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269920 WMITE — CITV CLERK �j a�� PINK — FINANCE G I TY OF SA I NT PA U L Council ��.�i� CANARV — DEPARTMENT BLUE — MAYOR � � File N . ncil Resolution Presented By �%��f Referred To Committee: Date Out of Committee By Date WHEREAS, The Port Authority has leased the Lowry Hotel to Doerfler Construction Company and has financed the redevelopment of the Lowry Hotel into an apartment building; and WHEREAS, Doerfler Construction Company has leased a portion of the first floor of the Lowry Hotel to Mangini' s Pizzeria, a division of Mangini, Inc. for the purpose of operating a restau- rant; and WHEREAS, The City of Saint Paul owns the former Lowry Medical Arts Annex, and a portion of the former Lowry Hotel restaurant is located in the Lowry Medical Arts Annex, and is of no present use to the City of Saint Paul; and WHEREAS, The City has been requested to lease this restaurant space to Mangini, Inc. also for restaurant purposes, and the Mayor and Director of the Division of Economic Development have recom- mended the lease to the City Council in the form attached hereto; now, therefore, be it . RESOLVED, That the Council of the City of Saint Paul does hereby approve the lease of 1,200 square feet of the former Lowry Medical Arts Annex to Mangini, Inc. for an initial term of four years with three options to extend the lease for five years each, at an initial term annual rental of $3. 00 per square foot and providing that the rent will be reduced by the amount of real estate taxes that might be assessed and levied on the leased premises, and the proper City officers are hereby authorized and directed to execute the lease in substantially the same form as attached. COUIVCILMEIV Requested by Department of: Yeas Nays Butler � Plann g and Economic Development Hozza In Favor Hunt Levine � __ Against BY Roedler S ylvester Ted� OCT 1 3 1977 � �, Form Approv by ity At ey Adopte��by Council• Date — �' C ified Pa.- by C nci Secretary BY Li� Appr ved Mayor: Date � � �� Approved b ayor for Sub ' ' n to Council n ✓ `�� BY BY � pUBLISHEJ OC I 2 G 1977 - �� : r 'r'�>+ LEASE AGREEbiENT THIS LEASE, Made and entered into this day of , 1977, by and between the CITY OF SAINT PAUL, a municipal corporation of the State of Minnesota, hereinafter referred to as "Lessor" , and MANGINI'S PIZZERIA, division of MANGINI, INC. , a Minnesota corporation, hereinafter referred to as "Lessee" . I. LEASED PREMISES - TERM Lessor does hereby lease, demise and let unto Lessee and � Lessee does hereby hire and lease from Lessor the portion of the building located in the City of Saint Paul, County of Ramsey, State of Minnesota, formerly known as the Lowry Asedical Arts Annex and now known as the City Hall Annex, consisting of 1200 square feet, and identified on the attached map which is . marked Exhibit A, to have and to hold the same for a term, hereinafter called "original term" commencing on the lst day of October, 1977, and ending on the 30th day of June 1981, unless sooner terminated as hereinafter provided, subject to all the terms, covenants and conditions set forth herein and subject to Lessee' s right and option to extend said term as hereinafter provided. II. RENEWAL At the expiration of the original term, this Iease may be renewed at the option of the Lessee for three additional extended terms of five years each. Any extension of this lease as pro- vided above shall be upon and subject to all of the terms, covenants and conditions of this lease during the original . term except as hereinafter modified and provided that: A. Lessee must give Lessor written notice at least sixty (60) days prior to the expiration of said original term of Lessee' s desire to renew and extend this lease for an extended term; and B. Lessee must not be in default at the time notice is given or at the commencement of any extended term. III. RENTALS Lessee hereby covenants and agrees to pay rent to Lessor beginning on the commencement date of this lease at Lessor's office of the Department of Finance and rlanagement Services in the City of Saint Paul, Minnesota, or at such other place as Lessor may from time to time designate in writing, annual rent at the rate of $3.00 per square foot for the initial term of the lease, or the monthly sum of $300_00. Rent for extended terms of this lease shall be increased equal to the increases 2. �`�� •' Y ;'4 w''`rl�t �; in cost of living index and shall be an amount negotiated and agreed upon between the parties at the time Lessee exercises each option but in no event shall exceed the sum of $lO. OQ per square foot. In the event Lessee is required to pay real estate taxes on the premises leased herein, annual rent paid to Lessor - shall be reduced by the amount of such real estate taxes. IV. USE OF PREMISES Lessee may use the demised premises for a food restaurant only in conjunction with the use of the remaining portions of the restaurant and kitchen owned by the Port Authority of the City of Saint Paul and leased to Doerfler Construction Company, Inc. Any proposed change in use from that of a food restaurant shall first be approved in writing by the Mayor of the City of Saint Paul. V. ORDINANCES Lessee agrees not to use or suffer to permit the demised premises or any part thereof to be used for any purpose or use other than herein provided, or in violation of any Iaws, zoning ordinances or other ordinances, or of the regulation of any governmental authority, or in any manner that will constitute a legal nuisance or in any manner that will vioiate, suspend, 3. �; void or make inoperative any policy or policies of insurance of any kind whatsoever at any time carried on the demised premises. VI . INDEMNITY AND I,IABILITY INSURANCE Lessor shall not be liable to Lessee or to any other person . or persons for or on account of any injury, death or damage occasioned in, on or about the demised premises to persons or property of any nature or sort whatsoever, or wheresoever arising, or for or on account of any death or any injury to persons or property that may result b_y reason of. any future Iack of repair of said premises, or improvements thereon, or the wiring, equip- ment, furnishings, fixtures or apparatus therein or thereof, or by or from plumbing, gas, water, steam or other pipes or sewage, or by or from the use, misuse, or nonuse of said premises or improvements thereon or any part thereof, or any equipment, furnishings or fixtures therein, or apparatus thereof by any person lawfully or unlawfully upon said premises, or by or from any act, omission or neglect of any such person, or by or from the acts of tenants of adjoining or contiguous property, or in any manner whatsoever growing out of the future condition or use of the demised premises, or improvements, or any part thereof. Lessee covenants and agrees to indemnify and hold Lessor harmless from and on account of any and all loss, damage, claim of damage, liability, expense, costs and counsel fees arising out of or 4. . ; resulting from or incurred in connection with the matters or things hereinbefore specified, and from and against any and aIl damage or liability arising from any accident or any occurrence causing injury or death to any person or property whatsoever, or whatsoever and directly due or indirectly due to the use, misuse . or nonuse by Lessee or any of its agents, contractors, servants, employees or licensees or the condition of the demised premises or any part thereof, or any appurtenances or equipment thereof or therein, or arising out of any failure of Lessee in any respect to comply with any of the requirements or provisions of this lease. Lessee shall at Lessee' s sole cost and e�pense but for the mutual benefit of Lessor and Lessee maintain reasonable and adequate general public liability insurance against claims for personal injury, death or property damage occurring in, upon ar about the demised premises and on, in or about the streets, sidewalks and passageways on and adjoining the demised premises. The minimum limits of liability for such insurance shall be $100,000 for injury or death to any one person and $300,000 with respect to injury or death to more than one person, and $300 ,000 with respect to damage to property. Lessee agrees to furnish Lessor with certificates evidencing such insurance written in companies acceptable to Lessor and including Lessor as a named 5. insured on the policy. All such certificates shall provide that the insurance evidenced thereby will not be cancelled by the insuror except on ten (IO) days ' prior written notice to Lessor. VII. TAXES - The Lessee agrees to pay or cause to be paid before penalty attaches, alI taxes, excise taxes, assessments, fees, and other charges of whatsoever nature levied, assessed or imposed by federal, state or local authorities on the demised premises or the ownership thereof or the rents reeeived therefrom which are due and payable during the original term and alI extended terms, if any. If at any time any such taxes, assessments, fees and other charges due and payable during the original term and all extended terms, if any, shall be levied by the State of Minnesota or any political subdivision thereof against the Lessor with respect to its interest in the demised premises, or rentals payable �y tfie �essee h�reunder, the Lessee agrees to pay or cause to be paid when due any and all such taxes, assessments, fees and other charges. VIII. INSURANCE During the original term and all extended terms, if any, Lessee shall keep the demised premises insured against all risks except flood and against war damage when available for the full 6. replacement value in a company or companies to be approved by Lessor with loss payable to Lessor and Lessee as their respective interests may appear. Lessee shall pay promptly when due all premiums on such insurance. The original policy shall be delivered to and kept and retained by Lessor as additional security for the covenants of Lessee herein, and before the expiration af any such policy of insurance Lessee shall deposit with Lessor a new policy to replace the policies so expiring or a rider renewing the same. IX. REPAIRS AND MAINTENANCE Lessee shall at all times and at its own expense keep the - demised premises and all improvements thereon in good order, repair and condition, shall make all necessary repairs and replacements to the demised premises whether structural or otherwise and whether ordinary or extraordinary, and further shall repair all damage done to the demised premises from what- ever source or cause so as to keep the demised premises in good and tenantable condition. Lessee shall at its sole cost and expense maintain the improvements on the demised premises existing on the commencement date of this lease and make such additional improvements as may become reasonably necessary to Lessee' s use of the demised premises. Lessee shall not at any 7. � f �_ ..� �� ...�!'''y, time permit any security interest or any mechanics, laborers or materialmen' s liens to stand against the demised premises. Deposit with Lessor or with any court of competent jurisdiction of sufficient security to cover such liens shall be deemed com- pliance with this paragraph. Lessor shall not be required to make any expenditures whatsoever in connection with this lease or to make any repairs or to maintain the demised premises in any way during the original term and all extended terrns, if any. It is expressly understood and agreed that except as provided herein, this lease is a "net lease" intended to insure Lessor the rent on an absolute net basis. X. ` DESTRUCTION In the event of damage to or destruction of the demised premises or any part thereof dtzring the original term or extensions, if any, Lessee shall promptly restore the demised premises to substantially the condition existing immediately prior to such damage or destruction and for that purpose if such damage or destruction was caused by perils insured against, Lessor shall make available to Lessee pro rata as work progresses the net proceeds of such insurance. If such proceeds are insufficient to pay the entire cost thereof, Lessee agrees to pay the remainder of such cost. There shall be no abatement of the rents becoming due and payable hereunder during the period of 8. restoration. XI. UTILITIES Lessee agrees to pay for all utilities and other services used in, on or about the demised premises during the original term and aIl extended terms, if any, including but not being limited to electricity, water, sewer, gas, telephone, Iighting, garbage and refuse removal. XII. ASSIGNMENT AND SUBLETTING This lease shall not be assigned, nor shall the demised premises or any part thereof be sublet, used or occupied by any other person, corporation, partnership or other organization without Lessee first obtaining the written consent of Lessor thereto expressed in an Administrative Order issued by the Mayor; provided that such consent shall not be unreasonably withheld by Lessor. All of the provisions of this lease shall be binding upon every assignee, sublessee, user or occupant of said premises or any part thereof with or without the consent of Lessor, and Lessee hereby guarantees the performance of all provisions of this lease by any assignee, sublessee or occupant; but nothing in this paragraph contained shall be interpreted or construed as a waiver by Lessor of the restrictions set forth in the first sentence of this paragraph. Any assignment 9. or subletting by the Lessee of this lease or of the leasehold interest of Lessee hereunder shall be made subject to all the rights of the Lessor expressed in this lease and shall be made without prejudice to or impairment of any of Lessor' s zights as expressed in this lease or otherwise. - XIII. " ACCESS The Lessor or its nominee or nominees shall at all times during usual business hours have the right to enter upon said demised premises to inspect the same, to make reasonable and necessary repairs thereon for the protection and preservation thereof, to make reasonable and necessary repairs to any im- . provements in, on, or about the demised premises and to cure any defaults of the Lessee hereunder, but nothing herein shall be construed to require the Lessor to make such repairs or to cure such defaults. Lessor or its nominee or nominees shall have the right to enter upon the demised premises at any time within the last twa years of the original term or any extended term far the purpose of showing the same to prospective tenants thereof. XIV. SURRE�DER OF PREMISES Lessee shall upon the expiration or earlier termination of this lease surrender to Lessor the demised premises including without limitation the building, improvements and fixtures , except Lessee' s movable tradefixtures and furniture and equip- 10. . �f ment then upon the demised premises, in good condition and repair, reasonable wear and tear excepted; and all alterations, improve- ments or other additions which may be made or installed by or at the instance of either party hereto or by any assignee -or sub- lessee of the Lessee hereunder to, in, upon or about the demised premises, except Lessee' s movable trade fixtures, furniture and equipment, shall be the property of the Lessor, and upon any such expiration or termination � shall be surrendered to Lessor by Lessee without any injury, damage or disturbance thereto or payment therefor. In the event that Lessee shall hold the demised premises after the expiration or termination of this lease with the � consent of Lessor, expressed or implied, but without renewal as provided in this agreement, such holding over shall in the absence of a written agreement on the subject, be deemed to have created a month-to-month tenancy terminable on thirty (30) days' notice by either party to the other at a �monthly rental equal to that hereinbefore provided, and otherwise subject to all of the terms and provisions of this lease. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed as of the day and year first above written. 11. Approved as to Form: CITY OF SAINT PAUL � B Y Ass ant Cit t n Pdayor City Clerk Director, Department of Finance and Management Services STATE OF MINNESOTA) � ) ss. COUNTY OF RAP�SEY ) The foregoing instrument was acknowledged before me this day of , 19 , by George Latimer, Mayor; Rose Mix, City Clerk; and Bernard Carlson, Director of Finance and Management Services, of the City of Saint Paul, a municipal corporation of the State of Minnesota, on behalf of said City of Saint Paul. Notary Public My commission expires 12. MANGINI, INC. By Its By Its STATE OF MINNESOTA) ) ss. � COUNTY OF RAMSEY ) The foregoing instrument was acknowledged before me this day of , 19 , by , . (Title) and , , (Title of MANGINI, INC. , a Minnesota corporation, on behalf of said company. , Notary Public My commission expires 13. � � „� �'` � � '` �',�� C�'�.r -�..,l' �!� J��'� � �' _. � 1 , ��fY�OF SAINT PAUL •`�t �'�. � '�. �� r`a e � � OC�£C�'�V � OF IC�HE CITY ATTORNEY � FO '.� ,:,�^ „� �.. � � �, W Harriet Lansing, City Attorney ` 647 City Hall,Saint Paul,Minnesota 55102 George Latimer � � Mayor � 612 298-5121 1 � - , September 29, 1977 f � _ , �a�A S e�7�.�� -�-�-o�� "�nr Z; �-��` !!�� 1��.. t� tt��;,;�- -� � , �. _ Q.�p,,p'`�c."''.�' � �'r►�t,�.��--..� �,'.��, Ber rd Carlson � � Direc r �-----._._._.._..�_---- Departm t of Finance and �y � ��-�i-�-c-� �� J . av-a--� � Manage nt Services � _ �y � 113 City H 11 I� �`��e-��r" � ` �u BUILDING �'�� Y1�-�i.s - �c--ry-�--- `-�2e�- Re: Lease to angini' s, Inc. � � Lowry Ann x � � �'��.� ��<+YY— �.a_.,..�- Dear Mr. Carlson: Attached please find five copies of draft ease agreement for the 1,200 square feet of space in the Low Annex, and also resolution for the City Council' s approva . These should be prepared for the signatur of the Mayor and Economic Development Division Director' s ignature, a report to the City Council recommending the leas on the basis set forth in the draft, and advising that thi space is not needed for City municipal purposes. If you have any questions or would like meet to discuss the draft, please let me know. Very trul yours, � :, � C� ME J SEGAL � �!�,.^ � � � As stant City Attorney ° �'^� or,�� `�� ` ..�'�.�� JJ :cg ,�, ��''- Atts. ""C,�''.',.(=�' �n ,j f9 �: ,,I�Y '%%'�,,�f/�:- �� a��l��V) ��r`'O. „ �a, v�fr�/`CF cFs �J