior to performing «•ork at the project site. All must have executed and provided a written contractlsubcontract agreement for their work performance to the labor standards representati�•e assigned to this project. Failure to demonstrate contractor/subcontractor status may result in payment dela3• and possibly contract/subcontract agreement cancellation. --� All "self-employed independent" and "partnership" contractors/subcontractors must have executed a written subcontract agreement (containing the Little Davis-Bacon Labor Standards Requirement Statement and applicable Prevailing Wage Rate Schedule) to perform work on the project site and provide a copy of that agreement. Bona-�de Self-Employed/Independent Subcontractor Status Demonsiration —� Additionally, all self-employed independent contractors/subcontractors must submit copies of four (4) of the following six (6) listed documents: 1) identification of a registered trade name & location of telephone listing under that name; 2) a contractors license; 3) liability insurance or a subcontractor's bond; 4) a Federal Tax Identification Number; 5) a copy of previous tax year's income tax filing, including your attached Schedule C; . . 6) any other formal written determination regarding status as defined by State or Federal Department of Revenue and the information subinitted as a basis for that determination. Failure to provide four (4) of the above listed six (6) identified documents will disallow the "subcontractor status" and the individual(s) will be included on the engaging company's payroll as employees, receivina pay as identified by the Prevailing VVage Rate Schedule applicable to the project. Bona-Fide Partnershin Subcontractor Status Demonstration -� Additionally, if the subcontractor is a partnership, all of the following must be submitted: .a copy of the executed partnership ajreement .Federal and State Tax Identification Numbers applicable to that partnership agreement .a cop}� of the previous tax year's filing, includin� Schedule E. Failure to provide copies of the above identified documents will disallow the "subcontractor status" and the individuals «�ill be included on the engaQinJ company's payroll as employees. *�`STATUS n1UST BE CLARIFIED PRIOR TO BEGIti'�II\G ��'OR�i O\ A?��' PROJECT** Siioi,`c�:�„ . _ 3;30!9� Counci!Ffle # , ' � Green Sheet# 35863 RESOLUTION CITY OF SAINT PAUL, MINNESOTA q�y-� ��'�(� Presented By: Referred To: Committee: Date � WHEREAS, The Science Museum of Minnesota, a Minnesota non-profit corporation ("SMM")proposes to construct new s facilities for use as a Science Museum in the Riverfront Redevelopment Area of the City of Saint Paul,which facilities wili ' a include, but are not limited to, a museum of not less than 300,000 square feet and a 700 car parking ramp(coilectively, 4 the"Science Museum"); and s s WHEREAS, the Civic Center Authority is in the process of constructing an expansion to the Saint Paui Civic Center in the � same vicinity and the construction of the Science Museum requires a change in the route by which delivery trucks exit s from the area surrounding the Civic Center; and s �o WHEREAS, the City, SMM and the Civic Center Authority have agreed that the construction of a turn around underneath » Kellogg Boulevard (the"Turn Around")as more fully set forth in the Civic Center Turn Around Agreement, by and among �s the City, SMM and the Civic Center Authority(the"Turn Around Agreement") is in the best interests of the parties and is �s necessary to accommodate the construction of the Science Museum and the expansion of the Civic Center; and �a �s WHEREAS, the City will receive significant long term benefits from having two successful projects operating in the �e downtown area which together draw more than four million visitors annually to the City; now, therefore be it 77 � �s RESOLVED, that the City hereby agrees to make a one-year, interest free loan to SMM in the principal amount not to �s exceed 52,500,000(the "Loan")to pay for the construction of the Turn Around and location oi certain NSP Feeder lines 2o and SMM has agreed to secure and repay the Loan, al� in accordance with the terms and conditions of a Loan .. A�reement b�and betv�een t'r,e �-;`,;� :. :;' S�.�t,1 r;~icn i^.cl�+d=_: (i) �. ?`,' �, ..���= ±'-.�: Tum Around and Feec!��lin�� tc be z2 completed by December 31, 1990 (2)ShiM will pay for al� costs associated with the Turn Around and �iSP Feeder lines za (3) City Loan wili be secured by lien against Science Museum Board Restricted Funds (4)City will be repayed as part of za SMM Revenue Bonds issue anticipated this fall, and(5)Civic Center will construct the Turn Around through a change ' ss order at no cost to them; and be it 2s s� FURTHER RESOLVED, that the City Council hereby approves the Turn Around Agreement and the Loan Agreement in zs substantially the forms submitted, together with such changes, additions or deletions as are approved by the City ze Attorney's Office. The Mayor, Director, Department of Pianning and Economic Development and Director, Department of so Finance and Managemen± Services are hereby authorized to execute the Turn Around Ag�eement and the Loan a� Agreement in subs;antially the forms submitted. In the absence of the Mayor, Director, Department of Planning and az Economic Developmen± and Director, Department of Finance and Management Services, the Turn Around Agreement 33 and Loan Agreement may be executed by any other appropriate officers; and be it 3�4 ss FiNALLY RESOLVED, that the Mayor, pursuant to sec. 10.07.04 of the city charter, recommends the following changes to 36 the 1995 budget: Pa�= 1 e` .. - � � 's� i anctn Current Ame�ed ^ !��`� 38 Budget Change Budget 39 Science Museum-City and State ConVibution �o C96-0T200 41 tz Scattered Site Tax Increment Finance District 2,400,000 2,400,000 43 Community Development Block Grant(CDBG)Contingencies 500,000 �.� aa Urban Development Action Grant �,� ��� es 1996 Capital Improvement Bonds 3,000,000 3,000,000 ♦s City of Saint Paul Sales Tau prxceds-CuRural Account 30�,0�0 �,�� 47 Riverfront Tax increment Finance District 1�,� ���� as Civic Center Reserves �,� ���� ae State of Minnesota-Preliminary Design Grant 1,000,000 1,000,000 so Resolution Trust Corporation(RTC)assets 4,000,000 4,000,000 5t Science Museum of Minnesota s2 C96-0T200-6905 `Revenue bonds-repayment of loan D 2,500,000 2.500,000 63 12,400,000 2,500,000 14.900,000 64 ss Spendinq ss 5� Science Museum-City and State Contribution 58 C96-OT200 59 so State of Minnesota-Preliminary Design Grant 1,�,� ����� st Land Assembly ' 3,500,000 3,500,000 52 Public Improvements 7,400,000 7,400,000 63 SMM loan($2.5 million total) 64 C96-0T200-0565 Transfer-Civic Center Turn Around 0 1,742,000 1,742,000 ss C96-OT200-0784 NSP:feeder line relocation 0 758,000 758,000 ss East Skyway Link 500,000 500,000 67 12,400,000 2,500,000 14,900,000 68 69 �o Financing �� n Civic Center Expansion 7s Q30-9Q300-7306 Trans!er:from Sh".tii for tum sround 0 1,742,000 1,742,000 74 . 75 All other financing 13,478,169 13,478,169 • 76 13,478,169 1,742,000 15,220,169 77 78 Saendina 79 $o Civic Center Expansion s� 930-90300-0784 SMM:turn around construction 0 1,742.000 1,742,00� 82 a3 AII other spending 13,478,169 13,478,169 gy 13,478,169 1,742,000 15,220,169 ss � j ! Yeas Nays nbsent Requested by Department of: Bfakey i eosUOm ; ; Mayor-Budget Office Guerin ; � Narris � ! By: Joseph Reid Megard I �� Reerman I ;_f �_ qpproval Recommended by Budget Director: Thune I _� � � i By: Adopted by Council. Date Form Elpproved by City Attorney: Adoption Certified by Council Secreta.ry� By: By . P,pproved by Mayor for Submission to Councii: A;,proved by Mayor. Da'e 8��� ---- �:,� Sr�n?aJ&�09�'C"`_.,`�cc°RSd.iDi,?'a 23�RES�IIlTnRES_SM�=�:... .�._ ' �� a�- �3�c� EXHIBIT S • SMM REPORTING REQUIREMENTS TO THE CITY FOR ANNUAL REPORT 1 . Certification by SNII�'! Representative that the SNII�I Improvements have been used for a science museum anc� related and ancillary activities for the last Fiscal Year of SNIl�I. 2 . Annual Audited Financial Statements of SNII�I for preceding Fiscal Year and summary of major improvements or repairs to the SMM Improvements. 3 . Report and evaluation of major programming activities at the SNIl�I Improvements from the preceding Fiscal Year. 4 . SN�NI annual budget for the SNIM Improvements including revenues and expenses and major improvements or repairs to the SMM Improvements for the next Fiscal Year. 5 . SMM cashflow for funding operations of the SNIl�I Improvements for the next three years . 331�7^r.7 �-1 • • • • • � � • , r • � � � � ,� ' �� ��� . •,�a _ �� � ��.�..-• �� . �� � � • � �,� ' d'.� ,� . � ' i�� � � � . - � � � � _ __- �+ � ///� .--. \ ' . � •• _ : \ �, I r r ���' � . + '• • � �'°� � � • '� _�T-=- 1 `� • • �� �� •� c � �, , \�� .� ,��� � - �%�'+�r�J� ` � � a�_ �1 • _ �/�,� ��� � � �'�°O` �• � �'� \• y �.3� t, � ! �► \ `� �i) !� � ��= . � . � � —____ �� : \� w "�.� �'� ' ' • • i � .. �, � �\ :. � is� A�� �a r�' . � r c,, • • � �,� `�" `:��;�� o � �� ��� !• '•. , ��� �,.;..�.. \ -„�� / io�.'��:;`� 0�•,� �\ �: : `1'a�i �� aa4 . :�, � � •.. •� � =r;�_ r � . .� ,•�!!� \ � ��A _ O ~----__�`-„�--..� ----. �� � �� ` \ � . ,;�. � l . . �O JI_-' � _- ;,K ,� � �� p* \ • ...� _ �;�1 ,=�- .� ., �o r�- � ��p, o � �.. 'i`,. r c� .�a�.. "' y�'-�_ ♦t • �!. � w _ ,,;;�_.. � � „������.���y�����i��y�, � ,« d o �\ � w; i , '4 �� _ If s.., s? ��e���i�.•.•�i�� �'t� 0 � 't� \ . � ; ° •= e.�y�������..�a��'�`�� . 0 . A � = 4:��i��i��s�"i�����/ � ' ' r °:� ' 1% "�����'`� - ;:y��'`•o:%�•.�''•�,�..�, --�.. � 'o �C9 '`�a � �� �� ��� 4 � . � � �C �0��i►�A�a���;��� � '�i�1��0 ' ' � �\ � -- 0 �,�.�a`��s� -q'' '`��=e oy�:� � .� -� ., a0-0 �� �0--4 ;;�� % p . ;;,=1 ti(,a�i4�3'' �o f .�o ea0�0. c� �' _.. l�,�� �� .� ¢ �o- ,1[�'�:� y�;�i.,• 49b�0���^�d; �\ � I '- �'' � • �'�'' d�� '�'�':Y. O0� _ �- �� � � :_��. ��'°- �i�`�° �{90'= 0!�'�� - \ • _ � =��'�,A�-�' ���q�o - 9�:���' / � �; �• a �� e � � � ` .� �_. ya• .--^._ � ' • � � e'� .°�!i?Pd 0 -� ; � ,-'`P � 6�•� \ � ��•� �. �`!: ��, -��� �.- � • � � � • !� ' '�'� e� /`I • • . :.•. . � �o � `f :� �� .���,� �� �� �� f9 ���r 'a ��� �'' �' . �• � •� , , � .����•���.�; - �,, •• � � y, ��w • ♦ q� � � r- � ���u� � • , � � � � I` � � • • ��'� ��� Date : Aug 21 CITY OF ST PAUL PROPERTY OWNERSHIP CAF ID House # UNIT # STREET NAME OCCUPANT.SCREEN 0270300311 00311 TORONTO ST CONSTR YR Occupant :P H A Ward Dist Tract Blk 1976 P 1 : 112823110016 Parcel Code 02 09 36900 402 2 : 052290003101 Homestead Name (s) FEE NAME 1 : 1 :PUBLIC HOUSING AGENCY 2 : 2 :480 CEDAR ST SUITE 600 3 : 3 :ST PAUL MN 551012240 Zone Description 4 : 1 :R-4 One-Family Residential TAX NAME 2 : 1 . 3 . 2 . 1 . 3 . 2 . TAX DESCRIPTION DAWSON AND SMITHS Usage 1 :EX N 20 FT; LOT 2 & N 2 FT Residential 2 :OF LOT 4 & ALL OF 3 :LOT 3 BLK 1 4 � Subuse 5 � SINGLE FAMILY . � �'tat� � Ci�� A Y�� . � , � � �t°�, a(��-13�7(� � GRANT AGREEMENT CONSTRUCTION GRANT for the SCIENCE MUSEUM OF MINNESOTA PROJECT � THIS AGREEMENT shall be effective as of the « » day of «2» , 199«2», and is made and entered into by and between the City of Saint Paul, a «4» (hereinafter • referred to as the "Public Entity"), and the Department of Administration for the State of Minnesota (hereinafter referred to as the "State Entity"). WHEREAS, under the provisions contained in __ «6» , the Public Entity has been given the authority to «7» ; and WHEREAS, under the provisions contained in _ «8» , the State of Minnesota has allocated «9» Dollars ($ «9» ), which is to be given to the Public Entity as a grant to assist it in the ` «10» as authorized by «6» ; and VVHEREAS,the monies allocated to fund the grant to Public Entity are the proceeds of state general obligation bonds authorized to be issued under Article XI, § 5(a) of the Minnesota Constitution; and VVHEREAS, the Public Entity and the State Entity desire to set forth herein the provisions relating to the granting of such monies and the disbursement thereof to the Public Entity. NOW, THEREFORE,in consideration of the grant described herein, the parties hereto do hereby agree as follows: Article I DEFINITIONS Section 1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings set out respectively after each(such meanings to be equally applicable to both the singular and plural forms of the terms defined), unless the contents hereof specifically indicate othervvise: A. "Agreement" -means this Grant Agreement for the Science Museum of Minnesota Project. B. "Commissioner's Order" - means that certain "Order Amending Order of the Commissioner of Finance Relating to Use and Sale of State Bond Financed Property" executed by the Finance Commissioner on July 20, 1995. Conswcdon Grant Agreement for 1 Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) �� q(�— �3�c� ' C. "Declaration" - means a declaration in the form of Attachment A attached hereto, indicating that the Facility is bond financed property within the meaning of the G.O. Compliance Legislation,and is subject to certain restrictions imposed thereby. D. "Disbursement Agreement" -means an agreement between the State Entity and the Public Entiry which describes and specifies the procedure to be followed and conditions that must be satisfied for the periodic disbursement of the proceeds of the Grant. ` E. "Event of Default" - means those events delineated in Section 2.05 hereinbelow. F. "Facility" - means K11» , which is located on the real property located in the County of K12» , State of Minnesota, legally described in Attachment B attached hereto and incorporated herein by reference. G. "Fair Market Value" - means; (i) the price that would be paid by a willing and qualified buyer to a willing and qualified seller as determined by an appraisal which assumes that any and all mortgage liens or encumbrances on the property being sold, which negatively effect the value of the Facility, will be released, or(ii) the price bid by a purchaser under a public bid procedure after reasonable public notice, with the proviso that any and all mortgage liens or encumbrances on the property being sold,which negatively effect the value of the Facility,will be released at the time of acquisition by such purchaser. H. "Finance Commissioner" - means the State of Minnesota acting through its Comrnissioner of Finance, and any designated representatives thereof. I. "G.O. Compliance Legislation" - means Minn. Stat. § 16A.695 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced. J. "G.O. Bonds" - means the state general obligation bonds, issued under the authority granted in Article XI, § 5(a) of the Minnesota Constitution, the proceeds of which are used to fund the Grant, or any bonds issued to refund or replace such bonds. K. "Grant" - means a grant of moties from the State Entity to the Public Entity in an amount of «9» Dollars ($ «9» ). L. "IRS Code" - means the Internal Revenue Code of 1986, as amended from time to time, and all treasury regnlations,revenue procedures and revenue rulings issued pursuant thereto. M. "Lessee" - means the entity which the Public Entity contracts with under a Use Convact. N. "Plans and Specifications" - means the plans and specifications which delineate and describe the improvement, rehabilitation, or construction work to be performed on the Facility. Construction Grant Agreement for 2 Ver - l0/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) . - 9�— � 3��e � O. "Predesign Grant Agreement" - means that certain Grant Agreement for Predesign and/or Design Grant for the Science Museum of Minnesota Project entered dated the P.da}�'Efqject" -means the acqd�4G.Qn, improvement, renovarion, rehabilitarion, and/or new construction of the Facility,as specified in Section 2.02 hereinbelow. Q. "Public Entity" -means the City of Saint Paul,a «4» R. "Service Contract" - means a Use Contract which qualifies as a serv`ice contract under Revenue Procedure 93-19. S. "State Entity" - means the Department of Administration for the State of Minnesota. T. "Use Contract" - means a lease, management contract or other similar contract between Public Entity and any other enrity, and which involves or relates to the Facility. Article II GRANT Section 2.01 Grant of Monies. The State Entity shall issue the Grant to the Public Entity, the proceeds of which shall be disbursed in accordance with the provisions contained hereinbelow. The parties hereto do agree and acknowledge that the Grant is not intended to be a loan of monies in any form or manner. Section 2.02 Use of Grant Proceeds. The Public Entity shall use the proceeds of the Grant, or cause such proceeds to be used, to; (Check all appropriate boxes.) O Acquire the Facility, � Improve the Facility, O Renovate or rehabilitate the Facility, O Newly Construct the Facility, � , in such a manner as will allow the Facility to be operated in the manner specified in Section 2.03 hereinbelow. Section 2.03 Operation of the Facility. Upon completion of the Facility, the Public Entity shall operate the Facility, or cause or allow it to be operated,as a science museum and other related ancillary uses, or for such other use as the legislature may from time to time designate,and may enter into Use Contracts with Lessees to so operate the Facility;provided that such contracts have been approved, in writing, by the State Entity and the Finance Commissioner. The Public Entiry shall also annually determine that the Facility is being so used, and shall supply a statement, sworn to before a notary public, to such effect to both the State Entity and the Finance Commissioner. Conswcuon Grant Agreement for 3 Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) �'(�— �3�c� � With respect to any program which will be operated in the Facility, the Public Entity covenants with, and represents and warrants to, the State Entity that (i) the Lessee has the ability and a plan to fund the program which will be operated in the Facility, (ii) the Lessee has demonstrated such ability and supplied such plan to the Public Entity and the State Entity prior to the execution of this Agreement,and(iu)the Public Entity will not enter into a Use Contract with a Lessee unless such Lessee has demonstrated to the State Entity that it has the ability�nd a plan to fund the program which Lessee intends on operating in the Facility. Section 2.04 Public Entity Representations and Warranties. The Public Entity further covenants with, and represents and warracits to the State Entity as follows: A. It has legal authority to enter into, execute, and deliver this Agreement, the . Declaration, the Disbursement Agreement, and all documents to which it is a party which are refetred to in such documents, and it has taken all actions necessary and incident to its execution and delivery of such documents. B. This Agreement, the Disbursement Agreement,the Declaration, and any and all other documents referred to in such documents are the legal,valid and binding obligations of the Public Entity enforceable against the Public Entity in accordance with their respective terms, except to the extent that the enforcement thereof may be limited by bankruptcy, insolvency or other laws affecting creditors'rights generally or principles of equity. C. It will comply with all of the terms, conditions, provisions, covenants, requirements, and/or warranties contained in this Agreement, the Declaration, the G.O. Compliance Legislation, and the Commissioner's Order. D. It has made no material false statement, or misstatement of a material fact, in connection with its receipt of the Grant, and all of the information it previously submitted to the State Entity, or which it will submit to the State Entity in the future,relating to the Grant or the disbursement of any of the proceeds of the Grant, is and will be true and conect. E. To its knowledge, is not in violation of any provisions of its charter, or of the laws of the State of Minnesota, and there are no actions, suits,or proceedings pending, or to its knowledge threatened, before or by any judicial body or governmental authority, against or effecting it relating to the Facility, and it is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority which would impair its ability to enter into this Agreement and the Declaration, or to perform any of the acts requined of it in this Ag�eement and the Declaration. � F. Neither the execution and delivery of this Agreement, the Declaration, or the Disbursement Agreement, nor compliance with any of the terms, conditions, requirements, or provisions contained in any of such documents, is prevented by, is a breach of, or will Conswcdon Grant Agreement for 4 Ver- 10/24/96 Science Museum of Minneso[a Project (SMM Cns[rctn GA) .- 9�- �3�(� � result in a breach of, any term, condition, or provision of any agreement or document to which it is now a party, or by which it is bound. G. The Facility has been,or will be: (Check all appropriate boxes.) O Acquired. O Improved. ` O Renovated or rehabilitated. Q Newly constructed. � O , All of such will be done in such a manner as will allow the Facility to be operated in the manner specified in Section 2.03 hereinabove. H. The Facility and the contemplated use thereof will not violate in any material respect any applicable zoning or use statute, ordinance,building code, rule or regulation, or any covenant or agreement of record, relating to the Facility. I. The Project will be performed and completed in compliance with all applicable laws, statutes, rules, ordinances, and regulations issued by any federal, state, or local political subdivisions having jurisdiction over the Facility. J. All applicable licenses, permits and bonds required for the performance and completion of the Project will be obtained in a timely manner. K. It will cause the Faciliry to be operated,maintained, and managed in compliance with, all applicable laws, statutes, rules, ordinances, and regulations issued by any federal, state, or local political subdivisions having jurisdiction over the Facility. L. It has or will hold fee simple tide to the real property upon which the Faciliry will be situated, and has or will obtain any and all easements necessary for the operation, � maintenance and management of the Facility in the manner specified in Section 2.03 hereinabove. M. It will fully enforce the terms and conditions contained in any Use Contracts to which it is a party, to the extent necessary to fully comply with the provisions of this Agreement. N. It will cause the Lessee to fully comply with the matching funds requirement, if any, contained in Section 5.21 hereinbelow. O. It will cause the Lessee to supply or obtain sufficient funds to complete and fully pay for the Project. P. It will use the proceeds of any insurance policies on the Facility in accordance with the provisions contained in Secrion 5.01 hereinbelow. Conswction Grant Agreement for S Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) , �� — � 3�c� � Q. It will use the proceeds of any condemnation of the Facility in accordance with the provisions contained in Section 5.02 hereinbelow. R. It will fully comply with the G.O. Compliance Legislation and the Commissioner's Order. S. It shall furnish such satisfactory evidence regarding the representations and warranties described herein as may be reasonably required and requested in writfng by either the State Entity or the Finance Commissioner. Section 2.05 Event(s) of Default. Any of the following shall, upon either the State Entity or the Finance Commissioner giving the Public Enriry the period of notice thereof which is designated hereinbelow, and the Public Entity's failure to cure during such time period, constitute an Event of Default under this Agreement: A. If the Facility is not completed substantially in accordance with the Plans and Specifications and the Public Entity fails, after One Hundred Eighty (180) days prior written notice, to remedy such failure. B. Subject to any payments which are being contested in good faith, the Public Entity fails, after Ninety (90) days prior written notice, to cause the Lessee to fully and completely pay for the completion of the Project in accordance with the Plans and Specifications. C. If, after Four Hundred Eighty (480) days prior written notice and without the written consent of both the State Entity and the Finance Commissioner and while any G.O. Bonds are outstanding and unpaid,any part of the Facility ceases to be used as «14» D. If, after Ninery (90) days prior written notice and without the written consent of both the State Entity and the Finance Commissioner,the Public Entity sells, transfers,leases, encumbers, or otherwise conveys,in any way or manner,whether voluntary, involuntary, or by action of law, all or any part of its interest in the Facility, or amends or modifies any agreement relating to such sale which had previously been so consented to and approved of by the Finance Commissioner. E. If, after Four Hundred Eighty (480) days prior written notice and without the written waiver of both ihe State Entity and the Finance Commissioner and while any G.O. Bonds are outstanding and unpaid, the Public Entity fails to annually determine that the Facility is being used as «14» as is required under Section 2.03 hereinabove. F. If, after Four Hundred Eighty (480) days prior written notice and without the written waiver of both the State Entity and the Finance Commissioner and while any G.O. Bonds are outstanding and unpaid, the Public Entity fails to annually supply the statement Conswcdon Grant Agreement for 6 , Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnsvctn GA) �l C� - �3�� , required under Section 2.03 hereinabove to both the State Entity and the Finance Commissioner. G. If, after Thirty (30) days prior written notice and without the written waiver of both the State Entity and the Finance Commissioner the Public Entity fails to maintain, or cause to be maintained, fire and extended coverage insurance on the Facility in an amount equal to the full insurable value of the Facility, or, upon writte� consent of the State Entity and the Finance Commissioner, fails to self insure the Facility in such amount. H. If, after Thirty (30) days prior written notice and without the written waiver of ' both the State Entity and the Finance Commissioner the Public Entity fails to use the proceeds of any insurance policies on the Facility in accordance with the provisions contained in Section 5.01 hereinbelow,or fails to cause such insurance proceeds to be so used. I. If, after Thirty (30) days prior written notice and without the written waiver of both the State Entity and the Finance Commissioner the Public Entity fails to use the proceeds of any condemnation of the Facility in accordance with the provisions contained in Section 5.02 hereinbelow,or fails to cause such condemnation proceeds to be so used. J. If the Public Entity, after Ten (10) days prior written notice and upon request, refuses to allow the State Entity, auditors for the State Entity, the Legislative Auditor for the State of Minnesota, or the State Auditor for the State of Minnesota,to inspect,audit, copy,or abstract, any and all of the Public Entity's books, records, papers, or other documents relevant to the Grant, or the Facility. K. If the Public Entity, after ten (10) days prior written notice and while any G.O. Bonds are outstanding and unpaid,refuses to allow the State Endty to inspect the Facility. L. If, after ninety (90) days prior written notice and without the written waiver of both the State Entity and the Finance Commissioner, the Public Entity fails to fully enforce any term or provision contained in a Use Contract to which it is a party to the extent necessary to comply with this Agreement. M. If,after ninety(90)days prior written notice or such other period of notice as may be applicable to the specific default, the Public Entity fails to comply with the G.O. Compliance Legisladon, or the Commissioner's Order. N. If, after thirty (30) days prior written notice the Public Entity, fails to cause the Lessee to fully comply with the matching funds requirements, if any, contained in Section 5.21 hereinbelow. O. If any representation, covenant,or warranty made by the Public Entity hereunder shall prove to have been untrue in any material respect, or materially misleading as of the time such representation,covenant, or wacranty was made. Conswction Grant Agreement for � Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnsvctn GA) . �(.Q - 13l(� ' P. If, after ninety (90) days prior written notice or such other period of notice as may be applicable to the specific default and without the written consent or waiver of both the State Entity and the Finance Commissioner, the Public Entity fails to fully comply with any other provision, term, condition, covenant or warranty contained in this Agreement or any provisions of the Declaration. Section 2.06 Remedies. Upon the occurrence of an Event of Default the Sta'te Entity or the Finance Commissioner may exert any or all of the following remedies. A. The State Entity may refrain from disbursing the proceeds of the Grant. B. The Finance Commissioner, as a third party beneficiary of this Agreement, may demand that a portion of the proceeds of the Grant already disbursed to the Public Entity be returned to the Finance Commissioner, and upon such demand the Public Entity shall return such portion of the proceeds to the Finance Commissioner. The amount to be returned to the Finance Commissioner shall as follows: (1) For the time period starting on the date of this Agreement and terminating on the date which is Five (5) years after the date that the Facility is first open for business to the general public, the amount to be returned to the Finance Commissioner shall be the full amount of all of the proceeds already disbursed. Provided, however, such time period shall not include any time period during which a notice of an event which may become an Event of Default if not cured is outstanding, and such Five(5) year time periods shall be extended for each and every such excluded time period. (2) For the time period starting on the date which is Five(5)years after the date that the Facility is first open for business to the general public and ternrinating Fifteen (15) years thereafter, the amount to be returned to the Finance Commissioner shall be the full amount of all of the proceeds already disbursed reduced by One-Fifteenth (1/15) for each full yeaz which elapses during such time period. Provided, however, such time period shall not include any time period during which a notice of an event which may become an Event of Default if not cu�+ed is outstanding, and such Fifteen year (15) year time period shall be extended for each and ever such excluded time period. (3) If there are no Events of Default during the time periods delineated in Sections 2.06(B)(1)and (2)then the Public Enrity shall not be required to repay any of the proceeds already disbursed. C. Both the State Entity and the Finance Commissioner, as a third party beneficiary of this Agreement, may exert any additional remedies they may have in law or equity; provided that, if the Public Entity has repaid the portion of the Grant in accordance with Cons[ruction Grant Agreement for g Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnstrc[n GA) . a(.��� ► 3�� ' clause B above or the Facility is sold in accordance with Section 3.05 hereof and the sale proceeds are applied as provided in Section 3.06 hereof,then the State Entity and the Finance Commissioner shall not have any further rights or remedies based on an Event of Default. Section 2.07 Notification of Event of Default. The Public Entity shall furnish to both the State Entity and the Finance Commissioner, as soon as possible and in any event within Thirty (30) days after it has obtained knowledge of the occurrence of each Event of`befault, or each event which with the giving of notice or lapse of time or both would constitute an Event of Default, a statement setting forth details of each Event of Default,or event which with the giving of notice or upon the lapse of time or both would constitute an Event of Default, and the action which the Public Entity proposes to take with respect thereto. Section 2.08 Termination of Grant and Grant Agreement. If the Project is not started on or before the 31 st day of December, 1997,or such later date as the Public Entity and the State Entity may agree to in writing, then; (i) the State Entity's obligation to make the Grant shall terminate, and (ii)if none o€the Grant has been disbursed then this Agreement shall terminate and no longer be of any force or effect. This Agreement shall also terminate and no longer be of any force or effect upon the sale of the Facility in accordance with the provisions contained in Section 3.05 hereinbelow, and transmittal of all or a portion of the proceeds of such sale to the Finance Commissioner in compliance with the provisions contained in Section 3.06 hereinbelow. Section 2.09 Effect of Event of Default. If an Event of Default occurs and the Public Entity is required to and does return the amount specified in Section 2.06.B hereinabove to the Finance Commissioner,then the following shall occur. A. The Finance Commissioner shall, as soon as legally possible, use such amount to redeem the G.O. Bonds. B. The provisions, covenants, representations and/or warranties contained in Sections 2.03, 2.04.G through 2.04.0, 2.OS.A through 2.OS.C, 2.OS.E., 2.OS.F, 2.OS.K, 2.OS.L, 2.OS.N, 2.06.B, 3.03, 3.04, 3.OS.A, 4.01, 4.02, 5.04, 5.06 through 5.09, and 5.21, herein shall ternunate and no longer be of any force or effect; provided that all other Sections and provisions contained in this Agreement shall survive and remain in full force and effect. C. The amount returned by the Public Entity shall be credited against any amount which shall be due to the Finance Commissioner under Section 3.06 hereinbelow, and against any amount that becomes due and payable because of any other Event of Default. Article III COMPLIANCE WITH G.O. COMPLIANCE LEGISLATION Conswction Grant Agreement for 9 Ver- 10/24/96 Science Museum of Minnesoca Project (SMM Cnsvcm GA) . ��- �3�4 � AND THE COMMISSIONER'S ORDER Section 3.01 State Bond Financed Property. The Public Entity and the State Entity acknowledge and agree that the Facility is "state bond financed property", as such term is used in the G.O. Compliance Legislation and the Commissioner's Order, and, therefore, the provisions contained in such statute and order apply to the Facility and any Use Contracts �lating thereto. Section 3.02 Preservation of Tax Exempt Status. In order to pres�rve the tax exempt status of the G.O. Bonds, the Public Entity agrees that during the time period that any G.O. Bonds are outstanding and unpaid: A. It will not use the Facility,or use or invest any proceeds of the Grant or any other sums treated as "bond proceeds" under § 148 of the IRS Code including "investment . proceeds," "invested sinking funds," and "replacement proceeds," in such a manner as to cause the G.O. Bonds to be classified as "arbitrage bonds" under§ 148 of the IRS Code; B. It will deposit and hold any and all proceeds of the Grant which it receives under this Agreement into a segregated non-interest bearing account until such funds are used for payments for the Project in accordance with the provisions contained herein. C. It will, upon written request, provide the Finance Commissioner any and all information required to satisfy the informational requirements set forth in the IRS Code including, but not limited to, §§ 103 and 148 thereof; D. It will, upon direction from the Finance Commissioner, take such actibns and furnish such documents as the Finance Commissioner determines to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal taxation, which such action may include either; (i) compliance with proceedings intended to classify the G.O. Bonds as a "qualified bond" within the meaning of IRC § 141(e), (ii) changing the nature and/or terms of any Service Contract so that it complies with Revenue Procedure 93-19, or (iii) compliance with Internal Revenue Code provisions, regulations, or revenue procedures which amend or supersede the foregoing. The State Entity acknowledges that the Public Entity will be entering into a long term Use Contract with an entity that is an organization described in Section 501(c)(3) of the Internal Revenue Service Code, and that such Use Contract will not comply with Revenue Procedure 93-19. The State Entity further acknowledges that it may need to take some action to preserve the tax exempt status of the General Obligation Bonds, including, if appropriate, qualifying a portion of the General Obligation Bonds as qualified 501(c)(3)bonds under Section 141(e) of the Internal Revenue Service Code. E. It will not otherwise use any of the proceeds of the Grant, including earnings thereon, if any, or take, or permit to or cause to be taken, any action that would adversely Conswcuon Grant Agreement for 1� Ver- ]0/24/96 Science Museum of Minnesota Project (SMM Cnsvctn GA) a(�- i 3�c� � affect the exemption from federal income taxation of the G.O. Bonds, nor otherwise omit, take or cause to be taken any action necessary to maintain such tax exempt status, and if it should take, permit, omit to take, or cause to be taken, as appropriate, any such action, it shall take all lawful actions necessary to rescind or correct such actions or omissions, promptly upon having knowledge thereof. Section 3.03 Use Contracts. Each and every Use Contract which the PGblic Entity enters into must comply with the following�quirements: A. It must contain a provision delineating the statutory authority under which the ' Public Entity is entering into and executing the Use Contract, and must comply with the substantive and procedural provisions of such statute. B. It must contain a provision stating that the Use Contract is being executed and entered into in order to carry out a specific govemmental purpose, and must delineate such governmental purpose. C. It must be for a term, including any renewals that are solely at the option of the Lessee, that is substantially less than the useful life of the Facility, but may allow for renewals beyond the original term upon a determination by the Public Entity that the use continues to carry out a specific governmental purpose, and must delineate such governmental purpose. A term which is equal to or shorter than fifty percent (50%) of the useful life of the Facility will meet the requirement that it be for a time period which is substantially shorter than the useful life of the Facility. D. It must contain a provision which will provide for oversight by the Public Entity. Such oversight may be accomplished by way of a provision that will require the Lessee to provide to the Public Entity; (i) an initial program evaluation report, and (ii) a program budget, at least annually, showing forecast program revenues and expenses for the next fiscal year. E. It must allow for termination by the Public Entity in the event of a default thereunder by the L.essee,or in the event that the governmental puipose delineated in the Use Contract is terminated or changed. F. It must require the I.essee to pay all costs of operation and maintenance of the Facility, unless the Public Entity is authorized by law to pay such costs and agrees to pay such costs. G. If any monies are to be paid to the Public Entity under the Use Contract, then it must contain a provision requiring that each and every party thereto shall, upon direction by the Finance Commissioner, take such actions and furnish such documents to the Finance Construction Grant Agreement for 11 Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnsactn GA) . �(�- i3�?� ' Commissioner as it deternunes to be necessary to ensure that the interest to be paid on the G.O. Bonds is exempt from federal income taxation. H. It must be approved,in writing, by the Finance Commissioner, and any proposed Use Convact which is not approved, in writing, by the Finance Commissioner shall be null and void and of no force or effect. I. If the amount of the Grant exceeds Two Hundred Thousand and No/�00 Dollars ($200,040.00), then it must contain a pmvision requiring the Lessee, for one year from the date of the Use Contract,to list any vacant or new positions it may have with job services of the Commissioner of Economic Security for the State of Minnesota,or the local service units, as required by Minn. Stat. § 268.66 Subd. 1 (1994), as such may subsequently be amended, modified or replaced. � Section 3.04 Receipt of Monies Under a Use Contract. If the Public Entity receives any monies under a Use Contract while any G.O. Bonds are outstanding, then a portion of such monies in excess of the amount the Public Entity needs, and is authorized to use,to pay the operating expenses of the Facility, or to pay the principal, interest, redemption premiums, and other expenses on debt related to the Facility, other than the debt on the G.O. Bonds and debt for which the Public Entity has no financial liability, must be paid by the Public Entity to the Finance Commissioner. The portion of such excess monies that the Public Entity shall pay to the Finance Commissioner shall be determined and established by the Finance Commissioner, and, absent circumstances which would indicate otherwise, such portion shall be determined by multiplying such excess amount by a fraction the numerator of which is the amount of G.O. Bonds, and the denominator of which is the total principal amount of all public debt financing incurred with respect to the Facility other than public debt issued by a public entity for which it has no financial liability. Section 3.05 Sale of Facility. The Public Entity may not, and shall not, sell the Facility unless all of the following provisions have been fully complied with. A. The Public Entity deternunes, by official action, that it is no longer usable or needed as «14» , B. The sale is made as authorized by law. C. The sale is for Fair Mazket Value. D. The written consent of the Finance Commissioner has been obtained. The Finance Commissioner shall not unreasonably withhold consent for any sale which otherwise complies with the provisions of this Section 3.05. The acquisition of the Facility at a foreclosure sale, acceptance of a deed-in-lieu of foreclosure for the Facility, and/or enforcement of a security interest in personal property used in the operation of the Facility, by a lender that has provided monies for the acquisition or betterment Construction Grant Agreement for 12 Ver - 10/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) .- 9C� - I 3�(� - of the Facility shall not be considered a sale of the Facility for the purposes of this Agreement if after its acquisition of the Facility such lender operates the Facility in a manner which is not inconsistent with the governmental program specified in Section 2.03 hereinabove and such lender uses its best efforts to sell the Facility to a third party for Fair Market Value. The ultimate sale and/or disposition of the Facility by the lender shall be deemed to be a sale of the Facility for the purposes of this Agreement, and the proceeds thereof shall be disbursed in accordan`ce with the provisions contained in Section 3.06 hereinbelow. - Section 3.06 Proceeds of a Sale. tipon the sale of the Facility the net proceeds thereof ' shall be disbursed in the following manner and order. A. The first distribution from such net proceeds shall be to the Finance Commissioner in an amount equal to the amount of the Grant, and if the amount of such net proceeds shall be less than the amount of the Grant then all of such net proceeds shall be distributed to the Finance Commissioner. B. The remaining portion of such net proceeds, after the distribution specified in Section 3.06.A hereinabove, shall be distributed to pay in full any outstanding public or private debt incurred to acquire or better the Faciliry. C. The remaining portion of such net proceeds, after the distributions specified in Sections 3.06.A &B hereinabove, shall be divided and distributed in proportion to the shares contributed to the acquisition or betterment of the Facilities by public and private entities, including the State Entity but not including any private entity that has been paid in full, that supplied funds in either real monies or like kind contributions for such acquisition and betterment, and the State Entity's distribution shall be made to the Finance Commissioner. Such public and private entities may agree amongst themselves as to any redistribution of such distributed funds. The Public Entity shall not be required to pay or reimburse the State Entity for any funds above and beyond the full net proceeds of such sale, even if such net proceeds are less than the amount of the Grant,and are insufficient to redeem or defease the outstanding G.O. Bonds. Secrion 3.07 Changes to G.O. Compliance Legislation or the Commissioner's Order. In the event that the G.O. Compliance Legislation and/or the Commissioner's Order are amended in a manner which reduces any requirement imposed against the Public Entity, or if the Facility is exempted from the G.O. Compliance L,egislation and the Commissioner's Order,then the State Entity shall, upon written request by the Public Entity,enter into and execute an amendment to this Agreement to implement herein such amendment to, or exempt the Facility from,the G.O. Compliance Legislation or the Commissioner's Order. � Article IV Conswction Grant Agreement for 13 Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnstrcm GA) - q(�� i 3�c� DISBURSEMENT OF GRANT PROCEEDS Section 4.01 Disbursement of Grant. Upon compliance with the conditions delineated in Section 4.02 hereinbelow, the State Entity shall disburse the proceeds of the Grant to the Public Entity or its designee in accordance with the provisions contained in the Disbursement Agreement. Section 4.02 Condition Precedent to Disbursement of Grant. The o6ligation of the State Entity to disburse the proceeds of the Grant to the Public Entity or its designee is subject to the condition precedent that the State Entiry shall have received the following on or before the date of the initial disbursement: � A. The Declaration duly executed by the Public Enrity. B. Evidence that; (i) the Project will be completed in a manner that will allow the Facility to be operated in the manner specified in Section 2.03 hereinabove, and (ii) all applicable and required building pernuts and other permits for such completion of the Project have been obtained, excluding any pernvts which cannot legally be obtained until a future date. C. Evidence that the Facility and the contemplated use thereof are permitted by and will comply with all applicable use or other restrictions and requirements imposed by applicable zoning ordinances or regulations, and have been duly approved by the applicable municipal or governmental authorities having jurisdiction. D. Evidence that sufficient monies are available to pay for the completion of the Project, along with any other expenses that may occur in conjunction therewith. E. Evidence that all applicable licenses, permits, and bonds required for the performance and completion of the Project have been obtained, excluding any permits, licenses and bonds which cannot be legally obtained until a future date. F. Evidence that the Public Endty has fee simple tide to the�al property upon which the Facility is, or will be, situated. . G. Evidence that the policies of insurance required under Section 5.01 hereinbelow are in full force and effect. H. Evidence of compliance with the provisions and requirements specified in Section 5.09 hereinbelow, and any and all additional applicable provisions and requirements contained in Minn. Stat. § 16B.335 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced. I. Evidence that there is a plan and sufficient funds are available to fund the program which will be operated in the Faciliry. Consuvcuon Grant Agreement for 14 Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnsvcm GA) . Q� - �3-�� • J. Evidence that matching funds requirements, if any, contained in Section 5.21 hereinbelow have been complied with. K. In addition to the items required under Sections 4.02.A through J hereinabove, those items which are required under the provisions of the Disbursement Agreement. Article V MISCELLANEOUS ` Section 5.01 Insurance. The Public Entity shall maintain, or cause to be maintained, builders risk insurance and standard fue and extended coverage insurance on the Facility in an amount equal to the full insurable value thereof, and shall name the State Entity as loss payee thereunder. If the Public Entity elects to maintain general comprehensive liability insurance on the Facility,then the Public Entity shall have the Finance Commissioner named as an additional narned insured therein. At the written request of either the State Entity or the Finance Commissioner,the Public Encity shall promptly furnish to the requesting entity all written notices and all paid premium receipts received by the Public Entity regarding such required insurance, or certificates of insurance evidencing the existence of such required insurance. If damages which are covered by the insurance required hereinabove occurs to the Facility, then the Public Entity shall, at its sole option and discretion, either(i) use the insurance proceeds, or cause the insurance proceeds to be used, to fully or partially repair such damage and to provide, or cause to be provided, whatever additional funds which may be needed to fully or partially repair such damage, or (ii) sell the damaged Facility in accordance with the provisions contained in Section 3.05 hereinabove. If the Public Entity elects to only pactially repair such damage,then the portion of the insurance proceeds which a�+e not used for such repair shall be applied in accordance with the provisions contained in Section 3.06 hereinbelow as if the Facility had been sold, and such amounts shall be credited against the amounts due and owing under Section 3.06 upon the ultimate sale of the Facility. If the Public Entity elects to sell the damaged Facility,then such sale must occur within a reasonable time period from the date the damage occuired and the cumulative sum of the insurance proceeds plus the proceeds of such sale must be applied in accordance with the provisions contained in Section 3.06 hereinabove,with the insurance proceeds being so applied within a reasonable time period from the d.ate they are received by the Public Entity. Section 5.02 Condemnation. If all or any portion of the Facility is condemned,then the Public Entity shall, at its sole option and discretion, either(i) use the condemnation proceeds, or cause the condemnation proceeds to be used,to fully or partially restore the Facility and to provide, or cause to be provided, whatever additional funds which may be needed to fully partially restore tfie Facility, or (ii) sell the remaining portion of the Facility in accordance with the provisions contained in Section 3.05 hereinabove. If the Public Entity elects to only partially restore the Conswction Grant Agreeroent for 1$ Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) � �f�- I 3�(� � Facility, then the portion of the condemnation proceeds which are not used for such restoration shall be applied in accordance with the provisions contained in Section 3.06 hereinbelow as if the Facility had been sold, and such amounts shall be credited against the amounts due and owing under Section 3.06 upon the ultimate sale of the Facility. If the Public Entity elects to sell the remaining portion of the Facility, then such sale must occur within a reasonable time period from the date the condemnation occurred and the cumulative sum of the condemnation proc�eds plus the proceeds of such sale must be applied in accordance with the provisions contained in Section 3.06 hereinabove, with the condemnation proceeds being so applied within a reasonable time period � from the date they ar�e received by the Public Entiry. Section 5.03 Reco�ds Keeping and Reporting. The Public Entity shall maintain, or . cause to be maintained, books, records, documents and other evidence pertaining to the costs or expenses associated with the completion of the Project and operation of the Facility, and compliance with the requirements contained in this Agreement, the Declaration, the G.O. Compliance Legislation, and the Commissioner s Order,and upon request shall allow, or cause the entity which is maintaining such items to allow, the State Entity, auditors for the State Entity, and either the Legislative Auditor for the State of Minnesota or the State Auditor for the State of Minnesota, whichever is applicable, to inspect, audit, copy, or abstract, any and all of its books, records, papers, or other documents relevant to the Grant. The Public Entity shall use, or cause the entity which is maintaining such books and records to use, generally accepted accounting principles in the maintenance of such books and records, and shall retain, or cause to be retained, all of such books, records, documents and other evidence for a period of five (5) years from the date that the Facility is fully completed and placed into operation. Section 5.04 Inspection of Facility. The Public Entity shall, upon request, allow, and will require any entity to whom it leases any portion of the Facility to allow, the State Entity to inspect the Facility. Section 5.05 Data Practices. The Public Entity ag�es, with respect to any data which it possesses regarding the Grant,the Project, or the Facility,to comply with all of the provisions and restrictions contained in the Minnesota Govemment Data Practices Act contained in Chapter 13 of the Minnesota Statutes, as such may be amended, modified or replaced. The Public Entity further agrees to indemnify, save, and fiold the State Entity, the Finance Commissioner, and the State of Minnesota, their agents and employees, harmless from all claims arising out of,resulting from,or in any manner attributable to any violation of any provision of the Minnesota Government Data Practices Act, including legal fees and disbursements paid or incurred to enforce the provisions contained in this Section. Conswction Grant Agreement for 1 f) Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) _ � Qc�— � 3�c� Section 5.06 Non-Discrimination. The Public Entity agrees to not engage in discriminatory employment practices in the completion of the Project, or operation and/or management of the Facility, and it shall,with respect to such activities, fuily comply with all of the provisions contained in Minn. Stat. §§ 363.03 & 181.59 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced. Section 5.07 Worker's Compensation. The Public Entity agrees to fully �omply with all of the provisions relating to worker's compensation contained in Minn. Stat. §§ 176.181 Subd. 2 & 176.182 (1994& 1995 Supp.), as such may subsequendy be amended, modified or replaced, ' with respect to the complerion of the Project, and the operation and/or management of the Facility. Section 5.08� Antitrust Claims. The Public Entity hereby assigns to the State Entity and the Finance Commissioner any and all claims it may have for over charges as to goods and/or services provided in its completion of the Project, and operation andlor management of the Facility, which arise under the antitrust laws of the State of Minnesota or of the United States of America. Section 5.09 Review of Plans and Cost Estimates. The Public Entity and the State Entity agree to comply with all of the applicable provisions and requirements contained in Minn. Stat. § 16B.335 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced, for the Project,and in accordance therewith the Public Entity and the State Entity agree to comply with the following provisions and requirements. A. The Public Entity shall provide any and all information which the State Entity may request in order for the State Entity to determine that the Project will comply with the provisions and requirements contained in Minn. Stat. § 16B.335 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced. B. The Public Entity shall, prior to its proceeding with design activities for the Project, prepare a predesign package and submit it to the Comrnissioner of Administration for the State of Minnesota for review and c.omment. Such predesign package must be sufficient to define the scope, cost, and pmjected schedule for ttie Pmject, and must demonstrate that the Project has been analyzed according to appropriate space and needs standazds. Any substantial changes to such predesign package must be submitted to the Commissioner of Administration for the State of Minnesota for review and comment. C. If the Project includes the construction of a new building, substantial alteration of the exterior dimensions or interior configuration of an existing building, or the acquisition of land, then the Public Entity shall not prepare final plans and specifications until it has prepared a program plan and cost estimates for all elements necessary to complete the Project and presented them to the Chairs of the Minnesota State Senate Finance Committee and Minnesota House of Representatives Ways and Means Committee and such chairs have made Conswction Grant Agreement for 1'] Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnstrcm GA) _ q� - 13--1� � their recommendations, and it has noti�ed the Chair of the Minnesota House of Representatives Capital Investment Committee. Such program plan and cost estimates must note any significant changes in the work to be performed on the Project, or in its costs, which have arisen since the appropriation for the Project was enacted or which differ from any predesign submittal. Provided, however, the provisions and requirements contained in this Secfion 5.09.0 shall not apply to the construction, renovation, or improvements to dams, highway rest areas, truck stations, storage facilities not consisting primarily of offices or heated work areas, trails, bike paths, sewer sepazation projects, water and wastewater facilities, � campgrounds, roads, bridges, or any other capital project with a constructi0n cost of less than Two Hundred Thousand and�No/100 Dollars ($200,000.00). D. The Public Entity must notify the Chairs of the Minnesota State Senate Finance Comrnittee,the Minnesota House of Representatives Capital Investment Committee and the Minnesota House of Representatives Ways and Means Committee of any significant changes to the program plan and cost estimates referred to in Section 5.09.0 hereinabove. E. The program plan and cost estimates referred to in Section 5.09.0 hereinabove must ensure that the Project will comply with all applicable energy conservation standards contained in law, including Minn. Stat. §§ 216C.19 to 216C.21 (1994 & 1995 Supp.), as such may subsequently be amended, modified or replaced. F. If any of the proceeds of the Grant are to be used for the construction or remodeling of the Facility, then both the predesign package referred to in Section 5.09.B hereinabove and the program plan and cost estimates referred to in Section 5.09.0 hereinabove must include provisions for cost-effective information technology investrnents that will enable the occupant of the Facility to reduce its need for office space,provide more of its services electronically, and decentralize its operations where such provisions are deemed necessary by the Information Policy Office of the DepaRment of Administration for the State of Minnesota. G. If the Project does not involve the construction of a new building,the substantial alteration of the exterior dimensions or interior configuration of an existing building, or the acquisition of land, then prior to beginning work on the Project the Public Entity.shall just notify the Chairs of the Minnesota State Senate Finance Committee,the Minnesota House of Representatives Capital Investment Committee and the Minnesota House of Representarives Ways and Means Committee that the work to be perfornied is ready to begin. _ H. The Project must be; (i)completed in accordance with the program plan and cost estimates referred to in Section 5.09.0 hereinabove, (ii) completed in accordance with the Conswction Grant Agreement for 1 g . Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) - �(.�- ►3�� . time schedule contained in the program plan refecred to in Section 5.09.0 hereinabove, and (iii) completed within the budgets contained in the cost estimates referred to in Section 5.09.0 hereinabove. I. The proceeds of the Grant will not be disbursed until (i) the predesign package referred to in Section 5.09.B hereinabove has been reviewed by and received a favorable recommendation from the Commissioner of Administration for the State of M�nnesota, (ii) the program plan and cost estimates referred to in Section 5.09.0 hereinabove have received a recommendation by the Chairs of the Minnesota State Senate Finance Committee and ' Minnesota House of Representatives Ways and Means Committee, and (iii)the Chair of the Minnesota House of Representatives Capital Investment Committee has been notified pursuant to Section 5.09.G hereinabove. Section 5.10 Prevailing Wages. The Public Entity agrees to comply with all of the applicable provisions contained in Chapter 177 of the Minnesota Statutes, and specifically those provisions contained in Minn. Stat. §§ 177.41 through 177.43 (1994), as such may subsequently be amended, modified or replaced. Section 5.11 Liability. The Public Entity and the State Entity do both agree that they will be responsible for their own acts and the results thereof to the extent authorized by law, and they shall not be responsible for the acts of the other party and the results thereof. The Public Entity acknowledges and agrees that the liability of both the State Entity and the Finance Commissioner is governed by the provisions contained in Minn. Stat. § 3.736 (1994), as such may subsequently be arnended, modified or replaced. Section 5.12 Relationship of the Parties. Nothing contained in this Agreement is intended or should be construed in any manner as creating or establishing the relationship of co- partners or a joint venture between the Public Entity, the State Entity, or the Finance Commissioner, nor shall the Public Entity be considered or deemed to be an agent, representative, or employee of either the State Entity,the Finance Commissioner, or the State of Minnesota in the performance of this Agreement,the completion of the Project,or operation of the Faciliry. The Public Entity represents that it has already secured, or will secure or cause to be secured, all personnel and/or persons required for the perforinance of this Agreement and the completion of the Project. Any and all personnel of the Public Entity, or other persons, while engaging in the performance of this Agreement,the completion of the Project,or the operation and/or maintenance of the Facility, shall not have any contractual relationship with either the State Entiry,the Finance Commissioner, or the State of Minnesota, and shall not be considered employees of any of such entities. In addition,any and all claims that may or might arise on behalf of said personnel or other persons while so engaged arising out of employment, or alleged employment, including, but not Construction Grant Agreement for 19 Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnsvctn GA) � �I�-�3-�� . limited to, claims under the Workers' Compensation Act of the State of Minnesota, claims of discrimination against the Public Entity, its officers, agents, contractors, or employees shall in no way be the responsibility of either the State Entity, the Finance Commissioner, or the State of Minnesota. Such personnel or other persons shall not require nor be entitled to any compensation, rights or benefits of any kind whatsoever from either the State Entity, the Finance Commissioner, or the State of Minnesota, including, but not limited to, tenure rights, medical and hZSspital care, sick and vacation leave, Workers' Compensation, Unemployment Compensation, disability benefits, severance pay and retirement benefits. Section 5.13 Notices. In addition to any notice required under applicable law to be given in another manner, any notices required hereunder must be in writing, and shall be sufficient if personally served or sent by prepaid, registered, or certified mail (return receipt requested), to the business address of the party to whom it is directed. Such business address shall be that address specified hereinbelow, or such different address as may hereafter be specified, by either party by written notice to the other: To the Public Entity at: «16» «16» «16» , MN «16» Attention: «l E» To the State Entiry at: «17» «17» «17» , MN « 7» Attention: «17» To the Finance Commissioner at: Minnesota Department of Finance 400 Centennial Office Bldg. 658 Cedar St. St. Paul, MN 55155 Attention: Peter Sausen-Assistant Commissioner Section 5.14 Assignment or Modification. This Agreement and the Declaration shall be binding upon and inure to the benefit of the Public Entity and the State Entity, and their respective successors and assigns. Provided, however,that neither the Public Entity nor the State Entity may assian any of its rights or obligations under this Agreement or the Declaration without the prior written consent of the other party. No change or modification of the terms or provisions of this Agreement or Declaration shall be binding on either the Public Entity or the State Entity unless such change or modification is in writing and signed by an authorized official of the party against which such change or modification is to be imposed. Conswction Grant Agreement for 2� Ver - 10/24/96 Science Museum of Minnesota Project (SMM Cnsvctn GA) � �(�- i 3�(� Section 5.15 Waiver. Neither the failure by the Public Entity, the State Entity, or the Finance Commissioner, as a third party beneficiary of this Agreement, in any one or more instances, to insist upon the complete and total observance or performance of any term or provision hereof, nor the failure of the Public Entity, the State Entity, or the Finance Commissioner, as a third party beneficiary of this Agreement, to exercise any right, privilege, or remedy conferred hereunder, or afforded by law,shall be construed as waiving any breach of such term, provision,or the right to exercise such right,privilege, or remedy thereafter. In addition, no delay on the part of either the Public Entity, the State Entity, or the Finance Commissioner, as a third party beneficiary of this Agreement,in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude other or further exercise thereof, or the�exercise of any other right or remedy. Section 5.16 Entire Agreement. This Agreement, the Declaration, the Disbursement Agreement and the Predesign Grant Agreement embody the entire agreement between the Public Entity and the State Entiry, and there are no other agreements, either oral or written, between the Public Entiry and the State Enrity on the subject matter hereof. Section 5.17 Choice of Law and Venue. All matters, whether sounding in tort or in contract, relating to the validity, construction, performance, or enforcement of this Agreement or the Declaration shall be controlled by and deternuned in accordance with the laws of the State of Minnesota. Public Entity agrees and consents that all legal actions initiated with respect to or arising from any provision contained in this Agreement shall be initiated, filed and venued in the State of Minnesota District Court located in the City of St. Paul, County of Ramsey, State of Minnesota. Section 5.18 Severability. If any term or provision of this Agreement is finally judged by any court to be invalid, the remaining terms and provisions shall remain in full force and effect, and they shall be interpreted, performed, and enforced as if said invalid provision did not appear herein. . Section 5.19 Time of Essence. Time is of the essence with respect to all of the matters contained in this Agreement. Secrion 5.20 Counterparts. This Agreement may be executed in any number of counterparts,�each of which, when so executed and delivered, shall be an original, but such counterparts shall together constitute one and the same instrument. Section 5.21 Matching Funds. The Public Entity must provide evidence that the following matching funds have been obtained for the completion of the Project: (If there are no matching funds requirements then insert the word "NONE".) «18» Conswcuon Grant Agreement for 21 Ver - 10/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) � �(�- i 3�� Any and all matching funds which are intended to meet the above delineated requifements must either be in the form of (i) cash monies, (ii) legally binding commitments for monies, or (iii) equivalent funds or contributions, including equity,which have been, or will be, used to complete and/or pay for the Project. Section 5.22 Third-Party Beneficiary. The Public Entity and the State Entity agree that the public program to be operated in conjunction with the Facility will benefit the State of Minnesota, and the provisions and requirements contained herein are for the benefit of both the State Entity and the State of Minnesota. Therefore such entities acknowledge and agree that the State of Minnesota, by and through its Commissioner of Finance, is and shall be a third-party beneficiary of this Agreement. Section 5.23 Additional Requirements. The Public Entity and the State Entity agree to comply with the following additional requirements. (If there are no additional requirements then insert the word "NONE".) A. The Public Entity's sale, transfer, lease, encumbrance, or conveyance, in any way or manner, whether voluntary, involuntary, or by action of law, of all or any part of its interest in the Facility, with the written consent of both the State Entity and the Finance Commissioner, or its amendment or modification, with the written consent of both the State Entity and the Finance Commissioner, of any agreement relating to such sale which had previously been so consented to and approved of by the Finance Commissioner, shall not be an Event of Default under this Agreement. B. If the Public Entity has failed to comply with one or more of the requirements contained in §§ 2.OS.C, E, and F herein and sells the Facility in accordance with the provisions contained in Section 3.05 herein during the cure period specified in such sections or any extensions thereto granted by the State, then this Agreement shall terminate in accordance with the provisions contained in Section 2.08 herein and the maximum amount that the Public Entity shall be required to pay or reimburse the State is the full amount of the � net proceeds of such sale even if such net proceeds are less than the amount of the Grant and are insufficient to redeem or defease the outstanding G.O. Bonds. Conswction Grant Agreement for 22 Ver - ]0/24/96 Science Museum of Minnesota Project (SMM Cnstrctn GA) �� q(�-�3�� - C. The Public Entity shall not be in default of this Agreement as long as it operates the Facility, or causes the Facility to be operated for the use specified in Section 2.03 hereinabove,or for such other public use as the legislatu�may from time to time designate. D. Any tasks herein which are imposed upon the Public Entiry rr►ay be performed by such other entity as the Public Entity may select or designate. E. The State Entity and the Finance Commissioner shall consent to any�sale of the Facility which is for Fair Market Value if the Public Entity provides the State Entity and the Finance Commissioner with evidence that the Public Entity has satisfied the following ' conditions: (1). The Public Entity (i) received and reviewed the initial plan and budget for the Facility from the Lessee, and (ii) met with the Lessee to review and discuss the Public Entity's written recommendations, if any, for changes to the initial plan and budget; and (2). During each year of the term of the Use Contract, the Public Entity (i) received the Annual Report required by the Use Contract,and (ii) met with the Lessee to review and discuss the Public Entity's written recommendations, if any, for changes to the Aru�ual Report;and (3). The Public Entity (i) received a written report from an independent consultant retained to make recommendations with respect to programs, rates, fees, chazges, methods of operation and other factors affecting the Facility, (ii) the council which overviews and controls the operation of the Public Entity adopted written findings with respect to the desirabiliry of implementing any of the recommendations of the independent consultant, and(ui) met with the Lessee to review and discuss both the Public Entity's written findings and the report and recommendations of the independent consultant;and (4). The council which overviews and controls the operation of the Public Entity adopted a resolution finding that the Faciliry is no longer usable or needed as a Science Museum, which finding may be based on a determination that the Facility is no longer financially viable as a Science Museum; provided further that, as long as the Public Entity is using all reasonable effort to sell the Facility, the State Entity shall not exercise any of its remedies under Section 2.06.(B) hereof or Section 4.02. of the Predesign Grant Agreement while the sale of the Facility is pending; provided further that, if the Faciliry has not been sold within Four(4) years from the date of adoption of the resolution refened to in Section 5.23.E.(4) hereinabove, then the Public Entity shall sell the Facility at a public auction. Nothing herein shall prohibit the Public Conswction Grant Agreement for 23 Ver- 10/24/96 Science Museum ot Minnesota Project (SMM Cnsvctn GA) - 4(�- � 3�(� � Entity from bidding for the Facility at any such public auction, or from conducting a public auction prior to the expiration of the Four(4)year period. F. The State Entity acknowledges that a parking ramp will be constructed by the Lessee to service visitors of the Facility (hereinafter referred to as the "Parking Ramp"), and that the Disbursing Agreement has or will include a provision to the effect that none of the proceeds of the Grant will be disbursed to construct or equip the Parking Ramp. Consequently,the Pa�rking Ramp and the land on which it is constructed (hereinafter referred to as the "Parking Ramp Parcel") will not be subject to the provisions of the G.O. Compliance Legislation or the Commissioners Order as long as none of the proceeds of�the Grant are used to construct or equip the Parking Ramp. In the event that the Parking Ramp Parcel is not a separate legal parcel at the time the Declaration is executed, or if the legal description of the Pazking Ramp Parcel is amended at a later date,then the State agrees that it will execute an amendment to the Declaration releasing any real estate that is a part of the Par}:ing Ramp Pazcel from the Declazation upon receipt of evidence reasonably satisfactory to the State that (i) none of the proceeds of the Grant were spent for the construction or equipping of the Parking Ramp, and (ii) while any G.O. Bonds remain outstanding, the pazking spaces in the Parking Ramp will be available first to serve visitors of the Facility. (THE REMAINING PORTION OF THIS PAGE WAS INTENTIONALLY LEFT BLANK) Conswciion Grant Agreement for 24 Ver- 10/24/96 Science Museum of Minnesota Project (SMM Cnsvc[n GA) - � qt�— i3�c� - IN TESTIMONY HEREOF, the Public Entity and the State Entity have executed this Grant Agreement on the day and date indicated immediately below their respective signatures. PUBLIC ENTITY: K3» , a «4» � By: «20» Its: • «21» ' And: «22» Its: «23» STATE ENTITY: «5» , By: «24» Its: «25» Approved as to form and execution: Assistant Attorney General Approved by Department of Finance Construction Grant Agreement for 2$ Ver- 10/24/96 Science Museum of Minnesota Project ' (SMM Cnstrcm GA) � q�_ �3�� • Attachment A DECLARATION The undersigned, as owner of fee title to the real property legally described on Exhibit A, which is attached hereto and made a part hereof ("Property"), hereby declares that title to the Property is hereby subject to the following restriction: ` . The Property is bond financed property within the meaning of Minn. Stat. § 16A.695, and cannot be sold, mortgaged or otherwise disposed of by the public o�cer or agency which has jurisdiction over it or owns it without the approval of the Minnesota Commissioner of Finance, approval must be evidenced by a written statement signed by the Commissioner of Finance and attached to the deed, mortgage or instrument used to sell, mortgage or otherwise dispose of the Property. Title to the Property shall remain subject to this restriction until; (i) the restriction has been fully complied with as evidenced by a written approval from the Minnesota Commissioner of Finance, or (ii) a written release, releasing the Property from the restriction, signed by the Minnesota Commissioner of Finance, is recorded in the r�al estate records relating to the Property. (SIGNATURE BLOCK AND ACKNOWLEDGMENT) This Declaration was drafted by: (Name and address of individual that drafted the Declaration.) Conswction Grant Agreement for 2fi Ver - 10/24/96 Science Museum of Minnesota Project (SMM Cnsvctn GA) ` � � , 9�-�� �� � C/�r�,��� � A � �� ������ �� "` DEVELOPMENT AGREEMENT BY AND BETWEEN CITY OF SAINT PAIIL, MINNESOTA AND TSE SCIENCE MIISEUM OF MINNESOTA TIiIS DOCUMENT WAS DRAFTED BY: Briggs aad Morgan, Professional Association (b�) 2200 West First Natioaal Bank Buildiag St. Paul, bII�i. 55102 (612) 223-6600 331479.9 � _ �-i3 �� < < , . 9 r , TABLE OF CONTENTS Pacre ARTICLE I - DEFINITIONS . . . . . . . . . . . . . . . . . . . 5 Section 1 . 1 . Definitions . . . . . . . . . . . . . . . 5 Section 1 .2 . Exhibits . . . . . . . . . . . . . . . . 9 ARTICLE II - REPRESENTATIONS AND WARRANTIES . . . . . . . . . 11 Section 2 .1 . Representations and Warranties of the City . . . . . . . . . . . . . . . . . . 11 Section 2 . 2 . Representations and Warranties of SMM . . 12 ARTICLE III - OBLIGATIONS OF THE CITY . . . . . . . . . . . . 13 Section 3 . 1 . Land Acquisition and Clearing . . . . . . 13 Section 3 .2 . City Contribution . . . . . . . . . . . . 17 Section 3 .3 . Eagle Parkway Improvements . . . . . . . 17 Section 3 .4 . Payment or Release of City Contribution . 19 Section 3 .5 . City Options for Financing . . . . . . . 22 Section 3 . 6 . Conduit Revenue Bonds . . . . . . . . . . 23 Section 3 . 7 . Shepard Road . . . . . . . . . . . . . . 23 ARTICLE IV - SMM UNDERTAKINGS . . . . . . . . . . . . . . . . 24 Section 4 . 1 . Museum Construction . . . . . . . . . . 24 Section 4 .2 . Parking Ramp. . . . . . . . . . . . . . . 24 Section 4 . 3 . Intentionally Omitted . . . . . . . . . 24 Section 4 .4 . Landscaping and Utilities . . . . . . . . 25 Section 4 .5 . . . . . . . . . . . . . . . . . . . . . 25 Section 4 . 6 . Estimated Costs . . . . . . . . . . . . . 25 Section 4 . 7 . Estimated Sources . . . . . . . . . . . . 25 Section 4 . 8 . Proj ect Costs . . . . . . . . . . . . . . 25 Section 4 . 9 . Compliance; Zoning/Regulatory Permits . . 26 Section 4 .10 . Conditions Precedent . . . . . . . . . . 27 Section 4 .11 . Approval of Design Drawings . . . . . . . 27 Section 4 .12 . Capital, Operating and Maintenance Cost . 29 Section 4 . 13 . Existing Facilities . . . . . . . . . . . 29 Section 4 . 14 . Promotion of City . . . . . . . . . . . . 29 Section 4 . 15 . Responsibility for Fees . . . . . . . . . 30 Section 4 .16 . Reports . . . . . . . . . . . . . . . . . 31 Section 4 .17 . Use of Auditorium . . . . . . . . . . . . 32 Section 4 . 18 . Additional Programming Area . . . . . . . 32 Section 4 . 19 . Plaza Connection . . . . . . . . . . . . 33 Section 4 .20 . Completion of SMM Improvements . . . . . 33 ARTICLE V - STATE GR.ANTS AND LEASE . . . . . . . . . . . . . 35 Section 5 . 1 . State Grants . . . . . . . . . . . . . . 35 ARTICLE VI - OTHER AGREEMENTS OF THE PARTIES . . . . . . . . 37 Section 6 . 1 . Existing Campus . . . . . . . . . . . . . 37 Section 6 .2 . Access and Coordination . . . . . . . . . 37 Section 6 .3 . Utilities . . . . . . . . . . . . . . . . 38 Section 6 .4 . Schedule and Timeline . . . . . . . . . . 39 331479.9 . � � � � ��-i3 �� � , Section 6 .5 . Public Accessibility . . . . . . . . . . 39 Section 6 . 7 . [Reserved] . . . . . . . . . . . . . . . 40 Section 6 . 8 . Cooperation Between City, SMM and Proj ect Lenders . . . . . . . . . . . . . 40 Section 6 .9 . Execution of Plats/Petitions . . . . . . 40 Section 6 . 10 . Termination of Agreement . . . . . . . . 40 Section 6 . 11 . Reimbursement to City . . . . . . . . . . 41 ARTICLE VII - ENVIRONMENTAL . . . . . . . . . . . . . . . . . 42 Section 7 . 1 . Environmental. . . . . . . . . . . . . . 42 ARTICLE VIII - PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; USE; INDENINIFICATION . . . . . . . . 44 Section 8 . 1 . Status of SNIl�I; Transfer of Substantially All Assets . . . . . . . . . . . . . . . 44 Section 8 . 2 . Prohibition Against Transfer of Property and Assignment of Agreement . . . . . . . 44 Section 8 .3 . Restrictions on Use . . . . . . . . . . . 45 Section 8 .4 . Release and Indemnification . . . . . . . 45 ARTICLE IX - EVENTS OF DEFAULT . . . . . . . . . . . . . . . 49 Section 9 . 1. Events of Default . . . . . . . . . . . 49 Section 9 .2 Notice of Default . . . . . . . . . . . . 50 Section 9 .3 Default and Termination . . . . . . . . . 51 Section 9 .4 Additional Remedies . . . . . . . . . . . 52 Section 9 .5 Special Termination Procedure . . . . . . 53 Section 9 . 6 City' s Right to Perform . . . . . . . . . 55 Section 9 .7 City Defaults and SMM Remedies . . . . 55 Section 9 . 8 . Preconditions to Termination of Agreement by SNIl�! . . . . . . . . . . . . 57 Section 9 . 9 . Effect of Delay . . . . . . . . . . . . . 57 Section 9 . 10 . No Implied Waiver . . . . . . . . . . . . 57 Section 9 . 11 . No Remedy Exclusive . . . . . . . . . . . 57 ARTICLE X - MISCELLANEOUS . . . . . . . . . . . . . . . . . . 59 Section 10 .1 . Conflicts of Interest . . . . . . . . . . 59 Section 10 .2 . Titles of Articles and Sections . . . . . 59 Section 10 .3 . Notices and Demands . . . . . . . . . . . 59 Section 10 .4 . Counterparts . . . . . . . . . . . . . . 60 Section 10 .5 . Law Governing . . . . . . . . . . . . . . 60 Section 10 . 6 . Legal Opinions and Delivery of Documents . . . . . . . . . . . . . . . . 60 Section 10 . 7 . Representatives . . . . . . . . . . . . . 61 Section 10 . 8 . Term . . . . . . . . . . . . . . . . . . 61 Section 10 . 9 . Survivorship of Obligations . . . . . . . 61 Section 10 . 10 . Effect of Covenants, Etc. . . . . . . . . 61 Section 10 . 11 . Superseding Effect . . . . . . . . . . . 62 Section 10 . 12 . Best Efforts . . . . . . . . . . . . . . 62 Section 10 . 13 . Waiver of Certain Damages . . . . . . . . 62 331479.9 � . 9�- is �� � EXHIBITS : Exhibit A Map of the Development Area Exhibit B-1 Site Plan Exhibit B-2 Description of the SMM Improvements Exhibit B-3 Estimate of Costs of the SMM Improvements and Sources of Financing Exhibit C-1 Description of the Land Exhibit C-2 Map of Parcels to be Acquired Exhibit C-3 Map of Leased Premises Exhibit D-1 Description of Upper Landing Improvements Exhibit D-2 Map of Upper Landing Iniprovements Exhibit E-1 Alignment of Eagle Parkway Improvements Exhibit E-2 Eagle Parkway Improvements Description Exhibit E-3 Cross Section of Eagle Parkway Improvements Exhibit F Milestone Exhibit G Design Principles Exhibit H First Source Employment Participation � Agreement Exhibit I Affirmative Action Requirements Exhibit J Targeted Vendor Development Program Exhibit K Labor Standards Exhibit L State Predesign Grant Agreement Exhibit M Construction Grant Agreement Exhibit N State Disbursing Agreement Exhibit 0 Current City Budget Exhibit P-1 Lease Exhibit P-2 Legal Description of Property Leased Pursuant to Museum Lease Exhibit Q-1 Ramp Lease Exhibit Q-2 Legal Description of Property Leased Pursuant to Ramp Lease Exhibit R Disbursing Agreement Exhibit S Form of State Annual Report Exhibit T Map of Additional Programming Area 331479.9 9�-�3�� � � � DEVELOPMENT AGREEMENT THIS AGREEMENT made as of the day of , 1996, by and between the City of Saint Paul, Minnesota, a municipal corporation, organized and existing under the Constitution and laws of the State of Minnesota and its Charter (the "City" ) and The Science Museum of Minnesota, a Minnesota nonprofit corporation ("Sl�l��) . The City and SMM are hereinafter collectively referred to as the "Parties . " W I T N E S 8 T 8: WHEREAS, pursuant to Minnesota Statutes, Sections 469 . 001 through 469 . 047, the City and the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, (the "Authority") have adopted development plans and redevelopment plans (collectively, the "Plans") for the Riverfront Redevelopment Area and the Seven Corners Renewal Area (collectively, the "Project Area") ; and WHEREAS, the acquisition of property by public corporations and the subsequent transfer of such property and development thereof by private enterprise are objectives of the Plans; and WHEREAS, the City operates a program of public recreation in accordance with Minnesota Statutes, Sections 471 . 15 through 471 . 191 (the "Act") ; and WHEREAS, in order to further the objectives of the Plans and the Act and to make land in the Project Area available for development by private enterprise in conformance with the Plans, the City has determined to acquire certain property, lease the 331479.9 � . , 9�-ia7� 1 ♦ same to SMM, and provide for certain public improvements in order to bring about development in accordance with this Agreement; and WHEREAS, the City believes that the development of the Project (as hereinafter defined) as more fully set forth in this Agreement, and the fulfillment of this Agreement are vital and are in the best interests of the City and the health, safety, morals and welfare of its residents; and WHEREAS, the City and SMM recognize that SMM' s program is Minnesota' s most popular indoor year-round cultural center attraction, and has regional importance to the State, the City, and the surrounding community; and WHEREAS, SMM' s program is currently located in two buildings in the City, and currently serves more than 800, 000 people per year in buildings designed to serve 500, 000; WHEREAS, over 150, 000 school children from every county in the State of Minnesota annually visits SMM' s current facilities and, at peak times, public spaces are severely overcrowded; and WHEREAS, expansion at SMM' s current site is not desirable because of excessive renovation costs, inadequate space, relocation cost of neighbors, insufficient student drop-off space, age of existing Omnitheater, risks to museum collection due to inadequate fire suppression and moisture and humidity control, overcrowding problems, and loss of revenue associated with being closed for expansion; and WHEREAS, based on the limitations of the current facilities and SMM� s need to expand, SMM has spent significant time in the years 1992 through 1994, in defining its program and space needs 331479.9 2 , , , 9� -�3 �� . for a facility to bring SMM into the 21st century, which planning has resulted in a Long Range Strategic Development Plan for a new SMM campus that includes site location, expansion of museum facilities, increased visitorship, additional administrative space, increased parking capacity, and improved visitor access; and WHEREAS, based on the Long Range Strategic Development Plan, it is projected that by 2005, the future SMM campus will include or accommodate (a) 1, 500, 000 patrons a year, (b) 500 employees (full time equivalents) , (c) at least 300, 000 square feet of museum building; and (d) a parking ramp with at least 700 parking spaces; WHEREAS, the SMM Improvements (as hereinafter defined) would provide significant benefits to the City of Saint Paul and the surrounding community, including but not limited to the following benefits : (a) the SMM Improvements would be the first major project below the bluff of the Mississippi River and would provide a linkage between the Project and the downtown area; (b) as the leading center for informal science education in the five-state region, the SMM Improvements are expected to draw 1, 500, 000 visitors annually and to serve another 500, 000 persons annually through regional outreach programs; and (c) a study commissioned by SMM in 1994 indicated that SMM' s proposed new facility would provide an annual 331479.9 3 c11� - l 3 7�0 � . impact of $106 .5 million and 2253 jobs for the City and surrounding community, which is a significant increase from the current impact of $55 .4 million and 1, 171 jobs currently provided by SMM' s operations to the regional economy. WHEREAS, with 500 full time equivalent jobs by grand opening, SMM would be in the top one-half of one percent of downtown employers; and WHEREAS, SMM desires to construct the SMM Improvements, and the City desires to, upon satisfaction of certain conditions as more fully set forth herein, make certain contributions to the Project, including specifically to the costs of the Upper Landing Improvements (as defined herein) ; and WHEREAS, the City and SMM desire to enter into this Agreement to set forth the rights and obligations of the Parties with respect thereto. NOW THEREFORE, in consideration of the premises and mutual obligations of the Parties hereto, each of them does hereby covenant and agree as follows : 331479.9 4 , 9�- �3 �� ARTICLE I DEFINITIONS Section 1 . 1 . Definitions . All capitalized terms used and not otherwise defined herein shall have the following meanings unless a different meaning clearly appears from the context : Act means Minnesota Statutes, Sections 471 . 15 to 471. 191; Agreement means this Development Agreement, as the same may be from time to time modified, amended or supplemented; Architect means Ellerbe Beckett or another architect designated by SMM and reasonably acceptable to the City; Authoritv means the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota; C•O• means a certificate of occupancy for the Museum issued by the City; Citv means the City of Saint Paul, Minnesota; City Contribution means the contribution to be made by the City more fully described in Section 3 .2 hereof; City Event of Default shall have the meaning given such term in Sections 3 . 1 (2) , 3 .3 (3) , and 3 .4, 3 .7 and 9 .7 hereof; City Representative means the Director, Department of Planning and Economic Development, or his or her designee; Completion Date shall have the meaning ascribed to it in Section 4 . 1 hereof; Construction Grant Agreement means the Construction Grant Agreement by and between the City and the State in the form attached hereto as Exhibit M; 331479.9 5 q1P- /37� Countv means Ramsey County; Development Area means the area outlined on Exhibit A attached hereto; Disbursing Agreement means the Disbursing Agreement of even date herewith, by and between the City and SMM in substantially the form attached hereto as Exhibit R; Eagle Parkway Improvements means the public improvements described and depicted in Exhibits E-1, E-2 and E-3 attached hereto; Environmental Law means the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S .C. §9601 et sea• , the Resource Conservation and Recovery Act, 42 U.S .C. §6901 et secr• , the Hazardous Materials Transportation Act, §1802 et sea• , the Federal Water Pollution Control Act, 33 U.S .C. §1251 et sea• , the Clean Air Act, 42 U.S .C. §7401 et sea• , the Minnesota Environmental Response and Liability Act, Minn. Stat. Ch. 115B, the Minnesota Petroleum Tank Release Cleanup Act, Minn. Stat . Ch. 115C, and any other federal, state, county, municipal or local statute or law which regulates Hazardous Substances; Event of Default shall have the meaning ascribed to it in Section 9 . 1 hereof; Grant Agreements means collectively the Predesign Grant Agreement, a copy of which is attached hereto as Exhibit L and the Construction Grant Agreement, a copy of which is attached hereto as Exhibit M; Hazardous Substances means asbestos, ureaformaldehyde, polychlorinated biphenyls ("PCBs") , nuclear fuel or material, 331479.9 6 q� -�3 �� chemical waste, radioactive material, explosives, known carcinogens, petroleum products and by-products and other dangerous, toxic or hazardous pollutants, contaminants, chemicals, materials or substances listed or identified in, or regulated by, any Environmental Law; Leases means the Museum Lease and the Ramp Lease; Museum means the museum to be constructed as part of the SNIl�! Improvements, more particularly described in clause (1) of Exhibit B-2 attached hereto; Museum Lease means the lease in substantially the form attached hereto as Exhibit P-1 to be entered into by the City as lessor and SDM�I as lessee pursuant to which the City will lease the land legally described on Exhibit P-2 hereof to SMM; Leased Premises means that portion of the land to be leased by the City to SMM pursuant to the Leases, which land is outlined on Exhibit C-3 attached hereto and legally described on Exhibits P-2 and Q-2 hereof; Proiect means the Eagle Parkway Improvements and the SMM Improvements; - Ramp Lease means the lease in substantially the form attached hereto as Exhibit Q-1 to be entered into by the City as lessor and SMM as lessee pursuant to which the City will lease the land legally described on Exhibit Q-2 to SNIl�I; SDM�! Improvements means the improvements to be constructed by SMM in accordance with this Agreement, which improvements are described and depicted on Exhibits B-1 and B-2 attached hereto 331479.9 7 q�-�� �� and further described in Sections 4 . 1 through 4 .5 hereof, both inclusive; SMM Parking Ram� means the parking ramp to be constructed as a part of the SMM Improvements pursuant to Section 4 .2 hereof and the Ramp Lease; State means the State of Minnesota; Stat� Disbursing Agreement means the Disbursement Agreement Construction Grant, by and between the City and the State in the form attached hereto as Exhibit N; State Grants means the grants appropriated by the State for a science museum as described in Section 5 .1 hereof; Turn Around Agreement means the Civic Center Turn Around Agreement dated as of July 29, 1996 among the City, SMM and the Civic Center Authority; Upper Landing Improvements means that portion of the SMM Improvements generally described and depicted on Exhibits D-1 and D-2 attached hereto and the Eagle Parkway Improvements; Unavoidable Delays means delays which are the direct result of unforeseeable events beyond the control of the party claiming its occurrence, and without its fault or negligence, including, but not limited to, delays caused by the other party, delays caused by the discovery of hazardous substances, acts of God, fire, floods, epidemics, quarantine restrictions, strikes, freight embargoes, unavailability of materials, unusually severe weather, delays of independent contractors, or delays caused by compliance with local, state or federal regulatory requirements . 337479.9 8 9'!0 -/3 7!p Section 1 .2 . Exhibits. The following exhibits are attached hereto and made a part of this Agreement: Exhibit A Map of the Development Area Exhibit B-1 Site Plan Exhibit B-2 Description of the SMM Improvements Exhibit B-3 Estimate of Costs of the SMM Improvements and Sources of Financing Exhibit C-1 Description of the Parcels to be Acquired Exhibit C-2 Map of Parcels to be Acquired Exhibit C-3 Map of Leased Premises Exhibit D-1 Description of Upper Landing Improvements Exhibit D-2 Map of Upper Landing Improvements Exhibit E-1 Alignment of Eagle Parkway Improvements Exhibit E-2 Description of the Eagle Parkway Improvements Exhibit E-3 Cross Section of Eagle Parkway Improvements Exhibit F Milestone Schedule Exhibit G Design Principles Exhibit H First Source Employment Participation Agreement Exhibit I Affirmative Action Requirements Exhibit J Targeted Vendor Development Program Exhibit K Labor Standards Exhibit L Predesign Grant Agreement Exhibit M Construction Grant Agreement Exhibit N State Disbursing Agreement Exhibit 0 Current City Budget Exhibit P-1 Museum Lease 331479.9 9 . 9�-/3�� Exhibit P-2 Legal Description of Property Leased Pursuant to Museum Lease Exhibit Q-1 Ramp Lease Exhibit Q-2 Legal Description of Property Leased Pursuant to Ramp Lease Exhibit R Disbursing Agreement Exhibit S Form of State Annual Report Exhibit T Map of Additional Programming Area 331479.9 1 0 9!0 -l3 7lA ARTICLE II REPRESENTATIONS AND WARRANTIES Section 2 . 1 . Representations and Warranties of the City. The City makes the following representations and warranties : (1) The City is a municipal corporation organized and existing pursuant to Minnesota law, and has the power and authority to enter into this Agreement and carry out its obligations hereunder. (2) The City has duly authorized the execution, delivery, and performance of this Agreement by action of its City Council . (3) The Project contemplated by this Agreement is or will be in conformance with the development objectives set forth in the Plans . (4) Notwithstanding any other provision of this Agreement to the contrary, except as provided in Section 3 . 1 hereof, the City makes no representation or warranty, either express or implied, as to the Leased Premises or its condition or the soil conditions thereon, or that the Leased Premises will be suitable f or the SNIl�! Improvement s . (5) To its knowledge, neither the execution and delivery of this Agreement, the consummation of the transactions contemplated � hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by, conflicts with, constitutes a default under, or results in a breach of the terms, conditions or any provision of Minnesota law, the City' s charter, administrative code, or legislative code or by any contractual restrictions, evidence of indebtedness, agreements or 331479.9 1 1 q� -�3�� instruments of whatever nature to which the City is now a party or by which it is bound. (6) The City is not presently aware of any condition or fact which would prevent it from carrying out and performing its obligations under this Agreement . Section 2 .2 . Representations and Warranties of SMM. (1) SNIl�1 is a non-profit corporation, duly formed and existing under Minnesota law. (2) SMM has the power to enter into this Agreement and to perform its obligations hereunder, and to its knowledge, is not in violation of any provisions of the laws of the State. (3) To its knowledge, neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by, conflicts with, constitutes a default under, or results in a breach of the � terms or conditions of any provision of the articles of incorporation, or by-laws of SMM, or by any contractual restrictions, evidences of indebtedness, agreements or instruments of whatever nature to which SMM is now a party or by which it is bound. (4) SMM is not presently aware of any condition or fact which would prevent it from carrying out and performing its obligations under this Agreement . 331479.9 1 2 � . 9� -i3�� ARTICLE III OBLIGATIONS OF THE CITY Section 3 . 1 . Land Acquisition and Clearing. (1) The City will acquire that portion of the land identified as Parcels 1 and 2 on Exhibit C-1 attached hereto not later than January 15, 1997, and will demolish and clear Parcel 1 not later than January 15, 1997 . For purposes of this Agreement, the phrases "demolish and clear" or "demolishing and clearing" mean removal of all surface and subsurface structures and their foundations, cap and plug all utilities at the mains, and remove any site associated structures located on the land. SNIl�! acknowledges that the City has no obligation to demolish and clear Parcel 2 . (2) Subject to delays in demolishing the existing improvements caused by the existence of hazardous substances unknown to the parties at the time of execution of this Agreement, but only to the extent such delays in demolition cause the demolition phase to exceed forty-five (45) days, the City , will acquire demolish and clear that portion of the Land identified as Parcel 3 on Exhibit C-1 attached hereto not later than August 15, 1998 . In the event that the City fails to acquire, demolish and clear Parcel 3 by August 15, 1998, a City Event of Default shall be deemed to exist under this Agreement notwithstanding the notice and cure provisions of . Section 9 . 7 hereof, provided that SMM shall not have the right to obtain any damages for such failure if the City substantially completes the 331479.9 1 3 . q1��137� Eagle Parkway Improvements as required by Section 3 .3 of this Agreement on or before April 15, 1999 . (3) If condemnation is necessary for the acquisition of any of the Land, the City or one of its redevelopment agencies will exercise its powers of eminent domain, including quick take at such times to insure compliance by the City with Subsections (1) and (2) of this Section 3 . 1 . (4) The City shall use the best efforts to obtain, at SMM' s cost, an ALTA lessee' s policy of title insurance (current version) issued by Commonwealth Land Title Insurance Company ("Title") in an amount acceptable to SNIl�I, naming SMM as the insured, and insuring the leasehold interest of SNIl�I under the Leases, free and clear of all title defects, liens and encumbrances . A precondition to the execution of the Leases by SMM shall be that the status and condition of the title of the Leased Premises, and the form of such policy of title insurance, shall be acceptable to SMM. (5) The acquisition, demolishing, clearing and relocation costs for Parcels 1, 2 and 3, excluding any costs of remediation or clean up of Hazardous Substances which are addressed in Section 7 . 1 hereof, shall be paid by the City. (6) The costs of acquisition, demolishing, clearing and relocation costs for Parcel 5, excluding any costs of remediation or cleanup of Hazardous Substances which are addressed in Section 7 . 1 hereof, shall be paid equally by the City and SMM. When all of the costs of acquisition, clearing, relocation and demolition for Parcel 5 are paid, the City shall provide SMM with invoices 331479.9 1 4 � � � 9�-�3 �� or evidence of such costs . SDM�I shall pay to the City its share of such costs within 30 days after receipt of an invoice from the City. If the City does not receive SMM' s payment within such 30 day period the City may submit to the Trustee a Requisition Certificate in the form attached as Exhibit B to the Disbursing Agent for reimbursement of such unpaid amount from the City Construction Account . � (7) The City shall pay all costs of acquisition of Parcel 4 and such parcel shall not constitute a part of the Leased Premises . (8) The City estimates that the costs of acquisition, demolishing, clearing and relocation will be in the range of $6, 500, 000 to $7, 000, 000, which includes the $375, 000 for remediation or clean up of Hazardous Substances described in Subsection 7 .1 (1) (A) and (1) (C) hereof, which cost is not a part of the City Contribution as provided in Section 3 .2 (iii) . (9) SMM agrees that it will cooperate fully with the City in connection with the City' s acquisition of the parcels of land described on Exhibit C-1 and will use all influence reasonably available to it to enable such land to be acquired at the lowest possible cost . (10) The Leased Premises which are legally described in Exhibits P-2 and Q-2, which excludes any public right of way for the Eagle Parkway Improvements, shall be leased to SMM pursuant to the Leases . The Leases will be in substantially the forms attached hereto as Exhibit P-1 and Q-1 . The Leases will be executed by SMM and the City at the later of : i) closing on the 331479.9 1 5 q1,-�37� issuance of the revenue bonds referred to in Section 3 . 6 hereof or ii) promptly after the terms and conditions thereof have been approved by the State, and all other conditions set forth in Sections 3 . 1 (4) , 3 .4 (3) (b) through (1) hereof, and Section 4 . 10 (except subsection (d) ) have been met or waived in writing by the party for whose benefit the condition exists . SMM shall not commence construction of the SPM�! Improvements, except as contemplated by the Turn Around Agreement, prior to the execution of the Leases . Notwithstanding the foregoing sentence, SMM shall have the right to commence utility and grading work prior to execution of the Leases, with the written approval of the City (which approval shall not be unreasonably withheld) , subject to the following conditions : (a) The City shall have title to and the right of possession of the land on which the work will be done, (b) All costs and expenses of such work shall be the sole responsibility of SNIl�I, (c) SNIl�! shall have in place all insurance required by the Leases as if the Leases were in effect, and (d) SMM shall be bound by all provisions of Section 8 .4 hereof notwithstanding the fact that the Leases have not been executed. (11) SNIl�I agrees to acquire and convey to the City that portion of the Land identified as Parcel 6 on Exhibit C-1 attached hereto prior to execution of the Leases, and to cause said property to be covered, at the cost of the City, by an 331479.9 1 6 9� -���� owner' s policy of title insurance insuring the City' s interest as owner subject only to exceptions acceptable to the City. Section 3 .2 . City Contribution. In return for SMM� s agreement to undertake the SMM Improvements, the City agrees to make a contribution upon the terms and conditions set forth in this Agreement of : (i) $10, 500, 000, (less the remediation and cleanup costs paid by the City pursuant to Section 7 . 1 (1) (B) hereof and less any offset made pursuant to Section 3 .1 (6) hereof) , plus (ii) the City' s portion of the land assembly costs set forth in Section 3 . 1 hereof, plus (iii) the portion of the environmental clean up costs to be paid by the City pursuant to Section 7 . 1 (1) (A) and (C) hereof, and plus (iv) the portion of the $500, 000 contribution to be used to pay the design amenities for the Plaza Connection pursuant to Section 3 . 8 hereof . Section 3 .3 . Eagle Parkway Improvements . (1) The Eagle Parkway Improvements will be aligned, designed and constructed as set forth on Exhibits E-1, E-2 and E- 3 attached hereto. The City will not change the elevation or the easterly boundary of the Eagle Parkway Improvements as shown on Exhibits E-1, E-2 and E-3 without the prior written consent of SMM. The cost of the Eagle Parkway Improvements is currently estimated by the City to be $1, 500, 000 . The City will complete construction drawings for the Eagle Parkway Improvements within 331479.9 1 7 q�- �� �� 60 days after execution of this Agreement and will provide SMM with an updated cost estimate upon completion of such construction drawings . During such 60 day period, the Parties agree to meet and use their best efforts to integrate the design of Celebration Plaza and the Eagle Parkway Improvements along the western edge of the Leased Premises . (2) Notwithstanding the estimates in subsection (1) hereof, SMM acknowledges that it is solely responsible for all costs and expenses necessary to design and construct the Eagle Parkway Improvements; provided however that, the City will pay for any design and construction costs of the Eagle Parkway Improvements if the Eagle Parkway Improvements are designed and constructed in such a manner as to require expenditures in excess of the expenditures that would be required if it were designed and constructed in accordance with the description and design standard set forth in Exhibits E-1, E-2 and E-3 (the "Alternate Design") and provided further that the City shall, in order to determine any excess expenditures, require contractors to bid the construction both in accordance with Exhibits E-1 through E-3 and in accordance with the Alternate Design. Notwithstanding the foregoing, the City agrees to pay the costs of acquiring and installing the benches included in Exhibit E-2 hereof . (3) The City agrees to substantially complete the Eagle Parkway Improvements by April 15, 1999, and that, notwithstanding Section 9 . 7 hereof, the City shall have no notice and cure period if it fails to complete the Eagle Parkway Improvements by April 331479.9 1 8 94-� 3�� 15, 1999, and that a City Event of Default shall exist if they are not completed by that date. (4) The City and SMM will jointly approve signs to be placed in the public right of way along the Eagle Parkway Improvements to maximize motorists ' use of the lower entrances to the Civic Center Ramp and the SMM Parking Ramp, such signs to be a part of the design elements of the Eagle Parkway Improvements . Section 3 .4 . Payment or Release of City Contribution. Upon execution of this Development Agreement and the Disbursing Agreement, the City Contribution described in Section 3 .2 (ii) and (iii) shall be paid by the City as the costs of land assembly, clearing, demolition, relocation, remediation and clean up of Hazardous Substances are incurred. The City Contribution described in Section 3 .2 (i) and (iv) hereof shall be paid or disbursed as follows : (1) $500, 000 will be paid to SMM, upon receipt by the City of a written request from SMM to reimburse it for design costs incurred by SMM for the SNIl�1 Improvements . Such request shall be accompanied by reasonable evidence of the cost and payment thereof; (2) $250, 000 will be paid by the City to defray environmental cleanup costs of the Parcels 1, 2, 3 and 5 described on Exhibit C-1 hereof as and when needed subject to Section 7 . 1 (1) (B) hereof, provided that any part of such $250, 000 not expended pursuant to Section 7 . 1 (1) (B) hereof will be disbursed pursuant to subsection (3) below; (3) The remainder will be disbursed pursuant to the provisions of the Disbursement Agreement provided that no disbursement shall be made unless the following conditions have been met (or the City has waived them in writing) : a. The Parties have executed, with the approval of the State, the Leases . 331479.9 1 9 q�- i3'�� b. The State and the City have executed the Grant Agreements and the State Disbursing Agreement, and all pre-conditions in those agreements to the disbursement of the State Grants have been satisfied; c. All representations and warranties of SMM herein and in the Leases are true and correct in all material respects; d. No event has occurred and is continuing which constitutes a default or an Event of Default by SMM under this Agreement or the Leases; e. No event has occurred and is continuing which, with the giving of notice or the passage of time, or both constitutes a default or an Event of Default by SPM�! under any document or instrument related to financing of all or any portion of the SMM Improvements; f . SMM shall have entered into, and shall have provided to the City a copy of, a construction management agreement for the SMM Improvements with a contractor or construction manager reasonably acceptable to the City and an agreement between SMM and Ellerbe Beckett, or another architect reasonably acceptable to the City, for the design of the SMM Improvements; g. SMM shall have entered into, and shall have provided to the City a copy of, a fixed price construction contract, or a guaranteed maximum price contract, between SMM and a contractor reasonably acceptable to the City for construction of the SPM�! Improvements; provided further that such contract shall be backed by a payment and performance bond from a bonding company acceptable to the City. h. No changes to the Design Drawings prohibited by Section 4 . 11 hereof shall have been made without the approval of the City. i . SMM shall have provided the City a total project cost statement estimating the total construction cost for the SNIl�1 Improvements and the Eagle Parkway Improvements, together with copies of any other documentation reasonably required by the City to confirm such costs; 331479.9 2 0 9�0-137� j . SNIl�I shall have provided to the City evidence acceptable to the City that (a) conduit revenue bonds have been issued and that the proceeds thereof are available for disbursement to pay costs of SMM Improvements on terms acceptable to the City, and (b) the proceeds of such conduit revenue bonds, together with the City Contribution, the State Grants, other funds of SMM specifically allocated by the Board of Directors of SMM to construction of SMM Improvements by written resolution, and any pledges received by SMM and available to pay any costs of the SMM Improvements are sufficient and available to pay all estimated costs of the SMM Improvements and the estimated cost of the Eagle Parkway Improvements as set forth in Section i above; and k. SMM shall have paid in full that certain promissory note payable to the City in the original principal amount of $2, 500, 000 . Upon satisfaction (or written waiver by the City) of all of the conditions set forth in clause (3) above, that portion of the City Contribution described in Section 3 .2 (i) hereof, less any amounts theretofore disbursed pursuant to clauses (1) and (2) above, shall be deposited with the Trustee for the conduit revenue bonds and held in a separate account by the Trustee under the Indenture of Trust (the "City Construction Account") ; provided that funds in the City Construction Account shall not be a part of the trust estate securing the holders of the conduit revenue bonds . If the City fails to deposit the City Contribution with the Trustee in accordance with the preceding sentence, a City Event of Default shall be deemed to exist under this Agreement notwithstanding the notice and cure provisions of Section 9 . 7 hereof . The Trustee shall be authorized to disburse the moneys in the City Construction Account in accordance with the provisions of the Disbursing Agreement. SMM acknowledges 331479.9 2 1 9�•i3�� that, notwithstanding the fact that the City Contribution is intended to be used first for design and construction of the Upper Landing Improvements, SMM is solely responsible for payment of all costs of the Upper Landing Improvements, subject to the provisions of Section 3 .3 hereof, regardless of whether the City Contribution is sufficient therefor. Section 3 .5 . City Options for Financing. The City' s Budget Director has developed a multi-year finance plan to provide funds to finance the City Contribution. The current adopted budget is attached hereto as Exhibit 0. The City, in its sole discretion, may amend the budget as long the City' s ability to perform its obligations under this Agreement is not impaired. The Parties recognize that some of the revenue funding th.e City' s Contribution may be restricted to certain uses. The City will notify SMM of any such use restrictions; provided that no revenues will be used to fund the City Contribution if the restrictions to which such revenues are subject would negatively impair or affect the ability of SMM to use such funds to construct the SMM Improvements or delay the construction thereof . The City will provide SNIl�I and any entity that holds the City Construction Account written notice of any such restrictions, and SMM agrees to be bound by any and all such restrictions . Except as specifically provided in this Section 3 .5, with respect to restrictions on the use the of City Contribution, neither the City' s budget nor the source of the City Contribution shall affect the rights or obligations of the City or SMM under this Agreement . 331479.9 2 2 9�-i��� Section 3 . 6 . Conduit Revenue Bonds. As and when requested by SMM, the City will request the Authority to use its best efforts to issue conduit revenue bonds pursuant to Minnesota Statutes, Sections 469 . 152 to 469 . 1651, both inclusive, to finance a portion of SMM Improvements . Neither the City nor the Authority shall be obligated to provide any credit enhancement for the revenue bonds based on the credit standing or moral obligation of either the City or Authority or to pledge any revenues or other funds of either the City or Authority to the payment of debt service on the bonds or to pay any other capital or operating costs of the SMM Improvements . Section 3 . 7 . Shepard Road. The City will complete the construction of the railroad crossing at the eastern edge of the Development Area by not later than April 15, 1999 . In the event that the City fails to complete such construction by April 15, 1999, then a City Event of Default shall be deemed to exist under this Agreement notwithstanding the notice and cure provisions of Section 9 . 7 hereof . Subject to Unavoidable Delays, the City will complete the construction of Shepard Road, and the railroad crossing at the western edge of the Development Area by December 31, 1999 . 331479.9 2 3 . , . 9��/3 7� . , ARTICLE IV SMM UNDERTAKINGS Section 4 . 1. Museum Construction. (1) SMM agrees to construct a new facility of not less than 300, 000 gross square feet for use as a science museum (the "Museum") in conformance with the Design Drawings, as amended from time to time in accordance with this Agreement . The construction of the Museum will commence on or before March 15, 1997, and shall be completed on or before March 1, 2000 (as extended for Unavoidable Delays "Completion Date") . SMM agrees to construct and operate the Museum in accordance with the provisions of the Museum Lease. (2) The SMM Improvements constitute a "project" within the meaning of Minn. Stat . §469 . 153 subd 2 (b) , and SPM�! is hereby authorized by the City to provide for the construction and equipment of the SMM Improvements, as .permitted by the Act, and as further permitted by the Leases. Section 4 .2 . Parking Ram�. (1) SMM agrees to construct the SMM Parking Ramp. The SMM Parking Ramp will have at least 700 spaces and not more than 850 spaces and will be constructed in conformance with the Design Drawings, as. amended from time to time in accordance with this Agreement . Subject to Unavoidable Delays, the SMM Ramp will be completed on or before March 1, 2000 . SMM agrees to construct and operate the SMM Ramp in accordance with the provisions of the Ramp Lease. Section 4 .3 . Intentionally Omitted. 337479.9 2 4 . , � 9l�•J3�� . Section 4 .4 . Landscaping and Utilities . SMM will landscape the SMM Improvements, including the area along the edges of the Leased Premises, and will install a fence of at least 8 feet in height along the southerly border of the Leased Premises . SMM will cause the utilities to be relocated and will undertake all soil correction (e.g. pilings and removal or addition of fill) necessary for construction of SMM Improvements; provided that remediation and cleanup of Hazardous Substances will be governed by Section 7 . 1 hereof . Section 4 . 5 . [Intentionally Omitted] Section 4 . 6 . Estimated Costs . SMM� s estimate of the costs of the SMM Improvements and the City' s estimate of the costs of the Eagle Parkway Improvements, excluding the costs of land acquisition, clearing, demolition, renovation and environmental remediation, are set forth on Exhibit B-3 . Section 4 . 7 . Estimated Sources . The estimated sources for financing the SDM�I Improvements, including the Eagle Parkway Improvements, excluding land acquisition, clearing, demolition, renovation and remediation costs, are set forth in Exhibit B-3 hereof . Section 4 . 8 . Project Costs. SMM and the City acknowledge that the costs and sources set forth in Exhibit B-3 are estimates and that subject to Sections 3 .3 and 4 . 10, SMM shall have sole responsibility and will pay for all costs of the Project, including the Eagle Parkway Improvements, which exceed the City Contribution regardless of the final cost and regardless of 331479.9 2 5 e .� 9Y'/� I� � � whether or not any of the foregoing sources of funds are available or sufficient . Section 4 . 9 . Compliance; Zoning/Regulatory Permits . (1) SMM will obtain and maintain all necessary zoning and regulatory permits for the construction and operation of the SMM Improvements . SMM will pay for any and all costs of any Special Use Condition Permits, Indirect Source Permits, EAW, or other environmental reviews required for the SMM Improvements and will comply in all material respects with all terms and conditions of those permits . The cost of the EAW is estimated by the City to be $20, 000 . (2) Subject to Section 4 . 10, SMM will cause the SMM Improvements to be constructed, operated and maintained in material compliance with the terms and provisions of this Agreement, the Leases, and all local, state and federal laws and regulations, including, but not limited to, environmental, zoning, energy conservation, building code and public health laws and regulations . (3) SMM agrees to comply with the prevailing wage standards, affirmative action, public art ordinance, and targeted business programs of the City, including specifically compliance with the provisions of the First Source Employment Participation Agreement attached hereto as Exhibit H, the Affirmative Action Requirements attached hereto as Exhibit I, the Targeted Vendor Development Program attached hereto as Exhibit J, and the Labor Standards attached hereto as Exhibit K. 331479.9 2 6 , q[�-l3�7� . , Section 4 .10 . Conditions Precedent . Al1 of SNIl�!' s undertakings and obligations set forth in this Article IV are subject to and conditioned upon each of the following: (a) Unavoidable Delays; (b) Issuance of conduit revenue bonds; (c) Execution by the City and the State of the Construction Grant Agreement and the State Disbursing Agreement; (d) Execution by the City and SMM of the Leases; (e) Deposit of the City Contribution into the City Construction Account; and (f) Timely performance by the City of its other obligations under this Agreement . Section 4 . 11 . Approval of Design Drawings . (1) The City acknowledges that SNIl�I has submitted the documents included as a part of Exhibit G hereto (the "Design Drawings") to the City and that the Design Drawings have been approved by the City. (2) SMM shall not make any changes to the Design Drawings (and any construction drawings or plans) which significantly affect the site plan, elevations or exterior of the SPM�I Improvements without the prior written approval of the City Representative. SNIl�! shall have the right to make any other changes to the Design Drawings (and any construction drawings or plans) without such approval . (3) In the event that SMM desires any changes in the Design Drawings which require the approval of the City Representative 331479.9 2 7 . . �l� '1374° 6 pursuant to clause 2 immediately above, SMM shall submit such proposed changes, together with whatever additional documentation the City requires to properly evaluate the proposed changes (collectively the ��Design Drawing Changes") . (4) The City Representative shall expeditiously review the ' Design Drawing Changes . The Design Drawing Changes shall conclusively be deemed approved, unless they are rejected in writing by the City Representative within ten (10) working days of submission, which written rejection must be accompanied by a written statement of the City Representative specifying the respects in which the Design Drawing Changes submitted by SMM are unacceptable. If the City Representative rejects the Design Drawing Changes in accordance with the preceding sentence, in whole or in part, SMM may either withdraw the request for Design Drawing Changes or submit new or corrected Design Drawing Changes after receipt by SMM of written notification of the rejection. The provisions of this subsection relating to approval, rejection and resubmission of Design Drawing Changes shall continue to apply for thirty days from the original request for Design Drawing Changes after which time, if the City Representative has not agreed to such request, the request shall be deemed to be withdrawn. (5) Approval of the Design Documents and any future approval of Design Drawing Changes by the City Representative shall not relieve SMM of its obligation (a) to receive the approval of any other City department if such approval is required by City ordinance, standard City licensing or permitting 337479.9 2 8 . . 9�-/3�� � requirements or standard written City policies in connection with the SMM Improvements, or (b) to comply with the terms and provisions of this Agreement, the Leases, or the provisions of any applicable federal, state and local laws, ordinances and regulations, nor shall approval of any Design Drawing Changes by the City Representative be deemed to constitute a waiver of any Event of Default . Section 4 . 12 . Capital, Operating and Maintenance Cost . SMM, or its permitted successors or assigns, will pay for all capital, operating and maintenance expenses of the property leased to SMM under the Leases during the entire term of the Leases . Section 4 . 13 . Existing Facilities . In recognition of limited local resources and SMM' s desire for a long term mutually beneficial relationship with the City, SMM agrees, concurrently with the execution of the Leases, to enter into a lease of the building on the western portion of the existing campus (the "West Building") , on terms mutually agreeable to the Parties, which lease will replace the existing lease dated July 15, 1984, between the Parties . Section 4 . 14 . Promotion of Citv. SMM understands that the City is making the contributions herein to the Project, in part, because of the relationship between the Project and the downtown area of the City. SNIl�! agrees, in consideration of the City' s contribution to the Project, to undertake the following activities to actively promote the downtown area of the City: 331479.9 2 9 . . 9l0-/37� (A) to participate in the marketing of cultural and entertainment activities available in the downtown area of the City, including participating in the marketing efforts of the Capital City Partnership, or a successor organization. (B) to provide space in the SMM Improvements for a kiosk satisfactory to the City and SMM to inform visitors about entertainment, cultural and other activities available in the downtown area of the City. Section 4 . 15 . Responsibility for Fees . SMM agrees to pay for the City and Authority fees associated with the SMM Improvements including: (A) Standard City fees for permits, licenses and other approvals required by City ordinance for the SMM Improvements . (B) Issuer fees associated with conduit revenue bonds issued on behalf of SNIl�I. Excluding legal fees for the Turn Around Agreement and legal costs of the City in preparing a separate lease for the SNIM Parking Ramp (including any declarations of easements required solely due to separate leases) , the Parties shall pay for their respective legal costs for the preparation of the Memorandum of Understanding, this Agreement, the Leases, the Disbursing Agreement, and any other documents related to the Project, excluding any documents entered into in connection with conduit revenue bonds issued for the Project . 331479.9 3 0 , . 9�0/3�� After the grand opening of the Museum, should the Parties mutually decide to relocate underground the NSP overhead wires referred to in Section 6 .3 hereof, any costs with respect thereto which are properly allocable to costs within the Leased Premises shall be paid by SDM�! and any costs which are properly allocable to costs outside the Leased Premises shall be the responsibility of the City. Section 4 . 16 . Reports . (1) SMM shall provide the City in a timely manner with such information about the SMM Improvements as the City may reasonably request in writing. Additionally, SMM shall promptly provide the City, at its written request, or without its written request if such information is otherwise required by Exhibits H, I, J, or K hereof, any information needed to ensure compliance with Section 4 . 9 hereof, any information needed to ensure compliance by the City with the Grant Agreements, and any other information provided to the State or private lenders. The City agrees to protect such information as non-public or trade secret information to the extent such protection is available under Minnesota Statutes, Chapter 13 . Nothing herein shall be construed to require the City to incur any costs or expenses in complying with this provision unless SMM agrees in advance to pay or reimburse the City for any costs and expenses incurred by the City in complying with this agreement. (2) SDM�I agrees to provide the City with the information set forth in Exhibit S hereto on or before November 1 of each year, commencing on the November 1 first following the Completion Date. 337479.9 3 1 clCo -1�3?� SDM9 agrees to meet with the City during the month of November of each year to discuss the material provided by SMM. Section 4 . 17 . Use of Auditorium. The Parties acknowledge that the Museum Lease includes a provision pursuant to which SNIl�! agrees to allow the City to use the auditorium constructed as part of the SNIl�! Improvements for public meetings not more than 3 times per year. Such use will be without rental charge to the City and at mutually agreeable times for not more than 8 hours per time. SNIl�! shall not be obligated for any costs incurred solely as a result of the City' s use of the auditorium, such costs to be the responsibility of the City. Section 4 . 18 . Additional Programming Area. The City agrees to keep the property in the Development Area south of the railroad tracks shown on Exhibit T as park and open space area for a period of 10 years after the Museum is open to the public (the "Additional Programming Area") . SMM shall have the option, which option must be exercised by written notice to the City, at any time within the ten year period commencing with the public opening of the Museum, to operate programs in the Additional Programming Area as long as SNIl�I (a) designs and constructs, in a manner satisfactory to the City, a pedestrian bridge or other access acceptable to the City across the railroad tracks, which design and construction shall be at no cost to the City, (b) enters into an Agreement with the City to cover the operation and maintenance of the pedestrian bridge or other access acceptable to the City, and (c) enters into an agreement with City' s Parks and Recreation Department to operate its program in the 331479.9 3 2 , . 9C�• /37� Additional Programming Area. In the event that SMM properly exercises this option, then SMM shall have the right to continue using the Additional Programming Area for the duration of the Lease term. Section 4 . 19 . Plaza Connection. If the parties agree that the SMM Parking Ramp and the Civic Center Parking Ramp should be connected at one or more levels (the "Plaza Connection") (a) the parties will negotiate a three party agreement with the Civic Center Authority with respect to the design, cost, responsibility for construction, timetable, operating and maintenance responsibilities, and design amenities, and (b) SMM and the Civic Center Authority shall enter into an appropriate easement agreement with respect to the Plaza Connection. If the Plaza Connection includes a connection at the Kellogg Street level, the City will contribute $500, 000 to be used to pay for design amenities such as pavers, trash cans, benches and decorative lighting on the top level of the Plaza Connection. The balance of the City' s funds will be used to pay for similar improvements to carry the design theme through to the top of the Civic Center Ramp. Section 4 .20 . Completion of SDM�I Improvements . Within 30 days after substantial completion of the SMM Improvements, SMM shall deliver a written notice of such fact executed by SMM and the Architect to the City (the "Certificate of Completion") , and within one year of substantial completion of the SMM Improvements, SMM shall deliver a complete set of a reproducible 331479.9 3 3 . . 9�-13?� record, or "as built" drawings prepared by the Architect, showing the SNIl�! Improvements and their location. 331479.9 3 4 � , �J�o-13?l� , ARTICLE V STATE GRANTS AND LEASE Section 5 . 1 . State Grants . (1) The State of Minnesota has made two grants totalling $31 million dollars for the Science Museum from the proceeds of the State' s general obligation bonds (the "State Grants") . SMM and the City agree that none of the money derived from the State Grants will be disbursed for the construction of the Parking Ramp or the Eagle Parkway Improvements . The grants are made on the terms and conditions set forth in the Grant Agreements and the State Disbursement Agreement . The City agrees not to charge an acceptance or administrative fee for the State Grants . The City agrees to comply with all terms and conditions of the Grant Agreements and the State Disbursing Agreement and SMM agrees at the written request of the City to cooperate fully to assist the City in complying with all provisions of the Grant Agreements and the State Disbursing Agreement . (2) The State Grants include the following: (A) 1994 State Grant - 51, 000, 000 . A grant in the amount of $1, 000, 000 to the City for costs associated with the predesign and design of a science museum, the proceeds of which have heretofore been disbursed to SDM�I. (B) 1996 State Grant. A grant in the amount of $30 million to the City to design, construct, furnish and equip a science museum. SMM acknowledges that the authorizing legislation for the 1996 State Grant provides that the proceeds are not available until (a) the 1996 State Grant is 331479.9 3 5 . . q�-J37� matched by at least $59, 000, 000 in nonstate funds, (b) the City provides written evidence of the availability of matching funds to the Commissioner of Finance, and (c) the Commissioner of Finance has determined that all matching requirements of current and prior appropriations have been met . SNIl�1 agrees to provide the City and State evidence of such matching funds as soon as available. (3) The City will provide SMM with any statement provided to the Finance Commissioner pursuant to Section 2 .07 of the Construction Grant Agreement or Section 3 . 03 of the Predesign Grant Agreement at the same time any such statement is provided to the Finance Commissioner. In the event that the City is in default under any of the provisions of the Grant Agreements or the State Disbursing Agreement, and the City fails to comply with such provisions within sixty (60) days of the receipt of written notice thereof from SMM or the State, SMM shall have the right, but not the obligation, to perform any of the City' s obligations under the Grant Agreements and the State Disbursing Agreement. The City shall pay SMM on demand the actual cost of performing such obligations with interest thereon until paid at the rate of 10% per annum. 331479.9 3 6 . ., 9�-�37� . . . ARTICLE VI OTHER AGREEMENTS OF THE PARTIES Section 6 . 1. Existing Campus. The Parties agree to develop a joint strategy to reuse SMM' s existing building at Wabasha and Exchange Streets, commonly referred to as the East Building. The Parties agree that if a labor interpretive center is funded by the State on terms acceptable to SMM and the City, the Parties will convey their respective interests in the East Building to the State for $1 .00, on the condition that it be used primarily as a labor interpretive center. SMM will use best efforts to provide the City with written notice of the date when SMM will commence moving its exhibits, equipment and other personal property when such date is known to SMM (the "Beginning Moving Date") . SMM will remove its exhibits, equipment and other personal property from said building within 240 days of the later of (a) the Beginning Moving Date, or (b) the date of issuance of the C.O. , provided however, that SMM shall have 3 years from the date of issuance of the C.O. to remove its personal property from the lower level of the East Building. As provided in Section 4 .13 hereof, SMM will continue to lease the West Building from the City. Section 6 .2 . Access and Coordination. The City and SMM will cooperate and coordinate their respective construction responsibilities under this Agreement and the Disbursing Agreement so that neither Party nor the public is unreasonably denied or delayed access to needed areas within the Development Area. More specifically, SMM agrees that its construction of the 337479.9 3 7 . , q�- i3�� . SMM Improvements will not unreasonably impair (a) access to property owned by District Cooling, Plastics, Inc. and Ramsey County, (b) traffic on Kellogg Boulevard, (c) the construction of improvements to the Civic Center, and (d) access and utilities to the Civic Center Parking Ramp. More specifically, the City agrees that its construction of the Eagle Parkway Improvements and Shepard Road will not unreasonably impair SMM' s access to the Leased Premises . Section 6 .3 . Utilities . The Parties recognize the following major utilities of NSP, Water Utility, and District Heating and Cooling impact the successful outcome of this Project : (A) NSP. The Parties recognize that removing or relocating underground the existing overhead high voltage lines through the Development Area is an important priority but that the cost of relocation or removal is not included in the City' s contribution under Section 3 .2 hereof or in SMM' s obligations under this Agreement . Before construction of SMM Improvements, the Parties will strongly encourage NSP to contribute to this priority Riverfront initiative by removing or relocating underground Riverfront overhead high voltage lines through and near the Project area at NSP' s expense. The NSP feeder line located in the Project area will be relocated by NSP at SMM' s expense pursuant to the Turn Around Agreement . The Parties agree to cooperate to allow NSP to complete the relocation work as needed in accordance with the timetable for the Project . 331479.9 3 8 . . . � �(��►3t� � � (B) Saint Paul Water Utilitv. SMM agrees to include water conservation as part of the museum programming. (C) District Heating and Cooling. SMM has evaluated the merits of using District Heating and District Cooling for the SMM Improvements, and has determined to use District Heating and District Cooling for the SMM Improvements . Section 6 .4 . Schedule and Timeline. The Parties have agreed to the milestone schedule set forth on Exhibit F attached hereto. No material changes will be made to the schedule without the express written consent of both Parties . The failure of either of the Parties to accomplish the tasks set forth therein at the times set forth therein shall not constitute an event of default under this Agreement, unless such failure independently gives rise to an event of default under another provision of this Agreement . Section 6 .5 . Public Accessibilitv. The Parties recognize the shared goals of increased visitor activity that the SMM Improvements will bring, the unique design challenges of the site, and the importance of visitor accessibility. SNIl�! agrees to keep the Pedestrian Path System, the Grand Stairway, Celebration Plaza and Kellogg Plaza as such terms are defined in Exhibit B-2 attached hereto, open to the public at a minimum during the same hours the City' s public parks are open; provided that the Grand Stairway may be closed to the public during the winter months at approximately the same time as the City closes any similar public improvements such as the stairs on South Wabasha Street, and any part of the Pedestrian Path System, Celebration Plaza and the 331479.9 3 9 . � � q(�- 13�t� � .. Grand Stairway may be closed at other times if, and for so long as is necessary for the safety of the public, as reasonably determined by SMM. SMM shall give at least 5 days notice to the City' s parks and recreational department of its intention to close Celebration Plaza to the public because of scheduled programming in Celebration Plaza, or shall provide a schedule of such closings in advance to the City' s parks and recreational department . Section 6 . 6 . [Reserved] Section 6 . 7 . [Reserved] . Section 6 . 8 . Cooperation Between City, SMM and Project Lenders . The Parties agree to cooperate and provide, in a timely fashion, any information reasonably requested by lenders or the State for the Project . Section 6 . 9 . Execution of Plats/Petitions . The Parties agree to cooperate in order to accommodate the recording of all plats, lot splits and street and alley vacations for the Project . SNIl�! acknowledges that it is solely responsible for obtaining, and for all costs and expenses associated in obtaining, the necessary subdivision approvals, if any (and any other required approvals) to divide the Land into the parcels to be the subject of the Museum Lease and the Ramp Lease. Section 6 . 10 . Termination of Aqreement . Unless the Parties can reach a mutually agreeable solution within 60 days after any of the events described in (i) or (ii) below, either of the Parties may, by prior written notice to the other, terminate this Agreement : (i) if the remediation and clean up costs exceed 331479.9 4 0 . , a(�� 13��e � + $750, 000, and the parties do not agree to a plan to fund such costs as provided in Section 7 .1 (5) hereof, or (ii) if the Parties mutually agree that the preconditions to the release of the City Contribution under Section 3 .4 (3) hereof cannot be met . Upon any such termination, the Parties shall execute any documents needed to terminate this Agreement, the Leases and the Disbursing Agreement, and all obligations of the Parties to each other shall terminate, except for the obligations under Sections 6 . 11 and 8 .4 of this Agreement. Section 6 . 11 . Reimbursement to City. If the Development Agreement is terminated for any of the reasons set forth in Section 6 .10 hereof, or if the Development Agreement is terminated as a result of the occurrence of an Event of Default by SMM hereunder, SMM agrees to reimburse the City for any amount up to $500, 000 which the City has disbursed to SMM for design costs of the SMM Improvements . 331479.9 4 1 . , q l.e—�3�ce < :� . . ARTICLE VII ENVIRONMENTAL MATTERS Section 7 . 1 . Environmental. (1) The Parties agree that any costs associated with remediation and clean up of any Hazardous Substances on or in the Development Area shall be paid as follows : COSTS OF REMLDIATION OR CLEANQP PAID BY (A) First $250, 000 City * (B) Excess over $250, 000 up to $500, 000 City (C) Excess over $500, 000 up to $625, 000 City (D) Excess over $625, 000 up to $750, 000 SMM (2) In the event the costs of clean up or remediation of Hazardous Substances are the responsibility covered under clause (1) (B) above, the City or SMM shall be paid or reimbursed for such costs as follows : (a) if any portion of such costs are paid or payable by the City prior to the date the City transfers the City Deposit to the Trustee for deposit in the City Construction Account, the amount of such costs shall be deducted from the City Deposit (as such term is defined in the Disbursing Agreement) ; (b) if any portion of such costs are paid or payable by the City after the date the City transfers the City Deposit to the City Construction Account, the City may submit to the Trustee a Requisition Certificate in the form attached as Exhibit B to the Disbursing Agreement for payment or reimbursement of such costs from the City Construction Account; or (c) if such costs are paid or incurred by SDM�I after commencement of construction of the SMM Improvements in accordance with clause (4) below, SMM may submit a Requisition Certificate in the form attached as Exhibit A to the Disbursing Agreement to the Trustee for payment or reimbursement of such costs from the City Construction Account. * This amount reduces the City Contribution as provided in paragraph 2 of this Section 7 . 1 . 331479.9 4 2 , � ,, . �1(�-1��t�e , (3) The City has completed a Phase I and Phase II environmental assessment of a portion of the Leased Premises, copies of which have been provided to SMM (the "Environmental Reports") . The City shall proceed with all necessary actions to undertake any necessary Hazardous Substance remediation or clean up as indicated by the Environmental Reports as soon as practicable and shall keep SMM advised of the progress and estimated costs . The City shall not agree to any no action or no association letter or leave any contaminants in place without the consent of SMM (which consent shall not be unreasonably withheld) , and the City shall use its best efforts to make SMM a party to, or addressee of, any no action or no association letters . (4) During the construction of the SMM Improvements, SMM shall undertake any remediation or clean up of Hazardous Substances discovered on the Leased Premises in accordance with the clean up plan approved or to be approved by the Minnesota Pollution Control Agency. Notwithstanding that SMM is undertaking this work, the cost sharing thereof shall be as set forth in clause (1) above. (5) In the event the City notifies SMM that the remediation and clean up costs are estimated by an outside consultant experienced in Hazardous Substance remediation to exceed $750, 000, which notice shall be accompanied by the consultant ' s written estimate, unless a mutually agreeable solution is reached within 60 days, either of the Parties may, upon written notice to 331479.v 4 3 . � . � q(�� 13� the other, terminate this Agreement in accordance with Section 6 . 10 . 331479.9 4 4 • . • � �(�-►3�� ARTICLE VIII PROHIBITIONS AGAINST ASSIGNMENT AND TRANSFER; USE; INDEMNIFICATION Section 8 . 1 . Status of SMM; Transfer of Substantially All Assets . SMM represents and agrees that during the term of the Leases, SMM will maintain its existence as Minnesota nonprofit corporation and that it will not dispose of all or substantially all of its assets, except as otherwise provided in the Leases . Section 8 .2 . Prohibition Against Transfer of Property and Assignment of Agreement . SMM covenants and agrees that during the term of the Leases, except (a) in the ordinary course of business with respect to furniture, fixtures, equipment, exhibits, or other personal property acquired in whole or in part with the proceeds of the City Contribution or the State Grants, or (b) leased or rented property or equipment other than property leased pursuant to the Leases, or (c) by way of security for, and only for, the purpose of obtaining financing necessary to enable it or any successor in interest to perform its obligations with respect to constructing the SMM Improvements under this Agreement, and on the condition that all applicable terms and conditions of the Leases are complied with, it has not made or created and will not make or create or suffer to be made or created any total or partial sale, assignment, conveyance, or lease or any trust or power, or transfer in any other mode or form of or with respect to its interest in or its rights under this Agreement, the Leases, the Leased Premises, or the SMM Improvements or any part thereof or any interest therein, or any 331479.9 4 5 . , . � • q(� -13� contract or agreement to do any of the same, without the prior written approval of the City. Section 8 .3 . Restrictions on Use. The Parties agree that the Leased Premises shall be used only for a science museum, a parking ramp and related uses, as more specifically set forth in the Leases . Section 8 .4 . Release and Indemnification. (a) To the fullest extent permitted by law, SMM shall, and hereby does, indemnify, save, hold harmless, and defend the City, and its officials, employees, representatives and agents, but only when acting in their capacities as such (collectively, the "Indemnified Party" or "Indemnified Parties") , from and against all claims, costs (including reasonable attorneys fees to the extent provided in clause (e) below) liabilities, losses or damages suffered or incurred by any of the Indemnified Parties arising from or as a result of any loss, injury, death, or damage to persons or property arising out of the use, possession, construction of improvements, operation or maintenance of the Leased Premises or any part thereof, whether such loss, injury, death, or damage shall be caused by or in any way result from or arise out of any act, omission, or negligence of the Indemnified Parties . (b) SMM hereby waives and releases all claims against the Indemnified Parties for damages to any building and improvements which are now on or hereafter placed or built on the Leased Premises and to the property of SDM�I in, on, or 331479.9 4 6 � , • � ql�-13��e about the Leased Premises . SMM also agrees that it will not assert against the Indemnified Parties in any legal proceeding any claim, cross-claim or third party claim for which SMM is obligated under the provisions of Section 8 .4 (a) hereof to provide indemnification to the Indemnified Parties . (c) Notwithstanding the provisions of clauses (a) and (b) above, the provisions of clause (a) and (b) above shall not apply to claims, costs, liabilities, losses or damages which are caused by the gross negligence or willful or intentional misconduct of the Indemnified Parties . No person or entity other than the Indemnified Parties shall be deemed to have any benefit whatsoever from the agreements contained in clauses (a) and (b) above, other than any indirect benefit accruing as a result of their status as a taxpayer or resident of the City, and shall not be deemed to be a third party beneficiary of the agreements of SMM contained in clauses (a) and (b) above. (d) Nothing in this Article VIII shall be construed to, and shall not, expand the City' s maximum liability over the limits set forth in Minnesota Statutes, Chapter 466, as amended from time to time, or any other or successor law which has the effect of limiting the City' s liability. (e) Promptly after receipt by an Indemnified Party of notice of the commencement of any action for which SMM has indemnified the Indemnified Parties hereunder, the Indemnified Party will notify SMM in writing of the 337479.9 4 7 . . .. � q�,-�3�4 . commencement thereof, and, subject to the provisions hereinafter stated, SMM shall assume, at its expense, the defense of such action (including the employment of counsel, who shall be counsel reasonably satisfactory to the Indemnified Party) insofar as such action shall relate to a�y alleged liability for which SMM has indemnified the Indemnified Parties hereunder. The Indemnified Party shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the expense of SMM unless (i) the employment of such counsel has been specifically authorized by SMM, or (ii) the named parties to any such action (including any impleaded parties) include more than one of the Indemnified Parties and a conflict of interest among SMM and Indemnified Parties exists and, as a result, SMM and the Indemnified Parties cannot adequately be represented by the same counsel . In the case of such a conflict of interest, SNIl�I shall not have the right to assume the �defense of such action on behalf of such Indemnified Party and the Indemnified Party shall have the right to select separate counsel, at the expense of SMM, but subject to the limitation set forth in the following sentence, to assume such legal defense and to otherwise participate in the defense of such action on behalf of the Indemnified Party. In connection with any one such action or separate but substantially arising out of the same general allegations or circumstances, SNIl�! shall not be liable for 331479.9 4 8 • , .� � q(�—i 3�c� the fees and expenses of more than one separate firm of attorneys for all such Indemnified Parties, which firm shall be reasonably acceptable to SMM and shall be designated in writing by the Indemnified Parties . SMM shall not be liable for any settlement of any such action effected without its written consent . If such action is settled with the written consent of SMM, or if there be a final judgment for the plaintiff in any such action, with or without the consent of SMM, SDM�! agrees to indemnify and hold harmless any Indemnified Party from and against any loss or liability by reason of such settlement or judgment, but only to the extent provided in clause (a) above. This indemnity includes reimbursement for expenses reasonably incurred by any of the Indemnified Parties in investigating the claim and in defending it if SDM�I declines to assume the defense. 331479.9 4 9 . .� q�_�3� . � ARTICLE IX EVENTS OF DEFAULT Section 9 .1 . Events of Default. (1) The occurrence of any of the following shall be a "Default" under this Agreement : (a) Failure of SMM to observe, perform or comply with any provision, term, covenant, condition, obligation, warranty or agreement on its part to be observed or performed or complied with by SNIM under this Agreement; or (b) The occurrence of a Default under either of the Leases, provided that a Default under the Ramp Lease shall not constitute a Default hereunder if the defaulting party under the Ramp Lease is not SMM; (c) Subject to State and federal laws relating to bankruptcy, SDM�I shall (A) file any petition in bankruptcy or for any reorganization, arrangement, composition, readjustment, liquidation, dissolution, or similar relief under the United States Bankruptcy Act of 1978, as amended or under any similar federal or state law; or (B) make an assignment for the benefit of its creditors; or (C) become insolvent or be adjudicated a bankrupt; or if a petition or answer proposing the adjudication of SMM, as a bankrupt or its reorgani- zation under any present or future federal bankruptcy act or any similar federal or state law shall be filed 337479.9 5 0 . . .? � q�e-�3�C� in any court and such petition or answer shall not be discharged or denied within ninety (90) days after the filing thereof; or a receiver, trustee or liquidator of SMM, or of the Project, or any part thereof, shall be appointed in any proceeding brought against SMM, and shall not be discharged within ninety (90) days after such appointment, or if SMM shall consent to or acquiesce in such appointment; or (d) The occurrence of an Event of Default under the Loan Agreement dated July 29, 1996 between Lessor and � Lessee. Section 9 .2 Notice of Default . (1) Except with respect to a Default specified in subsection 9 .1 (c) , for which there shall be no cure period, no Default shall be an Event of Default until and unless the City has given SDM�I written notice of the Default and SMM has failed to cure such Default after receipt of such written notice within the time period specified in paragraph (2) below or, if applicable in paragraph (3) below. (2) For those Defaults which are Defaults under the Leases, regardless of whether they are also described in Section 9 . 1 hereof, the notice and cure period shall be as specified in the Leases, and for all other Defaults under this Agreement, the notice and cure period shall be sixty (60) days prior to the issuance of a C.O. and ninety (90) days after the issuance of the C.O. 331479.9 5 1 , � ,` . q(�-t 3-Ke (3) Notwithstanding the provisions of paragraph (2) above, (a) in the event that a Default occurs prior to the issuance of the C.O. and cannot be cured within the cure period provided in paragraph (2) above, and in the event that SDM�I has commenced the action necessary to cure the Default during the applicable cure period provided in paragraph (2) above, then SMM shall automatically have an additional cure period not to exceed thirty (30) days, without the written consent of the City, on the condition that SMM diligently pursues the cure during said additional thirty (30) day period; and (b) in the event that a Default occurs after the issuance of the C.O. and cannot be cured within the cure period provided in paragraph (2) above, and in the event that SMM has commenced the action necessary to cure the Default during the applicable cure period provided in paragraph (2) above, then SMM shall automatically have an additional cure period not to exceed thirty (30) days, provided that such additional cure period may be greater than 30 days, but only with the written consent of the City, which consent shall not be unreasonably withheld or delayed. (3) Notwithstanding the provisions of paragraph (2) above, in no event shall any extension of a cure period be greater than the cure period available under the Grant Agreements if the Default by SMM hereunder also causes a default or event of default by the City under the Grant Agreements . Section 9 .3 Default and Termination. (a) Prior to the issuance of the C.O. upon the occurrence and during the continuance of an Event of Default 331479.9 5 2 � , . ' ` c�- t3�(� under this Agreement, but subject to any contrary provision in the Ramp Lease, the City, in addition to the other rights or remedies it may have, shall have the immediate right to terminate this Agreement and the Leases by delivery of written notice of termination which notice shall be executed by the Mayor of the City. (b) After the issuance of the C.O. , upon the occurrence and during the continuance of an Event of Default under this Agreement, but subject to any contrary provision in the Ramp Lease, and subject to the provisions of Section 9 .5 hereof, the City, in addition to the other rights or remedies it may have, shall have the immediate right to terminate this Agreement . Section 9 .4 Additional Remedies. Notwithstanding anything in this or any other agreement to the contrary, upon the occurrence, and during the continuance of a Default, in addition to the remedies in Section 9 .3 and this Section 9 .4, the City may immediately refrain from making any payments from the City Construction Account and the State Grant Account as those terms are defined in the Disbursing Agreement. In addition, subject to anything to the contrary in the Ramp Lease, upon the occurrence and during the continuance of an Event of Default under this Agreement, the City may, (a) in addition to the remedies in Section 9 .3 and this Section, exert any remedies it may have in law or equity, and (b) if the State issues a demand, commences an action, actually receives payment from the City, or exercises any other remedies against the City pursuant to the terms of the 331479.9 5 3 , , . . . �[(�-�3� Grant Agreements, then the City may also similarly demand, commence an action, exercises any other remedies against, and be immediately entitled to receive from SMM, or do to SMM that which the State does to the City on the condition that such demand, action, payment or other action by the State against the City is caused by a Default by SMM under this Agreement or the Leases . Section 9 .5 Special Termination Procedure. After the issuance of a C.O. , the City agrees that it will not exercise the remedy of termination of this Agreement or the Leases provided in Section 9 .3 hereof on the condition that SMM does each of the following: a) Within ninety (90) days of the occurrence of a Default SMM shall retain, at its sole expense, an independent consultant reasonably acceptable to the City (hereinafter the "Consultant") ; b) Within sixty (60) days of the retention of the Consultant SMM shall have delivered to the City a written report of the Consultant analyzing its operations at the Leased Premises (the "Consultants Report") ; c) Within fifteen (15) days of the delivery of the Consultants Report SMM shall have met with the City to discuss the findings and recommendations of the Consultants Report; provided, however, that in the event that SMM has not retained the Consultant, delivered the Consultants Report, or met with City, within each of the required time periods, then the City 331479.9 5 4 , . �• � 9(c-t314 shall have the right to proceed to exercise the remedy of termination of this Agreement and the Leases without regard to the succeeding provisions of this Section 9 .5 . If at any time during the process set forth above, the Default has been cured, SMM shall not be required to proceed with the remaining portion of the process set forth in clauses (a) , (b) and (c) above. In the event that SMM has retained the Consultant, delivered the Consultants Report and met with the City as required hereinabove, the City further agrees that it will not exercise the remedy of termination of this Agreement and the Leases unless and until (i) the City Council has considered a resolution at which meeting representatives of SMM shall have the right to be heard; (ii) the City Council has adopted a resolution authorizing the termination of the Development Agreement and the Leases, and (iii) SMM has failed to cure the Event of Default within thirty (30) days of the adoption of such resolution. SNIl�! acknowledges and agrees that : a) the City is not required to accept or adopt all or any portion of any recommendations in the Consultants Report; and b) in the event that the City determines, in its sole discretion, to accept any of the recommendations in the Consultants Report, the acceptance of which requires an amendment to this Development Agreement or the Leases, or a waiver of the Default or Event of Default, the City shall have the right, as a condition to agreeing to any such amendment or waiver, to impose any conditions City deems appropriate, in its sole discretion. 331479.9 5 5 • � y• � q(�- i3�4 � Section 9 . 6 City' s Right to Perform. (1) In addition to the rights and remedies set forth in this Article IX, in the event that an Event of Default by SMM shall have occurred and be continuing, the City may at the City' s option but without any obligation, take any action to perform the obligations of SNIl�I which gave rise to the Event of Default or with respect to which SMM is otherwise in Default under this Agreement, and the City shall not be liable, or be held liable or in any way be responsible for any loss, inconvenience, annoyance, or damage resulting to the SMM on account thereof, other than for the City' s gross negligence or willful or intentional misconduct . SPM�I shall repay to the City on demand the entire expense of the City' s performance, together with interest at the rate of ten percent per annum accruing from the date of any disbursement . (2) The City shall be permitted to enter the Leased Premises while exercising any right given to it by the terms of this section. Any act or thing done by the City pursuant to the provisions of this section shall not be or be construed to be a waiver of any such Default or Event of Default by the City, or as a waiver of any covenant, term, or condition herein contained or the performance thereof, or of any other right or remedy of the City, hereunder or otherwise. Section 9 . 7 City Defaults and SMM Remedies . (1) In the event that City (a) fails to observe, perform or comply with any provision, term, condition, covenant, agreement or warranty required to be observed, performed or complied with by the City under this Agreement or the Leases, or (b) fails to 331479.9 • 5 6 . � �• q�-�3�� observe, perform or comply with any obligation, provision, term, covenant, condition, or agreement to be observed, performed or complied with by the City under the Grant Agreements or the State Disbursing Agreement, unless the City' s failure is the result of a Default by SMM under this Agreement or either of the Leases, then a City Default shall be deemed to exist under this Agreement . If (x) the City fails to cure such City Default within sixty (60) days after the receipt of written notice of the City Default from SMM, or (y) if a City Event of Default occurs under Sections 3 . 1 (2) , 3 .3 (3) , 3 .4 or 3 . 7 hereof, then a City Event of Default shall exist under this Agreement . Upon the occurrence and during the continuance of a City Event of Default, SMM may exercise any of the following remedies : (a) subject to Section 9 . 8 hereof, terminate this Agreement and the Leases by delivery of written notice to City; (b) subject to Sections 3 . 1 (2) and 10 . 13 hereof, commence an action at law to recover the damages incurred by SNIl�! and caused by the City Event of Default; or (c) commence an action in equity to compel the performance by City of those actions or inactions which serve as the basis of the City Event of Default; and (d) exercise any other right or remedy it may have at law, in equity or under this Agreement or the Leases . Section 9 . 8 . Preconditions to Termination of Agreement by SMM. In the event that SMM intends to terminate this Agreement pursuant to Section 9 .7 hereof, it shall not terminate this 331479.9 5 7 � � . •� � q�-�3�� Agreement unless and until (a) a resolution authorizing termination of this Agreement has been adopted by the governing body of SMM, (b) written notice of the adoption of such resolution and a copy thereof has been sent to the City, and (c) the City has failed to cure the Event of Default within 30 days after the giving of such notice. Section 9 .9 . Effect of Delav. No delay or omission by either party to exercise any 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 . Section 9 . 10 . No Implied Waiver. In the event any agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 9 .11 . No Remedy Exclusive. No remedy herein conferred upon or reserved to the Parties is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a 337479.9 5 8 r .' . � � g(�-}3`t waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient . 331479.9 5 9 , ,. . ��- i3�C� ARTICLE X MISCELLANEOUS Section 10 . 1 . Conflicts of Interest . No member of the governing body or official of the City shall have any financial interest, direct or indirect, in this Agreement, the Leased Premises, the SMM Improvements, or any contract, agreement or other transaction contemplated to occur or be undertaken thereunder or with respect thereto, nor shall any such member of the governing body or other official participate in any decision relating to this Agreement which affects his or her personal interests or the interests of any corporation, partnership or association in which he or she is directly or indirectly interested. No member, official, employee or trustee of the City or SMM, as the case may be, shall be personally liable in the event of any default or breach by the City or SMM of any of their respective obligations under the terms of this Agreement . Section 10 .2 . Titles of Articles and Sections . Any titles of the several parts, articles and sections of the Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions . Section 10 .3 . Notices arid Demands . Except as otherwise expressly provided in this Agreement, a notice, demand or other communication under this Agreement by either party to the other shall be sufficiently given when it is dispatched by registered or certified mail, postage prepaid, return receipt requested, and 331479.9 6 0 ' . . � G(�,� �3�ce (a) in the case of SNIl�I, until the Museum is completed and occupied by SMM, as evidenced by a letter from SNIl�! to the City is addressed to: 30 East Tenth Street St . Paul, Minnesota 55101 Attn: President and thereafter to the address of the Museum as set forth in a letter to the City from SMM, to the attention of its President . (b) in the case of the City, is addressed to the City at. 1300 City Hall Annex 25 West Fourth Street Saint Paul, Minnesota 55102 Attn: Director, Planning and Economic Development or at such other address with respect to any such party as that party may, from time to time, designate in writing and forward to the other, as provided in this Section. Notice by mail shall be deemed received two (2) days after mailing. Section 10 .4 . Counterparts . This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 10 .5 . Law Governina. This Agreement will be governed and construed in accordance with the laws of the State. Section 10 . 6 . Legal Opinions and Delivery of Documents . Upon execution of this Agreement, each party shall, upon request of the other party, supply the other party with an opinion of its legal counsel to the effect that this Agreement has been duly authorized and executed by, and is valid and binding upon, such party, and enforceable against such party in accordance with its 331479.9 6 1 , ,. . Cj(�- �'3�� � ' terms . In addition, upon execution and delivery of this Agreement there shall also be delivered to each of the Parties to this Agreement the following documents: (1) Executed copies of the Disbursing Agreement, (2) First Source Employment Participation Agreement executed by SMM in substantially the form attached hereto as Exhibit H. Section 10 . 7 . Representatives . Except as otherwise provided herein, all approvals and other actions required of, granted or taken by the City shall be effective upon action by the City Representative, or his or her designee. All actions required of or taken by SMM shall be effective upon action by a duly authorized officer of SMM. Section 10 . 8 . Term. The term of this Agreement shall be from the day and year first above written until the earlier of the (a) date this Agreement is terminated pursuant to Section 9 .3 hereof, (b) the date the Parties terminate this Agreement in accordance with the provisions of Section 6 . 10 hereof, or (c) the date both of the Leases expire or are terminated in accordance with their terms . Section 10 . 9 . Survivorship of Obligations . The covenants and agreements of SMM in Sections 6 . 11 and 8 .4 hereof shall survive the expiration or termination of this Agreement . Section 10 . 10 . Effect of Covenants, Etc. All covenants, stipulations, promises, agreements, and obligations of the City contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the City 331479.9 6 2 . ,. . q�- ���� � � and not of any governing body member, officer, agent, servant or employee of the City in the individual capacity thereof . All covenants, stipulations, promises, agreements, and obligations of the SMM contained herein shall be deemed to be the covenants, stipulations, promises, agreements and obligations of the SMM and not of any governing body member, officer, agent, servant or employee of the SNIN! in the individual capacity thereof . Section 10 . 11. Superseding Effect . This Agreement supersedes, in its entirety, the Memorandum of Understanding between the City and SMM dated July 12, 1995 . Section 10 . 12 . Best Efforts . Notwithstanding that this Agreement sets forth dates by which the Parties hereto are required to perform certain of their obligations hereunder, the Parties agree to use all reasonable efforts to perform their obligations at the earliest feasible date. Section 10 .13 . Waiver of Certain Damages . IN CONSIDER.ATION OF THE CITY AND S� MARING T813 COb�ITMENTS SfiT FORTS IN TIiIS AGREEMENT, Sb� AND T8E CITY HEREBY WAIVE AND FOREVF:R GIVS IIP ANY RIGHT TO CLAIM OR RECOVER DAMAGES FOR LOST INCOME OR LOST PROFITS AS A RESIILT OF ANY BREACH OF THIS AGREEMEI�TT OR ANY AGREEMENT REFERRED TO HEREIN WSICIi ARISE OIIT OF AN EVENT OCCURRING PRIOR TO T8]3 OPENING OF TI3E MIISEUM TO T8E PUBLIC TVEN IF SIICIi OPENING IS DELAYRD AS A RESIILT OF ANY SUCH BREACH. TI3E AGREEMENTS AND WAIVERS SET FORTB HEREIN SHALL SIIRVIVE THE CONSLTD�ATION OF THL TR�+�I�TSACTIONS DESCRIBED IN THIS AGREEMENT AND/OR THl3 TERbiINATION OF THIS AGREEMENT. 331479.9 6 3 , , .x • I 3�1.e . q ce� IN WITNESS WHEREOF, the City has caused this Agreement to be duly executed in its name and on its behalf, and SMM has caused this Agreement to be duly executed in its name and on its behalf, all on or as of the date first above written. Approved as to form: CITY OF SAINT PAUL By Its Mayor Assistant City Attorney By Its Clerk By Its Director of Planning and Economic Development By Its Directar, Department of Finance and Management Services Signature page for the Development Agreement dated as of , 1996 between the City of Saint Paul, Minnesota and The Science Museum of Minnesota. 337479.9 6 4 •� . �� � a�-�3�4 THE SCIENCE MUSEUM OF MINNESOTA By Its By Its Signature page for the Development Agreement dated as of , 1996 between the City of Saint Paul, Minnesota and The Science Museum of Minnesota. 331479.9 6 5 �,. ►h � ��_ �3��p STATE OF MINNESOTA ) ) . ss COUNTY OF R.AMSEY ) The foregoing instrument was acknowledged before me this day of , 1996, by , , the Clerk, and the Mayor, the Director of Planning and Economic Development and the Director, Department of Finance and Management Services, respectively, of the City of Saint Paul, Minnesota, a municipal corporation organized and existing under the Constitution and laws of the State of Minnesota, on behalf of said City. Notary Public 331479.9 6 6 v Y. .�'" `�� 1��C STATE OF MINNESOTA ) ) . ss COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of , 1996, by , the and , the of The Science Museum of Minnesota, a Minnesota non-profit corporation, on behalf of said corporation. Notary Public 331479.9 6 7 ,�:_� � . y • 9i�—�3—�c� �.�� * `Y (9��i��� t Draft Dated November 4, 1996 L E A S E (Museum) THIS LEASE is entered into this day of , 1997, between the CITY OF SAINT PAUL, MINNESOTA, a Minnesota municipal corporation (the "Lessor" or "City") , and THE SCIENCE MUSEUM OF MINNESOTA, a Minnesota non-profit corporation (the ��Lessee") . 1. PURPOSE. The Lessor believes that it serves the public interest of the City to promote and provide for facilities for recreation, public educational and cultural activities in the City. The Lessor believes that a science museum furthers that public purpose, and that a science museum in the City is an important recreational, educational and cultural activity for families and children from throughout the State of Minnesota, which is a governmental program authorized by Laws of Minnesota, 1994, Chapter 643, Section 81, and established by official action of the City of St . Paul by Council Resolution File No. 95- (the "Governmental Program��) . This Lease is being entered into in accordance with that certain Development Agreement between Lessor and Lessee dated , 1996 (the "Development Agreement") the provisions of Minnesota Statutes, Sections 471 . 191 and 16A. 695 and rules, regulations and orders issued pursuant thereto in order to carry out this public purpose and it is the custom of the parties that the Lessee shall implement the goals of the Lessor in serving the public purpose as herein provided. All capitalized terms that are not defined herein shall have the meaning ascribed to those terms in the Development Agreement, or to the extent provided in Section 3 hereof, the Grant Agreements . 2 . DEMISE AND DESCRIPTION OF PREMISES . In consideration of the rents, mutual promises, and covenants contained herein, the Lessor hereby leases to the Lessee, and the Lessee hereby leases from the Lessor, those certain parcels of real property legally described on Exhibit A attached hereto (the "Premises") , together with all improvements on the Premises, all located in the City of Saint Paul, Minnesota. The Premises are leased to Lessee on an AS-IS basis and Lessee acknowledges that Lessor has made no representations or warranties as to the condition, quality, buildability or suitability for development of the Premises . Lessee acknowledges that Parcel has been leased by Lessor to [Plastics] ("Plastics") until August 15, 1998 and that Lessee will not have access to that parcel until August 15, 1998, or, if earlier, when Plastics vacates said property. Lessor agrees to give Lessee exclusive possession of said parcel on or before such date and agrees that subject to the provisions of 330079.7 , . ��� i �-�� Y t Section 3 . 1 (2) of the Development Agreement, to demolish and clear said parcel by such date. Lessor' s failure to comply with the preceding sentence shall constitute an Event of Default under this Lease and the Development Agreement and Lessor shall not be entitled to any notice or cure period under this Lease and the Development Agreement . Lessor acknowledges that Lessee intends to lease from Lessor by separate lease (the "Ramp Lease") entered into simultaneously with this Lease certain real property adjacent to the Premises (the "Ramp Parcel") on which Lessee intends to construct a parking ramp containing at least 700 spaces (the "Ramp") which will be immediately east of the existing Civic Center parking ramp. In the event that Lessee desires to place a mortgage against its interest in the Ramp, Lessee agrees to be responsible for Lessor' s cost of preparing, and agrees to join in and be bound by, a declaration of easements (the "City Declaration��) to be recorded against both the Ramp Parcel and the Premises prior to placement of the Mortgage creating reciprocal easements for access, repair, maintenance, utilities, support, ingress and egress, and such other matters reasonably determined by Lessor to be necessary or appropriate and reasonably acceptable to Lessee and the Ramp Mortgagee; and which declaration shall also allocate responsibility for repair and replacement of common areas, party walls and other joint, contiguous or overlapping structural or operational areas . Additionally, Lessee will expressly assume and agree to be bound by and to perform all obligations of the owner of the Premises which are set forth in the City Declaration. Lessee also acknowledges that the Premises will be subject to the Declaration described in Section 3 hereof, and acknowledges that its rights in the Premises are subject thereto. 3 . GRANT AGREEMENT. The Lessor and the Lessee acknowledge that a portion of the costs of design and construction of the improvements on the Premises will be funded through the proceeds of two state grants in the amounts of $1, 000, 000 and $30, 000, 000 from the State of Minnesota acting by and through its Department of Administration (the '�State") made to the Lessor pursuant to the terms of a Pre-Design Grant Agreement and a Construction Grant Agreement (the "Grant Agreements") , copies of which are attached hereto as Exhibits B-i and B-2 . The following capitalized terms : "Finance Commissioner, " "G.O. Bonds, " "G.O. Compliance Legislation, " ��Declaration, " "Commissioner' s Order, " "Governmental Program" and "Grants" shall have the meanings assigned thereto in the Grant Agreements. Lessor agrees to comply with all terms and conditions of the Grant Agreements (unless Lessor' s failure to comply is the result of Lessee' s failure to comply with the terms and conditions of this Lease or 330079.7 2 r • ��- �3�Y' y � the Development Agreement) and Lessee agrees to cooperate fully to assist Lessor in so complying. Lessor and Lessee further agree that in the event that Lessor fails to comply with any provision in the Grant Agreements then, if Lessor fails to take such action within sixty (60) days of Lessor' s receipt of Lessee' s written demand or the State' s notice of default, Lessee shall have the right to take such action and to charge Lessor for the actual cost incurred by Lessee in taking such action together with interest at the rate of ten percent (10%) per annum accruing from the date of any disbursement . 4 . TERM AND OPTIONS TO RENEW. The initial term of this Lease shall be for twenty (20) years, commencing on the date of this Agreement and ending , unless sooner terminated as hereinafter provided. Notwithstanding the foregoing sentence, in the event that Lessee completes construction of the Museum and the Ramp as required by the Lease and the Development Agreement, then Lessor and Lessee agree, promptly after substantial completion of the SMM Improvements, to amend this Lease to increase the ending date of the initial term to that date which is thirty (30) years from the date of this Lease. This term is acknowledged to be substantially less than the useful life of the improvements to be constructed on the Premises . As used herein the expression "term" refers to such initial term and to any renewal thereof as hereinafter provided. Lessee acknowledges that, prior to said completion of the Museum and the Ramp, the term of this Lease is less than the term which gives Lessee the right of redemption after lease termination provided in Subdivision 2 of Minn. Stat. § 504 .02 . The Lessor grants to the Lessee, subject to the conditions set forth below, the right and option to renew this Lease for four successive periods of twenty (20) years each, subject to and on all of the terms and conditions contained herein, including but not limited to, the condition that Lessee is complying with Lessor' s purpose as set forth in Section 1 above. These options shall be exercised by the Lessee by a written notice of intent to renew by the Lessee in the year prior to each renewal year. In no event shall the Lessee be entitled to renew the term hereof, or any renewal term, even though such notice is timely given, (a) if either (i) the Lease has been terminated, or (ii) an Event of Default has occurred and is continuing as of the date of the expiration of the initial term hereof, or the then applicable renewal term, and (b) unless Lessor shall determine by official action that such renewal continues to carry out the Lessee' s Governmental Program. Lessee' s right to exercise the second and subsequent renewal terms is further conditioned upon Lessee having properly exercised the next previous renewal term. 330079.7 3 r . `��-i3�� , . Notwithstanding any other provision of this Section 4 to the contrary, Lessee shall not have the right to exercise any of the renewal rights set forth herein unless the Ramp Lease has simultaneously been renewed by the Lessee; provided that this provision shall not apply if the Lessee is no longer in possession of the Ramp under the Ramp Lease. 4 .A. STATUTORY TERMINATION. Notwithstanding any other provisions of this Lease to the contrary, if the Governmental Program is terminated or changed in such a manner as to cause this Lease and the operation of the Museum to be inconsistent with the changed Government Program, this Lease may, at the option of Lessor, be terminated by 480 days written notice to Lessee, provided however that Lessor agrees that it will not terminate or change the Governmental Program unless required to do so by applicable State law. Any termination must be approved by the Lessors City Cou�cil, and provided further that any termination pursuant to this Section 4 .A will be deemed automatically rescinded and of no force or effect if within said 480 day period the State law requiring the Governmental Program to be terminated or changed is repealed or modified in such a manner as to permit the Governmental Program to continue in a form that does not cause this lease and operation of the Museum on the Premises to be inconsistent therewith. The parties agree to cooperate in good faith to attempt to obtain State legislation that permits the Governmental Program and this Lease to continue. 5 . RENT. No rent is required to be paid to the Lessor by the Lessee for the initial term and any renewal term provided, however, that anything else contained herein or elsewhere notwithstanding, it is the intention of the parties that this Lease is a complete "net" lease and that all costs and expenses, of any nature or kind whatsoever, attributable to the Premises or Lessee' s use thereof during the term hereof, or any renewal term, shall be the sole responsibility of the Lessee, and the Lessor shall not have any liability therefor, provided that damage to persons or property shall be governed by Section 22 hereof . 6 . PAYMENT OF ASSESSMENTS . a. Taxes as Additional Rental. As "Additional Rent" hereunder, the Lessee shall pay and discharge as they become due, promptly and before delinquency, all real estate taxes, assessments, rates, charges, license fees, municipal liens, levies, excises, or imposts, whether general or special or ordinary or extraordinary, of every name, nature, and kind whatsoever, including all governmental charges of whatsoever name, nature, and kind which shall be levied, assessed, charged, or imposed or which may become a lien or charge on or against the Premises or any part thereof, the leasehold 330079.7 4 � . . ��—i3�c� , � of the Lessee herein, any building or buildings, or any other improvements now or hereafter thereon or on or against the Lessee' s estate hereby created which may be a subject of taxation, during the entire term hereof, including any renewal term, excepting only those taxes hereinafter specifically excepted in subsection c. b. Assessments Affecting Improvements . Specifically, but without any way limiting the generality of the require- ments of subsection a. , the Lessee shall pay all special assessments and levies or charges made by any municipal or political subdivision for local improvements and may pay them in cash as they shall fall due and before they shall become delinquent, or in installments each year as assessed by any such municipal or political subdivision. If, by making any such election to pay in installments, any such installments shall be payable after the termination of this Lease or any extended term thereof, such unpaid installments shall be prorated as of the date of termination, and amounts payable after such date shall be paid by the Lessor. All of the taxes and charges under this section shall be prorated at the commencement and expiration of the term hereof . c. Taxes Excepted. Anything in this section to the contrary notwithstanding, the Lessee shall not be required to pay any estate, gift, inheritance, succession, franchise, income, or excess profits taxes which may be payable by the Lessor or by the Lessor' s legal representatives, successors, or assigns, nor shall the Lessee be required to pay any tax that might become due on account of ownership of property other than the Premises which may become a lien on the Premises or collectible out of the Premises . d. Contesting Taxes . If the Lessee shall in good faith desire to contest the validity or amount of any tax, assessment, levy, or other governmental charge herein agreed to be paid by the Lessee, the Lessee shall be permitted to do so and to defer payment of such tax or charge, the validity or amount of which the Lessee is so contesting, until final determination of the consent, on giving to the Lessor written notice thereof prior to the commencement of any such contest, provided, however, that Lessee shall be absolutely obligated to pay such tax or charge no later than 30 days before such unpaid tax or charge will result in a forfeiture of the Premises or any part thereof . If Lessee does undertake any such contest it shall diligently pursue such contest to completion. 330079.7 5 L � �c�:— i��� � � e. Disposition of Rebates. All rebates on account of any such taxes, rates, levies, charges, or assessments required to be paid and paid by the Lessee under the provisions hereof shall belong to the Lessee, and the Lessor will on the request of Lessee execute any receipts, assign- ments, or other acquittances that may be necessary on the Premises in order to secure rebates that may be received by the Lessor. f . Lessor' s Right to Pay Taxes on Behalf of Lessee. In the event the Lessee shall fail to comply with the preceding terms of this section, the Lessor may, but shall not be obligated to, pay any such taxes or assessments and charge it, plus interest on such amount at a rate of 10% from the date paid by Lessor, as Rent immediately due and payable. g. Receipts . The Lessee shall at the request of Lessor obtain and deliver to the Lessor receipts or duplicate receipts for all taxes, assessments, and other items required hereunder to be paid by the Lessee, promptly on payment thereof . h. Acknowledgement . Lessee acknowledges that Lessor has made no representations or warranties of any kind with respect to the amount of any real estate taxes, special assessments or other charges which may be levied against the Premises throughout the initial term, or any renewal term, of this Lease. Lessor agrees to cooperate with Lessee in the taking of any reasonable action determined by Lessee to be necessary to obtain or maintain tax exempt status for Lessee' s use of the Premises provided, however, that Lessee shall be responsible for all actual out of pocket costs and expenses incurred by Lessor in connection with such cooperation. 7 . PAYMENT OF UTILITIES . As Additional Rent, the Lessee shall fully and promptly pay for all water, gas, heat, light, power, telecommunications and all other utilities of every kind furnished to the Premises throughout the term hereof, and the Lessor shall have no responsibility of any kind for any thereof . 8 . REPORTING AND PROGR.AM OVERSIGHT. a. During construction of the SMM Improvements, Lessee shall promptly submit to Lessor, upon written request, such documentation, information and reports as are needed by Lessor to fulfill its reporting requirements under the Grant Agreements . 330079.7 6 ! � `�c.e - �3�c� t i b. (1) On or before November 1 of each year, commencing on the November 1 first following the Completion Date, Lessee shall submit to Lessor a written report consisting of the following documents and information (the "Annual Report") : A) A Certification by the Lessee that the SMM Improvements have been used for a science museum and related and ancillary activities for the last fiscal year of the Lessee. B) The Annual Audited Financial Statement of the Lessee for preceding fiscal year of the Lessee and a summary of major improvements or . repairs to the SMM Improvements . C) A report and evaluation of major programming activities at the SMM Improvements from the preceding fiscal year. D) Lessee' s annual budget for the SMM Improvements including revenues and expenses and major improvements or repairs to the SMM Improvements for the next fiscal year. E) The Lessee' s cashflow for funding operations of the SNIl�I Improvements for the next three years . (2) The Lessee agrees to meet with the Lessor during the months of November in each year after submission of the Annual Report to discuss its contents . (3) The Lessor, through the Director of Planning and Economic Development or his or her successor or designee, shall approve or disapprove the initial plan and budget and the Annual Report of the Lessee based upon Lessor' s findings as to whether the Lessee is carrying out the Governmental Program. 9 .A. LESSEE REPRESENTATIONS, WARRANTIES AND COVENANTS . Lessee covenants with and warrants and represents to Lessor as follows: a. It has legal authority to enter into, execute, and deliver this Lease, and that it has taken all corporate and other actions necessary and incident to its execution and delivery of such documents. 330079.7 7 , , �(.e-l 3�(� . � b. It will comply with the Declaration and all of the terms, conditions, covenants, requirements, and/or warranties in this Agreement, at all times during the term hereof . c. It will cooperate fully with Lessor to assist Lessor in complying with any of the terms, conditions, covenants, requirements and/or warranties in the Grant Agreements, the G.O. Compliance Legislation, and the Commissioner' s Order. d. It has made no material false statement, or material misstatement of fact, in connection with its receipt of this Lease, and all of the information previously submitted to Lessor and the State, or to be submitted to the Lessor or the State in the future, relating to this Lease or the Grant given to the Lessor or the disbursement of any of the proceeds of the Lease or Grant, is and will be true, complete and correct by Lessee in all material respects . e. The execution and delivery of this Lease by Lessee will not constitute a violation of any provisions of its Articles of Incorporation or By-Laws, or of the laws of the State of Minnesota, and there are no actions, suits, or proceedings pending, or to its knowledge threatened, before or by any judicial body or governmental authority against or affecting it relating to the Premises, and it is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority which would impair its ability to enter into this Lease, or to perform any of the acts required of it in this Lease. f . Neither the execution or delivery of this Lease, nor compliance with any of the terms, conditions, requirements, or provisions contained herein, is prevented by, is a breach of, or will result in a breach of any term, condition, or provision of any agreement or document to which it is now a party, or by which it, or any of its properties, is bound. g. Subject to Unavoidable Delays (as defined in the Development Agreement) , and the conditions precedent set forth in Section 4 . 10 of the Development Agreement which are specifically incorporated herein by reference, by no later than the Completion Date the improvements on the Premises will be substantially constructed in such a manner as will allow the Premises to be operated in the manner specified in Section 1 of the Lease. 330079.7 8 � � `��.- �3�� � � h. The Premises and the contemplated use thereof will not violate in any material respect any applicable zoning or use statute, ordinance, building code, rule or regulation, or any covenant or agreement of record, relating to the Premises . i. The construction of the improvements on the Premises will be performed in material compliance with all applicable laws, statutes, rules, ordinances, and regulations, including but not limited to building code, disability, access, zoning, air quality, pollution control, recyclable materials, and prevailing wage requirements as issued by any federal, state, or local political subdivisions having jurisdiction over the Premises . j . Al1 applicable licenses, permits, and bonds required for the construction of the Improvements on the Premises shall be obtained. k. It shall furnish satisfactory evidence regarding the representations, warranties and covenants contained herein as may be required by Lessor or the State and requested in writing from time to time. 1 . It shall not take any actions inconsistent with this Lease. 9 .B. LESSOR REPRESENTATIONS. WARRANTIES AND COVENANTS . Lessor covenants with and warrants and represents to Lessee as follows : a. It has legal authority to enter into, execute, and deliver this Lease, and that it has taken all official and other actions necessary and incident to its execution and delivery of such documents . b. It will comply with all of the terms, conditions, covenants, requirements, and/or warranties in this Agreement applicable to Lessor, at all times during the term hereof . c. It will comply with all of the terms, conditions, covenants, requirements and/or warranties in the Grant Agreements, the G.O. Compliance Legislation, and the Commissioner� s Order subject to Lessee' s compliance with all terms and conditions of this Lease and the Development Agreement. d. The execution and delivery of this Lease by Lessor will not constitute a violation of any provisions of its charter, or of the laws of the State of Minnesota, and there 330079.7 9 t + ��r����l are no actions, suits, or proceedings pending, or to its knowledge threatened, before or by any judicial body or governmental authority against or affecting it relating to the Premises, and it is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority which would impair its ability to enter into this Lease, or to perform any of the acts required of it in this Lease. e. Neither the execution or delivery of this Lease, nor compliance with any of the terms, conditions, requirements, or provisions contained herein, is prevented by, is a breach of, or will result in a breach of any term, condition, or provision of any agreement or document to which it is now a party, or by which it, or any of its properties, is bound. f . It has made no material false statement, or material misstatement of fact, in connection with its execution of this Lease, and all of the information previously submitted to Lessee and the State, or to be submitted to the Lessee or the State in the future, relating to this Lease or the Grant given to the Lessor or the disbursement of any of the proceeds of the Lease or Grant, is and will be true, complete and correct by Lessor in all material respects . 10 . WARRANTIES OF TITLE AND OUIET POSSESSION. The Lessor covenants that the Lessor is seized of the Premises in fee simple and has full right to make this Lease subject to the terms hereof, and, assuming the Lessee fully performs as required by this Lease, the Lessee shall have quiet and peaceable possession of the Premises during the term hereof as against the acts of all parties claiming title to or a right to the possession of the premises, with the exception, however, of the following: a. Easements, covenants, conditions, restrictions, and limitations, if any, now appearing of record; b. Reservation of any minerals or mineral rights reserved to the State of Minnesota; c. Building and zoning laws, ordinances, and state and federal regulations; d. Any defects which may be disclosed by an accurate survey [or if a survey has been obtained at the time of execution delete this language and refer to specific survey matters] ; 330079.7 1 0 . � �� _ �-��� , e. Any liens or other encumbrances created by the Lessee; and f . The provisions of Minnesota Statutes, Section 16A. 695 (1994) (and any successor statute) regarding the interests of the State of Minnesota; and g. The rights of Plastics to occupy that part of the Premises described in Exhibit hereto, until , 199 , pursuant to that certain dated between Lessor and Plastics, as set forth hereinabove. il . USE OF PREMISES . Subject to the other terms and provisions contained herein, the Lessee shall be permitted to use the Premises only for the construction, operation and maintenance of a science museum, as set forth in Section 1 above, for the benefit of the Lessor and its stated purposes, and other uses related and ancillary thereto, including but not limited to museum stores and food service. No use shall be made or shall be permitted to be made of the Premises or no acts shall be done which will cause a cancellation of any insurance policy covering any building located on the Premises, or any part thereof . The Lessee shall, at its sole cost, comply with all requirements pertaining to the Premises of any insurance organization or company necessary for the maintenance of insurance, as herein provided, covering any building and appurtenances at any time located on the Premises . Furthermore, during the term of this Lease, the Lessee shall comply with all applicable laws affecting the Premises if either: a) the breach of such laws might result in any penalty on the Lessor or the forfeiture of the Lessor� s title to the Premises or b) the breach of which would have an adverse effect on public health or safety. The Lessee shall not commit or allow to be committed any waste of or nuisance on the Premises . i1 .A. SPECIAL USE PROVISIONS . During the term of this Lease, Lessee agrees to keep the Pedestrian Path System, the Grand Stairway, Celebration Plaza and Kellogg Plaza open to the public at a minimum during the same hours the Lessor' s public parks are open; provided, however, that the Grand Stairway may be closed to the public during the winter months at approximately the same time as the Lessor closes any similar public improvement such as the stairs on South Wabasha Street, and any part of the Pedestrian Path System, Celebration Plaza, and the Grand Stairway may be closed at other times, if and for so long as is necessary, for the safety of the public, as reasonably determined by Lessee. Lessee shall give at least 5 days' notice to Lessor� s parks and recreational department of .its intention to close Celebration 330079.7 1 1 � � �t�-i-��� � Plaza to the public because of scheduled programming in Celebration Plaza, or shall provide a schedule of such closings in advance to the Lessor� s parks and recreation department . Additionally, Lessee agrees to allow Lessor use of the auditorium constructed as part of the SMM Improvements for public meetings not more than three (3) times per year. Such use will be without rental charge to Lessor and at mutually agreeable times for not more than eight (8) hours per time. 12 . ABANDONMENT OF PREMISES . If the Lessee shall abandon, vacate, or surrender the Premises or shall be dispossessed by process of law, or otherwise, any personal property belonging to the Lessee and left on the Premises shall be deemed to be abandoned, at the option of the Lessor. 13 . LESSOR' S RIGHT OF ENTRY. The Lessee shall permit the Lessor and the agents and employees of the Lessor to enter into and on the Premises at all reasonable times during business hours and with at least five days ' written notice for the purpose of inspecting them or for the purpose of posting notices of nonresponsibility for alterations, additions, or repairs, without any charge to Lessor and without any liability to the Lessor for any loss of occupation or quiet enjoyment of the Premises thereby occasioned. 14 . ENCUMBRANCE OF LESSEE' S LEASEHOLD INTEREST. The Lessee may encumber by mortgage or other proper instrument its leasehold interest in the Premises including all buildings and improvements placed by the Lessee thereon, as security for any indebtedness of the Lessee incurred to finance or refinance the improvements and buildings on the Premises provided such mortgage contains an acknowledgement that the mortgagees rights are subject to the rights of Lessor under this Lease, and the rights of the State under the Grant Agreements and the Declaration, and gives Lessee access to insurance and condemnation proceeds so as to allow Lessee the right to rebuild or restore any portions of the Premises destroyed or condemned in the event that Lessor permits such rebuilding or restoration under the terms of this Lease. No such encumbrance, or any foreclosure, conveyance, or exercise of right by any secured lender shall relieve the Lessee from its liabilities hereunder, nor prevent the Lessor from exercising its rights to terminate the Lease. If the Lessee shall so encumber its leasehold interest and if the Lessee or the holder of the indebtedness secured by such encumbrance shall give notice to the Lessor of the existence thereof and the address of such holder, then the Lessor will mail or deliver to such holder at that address a duplicate copy of all notices in writing which the Lessor may, from time to time, give 330079.7 1 2 ` ' ��� ���� to or serve on the Lessee under and pursuant to the terms and provisions hereof . Such copies shall be mailed or delivered to such holder at or as near as possible to the same time such notices are given to or served on the Lessee. Such holder may, at its option, at any time before the rights of the Lessee shall be terminated as provided herein, pay any of the rent due hereunder or pay any taxes and assessments or do any other act or thing required of the Lessee by the terms hereof or do any act or thing that may be necessary and proper to be done in the observance of the covenants and conditions hereof or to prevent the termination hereof. All payments so made, and all things so done and performed by such holder, if done prior to the rights of Lessee having been terminated, shall be as effective to prevent a termination of the rights of the Lessee hereunder as they would have been if done and performed by the Lessee. Upon such holder succeeding to the interest of Lessee hereunder, such holder shall be bound by all terms and conditions of this Lease, and shall be deemed to have assumed all of Lessee' s obligations hereunder. 15 . SALE OF THE PREMISES . In the event that this Lease has been terminated pursuant to either Section 4 .A. or Section 28, and if Lessor determines by official action that the Premises are no longer usable or needed by the Lessor to carry out the Governmental Program, Lessor shall have the right to sell the Premises on the condition that such sale is for fair market value upon terms authorized by law and approved by the Commissioner of Finance of the State of Minnesota. "Fair market value" shall mean (i) the price that would be paid by a willing and qualified buyer to a willing and qualified seller as determined by an appraisal which assumes that any and all mortgage liens or encumbrances on the property being sold, which negatively effect the value of the Premises, will be released, or (ii) the price bid by a purchaser under a public bid procedure after reasonable public notice with the proviso that any and all mortgage liens or encumbrances on the Premises, which negatively effect the value of the Premises, will be released at the time of acquisition by such purchaser. Notwithstanding any termination of this Lease, the net proceeds of sale must be applied as follows : first, to pay to the State the amount of State bond proceeds used to acquire or better the Premises in accordance with the Commissioner of Finance' s order authorizing their issuance, second, to pay in full any outstanding public or private debt incurred to acquire or better the Premises; and third, any excess over those amounts must be divided in proportion to the shares contributed to acquisition and betterment of the Premises as set forth in Exhibit C, other than any private lenders already paid 330079.7 1 3 . . ��_1�.�� in full provided, however, that in the event that this Lease has been terminated pursuant to Section 28, then Lessee shall not have the right to any such proceeds . Nothing in this or any other agreement shall be construed as requiring Lessor to sell the Premises . To the extent, but only to the extent, disposition of the sale proceeds is not controlled by the G.O. Compliance Legislation, the proceeds of the sale will be shared by the Lessor and Lessee in accordance with the percentages set forth on Exhibit E hereto; provided that all private indebtedness incurred to acquire or better the Premises shall first be paid in full . This Section 15 shall survive the termination of this Lease. 16 . SUBLETTING AND ASSIGNMENTS . The Lessee shall not assign any of its rights hereunder, or sublet all or any portion of the Premises, without the Lessor' s prior written consent which consent may be given or withheld in Lessor' s sole discretion; provided, however, that Lessee may sublet up to [2000] square feet of the Premises to the Mississippi National River Recreation Area for purposes of maintaining an information area. Lessee acknowledges that, in addition to any other conditions which Lessor may, in its discretion, impose on providing its consent to any sublease, the following conditions will apply: a. All sublessees shall operate the subleased premises for the purpose and in a manner so as to be related and ancillary to the Governmental Program; and b. All subleases shall be terminated upon any termination of this Lease and shall contain appropriate provisions requiring the sublessee to be subject to all other terms and conditions of this Lease; and c. In no event shall any space by subleased in violation of the covenants set forth in Section 53 (c) hereof . Notwithstanding the foregoing, the Lessee shall be permitted to mortgage its interest hereunder to any mortgagee, provided such mortgage is in connection with the Lessee' s financing or refinancing of the development or improvement of the Premises as contemplated herein subject to the requirements of section 14 hereof . On the foreclosure of any such mortgage, the mortgagee may thereafter assign or transfer its interest in the leasehold to any other assignee or transferee, subject to the provisions of Minn. Stat . §16A. 695 and the Grant Agreement, provided that any assignee thereof shall agree to be bound by the terms and conditions of this Lease. Thereafter, there shall be no other assignments or transfers of the leasehold interest without the prior written consent of the Lessor, which consent may be given or withheld in Lessor' s sole discretion, and the Lessor� s consent 330079.7 1 4 . , �,�_ i�_�� to one assignment or transfer shall not be deemed to be a consent to any subsequent assignment or transfer. Any other transfer or assignment without the Lessor' s consent shall be void and shall at the option of the Lessor constitute an Event of Default hereunder. 17 . NOTICES . All communications, demands, notices, or objections permitted or required to be given or served under this Lease shall be in writing and shall be deemed to have been duly given or served when delivered in person to the other party or its authorized agent or two (2) days after being deposited in the United States mail, postage prepaid, for mailing by certified or registered mail, return receipt requested, and addressed to the other party to this Lease, to the address set forth next to such party' s signature at the end of this Lease, or if to a person not a party to this Lease, to the address designated by a party to this Lease in the foregoing manner. Any party may change its address by giving notice in writing, stating its new address, to any other party as provided in the foregoing manner; provided that the Lessee' s address for notice after it is occupying the SNIl�I Improvements shall be the SMM Improvements without the need for notice of change of address . Commencing on the tenth (lOth) day after the giving of such notice, such newly designated address shall be such party' s address for the purposes of all communications, demands, notices, or objections permitted or required to be given or served under this Lease. 18 . CONSTRUCTION OF INITIAL IMPROVEMENTS . The Lessee shall construct the SMM Improvements subject to and in accordance with all terms and conditions of the Development Agreement, this Lease and in material compliance with all applicable federal, state and local laws, rules and regulations; and in material compliance with the terms and conditions of all applicable licenses and permits . All of such improvements, including any fixtures related to the operation of any buildings located on the Premises (but specifically excluding trade fixtures, equipment, exhibits and other personal property of Lessee and leased or rented property or equipment leased or rented other than pursuant to this Lease and the Ramp Lease) , shall immediately become the property of Lessor, and Lessee shall have only a leasehold interest therein, subject to the terms and provisions hereof . Upon request of Lessor, Lessee will execute and deliver to Lessor bills of sale from time to time transferring to Lessor title to personal property which becomes a fixture and property of Lessor under the preceding sentence. The Lessee further agrees to install and maintain a fence along the southerly boundary of the Premises at least eight feet in height . Lessee is hereby authorized by Lessor to provide for the construction and equipment of the SNIl�! Improvements in accordance with Minnesota Statutes, §§ 469 .155 (8) and 471. 191, and at the option of the 330079.7 1 5 , , q(�- 13�� . Lessee, with or without compliance with Minnesota Statutes, § 471.345 . 19 . CONSTRUCTION OF ADDITIONAL BUILDINGS AND IMPROVEMENTS . The Lessee, but only with the prior written approval of the Lessor which approval may be given or withheld in the sole discretion of Lessor, shall have the right to make such alterations, improvements, and changes to any building or improvement which may from time to time be on the Premises as the Lessee may deem necessary or to replace any such building or improvement with a new one. Notwithstanding the preceding sentence, Lessor agrees that changes to the improvements on the Premises which do not significantly affect the site plan, elevations or exterior of the Project including, but not limited to, interior walls and exhibit spaces, do not require the consent of Lessor. Any new building permitted by Lessor and constructed by the Lessee on the Premises, and any changes to the SMM Improvements or to permitted new buildings, shall be constructed in material compliance with all applicable federal, state and local laws, rules and regulations; and in compliance with the terms and conditions of all applicable licenses and permits; and shall, together with any fixtures related to the operation of any buildings located on the Premises ( but specifically excluding trade fixtures, equipment, exhibits and other personal property of Lessee and leased or rented property and equipment leased or rented other than pursuant to this Lease and the Ramp Lease) , immediately become the property of the Lessor, and the Lessee shall have only a leasehold interest therein, subject to the terms and provisions contained herein. 20 . REPAIRS AND DESTRUCTION OF IMPROVEMENTS . a. Maintenance of Improvements . The Lessee shall, throughout the term of this Lease, at its own cost and without any expense to the Lessor, keep and maintain the Premises, including all buildings and improvements of every kind which may be a part thereof, and all appurtenances thereto, including public and private sidewalks located thereon and adjacent thereto, in good, sanitary, lawful, and neat order, condition and repair and, except as specifically provided herein, shall restore and rehabilitate any improvements of any kind which may be destroyed or damaged by fire, casualty, or any other cause whatsoever. The Lessor shall not be obligated to make any repairs, replacements, or renewals of any kind, nature, or description whatsoever to the Premises or any buildings or improvements thereon. 330079.7 1 6 . � �C����3�� b. Damage to and Destruction of Buildings or Improve- ments . The damage or destruction or partial destruction of any building or other improvement which is a part of the Premises shall not release the Lessee from any obligation hereunder, except as hereinafter expressly provided. In case of damage to or destruction of such building or improvement which is not substantial, the Lessee shall at its own expense promptly repair and restore the same to a condition as good or better than that which existed prior to such damage or destruction, and Lessee shall have the right to any insurance proceeds the premium for which has been paid by Lessee, to be used by Lessee to pay the cost of such repair and restoration. In the case of damage to or destruction of such building or improvement which is substantial, Lessee shall at its own expense promptly repair and restore the same to a condition as good or better than that which existed prior to such change or destruction, unless Lessee, in its judgment, determines that it is inappropriate to rebuild the building or improvements on the Premises, in which case this Lease and the Lessee' s interest in the Premises shall be terminated and the Premises shall be deemed to have been sold, and the insurance proceeds shall be paid in accordance with the provisions of Section 15 above. Lessee shall give written notice to Lessor of its determination whether or not to rebuild within 180 days of the damage or destruction of the buildings or improvements . If Lessee does not elect to rebuild, this Lease shall terminate as of the date specified in Lessee' s notice to Lessor, and all rent and other obligations of the Lessee shall terminate on that date provided, however, that the insurance proceeds shall be applied in accordance with the provisions of Section 15 hereof as if a sale of the Premises shall have occurred. No settlement with the insurance company shall be agreed to by Lessee without the prior written consent of the Lessor and the State. Except as otherwise provided in this section, and without limiting such obligations of the Lessee, if Lessee elects to rebuild, and any mortgagee consents to rebuilding, if necessary, it is agreed that the proceeds of any insurance covering such damage or destruction shall be paid to the Lessor and the Lessee, to be held in escrow for such repair or replacement with a mutually acceptable escrow agent, to be disbursed in accordance with standard commercial construction lending conditions customarily required by institutional lenders . 21 . MECHANICS ' LIENS . The Lessee hereby covenants and agrees that the Lessee will not permit or allow any mechanics ' or materialmen' s liens to be placed on the Lessor' s interest in the Premises during the term hereof . Notwithstanding the previous sentence, however, in the event any such lien shall be so filed 330079.7 1 7 ��� l3�le against the Lessor' s interest, the Lessee shall take all steps necessary to remove it within 120 days of its being filed; provided, however, that the Lessee may contest any such lien provided the Lessee first posts a surety bond, letter of credit or cash with the applicable court sufficient to release the Premises from such lien, or otherwise protect the Lessor from foreclosure thereof. 22 . INDENIl�TIFICATION OF LESSOR. a. To the fullest extent permitted by law, Lessee shall, and hereby does, indemnify, save, hold harmless, and defend Lessor, its officials, employees, representatives and agents but only when acting in their capacities as such (collectively, the "Indemnified Party" or "Indemnified Parties") , from and against all claims, costs (including reasonable attorneys fees to the extent provided in clause (e) below) liabilities, losses or damages suffered or incurred by any of the Indemnified Parties arising from or as a result of any loss, injury, death, or damage to persons or property arising out of the use, possession, construction of improvements, operation or maintenance of the Premises or any part thereof, whether such loss, injury, death, or damage shall be caused by or in any way result from or arise out of any act, omission, or negligence of Indemnified Parties . b. Lessee hereby waives and releases all claims against the Indemnified Parties for damages to any building and improvements which are now on or hereafter placed or built on the Premises and to the property of Lessee in, on, or about the Premises . The Lessee also agrees that it will not assert against the Indemnified Parties in any legal proceeding any claim, cross-claim or third party claim for which Lessee is obligated under the provisions of this Section 22 (a) to provide indemnification to the Indemnified Parties . c. Notwithstanding the provisions of clauses (a) and (b) above, the provisions of clause (a) and (b) above of this Section 22 shall not apply to claims, costs, liabilities, losses or damages which are caused by the gross negligence or willful or intentional misconduct of the Indemnified parties . No person or entity other than the Indemnified Parties shall have any benefit whatsoever from the agreements contained in clause (a) and (b) above, other than any indirect benefit accruing as a result of their status as a taxpayer or resident of the City, and shall not be deemed to be a third party beneficiary of the agreements of Lessee contained in clauses (a) and (b) above. 330079.7 1 8 � . ��.-���� d. Nothing in this Section 22 shall be construed to, and shall not, expand Lessor' s maximum liability over the limits set forth in Minnesota Statutes, Chapter 466, as amended from time to time, or any other or successor law which has the effect of limiting Lessor' s liability. e. Promptly after receipt by an Indemnified Party of notice of the commencement of any action for which Lessee has indemnified the Indemnified Parties hereunder, the Indemnified Party will notify Lessee in writing of the commencement thereof, and, subject to the provisions hereinafter stated, Lessee shall assume, at its expense, the defense of such action (including the employment of counsel, who shall be counsel reasonably satisfactory to the Indemnified Parties) insofar as such action shall relate to any alleged liability for which Lessee has indemnified the Indemnified Parties hereunder. The Indemnified Parties shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the expense of Lessee unless (i) the employment of such counsel has been specifically authorized by Lessee, or (ii) the named parties to any such action (including any impleaded parties) include more than one of the Indemnified Parties and a conflict of interest among Lessee and Indemnified Parties exists, and as a result the Lessee and the Indemnified Parties cannot adequately be represented by the same counsel . In the case of such a conflict of interest, Lessee shall not have the right to assume the defense of such action on behalf of such Indemnified Parties and the Indemnified Party shall have the right to select separate counsel, at the expense of the Lessee but subject to the limitation set forth in the following sentence, to assume such legal defense and to otherwise participate in the defense of such action on behalf of the Indemnified Parties . In connection with any one such action or separate but substantially arising out of the same general allegations or circumstances, the Lessee shall not be liable for the fees and expenses of more than one separate firm of attorneys for all such Indemnified Parties, which firm shall be reasonably acceptable to the Lessee and shall be designated in writing by the Indemnified Parties . The Lessee shall not be liable for any settlement of any such action effected without its written consent . If such action is settled with the written consent of the Lessee, or if there be a final judgment for the plaintiff in any such action, with or without the consent of Lessee, Lessee agrees to indemnify and hold harmless the Indemnified Parties from and against any loss or liability by reason of such settlement or judgment, but only to the extent provided in subparagraph (a) of this 330079.7 1 9 . . �.� �3-�� Section 22 . This indemnity includes reimbursement for expenses reasonably incurred by any of the Indemnified Parties in investigating the claim and in defending it if the Lessee declines to assume the defense. 23 . ATTORNEYS ' FEES . [intentionally omitted] 24 . INSURANCE. a. Insurance Coverage of Premises . The Lessee shall at all times during the terms of this Lease and at the Lessee' s sole expense keep all improvements which are now or hereafter a part of the Premises insured against "all risks" �'or the full insurable value of such improvements, and during the construction of the Project "builders risk�� and standard fire and extended coverage, with a deductible not to exceed $100, 000, and with loss payable to the Lessor, the Lessee, the State, and any mortgagee as their respective interests may appear. Any loss adjustment shall reguire the prior written consent of the Lessor, the State, the Lessee, and any mortgagee. Lessee shall be responsible for any insurance deductible. b. Commercial General Liability Insurance. The Lessee shall maintain in effect throughout the term of this Lease, at its own expense, commercial general liability insurance covering the Premises and its appurtenances and the sidewalks fronting on the Premises in the amount of at least Two Million Dollars combined single limit, and insurance on all boilers and other pressure vessels, fired or unfired. Such insurance shall : (i) be primary with respect to Lessor' s insurance or self-insurance; (ii) not exclude explosion, collapse and underground property damage; (iii) be written on an "Occurrence" Form policy basis; and (iv) not contain an '�aggregate" policy limit unless specifically approved in writing by Lessor. c. Owner' s Protective Policv. Lessee shall, at its own expense, maintain an Owners' Protective Policy including blanket contractual liability coverage, personal injury liability coverage and broad form property damage liability endorsement with a combined single limit of not less than $2, 000, 000 per occurrence. Such insurance shall: (i) name the City of Saint Paul and the Finance Commissioner as the insureds; (ii) be primary with respect to Lessor' s insurance or self-insurance; (iii) not exclude explosion, collapse and underground property damage; (iv) be written on an "occurrence" Form policy basis; and (v) not contain an "aggregate" policy limit unless specifically approved in writing by Lessor. 330079.7 2� � • �(�- �3�� d. Automobile Liability Insurance. Lessee shall maintain Automobile Liability Insurance with a minimum combined single limit of $1, 000, 000 per occurrence. Such insurance shall: (i) name the City of Saint Paul as an additional insured; (ii) be primary with respect to Lessor' s insurance or self-insurance; (iii) not exclude explosion, collapse and underground property damage; (iv) be written on an "occurrence" Form policy basis; and (v) not contain an "aggregate" policy limit unless specifically approved in writing by Lessor. e. Workers ' Compensation Insurance. Lessee shall maintain Workers ' Compensation Insurance with not less than statutory minimum limits; and Employers ' Liability Insurance with minimum limits of at least $100, 000 per accident and with an all states endorsement . f . Insurance Certificates . Lessee shall supply to Lessor current insurance certificates for policies required in this Section. The said certificates shall certify whether or not the agent has errors and omissions insurance coverage. At the written request of Lessor, Lessee shall promptly furnish to lessor all written notices and all paid premium receipts by Lessee regarding such required insurance. g. Additional Required Insurance. 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 Lessee may determine to be necessary in relation to this Lease or its operation of the Premises . h. Non-waiver of Statutory Limits . Nothing in this contract shall constitute a waiver by the Lessor of any statutory limits or exceptions on liability. i . Placement of Insurance. 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 this Section shall be endorsed to indicate that the insurer cannot cancel or change the insurance without first giving the Lessor thirty (30) days ' written notice. 330079.7 2 1 � � `�-G.~ ���� j . Lessor� s Right to Pay Premiums on Behalf of Lessee. The Lessee shall pay all of the premiums therefor and deliver such policies, or certificates thereof, to the Lessor. In the event of the failure of the Lessee, either to effect such insurance in the names called for or to pay the premiums therefor or to deliver such policies or certificates thereof to the Lessor, the Lessor shall be entitled, but shall have no obligation, to effect such insurance and pay the premiums therefor. Such premiums, together with interest thereon at the rate of ten percent per annum accruing from the date of payment by Lessor, shall be repayable to the Lessor within thirty (30) days after written notice of the payment of such insurance, and failure to repay the premiums shall carry with it the same consequences as failure to pay any installment of Rent . Each insurer mentioned in this section shall agree, by endorsement on the policy or policies issued by it, or by independent instrument furnished to the Lessor, and in form acceptable to the Lessor, that it will give to the Lessor thirty (30) days' written notice before the policy or policies in question shall be altered or cancelled. k. Increase in Coveraae. The insurance and the size of any applicable deductible required to be maintained pursuant to this Lease shall be subject to review as to its adequacy by an Independent Insurance Consultant once every three years beginning in the year 2003 . The Lessee shall cause such review to be conducted and shall cause such Consultant to prepare a written report regarding such review containing such Consultant' s recommendations, if any, for changes in such insurance. The Lessee shall cause copies of such report to be delivered promptly to the Lessor and agrees to follow the recommendations of such Independent Insurance Consultant to the extent practicable. For purposes of this subsection K, the term "Independent Insurance Consultant" means any person who is not an employee or officer of Lessee, appointed by Lessee, qualified to survey risks and to recommend insurance coverage for organizations engaged in like operations to those of the Lessee and having a favorable reputation for skill and experience in such surveys and such recommendations, and who may be a broker or agent with whom Lessee transacts business, and reasonably acceptable to Lessor. 1 . Blanket Insurance Policies . Notwithstanding anything to the contrary contained in this section, the Lessee' s obligations to carry the insurance provided for herein may be brought within the coverage of a so-called 330079.7 2 2 , � �—�3� c� blanket policy or policies of insurance carried and maintained by the Lessee; provided, however, that the coverage afforded the Lessor will not be reduced or diminished or otherwise be different from that which would exist under a separate policy meeting all other requirements of this Lease by reason of the use of such blanket policy of insurance. 25 . PROHIBITION OF INVOLUNTARY ASSIGNMENT. Neither this Lease nor the leasehold estate of the Lessee nor any interest of the Lessee hereunder in the Premises or in any buildings or improvements thereon shall be subject to involuntary assignment, transfer, or sale, by operation of law or otherwise, and any such attempt at involuntary assignment, transfer, or sale shall be void and of no effect . For purposes of this subsection, the merger or consolidation of Lessee with any other entity or entities shall be deemed to be a transfer and prohibited by this subsection unless either: (i) such merger is with another entity and Lessee is the survivor and remains exempt from income tax under § 501 (c) (3) of the Internal Revenue Code of 1986 as amended (the "Code") ; or (ii) such merger is with another entity which is exempt from income tax under § 501 (c) (3) of the Code, Lessee is not the surviving entity, said surviving entity expressly assumes all obligations of Lessee hereunder, said surviving entity remains exempt from income tax under §501 (c) (3) of the Code, and said surviving entity has comparable or higher ��net worth" (or its equivalent under accounting principles applicable to Section 501 (1) (3) organizations) as Lessee has on the date hereof . The occurrence of any involuntary assignment prohibited by the provisions of this Section 25 shall be deemed to constitute a Default under Section 26 hereof, and upon the expiration of the applicable cure period contained in Section 27 hereof, the Lessor shall be entitled to exercise all remedies set forth in this Lease, subject, however, to the provisions of Section 30 hereof . 26 . EVENTS OF DEFAULT. Any of the following events shall constitute a "Default" under this Lease: a. If the SMM Improvements are not completed by the Completion Date substantially in accordance with the plans and specifications; or b. Subject to any payments being contested in good faith, if the Lessee fails to fully and completely pay all sums lawfully owing for the completion of the Project, other 330079.7 2 3 . � l�'���� . � than sums to be paid by the City pursuant to Section 3 .3 of the Development Agreement in accordance with the plans and specifications; or c. If, without the written consent of the Lessor and the Finance Commissioner, any part of the Project ceases to be used as a science museum, and related and ancillary activities . d. If a default under Section 25 hereof occurs; or e. If, without the written consent of Lessor and the Finance Commissioner, and except for the permitted encum- brances identified on Exhibit A attached hereto, and except as allowed under Sections 14 or 16 hereof, Lessee sells, transfers, leases, encumbers, or otherwise conveys, in any way or manner, whether voluntary or involuntary, or by action of law, all of any part of its interest in the Premises, or amends or modifies any agreement relating to such sale which had previously been so consented to and approved by Lessor and the Finance Commissioner; or f . If, without the written waiver of Lessor, Lessee fails to annually certify that the Premises is being used as a science museum, and related and ancillary activities as required in Section 1 of this Lease; or g. If, without the written waiver of Lessor, Lessee fails to provide the Annual Report to Lessor; or h. If the Lessee fails to continuously maintain the insurance required by Section 24 of this Lease; or i. If Lessee, upon request, refuses to allow Lessor, the Finance Commissioner, or any auditor for the State of Minnesota or for the Legislature, to inspect audit, copy, or abstract any and all of Lessee' s books, records, papers, or other documents relevant to this Lease, the Grant to Lessor, or the Premises; or j . If Lessee, upon request, refuses to allow Lessor, the Finance Commissioner, or any representative of the State of Minnesota, to inspect the Premises; or k. If Lessee fails to cooperate fully in assisting Lessor in complying with any of the provisions of the Grant Agreement, G.O. Compliance Legislation or the Commissioner' s Order; or 330079.7 2 4 � � � t�Q- ' J�l(I 1 . If the Lessee fails to fully comply with the "matching funds requirement, " contained in the Construction Grant Agreement; or m. If any representation or warranty made by Lessee hereunder prove to have been untrue or incorrect in any material respect, as of the time such representation or warranty was made; or n. If, without the written consent or waiver of Lessor, Lessee fails to fully comply with any other provision, term, condition, covenant or warranty contained in this Lease, or fails to fully comply with any provisions of the Declaration; or o. If a Default by SNlN! under the Development Agreement shall occur; or p. If, under any document, instrument or agreement relating to the financing, or refinancing, of the improvements to the Premises, there occurs an event which, but for the giving of notice or the passage of time, or both, would constitute a default or event of default by Lessee thereunder and the other party thereto gives notice to the Lessee of the default if notice is required before the exercise of remedies; or q. If, under any other document, instrument or agreement related to the IMAX attraction, or any similar attraction which replaces the IMAX attraction, there occurs an event which, but for the giving of notice or the passage of time, or both, would constitute a default or event of default by SPM�! thereunder and the other party thereto gives notice if notice is required before the exercise of remedies; or r. If a Default under the Ramp Lease shall occur. 27 . NOTICE OF DEFAULT. (1) Upon the occurrence of a Default, an Event of Default shall not be deemed to have occurred under this Lease unless the Lessor has given the Lessee written notice of the Default and the Lessee has failed to cure such Default within the time period specified in subparagraph (2) below or, if applicable, in subparagraph (3) below; provided that, in the case of a Default hereunder which is also a Default, under the Development Agreement, the notice and cure period shall be as specified in this Lease. (2) For those Defaults described in Section 25 and Subsections 26 (i) and (j ) the notice and cure period shall be ten 330079.7 2 5 , . C�� ���--1� (10) days; for those Defaults described in Subsections 26 (h) and (1) the notice and cure period shall be thirty (30) days; and for all other Defaults the notice and cure period shall be sixty (60) days, prior to the issuance of a CO and ninety (90) days after the issuance of the C0. (3) Notwithstanding the preceding paragraph of this Section 27, (a) in the event that a Default occurs prior to the issuance of the CO and cannot be cured within the applicable cure period provided in paragraph (2) above, and in the event that Lessee has commenced the action necessary to cure the Default during the applicable cure period provided in the paragraph (2) above, then Lessee shall automatically have an additional cure period not to exceed thirty (30) days, without the written consent of the City, on the condition that Lessee diligently pursues the cure during said additional thirty (30) day period; and (b) in the event that a Default occurs after the issuance of the CO and cannot be cured within the applicable cure period provided in paragraph (2) above, and in the event that Lessee has commenced the action necessary to cure the Default during the applicable cure period provided in paragraph (2) above, then Lessee shall automatically have an additional cure period not to exceed thirty (30) days; provided that such additional cure period may be greater than 30 days, but only with the written consent of the Lessor, which consent shall not be unreasonably withheld or delayed. Notwithstanding the provisions of this Section set for above, in no event shall any cure period, including any extension of a cure period, be greater than the cure period available under the Grant Agreements if the Default by Lessee hereunder also causes a default or event of default by the Lessor under the Grant Agreements . Notwithstanding the foregoing, no Default under this Lease which is also a Default under the Development Agreement shall give Lessee the right to additional or duplicative cure periods before Lessor can exercise remedies available to it under this Lease and the Development Agreement. Additionally, no extensions of the cure period set forth in paragraph (2) above shall be granted or allowed for a Default under Section 25 hereof . 28 . DEFAULT AND TERMINATION. (a) Prior to the issuance of a C.O. , upon the occurrence and during the continuance of an Event of Default under this Lease, the Lessor, in addition to the other rights or remedies it may have, shall have the immediate right to terminate this Lease and the Development Agreement by delivery of written notice of termination, which notice shall be 330079.7 2 6 , . �.�- «�� executed by the Mayor of the Lessor; (b) after the issuance of a C.O. , upon the occurrence and during the continuance of an Event of Default under this Lease, subject to Section 30 hereof, the Lessor, in addition to the other rights or remedies it may have, shall have the immediate right to terminate this Lease and the Development Agreement by delivery of written notice of termination, and reenter the Premises and remove all persons and property otherwise from the Premises . 29 . ADDITIONAL REMEDIES . Notwithstanding anything in this or any other agreement to the contrary, upon the occurrence, and during the continuance, of a Default, in addition to the remedies in Section 28 and this section, Lessor may immediately refrain from making any payments from the City Construction Account and the State Grant Account contemplated by and as those terms are defined in the Disbursing Agreement . In addition, during the continuance of an Event of Default under this Lease, and after giving Lessee any notice required by Section 27 hereof and the running of any appropriate time period without Lessee having cured, the Lessor may (a) in addition to the remedies in Section 28 and this Section, exert any remedies it may have in law or equity and, (b) if the State issues a demand, commences an action, actually receives payment from Lessor, or exercises any other remedies against the Lessor, then Lessor may also similarly demand, commence an action, or exercise any other remedies against, and be immediately entitled to receive from Lessee, or do to Lessee that which the State does to Lessor on the condition that such demand, action, payment or other action by the State against the City is caused by a Default by the Lessee under this Lease or the Development Agreement . 30 . SPECIAL TERMINATION PROCEDURE. After issuance of the CO, Lessor agrees that it will not exercise the remedy of termination of the Lease provided in Section 28 hereof on the condition that Lessee does each of the following: a) Within ninety (90) days of the occurrence of a Default Lessee shall have retained, at its sole expense, an independent consultant qualified to analyze Lessee' s operation at the Premises and reasonably acceptable to Lessor (hereinafter the "Consultant") ; b) Within sixty (60) days of the retention of the Consultant Lessee shall have delivered to Lessor a written report of the Consultant analyzing its operations at the Leased Premises (the "Consultant ' s Report") ; c) Within fifteen (15) days of the delivery of the Consultant' s Report Lessee shall have met with Lessor 330079.7 2 7 . . �(�—�`��ic� to discuss the findings and recommendations of the Consultant; provided, however, that in the event that Lessee has not retained the Consultant, delivered the Consultant' s Report, or met with Lessor, within the required time period, then Lessor shall have the right to proceed to exercise the remedy of termination of this Lease without regard to the succeeding provisions of this Section 30 . The Lessor agrees that if after any time during the process set forth in clauses (a) , (b) or (c) above, the Default has been cured, the Lessee shall not be required to proceed with the remaining portion of the process set forth in clauses (a) , (b) and (c) above. In the event that Lessee has retained the Consultant, delivered the Consultant ' s Report and met with Lessor as required hereinabove, Lessor further agrees that it will not exercise the remedy of termination of this Lease unless and until (i) the City Council of Lessor has considered a resolution at which meeting representatives of Lessee shall have the right to be heard; (ii) the City Council shall adopt a resolution authorizing the termination of this Lease, and (iii) the Lessee shall have failed to cure the Event of Default within thirty (30) days of the adoption of such resolution. Lessee acknowledges and agrees that : a) Lessor is not required to accept or adopt all or any portion of the Consultant ' s Report; and b) in the event that Lessor determines, in its sole discretion, to accept any of the recommendations of the Consultant' s Report, the acceptance of which requires an amendment to this Lease, or a waiver of the Default or Event of Default, Lessor shall have the right, as a condition to agreeing to any such amendment or waiver, to impose any conditions Lessor deems appropriate, in its sole discretion. 31. LESSOR' S RIGHT TO PERFORM. In addition to any other provision contained herein, in the event that an Event of Default by the Lessee shall have occurred and be continuing, the Lessor may, at the Lessor' s option but without any obligation, take any action to perform the obligations of the Lessee which gave rise to the Event of Default or with respect to which the Lessee is otherwise in Default under this Lease, and the Lessor shall not be liable, or be held liable or in any way responsible for any loss, inconvenience, annoyance, or damage resulting to the Lessee on account thereof, other than for the Lessor' s gross negligence or willful or intentional misconduct . The Lessee shall repay to the Lessor on demand the entire expense of the Lessor� s performance together with interest at the rate of ten percent per annum accruing from the date of any disbursement . 330079.7 2 8 • • `�(.e�1��1(� The Lessor shall be permitted to enter the Premises while exercising any right given to it by the terms of this section. Any act or thing done by the Lessor pursuant to the provisions of this section shall not be or be construed to be a waiver of any such Default or Event of Default by the Lessee, or as a waiver of any covenant, term, or condition herein contained or the performance thereof, or of any other right or remedy of the Lessor, hereunder or otherwise. 32 . LESSOR DEFAULTS AND TENANT REMEDIES . In the event that (i) Lessor (a) fails to observe, perform or comply with any provision, term, condition, covenant, agreement or warranty required to be observed, performed or complied with by the Lessor under this Lease or the Development Agreement, or (b) fails to observe, perform or comply with any obligation, provision, term, covenant, condition or agreement to be observed, performed or complied with by the Lessor under the Grant Agreement or the State Disbursing Agreement, unless the Lessor' s failure is the result of a Default by the Lessee under this Lease or the Development Agreement, and (ii) Lessor fails to cure such Default within sixty (60) days of the receipt of written notice of default from Lessee, then a Lessor Event of Default shall exist under this Lease. Upon the� occurrence and during the continuance of a Lessor Event of Default, the Lessee may exercise any of the following remedies : (a) subject to Section 32 .A hereof, terminate this Lease and the Development Agreement by delivery of written notice to Lessor; (b) subject to Section 62 hereof and Section 3 . 1 (2) of the Development Agreement, commence an action at law to recover the damages incurred by Lessee and caused by the Lessor Event of Default; (c) commence an action in equity to compel the performance by Lessor of those actions or inactions which serve as the basis of a Lessor Event of Default; and (d) exercise any other right or remedy it may have at law, in equity, or under this Lease or the Development Agreement . 32 .A. PRECONDITIONS TO LESSEE TERMINATION OF AGREEMENT. In the event that Lessee intends to terminate this Lease pursuant to Section 32 hereof, it shall not terminate this Lease unless and until (a) a resolution authorizing termination of this Lease has been adopted by the governing body of Lessee, (b) written notice of the adoption of such resolution and a copy thereof has been 330079.7 2 9 ' �c�—�3�� sent to Lessor, and (c) Lessor has failed to cure the Event of Default within 30 days after the giving of such notice. 32 .B. No Remedy Exclusive. No remedy herein conferred upon or reserved to the Lessor or Lessee is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any 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 . 33 . EFFECT OF EMINENT DOMAIN. a. Effect of Total Condemnation. In the event that the entire Premises shall be appropriated or taken under the power of eminent domain by any public or quasi-public authority, this Lease shall be terminated and all proceeds shall be payable in the same manner as if the Premises were sold pursuant to Section 15 above. b. Effect of Partial Condemnation. In the event that a portion of the Premises shall be so appropriated or taken and the remainder thereof shall not be suitable for the use then being made thereof by the Lessee, as determined by Lessee, then Lessee shall have the right to give Lessor written notice of the right to treat the partial condemnation as a sale pursuant to Section 15 above within one hundred twenty (120) days after such portion of the Premises has been so appropriated or taken. In that event, this Lease shall be terminated and the proceeds of the condemnation shall be applied as if the condemned portion of the Premises were sold in accordance with Section 15 above. In the event of partial taking in which Lessee elects to continue this Lease in the Premises, this Lease shall continue in full force as to the part not taken, and the condemnation award for the Premises shall be applied first to restore the remaining portion of the Premises to a configuration and condition so that the Premises can be used for the purposes set forth in Section 1 hereof (with the condemnation proceeds to be held by a mutually agreeable escrow agent in escrow for such restoration to be disbursed in accordance with standard commercial construction conditions customarily r.equired by institutional lenders) , and, to the extent of any remaining proceeds, as if the condemned portion of the Premises were sold in accordance with Section 15 above. 330079.7 3 0 . . q�_ ,��� None of the foregoing provisions shall preclude Lessee from making a separate claim against the condemning authority for the value of any trade fixtures and exhibits taken by said condemning authority and its relocation expenses provided such claim does not diminish or impair the award with respect to the Premises . 34 . SURRENDER OF LEASE: EFFECT ON SUBLEASES . The voluntary . or other surrender of this Lease by the Lessee, or a mutual . cancellation thereof, shall not work a merger and shall at the option of the Lessor terminate any or all existing subleases or subtenancies or may at the option of the Lessor operate as an assignment to it of any or all such subleases or subtenancies . The terms of this section shall be included in all such subleases . 35 . OWNERSHIP OF IMPROVEMENTS ON TERMINATION OF LEASE. On expiration or termination of this Lease for any cause, the Lessor shall become the absolute owner of any buildings or improvements of any nature or kind on the Premises, regardless of who placed such buildings or improvements thereon, together with any and all fixtures related to any of the buildings located on the Premises (excluding, however, all of Lessee' s trade fixtures, equipment, exhibits and other personal property of Lessee and all property and equipment leased or rented other than pursuant to this Lease and the Ramp Lease) , and the Lessee shall not thereafter have any interest whatsoever therein, subject however, to Lessee' s rights under Sections 20 and 33 hereof to share in the insurance proceeds. 36 . AMENDMENT, MODIFICATION, AND WAIVER. No amendment, modification, or waiver of any condition, provision, or term of this Lease shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or its duly authorized representative, and approved in writing by the Commissioner of Finance of the State of Minnesota, and specifying with particularity the extent and nature of such amendment, modification, or waiver. Any waiver by any party of any default of another party shall not affect or impair any right arising from any subsequent default . 37 . APPROVAL BY STATE OF MINNESOTA. This Lease shall not be valid or of any effect until signed by both parties and consent in writing has been given by the Commissioner of Finance of the State of Minnesota. 38 . EFFECT OF LESSEE' S HOLDING OVER. Any holding over after the expiration of the term of this Lease, with consent of the Lessor, shall be construed to be a tenancy from month to month, at the same Rent as required to be paid by the Lessee for 330079.7 3 1 , . ��_ ,�-�� the period immediately prior to the expiration of the term hereof, and shall otherwise be on the terms and conditions herein specified, so far as they are applicable. 39 . [Reserved] 40 . PARTIES BOUND. This Lease shall be binding upon and inure to the benefit of the parties hereto and their respective assigns, executors, heirs, and successors . 41 . TIME OF ESSENCE. Time is of the essence in this Lease, and of each and every covenant, term, condition, and provision hereof . 42 . CAPTIONS . All captions, headings, or titles in the paragraphs or sections of this Lease are inserted for convenience of reference only and shall not constitute a part of this Lease as a limitation of the scope of the particular paragraphs or sections to which they apply. 43 . NO PARTNERSHIP, JOINT VENTURE, OR FIDUCIARY RELATION- SHIP CREATED HEREBY. Nothing contained in this Lease shall be interpreted as creating a partnership, joint venture, or relationship of principal and agent between the Lessor and the Lessee, it being understood that the sole relationship created hereby is one of landlord and tenant . All laws and statutes of the City of Saint Paul and State of Minnesota relative to landlord and tenant relationships shall be applicable to the parties hereto. 44 . CUMULATIVE RIGHTS . Except as otherwise expressly stated herein, no right or remedy herein conferred on or reserved to the Lessee or the Lessor is intended to be exclusive of any other right or remedy hereof provided by law, but each shall be cumulative in, and in addition to, every otY�er right or remedy given herein or not or hereafter existing at law, in equity, or by statute. 45 . SEVERABLE PROVI$IONS . Each provision, section, sentence, clause, phrase, and word of this Lease is intended to be severable. If any provision, sentence, clause, phrase, and word hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the legality or validity of the remainder of the Lease. 46 . ENTIRE AGREEMENT. This Lease, the Development Agreement and the Disbursing Agreement contaix� the entire understanding of the parties hereto with respect to the transactions contemplated hereby and supersede all prior agreements and understandings between the parties with respect to such subject matter. No 330079.7 3 2 . . c��_��-�� representations, warranties, undertakings, or promises, whether oral, implied, written, or otherwise, have been made by either party hereto to the other unless expressly stated in this Lease, the Development Agreement or the Disbursing Agreement or unless mutually agreed to in writing between the parties hereto after the date hereof, and neither party has relied on any verbal representations, agreements, or understandings not expressly set forth herein. 47 . REFERENCE TO GENDER. Where appropriate, the feminine gender may be read as the masculine gender or the neuter gender; the masculine gender may be read as the feminine gender or the neuter gender; and the neuter gender may be read as the masculine or the feminine gender. 48 . MINNESOTA LAW. This Lease shall be construed and enforced in accordance with the laws of the State of Minnesota. 49 . FURTHER ASSURANCES . In addition to any other information which may reasonably requested, either party shall without charge at any time and from time to time hereafter, within ten (10) days after written request, certify by written instrument duly executed and acknowledged to any person, firm, or corporation specified in such request : a. Whether this Lease has been supplemented or amended, and if so, the substance and manner of such supplement or amendment; b. The validity and force and effect of this Lease, in accordance with its tenor as then constituted; c. The existence of any default known thereunder; d. The existence of any offsets, counterclaims, or defenses thereto known by such other party; and e. The commencement and expiration dates of the term of this Lease. Any such certificate may be relied on by the party who requested it and any other person, firm, or corporation to whom it may be exhibited or delivered, and the contents of such certificate shall be binding on the party executing it. 50 . SHORT-FORM RECORDABLE LEASE. The parties will at any time, at the request of either one, promptly execute duplicate originals of an instrument, in recordable form, which will constitute a short form of this Lease, setting forth a description of the Premises, the term of this Lease, and options 330079.7 3 3 • - ��e� l3�(� to renew, and any other portions hereof, excepting the Rent provisions, as either party may request . 51 . FEDERAL INCOME TAX DEDUCTIONS . Only the Lessee shall have the right to take deductions on its tax returns with respect to such buildings, structures, improvements, changes, altera- tions, repairs, additions, and installations and the depreciation or amortization thereof; provided, however, that Lessor makes no representations or warranties as to the amount of any taxes or deductions or the treatment of any particular tax item. 52 . BROKERAGE FEES . Each party hereto warrants that it has not incurred any real estate brokerage fees, finders ' fees, loan brokerage fees, or any other fees to any third party in connection with this Lease, and in the event that any third party institutes legal action in an effort to recover such fees, the parties shall jointly defend such action. If a judgment is obtained against the parties jointly, the party responsible for breach of this warranty shall reimburse the other for the latter' s attorneys ' fees, court costs, expenses, and share of the judgment . 53 . COMPLIANCE WITH G.O. COMPLIANCE LEGISLATION AND THE CONII�II S S IONER' S ORDER. a. Lessee acknowledges and agrees that the Premises are "state bond financed property" , as such term is used in the Compliance Legislation and Commissioner� s Order, and that therefore, the provisions contained in such statute and order apply to the Premises and this Lease. b. For purposes of this Section 53, the following capitalized terms shall have the following meanings : Code: the Internal Revenue Code of 1986, as amended. Grant Financed Facilities : that portion of the Premises financed by the Grant based on any reasonable allocation consistently applied. Non-Exempt Person: any person other than a Tax Exempt Organization. Tax Exempt Organization: either (i) a governmental unit, within the meaning of Section 103 of the Code; or (ii) an organization described in Section 501 (c) (3) of the Code. c. In order to preserve the tax exempt status of the G.O. Bonds, Lessee agrees as follows: 330079.7 3 4 � . �(�V137�, 1) It will maintain its status as a Tax Exempt Organization within the meaning of Section 501 (c) (3) of the Code, exempt from taxation under Section 501 (a) of the` Code, and with respect to the Grant Financed Facilities will not engage in any unrelated trade or business under Section 513 (a) of the Code without regard to whether it is subject to a tax under Section 511 of the Code to any extent that would affect the tax exempt status of the G.O. Bonds; the Lessee is not a "private foundation" as defined in Section 509 (a) of the Code, and the Lessee is now and shall be at all times during the term of this Lease a "501 (c) (3) organization" within the meaning of Section 145 (a) of the Code; 2) Less than three percent (3�) of the Grant will be used to provide property used either (i) by a Tax Exempt Organization in an activity that constitutes an unrelated trade or business of such organization under Section 513 (a) of the Code, or (ii) in a trade or business by a Nonexempt Person (within the meaning of Section 141 of the Code) ; 3) None of the proceeds of the Grant will be used to finance costs other than the costs of depreciable property; 4) No portion of the proceeds of the Grant will be used to provide any of the following facilities or facilities related or incidental thereto: any airplane, skybox, private luxury box, facility used for gambling, or store the principal business of which is the sale of alcoholic beverages for consumption off premises or any existing residential rental property; 5) The amount of the Grant (when increased by the outstanding tax exempt "qualified 501 (c) (3) bonds" , other than ��qualified hospital bonds" , allocated to the Lessee or any organization with which the Lessee is under common management or control, or any other test period beneficiary, determined in accordance with Section 145 (b) of the Code, does not and will not exceed for each such test period beneficiary $150, 000, 000; 6) It will not otherwise knowingly use the Grant or take any action that would adversely affect the exemption from federal income taxation of the G.O. Bonds, nor otherwise knowingly omit, take or cause to be taken any 330079.7 3 5 . , R(�-i 3�� action necessary to maintain such tax exempt status, and if it should take, permit, omit to be taken, as appropriate , any such action, it shall, upon the request of the Commissioner of Finance of the State of Minnesota, take all lawful actions necessary to rescind or correct such actions or omissions; 7) The Lessee need not comply with any of the provisions of subparagraph (c) above if it receives an opinion of bond counsel acceptable to the State that compliance is not necessary to preserve the tax exempt status of the G. 0. Bonds. 54 . LISTING OF JOBS . Lessee shall, for one year from the date hereof, list any vacant or new positions it may have with job services of the Commissioner of Economic Security for the State of Minnesota, or the local service units, as required by Minn. Stat. , §268 . 66, Subd. 1 (1994) as such may subsequently be amended, modified or replaced. 55 . RECORD KEEPING AND REPORTING. Lessee shall maintain books, records, documents, and other evidence pertaining to the costs or expenses associated with the improvement of the premises, and compliance with the requirements contained in this Lease and the Grant Agreement, and shall, upon ten day' s prior written request, allow the Lessor, State, and either the Legislative Auditor or State Auditor for the State of Minnesota, whichever is applicable, to inspect, audit, copy, or abstract, any and all of its books, records, papers, or other documents relevant to this Lease or Grant to Lessor. Lessee shall use generally accepted accounting principles in the maintenance of such books and records, and shall retain all of such books, records, documents and other evidence for a period of five (5) years from the date, such books, records, documents and other evidence are created. The Lessor agrees to protect such information as non-public or trade secret information to the extent such protection is available under Minnesota Statutes, Chapter 13 . Nothing herein shall be construed to require the Lessor to incur any costs or expenses in complying with this provision unless the Lessee agrees in advance to pay or reimburse the Lessor for any costs and expenses incurred by the Lessor in complying with this agreement . 56 . NON-DISCRIMINATION. Lessee agrees not to engage in unlawful discriminatory practices with respect to the Premises, and it shall, with respect thereto, fully comply with all 330079.7 3 6 . , �t�- � 3�4 applicable provisions in Minn. Stat . §§ 363 . 03 and 181 . 59 (1994) , as such may be amended, modified or replaced. 57 . WORKER� S COMPENSATION. Lessee agrees to fully comply with all applicable provisions relating to worker� s compensation contained in Minn. Stat . §§ 176 . 181 Subd. 1, and 176 .182 (1994) , as such may be amended, modified or replaced, with respect to the Premises . 58 . PREVAILING WAGE. SMM agrees to comply with the applicable provisions of Minn. Stat . , Chapter 177, including, but not limited to §§ 177 .41 - 177 .43 as amended from time to time. 59 . REVIEW OF PLANS AND COST ESTIMATES . Lessee agrees, in addition to complying with the requirements of the Development Agreement relating to approval of the Design Drawings and desired changes thereto, Lessee shall comply with all the applicable provisions and requirements contained in Minn. Stat . § 16B.335 (1994) , as such may be amended, modified or replaced, for the SNIl�I Improvements, and in accordance therewith, Lessee agrees to comply with the following provisions and requirements . a. Lessor acknowledges that Lessee has obtained approval from the State of Minnesota of Lessee' s pre-design package. Lessee acknowledges that any changes to such pre- design package must be submitted and consented to by the Commissioner of Administration for the State of Minnesota. Lessee shall provide any and all other information which Lessor or the State may request in order for Lessor or the State to determine that the SMM Improvements will comply with the provisions and requirements contained in Minn. Stat . §16B.335, as such may be amended, modified or replaced. b. If the Project involves a construction of new building, substantial alteration of the exterior dimensions or interior configuration of an existing building, or the acquisition of land, then Lessee will prepare a program plan and cost estimates for all elements necessary to complete the SNIl�! Improvements other than the Ramp (hereinafter in this Section 59 the "Museum") , and present them to Lessor and the Chairs of the Minnesota State Senate Fiance committee and House Ways and Means Committee. Such program plan and cost estimates must note any significant changes in the work to be performed on the Museum, or in its costs, which have arisen since the appropriation for the Museum was enacted. c. Any material change from such pre-design package referred to in subsection a hereinabove or the program plan 330079.7 3 7 . . �(� �-«�� . . and cost estimates referred to in subsection b hereinabove, must be submitted to the Commissioner of Administration for the State of Minnesota for recommendation. d. Prior to initiation of the Project, Lessee shall notify Lessor and the Chairs of the Minnesota State Senate Finance Committee and House Ways and Means Committee that the Project is ready to begin. e. The Project must be (i) completed in accordance with the pre-design package referred to in subsection a hereinabove and the program plan and cost estimates referred to in subsection b hereinabove, (ii) completed in accordance with the time schedule contained in the pre-design package referred to in subsection a hereinabove and the program plan referred to in subsection b hereinabove, and (iii) completed within the budgets contained in the pre-design package referred to in subsection a hereinabove and the cost estimates referred to in subsection b hereinabove except as amended by the Lessee from time to time, which amendments are approved by the State. f . The proceeds of the Grant provided to Lessor relative to this Project will not be disbursed until the pre-designed package referred to in subsection a hereinabove has been reviewed by and received a favorable recommendation from, the Commissioner of Administration for the State of Minnesota and the program plan and cost estimates referred to in subsection b hereinabove have received a favorable recommendation from by the Chairs of the Minnesota State Finance Committee and House Ways and Means Committee. 60 . HAZARDOUS WASTE POLLUTION AND CONTAMINANTS . a. For purposes of this Section 60, the following defined terms shall have the following meanings : (1) Hazardous Substance means asbestos, ureaformaldehyde, polychlorinated biphenyls ("PCBs") , nuclear fuel or material, chemical waste, radioactive material, explosives, known carcinogens, petroleum products and by-products and other dangerous, toxic or hazardous pollutants, contaminants, chemicals, materials or substances listed or identified in, or regulated by, any Environmental Law; (2) Environmental Laws means the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S .C. §9601 et s�. , the Resource Conservation and Recovery Act, 42 U.S .C. §6901 et s�. , the Hazardous 330079.7 3 8 � . �-��� Materials Transportation Act, §1802 et s�. , the Federal Water Pollution Control Act, 33 U.S .C. §1251 et seg, the Clean Air Act, 33 U.S .C. §1321 et se�. , the Clean Air Act, 42 U.S .C. §7401 et secr. , the Minnesota Environmental Response and Liability Act, Minn. Stat . Ch. 115B, the Minnesota Petroleum Tank Release Cleanup Act, Minn. Stat . Ch. 115C, and any other federal, state, county, municipal, local or other statute, law relating to Hazardous Substances; b. Lessee agrees to comply with all Environmental Laws applicable to the Premises . Except as otherwise provided in Section 7 . 1 of the Development Agreement, Lessee shall bear all costs and expenses arising from compliance with all Environmental Laws . If Lessee fails to comply with any Environmental Laws, Lessor shall have the right, but not the obligation, to undertake such compliance and charge Lessee the costs of compliance plus interest at the rate of ten percent per annum accruing from the date of disbursement and also with reasonable attorney fees . c. Lessee agrees to defend, indemnify and hold harmless the Lessor, its officers, employees and agents (hereinafter collectively referred to as the "Indemnitees") from and against and shall reimburse each such Indemnitee for any and all loss, claim, liability, damage, judgment, penalty, injunctive relief, injury to person, property or natural resources, cost, expense, action or cause of action arising in connection with or as the result of the existence, use, handling, storage, transportation, manufacture, release or disposal of any Hazardous Substance in, on or under the Premises, whether foreseeable or unforeseeable, regardless of the source, the time of occurrence or the time of discovery (hereinafter collectively referred to as "Loss") . The foregoing indemnification against Loss includes, without limitation, indemnification against all costs in law or in equity of removal, response, investigation, or remediation of any kind, and disposal of such Hazardous Substances, all costs of determining whether the Premises are in compliance with, and of causing the Premises to be in compliance with, all applicable Environmental Laws, all costs associated with claims for damages to persons, property, or natural resources, and the Indemnitees' reasonable consultants ' fees, court costs and expenses incurred in connection with any thereof . d. The obligations of Lessee to indemnify the Indemnitees shall survive expiration or termination of this Lease and/or the Development Agreement . The rights of the 330079.7 3 9 . . q�,i�-�� Indemnitees hereunder shall be in addition to any other rights or remedies which the Indemnitees may have against the Lessee under this Lease, the Development Agreement, or any other document, or at law or in equity. e. Notwithstanding anything in this Lease to the contrary, the indemnity provided for in this Section 60 shall only apply to any Loss incurred by the Indemnitees as a result of Hazardous Substances introduced in, on, or under the Premises after the date of the Lease. 61 . WAIVER OF SUBROGATION. Lessor and Lessee, on behalf of themselves and each of their respective insurers, hereby waive all claims and rights of recovery against the other which they would, but for this Section, have to the other for losses occurring to the Premises and to the improvements, betterments, trade fixtures, equipment, personal property and other property located therein or thereupon: a. to the extent actually covered by insurance required to be carried by the party waiving; or b. to the extent actually covered by any other insurance being carried by the party waiving at the time of such occurrence. 62 . WAIVER OF CERTAIN DAMAGES . IN CONSIDER.ATION OF ENTERING INTO THIS LEASE, LESSOR AND LESSSE BEREBY WAIVE AND FORE'VER GIVE IIP ANY RIGHT TO CLAIM OR RECOVER DAMAGES FOR LOST INCOME OR PROFITS AS A RESIILT OF ANY BREACB OF THIS LEASE OR ANY DOC[TMENTS OR AGREED�iTS REFERRED TO HEREIN Tn1SICH ARISE OIIT OF AN EVENT OCC[JRRING PRIOR TO THE OPENING OF T8E S�'! IMPROVEMENTS TO THE PIIBLIC EVEN IF SIICS OPENING IS DELAYED AS A RESIILT OF ANY SIICH BRSACH. TIiE AGREEMENTS AND WAIVERS SET FORTH BEREIN SHALL SURVIVS TSI's 13XPIRATION OR TERMINATION OF THIS LEASE. IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. Lessee' s address : THE SCIENCE MUSEUM OF MINNESOTA 120 West Kellogg Blvd. Saint Paul, MN 55102 By Its By Its 330079.7 4 0 � � ��C�� ��� Lessor� s address : CITY OF SAINT PAUL, MINNESOTA 13th Floor, City Hall Annex 25 West 4th Street Saint Paul, NIl�T 55102 By Its Mayor Approved as to form: By Its City Clerk Assistant City Attorney By Its Director of Finance and Management Services 330079.7 4 1 t • �(.Q-���1� STATE OF MINNESOTA ) ) ss . COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of , 1996, by and , the and of The Science Museum of Minnesota, a Minnesota non-profit corporation, on behalf of the corporation. Notary Public 330079.7 4 2 . . �(.e-1��� . � STATE OF MINNESOTA ) ) ss. COUNTY OF R.AMSEY ) The foregoing instrument was acknowledged before me this day of , 1996, by , , and , the Mayor, City Clerk, and Director of Finance and Management Services, respectively, of the City of Saint Paul, Minnesota, a Minnesota municipal corporation, on behalf of the corporation. Notary Public 330079.7 4 3 � . ��_��-�� . Approved as to form: COMMISSIONER OF FINANCE FOR THE STATE OF MINNESOTA: By: Title. 330079.7 4 4 i.. y ��_I��� � EXHIBIT A Legal Description of the Premises 330079.7 ,. . . �-�3��p � EXHIBIT B [Grant Agreement) 330079.7 ,. . .. �t�-���.(� . . EXHIBIT C PERCENTAGE SOURCES OF PROJECT FUNDS AMOUNT ALLOCATION City of Saint Paul $ % State of Minnesota $ g Science Museum of Minnesota $ % TOTAL $ 100% 330079.7 ,. ,. . • �:��13�� EXHIBIT D Legal Description of Plastics Parcel 330079.7 r • � A 2 'n _' l�V' � M EXHIBIT E Lessor 20% Lessee 800 330079.7 *�� t R �`°--'� �p���'� i � a�� � 3�1� Draft Dated November 4, 1996 L E A S E (Ramp) THIS LEASE is entered into this day of , 199 , between the CITY OF SAINT PAUL, MINNESOTA, a Minnesota municipal corporation (the "Lessor�� or ��City") , and THE SCIENCE MUSEUM OF MINNESOTA, a Minnesota non-profit corporation (the "Lessee") . 1 . PURPOSE. The Lessor believes that it serves the public interest of the City to promote and provide for facilities for recreation, public educational and cultural activities in the City. The Lessor believes that a science museum furthers that public purpose, and that convenient parking for such museum is important to the museum' s success . This Lease is being entered into in accordance with that certain Development Agreement between Lessor and Lessee dated , 1996 (the "Development Agreement") . All capitalized terms that are not defined herein shall have the meaning ascribed to those terms in the Development Agreement . 2 . DEMISE AND DESCRIPTION OF PREMISES . In consideration of the rents, mutual promises, and covenants contained herein, the Lessor hereby leases to the Lessee, and the Lessee hereby leases from the Lessor, those certain parcels of real property legally described on Exhibit A attached hereto (the "Premises" ) , together with all improvements on the Premises, all located in the City of Saint Paul, Minnesota. The Premises are leased to Lessee on an AS-IS basis and Lessee acknowledges that Lessor has made no representations or warranties as to the condition, quality, buildability or suitability for development of the Premises . Lessor acknowledges that Lessee intends to lease from Lessor by separate lease (the ��Museum Lease") entered into simultaneously with this Lease certain real property adjacent to the Premises (the "Museum Parcel") on which Lessee intends to construct a science museum of at least 300, 000 square feet (the "Museum") . In the event that Lessee desires to place a mortgage against its interest in the Premises, Lessee agrees to be responsible for Lessor� s cost of preparing, and agrees to join in and be bound by, a declaration of easements (the "City Declaration" ) to be recorded against both the Museum Parcel and the Premises prior to placement of the mortgage creating reciprocal easements for access, repair, maintenance, utilities, support, ingress and egress, and such other matters reasonably determined by Lessor to 334014.4 � ► �C�-1��(.P r i be necessary or appropriate and reasonably acceptable to Lessee and any mortgagee of the Ramp; and which declaration shall also allocate responsibility for repair and replacement of common areas, party walls and other joint, contiguous or overlapping structural or operational areas . Additionally, Lessee will expressly assume and agree to be bound by and to perform all obligations of the owner of the Premises which are set forth in the City Declaration. 3 . TERM AND OPTIONS TO RENEW. The initial term of this Lease shall be for twenty (20) years, commencing on the date of this Agreement and ending , unless sooner terminated as hereinafter provided. Notwithstanding the foregoing sentence, in the event that Lessee completes construction of the Museum and the Ramp as required by the Lease and the Development Agreement, then Lessor and Lessee agree, promptly after substantial completion of the SMM Improvements, to amend this Lease to increase the ending date of the initial term to that date which is thirty (30) years from the date of this Lease. As used herein the expression "term" refers to such initial term and to any renewal thereof as hereinafter provided. Lessee acknowledges that prior to said completion of the Museum and the Ramp the term of this Lease is less than the term which gives Lessee the right of redemption after lease termination provided in Subdivision 2 of Minn. Stat . § 504 . 02 . The Lessor grants to the Lessee, subject to the conditions set forth below, the right and option to renew this Lease for four successive periods of twenty (20) years each, unless terminated as hereinafter provided, subject to and on all of the terms and conditions contained herein. These options shall be exercised by the Lessee by a written notice of intent to renew by the Lessee in the year prior to each renewal year. In no event shall the Lessee be entitled to renew the term hereof, or any renewal term, even though such notice is timely given, if either (i) the Lease has been terminated, or (.ii) an Event of Default has occurred and is continuing as of the date of the expiration of the initial term hereof, or the then applicable renewal term. Lessee' s right to exercise the second and subsequent renewal terms is further conditioned upon Lessee having properly exercised the next previous renewal term. Notwithstanding any other provision of this Section 3 to the contrary, Lessee shall not have the right to exercise any of the renewal rights set forth herein unless Lessee simultaneously exercises its renewal rights under the Museum Lease provided, however, that in the event that Lessee has granted a mortgage on its leasehold interest in accordance with Section 13 hereof, and there are no uncured Events of Default under this Lease, then the Lessee may renew this Lease, irrespective of whether it has 334014.4 2 t r q�- i3�� , � exercised its renewal rights under the Museum Lease, by delivery directly to the Lessor of written notice to renew at least one year prior to the expiration of the initial term or any applicable renewal term. In addition, the term of this Lease may also be renewed in the event the (i) Lessee has granted a mortgage on its leaseholder interest in accordance with Section 13 hereof, (ii) Lessee is in default under the Mortgage or the mortgagee has foreclosed on, or is in the process of foreclosing on, Lessee' s leasehold interest in the Premises, and (iii) there are no uncured Events of Default under this Lease. In such event said mortgagee or purchaser at a foreclosure sale shall have the right to renew this Lease by delivery directly to Lessor of written notice of intent to renew at least 60 days prior to the expiration of the initial term or any applicable renewal term and said mortgagee' s or purchaser' s right to renew shall not be conditioned on, or tied to, any renewal of the Museum Lease. 4 . RENT. No rent is required to be paid to the Lessor by the Lessee for the initial term and any renewal term provided, however, that anything else contained herein or elsewhere notwithstanding, it is the intention of the parties that this Lease is a complete "net" lease and that all costs and expenses, of. any nature or kind whatsoever, attributable to the Premises or Lessee' s use thereof during the term hereof, or any renewal term, shall be the sole responsibility of the Lessee, and the Lessor shall not have any liability therefor, provided that damage to persons or property shall be governed by Section 20 hereof . 5 . PAYMENT OF ASSESSMENTS . a. Taxes as Additional Rental . As "Additional Rent" hereunder, the Lessee shall pay and discharge as they become due, promptly and before delinquency, all real estate taxes, assessments, rates, charges, license fees, municipal liens, levies, excises, or imposts, whether general or special or ordinary or extraordinary, of every name, nature, and kind whatsoever, including all governmental charges of whatsoever name, nature, and kind which shall be levied, assessed, charged, or imposed or which may become a lien or charge on or against the Premises or any part thereof, the leasehold of the Lessee herein, any building or buildings, or any other improvements now or hereafter thereon or on or against the Lessee' s estate hereby created which may be a subject of taxation, during the entire term hereof, including any renewal term, excepting only those taxes hereinafter specifically excepted in subsection c. 334014.4 3 � � �� - i��� , b. Assessments Affecting Improvements . Specifically, but without any way limiting the generality of the require- ments of subsection a. , the Lessee shall pay all special assessments and levies or charges made by any municipal or political subdivision for local improvements and may pay them in cash as they shall fall due and before they shall become delinquent, or in installments each year as assessed by any such municipal or political subdivision. If, by making any such election to pay in installments, any such installments shall be payable after the termination of this Lease or any extended term thereof, such unpaid installments shall be prorated as of the date of termination, and amounts payable after such date shall be paid by the Lessor. All of the taxes and charges under this section shall be prorated at the commencement and expiration of the term hereof . c. Taxes Excepted. Anything in this section to the contrary notwithstanding, the Lessee shall not be required to pay any estate, gift, inheritance, succession, franchise, income, or excess profits taxes which may be payable by the Lessor or by the Lessor� s legal representatives, successors, or assigns, nor shall the Lessee be required to pay any tax that might become due on account of ownership of property other than the Premises which may become a lien on the Premises or collectible out of the Premises . d. Contesting Taxes . If the Lessee shall in good faith desire to contest the validity or amount of any tax, assessment, levy, or other governmental charge herein agreed to be paid by the Lessee, the Lessee shall be permitted to do so and to defer payment of such tax or charge, the validity or amount of which the Lessee is so contesting, until final determination of the consent, on giving to the Lessor written notice thereof prior to the commencement of any such contest, provided, however, that Lessee shall be absolutely obligated to pay such tax or charge no later than 30 days before such unpaid tax or charge will result in a forfeiture of the Premises or any part thereof . If Lessee does undertake any such contest it shall diligently pursue such contest to completion. e. Disposition of Rebates . All rebates on account of any such taxes, rates, levies, charges, or assessments required to be paid and paid by the Lessee under the provisions hereof shall belong to the Lessee, and the Lessor will on the request of Lessee execute any receipts, assign- ments, or other acquittances that may be necessary on the Premises in order to secure rebates that may be received by the Lessor. 334014.4 '4 Y T q`Q,r I 3�� � f . Lessor' s Right to Pay Taxes on Behalf of Lessee. In the event the Lessee shall fail to comply with the preceding terms of this section, the Lessor may, but shall not be obligated to, pay any such taxes or assessments and charge it, plus interest on such amount at a rate of 10� from the date paid by Lessor, as Rent immediately due and payable. g. Receipts . The Lessee shall at the request of Lessor obtain and deliver to the Lessor receipts or duplicate receipts for all taxes, assessments, and other items required hereunder to be paid by the Lessee, promptly on payment thereof . h. Acknowledgement. Lessee acknowledges that Lessor has made no representations or warranties of any kind with respect to the amount of any real estate taxes, special assessments or other charges which may be levied against the Premises throughout the initial term, or any renewal term, of this Lease. Lessor agrees to cooperate with Lessee in the taking of any reasonable action determined by Lessee to be necessary to obtain or maintain tax exempt status for Lessee' s use of the Premises provided, however, that Lessee shall be responsible for all actual and out of pocket costs and expenses incurred by Lessor in connection with such cooperation. 6 . PAYMENT OF UTILITIES. As Additional Rent, the Lessee shall fully and promptly pay for all water, gas, heat, light, power, telecommunications and all other utilities of every kind furnished to the Premises throughout the term hereof, and the Lessor shall have no responsibility of any kind for any thereof . 7 . LESSEE REPRESENTATIONS. WARRANTIES AND COVENANTS . Lessee covenants with and warrants and represents to Lessor as follows : a. It has legal authority to enter into, execute, and deliver this Lease, and that it has taken all corporate and other actions necessary and incident to its execution and delivery of such documents . b. It will comply with all of the terms, conditions, covenants, requirements, and/or warranties in this Agreement at all times during the term hereof . c. It has made no material false statement, or material misstatement of fact, in connection with its receipt of this Lease, and all of the information previously submitted to Lessor, or to be submitted to the Lessor in the 334014.4 5 Y . °l(�- �3�� � . future, relating to this Lease, is and will be true, complete and correct by Lessee in all material respects . d. The execution and delivery of this Lease by Lessee will not constitute a violation of any provisions of its Articles of Incorporation or By-Laws, or of the laws of the State of Minnesota, and there are no actions, suits, or proceedings pending, or to its knowledge threatened, before or by any judicial body or governmental authority against or affecting it relating to the Premises, and it is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority which would impair its ability to enter into this Lease, or to perform any of the acts required of it in this Lease. e. Neither the execution or delivery of this Lease, nor compliance with any of the terms, conditions, requirements, or provisions contained herein, is prevented by, is a breach of, or will result in a breach of any term, condition, or provision of any agreement or document to which it is now a party, or by which it, or any of its properties, is bound. f . Subject to Unavoidable Delays (as defined in the Development Agreement) , and the conditions precedent set forth in Section 4 .10 of the Development Agreement which are specifically incorporated herein by reference, by no later than the Completion Date, the improvements on the Premises will be substantially constructed in such a manner as will allow the Premises to be operated as a public parking ramp containing at least 700 stalls. g. The Premises and the contemplated use thereof will not violate in any material respect any applicable zoning or use statute, ordinance, building code, rule or regulation, or any covenant or agreement of record, relating to the Premises . h. The construction of the improvements on the Premises will be performed in material compliance with all applicable laws, statutes, rules, ordinances, and regulations, including but not limited to building code, disability, access, zoning, air quality, pollution control, recyclable materials, and prevailing wage requirements as issued by any federal, state, or local political subdivisions having jurisdiction over the Premises . i . All applicable licenses, permits, and bonds required for the construction of the improvements on the Premises shall be obtained. 334074.4 6 , . 9�- ►3�� , , j . It shall furnish satisfactory evidence regarding the representations, warranties and covenants contained herein as may be required by Lessor and requested in writing from time to time. 8 . LESSOR REPRESENTATIONS, WARR.ANTIES AND COVENANTS . Lessor covenants with and warrants and represents to Lessee as follows : a. It has legal authority to enter into, execute, and deliver this Lease, and that it has taken all official and other actions necessary and incident to its execution and delivery of such documents . b. It will comply with all of the terms, conditions, covenants, requirements, and/or warranties in this Agreement applicable to Lessor, at all times during the term hereof. c. The execution and delivery of this Lease by Lessor will not constitute a violation of any provisions of its charter, or of the laws of the State of Minnesota, and there are no actions, suits, or proceedings pending, or to its knowledge threatened, before or by any judicial body or governmental authority against or affecting it relating to the Premises, and it is not in default with respect to any order, writ, injunction, decree, or demand of any court or any governmental authority which would impair its ability to enter into this Lease, or to perform any of the acts required of it in this Lease. d. Neither the execution or delivery of this Lease, nor compliance with any of the terms, conditions, requirements, or provisions contained herein, is prevented by, is a breach of, or will result in a breach of any term, condition, or provision of any agreement or document to which it is now a party, or by which it, or any of its properties, is bound. e. It has made no material false statement, or material misstatement of fact, in connection with its execution of this Lease, and all of the information previously submitted to Lessee, or to be submitted to the Lessee in the future, relating to this Lease, is and will be true, complete and correct by Lessor in all material respects . 9 . WARR.ANTIES OF TITLE AND OUIET POSSESSION. The Lessor covenants that the Lessor is seized of the Premises in fee simple and has full right to make this Lease subject to the terms hereof, and, assuming the Lessee fully performs as required by 334014.4 7 , . °Il�- l 3�1� � this Lease, the Lessee shall have quiet and peaceable possession of the Premises during the term hereof as against the acts of all parties claiming title to or a right to the possession of the premises, with the exception, however, of the following: a. Easements, covenants, conditions, restrictions, and limitations, if any, now appearing of record; b. Reservation of any minerals or mineral rights reserved to the State of Minnesota; c. Building and zoning laws, ordinances, and state and federal regulations; d. Any defects which may be disclosed by an accurate survey [or if a survey has been obtained at the time of execution delete this language and refer to specific survey matters] ; and e. Any liens or other encumbrances created by the Lessee. 10 . USE OF PREMISES. Subject to the other terms and provisions contained herein, the Lessee shall be permitted to use the Premises only for the construction, operation and maintenance of a public parking ramp. No use shall be made or shall be permitted to be made of the Premises or no acts shall be done which will cause a cancellation of any insurance policy covering any building located on the Premises, or any part thereof . The Lessee shall, at its sole cost, comply with all requirements pertaining to the Premises of any insurance organization or company necessary for the maintenance of insurance, as herein provided, covering any building and appurtenances at any time located on the Premises . Furthermore, during the term of this Lease, the Lessee shall comply with all applicable laws affecting the Premises if either: a) the breach of such laws might result in any penalty on the Lessor or the forfeiture of the Lessor� s title to the Premises or b) the breach of which would have an adverse effect on public health or safety. The Lessee shall not commit or allow to be committed any waste of or nuisance on the Premises . The restrictions on use contained in this Section 10 are in addition to the special use provisions contained in Section 38 hereof . il. ABANDONMENT OF PREMISES . If the Lessee shall abandon, vacate, or surrender the Premises or shall be dispossessed by process of law, or otherwise, any personal property belonging to the Lessee and left on the Premises shall be deemed to be abandoned, at the option of the Lessor. 334014.4 8 , . ��-i 3--�� , 12 . LESSOR� S RIGHT OF ENTRY. The Lessee shall permit the Lessor and the agents and employees of the Lessor to enter into and on the Premises at all reasonable times during business hours and with at least five days' written notice for the purpose of inspecting them or for the purpose of posting notices of nonresponsibility for alterations, additions, or repairs, without any charge to Lessor and without any liability to the Lessor for any loss of occupation or quiet enjoyment of the Premises thereby occasioned. 13 . ENCUMBRANCE OF LESSEE' S LEASEHOLD INTEREST. The Lessee may encumber by mortgage or other proper instrument its leasehold interest in the Premises including all buildings and improvements placed by the Lessee thereon, as security for any indebtedness of the Lessee incurred to finance or refinance the improvements and buildings on the Premises, provided (a) such mortgage contains an acknowledgement that the mortgagees rights are subject to the rights of Lessor under this Lease and (b) such mortgage gives Lessee access to insurance and condemnation proceeds so as to allow Lessee the right to rebuild or restore any portions of the Premises destroyed or condemned in the event that Lessor permits such rebuilding or restoration under the terms of this Lease, and (c) the proceeds of such mortgage shall be used to reduce the debt incurred for the SMM Improvements . No such encumbrance, or any foreclosure, conveyance, or exercise of right by any secured lender shall relieve the Lessee from its liabilities hereunder, nor prevent the Lessor from exercising its rights to terminate the Lease. If the Lessee shall so encumber its leasehold interest and if the Lessee or the holder of the indebtedness secured by such encumbrance shall give notice to the Lessor of the existence thereof and the address of such holder, then the Lessor will mail or deliver to such holder at that address a duplicate copy of all notices in writing which the Lessor may, from time to time, give to or serve on the Lessee under and pursuant to the terms and provisions hereof . Such copies shall be mailed or delivered to such holder at or as near as possible to the same time such notices are given to or served on the Lessee. Such holder may, at its option, at any time before the rights of the Lessee shall be terminated as provided herein, pay any of the rent due hereunder or pay any taxes and assessments or do any other act or thing required of the Lessee by the terms hereof or do any act or thing that may be necessary and proper to be done in the observance of the covenants and conditions hereof or to prevent the termination hereof . Al1 payments so made, and all things so done and performed by such holder, if done prior to the rights of Lessee having been terminated, shall be as effective to prevent a termination of the rights of the Lessee 334014.4 9 . . 1(�� 1��� , � hereunder as they would have been if done and performed by the Lessee. Upon such holder succeeding to the interest of Lessee hereunder, such holder shall be bound by all terms and conditions of this Lease, and shall be deemed to have assumed all of Lessee' s obligations hereunder. 14 . SUBLETTING AND ASSIGNMENTS . The Lessee shall not assign any of its rights hereunder, or sublet all or any portion of the Premises, without the Lessor' s prior written consent which consent may be given or withheld in Lessor' s sole discretion, provided, however, that Lessee may agree to contract parking for up to stalls which meets each of the following conditions : a. The term of any such contract shall not exceed one (1) year; and b. The contract rate shall be the fair market value of comparable contract parking stalls in the immediate area. Notwithstanding the foregoing, the Lessee shall be permitted to mortgage its interest hereunder to any mortgagee, provided such mortgage is in connection with the Lessee' s financing or refinancing of the development or improvement of the Premises as contemplated herein subject to the requirements of Section 13 hereof . On the foreclosure of any such mortgage, the mortgagee may thereafter assign or transfer its interest in the leasehold to any other assignee or transferee, provided that any assignee thereof shall agree to be bound by the terms and conditions of this Lease. Thereafter, there shall be no other assignments or transfers of the leasehold interest without the prior written consent of the Lessor, which consent shall not be unreasonably withheld. The Lessor' s consent to one assignment or transfer shall not be deemed to be a consent to any subsequent assignment or transfer. Any other transfer or assignment without the Lessor� s consent shall be void and shall at the option of the Lessor constitute a Default hereunder. 15 . NOTICES . All communications, demands, notices, or objections permitted or required to be given or served under this Lease shall be in writing and shall be deemed to have been duly given or served when delivered in person to the other party or its authorized agent or two (2) days after being deposited in the United States mail, postage prepaid, for mailing by certified or registered mail, return receipt requested, and addressed to the other party to this Lease, to the address set forth next to such party' s signature at the end of this Lease, or if to a person not a party to this Lease, to the address designated by a party to 334014.4 1 0 , . q'(�- ► 3�� , � this Lease in the foregoing manner. Any party may change its address by giving notice in writing, stating its new address, to any other party as provided in the foregoing manner; provided that the Lessee' s address for notice after it is occupying the SMM Improvements shall be the SMM Improvements without the need for notice of change of address . Commencing on the tenth (lOth) day after the giving of such notice, such newly designated address shall be such party' s address for the purposes of all communications, demands, notices, or objections permitted or required to be given or served under this Lease. 16 . CONSTRUCTION OF INITIAL IMPROVEMENTS . The Lessee shall construct the SMM Parking Ramp subject to and in accordance with all terms and conditions of the Development Agreement, this Lease and in material compliance with all applicable federal, state and local laws, rules and regulations; and in material compliance with the terms and conditions of all applicable licenses and permits . All of such improvements, including any fixtures related to the operation of any buildings located on the Premises (but specifically excluding trade fixtures, equipment, and other personal property of Lessee and leased or rented property or equipment leased or rented other than pursuant to this Lease and the Museum Lease) , shall immediately become the property of Lessor, and Lessee shall have only a leasehold interest therein, subject to the terms and provisions hereof . Lessee is hereby authorized by Lessor to provide for the construction and equipment of the SMM Parking Ramp in accordance with Minnesota Statutes, §§ 469 .155 (8) and 471.191, and, at the option of Lessee, with or without compliance with Minnesota Statutes, § 471 .345 . 17 . CONSTRUCTION OF ADDITIONAL BUILDINGS AND IMPROVEMENTS . The Lessee, but only with the prior written approval of the Lessor which approval may be given or withheld in the sole discretion of Lessor, shall have the right to make such alterations, improvements, and changes to any building or improvement which may from time to time be on the Premises as the Lessee may deem necessary or to replace any such building or improvement with a new one. Notwithstanding the preceding sentence, Lessor agrees that changes to the improvements on the Premises which do not significantly affect the site plan, elevations or exterior of the SMM Parking Ramp, do not require the consent of Lessor. Any new building permitted by Lessor and constructed by the Lessee on the Premises, and any changes to the SMM Parking Ramp, shall be constructed in material compliance . with all applicable federal, state and local laws, rules and regulations; and in compliance with the terms and conditions of all applicable licenses and permits; and shall, together with any fixtures related to the operation of any buildings located on the Premises (but specifically excluding trade fixtures, equipment, 334014.4 1 1 , � q�.�3-�� . exhibits and other personal property of the Lessee and leased or rented property and equipment leased or rented other than pursuant to this Lease and the Museum Lease) , immediately become the property of the Lessor, and the Lessee shall have only a leasehold interest therein, subject to the terms and provisions contained herein. 18 . REPAIRS AND DESTRUCTION OF IMPROVEMENTS . a. Maintenance of Improvements . The Lessee shall, throughout the term of this Lease, at its own cost and without any expense to the Lessor, keep and maintain the Premises, including all buildings and improvements of every kind which may be a part thereof, and all appurtenances thereto, including public and private sidewalks located thereon and adjacent thereto, in good, sanitary, lawful, and neat order, condition and repair and, except as specifically provided herein, shall restore and rehabilitate any improvements of any kind which may be destroyed or damaged by fire, casualty, or any other cause whatsoever. The Lessor shall not be obligated to make any repairs, replacements, or renewals of any kind, nature, or description whatsoever to the Premises or any buildings or improvements thereon. b. Damage to and Destruction of Buildings or Improve- ments. The damage or destruction or partial destruction of any building or other improvement which is a part of the Premises shall not release the Lessee from any obligation hereunder, except as hereinafter expressly provided. In case of damage to or destruction of such building or improvement which is not substantial, the Lessee shall at its own expense promptly repair and restore the same to a condition as good or better than that which existed prior to such damage or destruction, and Lessee shall have the right to any insurance proceeds the premium on which has been paid by the Lessee, to be used by Lessee to pay the cost of such repair and restoration. In the case of damage to or destruction of such building or improvement which is substantial, Lessee shall at its own expense promptly repair and restore the same to a condition as good or better than that which existed prior to such change or destruction, unless Lessee, in its judgment, determines that it is inappropriate to rebuild the building or improvements on the Premises, in which case this Lease and the Lessee' s interest in the Premises shall be terminated, and the insurance proceeds shall be paid in accordance with the provisions of Section 18c. hereof. Notwithstanding the immediately preceding sentence, in the event that the Museum continues in operation despite the damage to the SMM Parking Ramp, or 334014.4 1 2 1 f 1�+" � � l in the event that Lessee determines in accordance with the Museum Lease to rebuild or restore the Museum, then Lessee shall be obligated to rebuild the SNIl�I Parking Ramp regardless of whether the damage to the SMM Parking Ramp is substantial . In the event that Lessee properly elects not to rebuild, Lessee shall do so by giving written notice to Lessor of its determination within 180 days of the damage or destruction of the buildings or improvements . If Lessee does not elect to rebuild in accordance with the foregoing provisions, this Lease shall terminate as of the date specified in Lessee' s notice to Lessor, and all rent and other obligations of the Lessee shall terminate on that date provided, however, that the insurance proceeds shall be applied in accordance with the provisions of Section 18 . hereof . No settlement with the insurance company shall be agreed to by Lessee without the prior written consent of the Lessor. Except as otherwise provided in this section, and without limiting such obligations of the Lessee, if Lessee elects to rebuild, it is agreed that the proceeds of any insurance covering such damage or destruction shall be paid to the Lessor and the Lessee, to be held in escrow for such repair or replacement with a mutually acceptable escrow agent, to be disbursed in accordance with standard commercial construction lending conditions customarily required by institutional lenders . c. Allocation of Proceeds. In the event that Lessee properly elects not to rebuild, and in the event that Lessee has not granted a mortgage on its leasehold interest, then the proceeds obtained as a result of casualty shall be divided between Lessor and Lessee in accordance with the percentages shown on Exhibit B attached hereto. In the event that Lessee properly elects not to rebuild, and in the event that Lessee has granted a mortgage on its leasehold interest, then the proceeds obtained as a result of casualty shall be allocated as follows : � (1) first, to Lessor that amount reasonably estimated by Lessor to either: i) demolish and clear the Premises, or ii) repair and restore so much of the improvements to the Premises as can reasonably be restored to use as a parking ramp and to remove or secure that portion of the improvements to the Premises as cannot be so restored, (2) second, to such mortgagee to pay the outstanding interest and principal of Lessee' s indebtedness thereto, and 334014.4 1 3 , , �(��l'��(� (3) third, the balance to Lessor and Lessee in accordance with the percentages shown on Exhibit B attached hereto. 19 . MECHANICS ' LIENS . The Lessee hereby covenants and agrees that the Lessee will not permit or allow any mechanics ' or materialmen' s liens to be placed on the Lessor' s interest in the Premises during the term hereof . Notwithstanding the previous sentence, however, in the event any such lien shall be so filed against the Lessor' s interest, the Lessee shall take all steps necessary to remove it within 120 days of its being filed; provided, however, that the Lessee may contest any such lien provided the Lessee first posts a surety bond, letter of credit or cash with the applicable court sufficient to release the Premises from such lien, or otherwise protect the Lessor from foreclosure thereof . 20 . INDEMNIFICATION OF LESSOR. a. To the fullest extent permitted by law, Lessee shall, and hereby does, indemnify, save, hold harmless, and defend Lessor, its officials, employees, representatives and agents but only when acting in their capacities as such (collectively, the "Indemnified Party" or ��Indemnified Parties") , from and against all claims, costs (including reasonable attorneys fees to the extent provided in clause (e) below) liabilities, losses or damages suffered or incurred by any of the Indemnified Parties arising from or as a result of any loss, injury, death, or damage to persons or property arising out of the use, possession, construction of improvements, operation or maintenance of the Premises or any part thereof, whether such loss, injury, death, or damage shall be caused by or in any way result from or arise out of any act, omission, or negligence of Indemnified Parties . b. Lessee hereby waives and releases all claims against the Indemnified Parties for damages to any building and improvements which are now on or hereafter placed or built on the Premises and to the property of Lessee in, on, or about the Premises . The Lessee also agrees that it will not assert against the Indemnified Parties in any legal proceeding any claim, cross-claim or third party claim for which Lessee is obligated under the provisions of this Section 20 (a) to provide indemnification to the Indemnified Parties. c. Notwithstanding the provisions of clauses (a) and (b) above, the provisions of clause (a) and (b) above of this Section 20 shall not apply to claims, costs, 334014.4 1 4 � . , ��� �3�� liabilities, losses or damages which are caused by the gross negligence or willful or intentional misconduct of the Indemnified parties . No person or entity other than the Indemnified Parties shall have any benefit whatsoever from the agreements contained in clause (a) and (b) above, other than any indirect benefit accruing as a result of their status as a taxpayer or resident of the City, and shall not be deemed to be a third party beneficiary of the agreements of Lessee contained in clauses (a) and (b) above. d. Nothing in this Section 20 shall be construed to, and shall not, expand Lessor' s maximum liability over the limits set forth in Minnesota Statutes, Chapter 466, as amended from time to time, or any other or successor law which has the effect of limiting Lessor' s liability. e. Promptly after receipt by an Indemnified Party of notice of the commencement of any action for which Lessee has indemnified the Indemnified Parties hereunder, the Indemnified Party will notify Lessee in writing of the commencement thereof, and, subject to the provisions hereinafter stated, Lessee shall assume, at its expense, the defense of such action (including the employment of counsel, who shall be counsel reasonably satisfactory to the Indemnified Parties) insofar as such action shall relate to any alleged liability for which Lessee has indemnified the Indemnified Parties hereunder. The Indemnified Parties ' shall have the right to employ separate counsel in any such action and to participate in the defense thereof, but the fees and expenses of such counsel shall not be at the expense of Lessee unless (i) the employment of such counsel has been specifically authorized by Lessee, or (ii) the named parties to any such action (including any impleaded parties) include more than one of the Indemnified Parties and a conflict of interest among Lessee and Indemnified Parties exists, and as a result the Lessee and the Indemnified Parties cannot adequately be represented by the same counsel . In the case of such a conflict of interest, Lessee shall not have the right to assume the defense of such action on behalf of such Indemnified Parties and the Indemnified Party shall have the right to select separate counsel, at the expense of the Lessee but subject to the limitation set forth in the following sentence, to assume such legal defense and to otherwise participate in the defense of such action on behalf of the Indemnified Parties. In connection with any one such action or separate but substantially arising out of the same general allegations or circumstances, the Lessee shall not be liable for the fees and expenses of more than one separate firm of attorneys for all such Indemnified Parties, which firm shall be reasonably 334014.4 1 5 . , �(.e- 13�i� acceptable to the Lessee and shall be designated in writing by the Indemnified Parties . The Lessee shall not be liable for any settlement of any such action effected without its written consent . If such action is settled with the written consent of the Lessee, or if there be a final judgment for the plaintiff in any such action, with or without the consent of Lessee, Lessee agrees to indemnify and hold harmless the Indemnified Parties from and against any loss or liability by reason of such settlement or judgment, but only to the extent provided in subparagraph (a) of this Section 20 . This indemnity includes reimbursement for expenses reasonably incurred by any of the Indemnified Parties in investigating the claim and in defending it if the Lessee declines to assume the defense. 21 . ATTORNEYS' FEES . [Intentionally Omitted] 22 . INSURANCE. a. Insurance Coverage of Premises . The Lessee shall at all times during the terms of this Lease and at the Lessee' s sole expense keep all improvements which are now or hereafter a part of the Premises insured against "all risks" for the full insurable value of such improvements, and during construction of the Ramp ��builders risk�� and standard fire and extended coverage, with a deductible not to exceed $100, 000, and with loss payable to the Lessor, the Lessee, �and any mortgagee as their respective interests may appear. Any loss adjustment shall require the prior written consent of the Lessor, the Lessee, and any mortgagee. Lessee shall be responsible for any insurance deductible. b. Commercial General Liability Insurance. The Lessee shall maintain in effect throughout the term of this Lease, at its own expense, commercial general liability insurance covering the Premises and its appurtenances and the sidewalks fronting on the Premises in the amount of at least Two Million Dollars combined single limit, and insurance on all boilers and other pressure vessels, fired or unfired. Such insurance shall : (i) be primary with respect to Lessor' s insurance or self-insurance; (ii) not exclude explosion, collapse and underground property damage; (iii) be written on an "Occurrence" Form policy basis; and (iv) not contain an "aggregate" policy limit unless specifically approved in writing by Lessor. c. Owner' s Protective Policy. Lessee shall, at its own expense, maintain an Owners' Protective Policy including blanket contractual liability coverage, personal injury liability coverage and broad form property damage liability 334014.4 1 6 . � ��,- �3�� endorsement with a combined single limit of not less than $2, 000, 000 per occurrence. Such insurance shall : (i) name the City of Saint Paul as the insured; (ii) be primary with respect to Lessor� s insurance or self-insurance; (iii) not exclude explosion, collapse and underground property damage; (iv) be written on an "occurrence" Form policy basis; and (v) not contain an "aggregate" policy limit unless specifically approved in writing by Lessor: d. Automobile Liability Insurance. Lessee shall maintain Automobile Liability Insurance with a minimum combined single limit of $1, 000, 000 per occurrence. Such insurance shall : (i) name the City of Saint Paul as an . additional insured; (ii) be primary with respect to Lessor' s insurance or self-insurance; (iii) not exclude explosion, collapse and underground property damage; (iv) be written on an "occurrence" Form policy basis; and (v) not contain an "aggregate" policy limit unless specifically approved in writing by Lessor. e. Workers ' Compensation Insurance. Lessee shall maintain Workers ' Compensation Insurance with not less than statutory minimum limits; and Employers ' Liability Insurance � with minimum limits of at least $100, 000 per accident and with an all states endorsement . f . Insurance Certificates . Lessee shall supply to Lessor current insurance certificates for policies required in this Section. The said certificates shall certify whether or not the agent has errors and omissions insurance coverage. At the written request of Lessor, Lessee shall promptly furnish to lessor all written notices and all paid premium receipts by Lessee regarding such required insurance. g. Additional Required Insurance. 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 Lessee may determine to be necessary in relation to this Lease or its operation of the Premises . h. Non-waiver of Statutory Limits . Nothing in this contract shall constitute a waiver by the Lessor of any statutory limits or exceptions on liability. i . Placement of Insurance. 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 334014.4 1 7 . . q�- i3�� to Lessor on the date of Lessee' s execution of this agreement . The policies required in this Section shall be endorsed to indicate that the insurer cannot cancel or change the insurance without first giving the Lessor thirty (30) days ' written notice. j . Lessor' s Right to Pay Premiums on Behalf of Lessee. The Lessee shall pay all of the premiums therefor and deliver such policies, or certificates thereof, to the Lessor. In the event of the failure of the Lessee, either to effect such insurance in the names called for or to pay the premiums therefor or to deliver such policies or certificates thereof to the Lessor, the Lessor shall be entitled, but shall have no obligation, to effect such insurance and pay the premiums therefor. Such premiums, together with interest thereon at the rate of ten percent per annum accruing from the date of payment by Lessor, shall be repayable to the Lessor within thirty (30) days after written notice of the payment of such insurance, and failure to repay the premiums shall carry with it the same consequences as failure to pay any installment of Rent . Each insurer mentioned in this section shall agree, by endorsement on the policy or policies issued by it, or by independent instrument furnished to the Lessor, and in form acceptable to the Lessor, that it will give to the Lessor thirty (30) days ' written notice before the policy or policies in question shall be altered or cancelled. k. Increase in Coveraae. The insurance and the size of any applicable deductible required to be maintained pursuant to this Lease shall be subject to review as to its adequacy by an Independent Insurance Consultant once every three years beginning in the year 2003 . The Lessee shall cause such review to be conducted and shall cause such Consultant to prepare a written report regarding such review containing such Consultant' s recommendations, if any, for changes in such insurance. The Lessee shall cause copies of such report to be delivered promptly to the Lessor and agrees to follow the recommendations of such Independent Insurance Consultant to the extent practicable. For purposes of this subsection K, the term "Independent Insurance Consultant" means any person who is not an employee or officer of Lessee, appointed by Lessee, qualified to survey risks and to recommend insurance coverage for organizations engaged in like operations to those of the Lessee and having a favorable reputation for skill and experience in such surveys and such recommendations, and who may be a broker or agent with whom 334074.4 1 8 . . qc.�— � 3—�� Lessee transacts business, and reasonably acceptable to Lessor. l . Blanket Insurance Policies . Notwithstanding anything to the contrary contained in this section, the Lessee' s obligations to carry the insurance provided for herein may be brought within the coverage of a so-called blanket policy or policies of insurance carried and maintained by the Lessee; provided, however, that the coverage afforded the Lessor will not be reduced or diminished or otherwise be different from that which would exist under a separate policy meeting all other requirements of this Lease by reason of the use of such blanket policy of insurance. 23 . PROHIBITION OF INVOLUNTARY ASSIGNMENT. Except for foreclosure of a mortgage permitted by Section 13, neither this Lease nor the leasehold estate of the Lessee nor any interest of the Lessee hereunder in the Premises or in any buildings or improvements thereon shall be subject to involuntary assignment, transfer, or sale, by operation of law or otherwise, and any such attempt at involuntary assignment, transfer, or sale shall be void and of no effect . For purposes of this subsection, the merger or consolidation of Lessee with any other entity or entities shall be deemed to be a transfer and prohibited by this subsection unless either: (i) such merger is with another entity and Lessee is the survivor and remains exempt from income tax under § 501 (c) (3) of the Internal Revenue Code of 1986 as amended (the "Code") ; or (ii) such merger is with another entity which is exempt from income tax under § 501 (c) (3) of the Code, Lessee is not the surviving entity, said surviving entity expressly assumes all obligations of Lessee hereunder, said surviving entity remains exempt from income tax under §501 (c) (3) of the Code, and said surviving entity has comparable or higher "net worth�� (or its equivalent under accounting principles applicable to Section 501 (1) (3) organizations) as Lessee has on the date hereof . The occurrence of any involuntary assignment prohibited by the provisions of this Section 23 shall be deemed to constitute a Default under Section 24 hereof, and upon the expiration of any applicable cure period contained in Section 25 hereof, the Lessor shall be entitled to exercise all remedies set forth in this Lease, subject, however, to the provisions of Section 28 hereof . 24 . EVENTS OF DEFAULT. Any of the following events shall constitute a "Default" under this Lease: a. If the SMM Parking Ramp is not completed by the Completion Date substantially in accordance with the plans and specifications; or 334014.4 1 9 . . q�- ,3-�� b. Subject to any payments being contested in good faith, if the Lessee fails to fully and completely pay all sums lawfully owing for the completion of the SPM�I Parking Ramp in accordance with the plans and specifications; or c. If, without the written consent of the Lessor, any part of the SMM Parking Ramp ceases to be used as a public parking ramp. d. If the event set forth in Section 23 hereof occurs; or e. If, without the written consent of Lessor, and except for the permitted encumbrances identified on Exhibit A attached hereto, and except as allowed under Sections 13 or 14 hereof, Lessee sells, transfers, leases, encumbers, or otherwise conveys, in any way or manner, whether voluntary or involuntary, or by action of law, all of any part of its interest in the Premises, or amends or modifies any agreement relating to such sale which had previously been so consented to and approved by Lessor; or f . If the Lessee fails to continuously maintain the insurance required by Section 22 of this Lease; or g. If Lessee, upon ten (10) days prior written request, refuses to allow Lessor to inspect audit, copy, or abstract any and all of Lessee' s books, records, papers, or other documents relevant to this Lease, to Lessor, or the Premises; or h. If any representation or warranty made by Lessee hereunder prove to have been untrue or incorrect in any material respect, as of the time such representation or warranty was made; or i . If, without the written consent or waiver of Lessor, Lessee fails to fully comply with any other provision, term, condition, covenant or warranty contained in this Lease or the City Declaration; or j . If, a Default by SMM under the Development Agreement shall occur; or k. If, under any document, instrument or agreement relating to the financing, or refinancing, of the improvements to the Premises, there occurs an event which, but for the giving of notice or the passage of time, or both, would constitute a default or event of default by Lessee thereunder and the other party thereto gives notice 334014.4 2� _l l¢� I���Q to the Lessee of the default if notice is required before the exercise of remedies thereunder; or 1 . If, under any other document, instrument or agreement related to the IMAX attraction, or any similar attraction which replaces the IMAX attraction, there occurs an event which, but for the giving of notice or the passage of time, or both, would constitute a default or event of default thereunder and the other party thereto gives notice if notice is required before the exercise of remedies thereunder; or m. Subject to the provisions of Section 29 hereof, if a Default under the Museum Lease shall occur. 25 . NOTICE OF DEFAULT. (1) Upon the occurrence of a Default, an Event of Default shall not be deemed to have occurred under this Lease unless the Lessor has given the Lessee written notice of the Default and the Lessee has failed to cure such Default within the time period specified in subparagraph (2) below or, if applicable, in subparagraph (3) below; provided that, in the case of a Default hereunder which is also a Default under the Development Agreement, the notice and cure period shall be as specified in this Lease. (2) For a Default described in Section 24 (g) the notice and cure period shall be ten (10) days; for those Defaults described in Sections 23 and 24 (f) the notice and cure period shall be thirty (30) days; and for all other Defaults the notice and cure period shall be sixty (60) days, prior to the issuance of a CO and ninety (90) days after the issuance of the C0. (3) Notwithstanding the preceding paragraph of this . Section 25, (a) in the event that a Default occurs prior to the issuance of the CO and cannot be cured witYiin the applicable cure period provided in paragraph (2) above, and in the event that Lessee has commenced the action necessary to cure the Default during the applicable cure period provided in the paragraph (2) above, then Lessee shall automatically have an additional cure period not to exceed thirty (30) days, without the written consent of the City, on the condition that Lessee diligently pursues the cure during said additional thirty (30) day period; and (b) in the event that a Default occurs after the issuance of the CO and cannot be cured within the applicable cure period provided in paragraph (2) above, and in the event that Lessee has commenced the action necessary to cure the Default during the applicable cure period provided in paragraph (2) above, then Lessee shall automatically have an additional cure period not to exceed thirty (30) days; provided that such additional cure period may be greater than 30 days, but only with the written 334014.4 2 1 � . ��- i3�4 consent of the Lessor, which consent shall not be unreasonably withheld or delayed. Notwithstanding the provisions of this Section set for above, in no event shall any cure period, including any extension of a cure period, be greater than the cure period available under the Grant Agreements if the Default by Lessee hereunder also causes a default or event of default by the Lessor under the Grant Agreements . Notwithstanding the foregoing, no Default under this Lease which is also a Default under the Development Agreement shall give Lessee the right to additional or duplicative cure periods before Lessor can exercise remedies available to it under this Lease and the Development Agreement . No extensions of the cure period set forth in paragraph (2) above shall be allowed for a Default under Section 23 hereof . 26 . DEFAULT AND TERMINATION. (a) Prior to the issuance of a C.O. , upon the occurrence and during the continuance, of an Event of Default under this Lease, the Lessor, in addition to the other rights or remedies it may have, shall have the immediate right to terminate this Lease and the Development Agreement by delivery of written notice of termination, which notice shall be executed by the Mayor of the City; (b) after the issuance of a C.O. , upon the occurrence and during the continuance of an Event of Default under this Lease, subject to Section 28 hereof, the Lessor, in addition to the other rights or remedies it may have, , shall have the immediate right to terminate this Lease and the Development Agreement by delivery of written notice of termination, and reenter the Premises and remove all persons and property otherwise from the Premises. This section is subject to the provisions of Section 29 hereof . 27 . ADDITIONAL REMEDIES . Notwithstanding anything in this or any other agreement to the contrary, upon the occurrence, and during the continuance, of an Event of Default, in addition to the remedies in Section 26 and this section, Lessor may exert any remedies it may have in law or equity (including but not limited to remedies under the Museum Lease and the Development Agreement) . 28 . SPECIAL TERMINATION PROCEDURE. After the issuance of the CO, Lessor agrees that it will not exercise the remedy of termination of the Lease provided in Section 26 hereof on the condition that Lessee does eaCh of the following: a. Within ninety (90) days of the occurrence of a Default Lessee shall have retained, at its sole expense, an 334014.4 2 2 . . �c�—�3�� independent consultant qualified to analyze Lessee' s operation at the Premises and reasonably acceptable to Lessor (hereinafter the "Consultant") ; b. Within sixty (60) days of the retention of the Consultant Lessee shall have delivered to Lessor a written report of the Consultant analyzing its operations at the Leased Premises (the "Consultant ' s Report") ; c. Within fifteen (15) days of the delivery of the Consultant ' s Report Lessee shall have met with Lessor to discuss the findings and recommendations of the Consultant; provided, however, that in the event that Lessee has not retained the Consultant, delivered the Consultant' s Report, or met with Lessor, within the required time period, then Lessor shall have the right to proceed to exercise the remedy of termination of this Lease without regard to the succeeding provisions of this Section 28 . The Lessor agrees that if after any time during the process set forth in clauses (a) , (b) or (c) above, the Default has been cured, the Lessee shall not be required to proceed with the remaining portion of the process set forth in clauses (a) , (b) and (c) above. In the event that Lessee has retained the Consultant, delivered the Consultant' s Report and met with Lessor as required hereinabove, Lessor further agrees that it will not exercise the remedy of termination of this Lease unless and until (i) the City Council of Lessor has considered a resolution at which meeting representatives of Lessee shall have the right to be heard; (ii) the City Council shall adopt a resolution authorizing the termination of this Lease, and (iii) the Lessee shall have failed to cure the Event of Default within thirty (30) days of the adoption of such resolution. Lessee acknowledges and agrees that : a) Lessor is not required to accept or adopt all or any portion of the Consultant' s Report; and b) in the event that Lessor determines, in its sole discretion, to accept any of the recommendations of the Consultant' s Report, the acceptance of which requires an amendment to this Lease, or a waiver of the Default or Event of Default, Lessor shall have the right, as a condition to agreeing to any such amendment or waiver, to impose any conditions Lessor deems appropriate, in its sole discretion. 29 . SPECIAL RENT PROVISION. Upon the occurrence of a Default under this Lease solely pursuant to subsection 24m, which is not also a Default under any other subsection of Section 24, then, solely in the event that Lessee has granted a leasehold mortgage on its interest, Lessor agrees that upon such occurrence 334014.4 2 3 . . q�- i3�c� Lessee shall not be in default under this Lease on the condition that Lessee shall be obligated to pay rent for its possession of the Premises during the continuances of such Default under Section 24m in an amount equal to a) all revenues derived by Lessee from operation of the Premises as a parking ramp, minus b) the sum of (i) all costs and expenses of ownership and operation which are the responsibility of Lessee under this Lease (but � specifically excluding depreciation) plus (ii) all payments of principal and interest required under the above referenced leasehold mortgage, plus (iii) all amounts actually deposited by Lessee into the Repair and Replacement Reserve Fund required under Section 38 (d) hereof . Nothing shall preclude Lessor from exercising all of its remedies upon the occurrence and continuance of any other Default under this Lease. 30 . LESSOR' S RIGHT TO PERFORM. In addition to any other provision contained herein, in the event that an Event of Default by the Lessee shall have occurred and be continuing, the Lessor may, at the Lessor' s option but without any obligation, take any action to perform the obligations of the Lessee which gave rise to the Event of Default or with respect to which the Lessee is otherwise in Default under this Lease, and the Lessor shall not be liable, or be held liable or in any way responsible for any loss, inconvenience, annoyance, or damage resulting to the Lessee on account thereof, other than for the Lessor' s gross negligence or willful or intentional misconduct . The Lessee shall repay to the Lessor on demand the entire expense thereof together with interest at the rate of ten percent per annum accruing from the date of any disbursement . The Lessor shall be permitted to enter the Premises while exercising any right given to it by the terms of this section. Any act or thing done by the Lessor pursuant to the provisions of this section shall not be or be construed to be a waiver of any such default by the Lessee, or as a waiver of any covenant, term, or condition herein contained or the performance thereof, or of any other right or remedy of the Lessor, hereunder or otherwise. 31. LESSOR DEFAULTS AND TENANT REMEDIES . In the event that Lessor fails to observe, perform or comply with any provision, term, condition, covenant, agreement or warranty required to be observed, performed or complied with by the Lessor under this Lease or the Development Agreement, and if Lessor fails to cure such Default within sixty (60) days of the receipt of written notice of default from Lessee, then a Lessor Event of Default shall exist under this Lease. Upon the occurrence and during the continuance of a Lessor Event of Default, Lessee may exercise any of the following remedies : 334014.4 2 4 � � ��- l3-�c� a. subject to Section 31 .A hereof, terminate this Lease and the Development Agreement by delivery of written notice to Lessor; b. subject to Section 56 hereof, and Section 3 . 1 (2) of the Development Agreement, commence an action at law to recover the damages incurred by a Lessor Event of Default; or c. commence an action in equity to compel the performance by Lessor of those actions or inactions which serve as the basis of Lessor' s Event of Default; and d. exercise any other right or remedy it may have at law, in equity, or under this Lease or the Development Agreement . 31.A. PRECONDITIONS TO LESSEE TERMINATION OF AGREEMENT. In the event that Lessee intends to terminate this Lease pursuant to Section 31 hereof, it shall not terminate this Lease unless and until (a) a resolution authorizing termination of this Lease has been adopted by the governing body of Lessee, (b) written notice of the adoption of such resolution and a copy thereof has been sent to Lessor, and (c) Lessor has failed to cure the Event of Default within 30 days after the giving of such notice. 31 .B. NO REMEDY EXCLUSIVE. No remedy herein conferred upon or reserved to the Lessor or Lessee is intended to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease or now or hereafter existing at law or in equity or by statute. No delay or omission to exercise any 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 . 32 . EFFECT OF EMINENT DOMAIN. a. Effect of Total Condemnation. In the event that the entire Premises shall be appropriated or taken under the power of eminent domain by any public or quasi-public authority, this Lease shall be terminated and all proceeds shall be payable in accordance with Section 32c. hereof . b. Effect of Partial Condemnation. In the event that a portion of the Premises shall be so appropriated or taken and the remainder thereof shall not be suitable for the use then being made thereof by the Lessee, as determined by Lessee, then Lessee shall have the right to give Lessor 334014.4 2 5 . . ac�- i��c� written notice of termination of this Lease within one hundred eighty (180) days after such portion of the Premises has been so appropriated or taken. Notwithstanding the immediately preceding sentence, in the event that the Museum continues in operation, then Lessee, to the extent feasible, shall be obligated to restore the remaining portion of the Premises to a configuration and condition so that the Premises can be used for the purposes set forth in Section 1 hereof . In the event that this Lease shall be properly terminated, the proceeds of the condemnation shall be applied in accordance with Section 32c. hereof. In the event of partial taking in which Lessee elects to continue this Lease in the Premises, this Lease shall continue in full force as to the part not taken, the Rent to be paid by the Lessee during the remainder of the term shall remain the same, and the condemnation award for the Premises shall be applied first to restore the remaining portion of the Premises to a configuration and condition so that the Premises can be used for the purposes set forth in Section 1 hereof (with the condemnation proceeds to be held by a mutually agreeable escrow agent in escrow for such restoration to be disbursed in accordance with standard commercial construction conditions customarily required by institutional lenders) , and, to the extent of any remaining proceeds, in accordance with Section 32c. hereof . None of the foregoing provisions shall preclude Lessee from making a separate claim against the condemning authority for the value of any trade fixtures and exhibits taken by said condemning authority and its relocation expenses provided such claim does not diminish or impair the award with respect to the Premises . c. Allocation of Proceeds . In the event that Lessee properly elects not to restore the Premises, and in the event that Lessee has not granted a mortgage on its leasehold interest, then the proceeds obtained as a result of condemnation shall be divided between Lessor and Lessee in the percentages as shown on Exhibit B attached hereto. In the event that Lessee properly elects not to rebuild, and in the event that Lessee has granted a mortgage on its leasehold interest, then the proceeds obtained as a result of condemnation shall be allocated as follows : (1) first, to Lessor that amount reasonably estimated by Lessor to either: i) demolish and clear the untaken portion of the Premises, or ii) repair and restore so much of the remaining improvements to the Premises as can reasonably be restored to use 334014.4 2 6 . , 9�.- i3�� . as a parking ramp and to remove or secure that portion of the improvements to the untaken portion of the Premises as cannot be so restored, (2) second, to such mortgagee to pay the outstanding interest and principal of Lessee' s indebtedness thereto, and (3) third, the balance to Lessor and Lessee in the percentages as shown on Exhibit B attached hereto. 33 . SURRENDER OF LEASE: EFFECT ON SUBLEASES . The voluntary or other surrender of this Lease by the Lessee, or a mutual cancellation thereof, shall not work a merger and shall at the option of the Lessor terminate any or all existing subleases or subtenancies or may at the option of the Lessor operate as an assignment to it of any or all such subleases or subtenancies . The terms of this section shall be included in all such subleases . 34 . OWNERSHIP OF IMPROVEMENTS ON TERMINATION OF LEASE. On expiration or termination of this Lease for any cause, the Lessor shall become the absolute owner of any buildings or improvements of any nature or kind on the Premises, regardless of who placed such buildings or improvements thereon, together with any and all fixtures related to any of the buildings located on the Premises (excluding, however, all of Lessee' s trade fixtures, equipment, and other personal property of Lessee and all property and equipment leased or rented other than pursuant to this Lease and the Ramp Lease) , and the Lessee shall not thereafter have any interest whatsoever therein, subject however, to Lessee' s rights under Section 18 and 32 to share in insurance and condemnation proceeds . 35 . AMENDMENT, MODIFICATION, AND WAIVER. No amendment, modification, or waiver of any condition, provision, or term of this Lease shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or its duly authorized representative, and specifying with particularity the extent and nature of such amendment, modification, or waiver. Any waiver by any party of any default of another party shall not affect or impair any right arising from any subsequent default . 36 . APPROVAL BY STATE OF MINNESOTA. This Lease shall not be valid or of any effect until signed by both parties and consent in writing has been given by the Commissioner of Finance of the State of Minnesota to the Museum Lease. 37 . EFFECT OF LESSEE' S HOLDING OVER. Any holding over after the expiration of the term of this Lease, with consent of 334014.4 2 7 � q(�- I 3-�� � � the Lessor, shall be construed to be a tenancy from month to month, at the same Rent as required to be paid by the Lessee for the period immediately prior to the expiration of the term hereof, and shall otherwise be on the terms and conditions herein specified, so far as they are applicable. 38 . SPECIAL USE PROVISIONS . a. Dedication of Stalls . Lessee agrees that the SMM Parking Ramp shall always be a public parking ramp; and that it will make available a sufficient number of stalls in the SDM�I Parking Ramp for guests of the museum. b. Third Party Manaqer. Lessee agrees that, in the event it elects to contract with a third party for management of the SMM Parking Ramp, it will contract with the same manager as the Civic Center Authority uses for management of its ramp (the "Authority Manager") provided, however, that the Authority Manager is willing to contract with Lessee and is willing to enter into a contract with Lessee on substantially similar economic terms and conditions to Lessee as it has entered into with the Civic Center Authority. In the event that Lessee is unable to contract with the Authority Manager on that basis then Lessee shall not contract with any other third party manager without the written consent of the Lessor, which consent shall not be unreasonably withheld. c. Ouarterly Meetings . Lessee agrees to attend quarterly meetings with representatives of the Civic Center Authority and the Housing and Redevelopment Authority of the City of Saint Paul (��HR.A��) to discuss operating and maintenance issues with respect to the SNIl�I Parking Ramp and the parking ramps owned by the Civic Center Authority and the HRA; and further agrees to cooperate with the Civic Center Authority and the HRA in dealing with operation and maintenance issues that arise from time to time. d. Re�air and Replacement Reserve Fund. Lessee shall, on the first day of the month following the month in which the SMM Parking Ramp is placed in service, and on the first day of each month thereafter, segregate on its books and records, and maintain in a separate account dedicated to the SMM Parking Ramp, the sum of $6, 250, until there has been deposited the sum of $ (the "Repair Account Requirement") . Amounts in such account shall be available to the Lessee and used by the Lessee to pay for extraordinary maintenance and/or to pay the cost of replacements or capital improvements to the SI�I Parking Ramp. Whenever amounts are withdrawn from such account, the 334014.4 2$ , � �C�- 13��e monthly payouts above provided for in this paragraph shall be resumed until the balance in the account is equal to the Repair Account Requirement. Any interest earnings on sums in such account which exceed the Repair Account Requirement shall be available to the Lessee. 39 . PARTIES BOUND. This Lease shall be binding upon and inure to the benefit of the parties hereto and their respective assigns, executors, heirs, and successors . 40 . TIME OF ESSENCE. Time is of the essence in this Lease, and of each and every covenant, term, condition, and provision hereof . 41 . CAPTIONS . All captions, headings, or titles in the paragraphs or sections of this Lease are inserted for convenience of reference only and shall not constitute a part of this Lease as a limitation of the scope of the particular paragraphs or sections to which they apply. 42 .. NO PARTNERSHIP, JOINT VENTURE, OR FIDUCIARY RELATION- SHIP CREATED HEREBY. Nothing contained in this Lease shall be interpreted as creating a partnership, joint venture, or relationship of principal and agent between the Lessor and the Lessee, it being understood that the sole relationship created hereby is one of landlord and tenant. All laws and statutes of the City of Saint Paul and State of Minnesota relative to landlord and tenant relationships shall be appiicable to the parties hereto. 43 . CUMULATIVE RIGHTS . Except as otherwise expressly stated herein, no right or remedy herein conferred on or reserved to the Lessee or the Lessor is intended to be exclusive of any other right or remedy hereof provided by law, but each shall be cumulative in, and in addition to, every other right or remedy given herein or not or hereafter existing at law, in equity, or by statute. 44 . SEVERABLE PROVISIONS . Each provision, section, sentence, clause, phrase, and word of this Lease is intended to be severable. If any provision, sentence, clause, phrase, and word hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the legality or validity of the remainder of the Lease. 45 . ENTIRE AGREEMENT. This Lease, the Development Agreement and the Disbursing Agreement contain the entire understanding of the parties hereto with respect to the transactions contemplated hereby and supersedes all prior agreements and understandings between the parties with respect to such subject matter. No 334014.4 2 9 a � �`G '���l representations, warranties, undertakings, or promises, whether oral, implied, written, or otherwise, have been made by either party hereto to the other unless expressly stated in this Lease, the Development Agreement and the Disbursing Agreement or unless mutually agreed to in writing between the parties hereto after the date hereof, and neither party has relied on any verbal representations, agreements, or understandings not expressly set forth herein. 46 . REFERENCE TO GENDER. Where appropriate, the feminine gender may be read as the masculine gender or the neuter gender; the masculine gender may be read as the feminine gender or the neuter gender; and the neuter gender may be read as the masculine or the feminine gender. 47 . MINNESOTA LAW. This Lease shall be construed and enforced in accordance with the laws of the State of Minnesota. 48 . FURTHER ASSURANCES . In addition to any other information which may reasonably requested, either party shall without charge at any time and from time to time hereafter, within ten (10) days after written request, certify by written instrument duly executed and acknowledged to any person, firm, or corporation specified in such request : a. Whether this Lease has been supplemented or amended, and if so, the substance and manner of such supplement or amendment; b. The validity and force and effect of this Lease, in accordance with its tenor as then constituted; c. The existence of any default known thereunder; d. The existence of any offsets, counterclaims, or defenses thereto known by such other party; and e. The commencement and expiration dates of the term of this Lease. Any such certificate may be relied on by the party who requested it and any other person, firm, or corporation to whom it may be exhibited or -delivered, and the contents of such certificate shall be binding on the party executing it . 49 . SHORT-FORM RECORDABLE LEASE. The parties will at any time, at the request of either one, promptly execute duplicate originals of an instrument, in recordable form, which will constitute a short form of this Lease, setting forth a description of the Premises, the term of this Lease, and options 334014.4 3 0 � . ��- ►��c.e to renew, and any other portions hereof, excepting the Rent provisions, as either party may request . 50 . FEDERAL INCOME TAX DEDUCTIONS . Only the Lessee shall have the right to take deductions on its tax returns with respect to such buildings, structures, improvements, changes, altera- tions, repairs, additions, and installations and the depreciation or amortization thereof; provided, however, that Lessor makes no representations or warranties as to the amount of any taxes or deductions or the treatment of any particular tax item. 51 . BROKERAGE FEES . Each party hereto warrants that it has not incurred any real estate brokerage fees, finders ' fees, loan brokerage fees, or any other fees to any third party in connection with this Lease, and in the event that any third party institutes legal action in an effort to recover such fees, the parties shall jointly defend such action. If a judgment is obtained against the parties jointly, the party responsible for breach of this warranty shall reimburse the other for the latter� s attorneys' fees, court costs, expenses, and share of the judgment . 52 . REC4RD KEEPING AND REPORTING. Lessee shall maintain books, records, documents, and other evidence pertaining to the costs or expenses associated with the renovation of the premises, and compliance with the requirements contained in this Lease and shall, upon request, allow the Lessor, to inspect, audit, copy, or abstract, any and all of its books, records, papers, or other documents relevant to this Lease. Lessee shall use generally accepted accounting principles in the maintenance of such books and records, and shall retain all of such books, records, documents and other evidence for a period of five (5) years from the date, such books, records, documents and other evidence are created. 53 . REVIEW OF PLANS AND COST ESTIMATES . Lessee acknowledges and agrees that it is subject to the terms and conditions of the Development Agreement with respect to its design and construction of the SMM Parking Ramp. 54 . HAZARDOUS WASTE POLLUTION AND CONTAMINANTS . a. For purposes of this Section 54, the following defined terms shall have the following meanings : (1) Hazardous Substance means asbestos, ureaformaldehyde, polychlorinated biphenyls ("PCBs") , nuclear fuel or material, chemical waste, radioactive material, explosives, known carcinogens, petroleum products and by-products and other dangerous, toxic or 334014.4 3 1 � , . �t�- ►3-�c� � , hazardous pollutants, contaminants, chemicals, materials or substances listed or identified in, or regulated by, any Environmental Law; (2) Environmental Laws means the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S .C. §9601 et sea. , the Resource Conservation and Recovery Act, 42 U.S .C. §6901 et s�. , the Hazardous Materials Transportation Act, §1802 et se�c . , the Federal Water Pollution Control Act, 33 U.S .C. §1251 et se�, the Clean Air Act, 33 U.S .C. §1321 et seg. , the Clean Air Act, 42 U.S .C. §7401 et seg. , the Minnesota Environmental Response and Liability Act, Minn. Stat . Ch. 115B, the Minnesota Petroleum Tank Release Cleanup Act, Minn. Stat. Ch. 115C, and any other federal, state, county, municipal, local or other statute, law relating to Hazardous Substances; b. Lessee agrees to comply with all Environmental Laws applicable to the Premises . Except as otherwise provided in Section 7 . 1 of the Development Agreement, Lessee shall bear all costs and expenses arising from compliance with all Environmental Laws . If Lessee fails to comply with any Environmental Laws, Lessor shall have the right, but not the obligation, to undertake such compliance and charge Lessee the costs of compliance plus interest at the rate of ten percent per annum accruing from the date of disbursement and also with reasonable attorney fees. c. Lessee agrees to defend, indemnify and hold harmless the Lessor, its officers, employees, and agents (hereinafter collectively referred to as the "Indemnitees") from and against and shall reimburse each such Indemnitee for any and all loss, claim, liability, damage, judgment, penalty, injunctive relief, injury to person, property or natural resources, cost, expense, action or cause of action arising in connection with or as the result of the existence, use, handling, storage, transportation, manufacture, release or disposal of any Hazardous Substance in, on or under the Premises, whether foreseeable or unforeseeable, regardless of the source, the time of occurrence or the time of discovery (hereinafter collectively referred to as "Loss") . The foregoing indemnification against Loss includes, without limitation, indemnification against all costs in law or in equity of removal, response, investigation, or remediation of any kind, and disposal of such Hazardous Substances, all costs of determining whether the Premises are in compliance with, and of causing the Premises to be in compliance with, all applicable Environmental Laws, all costs associated with 334014.4 3 2 , , , t l�� 13�C� . � claims for damages to persons, property, or natural resources, and the Indemnitees' reasonable consultants ' fees, court costs and expenses incurred in connection with any thereof . d. The obligations of Lessee to indemnify the Indemnitees shall survive expiration or termination of this Lease and/or the Development Agreement . The rights of the Indemnitees hereunder shall be in addition to any other rights or remedies which the Indemnitees may have against the Lessee under this Lease, the Development Agreement, or any other document, or at law or in equity. e. Notwithstanding anything in this Lease to the contrary, the indemnity provided for in this Section 57 shall only apply to any Loss incurred by the Indemnitees as a result of Hazardous Substances introduced in, on, or under the Premises after the date of the Lease. 55 . WAIVER OF SUBROGATION. Lessor and Lessee, on behalf of themselves and each of their respective insurers, hereby waive all claims and rights of recovery against the other which they would, but for this Section, have to the other for losses occurring to the Premises and to the improvements, betterments, trade fixtures, equipment, personal property and other property located therein or thereupon: a. to the extent actually covered by insurance required to be carried by the party waiving; or b. to the extent actually covered by any other insurance being carried by the party waiving at the time of such occurrence, 56 . WAIVER OF CERTAIN DAMAGES. IN CONSIDERATION OF ENTF'sRING INTO THIS LEAS$, LESSOR AND LESSEE HTREBY WAIVL AND FOREVER GIVE IIP ANY RIGBT TO CLAIM OR RECOVER DAbiAGES FOR LOST INCOME OR PROFITS AS A RLSIILT OF ANY BRFACB OF TIiIS LEASE OR ANY DOCQMENTS OR AGREEMENTS Rl3F}3RRED TO BEREIN WBICIi ARIS}3 OIIT OF AN EVENT OCC[JRRING PRIOR TO THE OPENING OF T8L Sb� IMPROVEblENTS TO THE PIIBLIC EVEN IF SIICS OPENING IS DELAYED AS A RESIILT OF ANY SIICIi BREACH. TSE AGREEMENTS AND WAIVERS SET FORTH SEREIN SBALL SURVIVE THE EXPIRATION OR TERMINATION OF THIS LEASE. 334014.4 3 3 a 5 . I ��� � J��l! • ` IN WITNESS WHEREOF, the parties hereto have executed this Lease the day and year first above written. Lessee' s address : THE SCIENCE MUSEUM OF MINNESOTA 120 West Kellogg Blvd. St . Paul, MN 55102 By Its By Its STATE OF MINNESOTA ) ) ss . COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of , 1996, by and , the and of The Science Museum of Minnesota, a Minnesota non-profit corporation, on behalf of the corporation. Notary Public 334014.4 3 4 , �. . ��- i3�� . � � Lessor� s address : CITY OF SAINT PAUL, MINNESOTA 13th Floor, City Hall Annex 25 West 4th Street Saint Paul, MN 55102 By Its Mayor Approved as to form: BY Its City Clerk Assistant City Attorney By Its Director of Finance and Management Services STATE OF MINNESOTA ) ) ss . COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of , 1996, by , , and , the Mayor, City Clerk, and Director of Finance and Management Services, respectively, of the City of Saint Paul, Minnesota, a Minnesota municipal corporation, on behalf of the corporation. Notary Public 334014.4 3 5 � y � �1�� 13�1� • M EXHIBIT A Legal Description of the Premises 334074.4 � - � ���i�--i� , , , EXHIBIT B Lessor � Lessee % 334014.4 , �, � `✓ . `�(�— 1 ��c� . DISBURSING AGREEMENT This Disbursing Agreement ("Agreement") is entered into as of this day of , 1996, by and between the City of Saint Paul, a municipal corporation organized and operating under the laws of the State of Minnesota (the "City") and The Science Museum of Minnesota, a non-profit corporation organized and operating under the laws of the State of Minnesota ("SMM"). WITNESSETH: WHEREAS, the City and SMM are parties to a Development Agreement of even date herewith (the "Development Agreement") pursuant to which the City has agreed, among other things, to assemble certain parcels of land to lease the land to SMM, and to make a cash contribution to fund, among other things, the costs of the Upper Landing Improvements (as defined in the Development Agreement), all as more fully set forth in the Development Agreement; and WHEREAS, in consideration of the covenants and undertakings of the City set forth in the Development Agreement, SMM has agreed to construct, among other things, a new facility for use as a science museum (the "Museum"), a parking ramp (the "Ramp"), and other certain facilities to be used in its operations, all as more fully set forth in the Development Agreement and defined in the Development Agreement as the SMM Improvements; and WHEREAS, upon satisfaction of the conditions contained in the Development Agreement, the City has agreed in Section 3.4 of the Development Agreement to contribute the sum of $10,500,000 (the "City Deposit") to pay for the costs of the Upper Landing 299663.7 • � � � �L.- ��� . Improvements and, to the extent any money remains after all costs of the Upper Landing Improvements have been paid, other than costs to be paid by the City pursuant to Section 3.3 of the Development Agreement, to pay for other costs of the SMM Improvements; and WHEREAS, the City has received a grant from the State of Minnesota ("State") in the amount of$30,000,000 (the "State Grant") to finance a portion of the cost of the SMM Improvements, excluding the Ramp; and WHEREAS, the State Grant will be disbursed by the State to the Trustee (as hereinafter defined) in accordance with the terms and conditions of a Disbursement Agreement Construction Grant between the State and the City (the "State Disbursing Agreement"); and WHEREAS, it is anticipated that the Housing and Redevelopment Authority of the Cit}� of Saint Paul, Minnesota (the "HRA") will issue conduit revenue bonds (the "Revenue Bonds") to finance a portion of the costs of the SMM Improvements, and that the proceeds of the Revenue Bonds, together with the City Deposit and the State Grant will be disbursed b�• the trustee for the Revenue Bonds (the "Trustee") through Commonwealth Land Title Insurance Company ("Title"); and WHEREAS, all capitalized terms not defined in this Agreement shall have the meaning ascribed to those terms in the Development Agreement. NOW, THEREFORE, in consideration of the foregoing premises, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, it is hereby agreed as follows: 1. T�ansfer of Deposit to Trustee. Upon satisfaction of the conditions set forth in Section 3.4(3) of the Development Agreement, and upon the issuance of the Revenue 299663.7 2 , � � ��.-i 3-�� , Bonds, the City shall deposit the City Deposit into a separate account (the "City Construction Account") to be held by the Trustee under the Indenture of Trust authorizing the issuance of the Revenue Bonds (the "Indenture"). The Indenture will also create a separate account designated as the "State Grant Account", which shalI be a non-interest bearing account, and into which the Trustee shall deposit any proceeds of the State Grant which are disbursed by the State pursuant to the State Disbursing Agreement. The City Construction Account and the State Grant Account shall not be part of the trust estate securing the holders of the Revenue Bonds. Any investment earnings on the City Deposit in the City Construction Account,which the City notifies the Trustee are allocable to any tax exempt bonds issued by the City to fund any part of the City Deposit (the "City Bonds") and which exceed the yield on the City Bonds, shall be the property of the City, and shall be released by the Trustee to the City from time to time. All other investment earnings shall be retained in the City Construction Account and available for disbursement as part of the City Deposit in accordance with this Agreement. The Trustee shall provide the City, upon request, with all records necessary to calculate any rebate on the City Bonds. 2. Eligible Costs. (a) The funds in the City Construction Account shall be available (i) for disbursement to SMM, or to payees designated by SMM, upon satisfaction of the conditions set forth in Section 3 hereof; or (ii) for disbursement to the City in the case of costs set forth in clauses (1), (4) or (S) below, to pay the following costs: 299663.7 3 . � � ���13�� . (1) To pay or reimburse the City for the costs of designing and constructing the Eagle Parkway Improvements, other than costs to be paid by the City pursuant to Section 3.3 of the Development Agreement; (2) To pay or reimburse SMM for the costs of designing and constructing the Upper Landing Improvements, other than the Eagle Parkway Improvements; (3) Subsequent to payments of all costs of the Upper Landing Improvements, other than any costs to be paid by the City pursuant to Section 3.3 of the Development Agreement, to pay or reimburse SMM for costs of designing and constructing the SMM Improvements, other than the Upper Landing Improve- ments; (4) In accordance with the provisions of Section 3.1(6) of the Development Agreement, to pay or reimburse the City for SMM's share of the costs of acquisition of Parcel 5 if the City certifies to the Trustee that SMM has not paid or reimbursed the City for such costs within 30 days after SMM's receipt of an invoice from the City; and (5) In accordance with Section 7.1(2) of the Development Agreement to reimburse SMM or the City,the amount certified, but in any event not to exceed the total aggregate sum of 299663.7 4 � � �t�-�3�� � $250,000, for costs incurred for remediation or clean up of Hazardous Substances on the Leased Premises. (b) The funds in the State Grant Account shall be available for disbursement to SMM, or its payees,upon satisfaction of the conditions set forth in Section 3 hereof to pay the costs of design and construction of the SMM Improvements, other than the Ramp. 3. Conditions Precedent to Draws. Any and all disbursements to SMM from the City Construction Account and from the State Grant Account, shall be subject to satisfaction of each of the following conditions precedent: A. All representations and warranties by SMM set forth in Section 2.2 of the Development Agreement having been true and correct as of the date hereof and being true and correct as of the date of any disbursement; B. h'o event shall have occurred under any document or instrument executed by SMM in connection with the Revenue Bonds which results in the Trustee or the Bank withholding approval of any disbursements of the proceeds of the Revenue Bonds; C. No event shall have occurred and be continuing which, but for the giving of notice, the expiration of any cure period, or both, would constitute an Event of Default under the Development Agreement or the Leases; D. All conditions to disbursement contained in the State Disbursing Agreement shall be satisfied; and no event shall have occurred and be continuing which, but for the giving of notice, or the expiration of any cure period, or both, would constitute Event of Default under the State Disbursing Agreement which event is the result of any action or inaction on the part of SMM; 299663.7 5 . � � ��-�3�(� . E. The aggregate of funds in the City Construction Account, the State Grant Account and any other funds, including the proceeds of the Revenue Bonds, held by the Trustee and available to be disbursed to pay the costs of the Project, are sufficient to pay all remaining costs of the Project, other than costs to be paid by the City pursuant to Section 3.3 of the Development A.greement. 4. Requests for Advances. Whenever SMM, or the City in the case of disbursements from the City Construction Account, desire a disbursement of amounts from the City Construction Account or the State Grant Account, which shall be no more often than monthly, SMM or the City, as the case may be, shall submit to the Trustee a Requisition Certificate duly executed on behalf of SMM or the City, as the case may be, which shall be in substantially the form attached hereto as Exhibit A or Fxhibit B in the case of disbursements requested by the City. Each Requisition Certificate shall be submitted on ar betvveen the first and fifteenth day of the month in which any advance is requested, and shall be submitted at least seven (7) business days before the advance is desired. In connection with each Requisition Certificate submitted by SMM,all documentation required by the Requisition Certificate, the State Disbursing Agreement, and this Disbursing Agreement, including a written [certification] of the Architect in the form attached hereto as E�ibit C shall be submitted to the City and the State. 5. Submission to T�tle. SMM and the City agree that prior to the issuance of the Revenue Bonds, they will enter into a disbursing agreement with Title pursuant to which SMM will be required to submit to Title, as a precondition to any disbursement of funds in the State Grant Account or the City Construction Account, a written waiver or waivers of mechanics and/or materialman lien rights, executed by the contractor or contractors, [any 299663.7 6 . q(�,-�3�� - first tier subcontractors], any suppliers of materials with whom SMM has contracts, and any other lien waivers SMM is able to obtain from subcontractors and other suppliers of materials that were paid from the unmediately preceding Requisition Certificate. 6. Successor and Assigns. This Agreement is binding on the successors and assigns of each of the parties hereto provided, however, that neither party shall have the right to assign this Agreement or any rights therein, or delegate any duties created herein, without the prior written consent of the other, which consent may be given or withheld in the sole discretion of the party whose consent has been requested. 7. Entire Agreement and Modification. This Agreement, together with the Development Agreement and the Leases,represents the entire agreement and understanding between the City and SMM, and supersedes all prior obligations, representations and agreements,whether written or oral,with respect to construction of the SMM Improvements. This Agreement may be amended only by a written instrument signed by both SMM and a duly authorized representative of the City. 8. Supercession. SMM and the City agree that the terms and provisions of this agreement may be incorporated into the agreement that controls the disbursement of the proceeds of the Revenue Bonds (the"Bond Disbursing Agreement"),which Bond Disbursing Agreement will be executed by, among others, SMM, the City and the Trustee, and which will supercede this Agreement. 9. Capitalized Terms. All capitalized terms not defined in this Agreement shall have the meaning ascribed to those terms in the Development Agreement. 299663.7 7 . . �C�-t 31�. . IN WITNESS WHEREOF, the parties hereto have entered into this Agreement as of the date first above written. THE SCIENCE MUSEUM OF MINNESOTA BY Its CI'TY OF SAINT PAUL Approved as to form: By Its Mayor Assistant City Attorney and By Its City Clerk BY Its Director of Planning and Economic Development By Its Director, Department of Finance and Management Services 299663.7 g . � �(�- � 3�� . EXHIBIT A REQUISITION CERTIFICATE [TrusteeJ Attention: Corporate Trust Department Ladies and Gentlemen: This Requisition Certificate is delivered by SMM pursuant to the provisions of the Disbursing Agreement dated as of , 1996 between the City and the Science Museum of Minnesota ("SMM") for the purpose of reimbursement for costs of the SMM Improvements. All capitalized terms not defined herein shall have the meaning ascribed to those terms in the Development Agreement dated as of , 1996, or the Disbursing Agreement. The undersigned, the SMM Representative under the Development Agreement, hereby requests a disbursement in the aggregate amount of $ , to be paid from the following accounts created under the Indenture: (a) $ from the State Grant Account; and (b) $ from the City Construction Account. The disbursement(s) should .be made to the payee(s) shown on Schedule A attached hereto. The undersigned hereby certifies: (1) All costs herein certified to be paid from the State Grant Account constitute costs of design and construction of the Museum, and none of the costs are for the design or construction of the Ramp or the Eagle Parkway Improvements. The amount requested for payment from the State Grant Account herein does not exceed % of the total design and construction costs of the Museum incurred since the date of the last Requisition Certificate for design and construction costs of the Museum; (2) All costs herein certified for payment from the City Construction Account either (a) constitute costs of the Upper Landing Improvements, or (b) to the extent that payments from the City Construction Account are requested for costs other than costs of the Upper Landing Improvements, such costs (i) 299663.7 � . � �l�- i 3�� ° constitute costs of the Project and costs of the construction of the Upper Landing Improvements have been completed and all costs thereof have been paid, other than any costs of the Upper Landing Improvements to be paid by the City pursuant to Section 3.3 of the Development Agreement or (ii) such costs are for � the mediation or clean up of Hazardous Substances on the Leased Premises and the amount herein requested, together with any amounts heretofore requested by the City, do not exceed $250,000; (3) no event has occurred and is continuing which, but for the giving of notice, the expiration of any cure period, or both, would constitute an "Event of Default" under the Leases, the State Disbursing A.greement or the Development Agreement; (4) each item for which payment or reimbursement is herein requested was necessary in connection with the Project, has not formed the basis for any previous payment; (5) with respect to all costs incuned under any construction contract, which provides for the retention of a portion of the contract price, the total amount certified for payment or reimbursement of such costs does not exceed the contract price after deducting retention required by the contract; (6) there is no outstanding indebtedness for labor, wages, materials or supplies, which, if unpaid, might become the basis of a vendor's lien, or a mechanics', materialmen's, statutory or other similar lien upon the Project or any part thereof, other than indebtedness then certified for payment or diligently being contested in good faith by SMM or the City, and each contractor (first lien subcontractor) and materialman with whom SMM has contracts has filed with Title receipts or waivers of liens for all amounts previously certified for payment, for work, materials and equipment furnished by them, or that there is on file with Title a canceled check endorsed by the contractor, subcontractor or materialman evidencing such payment; (7) that no item of cost requested by this Requisition Certificate to be reimbursed has been previously reimbursed from any of these accounts; (8) with respect to any item relating to the acquisition or installation of equipment which is certified herein for payment or reimbursement, such equipment, either (i) is located and appropriately secured on the Project Premises, or (ii) if stored off-site, the State has been notified in writing and has consented to such offsite storage, and (iii) attached hereto is an equipment bill of sale (or other appropriate document) transferring title to said item of equipment to SMM unless such bill of sale (or document) has already been furnished. 299663.7 2 . � ����3�� (9) attached hereto as Fxhibit B and incorporated herein by reference is a statement of the total cost of the Project as estimated on the date of this certificate, itemized to show separately the total herein and heretofore certified for payment or reimbursement and the amount remaining to be paid (i) under any construction contract or contracts for the Project (including any contract for purchase of equipment included in the Project) as affected by any modifications or additions to the plans and specifications since the last certificate and (ii) for all other costs (excluding contingencies); and showing the amount of funds available from the State Grant Account, the City Construction Account and other funds on deposit with the Trustee and available for disbursement to pay costs of the Project, including the proceeds of the Revenue Bonds, the aggregate of which equals or exceeds the aggregate of amounts remaining to be paid under subparagraphs (i) and (ii) immediately above. (10) all representations and warranties made by the undersigned in any of the Sections of the Leases and Section 2.2 of the Development Agreement remain true and conect in all material respects. Dated this day of , 199_ THE SCIENCE MUSEUM OF MINNESOTA By Corporation Representative 299663.7 3 . � � �(�- �3�� FOR DISBURSEMENTS FROM 'THE CTTY CONSTRUCTION ACCOUNT AND THE STATE GRANT ACCOUNT Approved by: City Representative FOR DISBURSEMENTS FROM THE STATE GRANT ACCOUNT Approved by: State, Department of Administration 299663.7 4 � � ��.- l���C� , SCHEDULE 1 Schedule of Amounts Due and Payable From State Grant Account or City Construction Account Directly to SMM or Payees: Name and Address of Pavee Payment Requested Scope of Work Done 299663.7 _ � � �(�-�3�t� � SCHEDULE 2 COST OF PROJECT STATEMENT 1. Total cost of the Project $ 2. Total amount previously certified for payment (or reimbursement). $ 3. Total amount now certified for payment (or reimbursement). $ 4. Total amount remaining to be paid $ 5. Amounts remaining for disbursement: • In State Grant Account $ • In City Construction Account $ Total Remaining Fund for the Project $ In the event that the amount shown for Line 4 is greater than the total for Line 5, then The Science Museum of Minnesota shall deposit the difference with the Trustee wzthin ten (10) days which amount shall be fully disbursed before any further disbursement from any of the above described Accounts. 299663.7 . � � �c.�- ��--z� - EXHIBIT B REQUISITION CERTIFICATE [Trustee] Attention: Corporate Trust Department Ladies and Gentlemen: This Requisition Certificate is delivered by the City pursuant to the provisions of the Disbursing Agreement dated as of , 1996 between the City and the Science Museum of Minnesota ("SMM") for the purpose of payment or reimbursement for (i) design and construction costs of the Eagle Parkway Improvements, (ii) for certain land acquisition identified below, and (ui) for costs of remediation or clean up of Hazardous Substances on the Leased Premises. All capitalized terms not defined herein shall have the meaning ascribed to those terms in the Development Agreement dated as of , 1996, or the Disbursing Agreement. The undersigned, the City Representative under the Development Agreement, hereby requests a disbursement in the aggregate amount of $ , to be paid from the City Construction Account. The disbursement(s) should be made to the payee(s) shown on Schedule A attached hereto. The undersigned hereby certifies: (1) All costs herein certified to be paid from the City Construction Account constitute either (i) costs of design and construction of the Eagle Parkway Improvements, other than costs which are the sole responsibility of the City pursuant to Section 3.3 of the Development Agreement, or (u) costs of acquisition of Parcel 5 which are the responsibility of SMM pursuant to Section 3.1(6) of the Development Agreement which have not been paid by SMM to the City within 30 days after SMM's receipt of an invoice from the City, or (iii) costs paid or incurred by the City in connection with remediation or clean up of Hazardous Substances on the Leased Premises, which amount herein certified, together with any amounts previously certified by SMM or the City, do not exceed $250,000; (2) each item for which payment or reimbursement is herein requested was necessary in connection with the above described activities, has not formed the basis for any previous payment; 299663.7 � � �(�.�l 3�t� � (3) that no item of cost requested by this Requisition Certificate to be reimbursed has been previously reimbursed from the City Construction Accounts. Dated this day of , 199 . CTI'Y OF SAINT PAUL By City Representative 299663.7 2 . � � ��� i3�� . SCHEDULE 1 Schedule of Amounts Due and Payable From City Construction Account Directly to City or Payees: Name and Address of Payee Pavment Rec�uested Scope of Work Done 299663.7 ��. � c; a . 6 • DISBURSEMENT AGREEMENT ��' � ��� CONSTRUCTION GRANT for the PROJECT THIS AGREEMENT shall be effective as of the day of , 199_, and is made and entered into by and between , a (hereinafter referred to as the "Public Entity"), and the (hereinafter referred to as the "State"). WHEREAS, under the provisions contained in , the Public Entity has been given the authority to ; and WHEREAS, under the provisions contained in , the State has allocated Dollars ($ ), which is to be given to the Public Entity as a grant to assist it in the as authorized by ; and V�'HEREAS, the monies allocated to fund the grant to Public Entity are the proceeds of state general obligations bonds authorized to be issued under Article XI, § 5(a) of the Minnesota Constitution; and VVHEREAS, the Public Entity and the State desire to set forth herein the provisions relating to the disbursement of the proceeds of said grant to the Public Entity. NOW, THEREFORE, in consideration of the grant described herein, the parties hereto do hereby agree as follows: 3130922 . �� - � ��� � ARTICLE I Definitions Section 1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings set out respectively after each (such meanings to be equally applicable to both the singular and plural forms of the terms defined): A. "Advance(s)" - An advance made or to be made by the State to the Public Entity or its designee pursuant to Article II hereof. B. "Agreement" - this Disbursement Agreement. C. "Architect" - Ellerbe Becket, or any other architect designated by the Lessee pursuant to the Development Agreement. D. "Completion Date" - shall have the meaning given such term in the Development Agreement. E. "Contractor" - Any person who shall be engaged as a direct contractor to the Lessee to work on or to furnish materials and supplies for the Project, including, if applicable, a general contractor. F. "Construction Contract Documents" - The document or documents, including but not limited to any construction plans and specifications, including any amendments, change orders or supplements thereto,which,together with the exhibits thereto, collectively form the contract between the Public Entity or the Lessee and the Contractor or Contractors concerning the Project,which documents are consistent with the program plan and cost estimates presented to the Chairs of the Senate 3130922 2 �C� -i3�� . � Finance Committee and House Ways and Means Committee pursuant to Minnesota Statutes, Section 16B.335. G. "Declaration" - The Declaration which is attached to the Grant Agreement as an exhibit, and which indicates that the Real Property and the Project are bond financed property within the meaning of Minn. Stat. § 16A.695 (1994 and 1995 Supp.), and are subject to certain restrictions imposed thereby. H. "Development Agreement"-The Development Agreement dated as of , 1996, by and between the Public Entity and the Lessee. I. "Draw Requisition" -A draw requisition in the form attached hereto as E�ibit A which the Public Entity, or its designee, will submit to the State when an Advance is requested and which is refened to in Section 2.02 hereof. J. "Event of Default" - One of the events of default specified in Section 5.01 hereof. K. "Grant" - A grant of monies from the State to the Public Entity in an amount not to exceed Dollars ($ ). L. "Grant Agreement" - That certain Construction Grant Agreement for the Project of even date herewith, under which the State provides the Grant to the Public Entity, which such document is incorporated herein by reference as if it were attached hereto as a separate e�ibit. M. "Inspecting Engineer", if any - the State's construction inspector, or its designated consulting engineer. 31304'L2 3 . ac�.- ���t� � N. "Lessee" - The Science Museum of Minnesota, its successors and assigns. O. "Project" - The improvement, rehabilitation, or new construction of a in accordance with the Construction Contract Documents. P. "Public Entity" - , a Q. "Real Property" - The land upon which the Project is, or will be, located, and which is more particularly described in the Grant Agreement. ARTICLE II Commitment to Make Advances, Terms of Advances and Draw Requests Section 2.01 The Advances. The State agrees, on the terms and subject to the conditions hereinafter set forth, to make Advances from the Grant to the Public Entity or its designee from time to time in an aggregate principal amount of up to and including the full amount of the Grant. Section 2.02 Draw Requisitions. Whenever the Public Entity desires a disbursement of a portion of the proceeds of the Grant, which shall be no more often than monthly, the Lessee or the Public Entity shall submit to the State a Draw Requisition, duly executed on behalf of the Public Entity or the Lessee. Each Draw Requisition shall be submitted on or betv��een the first (lst) day and the fifteenth (15th) day of the month in which an Advance is requested, and shall be submitted at least seven (7) days before the date the Advance is desired. Each Draw Requisition with respect to construction items shall be limited to 3130922 4 . � °��- �3�4 • amounts equal to; (i) the total value of the classes of the work by percentage of completion as approved by the State and the Lessee, plus (ii) the value of materials and equipment not incorporated in the Project, but delivered and suitably stored on or off the Project site in a manner acceptable to the State, less (ui) ten percent (10%), and less (iv) prior Advances. Notwithstanding anything herein to the contrary, no Advances for materials stored on or off the Project site will be made by the State unless the Public Entity or the Lessee shall advise the State, in writing, of its intention to so store materials prior to their delivery. It is specifically agreed that the propriety of Advances for materials stored on or off the Project site shall be determined in the State's sole discretion. At the time of submission of each Draw Requisition, other than the final Draw Requisition, the Public Entity or L,essee shall submit to the State such supporting evidence as may be reasonably requested by the State to substantiate all payments which are to be made out of the relevant Draw Requisition and/or to substantiate all payments then made with respect to the Project. At the time of submission of the final Draw Requisition,which shall not be submitted before substantial completion of the Project, including all landscape requirements and off-site utilities and streets and correction of material defects in workmanship and/or materials (other than completion punch list items) as provided in the Construction Contract Documents, the Public Entity or Lessee shall submit to the State; (i) such supporting evidence as may be requested by the State to substantiate all payments which are to be made out of the final Draw Requisition and/or to substantiate all payments then made with 31309'L2 S . �(�- �3-�� • respect to the Project, and (u) satisfactory evidence that all work requiring inspection by � municipal or other governmental authorities having jurisdiction has been duly inspected and approved by such authorities and by the rating or inspection organization, bureau, corporation or office having jurisdiction, and that all requisite certificates of occupancy and other approvals have been issued. If on the date an Advance is desired, the Public Entity or the Lessee has performed all of the agreements and complied with all requirements therefore to be performed or complied with hereunder, and the State approves the relevant Draw Requisition, then the State shall disburse the amount of the requested Advance to the Public Entity or its designee. Section 2.03 Disbursement of Borrower's �nds. If the State shall at any time in good faith determine, upon request of the State, that the undisbursed amount of the Grant, plus the amount of all other funds committed to the construction of the Project, is less than the amount required to pay all costs and expenses of any kind (excluding contingencies) which reasonably may be anticipated in connection with the construction of the Project, and the State shall thereupon send written notice thereof to the Public Entity and the Lessee specif�-ing the amount that must be supplied in order to provide sufficient funds to complete the construction of the Project, then the Public Entity agrees that it will, within thirty (30) calendar days of receipt of any such notice, require the Lessee to supply the amount of funds specified in the State's notice or provide evidence acceptable to the State that sufficient funds are available to complete the construction of the Project. 3130422 6 . Q�—i 3�c� . ARTICLE III � Conditions of Lending Section 3.01 Condition Precedent to Anv Advance. The obligation of the State to make any Advance hereunder(including the initial Advance)shall be subject to the following conditions precedent: A. The State shall be in receipt of the Grant Agreement duly executed by the Public Entity. B. The State shall be in receipt of the Declaration duly executed by the Public Entity. C. The State shall be in receipt of a copy of the fully executed Construction Contract Documents, which such documents shall provide for the construction of the Project for a guaranteed maximum price or a fixed price and shall be in form and content acceptable to the State. D. The State shall be in receipt of evidence that the Contractor will construct the Project substantially in conformance with the Construction Contract Documents, and pay all amounts owing to all laborers and materialmen who worked on the Project or supplied materials therefor, other than amounts being contested in good faith. Such evidence may be in the form of Payment and Performance Bonds naming the State and the Public Entity dual obligees thereunder, or such other evidence as may be acceptable to the Public Entity and the State. 3130922 / . �'�-►��� . E. The State shall be in receipt of evidence showing that the Public Entity � is the fee simple owner of the Real Estate and the Project. F. The State shall be in receipt of evidence showing that all permits necessary for the completion of the Project have been paid for and issued other than those permits which may not lawfully be obtained until a future date. G. The State shall be in receipt of evidence that there are sufficient funds available to construct the Project. H. No determination shall have been made by the State pursuant to Section 2.03 hereof that the amount of funds committed to the construction of the Project is less than the amount required to pay all costs and expenses of any kind which reasonably may be anticipated in connection with the construction of the Project, or if such a determination has been made and notice thereof sent to the Public Entity and the Lessee, the Public Entity has caused the Lessee to either supply the necessary funds in accordance with Section 2.03 hereof or provide evidence that sufficient funds are available. I. No Event of Default hereunder, or event which would constitute such an Event of Default but for the requirement that notice be given or that a period of grace or time elapse, shall have occurred and be continuing. 31307L2 p � �(�-i3�(� , ARTICLE IV ' Representations and Warranties Section 4.01 Representations and Warranties. The Public Entity represents and warrants as follows: A. The execution of this A.greement, the Grant Agreement, the Declaration, and any and all other documents referred to herein are within the powers of the Public Entity, and do not violate any provision of law. B. This Agreement, the Grant Agreement, the Declaration, and any and all other documents referred to herein are the legal, valid and binding obligations of the Public Entity enforceable against the Public Entity in accordance with their respective terms. C. It has good and marketable title to the Real Property and Project, subject cnly to easements, covenants, conditions and restrictions that do not materially interfere with the proposed Project. D. The Project will be completed by the Completion Date substantially in accordance with the Construction Contract Documents and will be situated entirely on the Real Property. E. The Project and the contemplated use thereof, while being completed and at the time of completion, will not violate any applicable zoning or use statute, ordinance, building code, rule or regulation, or any covenants or agreements of record. 3��z 9 . �(���3��e � F. It will fumish to the State as soon as possible and in any event within � seven (7) days after the Public Entity has obtained knowledge of the occurrence of each Event of Default, or each event which with the giving of notice or lapse of time or both would constitute an Event of Default, a statement setting forth details of each Event of Default, or event which with the giving of notice or upon the lapse of time or both would constitute an Event of Default, and the action which the Public Entity proposes to take with respect thereto. G. It will not, without the prior written consent of the State, agree or consent to any changes in the terms and provisions of the Construction Contract Documents. H. It will furnish from time to time such satisfactory evidence regarding the representations and warranties described herein as may be required by the State. ARTICLE V Events of Default and Rights and Remedies Section 5.01 Events of Default. The following shall constitute events of default: A. The Public Entity shall fail to duly observe or perform any of the terms, provisions, conditions,covenants or agreements required to be observed or performed by the Public Entity hereunder, or under the Grant Agreement. B. Any representation or warranty made by the Public Entity herein,in the Grant Agreement, in any Draw Requisition, or any other document furnished pursuant to this Agreement, or in order to induce the State to make any Advance 31309':2 1 Q . ��.- � 3�tr� � hereunder, shall prove to have been untrue in any material respect or materially � misleading as of the time such representation or warranty was made. C. The Public Entity shall be in default under or in breach of any of the terms of the Grant Agreement, and such default or breach shall not be cured or waived by the State within the period or periods of grace, if any, applicable thereto. D. At any time any Advance is requested by the Public Entity, the title to the Real Property or the Project is not satisfactory to the State because of a change in the condition it was in after the date of the first Advance. E. The Project is materially damaged or destroyed by fire or other casualty, and the loss is not adequately covered by insurance actually collected or in the process of collection. F. The completion of the Project is abandoned or discontinued, in each instance for reasons other than acts of God, fire, storm, strikes, blackouts, labor difficulties, riots, inability to obtain materials, equipment or labor, governmental restrictions or any similar cause over which the Public Entity is unable to exercise control. G. The Project is not constructed substantially in accordance with the Construction Contract Documents by the Completion Date. H. Within a reasonable period of time after completion of the Project, the Lessee fails to obtain a certificate of occupancy, or such other equivalent document, from the municipality in which the Project is located. 3130422 11 . �t�-�3-�� I. The State shall ascertain that the cost of completing the Project substantially in accordance with the Construction Contract Documents is greater than the amount of monies available to construct the Project and Lessee fails to supply the additional funds required by Section 2.03 or fails to provide evidence acceptable to the State that the funds are sufficient. Section 5.02 Riehts and Remedies. Upon the occurrence of an Event of Default and at any time thereafter until such Event of Default is cured to the satisfaction of the State, the State may, by notice in writing to the Public Entity, refrain from making Advances hereunder (but the State may make Advances after the occurrence of an Event of Default without thereby waiving its rights and remedies hereunder). ARTICLE VI Miscellaneous Section 6.�J1 Inspections. The Public Entity, the Lessee, and the Architect shall be responsible for making inspections of the Project during the construction of the Project, and shall determine to their own satisfaction that the work done or materials supplied by the Contractors to whom payment is to be made out of each Advance has been properly done or supplied in accordance with the applicable contracts with such Contractors. If any work done or materials supplied by a Contractor are not satisfactory to the Public Entity, Lessee, and/or the Architect, or if a Contractor is not in material compliance with the Construction Contract Documents in any respect, and if such deficiencies are not corrected to the satisfaction of the Architect, the Public Entity will immediately notify the State, in writing, 313U4''_2 12 . ��,— � ��c� , of such fact. It is expressly understood and agreed that the State and the Inspecting Engineer � may conduct such inspections of the Project as either may deem necessary for the protection of the State's interest, and that any inspections which may be made of the Project by the State or the Inspecting Engineer are made, and all certificates issued by the Inspecting Engineer will be issued, solely for the benefit and protection of the State, and the Public Entity will not rely thereon. Section 6.02 Liabili . The Public Entity and the State Entity do both agree that they will be responsible for their own acts and the results thereof to the extent authorized by law, and they shall not be responsible for the acts of the other party and the results thereof. The Public Entity acknowledges and agrees that the liability of both the State Entity and the Finance Commissioner is governed by the provisions contained in Minn. Stat. § 3.736 (1994), as such may subsequently be amended, modified or replaced. Section 6.03 Addresses for Notices. All notices to be given by either party to the other hereunder shall be in writing and deemed to have been given when delivered personally or when deposited in the United States Mail, registered or certified postage prepaid, addressed as follows: To the Public Entity at: Attention: 3130922 13 . ��-i��� . To the State at: Attention: or addressed to any such party at such other address as such party shall hereafter furnish by written notice to the other party. Section 6.04 Termination of this Agreement. The obligations of the Public Entity under this Agreement, but not under the Grant Agreement, or any other agreement(s) attached hereto or incorporated herein by reference, shall cease upon the State's certification that the Project has been completed substantially in accordance with the Construction Contract Documents. Section 6.05 T�me of Essence. Time is of the essence in the performance of this Agreement. Section 6.06 Binding Effect and Assignment. This Agreement shall be binding upon and inure to the benefit of the Public Entity and the State, and their respective successors and assigns, except that the Public Entity may not transfer or assign its rights hereunder «•ithout the prior written consent of the State. Section 6.07 Waivers. No waiver by the State of any default hereunder shall operate as a waiver of any other default, or of the same default on a future occasion. No delay on the part of the State in exercising any right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude other or further exercise thereof, or the exercise of any other right or remedy. 31309'L2 14 . ��� �3�� , Section 6.08 State's Remedies. The rights and remedies herein specified are ' exclusive of any rights or remedies which the State would otherwise have. Section 6.09 Governing Law and Entire A�reement. This Agreement, the Grant Agreement, and the Declaration shall all be governed by the laws of the State of Minnesota. This Agreement and the Grant Agreement contains the entire agreement of the parties on the matters covered herein. No other agreement, statement or promise made by any party or by any employee, officer, or agent of any party that is not in writing and signed by all the parties to this Agreement shall be binding. Section 6.10 Counterparts. This Agreement may be executed in any number of counterparts, each of which, when so executed and delivered, shall be an original, but such counterparts shall together constitute one and the same instrument. Section 6.11 Additional Requirements. The Public Entity and the State agree to comply v��ith the iollowing additional requirements. (If there are no additional requirements then insert the word "NONE".) 3��z 15 � �- ���� , IN WITNESS WHEREOF, the parties hereto have executed this Disbursement Agreement, or caused it to be executed by their duly authorized officers or partners, as of the date first above written. PUBLIC ENTITY: a By: Its: And: Its: STATE: By: Its: Approved as to form and execution: Assistant Attorney General Approved by: Department of Finance Approved by: Department of Administration 31309'�2 16 � �'(�- � J1(� > EXHIBIT A Form of Draw Requisition . 3130422 � a � �� � m1,� � ���� �"�4 � r �c� — � 3�� LEASE BETWEEN CITY OF SAINT PAUL, MINNESOTA, as Lessor, AND THE SCIENCE MUSEUM OF MINNESOTA, as Tenant , 1997 THIS DOCUMENT WAS DRAFTED BY: Briggs and Morgan, Professional Association (MNID) 2200 West First National Bank Building St . Paul, Minnesota 55102 (612) 223-6600 295832.4 f i "�-I��T TABLE OF CONTENTS (Not a part of this Lease) Paae PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 ARTICLE I - Definitions and Exhibits . . . . . . . . . . . . 1 Section 1 . 01 . Definitions . . . . . . . . . . . . . . . 1 Section 1 . 02 . Exhibit . . . . . . . . . . . . . . . . . 3 ARTICLE 2 - Representations of Parties . . . . . . . . . . . 4 Section 2 . 01 . Representations by the City . . . . . . . 4 Section 2 . 02 . Representations by Tenant . . . . . . . . 4 ARTICLE 3 - Lease and Rentals . . . . . . . . . . . . . . . . 6 Section 3 .01 . Lease . . . . . . . . . . . . . . . . . . 6 Section 3 .02 . Basic Rent . . . . . . . . . . . . . . . 6 Section 3 . 03 . Additional Rent . . . . . . . . . . . . . 6 Section 3 . 04 . Tenant' s Obligations Unconditional . . . 7 Section 3 . 05 . Tenant' s Remedies . . . . . . . . . . . . 7 Section 3 . 06 . Non Recourse . . . . . . . . . . . . . . 8 ARTICLE 4 - Use and Maintenance, Modifications, Taxes and Insurance . . . . . . . . . . . . . 9 Section 4 . 01 . Use and Maintenance . . . . . . . . . . . 9 Section 4 . 02 . No Obligation of City to Pay For Operation and Maintenance of Science Center . . . . . . . . . . . . . . . . . 9 Section 4 . 03 . Modifications . . . . . . . . . . . . . . 9 Section 4 . 04 . Liens . . . . . . . . . . . . . . . . . . 10 Section 4 .05 . Removal of Leased Equipment . . . . . . . 10 Section 4 . 06 . Taxes and Other Governmental Charges and Utility Charges . . . . . . . . . . . . . 10 Section 4 . 07 . Liability Insurance . . . . . . . . . . . 11 Section 4 . 08 . Property Insurance . . . . . . . . . . . 11 Section 4 . 09 . Other Insurance and Requirements for All Insurance . . . . . . . . . . . . . . . . 11 Section 4 . 09A. Increase in Coverage . . . . . . . . . . 12 Section 4 . 10 . Advances . . . . . . . . . . . . . . . . 12 Section 4 . 11 . Installation of Tenant ' s Equipment . . . 12 ARTICLE 5 - Damage, Destruction and Condemnation . . . . . . 14 Section 5 . 01 . Damage and Destruction . . . . . . . . . 14 Section 5 . 02 . Condemnation . . . . . . . . . . . . . . 15 ARTICLE 6 - Tenant' s Covenants . . . . . . . . . . . . . . . 17 Section 6 . 01. Inspection and Access . . . . . . . . . . 17 Section 6 . 02 . Books and Records; Audit . . . . . . . . 17 295832.4 . _ �� ��3�� Section 6 . 03 . Indemnity . . . . . . . . . . . . . . . . 17 Section 6 .04 . Continuing Existence and Qualification . 17 Section 6 . 05 . Surrender of Project . . . . . . . . . . 18 Section 6 . 06 . Statement of Compliance . . . . . . . . . 18 ARTICLE 7 - Tenant' s and City' s Options . . . . . . . . . . 19 Section 7 . 01 . Assignment and Sublease . . . . . . . . . 19 Section 7 . 02 . Prepayment of Rents . . . . . . . . . . . 19 Section 7 . 03 . Abatement of Basic Rent . . . . . . . . . 19 Section 7 . 04 . Termination . . . . . . . . . . . . . . . 20 Section 7 . 05 . Renewal of Lease . . . . . . . . . . . . 20 Section 7 . 06 . Transfer of Title . . . . . . . . . . . . 20 ARTICLE 8 - Events of Default and Remedies . . . . . . . . . 21 Section 8 . 01 . Events of Default . . . . . . . . . . . . 21 Section 8 . 02 . City Remedies . . . . . . . . . . . . . . 21 Section 8 . 03 . Manner of Exercise . . . . . . . . . . . 22 Section 8 . 04 . Effect of Waiver . . . . . . . . . . . . 22 Section 8 . 05 . Waiver of Stay or Extension . . . . . . . 22 ARTICLE 9 - General . . . . . . . . . . . . . . . . . . . . . 24 Section 9 .01 . Notices . . . . . . . . . . . . . . . . . 24 Section 9 . 02 . Binding Effect . . . . . . . . . . . . . 24 Section 9 . 03 . Severability . . . . . . . . . . . . . 24 Section 9 . 04 . Execution Counterparts • . . . . . . . . . 24 Section 9 . 05 . Prior Leases Superseded . . . . . . . . . 24 Section 9 . 06 . Exercise of City Powers . . . . . . . . . 25 SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . 25-26 ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . 2 7-2 8 EXHIBIT A - Legal Description of Science Center Air Rights Parcel 295832.4 t �'�-� 3�(� THIS LEASE dated as of , 1997*, between the CITY OF SAINT PAUL, a Minnesota municipal corporation, called herein the City, and the Science Museum of Minnesota, a Minnesota non-profit corporation, called herein the Tenant, WITNESSETH that the City demises and leases to the Tenant, and the Tenant leases from the City, the Science Center herein described, for a term commencing as of the date of this Lease and extending through November 1, 2020 (the "Lease Term��) , unless sooner terminated as herein provided and at the rentals and upon the further terms and conditions herein set forth; and that the City and the Tenant, each in consideration of the representations, covenants and agreements of the other as set forth herein, mutually represent, covenant and agree as follows : ARTICLE I Definitions and Exhibits Section 1.01 . Definitions . Development Agreement : the Development Agreement dated as of , 1996 by and between the City and the Tenant; Fiscal Year: the twelve (12) month period beginning on January 1 of each year and ending on December 31 of the same year; Gross Revenues : all operating revenues or other amounts received by the Tenant from the Science Center, including but not limited to, all ticket sales, user fees, any rent pursuant to a sublease of the Science Center, and any net proceeds from business interruption insurance; Lease: this Lease, including any amendment hereof or supplement hereto; Net Proceeds : with respect to any insurance payment or condemnation award, the gross proceeds remaining therefrom after payment of all expenses incurred in the collection thereof; **Permitted Encumbrances : this Lease and, as of any particular time, (A) liens for taxes and special assessments not it then delinquent; " To be dated as of date of Museum Lease **Revise? 295832.4 . , � �(� - 13�� (B) utility, access and other easements and rights-of-way, restrictions and exceptions that an independent engineer certifies will not interfere with or impair the operation of the Science Center (or, if it is not being so operated, the operations for which it was designed or last modified or for which it is being used at the time of such certificate) ; (C) any mechanic' s, laborer' s, materialman� s, supplier' s or vendor' s lien or right in respect thereof if payment is not yet due under the contract in question; (D) the security interest of Imax Entertainment Limited under its contract with the Tenant dated February 28, 1976 relating to the furnishing of certain equipment for the Science Center; (E) the security interest of Spitz Space Systems, Inc. under its contracts with the Tenant dated May 1, 1976 and relating to the furnishing of certain equipment for the Science Center; (F) the Reciprocal Agreement; Reciprocal Agreement: that certain Agreement, dated July 31, 1979, among Fountain Development Company, Twenty Broad Street Leasing Company, Incorporated, the Tenant, the City and the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, including any amendments thereof; Science Center• (A) the real property, easements and other rights described in Exhibit A, (B) the building, fixtures and equipment now located on such real property, except property installed by the Tenant pursuant to Sect . 4 .11 hereof and tagged or otherwise identified as property of the Tenant not included in the Science Center. (C) all other building improvements, fixtures and equipment, which may from time to time be added to the Science Center, and (D) all additions to and substitutions for any of the foregoing which may be made as permitted or required by this Lease, except that any of the foregoing which may be released or taken by eminent domain as authorized or 295832.4 2 4(� - ( 3�(� contemplated by this Lease shall no longer constitute a part of such Science Center; State: the St,ate of Minnesota. Section 1 . 02 . Exhibit . The following Exhibit is attached to and by reference made a part of this Lease: Exhibit A: legal description of the real property upon which the Science Center is located and the other real and personal property comprising the Science Center as of the date hereof . 295832.4 3 , � �(� - ( 3�(� ARTICLE 2 Representations of Parties Section 2 . 01 . Representations by the City. The City makes the following representations as the basis for its covenants herein: (1) The City has accepted the conveyance by Twenty Broad Street Leasing Company, Incorporated, of the Science Center, subject to Permitted Encumbrances, but the City makes no representations or warranties with respect to its title thereto; (2) The City has entered into the Development Agreement with the Tenant; (3) The City will not, during the term of this Lease and so long as Tenant is not in default hereunder, take any actions to disturb the Tenant ' s quiet possession and enjoyment of the Science Center; (4) The City is authorized by Minnesota Statutes, Sections 471 . 15 through 471 . 191 and the City Charter to take all actions described in this Section 2 . 01 and to enter into this Lease, and the City' s governing body has authorized all such actions in accordance with law. Section 2 . 02 . Representations by Tenant . The Tenant herein makes the following representations as the basis for its covenants herein: (1) The Tenant is a non-profit corporation duly organized, existing and in good standing under the laws of the State of Minnesota, has power to enter into this Lease, and by proper corporate action has authorized the execution and delivery of this Lease; (2) The Tenant is an exempt organization within the meaning of Section 501 (c) (3) of the United States Internal Revenue Code, not subject to taxation under Section 501 (a) of the Code; (3) The execution and delivery of this Lease, the consummation of the transactions contemplated hereby, and the fulfillment of the terms and conditions hereof do not and will not conflict with or result in a breach of any of the terms or conditions of any corporate restriction or of any agreement or instrument to which the Tenant is now a party, and do not and will not constitute a default under any of the foregoing, or 295832.4 4 . . �c� - � 3—�� result in the creation or imposition of any lien, charge or encumbrance of any nature upon any of the property or assets of the Tenant contrary to the terms of any instrument or agreement; (4) The Tenant does not rely on any warranty of the City, either express or implied; (5) Any activities conducted at the Science Center will not violate any provision of federal or State law, or any provision of the City Charter and the ordinances adopted thereunder. 295832.4 5 . Q�- � 3�1� ARTICLE 3 Lease and Rentals Section 3 .01 . Lease. The City hereby leases to the Tenant, its successors and assigns, and the Tenant hereby leases from the City, the Science Center described in the attached Exhibit A, subject to Permitted Encumbrances, for the purposes specified in Section 2 .02, for a term commencing on the date of this Lease and continuing through March 15, 2020 unless previously terminated or extended as hereinafter provided. Section 3 . 02 . Basic Rent . Subject to the right of prepayment granted in Section 7 .02 hereof, the Tenant agrees to pay (i) on or before each March 1 of each year commencing March 1, 1998 through and including March 1, 2000, the sum of $1 . 00 per year and (ii) commencing on March 1, 2001, and on March 1 of each year thereafter through and including March 1, 2020, as basic rent for the Science Center, the greater of (a) $250, 000* per year or (b) 10� of the Gross Revenues . The basic rent shall be paid by the Tenant directly to the City at the address set forth in Section 9 .01 hereof. This Lease is a net lease, and the City shall be under no obligation to the Tenant to operate, maintain, replace or improve the Science Center or pay the cost thereof, but shall be entitled to receive the basic rent hereunder on an absolute net basis, and such rent shall not be subject to reduction or abatement except as provided in Section 7 . 03 . At the time basic rent is due hereunder during the years 2001 through 2020, the Tenant shall supply the City with a calculation of the Gross Revenues, and all backup information used to calculate the same. Section 3 . 03 . Additional Rent. The Tenant agrees to pay the following items to the following persons as additional rent under this Lease: (1) to the County Treasurer of Ramsey County, and to any other governmental official authorized by law to collect any ad valorem taxes or special assessments levied on the Science Center or on the privilege of using the same, the full amount of all such taxes and special assessments due and payable during the term of this Lease, if any, it being understood that under the provisions of Minnesota Statutes, Section 471 . 191, Subdivision 4, the Science Center is exempt from ad valorem taxation so long as devoted to the public purposes provided in Section 2 . 02 and is * Revise to monthly? 295832.4 6 , , `��- 13"7(� not leased or subleased to any private individual, association or corporation for use in a business conducted for profit; (2) to each public or private person, firm or corporation furnishing utility service for the Science Center,� when due and payable during the term of this Lease, all fees, charges and rentals for such service; (3) to the City the amount of all advances of funds made by it under the provisions of Section 4 . 10, with interest thereon from the date of each advance at the rate of 10 . 00% per annum. The Tenant represents and agrees that the provisions of Minnesota Statutes, Section 471 .191, Subdivision 1, authorizing non-profit corporations to off-set the amount of any ad valorem taxes and special assessments levied on any land, building or facilities leased by the non-profit corporation pursuant to said Subdivision 1, are not applicable to this Lease, and that the Tenant waives any rights it may have to obtain such an off-set against the rentals due under this Lease or to any reimbursement from the City of any taxes and special assessments paid with respect to the Science Center. Section 3 . 04 . Tenant' s Obligations Unconditional . All basic and additional rent and all other payments required of the Tenant hereunder shall be paid without notice or demand and without setoff, counterclaim, abatement, deduction or defense except as provided in Section 7 .03 . Section 3 . 05. Tenant' s Remedies . Nothing contained in this Section shall be construed to release the City from the performance of any of its agreements in this Lease or the Reciprocal Agreement, and if the City should fail to perform any such agreement, the Tenant may institute such action against the City as the Tenant may deem necessary to compel the performance, so long as such action shall not violate the Tenant ' s agreements in Sections 3 . 02 and 3 . 03 . The Tenant may at its own cost and expense, and in its own name or in the name of the City, prosecute or defend any action or proceeding against third parties or take any other action which the Tenant deems reasonably necessary in order to secure or protect �its right of possession, occupancy and use of the Science Center under this Lease. In this event the City agrees to cooperate fully with the Tenant, and to take all action necessary to effect the substitution of the Tenant for the City in any such action or proceeding if the Tenant shall so request . The Tenant agrees to indemnify and hold the City harmless against any and all costs, expenses, claims and damages of any nature, incurred by it as a result of any legal action taken by the Tenant with respect to any third party, prior to commencing any such legal action. 295832.4 7 Ll�"�3�� Section 3 . 06 . Non Recourse. It is agreed by the City and the Tenant that this Lease is not intended to create any personal liability for the "debt" herein created on account of the obligation of the Tenant to pay basic rent or for the performance of any obligation imposed on the Tenant herein, with the exception of any obligations contained herein which are not, either directly or indirectly, obligations attributable to the obligation to pay basic rent . Therefore, notwithstanding any -other provision in this Lease to the contrary, neither the Tenant nor individuals signing this agreement on behalf of the Tenant nor any other officer or director of the Tenant, its permitted successors or assigns, shall be personally liable or responsible either directly or indirectly for the payment of basic rent . If an Event of Default should occur in the making of such payments of basic rent, the City' s remedies shall be limited accordingly. Notwithstanding the provisions of the foregoing paragraph, nothing in this Lease shall be construed to relieve the Tenant from liability on account of any of the following; fraud; waste with respect to the Science Center; conversion of assets constituting assets of the Science Center to the use or benefit of the Tenant; or usurpation of the proceeds of any condemnation award or insurance claim payment in violation of the terms of this Lease. 295832.4 8 , �(� -� 37c, ARTICLE 4 Use and Maintenance, Modifications, Taxes and Insurance Section 4 . 01 . Use and Maintenance. During the Lease term the Tenant will utilize the Science Center for any lawful purpose (including subleasing) with the prior written approval of the City, which approval shall not be unreasonably withheld. The Tenant, will at its own expense, complete and keep the Science Center and all parts thereof in good repair and good operating condition and in as safe condition as its operations will reasonably permit, making all ordinary repairs, replacements and substitutions thereof which may be necessary for this purpose; and will comply with all laws, rules, regulations and ordinances applicable to the possession, use and operation of the Science Center. --- Sectiori 4 . 02 . No Obligation of City to Pay For Operation and Maintenance of Science Center. The Tenant represents and agrees that the City is not required under the provisions of Minnesota Statutes, Section 471 . 191, Subdivision 3, to provide in its annual budget for any deficiency in revenues of the Tenant available to pay costs of operation and maintenance of the Science Center; and the Tenant hereby waives any rights it may have to require the City to provide for any such deficiency. If the moneys of the Tenant available for the payment of such costs are less than the amount of such costs to be paid by the Tenant, or if for any reason such costs are not paid by the Tenant, or if any person commences a legal action against the City seeking to require it to pay or provide in its budget for the payment of all or any part of such costs, the City may declare the Tenant to be in default hereunder and the City shall be authorized to exercise all or any of the remedies available to it under Section 8 . 02 . The Tenant also agrees to indemnify and hold the City harmless from any and all costs, expenses, claims, damages and expendi- tures of any nature incurred by it in defending any such legal action or in complying with the order of any court issued as a result thereof . Section 4 . 03 . Modifications. The Tenant may from time to time make any additions, modifications or improvements to the Science Center, located wholly within the Science Center site or easements described in Exhibit A, that it may deem desirable for the purposes described in Section 4 . 01 and that do not adversely affect the structural integrity of the Science Center or any part of it . All additions, modifications and improvements made by the Tenant shall become a part of the Science Center subject to the provisions of this Lease. 295832.4 9 �(� - i 3�4 Section 4 . 04 . Liens. The Tenant will not permit any encumbrance or lien to be filed or established or to remain against the Science Center for labor or materials furnished in connection with any additions, modifications, improvements, repairs, renewals or replacements made by it, except Permitted Encumbrances; provided, it may in good faith contest any encumbrance or lien filed or established and in such event may permit the items contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom. The City will cooperate fully with the Tenant in any such contest, provided that the Tenant shall undertake to pay all costs and expenses incurred by the City and to indemnify the City and save it harmless against any risks, claims or liabilities arising out of such contest . Section 4 . 05 . Removal of Leased Equipment . Subject to and except as provided in Section 4 .11 hereof, the Tenant shall not remove or permit the removal of any equipment or other property comprising part of the Science Center except in accordance with the provisions of this Section. In any instance where the Tenant in its sound discretion determines that any item of such equipment or other property has become inadequate, obsolete, worn out or unsuitable for the operation of or use in the Science Center, the Tenant may remove it, with or without substitution or installation of other equivalent equipment. The Tenant shall pay all costs of such removal and substitution, and shall repair all damage to the Science Center resulting therefrom. All substitute eguipment shall become part of the Science Center and subject to the provisions of this Lease. Notwithstanding anything else in this Lease to the contrary, the Tenant shall have the right to remove any trade fixtures, equipment, exhibits and other personal property of Tenant and leased or rented property other than pursuant to this Lease. Section 4 . 06 . Taxes and Other Governmental Charaes and Utility Charges . The Tenant will make promptly all the term of this Lease of ad valorem taxes lawfully levied upon or with respect to the Science Center or its use, if any; of other charges lawfully made by any governmental body for public improvements that may be or become secured by a lien on the Science Center; and of utility and other charges incurred in the operation, maintenance, use, occupancy, and upkeep of the Science Center; including but not limited to taxes or service charges on any property of the Tenant brought in or upon the Science Center, sales and other excise taxes on products thereof, and any taxes levied upon or with respect to income or profits from the Science Center which, if not paid, might become a lien thereon. The Tenant may, at its own expense, in good faith contest any such taxes or service charges and, in the event of such contest, may 295832.4 1 0 . R� � I 3-�� permit the items so contested to remain unpaid during the period of the contest and any appeal therefrom. Section 4 . 07 . Liability Insurance. The Tenant will procure and maintain continuously in effect during the term of the Lease insurance against liability for injuries to or death of any person or damage to or loss of property arising out of or in any way relating to the condition or its operation of the Science Center or any part thereof, in the minimum amounts of $1, 000, 000 for death of or personal injury to any one person, $2, 000, 000 for all personal injuries and deaths arising out of any one occurrence, and $300, 000 for property damage arising out of any one occurrence, and will cause all contractors to maintain insurance of similar kinds and amounts against all similar liabilities on their part. The Net Proceeds of all such insurance shall be applied toward extinguishment or satisfaction of the liability with respect to which the insurance proceeds may be paid. Section 4 . 08 . Property Insurance. The Tenant will procure and maintain continuously in effect during the term of the Lease, to the extent of the full insurable value of the Science Center, other than building foundations, insurance against loss from or damage by vandalism and fire, with a uniform standard extended coverage endorsement limited only as may be provided in the standard form of extended coverage endorsement at the time in use in Minnesota, in such amount as will be at least sufficient so that a claim may be made for the full replacement cost of any part thereof damaged or destroyed. In time of war in which the United States of America is a belligerent, the City will procure and maintain continuously in effect such insurance as may be available from the United States of America, to the extent of the full insurable value of the Science Center and insuring against loss thereof or damage thereto from the risks and hazards of war, if , such insurance is then generally carried by owners of similar facilities in Minnesota. All policies evidencing insurance required in this Section shall be carried in the names of the City and the Tenant as their respective interests may appear. Each policy may be written with a deductible amount of $5, 000 . The Net Proceeds of insurance required by this Section shall be applied as provided in Section 5 . 01 . Section 4 . 09 . Other Insurance and Reguirements for All Insurance. The Tenant will also procure and maintain continuously in effect during the term of this Lease such other insurance as is customarily carried by persons or organizations engaging in the operation of public facilities similar to the Science Center. All insurance policies required by this Article shall be taken out and maintained with responsible insurance companies organized under the laws of one of the states of the 295832.4 1 1 , . �(�— � 3�c� United States and qualified to do business in the State; shall contain a provision that the insurer shall not cancel or revise coverage thereunder without giving written notice to both parties at least ten (10) days before the cancellation or revision becomes effective; and shall name the Tenant and the City as an insured. The Tenant shall deposit with the City policies evidencing any such insurance procured by it, or a certificate or certificates of the respective insurers stating that such insurance is in force and effect. Before the expiration of any such policy, the Tenant shall furnish to the City evidence that the policy has been renewed or replaced by another policy conforming to the provisions of this Article, unless such insurance is no longer obtainable in which event the Tenant shall notify the City of this fact . Section 4 . 09A. Increase in Coveraae. The insurance and the size of any applicable deductible required to be maintained pursuant to this Lease shall be subject to review as to its adequacy by an Independent Insurance Consultant once every three years beginning in the year 2000 . The Tenant shall cause such review to be conducted and shall cause such Consultant to prepare a written report regarding such review containing such Consultant ' s recommendations, if any, for changes in such insurance. The Tenant shall cause copies of such report to be delivered promptly to the City and agrees to follow the recommendations of such Independent Insurance Consultant to the extent practicable. For purposes of this Section 4 . 09A, the term "Independent Insurance Consultant" means any person who is not an employee or officer of Tenant, appointed by Tenant, qualified to survey risks and to recommend insurance coverage for organizations engaged in like operations to those of the Tenant and having a favorable reputation for skill and experience in such surveys and such recommendations, and who may be a broker or agent with whom Tenant transacts business, and reasonably acceptable to City. Section 4 . 10 . Advances. If the Tenant shall fail to make all repairs, pay all liens, taxes and service charges and maintain all insurance required in this Article, the City may, but shall not be obligated to, take such action as may be necessary to cure such failure, including the advancement of money, and the Tenant shall be obligated to repay all such advances on demand, with interest from the date of the advance to the date of repayment at the rate of 10� per annum. Section 4 .11 . Installation of Tenant ' s Equipment . The Tenant may at any time and from time to time, in its sole discretion and at its own expense, install items of movable machinery and equipment in or upon the Science Center which items shall be identified by tags or other symbols affixed thereto as 295832.4 1 2 , � �� -�3?� property of the Tenant not included in the Science Center. All such items so identified shall remain the sole property of the Tenant, in which the City shall have no interest, and may be modified or removed by the Tenant at any time, provided that the Tenant shall repair and restore any and all damage to the Science Center resulting from the installation, modification or removal of any such items . Nothing in this Lease shall prevent the Tenant from purchasing items to be installed pursuant to this Section under a conditional sale or lease-purchase contract, or subject to a vendor� s lien or security agreement, as security for the unpaid portion of the purchase price thereof, provided that no such lien or security interest shall attach to any other part of the Science Center. The Tenant shall promptly pay when due the purchase price and all costs and expenses of the acquisition and installation of each item installed by it pursuant to this Section. 295832.4 1 3 � � ��- ���� ARTICLE 5 Damage, Destruction and Condemnation Section 5 . 01 . Damage and Destruction (a) If the Science Center is partially destroyed or is damaged by fire or other casualty, to such extent that the claim for loss resulting therefrom is not greater than $50, 000, the Tenant will promptly repair, rebuild and restore the property damaged or destroyed to substantially the same condition as existed before the event causing the damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Tenant and as will not impair the operating unity, productive capacity or value of the Science Center, and will be suitable for continued operation of the Science Center for the purposes specified in this Lease. The Tenant will pay all costs thereof and shall be entitled to receive all proceeds of insurance if any, paid in respect of such claim. (b) If the Science Center is destroyed in whole or in part or is damaged by fire or other casualty to such extent that the claim for loss resulting therefrom exceeds $50, 000, the Tenant shall promptly give written notice thereof to the City. The City or the Tenant, as determined by the City within 90 days of the loss, shall proceed within a period of three years from date of damage, in accordance with applicable public bidding laws, to repair, rebuild and restore the property damaged or • destroyed to substantially the same condition as existed before the event causing the damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Tenant and will be suitable for continued operation of the Science Center for the purposes specified in this Lease. Before the work is undertaken the City or the Tenant, as the case may be, shall cause plans and specifications therefor to be prepared and reviewed by the other, and shall apply so much as may be necessary of the insurance proceeds received for the damage by it to payment of the costs of such repair, rebuilding or restoration, including the restoration or replacement of exhibits . If the insurance proceeds are not sufficient to pay such costs in full, the Tenant, if required by the City, shall pay that portion of the cost thereof in excess of the amount of the proceeds . Any balance of insurance proceeds remaining after payment of all costs of any repair, rebuilding or restoration, including the restoration or replacement of exhibits shall be applied to the payment of the next basic rental payment due under Section 3 . 02 . 295832.4 1 4 . . �'�:-� 3-�� (c) Notwithstanding the provisions of paragraphs (a) and (b) , if the Science Center is destroyed in whole or in part so as to make the Science Center in the opinion of Tenant unsuitable for the use for which it is intended, the City, at the written request of the Tenant, shall use the insurance proceeds to prepay basic rent payable under Section 3 . 02 (ii) hereof, which shall be discounted to present value in accordance with Section 7 . 02 hereof; provided further that the Tenant shall pay the City any additional amounts needed to prepay the present value of the basic rent not covered by such insurance proceeds . Upon receipt by the City of such payment, this Lease shall terminate and the City shall deed its interests in the Science Center to the Tenant . Section 5 . 02 . Condemnation. (a) If the Science Center or any part thereof is taken by eminent domain by any governmental body or by any person, firm or corporation acting under governmental authority, the award for the interests of the City and the Tenant made in such proceedings shall be applied in one or more of the ways described in this Section 5 . 02 . (b) The City or the Tenant, as determined by the City, shall promptly, so far as possible and in accordance with applicable public bidding laws, repair, rebuild and restore the Science Center and all parts thereof to substantially the same condition as existed before the taking, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Tenant and will be suitable for continued operation of the Science Center for the purposes specified in this Lease. So far as possible the � City will acquire such adjacent land in lieu of that taken as may be needed for such restoration and requested in writing by the Tenant . So much of the award as may be necessary shall be applied to the payment of the cost of acquisition of the land. Before the work of restoration is undertaken, the City or the Tenant, as the case may be, shall cause plans and specifications to be prepared and reviewed by the other. So much of the award as may be necessary shall be applied to the payment of the costs of such restoration, including restoration or replacement of exhibits . If the award is not sufficient to pay such costs in full, including the cost of any additional land required, the Tenant, if required by the City, shall pay that portion of the cost in excess of the amount of the award. (c) All land, buildings, improvements and equipment acquired in the restoration of the Science Center shall be deemed a part thereof and available for use and occupancy by the Tenant without the payment of any rents other than those provided in 295832.4 1 5 , � 4(� -i 3�c� Article 3, to the same extent as if they had been specifically described and demised in this Lease; provided that if the City issues any obligations to finance improvements or restoration , required by Sections 5 . 01 or 5 .02 the Tenant will enter into a supplemental lease providing for the payment of additional rent sufficient to pay the principal of and interest on said obligations. (d) If any balance of the award shall remain after restoration of the Science Center, including restoration or replacement of exhibits in accordance with the plans and specifications, such balance shall be applied to the payment of the next basic rental payment due under Section 3 . 02 . (e) The City will cooperate fully with the Tenant in the handling and conduct of any prospective or pending condemnation proceedings affecting the Science Center or any part thereof and will, to the extent it may lawfully do so, permit the Tenant to litigate in any such proceeding in the name and on behalf of the City. In no event will the City voluntarily settle or consent to the settlement of any such condemnation proceeding without the written consent of the Tenant . The Tenant agrees to indemnify and hold the City harmless against any and all costs, expenses, claims and damages of any nature incurred by it as a result of any such litigation prior to commencing the same. � (f) The proceeds of any condemnation award made for damages on account of the interference with Tenant' s rights under this Lease or Tenant ' s business shall be the property of the Tenant . (g) Notwithstanding the provisions of paragraphs (a) through (f) , if due to the taking in condemnation the Science Center is in the Tenant ' s opinion unsuitable for the use for which it is intended, the City, at the written request of the Tenant, shall use the proceeds of the condemnation award to prepay the basic rent payable under Section 3 .02 (ii) hereof, which amount shall be discounted to present value in accordance with Section 7 . 02 hereof; provided further that the Tenant shall pay the City any additional amounts needed to prepay the present value of the basic rent not covered by such condemnation proceeds . 295832.4 1 6 . � `�(� �13�7(� ARTICLE 6 Tenant ' s Covenants Section 6 . 01. Inspection and Access . The Tenant agrees that the City and their duly authorized agents shall have the right at all reasonable times to examine and inspect the Science Center and for that purpose to enter upon the Science Center. Section 6 . 02 . Books and Records; Audit . The Tenant covenants and agrees that it will keep complete and accurate books and records reflecting all of its financial transactions, that it will annually cause such books and records to be audited by a certified public accounting firm, and that it will provide the City with a copy of the audit report of such firm within 120 days after the close of its fiscal year, which audit shall be accompanied by a statement of the auditing firm that nothing has come to their attention during the preparation of the audit which would constitute an Event of Default under this Lease. Section 6 . 03 . Indemnitv. The Tenant will pay, and will protect, indemnify and save the City harmless from and against all liabilities, losses, damages, costs, expenses (including attorneys ' fees and expenses) , causes of action, suits, claims, demands and judgments of any nature arising from: (1) any injury to or death of any person or damage to property in or upon the Science Center or growing out of or connected with the use, non-use, condition or occupancy of the Science Center or a part thereof, including losses caused by the negligence of the City, its agents or contractors, but not any negligence arising from the use, non-use, condition or occupancy of the parking ramp beneath the Science Center, and the ramp elevators; (2) violation of any agreement or condition of this Lease by the Tenant; (3) violation of any contract, agreement or restriction of the Tenant which shall have existed at the commencement of the term of this Lease or shall have been approved by the Tenant; (4) violation of any law, ordinance or regulation affecting the Science Center or a part thereof or the ownership, occupancy or use thereof, except as occasioned by the City; Section 6 . 04 . Continuing Existence and Oualification. The Tenant is and throughout the Lease Term will remain duly 295832.4 1 7 � �'�- � 3—�c�. qualified to do business as a nonprofit corporation in Minnesota, will maintain its non-profit corporate existence, will not dissolve or otherwise dispose of all or substantially all of its assets, and will not consolidate with or merge into another corporation or permit any other corporation to consolidate with or merge into it unless the surviving, resulting or transferee corporation, as the case may be, if other than the Tenant, is organized under the laws of one of the United States, assumes in writing all of the obligations of the Tenant under this Lease, and has a net worth at least equal to that of the Tenant as of the date of such consolidation, merger or transfer, and is duly qualified to do business in Minnesota. At least thirty days before any merger, consolidation or transfer of assets becomes effective, the Tenant shall give the City written notice of the proposed transaction. Every surviving, resulting or transferee corporation and other person referred to in this Section shall be bound by all of the covenants and agreements of the Tenant herein with respect to any further consolidation, merger, sale or transfer and shall execute an appropriate instrument assuming such covenants and agreements . Section 6 . 05 . Surrender of Project . Except as otherwise provided in this Lease, at the expiration or earlier termination of the term hereof the Tenant will surrender possession of the Science Center to the City peaceably and promptly and in as good condition as at the commencement of the term of this Lease, loss by fire or other casualty to the extent covered by insurance and ordinary wear, tear and obsolescence only excepted. Section 6 . 06 . Statement of Compliance. The Tenant will deliver to the City on or before February 1 of each year during the Lease term a certificate of an officer of the Tenant stating that : (a) he or she has made, or caused to be made, a review of the Tenant ' s activities during the preceding year with respect to performance under this Lease, and (b) to the best of his or her knowledge, based upon the results of such review, the Tenant has fulfilled all of its obligations under this Lease, or if there has been a default in the fulfillment of any obligation, specifying the nature of each such default and its status. 295832.4 1 8 . • �l(.Q — �3�c� ARTICLE 7 Tenant ' s and City' s Options Section 7 .01. Assignment and Sublease. The Tenant may assign this Lease and may sublease the Science Center in whole or in part, but only with the prior consent of the City which shall not be unreasonably withheld, and subject to each of the following conditions : (1) no assignment or sublease shall relieve the Tenant from primary liability for all rents and other payments due and for the performance of all other obligations required under his Lease; (2) any assignee of this Lease and any sublessee of all or substantially all of the Science Center shall expressly assume the obligations of the Tenant hereunder, by instrument delivered to the City; and (3) within ten (10) days after the delivery of any assignment or sublease the Tenant shall deliver to the City and the Trustee a true and complete copy thereof . Section 7 . 02 . Prepayment of Rents . The Tenant may, on any date, prepay all of the basic rent payable under Section 3 . 02 for the remaining Lease Term by paying the City an amount equal to the present value of the remaining basic rent due for the remainder of the Lease Term, such present value to be calculated at the current interest rate then in effect for U.S. Treasury Bills having a maturity most close to, but not greater than, the number of years remaining in the Lease Term. In calculating the amount of basic rent for purposes of prepayment, the parties shall assume the basic rent is $250, 000 per year for the years 2001 through and including 2020 . Section 7 . 03 . Abatement of Basic Rent . At any time the aggregate amount of the basic rent paid by the Tenant to the City is sufficient to discharge the Tenant ' s obligation to pay basic rent, then the Tenant shall be entitled to use and occupy the Science Center from the date on which such basic rents are in the hands of the City until the expiration of the term of this Lease or its earlier termination under the provisions hereof, without the payment of additional basic rent, but otherwise on the terms and conditions herein set forth; provided that the abatement of future basic rent shall not relieve the Tenant from the obligation to pay basic rent past due or other amounts due hereunder. 295832.4 1 9 . `��-� 3�(� , Section 7 . 04 . Termination. The Tenant may not terminate this Lease prior to the end of the initial term or any renewal term without the consent and agreement of the City. Section 7 . 05 . Renewal of Lease. Subject to the provisions of Section 7 . 06, the City shall each have the option to renew this Lease for a renewal term commencing on March 16, 2020 and ending on March 15, 2038, upon the same terms and conditions as are applicable to the initial Lease term, provided that no additional basic rent shall be paid during the renewal term unless required by Section 3 . 02 hereof. The Tenant may exercise its option to renew by giving the City written notice on or before October 1, 2019 of its intention to renew the Lease. Section 7 . 06 . Transfer of Title. (a) Upon payment or prepayment of all basic rent pursuant to Section 7 . 02, or at any time thereafter, the City shall, at the request of the Tenant, convey title to the Science Center to the Tenant by quitclaim deed at any time. City may convey title to the Science Center at any time by giving the Tenant 10 days notice of its intention to convey the title, specifying the date of conveyance, and by delivering to the Tenant on or after said date a quitclaim deed. The Tenant agrees to accept title to the Science Center from the City if tendered, to record the quitclaim deed received from the City, and to pay all out-of-pocket costs and expenses incurred by the City in completing the transfer, but the Tenant shall not be required to pay or prepay any basic rent after conveyance of title if such conveyance is at the City' s election. Upon delivery of the quitclaim deed, the City shall also assign to the Tenant, and the Tenant shall accept, any other contracts or contract rights of the City in or to the Science Center. (b) The City agrees to convey its interest in the Science Center to SMM or a third party designated by SMM in connection with a sale of the Science Center if SDM�! pays or prepays all basic rent pursuant to Section 7 . 02 hereof . 295832.4 2 0 • � Q� - � 31 � ARTICLE 8 Events of Default and Remedies Section 8 . 01 . Events of Default . Any one or more of the following events is an Event of Default under this Lease: (1) Default in the payment of any basic rent required by Section 3 . 02 when such basic rent becomes due and payable; or (2) If the Tenant shall fail to observe and perform any other covenant, condition or agreement on its part under this Lease for a period of thirty (30) days after written notice, specifying such default and requesting that it be remedied, given to the Tenant by the City, unless the City shall agree in writing to an extension of such time prior to its expiration, or for such longer period as may be reasonably necessary to remedy such default provided that the Tenant is proceeding with reasonable diligence to remedy the same; or (3) The entry of a decree or order for relief in respect of the Tenant by a court having jurisdiction in the premises in an � involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar official) of the Tenant or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days; or (4) The commencement by the Tenant of a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by it to the institution of an order for relief in an involuntary case under any such law, or the consent by it to the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Tenant or of any substantial part of its property, or the making by it of a general assignment for the benefit of creditors, or the failure by it to pay its debts generally as they become due, or the taking of corporate action by the Tenant in furtherance of any such action. Section 8 . 02 . City Remedies . Whenever any Event of Default referred to in Section 8 .01 shall have happened and be subsisting, any one or more of the following remedial steps may be taken after written notice mailed to the Tenant at least ten days prior thereto. 295832.4 2 1 . �'(� — i 3�c� . (1) the City may, at its option, declare the present value of all installments of basic rent payable under Section 3 . 02 for the remainder of the term of this Lease to be immediately due and payable, whereupon the same shall become immediately due and payable by the Tenant, such present value to be calculated in accordance with Section 7 . 02; (2) the City may, but shall not be required to, terminate this Lease, exclude the Tenant from possession of the Science Center; or (3) the City may require the Tenant to furnish copies of all books and records of the Tenant pertaining to the Lease; or (4) the City may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any obligation, agreement or covenant of the Tenant under this Lease, excluding the payment of basic rent . Section 8 . 03 . Manner of Exercise. Except as otherwise provided in Section 3 . 06, no remedy herein conferred upon or reserved to the City is intended to be exclusive of, any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease or now or hereafter existing at law or in equity by statute. No delay or omission to exercise any 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 as often as may be deemed expedient. In order to entitle the City to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than such notice as may be herein expressly required. Section 8 . 04 . Effect of Waiver. In the event any agreement contained in this Lease should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. Section 8 . 05 . Waiver of Stav or Extension. The Tenant covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatso- ever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Lease; and the Tenant (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the City but will suffer 295832.4 2 2 , a�- �3-�� and permit the execution of every such power as though no such law had been enacted. 295832.4 2 3 . . ��- i3�� ARTICLE 9 General Section 9 . 01 . Notices . All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given two (2) days after they are deposited in the United States mail in registered form postage fully prepaid, with proper address as indicated below. The City and the Tenant may, by written notice given by each to the other, designate any address or addresses to which notices, certificates or other communications to them shall be sent when required as contemplated by this Lease. Until otherwise provided by the respective parties, all notices, certificates and communications to each of them shall be addressed as follows : To the City: City of St . Paul City Hall St . Paul, Minnesota 55101 Attn: Director, Department of Finance and Management Services To the Tenant : Science Museum of Minnesota 30 East Tenth Street St . Paul, Minnesota 55101 Attn: President Section 9 . 02 . Binding Effect . This Lease shall inure to the benefit of and shall be binding upon the City and the Tenant and their respective successors and assigns . Section 9 . 03 . Severability. In the event any provision of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof . Section 9 . 04 . Execution Co,i}nterparts . This Lease may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument . Section 9 . 05 . Prior Leases Superseded. This Lease supersedes all prior leases between the parties with respect to the Science Center, including the Lease, dated as of June 15, 1978 and July 15, 1984, between the City and the Tenant, which is hereby terminated effective as of the date of this Lease, and 295832.4 2 4 � � _ � � �(�- � �-�� shall no longer be of any force and effect from and after that date. Section 9 . 06 . Exercise of City Powers . No provision of this Lease is intended to or shall have the effect of restricting the lawful exercise by the City of any of the powers conferred upon it by its Charter or state law, including the power to levy special assessments for local improvements . IN WITNESS WHEREOF, the City and the Tenant have caused this Lease to be executed in their respective corporate names and attested by their duly authorized officers, all as of the date first above written. CITY OF ST. PAUL, MINNESOTA By , Its Mayor By Director, Department of Planning and Economic Development By Its Clerk And Its Director of Department Form Approved: of Finance and Management Services Assistant City Attorney 295832.4 2 5 `�(�" (3� THE SCIENCE MUSEUM OF MINNESOTA By Its BY Its 295832.4 2 6 ' � . � � —I 3�c� STATE OF MINNESOTA ) ) SS . COUNTS OF RAMSEY ) On this day of , 1996, before me, a notary public in and for said county and state, personally appeared and , to me personally known and known to me to be the same persons who executed the within and foregoing instrument, who, being by me duly sworn, did depose, acknowledge and say: that they are the and of the Science Museum of Minnesota, the corporation described in and which executed the foregoing instrument; that he knows the seal of said corporation, and they acknowledged the execution of said instrument to be the voluntary act and deed of said corporation by it voluntarily executed. IN WITNESS WHEREOF, I have hereunto set my hand and official seal this day of , 1996 . Notary Public My commission expires , 199 295832.4 2 8 , . � � ��_ � 3-�� EXHIBIT A Leaal Descrintion of Science Center Air Rights Parcel : All that certain parcel or parcels of land in the City of Saint Paul, County of Ramsey, State of Minnesota, more particularly described as follows : Tract 1 : (Abstract) All of the property lying above a plane surface at an elevation 103 .5 feet, City of Saint Paul Datum (elevation 0 .0 City of Saint Paul Datum equals 694 . 10 U.S . Coast and Geodetic Mean Sea Level Datum of 1929) legally described as follows : The Northeasterly one hundred five and eight hundredths (105 . 08) feet of Lots one (1) , two (2) , three (3) , ten (10) , eleven (11) and twelve (12) , Block five (5) , Bazil and Guerin' s Addition to Saint Paul, according to the plat thereof on file and of record in the office of the Register of Deeds in and for said County and State, except therefrom the following described Registered Property: Tracts "A�� and "G" , Registered Land Survey No. 328 . Tract 2 : (Torrens) All of the property lying above a plane surface at an elevation 103 .5 feet, City of Saint Paul Datum (elevation 0 . 0 City of Saint Paul Datum equals 694 . 10 U.S . Coast and Geodetic Mean Sea Level Datum of 1929) legally described as follows : Tracts "A and "G" , Registered Land Survey No. 328 . Together with and subject to the rights and obligations of support and access conveyed by that certain easement agreement dated as of July 1, 1978 between the City of Saint Paul and The Science Museum of Minnesota. 295832.4 � �,, ( / � �J �'1ST ' r� ' L�n-c._ 71 � l� ��°� �� L� �-13�(� LEASE BETWEEN CITY OF SAINT PAUL, MINNESOTA, as Lessor, . AND - � THE SCIENCE MUSEUM OF MINNESOTA, as Tenant � , 1996 THIS DOCUMENT WAS DRAFTED BY: t_ Briggs and Morgan, Professional Association (MNID) 2200 West First National Bank Building St . Paul, Minnesota 55102 (612) 223-6600 295832.3 � � , Q�- 13�1� � TABLE OF CONTENTS (Not a part of this Lease) PaQe PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 AR.TICLE I - Definitions and Exhibits . . . . . . . . . . . . 1 Section 1 .01 . Definitions . . . . . . . . . . . . . . . 1 Section 1 .02 . Exhibit . . . . . . . . . . . . . . . . . 3 ARTICLE 2 - Representations of Parties . . . . . . . . . . . 4 Section 2 .01 . Representations by the City . . . . . . . 4 Section 2 .02 . Representations by Tenant . . . . . . . . 4 AR.TICLE 3 - Lease and Rentals . . . . . . . . . . . . . . . . 6 Section 3 . 01 . Lease . . . . . . . . . . . . . . . . . . 6 Section 3 .02 . Basic Rent . . . . . . . . . . . . . . 6 Section 3 .03 . Additional Rent . . . . . . . . . . . . . 6 Section 3 .04 . Tenant' s Obligations Unconditional . . . 7 Section 3 .05 . Tenant' s Remedies . . . . . . . . . . . . 7 Section 3 . 06 . Non Recourse . . . . . . . . . . . . . . 7 ARTICLE 4 - Use and Maintenance, Modifications, Taxes and Insurance . . . . . . . . . . . . . . . . . . . . . 9 Section 4 . 01 . Use and Maintenance . . . . . . . . . . . 9 Section 4 . 02 . No Obligation of City to Pay For Operation and Maintenance of Science Center . . . . . . . . . . . . . . . . . 9 . Section 4 . 03 . Modifications . . . . . . . . . . . . . . 9 Section 4 . 04 . Liens . . . . . . . . . . . . . . . . . . 10 Section 4 . 05 . Removal of Leased Equipment . . . . . . 10 Section 4 . 06 . Taxes and Other Governmental Charges and Utility Charges . . . . . . . . . . . . . 10 Section 4 .07 . Liability Insurance . . . . . . . . . . 10 Section 4 .08 . Property Insurance . . . . . . . . . . . 11 Section 4 . 09 . Other Insurance and Requirements for All Insurance . . . . . . . . . . . . . . . . 11 Section 4 . 10 . Advances . . . . . . . . . . . . . . . z-. 12 Section 4 . 11 . Installation of Tenant' s Equipment . . . 12 ARTICLE 5 - Damage, Destruction and Condemnation . . . . . . 13 Section 5 . 01 . Damage and Destruction . . . . . . . . . 13 Section 5 .02 . Condemnation . . . . . . . . . . . . . . 14 ARTICLE 6 - Tenant ' s Covenants . . . . . . . . . . . . . . . 16 Section 6 .01 . Inspection and Access . . . . . . . . . . 16 Section 6 . 02 . Books and Records; Audit . . . . . . . . 16 Section 6 . 03 . Indemnity . . . . . . . . . . . . . . . . 16 295832.3 , , �jt�-�3�1� Section 6 .04 . Continuing Existence and Qualification . 17 Section 6 .05 . Surrender of Project . . . . . . . . . 17 Section 6 .06 . Statement of Compliance . . . . . . . . . 17 ARTICLE 7 - Tenant ' s and City' s Options . . . . . . . . . . 18 Section 7 . 01. Assignment and Sublease . . . . . . . . . 18 Section 7 . 02 . Prepayment of Rents . . . . . . . . . . . 18 Section 7 . 03 . Abatement of Basic Rent . . . . . . . . . 18 Section 7 . 04 . Termination . . . . . . . . . . . . . . . 18 Section 7 . 05 . Renewal of Lease . . . . . . . . . . . 19 Section 7 . 06 . Transfer of Title . . . . . . . . . . . . 19 ARTICLE 8 - Events of Default and Remedies . . . . . . . . . 20 Section 8 .01 . Events of Default . . . . . . . . . . . . 20 Section 8 . 02 . City Remedies . . . . . . . . . . . . . . 20 Section 8 . 03 . Manner of Exercise . . . . . . . . . . . 21 Section 8 . 04 . Attorneys' Fees and Expenses . . . . . . 21 Section 8 . 05 . Effect of Waiver . . . . . . . . . . . . 21 Section 8 .06 . Waiver of Stay or Extension . . . . . . . 21 ARTICLE 9 - General . . . . . . . . . . . . . . . . . . . . . 23 Section 9 . 01. Notices . . . . . . . . . . . . . . . . . 23 Section 9 . 02 . Binding Effect . . . . . . . . . . . . . 23 Section 9 .03 . Severability . . . . . . . . . . . . . . �3 Section 9 .04 . Execution Counterparts . . . . . . . . . 23 Section 9 .05 . Prior Leases Superseded . . . . . . . . 23 Section 9 .06 . Exercise of City Powers . . . . . . . . . 24 Section 9 . 07 . Amendments, Etc. . . . . . . . . . . . . 24 SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . 24-25 • ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . 2 6-2 7 EXHIBIT A - Legal Description of Science Center Air Rights Parcel z_ 295832.3 , � 1 � �t�-�3�� THIS LEASE dated as of , 1996, between the CITY OF SAINT PAUL, a Minnesota municipal corporation, called herein the City, and the Science Museum of Minnesota, a Minnesota non-profit corporation, called herein the Tenant, WITNESSETH that the City demises and leases to the Tenant, and the Tenant leases from the City, the Science Center herein described, for a term commencing as of the date of this Lease and extending through , 2015 (the "Lease Term") , unless sooner terminated as herein provided and at the rentals and upon the further terms and conditions herein set forth; and that the City and the Tenant, each in consideration of the representations, covenants and agreements of the other as set forth herein, mutually represent, covenant and agree as follows : ARTICLE I Definitions and Exhibits Section 1 . 01. Definitions. Development Agreement : the Development Agreement dated as of , 1996 by and between the City and the Tenant; Fiscal Year: the twelve (12) month period beginning on ' January 1 of each year and ending on December 31 of the same year; Gross Revenues : all operating revenues or other amounts received by the Tenant from the Science Center, including but not limited to, all ticket sales, user fees, any rent pursuant to a . sublease of the Science Center, and any net proceeds from business interruption insurance;. Lease: this Lease, dated as of , 1996, including any amendment hereof or supplement hereto; Net Proceeds : with respect to any insurance payment or condemnation award, the gross proceeds remaining therefrom after payment of all expenses incurred in the collection thereof; L. *Permitted Encumbrances : this Lease and, as of any particular time, (A) liens for taxes and special assessments not it then delinquent; '`Revise? 295832.3 i � 9�- i3�� (B) utility, access and other easements and rights-of-way, restrictions and exceptions that an independent engineer certifies will not interfere with or impair the operation of the Science Center (or, if it is not being operated, the operations for which it was designed or last modified) ; (C) any mechanic' s, laborer' s, materialman' s, supplier' s or vendor' s lien or right in respect thereof if payment is not yet due under the contract in question; (D) the security interest of Imax Entertainment Limited under its contract with the Tenant dated February 28, 1976 relating to the furnishing of certain equipment for the Science Center; (E) the security interest of Spitz Space Systems, Inc. under its contracts with the Tenant dated May 1, 1976 and relating to the furnishing of certain equipment for the Science Center; (F) the Reciprocal Agreement; Reciprocal Agreement : that certain Agreement, dated July 3i, 1979, among Fountain Development Company, Twenty Broad Street Leasing Company, Incorporated, the Tenant, the City and the Housing and Redevelopment Authority of the City of Saint Paul, Minnesota, including any amendments thereof; Science Center: • (A) the real property, easements and other rights described in Exhibit A, (B) the building, fixtures [and equipment] now located on such real property, except property installed by the Tenant pursuant to Sect . 4 . 11 hereof and tagged or otherwise identified as property of the Tenant not included in the Science Center. 1_ (C) all other building improvements, fixtures [and equipment] , which may from time to time be added to the Science Center, and (D) all additions to and substitutions for any of the foregoing which may be made as permitted or required by this Lea�se, except that any of the foregoing which may be released or taken by eminent domain as authorized or contemplated by this Lease shall no longer constitute a part of such Science Center; 295832.3 2 � r Q�-" ► � a e: the State of Minnesota. Section 1. 02 . Exhibit . The following Exhibit is attached to and by reference made a part of this Lease: Exhibit A: legal description of the real property upon which the Science Center is located and the other real and personal property comprising the Science Center as of the date hereof . z_ 295832.3 3 � - ►3�� ARTICLE 2 Representations of Parties Section 2 . 01 . Representations by the City. The City makes the following representations as the basis for its covenants herein: (1) The City has accepted the conveyance by Twenty Broad Street Leasing Company, Incorporated, of the Science Center, subject to Permitted Encumbrances, but the City makes no representations or warranties with respect to its title thereto; (2) The City has, contemporaneously herewith, entered into the Development Agreement with the Tenant; (3) The City will not, during the term of this Lease and so long as Tenant is not in default hereunder; take any actions to disturb the Tenant' s quiet possession and enjoyment of the Science Center; (4) The City is authorized by Minnesota Statutes, Sections ' 471 .15 through 471 . 191 and the City Charter to take all actions described in this Section 2 . 01 and to enter into this Lease, and the City' s governing body has authorized all such actions in accordance with law. Section 2 .02 . Representations by Tenant . The Tenant herein makes the following representations as the basis for its covenants herein: (1) The Tenant is a non-profit corporation duly organized, existing and in good standing under the laws of the State of Minnesota, has power to enter into this Lease, and by proper corporate action has authorized the execution and delivery of this Lease; (2) The Tenant is an exempt organization within the m�aning of Section 501 (c) (3) of the United States Internal Revenue Code, not subject to taxation under Section 501 (a) of the Code, and will not, during the term of this Lease, engage in any activity which would cause it to lose its status as an exempt � organization; (3) The execution and delivery of this Lease, the consummation of the transactions contemplated hereby, and the fulfillment of the terms and conditions hereof do not and will not conflict with or result in a breach of any of the terms or 295832.3 4 i , ��,- 13�� conditions of any corporate restriction or of any agreement or instrument to which the Tenant is now a party, and do not and will not constitute a default under any of the foregoing, or result in the creation or imposition of any lien, charge or encumbrance of any nature upon any of the property or assets of the Tenant contrary to the terms of any instrument or agreement; (4) The Tenant does not rely on any warranty of the City, either express or implied; (5) The Tenant will not, in the operation of the Science Center, violate any provision of federal or State law, or any provision of the City Charter and the ordinances adopted thereunder; and z_ 295832.3 5 ' ' G�(�- �3�1� ARTICLE 3 Lease and Rentals Section 3 .01 . Lease. The City hereby leases to the Tenant, its successors and assigns, and the Tenant hereby leases from the City, the Science Center described in the attached Exhibit A, subject to Permitted Encumbrances, for the purposes specified in Section 2 . 02, for a term commencing on March 15, 1997 and continuing through March 15, 2020 unless previously terminated or extended as hereinafter provided. Section 3 . 02 . Basic Rent . Subject to the right of prepayment granted in Section 7 . 02 hereof, the Tenant agrees to pay (i) on or before each March 1 of each year commencing March 1, 1997 through and including March 1, 2000, the sum of $1 . 00 per year and (ii) commencing on March 1, 2001, and on March 1 of each year thereafter through and including March 1, 2020, as basic rent for the Science Center, the greater of $250, 000 per year or 10% of the gross revenues derived from the Science Center. The basic rent shall be paid by the Tenant directly to the City at the address set forth in Section 9 . 01 hereof . This Lease is a net lease, and the City shall be under no obligation to the Tenant to operate, maintain, replace or improve the Science � Center or pay the cost thereof, but shall be entitled to receive the basic rent hereunder on an absolute net basis, and such rent shall not be subject to reduction or abatement except as provided in Section 7 . 03 . Section 3 . 03 . Additional Rent . � The Tenant agrees to pay the following items to the following persons as additional rent under this Lease: (1) to the County Treasurer of Ramsey County, and to any other governmental official authorized by law to collect any ad valorem taxes or special assessments levied on the Science Center or on the privilege of using the same, the full amount of all such taxes and special assessments due and payable during the term of this Lease, if any, it being understood that under t;he --- provisions of Minnesota Statutes, Section 471 .191, Subdivision 4, the Science Center is exempt from ad valorem taxation so long as devoted to the public purposes provided in Section 2 . 02 and is not leased or subleased to any private individual, association or corporation for use in a business conducted for profit; (2) to each public or private person, firm or corporation furnishing utility service for the Science Center, when due and payable during the term of this Lease, all fees, charges and rentals for such service; 295832.3 6 � � . � - �3�� (3) to the City, all reasonable out-of-pocket expenses incurred by it in relation to this Lease which are not otherwise required to be paid by the Tenant under the terms of this Lease; (4) to the City the amount of all advances of .funds made by it under the provisions of Section 4 .10, with interest thereon from the date of each advance at the rate of 10 . 00s per annum. The Tenant represents and agrees that the provisions of Minnesota Statutes, Section 471 .191, Subdivision 1, authorizing non-profit corporations to off-set the amount of any ad valorem taxes and special assessments levied on any land, building or facilities leased by the non-profit corporation pursuant to said Subdivision 1, are not applicable to this Lease, and that the Tenant waives any rights it may have to obtain such an off-set against the rentals due under this Lease or to any reimbursement from the City of any taxes and special assessments paid with respect to the Science Center. Section 3 . 04 . Tenant ' s Obliaations Unconditional . All basic and additional rent and all other payments required of the Tenant hereunder shall be paid without notice or demand and without setoff, counterclaim, abatement, deduction or defense except as provided in Section 7 . 03 . ' Section 3 . 05 . Tenant' s Remedies . Nothing contained in this Section shall be construed to release the City from the performance of any of its agreements in this Lease or the Reciprocal Agreement, and if the City should fail to perform any such agreement, the Tenant may institute such action against the . City as the Tenant may deem necessary to compel the performance, so long as such action shall not violate the Tenant ' s agreements in Sections 3 . 02 and 3 .03 . The Tenant may at its own cost and expense, and in its own name or in the name of the City, prosecute or defend any action or proceeding against third parties or take any other action which the Tenant deems reasonably necessary in order to secure or protect its right of possession, occupancy and use of the Science Center under this Lease. In this event the City agrees to cooperate fully with the Tenant, and to take all action necessary to effect the L- substitution of the Tenant for the City in any such action or proceeding if the Tenant shall so request . The Tenant agrees to indemnify and hold the City harmless against any and all costs, expenses, claims and damages of any nature, incurred by it as a result of any legal action taken by the Tenant with respect to any third party, prior to commencing any such legal action. Section 3 . 06 . Non Recourse. It is recognized by the City and the Tenant that this Lease is not intended to create any personal liability for the "debt'� herein created on account of 295832.3 7 � , �1�� �3�� the obligation of the Tenant to pay Basic Rent or for the performance of any obligation imposed on the Tenant herein, with the exception of any obligations contained herein which are not, either directly or indirectly, obligations attributable to the obligation to pay basic rent . Therefore, notwithstanding any other provision in this Lease to the contrary, neither the Tenant nor individuals signing this agreement on behalf of the Tenant nor any other officer or director of the Tenant, its permitted successors or assigns, shall be personally liable or responsible either directly or indirectly for the payment of basic rent, other than the above qualified obligations. If an Event .of Default should occur in the making of such payments of basic rent, the City' s remedies shall be limited accordingly. Notwithstanding the provisions of the foregoing paragraph, nothing in this Lease shall be construed to relieve the Tenant from liability on account of any of the following; fraud; waste with respect to the Science Center; conversion of assets constituting assets of the Science Center to the use or benefit of the Tenant; or usurpation of the proceeds of any condemnation award or insurance claim payment in violation of the terms of this Lease. L_ 295832.3 8 ' � ql�- �3�� ARTICLE 4 Use and Maintenance, Modifications, Taxes and Insurance Section 4 . 01. Use and Maintenance. During the Lease term the Tenant will utilize the Science Center for any lawful purpose (including subleasing) with the prior written approval of the City, which approval shall not be unreasonably withheld. The Tenant, will at its own expense, complete and keep the Science Center and all parts thereof in good repair and good operating condition and in as safe condition as its operations will reasonably permit, making all ordinary repairs, replacements and substitutions thereof which may be necessary for this purpose; and will comply with all laws, rules, regulations and ordinances applicable ta the possession, use and operation of the Science Center. Section 4 . 02 . No Obligation of City to Pay For Operation and Maintenance of Science Center. The Tenant represents and agrees that the City is not required under the provisions of Minnesota Statutes, Section 471.191, Subdivision 3, to provide in its annual budget for any deficiency in revenues of the Tenant . available to pay costs of operation and maintenance of the Science Center; and the Tenant hereby waives any rights it may have to require the City to provide for any such deficiency. If the moneys of the Tenant available for the payment of such costs are less than the amount of such costs to be paid by the Tenant, or if for any reasori such costs are not paid by the Tenant, or if any person commences a legal action against the City seeking to • require it to pay or provide in its budget for the payment of all or any part of such costs, the City may declare the Tenant to be in default hereunder and the City shall be authorized to exercise all or any of the remedies available to it under Section 8 .02 . The Tenant also agrees to indemnify and hold the City harmless from any and all costs, expenses, claims, damages and expendi- tures of any nature incurred by it in defending any such legal action or in complying with the order of any court issued as a result thereof . L. Section 4 . 03 . Modifications . The Tenant may from time to time make any additions, modifications or improvements to the Science Center, located wholly within the Science Center site or easements described in Exhibit A, that it may deem desirable for the purposes described in Section 4 . 01 and that do not adversely affect the structural integrity of the Science Center or any part of it . All additions, modifications and improvements made by the Tenant shall become a part of the Science Center subject to the provisions of this Lease . 295832.3 9 l � ��_� J�W Section 4 . 04 . Liens . The Tenant will not permit any encumbrance or lien to be filed or established or to remain against the Science Center for labor or materials furnished in connection with any additions, modifications, improvements, repairs, renewals or replacements made by it, except Permitted Encumbrances; provided, it may in good faith contest any encumbrance or lien filed or established and in such event may permit the items contested to remain undischarged and unsatisfied during the period of such contest and any appeal therefrom. The City will cooperate fully with the Tenant in any such contest, provided that the Tenant shall undertake to pay all costs and expenses incurred by the City and to indemnify the City and save it harmless against any risks, claims or liabilities arising out of such contest . Section 4 .05 . Removal of Leased Equipment . The Tenant shall not remove or permit the removal of any equipment or other property comprising part of the Science Center except in accordance with the provisions of this Section. In any instance where the Tenant in its sound discretion determines that any item of such equipment or other property has become inadequate, obsolete, worn out or unsuitable for the operation of or use in the Science Center, the Tenant may remove it, with or without , substitution or installation of other equivalent equipment . The Tenant shall pay all costs of such removal and substitution, and shall repair all damage to the Science Center resulting therefrom. All substitute equipment shall become part of the Science Center and subject to the provisions of this Lease. Section 4 .06 . Taxes and Other Governmental Charges and • Utility Charges . The Tenant will make promptly all the term of this Lease of ad valorem taxes lawfully levied upon or with respect to the Science Center or its use, if any; of other charges lawfully made by any governmental body for public improvements that may be or become secured by a lien on the Science Center; and of utility and other charges incurred in the operation, maintenance, use, occupancy, and upkeep of the Science Center; including but not limited to taxes or service charges on any property of the Tenant brought in or upon the Science Center, sales and other excise taxes on products thereof, and any taxes levied upon or with respect to income or profits from the Science Center which, if not paid, might become a lien thereon. The Tenant may, at its own expense, in good faith contest any such taxes or service charges and, in the event of such contest, may permit the items so contested to remain unpaid during the period of the contest and any appeal therefrom. Section 4 .07 . Liability Insurance. The Tenant will procure and maintain continuously in effect during the term of the Lease insurance against liability for injuries to or death of any 295832.3 1 0 � �(�� ���4 person or damage to or loss of property arising out of or in any way relating to the condition or its operation of the Science Center or any part thereof, in the minimum amounts of $1, 000, 000 for death of or personal injury to any one person, $2, 000, 000 for all personal injuries and deaths arising out of any one occurrence, and $300, 000 for property damage arising out of any one occurrence, and will cause all contractors to maintain insurance of similar kinds and amounts against all similar liabilities on their part . The Net Proceeds of all such insurance shall be applied toward extinguishment or satisfaction of the liability with respect to which the insurance proceeds may be paid. It is understood that in accordance with the provisions of Minnesota Statutes, Section 466 .06, this insurance covers any and all liability of the City and its officers, employees and agents, and the procurement thereof constitutes a waiver of the defense of governmental immunity to the extent of the liability stated in the policy but has no effect on the liability of the City beyond the coverage so provided. Section 4 .08 . Property Insurance. The Tenant will procure and maintain continuously in effect during the term of the Lease, to the extent of the full insurable value of the Science Center, other than building foundations, insurance against loss from or, damage by vandalism and fire, with a uniform standard extended coverage endorsement limited only as may be provided in the standard form of extended coverage endorsement at the time in use in Minnesota, in such amount as will be at least sufficient so that a claim may be made for the full replacement cost of any part thereof damaged or destroyed. In time of war in which the United States of America is a belligerent, the City will procure � and maintain continuously in effect such insurance as may be available from the United States of America, to the extent of the full insurable value of the Science Center and insuring against loss thereof or damage thereto from the risks and hazards of war, if , such insurance is then generally carried by owners of similar facilities in Minnesota. All policies evidencing insurance required in this Section shall be carried in the names of the City and the Tenant as their respective interests may appear. Each policy may be written with a deductible amount of $5, 000 . The Net Proceeds of insurance required by this Section shall be applied as provided in Section 5 . 01 . Section 4 . 09 . Other Insurance and Requirements for All Insurance . The Tenant will also procure and maintain continuously in effect during the term of this Lease such other insurance as is customarily carried by persons or organizations engaging in the operation of public facilities similar to the Science Center. Al1 insurance policies required by this Article shall be taken out and maintained with responsible insurance companies organized under the laws of one of the states of the 295832.3 1 1 � � 9(�- ���4 United States and qualified to do business in the State; shall contain a provision that the insurer shall not cancel or revise coverage thereunder without giving written notice to both parties at least ten (10) days before the cancellation or revision becomes effective; and shall name the Tenant and the City as an insured. The Tenant shall deposit with the City policies evidencing any such insurance procured by it, or a certificate or certificates of the respective insurers stating that such insurance is in force and effect . Before the expiration of any such policy, the Tenant shall furnish to the City evidence that the policy has been renewed or replaced by another policy conforming to the provisions of this Article, unless such insurance is no longer obtainable in which event the Tenant shall notify the City of this fact . . Section 4 .10 . Advances . If the Tenant shall fail to make all repairs, pay all liens, taxes and service charges and maintain all insurance required in this Article, the City may, but shall not be obligated to, take such action as may be necessary to cure such failure, including the advancement of money, and the Tenant shall be obligated to repay all such advances on demand, with interest from the date of the advance to the date of repayment at the rate of 10o per annum. , Section 4 . 11 . Installation of Tenant ' s Equipment. The Tenant may at any time and from time to time, in its sole discretion and at its own expense, install items of movable machinery and equipment in or upon the Science Center which items shall be identified by tags or other symbols affixed thereto as property of the Tenant not included in the Science Center. All • such items so identified shall remain the sole property of the Tenant, in which the City shall have no interest, and may be modified or removed by the Tenant at any time while it is not in default hereunder, provided that the Tenant shall repair and• restore any and all damage to the Science Center resulting from the installation, modification or removal of any such items . Nothing in this Lease shall prevent the Tenant from purchasing items to be installed pursuant to this Section under a conditional sale or lease-purchase contract, or subject to a vendor' s lien or security agreement, as security for the unpaid portion of the purchase price thereof, provided that no such lien or security interest shall attach to any other part of the Science Center. The Tenant shall promptly pay when due the purchase price and all costs and expenses of the acquisition and installation of each item installed by it pursuant to this Section. 295832.3 1 2 . Q�- ►��� ARTICLE 5 Damage, Destruction and Condemnation Section 5 .01 . Damage and Destruction (a) If the Science Center is partially destroyed or is damaged by fire or other casualty, to such extent that the claim for loss resulting therefrom is not greater than $50, 000, the Tenant will promptly repair, rebuild and restore the property damaged or destroyed to substantially the same condition as existed before the event causing the damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Tenant and as will not impair the operating unity, productive capacity or value of the Science Center, and will be suitable for continued operation of the Science Center for the purposes specified in this Lease. The Tenant will pay all costs thereof and shall be entitled to receive all proceeds of insurance if any, paid in respect of such claim. (b) If the Science Center is destroyed in whole or in part or is damaged by fire or other casualty to such extent that the claim for loss resulting therefrom exceeds $50, 000, the Tenant shall promptly give written notice thereof to the City. The City or the Tenant, as determined by the City within 90 days of the loss, shall proceed within a period of three years from date of damage, in accordance with applicable public bidding laws, to repair, rebuild and restore the property damaged or destroyed to substantially the same condition as existed before • the event causing the damage or destruction, with such changes, alterations and modifications (including the substitution and addition of other property) as may be desired by the Tenant and will be suitable for continued operation of the Science Center for the purposes specified in this Lease. Before the work is undertaken the City or the Tenant, as the case may be, shall cause plans and specifications therefor to be prepared and reviewed by the other, and shall apply so much as may be necessary of the insurance proceeds received for the damage by it to payment of the costs of such repair, rebuilding or `� restoration, including the restoration or replacement of exhibits . If the insurance proceeds are not sufficient to pay such costs in full, the Tenant, if required by the City, shall pay that portion of the cost thereof in excess of the amount of the proceeds . Any balance of insurance proceeds remaining after payment of all costs of any repair, rebuilding or restoration, including the restoration or replacement of exhibits shall be applied to the payment of the next basic rental payment due under Section 3 . 02 . 295832.3 1 3 � , ��-13�� (c) Notwithstanding the provisions of paragraphs (a) and (b) , if the Science Center is destroyed in whole or in part so as to make the Science Center in the opinion of Tenant unsuitable for the use for which it is intended, and if the amount of any insurance proceeds will be sufficient to discharge all obligations of the Tenant under this Lease, the Tenant may request the City to use the insurance proceeds to discharge its obligations under this Lease. Section 5 . 02 . Condemnation. . (a) If the Science Center or any part thereof is taken by eminent domain by any governmental body or by any person, firm or corporation acting under governmental authority, the award for the interests of the City and the Tenant made in such proceedings shall be applied in one or more of the ways described in this Section 5 .02 . (b) The City or the Tenant, as determined by the City, shall promptly, so far as possible and in accordance with applicable public bidding laws, repair, rebuild and restore the Science Center and all parts thereof to substantially the same condition as existed before the taking, with such changes, alterations and modifications (including the substitution and ' addition of other property) as may be desired by the Tenant and will be suitable for continued operation of the Science Center for the purposes specified in this Lease. So far as possible the City will acquire such adjacent land in lieu of that taken as may be needed for such restoration and requested in writing by the Tenant. So much of the award as may be necessary shall be . applied to the payment of the cost of acquisition of the land. Before the work of restoration is undertaken, the City or the Tenant, as the case may be, shall cause plans and specifications to be prepared and reviewed by the other. So much of the award as may be necessary shall be applied to the payment of the costs of such restoration, including restoration or replacement of exhibits . If the award is not sufficient to pay such costs in full, including the cost of any additional land required, the Tenant, if required by the City, shall pay that portion of the cost in excess of the amount of the award. L- (c) Al1 land, buildings, improvements and equipment acquired in the restoration of the Science Center shall be deemed a part thereof and available for use and occupancy by the Tenant without the payment of any rents other than those provided in Article 3, to the same extent as if they had been specifically described and demised in this Lease; provided that if the City issues any obligations to finance improvements or restoration required by Sections 5 . 01 or 5 . 02 the Tenant will enter into a supplemental lease providing for the payment of additional rent 295832.3 1 4 � , _I�_���� sufficient to pay the principal of and interest on said obligations . (d) If any balance of the award shall remain after restoration of the Science Center, including restoration or replacement of exhibits in accordance with the plans and specificatians, such balance shall be applied to the payment of the next basic rental payment due under Section 3 . 02 . (e) The City will cooperate fully with the Tenant in the handling and conduct of any prospective or pending condemnation proceedings affecting the Science Center or any part thereof and will, to the extent it may lawfully do so, permit the Tenant to litigate in any such proceeding in the name and on behalf of the City. In no event will the City voluntarily settle or consent to the settlement of any such condemnation proceeding without the written consent of the Tenant. The Tenant agrees to indemnify and hold the City harmless against any and all costs, expenses, claims and damages of any nature incurred by it as a result of any such litigation prior to commencing the same. (f) The proceeds of any condemnation award made for damages on account of the interference with Tenant' s rights under this Lease or Tenant ' s business shall be the property of the � Tenant . (g) Notwithstanding the provisions of paragraphs (a) through (f) , if due to the taking in condemnation the Science Center is in the Tenant ' s opinion unsuitable for the use for which it is intended, and if the proceeds of the condemnation • award will be sufficient to discharge all obligations of the Tenant under this Lease, upon request by the Tenant the City shall use the proceeds of the condemnation award to discharge the Tenant' s obligations under this Lease. z_ 295832.3 1 5 t � �- I��11� ARTICLE 6 Tenant � s Covenants Section 6 . 01 . Inspection and Access . The Tenant agrees that the City and their duly authorized agents shall have the right at all reasonable times to examine and inspect the Science Center and for that purpose to enter upon the Science Center. Section 6 .02 . Books and Records: Audit . The Tenant covenants and agrees that it will keep complete and accurate books and records reflecting all of its financial transactions, that it will annually cause such books and records to be audited by a certified public accounting firm, and that it will provide the City with a copy of the audit report of such firm within 120 days after the close of its fiscal year, which audit shall be accompanied by a statement of the auditing firm that nothing has come to their attention during the preparation of the audit which would constitute an Event of Default under this Lease. Section 6 . 03 . Indemnitv. The Tenant will pay, and will protect, indemnify and save the City and the Trustee harmless from and against all liabilities, losses, damages, costs, ' expenses (including attorneys ' fees and expenses) , causes of action, suits, claims, demands and judgments of any nature arising from: (1) any injury to or death of any person or damage to property in or upon the Science Center or growing out of or . connected with the use, non-use, condition or occupancy of the Science Center or a part thereof, including losses caused by the negligence of the City, its agents or contractors, but not any negligence arising from the use, non-use, condition or occupancy of the parking ramp beneath the Science Center, and the ramp elevators; (2) violation of any agreement or condition of this Lease by the Tenant; L_ (3) violation of any contract, agreement or restriction of the Tenant which shall have existed at the commencement of the term of this Lease or shall have been approved by the Tenant; (4) violation of any law, ordinance or regulation affecting the Science Center or a part thereof or the ownership, occupancy or use thereof, except as occasioned by the City; and. 295832.3 1 6 � , �(,e— 1�1� Section 6 . 04 . ContinuincL Existence and Oualification. The Tenant is and throughout the Lease Term will remain duly qualified to do business as a nonprofit corporation in Minnesota, will maintain its non-profit corporate existence, will not dissolve or otherwise dispose of all or substantially all of its assets, and will not consolidate with or merge into another corporation or permit any other corporation to consolidate with or merge into it unless the surviving, resulting or transferee corporation, as the case may be, if other than the Tenant, is organized under the laws of one of the United States, assumes in writing all of the obligations of the Tenant under this Lease, and has a net worth at least equal to that of the Tenant as of the date of such consolidation, merger or transfer, is an exempt organization under Section 501 (c) (3) of the Internal Revenue Code, and is duly qualified to do business in Minnesota. At least thirty days before any merger, consolidation or transfer of assets becomes effective, the Tenant shall give the City written notice of the proposed transaction. Every surviving, resulting or transferee corporation and other person referred to in this Section shall be bound by all of the covenants and agreements of the Tenant herein with respect to any further consolidation, merger, sale or transfer and shall execute an appropriate instrument assuming such covenants and agreements . , Section 6 . 05 . Surrender of Project . Except as otherwise provided in this Lease, at the expiration or earlier termination of the term hereof the Tenant will surrender possession of the Science Center to the City peaceably and promptly and in as good condition as at the commencement of the term of this Lease, loss by fire or other casualty to the extent covered by insurance and • ordinary wear, tear and obsolescence only excepted. Section 6 . 06 . Statement of Compliance. The Tenant will deliver to the City on or before February 1 of each year during the Lease term a certificate of an officer of the Tenant stating that : (a) he or she has made, or caused to be made, a review of the Tenant ' s activities during the preceding year with respect to performance under this Lease, and L� (b) to the best of his or her knowledge, based upon the results of such review, the Tenant has fulfilled all of its obligations under this Lease, or if there has been a default in the fulfillment of any obligation, specifying the nature of each such default and its status . 295832.3 1 7 � ' �`(�- ���1� ARTICLE 7 Tenant ' s and City' s Options Section 7 . 01 . Assignment and Sublease . The Tenant may assign this Lease and may sublease the Science Center in whole or in part, but only with the prior consent of the City which shall not be unreasonably withheld, and subject to each of the following conditions : (1) no assignment or sublease shall relieve the Tenant from primary liability for all rents and other payments due and for the performance of all other obligations required under his Lease; (2) any assignee of this Lease and any sublessee of all or substantially all of the Science Center shall expressly assume the obligations of the Tenant hereunder, by instrument delivered to the City; and (3) within ten (10) days after the delivery of any assignment or sublease the Tenant shall deliver to the City and the Trustee a true and complete copy thereof . , Section 7 .02 . Prepayment of Rents. The Tenant may, on any date, prepay all of the basic rent payable under Section 3 .02 for the remaining Lease Term by paying the City an amount equal to the present value of the remaining basic rent due for the remainder of the Lease Term, such present value to be calculated at the current interest rate then in effect for U.S . Treasury � Bills having a maturity most close to, but not greater than, the number of years remaining in the Lease Term. Section 7 . 03 . Abatement of Basic Rent . At any time the aggregate amount of the basic rent paid by the Tenant to the City is sufficient to discharge the Tenant' s obligation to pay Basic Rent, then the Tenant shall be entitled to use and occupy the Science Center from the date on which such basic rents are in the hands of the City until the expiration of the term of this Lease or its earlier termination under the provisions hereof, without the payment of additional basic rent, but otherwise on the terms and conditions herein set forth; provided that the abatement of future basic rent shall not relieve the Tenant from the obligation to pay basic rent past due or other amounts due hereunder. Section 7 . 04 . Termination. The Tenant may not terminate this Lease prior to the end of the initial term or any renewal term without the consent and agreement of the City. 295832.3 1 g ' ` q�-��-�� Section 7 . 05 . Renewal of Lease. Subject to the provisions of Section 7 . 06, the City shall each have the option to renew this Lease for a renewal term commencing on March 15, 2000 and ending on March 15, 2020, upon the same terms and conditions as are applicable to the initial Lease term, provided that no additional basic rent shall be paid during the renewal term unless required by an amendment to this Lease. Either party may exercise its option to renew by giving the other notice on or before January 1, 2000 of its intention to renew the Lease. Section 7 .-06 . Transfer of Title. (a) Upon payment of all Basic Rent, or at any time thereafter, the City shall, at the request of the Tenant, convey title to the Science Center to the Tenant by quitclaim deed at any time. City may convey title to the Science Center at any time by giving the Tenant 10 days notice of its intention to convey the title, specifying the date of conveyance, and by delivering to the Tenant on or after said date a quitclaim deed. The Tenant agrees to accept title to the Science Center from the City if tendered, to record the quitclaim deed received from the City, and to pay all costs and expenses incurred by the City in completing the transfer. Upon delivery of the quitclaim deed, the City shall also assign to the Tenant, and the Tenant shall accept, any other contracts or contract rights of the City in or to the Science Center. (b) The City agrees to convey its interest in the Science Center to a third party designated by SMM in connection with a sale of the Science Center if SMM pays the City an amount equal • to the present value of the Basic Rent due under Section 3 .02 hereof from the date of such sale through the scheduled term of this Lease set forth in Section 3 . 01 hereof using a discount rate equal to the "prime rate" of interest then in effect on the date of the sale. �. 295832.3 1 9 l �C�' 1�1� ARTICLE 8 Events of Default and Remedies Section 8 . 01 . Events of Default. Any one or more of the following events is an Event of Default under this Lease: (1) Default in the payment of any basic rent required by Section 3 . 02 when such basic rent becomes due and payable; or (2) If the Tenant shall fail to observe and perform any other covenant, condition or agreement on its part under this Lease for a period of thirty (30) days after written notice, specifying such default and requesting that it be remedied, given to the Tenant by the City, unless the City shall agree in writing to an extension of such time prior to its expiration, or for such longer period as may be reasonably necessary to remedy such default provided that the Tenant is proceeding with reasonable diligence to remedy the same; or (3) The entry of a decree or order for relief in respect of the Tenant by a court having jurisdiction in the premises in an , involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator (or other similar official) of the Tenant or of any substantial part of its property, or ordering the winding up or liquidation of its affairs, and the continuance of any such decree or order unstayed and in effect for a period of 60 consecutive days; or � (4) The commencement by the Tenant of a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by it to the institution of an order for relief in an involuntary case under any such law, or the consent by it to the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator (or other similar official) of the Tenant or of any substantial part of its property, or the making by it of a general assignment for the benefit of creditors, or the failure by it to pay it`s debts generally as they become due, or the taking of corporate action by the Tenant in furtherance of any such action. Section 8 . 02 . City Remedies . Whenever any Event of Default referred to in Section 8 . 01 shall have happened and be subsisting, any one or more of the following remedial steps may be taken after written notice mailed to the Tenant at least ten days prior thereto. 295832.3 2 0 � � ��� l3`1(0 (1) the City may, at its option, declare all installments of basic rent payable under Section 3 . 02 for the remainder of the term of this Lease to be immediately due and payable, whereupon the same shall become immediately due and payable by the Tenant; (2) the City may, but shall not be required to, terminate this Lease, exclude the Tenant from possession of the Science Center; or (3) the City may require the Tenant to furnish copies of all books and records of the Tenant pertaining to the Lease; or (4) the City may take whatever action at law or in equity may appear necessary or appropriate to enforce performance and observance of any obligation, agreement or covenant of the Tenant under this Lease, excluding the payment of basic rent. Section 8 .03 . Manner of Exercise. No remedy herein conferred upon or reserved to the City is intended to be exclusive of, any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease or now or hereafter existing at law or in equity by statute. No delay or , omission to exercise any 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 as often as may be deemed expedient . In order to entitle the City to exercise any remedy reserved to it in this Article, it shall not be necessary to give any notice, other than such notice as may be herein � expressly required. Section 8 . 04 . Attorneys' Fees and Expenses . In the event either party should default under any of the provisions of this Lease and the other party should employ attorneys or incur other expenses for the collection of rent or the enforcement of performance of any obligation or agreement on the part of the defaulting party, the defaulting party will on demand pay to the other party the reasonable fee of such attorneys and such other expenses so incurred. `� Section 8 . 05 . Effect of Waiver. In the event any agreement contained in this Lease should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other breach hereunder. Section 8 . 06 . Waiver of Stay or Extension. The Tenant covenants (to the extent that it may lawfully do so) that it will not at any time insist upon, or plead, or in any manner whatso- 295832.3 2 1 ��— ����e ever claim or take the benefit or advantage of, any stay or extension law wherever enacted, now or at any time hereafter in force, which may affect the covenants or the performance of this Lease; and the Tenant (to the extent that it may lawfully do so) hereby expressly waives all benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the execution of any power herein granted to the City but will suffer and permit the execution of every such power as though no such law had been enacted. L_ 295832.3 2 2 , , �,(�- 13110 ARTICLE 9 General Section 9 . 01 . Notices . All notices, certificates or other communications hereunder shall be sufficiently given and shall be deemed given when deposited in Che United States mail in regis- tered form postage fully prepaid, with proper address as indicated below. The City and the Tenant may, by written notice given by each to the other, designate any address or addresses to which notices, certificates or other communications to them shall be sent when required as contemplated by this Lease. Until otherwise provided by the respective parties, all notices, certificates and communications to each of them shall be addressed as follows : To the City: City of St. Paul City Hall St. Paul, Minnesota 55101 Attn: Director, Department of Finance and Management Services , To the Tenant : Science Museum of Minnesota 30 East Tenth Street St . Paul, Minnesota 55101 Attn: President Section 9 . 02 . Binding Effect . This Lease shall inure to the benefit of and shall be binding upon the City and the Tenant and their respective successors and assigns . Section 9 . 03 . Severabilitv. In the event any provision of this Lease shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof . Section 9 . 04 . Execution Counterparts . This Lease may ''be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument . Section 9 . 05 . Prior Leases Superseded. This Lease supersedes all prior leases between the parties with respect to the Science Center, including the Lease, dated as of June 15, 1978 and July 15, 1984, between the City and the Tenant, which is hereby terminated effective as of the date of this Lease, and 295832.3 2 3 � M �(�`13�t� shall no longer be of any force and effect from and after that date. Section 9 .06 . Exercise of City Powers . No provision of this Lease is intended to or shall have the effect of restricting the lawful exercise by the City of any of the powers conferred upon it by its Charter or state law, including the power to levy special assessments for local improvements. Section 9 . 07 . Amendments. Etc. Prior to the time that the Indenture is satisfied and discharged in accordance with its terms, this Lease may not be amended or terminated, ax any provisions hereof waived, without the written consent of the Trustee. IN WITNESS WHEREOF, the City and the Tenant have caused this Lease to be executed in their respective corporate names and attested by their duly authorized officers, all as of the date first above written. CITY OF ST. PAUL, MINNESOTA By , Its Mayor BY Director, Department of • Planning and Economic Development By Its Clerk And Its Director of DepartmentL� Form Approved: of Finance and Management Services Assistant City Attorney 295832.3 2 4 . , (� `�(�' ���lQ THE SCIENCE MUSEUM OF MINNESOTA By Its By Its x. 295832.3 2 5 I �l.l[ ` � ��W STATE OF MINNESOTA ) ) SS . COUNTS OF RAMSEY ) On this day of , 1996, before me, a notary public in and for said county and state, personally appeared , to me personally known and known to me to be the same persons who executed the within and foregoing instrument, who, being by me duly sworn, did depose, acknowledge and say: ; that they are respectively the Mayor, the Director of the Department of Finance and Management Services, and the City Clerk of the City of St . Paul, Minnesota, the incorporated municipality described in and which executed the foregoing instrument; that said instrument was signed on behalf of said City by authority of its governing body; and they acknowledged the execution of said instrument to be the voluntary act and deecl of said City by it voluntarily executed. IN WITNESS WHEREOF, I have hereunto set my hand and official seal this day of , 1996 . , Notary Public My commission expires , 199_ z- 295832.3 2 6 e . �C�- ���� STATE OF MINNESOTA ) ) SS . COUNTS OF R.AMSEY ) On this day of , 1996, before me, a notary public in and for said county and state, personally appeared and , to me personally known and known to me to be the same persons who executed the within and foregoing instrument, who, being by me duly sworn, did depose, acknowledge and say: that they are the and of the Science Museum of Minnesota, the corporation described in and which executed the foregoing instrument; that he knows the seal of said corporation, and they acknowledged the execution of said instrument to be the voluntary act and deed of said corporation by it voluntarily executed. IN WITNESS WHEREOF, I have hereunto set my hand and official seal this day of , 1996 . Notary Public � My commission expires , 199 ;. 295832.3 2 7 , � ��-� ��� EXHIBIT A LeQal Description of Science Center Air RiQhts Parcel : All that certain parcel or parcels of land in the City of Saint Paul, County of Ramsey, State of Minnesota, more particularly described as follows : Tract 1 : (Abstract) All of the property lying above a plane surface at an elevation 103 .5 feet, City of Saint Paul Datum (elevation 0 . 0 City of Saint Paul Datum equals 694 . 10 U.S . Coast and Geodetic Mean Sea Level Datum of 1929) legally described as follows : The Northeasterly one hundred five and eight hundredths (105 . 08) feet of Lots one (1) , two (2) , three (3) , ten (10) , eleven (il) and twelve (12) , Block five (5) , Bazil and Guerin' s Addition to �Saint Paul, according to the plat thereof on file and of record in the office of the Register of Deeds in and for said County and State, except therefrom the following described Registered Property: Tracts "A" and "G" , Registered Land Survey No. 328 . Tract 2 : (Torrens) All of the property lying above a plane surface at an elevation 103 .5 feet, City of Saint Paul Datum (elevation 0 .0 City of Saint Paul Datum equals 694 .10 U.S . Coast and Geodetic Mean Sea Level � Datum of 1929) legally described as follows : Tracts "A and "G" , Registered Land Survey No. 328 . Together with and subject to the rights and obligations of support and access conveyed by that certain easement agreement dated as of July 1, 1978 between the City of Saint Paul and The Science Museum of Minnesota. z. 295832.3 � - �t�-� ����. `��'l37� Q �` � o � • � � � f� Council File # ` � �� RIG11� � � � Gree� Sheet � � ✓ *, RESOLUTIO\' T F SAI:�TT PAUL, r7I\1�'ESOTA as Presented By Referred To Committee: Date 1 -. 2 RESOLUTIOI�T APPROVING AND AUTHORIZING EXECUTION OF A 4 MTHEO SC ENCE MUS'EUM OF MINNESOTA H �l�U 2� »9� S . 6 7 WHEREAS: . � s 9 l. Tl�e Scie»ce Museum of Minnesota, a Minnesota non-profit corporation ("SMM") proposes 10 to construct ne��� facilities in tl�e Riverfront Redevelopment Area of tl�e Ci[y of Saint Paul, whicl� 11 facilities «�ill include, but are not limited to, a museum of not less than 300,000 square feet and a 700 12 car parking ramp (collectively, the "Project"). 13 14 2. The Project will be one of the first major developments in tl�e Riverfront Redevelopment 15 Area, �i•ill drZ��� over 1,000,000 to 1,500,000 visitors to the City, and will have a significant employment 16 impact. 17 ]S 3. A Tlemorandum of Understanding, bet��een the SMM and the City, the fonn of which has 19 been slibmi�ted to the City Council, has been prepared ��hich sets forth, amono other thin�s, tl�e 20 obli�ation of SI�i:�1 to construct the Project and the contribution to be made by the City to the Project. 21 22 RESOLVED: �,., _� 2� 1. The City Council hereby approves and authorizes the rlayor, Director, Dep�rtment of 2� Plannin� and Economic De��elopment znd Director, Department of Finance and i��fana�ement Services to 26 execute the �lemorandum of Understandin� in substantially the form sLibmitted. In the absence of the 27 I�ia��or, Director, Department of Plannin� and Econo►nic Development and Director, Department of 2a Finance and riGna�ement Services, the Mei»orandum of Understandin� may be ezPcuted by a��d any ?9 other approp;iate officers. 30 9�-�3 �� ����-1 y'�I • 32 2. The staff is authorized to proceed with the preparation of a final Development Agreement ,33 betw�een the SMM and the City, the terms of which will be consistent with but which will supersede the 34 Memorandum of Understanding within 60 days after adoption of this Tesolution. � � Yea Navs Absent Requested by Department of: i lakev ��` � Grin,.m j uerin ��` _ Plannina & Economic Development � arris I��" i Mee�rQ � : �r(� e�tnen � � // nune ��` BY� < <;n�u''� �_ �2%�- / � I = � i Adopted by Council: Date� \.� \ S _ Fo m Ap .�ved by C' ney P.3option Certified by Council ecretary � � `�.� . / By. By� � y i�f i ,. •�� d �5�' Approv,e y Mayor fo S iss'on to Approved by yor: Date v Cou ' � � � By' BY� � ��� � . / i . �. 9�-�3 �� � MEMORANDUM OF UNDERSTANDING BETWEEN THE SCIENCE MUSEUM OF MINNESOTA AND THE CITY OF SAINT PAUL This Memorandum of Understanding (the "Agreement") is made by and between the Science Museum of Minnesota, a Minnesota non-profit corporation ("SMM") and the City of Saint Paul (the "City"), as of this 12th day of July, 1995. The purpose of this Agreement is to formalize the understandings between SMM and the City (collectively, the "Parties") in connection with the construction of certain public improvements described in Section 2D hereof (the "Upper Landing Improve- ments") and certain private improvements described in Section 3A through F hereof (the "SMM Improvements"). The Upper Landing Improvements and the SMM Improvements are hereinafter collectively refened to as the "Project". The Project is to be constructed within the area outlined on Exhibit B attached hereto (the "Development Area"), which Development Area is in the Seven Corners Renewal Area, the Riverfront Redevelopment Area, and Community Development District 17. The terms of this agreement will be consistent with but superseded by a final development agreement described in Section 20 hereof (the "Development Agreement"). The Parties mutually agree to the following terms, conditions and undertakings: SECTION 1 FINDINGS The Parties have made the following findings in connection with the Project. A. Prioritv Project. The Parties recognize that SMM's program is Minnesota's most popular indoor year-round cultural center attraction, and has regional importance to the State, the City of Saint Paul, and the surrounding community. (See Exhibit A-1 and A-2) B. Current Cam�us Conditions. SMM's program is current}y located in two buildings at Wabasha and Exchange in Downtown Saint Paul. SMM currently serves more than 800,000 people per year in buildings designed to serve 500,000. Over 150,000 children annually visit in school trips from every county in the State of Minnesota. At peak times, public spaces are severely overcrowded. Any expansion at the current site raises the following issues: 28711'.8 9�•�3�� 1. Costly renovation and inadequate room to grow because of extraordinary relocation cost of neighbors; 2. Insufficient student drop-off space; 3. Second oldest Omnitheater in the world; 4. Risks to museum collection due to fire suppression, moisture and humidity control, control and overcrowding problems; 5. Excess costs associated with being closed for two years if expansion occurred at current location; and 6. Physical restrictions which prevent programming to incorporate the Mississippi River. C. Future Campus, Patrons and Employment. Based on the limitations of the current facility and SMM's need to expand, SMM has spent significant time in the years 1992 through 1994, in defining its program and space needs for a facility to bring SMM into the 21st century. This planning has resulted in a I,ong Range Strategic Development Plan for a new SMM campus that includes site location, expansion of museum facilities, increased visitorship, additional administrative space, increased parking capacity, improved visitor access, and innovative programming that involve the Mississippi River. Based on the Long Range Strategic Development Plan, it is projected that by 200�, the future SMM campus will include or accommodate (a) 1,500,000 patrons a year, (b) 500 employees (full time equivalents), (c) 300,000 square feet of place for visitors, and (d) a 700 car parking ramp. Exhibit A-2 attached hereto contains additional details of the expansion project. D. Public Benefits of SMM to the Communitv. The SMM Improvements would provide the following benefits to the City of Saint Paul and the surrounding community: l. Ma,�or Catalyst for Riverfront Development. The SMM Improvements would be the first major project below the bluff of the Mississippi River and would provide public access to the Mississippi River from the Rice Park area. 2. Ma�net for Tourist and Local Visitors. As the leading center for informal science education in the region, the SMM Improvements will draw 1,500,000 visitors and another 500,000 through regional outreach programs. 3. Re�ional Impact. A study commissioned by SMM in 1994 indicated an annual impact of $106.5 million and 2253 jobs in terms of spin-off for the City and surrounding community. This is a significant increase from the 287117.8 2 , 9to-�371� current $55.4 million impact and 1,171 job impact currently provided by SMM operations. 4. Major Emplover. With S00 full time jobs by grand opening in 1999, SMM will be in the top one-half of one percent of downtown employers. E. Reuse of Existing Campus. The Parties recognize that the construction of the SMM Improvements will result in the need to address the reuse of SMM's existing campus as addressed in more detail in Section 5 hereof. SECTION 2 CITY UNDERTAKINGS In addition to the other undertakings of the City set forth elsewhere in this Agreement, the City agrees to undertake the following activities as set forth in this Section 2. A. Land Assemblv, Demolition and Relocation. The land described in Exhibit C-1 is hereinafter collectively referred to as the "Land". The City will acquire control of that portion of the Land identified as Parcels 1, 2 and 4 on Exhibit C-1 by December 31, 1995. Unless the Parties mutually agree to an earlier date, the City v��ill acquire control of that portion of the Land identified as Parcel 3 on Exhibit C-1 no later than September 1, 1997. The City shall have Parcel 1 cleared not later than October 1, 1996, and Parcel 3 cleared not later than March 1, 1998. Control of the Land shall be evidenced, at a minimum, by option or purchase agreements which give the City the unconditional right to acquire the land. The acquisition, demolition and relocation costs, excluding any environmental clean up costs which are addressed in Section 6 hereof, for Parcels 1, 2 and 3 shall be paid by the City. The costs of acquisition, demolition and relocation costs for Parcel 4, excluding any environmental cleanup costs which are addressed in Section 6 hereof, shall be paid equally by the City and SMM. The City's share of the costs of acquisition, demolition and relocation is estimated to be in the range of $3,500,000 to $6,700,000, including the $375,000 for environmental clean up costs described in Section 6 hereof. SMM agrees that it will use all resources reasonably available to it to enable the Land to be acquired at the lowest possible cost. B. Lease. A portion of the Land mutually acceptable to the City and SMM and sufficient to satisfy the requirements for the State Grants (as hereinafter defined) will be leased by the City to SMM. The lease between the City and SMNi (the :�,,��.8 3 , � 9� -�� �� "L.ease") will be executed prior to commencement of construction of the SMM Improvements. The Lease will include, among other things, the following provisions: a. Rent - $100 per year b. Term/Renewal - Original Term of 20 years and options for SMM to renew for 3 additional ten year terms c. Payment of Taxes and Assessment, if any by SMM d. Payment of Utilities by SMM e. Conditions relating to State Grants f. Sale of Premise g. Construction of Improvements and Repairs h. Insurance i. Indemnification j. Ownership of the Improvements at end of the L,ease k. Default l. Remedies m. Arbitration C. Citv Contribution. In return for SMM's agreement to undertake the Project, the City agrees to make a contribution to the Project of (i) $10,500,000, (less the cleanup costs paid by the City pursuant to Section 6, clause 2 hereo�, plus (ii) the City's portion of the land assembly costs set forth in Section 2A hereof, plus (iii) the portion of the environmental clean up costs to be paid by the City pursuant to Section 6 hereof, and plus (iv) the City's portion of the costs of the East Skyway Link as described in Section 22 hereof (collectively, the "City Contribution"), all upon the terms and conditions set forth in this Agreement. D. L'pper Landing Improvements. The following is a description of the Upper Landing Improvements. 1. Traffic Flow and Pedestrian Crossine. Improvements set forth on Exhibit E-2 attached hereto to ensure smouth and safe traffic flow for visitors to the SMM Improvements and Civic Center, service vehicle access routes through the Development Area, and traffic controls at the Kellogg/West Seventh/Eagle/Exchange intersections. 2. New Mississip,�i River Pedestrian Connection. Improvements to link the pedestrian access from downtown along Kellogg to the Mississippi River. This integrated pedestrian connection system will be handicapped �;1,,.a 4 . 9�-�3 �� � accessible and allow pedestrian and visitor traffic over railroads and roadways through the Development Area. 3. East Skvwav Link to Civic Center. Subject to Section 22 hereof, an all weather enclosed skyway to connect the Museum to the Civic Center. 4. Utilitv Relocation. Relocate major utilities in the De��elopment Area for safety of service and maintenance into the future, except for the NSP overhead lines which are further described in Section 15 hereof. The Parties agree that it is in their interest and the public interest to design and construct the Upper Landing Improvements in the most cost efficient manner in order to maximize the use of the available funds for Museum and exhibit development in order to attract the ma�rimum number of visitors to the SMM Improvements. In addition, because of the construction interdependencies between the Upper Landing Improvements and SMM Improvements, and the rapid design and construction schedule, the City agrees that SMM will act as agent for the City in the design and construction of certain of the Upper Landing Improvements. The final determination of design and construction responsibilities will be made before execution of the Development Agreement. As agent for the City, SMM will comply with the requirements in Section 21 hereof. The City shall designate an acceptable project manager from the Department of Public Works to work with SMM to monitor the design and construction of the L'pper I.anding Improvements. SMM shall have the right to approve the preliminary plans for any Upper Landing Improvements for which it is not the City's agent. The City will design and build such portion of the Upper Landing Improvements for which SMM is not the City's agent only to meet, but not exceed, the City's design standards, unless the Parties otheruzse agree, or the additional costs to be incuned by designing such portion of the Upper Landing Improvements above design standards are approved in a Capital Improvement Budget of the City. E. Release of Citv Contribution. The City Contribution described in Section 2C(ii) and (iu) shall be paid by the City as the costs of land assembly and environmental clean up are incurred, provided that no moneys shall be released until execution of the Development Agreement. The City Contribution described in Section 2(C)(i) and (iv) hereof shall be released as follows: 2E7117.8 S � 9� ��3�� 1. $500,000 will be released to SMM as and when needed to defray design costs for the Project; 2. $250,000 will be expended by the City to defray environmental cleanup costs of the Land as and when needed subject to Section 6 hereof; 3. The remainder will be disbursed to SMM upon satisfaction (or waiver by the City) of the following conditions: a. The Parties have executed the Development Agreement referred to in Section 20 hereof; b. The Parties have approved schematic design for the Project, the City has approved the construction drawings for the Upper Landing Improvements for which SMM is not the City's agent, SMM has approved the construction drawings for the Upper Landing Improvements for which SMM is the City's agent, the City has reviewed construction drawings for the SMM Improvements; c. SMM has received the 1994 and 1996 State Grants; d. SMM has established a fully funded construction escrow which, together with 1994 and 1996 State Grants and the City Contribution, is sufficient to design and construct the Project; e. SMM has satisfied all preconditions imposed by any and all agreements for the release, to pay costs of the Project, of all of the fully funded construction escrow for the Project; f. The Parties have executed the Lease described in Section 2(B) hereof, the West Building Lease described in Section 3(K) hereof and the Parking Agreement described in Section 3(B) hereof. F. State Grants. The City will cooperate with SMM to secure the 1996 State Grant as more fully set forth in Section 4 hereof, and will accept on behalf of SMM, the 1994 and 1996 State Grants. G. Reuse of Existing SMM Campus. The City will cooperate with SMM to develop a strategy to reuse the existing SMM campus as set forth in Section 5 hereof H. Citv Options for Financing. The City's Budget Director will develop a multi-year finance plan to provide funds to finance the City Contribution. Sources to be explored include, but are not necessarily limited to, District Heating and Cooling Franchise fees, CIB, MSA, BNT, RTC assets, Sales Tax, Tax Increments, and area wide user fees. The finance plan will be presented to City Council and/or HRA before or concurrently with the approval of this Agreement. �n,,.8 6 _ A ���� 7� � I. Citv as Issuer. As and when requested by SMM, the City will use its best efforts, or will use its best efforts to cause the HRA to use its best efforts, to issue conduit revenue bonds to finance a portion of SMM Improvements, in accordance with City and HRA's established procedures. SECTION 3 SMM UNDERTAKINGS In addition to the other undertakings of SMM set forth elsewhere in this Agreement, and subject to performance by the City of its undertakings under this Agreement and the Development Agreement, SMM agrees to undertake the following activities as set forth in this Section 3. A. Museum Construction. SMM will construct a new facility of not less than 300,000 gross square feet for use as a science museum (the "Museum"). Subject to Section 14 hereof, the construction of the Museum will commence on or before October 1, 1996, and shall be completed on or before December 31, 1999. B. Parking Ram� SMM will construct a 700 car ramp (the "SMM Ramp"). The SMM Ramp is currently anticipated to be built to the east of the existing Civic Center parking ramp on the former county morgue site and adjacent property. The Parties agree that, because of the financial and operational consequences to the e�sting Civic Center ramp and the planned underground Civic Center E�pansion ramp, SMM will agree in the Lease, or a separate parking agreement (the "Parking Agreement"), as set forth below: l. Coordination. SMM will enter into an agreement for the term of the I.ease under which SMM will agree to operate the SMM Ramp in a competitive manner, and to coordinate the hours of operation of the SMM Ramp with the Civic Center ramps. 2. Weekdav Parkin¢. During the weekday, subject to SMM needs, SMM will make the SMM Ramp available for public parking. 3. Evening and Weekend ParkinS. During weekends and evenings, subject to SMM needs, the SMM Ramp will be available for Civic Center and/or Rice Park area visitors. C. Science Parks. Subject to Section 14 hereof, and subject to the City completing Shepard Road as described in Section 7 hereof, SMM will substantially complete, by December 31, 2000, a four season park and plazas, (the "Science Parks") to be ?,87'I�7.8 7 . 9'�-i3 ��o located both adjacent to the Museum and south of Railroad tracks and rebuilt Shepard Road near the Mississippi River. D. Landscaping and Utilities. SMM will landscape and screen the SMM Improvements sufficiently to buffer railroads and edges of the site. SMM will relocate the utilities and undertake soil correction (e.g. pilings) necessary for construction of SMM Improvements; provided that environmental cleanup will be governed by Section 6 below. E. Access. SMM will maintain service access, during construction of the improvements to the Civic Center, through the Development Area to Eagle and east/west route to District Heating and Ramsey County offices. F. Si na e. SMM will erect a sign announcing the Science Museum facility at the corner of Kellogg and Eagle. G. Estimated Costs. The estimated costs of the SMM Improvements set forth in paragraphs A through F hereof are as follows: Expenses Range in millions Construction costs, including $43.5 to 50.0 contingency; project management; furniture, fixtures and equipment; and renovation of leased space Architectural and engineering fees $4.5 to 5.0 Program-related costs, including indoor $15.0 to 18.0 exhibits, Science Parks, Imax/Omnitheater equipment Miscellaneous project costs (fundraising, $4.5 to 5.00 marketing, financing, moving, etc.) Total $67.5 to 78 million H. Estimated Sources. Tentative Funding Plan (excludes $10.5 million commitment from City �»,�.s 8 9�-i� �� � - Public Funds State of Minnesota $31.5 to 35 million Federal agencies $2 to 3 million Subtotal $33.5 to $38 million - Private Funds Local sources $32 to 37 million Regional and national sources $2 to 3 million Subtotal $34 to $40 million TOTAL $67.5 to $78 million I. Project Costs. SMM will pay for all costs of the Project which exceed the City Contribution. J. Capital, O�erating and Maintenance Cost. SMM will pay for all capital, operating and maintenance expenses of the property leased to SMM under the I.ease during the entire term of the Lease, except for security costs associated with a new Mississippi River Pedestrian Connection, which will be negotiated as part of the Development Agreement. K. Repavment of Portion of City Contribution by SMM. In recognition of limited local resources, SMM's desire for a long term mutually beneficial relationship and the fact that the City holds title to the West Building, SMVI agrees to repay a portion of the City Contribution by entering into a financing lease pursuant to which the City will lease the West Building to SMM (the "West Building Lease") to replace the existing Lease dated July 15, 1984, between the Parties. The West Building Lease will include terms commonly included in financing leases, including but not limited to, the following: l. Term - 20 years. 2. Rent - Annually in arrears in an amount equal to the greater of $250,000 or 10% of the gross revenues derived by SMM from the West Building during the preceding calendar year, including any rent received by SMM pursuant to any sublease. 3. Pavment of Taxes, if an,y. Insurance and Utilities - by SMM. 4. SMM Purchase O�tion - At any time, upon payment of any amount equal to the present value of the rent for the remaining term of the lease, based on $250,000 per year, discounted at the applicable treasury bond rate. 5. Default - Includes, but not limited to, failure to pay rent after 60 days written notice. �,�,.e 9 . 9�-/3�� � 6. Remedies - Include termination of Lease, repossession of the leased premises by the City, and any other remedies mutually agreed upon by the Parties. 7. Non-recourse Obligation of SMM. L. State Grant. SMM will use its best efforts to secure the State Grants as more fully set forth in Section 4 hereof. M. Reuse of E�sting SMM Campus. SMM will develop a strategy to reuse the existing SMM campus as set forth in Section 5 hereof. N. Reimbursement to Ciri. If the Development Agreement is terminated, SMM agrees to reimburse the City up to $500,000 of the City Contribution which has been disbursed to SMM for design costs of the Project. O. Promotion of Citv. Prior to execution of the Development Agreement, SMM will provide the City a list of its suggestions on who it can assist in the promotion of the City and implementation strategies therefor. SECTION 4 STATE GRANTS A. Description. The Parties agree to work together to obtain two grants for the Project from the State of Minnesota in the total range of 32 to 35 million (the "State G:ants"), on terms mutually acceptable to the Parties. The State Grants w-ill include the following: 1. 1994 State Grant - $1.000.000. SMM has secured a 1994 State Grant of $1,000,000 for costs associated with planning the Project. The Parties will joint�y work to satisfy the terms for the release of those funds for the Project. 2. 1996 State Grant. The Parties will work to secure a State Grant in the range of 31 to 34 million for capital costs of the Project, and to assure that the proceeds of the 1996 State Grant will be available for distribution by August 31, 1996. B. Main Points of the 1996 State Grant. The Parties anticipate that the State Grant will address the following main points: 1. Use of Proceeds 2. Operation of Property 2F'717.8 lO 9�-/3�t� 3. Acknowledgement of State Bond Financed Property 4. Preserve tax exempt status 5. SMM L.ease is for a governmental purpose 6. Oversight by City 7. Conditions on term and renewals of Lease 8. Default Conditions 9. SMM during I,ease will pay all costs of operations and maintenance 10. Approval of Lease by the State 11. Conditions on Sale of Facility and Proceeds 12. Preconditions for Receipt of Grant (e.g. donation of a portion of existing campus) SECTION 5 REUSE OF EXISTING SMM CAMPUS The parties agree to develop a joint strategy to reuse SMM's existing building at VJabasha and Exchange Streets, commonly referred to as the East Building. The parties agree that if a labor interpretive center is funded by the state legislature, and the legislature approves the 1996 State Grant for the Project, the parties will convey their respective interests in the East Building to the State for $1.00, on the condition that it be used primarily as a labor interpretive center. As provided in Section 3(K) hereof, SMM intends to continue to lease the West Building from the City and to operate, among other things, an Omnitheater program therein. SECTION 6 ENVIRONMENTAL The Parties agree that any costs associated with the clean up of any environmental problems with the Project shall be paid as follows, provided that unless the Parties otherwise mutually agree, no monies will be disbursed until the execution of the Development Agreement: 1. Any clean up costs up to and including $250,000 shall be paid by the City; 2. Any clean up costs in excess of $250,000 up to and including $500,000 shall be paid by the City, but such payment shall reduce the City's obligation dollar for dollar to contribute $10,500,000 for the Project; 3. Any clean up costs in excess of $500,000 up to and including $625,000 shall be paid by the City; and zsn�zs 11 . 9�-�3�� 4. Any clean up costs in excess of $625,000 up to and including $750,000 shall be paid by SMM. Lipon execution of the Development Agreement, the City shall proceed with all necessary actions to undertake any necessary environmental clean up as soon as practicable and shall keep SMM advised of the progress and estimated costs. In the event the City notifies SMM that the clean up costs are estimated by an outside consultant to exceed $750,000, unless a mutually agreeable solution is reached within 60 days, either of the Parties may, upon written notice to the other, terminate this Agreement. SECTION 7 RAILROADS AND SHEPARD ROAD A. Railroads. The Parties recognize the benefit of opening up the Upper Landing and Lowertown to the Mississippi River by lowering or removing the main railroad tracks below the bluff. However, the Parties understand that it is unlikely that there are sufficient funds and multi party agreements in place in order to alter the present location of the railroad lines through the Development Area in order to meet the schedule for the construction of the Project. The Parties agree to coordinate their efforts to work together with respect to issues related to the railroads. B. Shepard Road. The City will complete the construction of Shepard Road through the eastern edge of the Development Area by December 31, 1999. SECTION S SCHEDULE AND TIMELINE The Parties agree to the timeline set forth on Fxhibit E attached hereto. SECTION 9 DESIGN REVIEW The Parties agree that SMM will design the SMM Improvements and the Upper Landing Improvements for which it is the City's agent consistent with Design Principles set forth on Exhibit F attached hereto. The City shall review and approve the schematic design of the SMM Improvements and the Upper Landing Improvements. �-��,.a 12 , Jlo-13 7� SECTION 10 PUBLIC ACCESSIBILITY The Parties recognize the shared goals of increased visitor activity that the SMM Improvements will bring, the importance of pedestrian access to the Mississippi River, the unique design challenges of the site, and the importance of visitor accessibility. SECTION 11 PARKING MANAGEMENT PLAN FOR AREA The City agrees to prepare a parking and management plan for the vicinity of the Project. The plan will be reviewed by SMM and the Neighbors described in Section 12. SECTION 12 GOOD NEIGHBOR A. Communication. The Parties agree to keep their neighbors informed of key developments during design and construction of the Project. The neighbors include the Civic Center, Fort Road Federation, West Publishing, Plastics Inc., the Minnesota Club, Ordway, Saint Paul Public Library and, District Heating, Ramsey County, Railroads, and surrounding business owners and residents (the "Neighbors"). B. U�per Landing Plannine. The Parties will participate with the Neighbors in a Riverfront Development Framework process scheduled to begin in April 1995. SECTION 13 EMINENT DOMAIN If condemnation is necessary for the acquisition of any of the Land, the City or one of its redevelopment agencies will exercise its powers of eminent domain, including quick take. SECTION 14 ZONING/REGULATORY PERMITS SMM w�ll obtain all necessary zoning and regulatory permits for the Project, excluding any Upper Landing Improvements for which SMM is not the agent of the City. SMM will pay for any and all costs of any Special Use Condition Permit, Indirect Source Permit, EAW, or other environmental review required for the Project. Any undertaking by SMM or the City to commence or complete the Project within a specified time period may be modified to the extent of unanticipated delays, including without limitation, delays resulting from compliance with local regulatory activities, i.e., zoning changes, variances, �-1�,.8 13 9�-i3�t� . building permits; or additionally for the Parties resulting from federal and state regulatory requirements. SECTION 15 MAJOR UTILITIES The Parties recognize the following major utilities of NSP, Water Utility, and District Heating and Cooling impact the successful outcome of this Project: A. NSP. The Parties recognize that removing or relocating underground the eadsting overhead high voltage lines through the Development Area is an important priority but that the cost of relocation or removal is not included in the City's contribution under Section 2C hereof or in SMM's obligations under this Agreement. Before construction of SMM Improvements, the Parties will strongly encourage NSP to contribute to this priority Riverfront initiative by removing or relocating underground Riverfront overhead high voltage lines through and near the Project area at NSP's expense. B. Saint Paul Water Utilitv. SMM will explore the possibility of including water conservation as part of the museum programming. C. District Heating and Cooline. SMM or its consultants will evaluate the costs and benefits of using District Heating and District Cooling for the SMM Improvements. The Parties understand District Energy is considering a cogeneration expansion and are prepared to work with District Energy to have a successful District Energy project which respects the riverfront and has reasonable limits to the storage of fuels on site. SECTION 16 COOPERATION BETWEEN CITY, SMM AND PROJECT LENDERS The Parties agree to cooperate and provide, in a timely fashion, any information requested by lenders for the Project. The Parties will work together to amend the existing state legislation to allow SMM to more easily secure private financing for the SMM Improvements. The City agrees, to the extent permitted by law, and if necessary to allow SMM to secure private financing for the SMM Improvements, to join with SMM as a co-mortgagor in any mortgage granted on the property subject to the Lease and to subordinate its interest in the Lease to such mortgage, subject to such conditions as to use as the City may determine. :���».8 14 9�-�3�t� SECTION 17 EXECUTION OF PLATS/PETITIONS The Parties agree to cooperate in order to accommodate the recording of all plats, lot splits and street and alley vacations for the Project. SECTION 18 TERMINATION OF PROJECT, PERFORMANCE DEFAULTS The Parties agree to complete all their respective undertakings for the Project set forth in this Agreement by December 31, 1999, except for construction of the Science Park by . SMM. The Parties agree that the Project cannot proceed without the 1996 State Grants. Unless the Parties can reach a mutually agreeable solution within 60 days, either of the Parties may, upon prior written notice to the other, terminate this Agreement or the Development Agreement, if (i) the 1996 State Grant has not been approved by the time the 1996 State Capital Budget is adopted, (ii) if the environmental clean up costs exceed $7�0,000, as provided in Section 6 hereof, or (iii) if it becomes evident to both Parties that the preconditions to the release of the portion of the City Contribution under Section 2,E.3 hereof can not be met. SECTION 19 RESPONSIBILITY FOR FEES S'�SM agrees to pay for the typical City and HRA fees associated with the Project including: A. Normal City fees associated with the planning and construction of the Project. B. Issuer fees associated with Revenue Bonds issued on behalf of SMM. City agrees not to charge an administrative fee for acceptance of 1994 or 1996 State Grants. The Parties shall pay for their respective legal costs for the preparation of this Agreement and Development Agreement. After the grand opening of the Museum, should the Parties decide to cause underground relocation of the NSP overhead wires referred to in Section 15 hereof, any costs with respect thereto which are properly allocable to costs within the Development Area shall 287J 17.8 1 S g�w'��� � be paid by SMM and any costs which are properly allocable to costs outside the Development Area shall be the responsibility of the City. SEC'f ION 20 DEVELOPMENT AGREEMENT HRA and SMM wil] use their best efforts to enter into a final development agreement (the "Development Agreement") within 60 days after the last governing body has approved this Agreement. The terms of the Development Agreement will supersede this Agreement but w�ill be consistent with the terms hereof, unless mutually agreed to otherwise by the parties. SECTION 21 COMPLIANCE SMM and its contractors shall, to the extent applicable, comply with all state and local laws and policies with respect to construction of the Project, including prevailing wage standards, affirmative action, public art ordinance, and targeted business programs, including with respect to the Upper Landing Improvements for which SMM acts as agent for the City, applicable competitive bidding laws. SECTION 22 EAST SKYWAY LINK The City avrees that, prior to execution of the Development Agreement, it will notify S'.vIM whether the City will connect the Civic Center to the downtown skyway system. If the Ciry notifies SMM that such connection will be made, the Parties agree that the cost of a sky�vay to connect the Museum to the Civic Center described in Section 2(D)(3) hereof (the "East Skyway Link") shall constitute an "Upper Landing Improvement" for all purposes of this Agreement (except that the City contribution in clause (i) of 2C hereof shall be increased by $500,000 to $11,000,000. In the event the City notifies SMM that it does not intend to connect the Civic Center to the downtown skyway system, the East Sky��a}• Link shall be deleted in the Development Agreement as part of the Upper Landing Improvements and the Project. SECTION 23 APPROVALS This Agreement is subject to the approval of the City Council and/or HRA, their respective legal counsel, the Board of Directors of SMM, and its legal counsel, and the execution of mutually acceptable legal documents, including the Development Agreement referenced in Section 20 hereof. Each of the parties agrees to proceed diligently and in ��„�.8 16 . � 9��/3�� good faith toward execution of a legally binding Development Agreement, but neither of the Parties shall be liable to the other by reason of an actual or alleged breach of this Agreement, except to the extent and as otherwise expressly stated herein. �».e 17 �l0 '/3 7� IN WITNESS WHEREOF, the Parties have executed this Agreement as of this day of , 1995. SCIENCE MUSEUM OF MINNESOTA By %�.`�.�..,� � k�,c� Its ���� �o;-- `� , � . Y By .� � �Is � ,. : !> � .� Approved as to form: CITY OF S T PAUL ,_ ._ By dzz��� � ���`� � � � - ts Mayor Assistant City ey By Its Director of Planning an Economic Development By Its Director, Department of Finance and Management Services �,,�,.e 18 - 9l0-�37lp EXHIBTTS EXHIBIT A-1 - Science Museum Background Information EXHIBIT A-2 - Public Benefits of the Science Museum Expansion EXHIBIT B - Map of the Development Area EXHIBIT C-1 - Land Assembly List EXHIBIT D - Traffic Flow Improvements EXHIBIT E - Timeline - 1995 to 2004 EXHIBIT F - Design Principles :�„��.a 9�-�3 �� � EXHIBIT A-1 SCIENCE MUSEUh1 BACKGROUND INFORI��ATION 1 . WHY IS THE SCIENCE MUSEUM OF MINNESOTA EXPANDING? This museum is Minnesota's most popular indoor year-round cultural center attraction. It serves more than 800,000 people a year - in buildings designed to hold 500,000. As the region grows in population and as demand for science learning experiences increases, the museum cannot grow with it - it has reached maximum capacity. Exhibit Space •The museum is the state's most popular field trip destination among museums and zoos: 150,000 children visit in school field trips from every county in the state. At peak times, the public spaces are severely overcrowded. The number of school age visitors capped because there is not enough room during "spring rush". Older visitors are reluctant to visit in the afternoons; passageways and exhibit halls are noisy and crowded. �Large traveling exhibits are too large for the current special exhibit hall. The 8,000 square foot Dinosaurs of Jurassic Park exhibit in the summer of 1994 had to be split between the special exhibit hall and anthropology hall - whose contents went to storage. Program Space •Areas designed for Board and staff ineetings double as spaces for classrooms and overni�hts by 3,000 Girl Scouts each year. •A sin�le auditorium doubles as a classroom and isn't available for a growing program of public lectures and demonstrations. •There is inadequate student drop-off space. Summer day camp participants are dropped off at the museum's small outdoor park because there is no adequate indoor area. Students on tield trips ofcen wait on their buses for orientation because there is no space large enough to hold them all during peak entry times. •The Omnitheater, the second oldest of its kind in the world, has more than 100 seats fewer than conventional theaters now coming on line. •The need to provide basic visitors services such as food and seating areas is in conflict with the need to expand exhibits. Regional Program Center •The museum's success in other areas, such as a statewide outreach program serving a quarter-million students annually and an international film production and distribution / �r,��� business, means increased pressure for staff offices and production facilities at the same time as education programs and visitor services absorb space previously used by staff. Collections Space •There are numerous risks to the museum's collections in the current site: incomplete fire suppression, a "leaky" building, pests, basement storage, moisture risks and humidity control problems, and overcrowding. If the museum does not grow and change, it faces competitive pressures that will only weaken its ability to attract new audiences and reta.in loyal audiences. 2. WHY CAN'T THE MUSEUM EXPAND ON ITS PRESENT SITE? As part of its site selection process, the museum examined closely the costs and other factors associated with expanding on its present site. Wit the help of Ellerbe Becket architects, the museum looked at three scenarios: •I�linimal renovation of current buildings; �Building a third building north of the east building (the Arts and Science Building); •Razing the east building and creating an entirely new structure. :�Iinimal Reno��ation After a thorough examination of the condition of the east building, built in 1964, it was determined that it would not be cost-effective to renovate this building. It is an aging structure that would require extensive and costly renovation in order to continue to be used for a museum, including for protection of valuable artifacts in the museum's collections. Building a Third Structure Adding a third building to the complex only exacerbated cunent problems: visitors often don't l:r►ow where to entre; once inside they often don't know we have two buildings. It is expensive and unsafe to have two buildings with multiple accesses; there is a lack of coherence and identity between the buildings. Razing the Current Structure The staff and Board examined the possibility of building a very large structure on two city blocks (including the site of the present St. Paul Health Center), linked tv the west buildina. The cost of this plan was almost as much as the cost of building at a new site. The aging Omnitheater would have to be rebuilt and the east building - two-thirds of our existing space - razed, creating a two year loss of revenue. The plan eliminated the creation of a unified museum complex. Outside of the Health Center block, there is no other direction for future expansion. The 9�0"/37�p museum is hemmed in by public housing, two churches, and a theater. There is little outdoor space, which eliminates the possibility of an outdoor Science Park. Finally, building on this site does not allow the museum to realize its program vision, which includes incorporating the Mississippi River into an expanded environmental focus for the museum. 3. HOW WAS THE SITE SELECTION PROCESS INITIATED? The planning of a new facility began with the museum restating its mission and strategic goals in a long-range planning process initiated in 1992. There were staff-wide brainstorming sessions, followed by board of trustee input, to determine both broad and specific goals for the Science Museum as it moved into the 21st century. The river emerged as the critical wellspring of this new museum in 1993. With mission and goals redefined, the museum started to plan the program and examine potential sties. Preliminar�� Site Evatuation Criteria •Supports museum's vision - outdoor programming, environmental focus, ability to attract up to 1.5 million annual visitors; •Financial feasibility - reasonable acquisition, relocation, and capital costs; •Location - sunounding context and connections to other nearby amenities; •Access - parking, traffic network, and public transit services; •Size and conditions - potential for expansion, configuration of each parcel, site factors. Specific Site Studies Ten possible sites in downtown Saint Paul were identified with input from the Saint Paul Depa::ment of Plannin� and Economic Development. Possible sites in riinneapolis and Bloomin�ton also were identified and general information was gathered, but the museum did not conduct site evaluations of these sites. The museum was seeking a site with at least 9.5 acres that could accommodate a building of 325,000 gross square feet, with outdoor exhibit spaces; adequate drop-off zones, entry areas and space for parking areas; and future expansion potential. Eight sites were eliminated from consideration because they did not meet the program or site criteria and because they had other constraints; poor site configuration, acquisition barriers or expense, soil contamination, access problems, or lack of amenities. The two top sites w�ere the cunent museum site and the HRA property on the West Side of the river between the Robert and Wabasha street bridges. These w�ere evaluated in detail. During the e��aluation, there was concern that the West Side site might be eliminated from consideration because of interest in the same site from an amphitheater development group. - ��V r/��� � In September 1993, the museum board selected the West Side riverfront site as the one with the greatest potential for the museum's future. Taking into consideration loss of revenue from a two-year shutdown on the current site, we found the costs of building on the current site and on the riverfront site were not substantially different. The cunent site also lacked space for outdoor programming, particularly in relationship to the river and for future expansion. (See Question Two for further information.) 4. VVHY IS THE MUSEUM NOW FOCUSING ON THE KELLOGG SITE? Throughout its planning and facilities study process, the museum solicited feedback from city and neighborhood groups, funders, and community leaders. Several concerns were raised about the site on the West Side of the river, including the site's perceived distance from do��ntow•n Saint Paul and its location on a floodplain. Based on feedback from these groups, ��e took a closer look at the Kellogg site. A new mayoral administration pledged to make riverfront development a key objective. The I�layor called for a revitalized Riverfront Corporation. Under new leadership of Dick Broeker, the corporation quicl:ly made the Upper Landing area, which includes the Kellogg Boule��ard site, a priority for development. In addition, the Civic Center stated a willingness to work with the Science Museum in its own expansion efforts. Because of these factors, the museum reopened discussions with the City of Saint Paul about the Kello;� Boulevard site. Constraints that made the site untenable in the first evaluation process, when the site was eliminated, now appeared to be open to negotiation. Features of the Kellogg Site �The Kellogg Boulevard site addresses favorably the city's concern that the museum be positioned closer to downtown Saint Paul. Its location is in very close proximity to the Civic Center, the library, and the Ordway Theatre. It also provides an extension of the cultural corridor that begins north of downtown with the Capitol and the new Children's Museum. �The Kellogg Boulevard site also offers a good solution to concerns about building in or near a floodplain. In October 1994, the Science Museum held a round table discussion by specialists from around the country and Canada on floodplain and other issues related to the museum's proposed sites on the Mississippi River. In particular, the discussion focused on issues of long-term security of the museum's biology, paleontology, and anthropology collections. Members of the community and government agencies were invited. The panelists cited many positive factors about the Kellogg site, including that its configuration allows the building to be built away from the river channel, outside the 500-year floodplain area. This alleviates concerns about flooding as a serious issue for museum collections. •Proaram staff at the Science h�iuseum are extremely excited about the programming capacity of the Kellogg site to weave together indoor and outdoor science learning areas and to offer a visual and reachable link with the river. . 9�-�3�� •The Science Museum of Minnesota is working on site development issues with the city includino traffic and access, railroads, vehicular and pedestrian access, and utilities placement. The museum will move forward with program planning and fundraising efforts for a move to the Kellogg Boulevard site as soon as the city determines its own role in preparing the site for development. The museum has retained its option to develop the south bank site, pending final resolution on these issues. 5. WHAT IS THE BENEFIT OF A NEW SCIENCE MUSEUM TO THE COMMUNITY? A l�iust-do Attraction and Education Center: 1,036,007 Participants •Minnesota's most popular indoor cultural center: 785,037 visitors to the museum; 193,571 participants in off-site school sessions; 31,624 registrants in continuing education programs; 16,839 visitors to the Warner Nature Center; and 8,936 people at special events. •The state's most popular school field trip destination among museums and zoos - 147,637 in school field trips to the museum from every county in the state. The museum served an estimated quarter million young people annually on family visits to the museum; 193,571 students at their own schools in every region of the state; 15,153 in museum classes, 15,000 at its nature center, and teacher enrichment programs for 2,310 educators. •Clubs for o��er 100 youth staff and volunteers, interpreting exhibits, having fun. •Co-founder and dynamic resource for Museum Magnet School, one of the nation's first. It has doubled its enrollment in three years of partnership with the Saint Paul School District. Qualit�� of Life in the Region As the leading center for informal science education in this region, the new museum will allow us to reach more people than we can now - up to 1.5 million visitors to the museum and another half million through regional outreach programs. It is this contribution to the educational and cultural advancement of the region that has prompted commentators to label the Twin Cities as one of the best areas in the country in which to raise a family. Regional Economic Impact �As a magnet for tourists and local visitors, the museum will create new jobs, both permanent and in construction trades, and will have positive spin-offs in the economy. Projections from a study commissioned by the museum indicate an annual economic impact of S80 million in the region and 1,606 jobs overall in the region, a significant increase from the current 550 million impact and 910 jobs overall. We anticipate that the museum, which currently obtains over 60 percent of its revenue from earned income will increase that portion to 70 percent in a new museum through box office, store sales, fees, and classes. •The community also will benefit from the national recognition the new museum will - 9�•�3 �� ' achieve. The Science Museum already has a substantial reputation around the world as an innovative science museum producing high-quality films that were shown in 50 cities across the world last year; exhibits that have attracted over 10 million visitors across the continent since 1982; and educational programs that create exciting and compelling experiences for visitors of all ages. �In downtown Saint Paul, the museum will be an anchor for new development on the city's Upper Landing site, providing public access to the river; an ongoing leader in the cultural corridor; and a leading downtown employer - 500 full-time employees. _ � ��o•/3 �� EXHIBIT A-2 PUBLIC BENEFITS OF THE SCIENCE MUSEUM EXPANSION S1L�1 Benefits The Science Museum provides the following benefits and projected benefits to the City of Saint Paul: Saint Paul: A Healthy Economy Jobs ST'IM Todav SMM 2000 SI�1I�1 Employees 311 FTE's 500 FTE's Direct jobs supported by Sr1I�1 spending 381 FTE's 674 FTE's Overall jobs supported by SMI�1 indirectly 910 FTE's 1,606 FTE's SI�1:�1's ranking as a dou�nto��n Saint Paul emplo}�er (# of jobs) Top 2% Top 1% Construction Jobs Construction workers on SMM project 567 Direct jobs supported by SMM construction spending 1,244 Overatl jobs supported by SMM construction spending indirectly 2,533 $$ to Saint Paul and region S1�i Today S1�IM 2000 Annual Economic Impact $50 million $88 million - q!Q "/37�p ' •30 to 40% of the current SMM visitors are from outside the 11 county metro region, therefore, S1�ZM imports wealth to the regional economy. •89% of current SI�1M visitors are from outside Saint Paul, therefore, we are importers of wealth to Saint Paul. Taxes Economic activity generated by S1�ZM today provides $123,559 in direct sales tax revenue to state and local governments. SMM 2000 will generate $350,000/yr. in direct sales tax revenue. To date SMM has not measured their indirect impact on other tax revenue. Saint Paul: Cultural Capital Saint Paul has excellent cultural assets. This community continues to invest in its belief that the long range health of downtown will lie significantly in its strength as a cultural center As the #1 cultural center. As the #1 cultural attraction in the State of Minnesota, the Science riuseum of 1�linnesota's future is extremely important to Saint Paul. In an independent '94 study of Minnesota cultural attractions (SMM, Minneapolis Institute of Arts, Walker Arts Center, Minnesota Zoo, SPCO, 1�linnesota Orchestra, and Guthrie), The Science ;�luseum of 1�linnesota ranked #/1 in: • importance as a community resource • place to bn.ng out of town guests • educational importance • memorable, interesting or entertaining • quality of programs • ��alue • most likely to be revisited Saint Paul: River Tow�n • SI�iM 2000 is a major catalyst for riverfront development � SNSM programs focus on importance on Mississippi River ecologically, anthropologically, and physically in our ever changing world � Sh1M 2000 is a significant riverfront community resource Saint Paut: City of Neighborhoods S:�1M is today and SMM 2000 will be a welcomed and welcoming member of its neighborhood. • A community gathering place • A community resource • A collaborative partner - with neighbors, schools, churches, youth leaders, hospitals, 9�0-�3 ?4 � EXHIBIT B � � �n+s�«+ Q 7 . � � CMe C.�Nw � � , .i � O / � � / � • ;�„ ':'. ,;� � � � ��, � ,,;a'. � •, ,'ti•'' ,�_ `�'�\ w�clro AusoA.. � d �� ,� � � ,,�•�\ � ' ;� • \ �•• . \ ` �� •�'� � � ��y / • ,`, ,`� `\'� ' � y /�O * � ,��'`'�'. �`` Oeary lfwd�t O O � �� •. \� `� ' �\''� fl � ��� ' , - �-�� ♦• �Ar+^", � CMe Gnl�r tonp �' � ��, � � R!p rarfc � � � � ! � �� MvSn� a � O S Mark�Y+C. � ,,. � • � O , ��� I ' � �� � • O �• � " +!"" � � ----___^• -.� _ ����+r �� � �� ifMlQr �. � ._ .. ....... —_n �� ���� `� ' . � ��i ----� ' _ �_.. ....�_ .. �IQ �A ' �� � � _ � . • .."'� . _ � � ``\ . ' � d ROOd `�, � � F»7� MISSISSIPPI RIVER ; Kellogg BIvd�J�1Pr � ElIEt�E �ECREt • w� � 11 Mp/NM Ir4 9�•�3�t� ' EXHIBIT C-1 DESCRIPTION OF THE LAND Acquisition for SMM Project Parcel 1. Former Ramsey County Morgue Parcel2. West Parcel3. Plastics Possible Acquisition for Upper Landin�Improvements Parcel 4. Eagle/Exchange/Kellogg area for right of way for Eagle/Exchange Street Improvements a. Robert Walsh (former Rehab Center land) - Partial b. WJW Properties c. Wilder Foundation 267117.8 � 9�•i3 �� EXAIBIT D UPPER LANDING IMPROVEMENTS `•' �) '),�/ �• �:/>) ///��' . .J,`��;./ �- `\ ,� �'\,� ..` / \ � � � � � . � �/��-�� ` '' � ��• , � �` i ti � , �� �� �r / � �/'�•��' \\ .: �' �, ♦ • �•� /I �j� .4.s�! � / ,• J � �- . . .`� ``��, r°�-� � �� I / / �i� •+��i ;@; j�,•'� :.�\ i �///' (/ '`•%��i / / `\/ /�!\~\ I �ti � \� N y \ ..iti/ �'`�!'�.�` < / � � \�, ��,� ' � `: = v �"" � \ j 8 ' S � � � �.,\ �� � � '\ ,, s��- r; i ► �% ���� /.�.�"1 �.; � 1 ,.� '' 9 � � � , _ 5 � o I a /i�4 J ti�,` � �I � + Ir I I � i� � 1 ,��j` ��'� //.-,il � a � �1 � �\ � �� ,� ��.� � i I ,,, � ,- ,7 � � ,, � I il' _ ��` 2 �� �� � ,��►1. � '% �:� ° � � y � � � � M �.,,�,,�� � � . � _ =+ ►— '��/(�' � � v ,; �► �' ,� �'= I � .,,.» �;i-, �r �' � �1;, � � � � � = I � O i // g � � 3 �( � � < � �I > , � ( � � � � x , _� � a � S� � � I I �� ° (1 � ITEM # ITEM DESCRIPTION 1 Signal - Kellogg Blvd. & Washington Street 2 Signal - Kellogg Bivd. & Civic Center Ramp entrance 3 Signal - Eagle Street 8� Exchange Street 4 Signai - Exchange Street & Chestnut Street 5 Street Reconstruction - Exchange at Kellogg 6 Street Construction - Eagle - from Kellogg to Ryan 7 Project Street Lighting 8 Hill Street closure & reconstruction 9 Lower Access connection - DHDC, Ramsey West, Jail � � , � � ��+�3 �� - _ ""� O EXHIBIT E � - - ---; -- -- -- �• - ----------------------------------- -------------------- ''t o g . �� - -- - - - - - --- -a -----Q -----L --------------------- --------------------•�-, �,� � _ , ti � � Q � J � o • J � .. � --i - - -------------- ----------------------- ---- ---- ------------------� � � C �� ------ -- -- - ---------------------------------2 ---- --~ ----------------- , .c O o p ' ( ^ v � �� � � c _ - _►- � ---- ` -- --- ------- ---------------------- � � o ------ ---�- --- ---------------- ,� � ; N --- '-'� N O v (� z . z 7 C : i z . O � � � t LL, -- -- -� - '� � 0. ' - � -- - - - ------------- ,cr_____-�- - Q � o o N --Z- ------- -----------------�------ ,.� v ►- � . � ___�_- ____ _ �__ ____ ������� G ��• `'�O ����� � � � O� � ������ ����������������������� � � • . • . � _____ _ ___ _ _ -� � __��������� ���� • ; ������..� �������� ������������������������' � � ►1 . Q N � z ° o ° � . �� -L----Qi --- - - - - - --- --- ---- --- ---�-------- -------z ------------------------- ,_., � `�}„ , • " . __ W_ ___ , __ ___ _ � __1_..�_ _ .� o _. . _� . _ 9!0-/3�!o EXHIBIT F DESIGN GUIDELL�TES FOR THE NE�i� SCIENCE MUSEUM OF l��i ,'i\'ESOTA Introduction: The general purpose of these guidelines is to provide a design framework for site development and building design for the new Science Museum of Minnesota. Thes�, guidelines are intended to describe the overall character, form and image of this project while allowing design latitudes for specific material selections, colors, and precisely defined shapes. Overall Design Concepts: The following major design concepts for the new museum reinforce the museum's emphasis on visitor experience as the primary organizing mechanism for the new facility: - •Easy to Use: The museum's design will be user friendly, pedestrian friendly and cit}� friendly. Visitor amenities and public circulation will enhance the visitor's experience. •Full of Sccrprises: The museum will contain a variety of uses and different types of space. The museum will continue to be a dynamic, entertainina destination that will be full of discovery. •Connects Yotc to Site: The new museum will have a downtown presence as well as a river presence consistent with the Shepard Road design principles; it will also provide a transition to a neighborhood scale at Eagle Parkway/Irvine Park. 7ust as the views and movement through the building will connect the city to the river, the museum itself will fundamentally express this connection through its form and public spaces. General: The new museum will contain approximately 300,000 gross square feet of new construction. Five major exhibit halls as well as a new Omnitheater are currently planned for the new facility. Visitor amenities, such as retail shops, a restaurant, ticket office and restrooms will be contained in an area known as Science City. An education center is planned to provide classroom space and serve as the destination point for school groups. Research laboratories and collections storage areas are planned to support the major exhibit areas and ongoing scientific research. The site itself will become a destination as science parks, outdoor exhibits, public walkways and river access transform the entire Upper Landina site. A 700 car parl:ing structure and an improved traffic/access network are major site components of the plan. 1 9!�•�3�� SITE DEVELOPb1ENT5 The new museum will be built on a site in downtown Saint Paul that embraces the Mississippi River on one side and Kellogg Boulevard on the other. It will form the link to the riverfront that Saint Paul has sought. As the lead project in the redevelopment of the Upper Landing site, the museum will provide a welcoming pathway from Rice Park to the river's edge as well as help Saint Paul realize its dream of restoring this valuable riverfront property and returning it to public use. A major focus of the site will be the long term transformation of existing surface parking areas into three interconnected science parks that will provide participatory learning experiences centered around the ecology, biology, history, culture, geology and physics of the local Mississippi River watershed. Intended for relaxation and fun as well as for study, the parks will act as an extension of the new museum building while bringing visitors to the very edge of the river. In addition, the site will contain an urban plaza and public esplanade to knit together the urban fabric of downtown and provide the critical link from downtown to the river. Key Sire Design Strategy: Take advantage of the attributes of the site. The verticality of the site, w�hile challenging architectura]ly, provides opportunities to open up spaces for magnificent views of the interior as well as the outdoors. The building will feature dramatic views of the Mississippi River and will employ natural daylighting. The museum will connect proarammatically as well as ��isually to the site by developing outdoor programs and an environmental focus to their exhibits through the development of science parks. V1e►t�s: The new museum will enhance the visual connection from Kellog� Boulevard to the river and river valley by providing framed views from street level along key public right-of-v��ays, such as �Vashington Street, and by maintaining strategic second story view•s from the Civic Center and the Minnesota Club. Priority urban view corridors for enhancement include: �Up river - west of the Civic Center parking ramp •Across the river valley - at the end of Washington Street •Down river - between the new Science Museum and District Energy The building roof will be designed as an architectural element that will be viewed from various perspectives. Connections: The new museum will improve the experience for pedestrians along Kellogg Boulevard during all seasons. Canopies and arcades will be considered as part of the design solution. A new at-grade, signalized, pedestrian crossing at Washington Street and Kellogg Boulevard w�ill improve connections from downtow�n to the new museum. The new museum w�ill also provide an outdoor public walk�way from Kellogg 2 , 9�-J37Cp ` Boulevard to the river. It will also provide an elevated all-season pedestrian crossing from the new museum across the railroad tracks and Shepard Road to create a unique entrance symbol and gateway into downtown along the river corridor. It is important to design a direct connection between the Science riuseum and downtown that does not block views of the river nor creates a canyon effect along Kellogg Blvd. The new museum's landscape elements such as street furniture, single globe historic lighting, plantin�, and other public improvements will be consistent w•ith the public improvements cunently existing at Kellogg Mall and will be carried from Washington Street to Seventh Street (Seven Corners). Urban Spaces: The new museum will create a sense of place, enclosure and arrival through the use of street furniture, entrances, plant material, and paving. Durable materials with long-lasting finishes compatible with nearby existing projects will be utilized. Vegetation will be indigenous and hardy with more formal treatment within the urban plaza areas. Paik Areas: Science Parks will provide the transitional setting from the urban, downtown development to the undeveloped and natural areas of the river valley. Land forms, vegetation, paving, lighting and other site elements will respond to this transitional setting throuoh predominantly informal as well as some limiterl formal arrangements. Large group gathering areas will contain a mix of landscape and plant material. Native materials and indigenous plantings will be used extensively throughout this area. BUILDL�'G DEVELOP��IENT.• At its core, the new museum will contain the following different types of uses: •The museum Visitor Place, the museum's best-known business, where visitors experience the Omnitheater, exhibit halls, and other programs. •Education, including services to teachers, outreach proorams to schools throughout I�linnesota and the Upper Midwest, and classes for adults and families; •Production and Distribution, which develops Omnitheater films and related products distributed worldwide and major traveling exhibitions distributed throuahout North America; 3 . 9'b-/3�� •Research and Collections, which conducts original research and preserves objects and artifacts in trust for all Minnesotans. The following key design strategies provide the underlying foundation for the conceptual approach for the new building: Strategy One: Design a building that worl�s for people. •Convenient access to and from parking to the main lobby •Services such as ticketing, stores and restaurant conveniently clustered •Sufficient space for public circulation; convenient access for wheel chairs and strollers •Room for adults to rest and relax, spaces for children to run and move •Architecture that is welcoming and warm, not institutional Particular detail is being paid to designing the spaces for the core visitor services-- lobby, ticketing, restaurant, restrooms, elevators and parking--for anticipated future growth. Due to the configuration of the site, these areas are more difficult to renovate or move, so they must be designed properly the first time. Strategy Tivo: Design exhibit halls that provide the greatest flexibility possible. I�iuseum staff know from documenting the history of the museum's current two buildings that exhibit space changes dramatically in character and use as the museurn's needs change. Large contiguous spaces that can be expanded or shrunk as needed are the ideal. Services such as electrical, heating and cooling, and telecommunications wiring will be easy to move and upgrade. The building will be desi�ned to accommodate future expansion such as additional exhibit halls, classrooms or offices. Strategy Three: Design a building using the lates� in sustainable building materials and technology. The museum has formed the energy group, an advisory group of experts in the areas of energy research and analysis, evolving energy technologies, construction management, building systems and architecture. With their guidance, the new museum will feature an integrated design that is economical, functional and protective of the environment. The building's "green" design will be featured as an exhibit in its own right. Form & hlassing: The new museum will be compatible in form and massing with the surrounding context and nearby buildings, including the new Civic Center, Minnesota Club and 4 � 9�-I37� � the Public Library. Key elements that define the museum's character include: Building scale: Fundamentally, the museum's focus on a positive visitor experience and bridging downtown with the Mississippi River Valley, should translate into a highly pedestrian- friendly scale. Careful attention to the building's human scale through such elements as detailing, joint spacing and modular materials is needed. Massing / Orientation: The museum will utilize the site's verticality and bluff condition by cascading down from Kelloag Boulevard to the river valley below. The interior movement of visitors will also follow the cascading effect down the bluff by allowing multiple changes in floor elevations. Conceptually, the building is being organized with a "no back door" approach. This means that this museum will have several primary facades andlor entryways: - On the north at Kellogg Blvd., the museum will relate to the more formal historic character of Rice Park. - On the west, it will transition to Eagle Parkway and the neighborhood. - On the south, it will relate to the expansive river approach from Shepard Road. - On the east, the Science Museum will provide an architectural transition between District Energy and the museum itself. Service areas and loading docks will be designed with minimum visual / functional impact on the building's primary facades. The building will respond to excellent on-site solar orientation through the use of large glazed areas and clerestory lighting. There will be a strong, well-defined site edge along public and internal streets, through building setback, landscaping, fencing and/or other elements. HeiQht; The new museum will extend two floors above Kellogg Blvd. in order to: frame views from Kellogg, provide a strong visual icon marking the entry to the museum for visitors at Kellogg Blvd., and maintain a strong urban edge at the street level. Specifically, the museum's height along Kellogg Boulevard will be compatible with adjacent buildings, such as the Public Library. Due to the cascading massing effect, the building will step up from the river valley. 5