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06-980N ^ Substitute — 11/01/2006 r����r��c•ru Council File # �� Green Sheet # �O 3 r31a � 1 WfIEREAS, on May 3, 2006, the Saint Paul City Council approved Final Order No. CF 2 06-431 for the acquisition and conshuction of a new Western District Office for the Saint Paul 3 Police Aepartment to be located at 389 Hamline Avenue North (the "Propert}�'); and 4 WHEREAS, based on an independent real estate appraisal, city staff presented an offer to 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 S6 t7 �8 � acquire the Properiy; and WHEREAS, the properiy owner, an experienced construction contractor, declined to sell but presented a counter offer to design and construct the Western District Office accarding to City specifications, then lease the improved Property to the City, with an option to purchase in the future; and WHEREAS, city staff obtained an independent evaluation of the cost of construction from CPMI, in order to determine that the construction estimate was fair and reasonable in light o£the market; and WHEREAS, city staff fiu determined that the costs of condemning the property would significantly add to the cost of construction not only through the associated costs of the condemnation process, but also by delaying the project and increasing costs of labor and materials; and WHEREAS, believing that the location of the land was the single most important factor in constructing the new Westem District Police Station, and that after thorough review, there were no nearby availabie parcels which met the needs of the Police Deparhnent; and WHEREAS, the City Council hauing heard the report from staff concerning the desirability of locating the Western District Office for the Saint Paul Police at this location and the substantial additional costs to the City which would be incurred by proceeding with a condemnation to obtain the ]and and manage the construction and design of the new Western District Police Station; now, therefore, be it RESOLVED, the City Council hereby determines that it is in the best interests of the City to enter into the attached lease with option to purchase with NWM HI94, LLC to effect the purchase and construction of the Westem DistricC Police Station at 389 Hamline Avenue North. This determinarion is based upon: 1) z> The unique location oPthis properiy, with its central location and access to major streets and the freeway, best meets the needs of the Saint Paul Police Departrnent; Currently there aze no other available pazcels of property neazby which would equally meet the needs of the Police Department; 3) The cost of condexnnation of the property would add significantly to the expenses of the overall project and would delay the start time for conshuction; and CITY OF SAINT PALIL, MINNESOTA �� O� -9Sc� 4) The independent appraisal of the construction esfvnate done by CPMI insures that the City is obtaining a fair construction estimate for the building and that it is not paying more than it would if the building were constructed pursuant to bids. B App�oved FURTHER RESOLVED, that the City Council hereby authorizes the Saint Paul Police Department to execute a Lease Agreement with the owner of 389 Hamline Avenue North, in a form and content substantialiy as set forth in the draft lease-with-option-to-purchase attached hereto, for the purpose of conshucting a new Western District Office for the Saint Paul Police Deparhnent. /� Requested by Deparhnent of: By: � By: Adoption Certified by Council Secretary � Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet Green Sheet � �� �9�6 DepaNnenUoffice/council: Date Mitiated: Qw -�,li�w� �-0�� Green Sheet NO; 3033261 ContaetPerson 8 Phone: Da�e H. Nelsort 266-88G0 Must Be on Couned Agenda by (Date): 1 I-0CT-06 DoaType: RESOLUiION E-0ocumentRequ'ved: N Docu t Contad: Da�e H. Nelsm Conta Phone: 266$860 y Assign Number For Routipg Orde� Totai # of Signature Pages _(Clip Ali LocaBons for Signature) 0 tic Worirs Dave H. N 5 unol 6 ' Qerk Ci Qer Request approval of a resolurion authorizing a Lease Agreement between the Saint Pau1 Police Depaztment and the owner of 389 Haznline Avenue North foi the City's lease and eventual purchase of a new Wes[em District Office. itlations: Appto�e (A) o� F Planning Commission CIB Committee Gitil Senice Commissi� 1. Flas this persoNfirtn e�er worked under a cw�tract for this tlepaitmert? Yes No 2. FWs this petsoNfrtn eeer 6een a�rty employee? Yes No 3. Dces this personlfirtn possess a skill not �ramally p�sessed by any curtent city employee? Yes No Explain all yes answers on separate sheet and atWch tn green sheet Inifiating Prohlem, lssues, OppoKunity (Who, What, When, Where, Why): The City has identified both funding and a location for a new Westem District Off'ice. Ciry staff also have reseazched altemaflves to acquiring the land and construcflng the building. The most cost effective appioach is ro lease a new structure, built ro Ciry specifications, from the propeny owner, with an option for the City to p�schase the property in the future. Advantages MApproved: The City will be able to proceed with design and construcflon of a new disfrict office Disadvantages IFApproved: The City will be commitflng city resources to a long-term lease of a district office, or an eventual multi-million purchase of a built-wt district office and surrounding land. Oisadvantages N Not Approved: The Ci[y will be unable to acquire the property under the lease opfion, which is the most cost effecuve approach to conshvcfing and acquuing a new district office. Totai Amount of Transaction_ Fundinq Soucce: CIB Bond Fu11d5 CostlRevenue Budgeted: Y ActivitY Number: Financiai information: Iniflal payment of $50,000 according to terms of the lease. P�schase option is $91 million. (Explain) October 3, 2006 1203 PM Page 1 � �0 ' �/t�� (File Name: AE2006-02 Revised: 7/31/06 Authority (C.F. orA.O.) LEASE N0. DEPT. of PUBLIC WORKS LEASE N0. DATE: LEASE AGREEMENT THIS LEASE AGREEMENl ("Lease") is made antl entered into this _ day of , 2006, by and between NWM HI94, LLC, a Minnesota Iimited liability company, with its principal place of business at 1375 St. Anthony Avenue, Saint Pauf MN 55104 ("Landlord") and the CITY OF SAINT PAUL, a Minnesota municipal corporation, with its offices ai {"City"). In consideration of the mutual covenants and promises contained herein, and of other good and valuable consideration, the receipt and legal sufficiency of which are hereby acknowledged by both parties hereto, the parties for ihemsefves, their affiiiates, their successors, legal representatives and assigns, desire to define their rights, duties and liabilities with respect to this Lease, and they do hereby agree as follows: Buildout Schedule. The Schedule for ConstNCtion of the Building as attached hereto as Exhibit E and incorporated herein. Buiidout Specifications. The Specifications for Construction of the Building and related improvements as describetl herein on Exhibit D. C�. The City of Saint Paul, Minnesota. Deposit. The Citv shali deliver to Landlord Fiftv Thousand dollars and no cents ($50 000� deposit upon the full execution of this lease apreement bv both parties. Environmentaf Laws. The Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. Sections 6901, et seq.; the Hazardous Materials Transportation Act as amended, 42 U.S.C. sections 6901, et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. sections 1251 et seq.; the Resource Conservation and Recovery Act of 1976 , 42 U.S.C. sections 6901 et seq.; the Federal Clean Air Act, 42 U.S.C. sections 7401 et seq. Event of Default. Faiiure by either party to this lease to perform, observe any condition or term, covenant or obligation as required under this lease. n�ti:�aa�ssa.os l� �P ` G /�'i0 Force Maieure Event As defined in Section 3� of this Lease, Hazardous Materiais. Any hazardous substance or toxic material, substance, pollutant, confaminant or waste including but not limited io: oil, petroleum product, flammable substances, explosives, radioacfive materials, infectious wasfes or substances, asbestos in any form, unrea- formaldehyde foam insulation, fransformers or other equipmenf that contains dielectric fluid containing polychlorinated biphenyl, or radon gas, and any similar terms as defined or regulated under any state, local or federal laws, rules or regulations. Land. The land legally described on Exhibit A attached hereto and incorporatetl herein. Lease. This Lease Agreement. Lease Commencement Date. The first day of occupancy by the Saint Paul Police. Landlord. NWM HI94 LLC, a Minnesota limited liabiiity company, and its permitted successors and assigns. Maintenance Schedule. The schedule for maintenance of the Premises attached hereto as Exhibit F and incorporated herein. Permifled Exceptions. Those liens, charges, leases (other than this Lease), security interests, claims, encumbrances, and agreements set forth in Exhibit B attached hereto. Plans and Specifications. Those plans and specifications as set forth in Exhibit D. Police District Office. The approximately 37,536 square foot two-story building to be constructed in accortlance with the Build-out Specifications along with a surface parking 1ot for approximately 105 parking stalls and 44 underground parking stal{s as set forth in Exhbit E. Premises. The Premises shown as Exhibit A-2, being the portion of the Land, the Police District Office and a!l other improvements constructed in accordance with the Buildout Specifications. Purchase Option. As defined in Section 41 of this Lease Renewal Option. As defined in Section 5 of this Lease Renewal Term As defined in Section 5 of this Lease Substantial CompletionlSubstantiallv As defined in Section 3(b) of this Lease Substantial Dama4e. As defined in Section 17 of this lease. Target Deliverv Date. As defined in Section 3(b) of this Lease. M�:�saassa.os �� Term. The term of this Lease as sef forth in Section 4. llnavoidable. As defined in Section 3(d) of this Lease. 2. DEMISE OP PREMISES. Landlord hereby {eases and demises to City and City agrees to lease from Landlord the Premises, togefher with all buifdings, improvements and fixtures now or hereafter erected thereon, and all rights, privileges, and easements appurtenant thereto. As more specifically described in Exhibit A-2 and Section 3, fhe Landlord shall construct upon the Land the Police District Office following the execution of this Lease for the use and occupancy of the City. City shall have the exclusive right to use the Premises during ihe term of this Lease. Noiwithstanding the foregoing, the Gity acknowledges that the Prem+ses do not include all the Land. On the portion of the Land as shown in Exhibit A-2 is not leased to the City, the Landlord will grant the City an easement to use a drainage area to include in their storm water management plan. Landlord will also use this area for pervious surface parking and rain garden area. 3. CONSTRUCTION OF POLICE DISTR{CT OFFICE. (a) Landlord shall cause to be constructed upon the Lantl, in accordance with the Builtlout Specifications, at Landlord's sole cost and expense, the Police District O�ce. Landlord agrees to construct the Police District Office so that when completed it is in compliance with all applicable governmental laws, codes, directives, and regulations in effect as of the date hereof (collectively, "Leqal Repuirements"). The final building specifications and components shall be based on the Buiitlout Specifications and shall be inclutled in "Plans and Snecifications" to be prepared by Landlord and approvetl by the City as follows: November 1, 2006 — City of Saint Paul City Council approves Lease agreement with Option to Purchase. January 15, 2007 — Landlord submits Pfans antl Specifications for the building shell. January 22, 2007 — City's deadline for approval. March 15, 2007 - Landlord submits Plans and Specifications for the bui(ding interior. March 22, 2007- City's deadline for approvai. The deadlines above are contingent on this Lease being executed and the Deposit delivered no later than November 15, 2006. In the event that, for any reason, City does not approve or disapprove the Plans and Specifications by the deadlines above, such Plans and Specifications shail be deemed approved by City. If the City disapproves the Plans and Specifications, the City shall promptly set forth in writing its reasons for disapproval and the Landlord shalf prepare revised Plans and Specifications for the City's review and approval within seven (7) days of receipt of the revised Plans and Specifications. Any delay beyond the deadlines listed above, including the disapproval of the Plans and Speci�cations by the City, shall extend all deadlines in this Lease, at Landlord's option, by the exact number of days as the City's delay. Landlord warrants that the Police District O�ce when constructed by Landlard shall be (i} in compliance with the Plans and Specifications as approved by City; (ii) in compliance with all applicable Legal Requirements; and (iii) constructed in a good antl workmanlike manner, City's bfl:1343664.03 3 �c�-��a approval of any Landlord's Plans and Specificafions shaN not operate as a release of Landlord's obligation to construct the Police Districf O�ce in accordance with the requirements of this Lease. Landlord may make changes or modifications in the Pians and Specifiications from time to time during the cflurse of cflnstruction; provided that with respect to any material change (as defined to be a change that affects quantity andlor quality and/or function) or modification, Landlord shall obtain the wntten approval of City. Landford shaii obtain afi necessary building permits and authorizations necessary to permit the construcfion of the Police District Office in accordance with fhe approved Plans and Specifications as summarized in Exhibit D. (b) Landford's construction of the Police District O�ce shall be commenced promptly after the issuance of a building permit and shall be diligently pursued in order to have the Police District Office "Substantiallv Completed" by October 15, 2007 (the "Tarqet Deliverv Date") assuming the Plans and Specifications for the shell are approvetl by the City by January 15, 2607, and for the interior by March 22, 2007. For each day after November 15, 2006, that passes without the City's approval ofi the Plans and Specification, the Target Delivery Date shalf also be extended one day. As used in this Lease the term "Substantiai Completion", "Substantialiv Completed" or words of similar import shall mean that {i) the Premises are fully completed in accordance with the approved Plans and Specifications except for punch list items which will not materially interfere with City's use and occupancy of the Premises for the conduct of its business, (ii) the Premises shall be free from any and all construction defects relating to Landford's construction which would materially interfere with City's use and occupancy of the Premises for the contluct of its business, (iii) the City has granted to Landiord an occupancy certificate permitting City to take occupancy of the Premises notwithstanding such punch list items (which occupancy certificate may be a temporary ce�ificate of occupancy so long as Tenant may legally take possession of the Premises and operate its business therein). Landlord shall deliver sole and exclusive possession of the Premises to City upon Substantial Completion of the Police District Office and shall provide City with written notice of its intent to tleliver possession of the Police District Office specifying the estimated date of issuance of the certificate of occupancy or the temporary certificate of occupancy, as the case may be, as soon in advance of the anticipated delivery date as is reasonably practicable. Provided however, the City has the right to terminate this Agreement and receive back its $50.000.00 Deposii if Landlord has not received a building permit by March 1, 2007. (c) During the course of construction of the Police District Office, City, its employees, agents and contractors may enter upon the Premises at reasonable times with prior written notice for the purpose of inspecting such construction, upon the condition that City, its employees, agents or contractors will not unreasonably interfere with Landlord's employees, agents or contractors. City shalf indemnify and hold harmless Landlord from and against any damages, costs, losses or liabilities arising out of the negligence or willful misconduct of City, its employees, agents and contractors during the construction process. (d) Landlord shall cause the construction of the Police District O�ce to be completed no fater than ihe Target Delivery Date, provided that if construction is delayed as a result of any Force Majeure Event (any or all such delays are herein sometimes referred to as "Unavoidable Delavs°), the Target Delivery Date shall be e�ended by the amount of time of such Unavoidable Delays M1:1343664.03 G4 D(P -�j�� 4. TERM. The term ofi this Lease shall be ten (10) years beginning on the "Lease Commencement Date" which shall be the date that the Police District Office is Substantially Completed and delivered to City. If the Lease Commencement Date is a date other than the first day of a calendar month, the term shall expire ten (10) years after the first day of the first full cafendar month after the Lease Commencement Date and shaff, accordingly, include the period between the Lease Commencement Date and the end of the calendar month in which the Lease Commencement Date occurs. Landlord and Cify agree that upon the Substantial Completion of the Police District Office, Landlord and City shali execute a formal acknowledgment setting forth the Lease Commencement Date, the e�iration date of the initial term, and the dates by which Gity must exercise the Renewal Options (as defined in Section 5 below). 5. OPTIONS FOR ADDiTIONAL LEASE TERM. Landiord hereby grants to City the right and option to renew and extend this Lease (the "Renewal Option") for one (1) additional period of five (5) years (the "Renewal Term") by notice to the Landlord to be given by the City in writing not less than 180 days prior to the expiration of the initial term of this Lease. The Renewal Term shall be subject to the same terms, conditions and provisions as set forth herein with the exception that the amount of Base Rent payable for the Renewal Term shall be in accortlance with the terms of Section 6 of this Lease. 6. DEPOSIT AND BASE RENT. (a) The City shall deliver $50,000 to Landlord as a Deposit on the date hereof. Any delay in the Gity's delivery shall permit the Landlord to delay any or a!I deadlines mentioned in the Lease by an equal delay, at its option. Landlord shall apply the Deposit to the construction costs. Notwithstanding the forgoing, if Landlord defaults under this Lease before the Lease Commencement 6ate, and Landlord does not cure with an applicable cure period, ihen Landlord shall return the Deposit. The Deposit shall be credited to the first year's Base Rent or to the City's purchase of the Premises. (b) City shall pay the Landlord (at the address set forth in Section 29) as monthly rent ("Base RenY') for the Premises commencing on the Lease Commencement Qate and continuing throughout the first year of the initial term of this Lease the monthly rental of: $65,000.00 The monthly Base Rent for the second year of the term shall be $65,000.00 increased by 5% (i.e., $68,250). For every year thereafter during the initial term and continuing into the Renewal Term, the monthfy Base Rent shall increase 10% every year. The Base Rent shall be paid in advance on the first day of each calentlar month during the initial term and the Renewal Term. If the Lease Commencement Date is other than on the first day of a calendar month, the Base Rent between the Lease Commencement Date and the first day of the following calendar month shall be apportioned pro rata on a per diem basis and payable on the Lease Commencement Date. M11343664.03 �� ���� Noiwithstanding the foregoing, the City acknowledges that the Base Rent may increase or decrease depending on ths final cost of the Police District Office which has been approved by the City and Landlord. The City has the option to pay the increase on or before fhe lease commencement date or add it to the monthly Base Rent (interest only ) with principle amount being add on to the Option to Purchase price. 7. USE OF PREMISES. City shall use the Premises as a police district office, including but not limited to first floor indoor parking, a communiry room and upper level o�ce. The Premises shall not be used for incarceration of individuals without the prior written consent of Lantllord. City shail not use or occupy the Premises or permit the Premises to be used or occupied contrary to any applicable zoning and other Legal Requirements or in a manner which would violate any certificate of occupancy affec6ng the same. 8. LANDLORD WARRANTIES AND CONDITION OF PREMISES. a) Landlord warrants and covenants to City that the Police District O�ce wi(I be of good quality and new materials and equipment, that the work wilf be free from any construction defects, and that the work will conform to the Plans and Specifications for a period of one year beginning on the Lease Commencement Date. The one year warranties shall apply whether the City leases the Premises or purchases the Premises prior to the first year anniversary of the first day the City occupies the premises. b) In the event there is any defect in the contlition of the Police District Office during the periotl of one year from the Lease Commencement Date, City shall give Landlord written notice of such defect and Landlord shall promptly, at its sole cost, diligently effect the necessary repairs and use its best effort to avoid interfering with the City's operation of its business in the Premises or any construcfion work being performed by fhe city. Landlord shall provide City with advance notice of the schedules for any work to be performed by the Landlord herein. 9. LAWS AND ORDINANCES. City shall fully comply with and obey all Legal Requirements that are specifically applicable to City's use of the Leased Premises. 10. MAINTENANCE AND REPAIRS. Landlord, at Landlortl's sofe cost and expense, shafl maintain and repair in good condition and in compliance with all Legal Requirements the exterior walis, roof, foundation, floors, and other structural elements of the Premises and the electrical, plumbing and sewage facilities up to the point of entry to the Police District Office in accordance with the Maintenance Schedule. Except as set forth above, City shall, at City's sole cost and e�ense, repiace, maintain and repair the Premises so that at all times the Premises shall be in good order and repair and in compliance with all Legal Requirements. City shall not cause or permit any waste or deterioration to the Premises. Nothing contained in the foregoing provisions of this Section 10, however, shali be deemed or construed as making City responsibie or liabie fior paying (i) any costs associated with construction defects which are cavered by Landlord's warranty contained in Section 8 above, (ii) any repairs covered by any warranties (including any equipment warranties) required to be tlelivered or providetl in conneotion with the construction of the Premises or (iii) any repairs necessary to repair damage caused by Landlord to the Premises. M'I:'1343664.D3 6 U � `�c�(� 11. TAXES. A11 real estate tares and speciaf assessments levied and assessed by lawful authority against the Premises during the term of this Lease or the Renewal Option shall be timely paid by City. City shall pay all taxes and assessmenfs which are levied upon the personal properfy and business of the City, including, buf not limited to, fumiture, appfiances, equipment, machines, and other items of personal property located in or used in the operafion of City's business on the Premises. Nothing herein contained shall 6e construed to require City to pay, and Landford shafl be soieiy responsibie for any franchise, inheritance, estate, succession or transfer tax of Landlord or any income or excess profits ta�c assessed upon or in respect of any income of Landlord or chargeable fo or required to be paid by Landlord. 12. UTILfT1ES. City shall pay all fees and oharges for water, gas, efectricity, lights, heat, water, sewer, power, and other utilities which are used, rendered or supplied to, upon or in connection with the Premises. 13. INSURANCE (a) The City covenants and agrees with Landlord ihat the City shall at all t+mes during the term of this Lease and any Renewal Term, at the City's cost and expense, maintain the following insurance coverage: (i) Insurance protecting the Premises against all losses or damages as are insurable under present and future standard forms of extended coverage insurance policies for the locale of the Premises, upon the buildings and improvements erected on the Premises in an amount equal to its full replacement value, or self- insure such liability. (ii) Comprehensive general public liability insurance against claims for bodily injury, death or property damage occurring in, on or about the Premises in an amount of at least $1,000,000.00 combined single limit for bodily injury and property damage, including broad form contractua! liability coverage, or self-insure such liability. In lieu of a Commercial Comprehensive General Liability insurance the Landiord shali accept a Certificate as self insured for the City. In the event the City provides the Certificate of Self Insured, the Landlord may elect to o6tain an insurance rider for an amount above the State of MN statutory liability limits, Landlord may add the cost of the rider, thus increasing the Base Rent. Amount. (iii) Worker's compensation and occupational disease insurance in compliance with statutory requirements covering a!I activities of the City's employees in, on, or about the Premises. (iv) The policy required above under item (ii), if any shal! name Lantllord as an additional insured with respect to liability arising out of covered acts or omissions of the City, its o�cers, directors, M1:1343664.03 a� - y�o employees or agents and shall contain the provision that it may not be canceled or have a materiai change in coverage without first giving the Landlord not less than fen (10) days' prior wriften notice, The City shall fumish Landlord with a certificate of insurance for each policy required under this Section 13(a) within thirty (30) days of the Lease Commencement Date. (b) Waiver of Subroqation. Landlord and City, on behalf of themselves and all pa�ies claiming under them, by way of subrogation or otherwise, hereby mutually release and discharge each other and their respective officers, directors, employees and agents from any and all claims and liabilities for any loss or damage to property covered by or coverabie by the policies of property damage insurance described in Sections 13(a)(ii) and any insurance the Landlord may have above, regardless of the cause of damage or loss including without limitation the negligence of the refeased party. The failure ot either party to maintain insurance as required under this Section 13 shafl not affect this waiver in the event of loss or damage for which insurance could have been obtained. Landlord and City agree to notify their respective insurance camers of the provisions of this Section 13 and to use their best efforts to have the provisions hereof incorparated in their respective insurance policies. However, this Section 13 shall not be affected by the failure of any insurance carrier to incorporate these provisions in such poficies. (c) Notwithstanding subsection 13(a) above, neither Landlord nor City shall be required to maintain property and casualty insurance for loss or damage resulting from the risks of flood, earthquake, and acts of war or terrorism. 14. INDEMNIFICATION AND RELEASE. (a) indemnification. Landlortl and City agree to indemnify each other, and their respective affiliated departments, corporations and partnerships or other entities related by common ownership, and their respective officials, directors, oSficers, shareholders, employees, representatives and agents, against, antl to hold each other harmless from, any and all claims or demands of any third party arising from or based upon any fault or negligence of the indemnifying party, its officers, directors, or empioyees. In the event of litigation commenced by any third party against the other party involving a claim subject to the foregoing indemnification obiigation, then the indemnifying pady sha(I protect and hold the indemnified party harmless from and with respect to such litigation, and shail pay aii costs and expe�ses incurred or paid by the indemnified party in connection with such litigation, together with any judgments rendered against the indemnified party. Notwithstanding the foregoing, neither Landlord nor City shall have any obligation to indemnify against punitive or exemplary damages. (b) Release. Natwithstanding anything in this Lease to the contrary, Landlord and City each releases the other from any and all cfaims, damages or liability to their respective propedy fo the extent the damage is causetl by flood, earthquake, and acts of war or terrorism. (c) and sha{I not expand chapter 466, as ame! fiability. Statutory Liabilitv. Nothing in this Lease Agreement shall be construed to, the City's maximum liability over the limits set forth in Minnesota Statufes, ded, or any other successor law which has the effecf of limiting the Cify's M1.1343664.0.3 Ol� -�1g� 15, CHANGES IN PREMISES. City shalf not make any material or sfnictural additions, alterations or changes to the Premises withouf Landlord's prior written consent provitled, however, City may, without Landlord's consent, make alterations which are non-structural in character and the cost of which does not exceed $2,500 ("Permitted Non-Structural A{terations"). Gifij may install trade fiz�ures, machinery or other trade equipment in conformance with all applicable laws, statutes, ordinances, rules, regulations and the same may be removed at any time during the term of this Lease provided any damage caused by such removal is repaired by City. Landlord's consent to afterafions, atltlitions or improvements to the Premises (other than the Permitted Non-Structural A{ferations) shall not be unnecessarily withheld or delayed; provided that if Landlortl's lender must consent to any such alterations, it shalf be reasonable for Landlord to disapprove such alteration if Landlord's lender does not provide its consent. C+ty shall at the entl of the term of this Lease or at earlier termination and upon Landlord's written notice, remove all such alterations andlor improvements (repairing, at Citys sole expense, any damage to the Premises thereby caused) antl surrender the Premises to Landiord in the condition required by Section 22. If City fails to remove any such alterations and/or improvements or fail to so repair any damage to the Premises thereby caused, then Landlord shall have the right to so remove and repair and City shall pay Landlortl's cost for such removal and repair. City shall also have the right, at City's sole cost and expense (but without additional charge by Landlord), to enter onto and instafl upon the roof of the Police District Office a sateilite dish and /or such other telecommunications equipment as City. City agrees to repair, or have repaired, any damage caused to the Pofice District Office by City's installation or removal of the sateflite dish or other telecommunications equipment. City shafl keep the Premises free from any liens arising out of any work performed for, materials furnished to, or obligations incurred 6y Gity. Landlord shall not alter or modify the Premises, except as provided fior in Sections 3 and 47 of this Lease, in any manner which would materially and unreasonably intertere with Ci'ry's use and enjoyment of the Premises. 16. ENTRY BY PARTIES. City shall permit Landlord and the agents of Landlortl to enter upon the Premises at all reasonable times, upon prior notice and during City's business hours, to examine or inspect the condition thereof and conditions of City's occupancy or to make such repairs, additions or alterations therein as Landlord may deem necessary, or during the last ninety (90) days of the term of this Lease, or the term of any Renewal Term as the case may be, to exhibit the same, 17. DESTRUCTION OR DAMAGE TO PREMISES. In the event the Premises are damaged by fire, explosion, or other casualty or occurrence after the Gity takes possession of the Premises, such damage shail be promptly repaired by City, to the extent that insurance proceeds are available, as soon as reasonably practical following the date of such damage uniess this Lease is otherwise terminated pursuant to this Section 17. In the event of any such damage occurs and Landlord and City reasonably agree within thirty (30) days following such damage that the Premises cannot be repaired or restored within two hundred seventy (270) days following the date of such damage ("Substantial Damaqe"), City may elect to require Landlord to repair or rebuild the Premises if it provides the Landlord sufficient financial resources, from its insurance proceeds or other sources, to do so, or to terminate this Lease upon giving notice of such election in writing to Landlord within thirty (30) days following such agreement; provided that if any Substantiaf Damage occurs during the last two (2) years of the initial term and City elects not to terminate this Lease, M1:7343664.03 o�-y�� City shall be deemed to have automaticaliy exercised the Renewal Option. If Landlord fails to Substantialiy Compfete any required repair or restoration within two hundred seventy (270) days following the date of any such damage (or s�ch additional time period as Landlord and Ciry may agree in the event of Substantial Damage), Gity shall have the right to terminate this Lease by providing Landlord with a sixty (60} day termination notice, provided that if Landlord Substantially Completes such repair or restoration prior to the expiration of such si�y (60) day period, City's termination notice shall be null and void and this Lease shall co�tinue in fu{I force and effect for the remainder of the term. 18. CONDEMNATION. (a) If all or a substantial pad of the Premises are taken or conueyed as a resuit ofi such condemnation and the remaining portion of the Premises cannot be restored to permit the same use of the Premises as before such condemnation, this Lease shali terminate as of the date of such taking and Base Rent and other charges payable under this Lease shall be apportioned io such date. (b} If only a portion of the Premises is taken or conveyed as a result of such condemnation, and in City's reasonable determination the remaining portion continues to be useable or can be restored for the general use intended and being matle of the Premises immediately prior to such taking, this Lease shall terminate as of the date of such taking or conveyance as to the taken or conveyed portion of the Premises, and the Lease will continue as to the remainder of the Premises. Landlord shall restore the Premises as nearly as poss+ble to the condition and value existing prior to such taking; however, Landlord shall not be required to expend any sums in excess of the condemna6on award received by Landlord as a result of such taking. If this Lease is not terminated in part or in its en6rety, restoration shall be undedaken promptly by Landford after any such taking and Base Rent and other charges provided for under this Lease shail contin�e unabated during the period of restoration and thereafter. (c) Landlord sha11 be eniitled to receive any and ali awards that may be made in any such condemnation proceeding and City hereby assigns and transfers to Lantllord any and all such awards that may be made to City; however, City shall be entitfed to receive from the condemning authority an award for the value of any improvements made by City, if any, and for loss af City's fixtures, if any. Ciry shall not be entitled based upon the value of the unexpired term of this Lease for consequential damages to the land not so taken. 19. SUBLEASE OR ASSIGNMENT. City shall not assign, mortgage or encumber this Lease nor sublet or pe�mit the Premises or any part thereof to be used by others, without the prior written consent of Landlord in each instance, which consent shall not be unreasonably withheld. The consent by Landlord to an assignment or subietting shall not be consUued to relieve City from obtaining the consent of the Landiord to any further assignment or subletting. The consent by Landlord to an assignment of the Lease will not be given unless the assignee assumes the City's obligations under this Lease and City remains liable for all its obligations untler this Lease, including (unless othenvise agreed in writing) extensions or renewafs provided for herein. 20. 4UIET ENdOYMENT. Upon payment by the City of the Base Rent herein provided for, and upon the observance and performance of all of the agreements, covenants, terms PA1:7343664.03 � � DC� - �80 and condifions an City's part to be observed and performed, City shal{ peaceably and quietly hold and enjoy the Premises for the ferm without hindrance or inferruption by Landlord or any other person or persons lawfuily or equitably claiming by, through or under Landlord, subject, nevertheless, to the terms and condifions of this Lease. 21. SIGNS. City shall have the right and privilege ofi erecting and maintaining (at City's own expense} such signs, electric or otherwise, in or upon the Premises as it may deem necessary or advisable. Such signage shall be shown and specified in the Plans and Specification ofi the building shell package. Such signs shail not violate any local rules, regulations or ordi- nances antl sha11 be in keeping with the aesthetic climate of the locale as reasonably determined by Landlord. City shall repair any and all damages caused by the erect+on, maintenance, or removaf of any such sign or signs by City. City agrees to indemnify and save Landlord harmless from any and alI damages or claims for tlamages caused by or growing out of the erection, maintenance, existence, or removal of any such sign or signs maintained by City in or upon the Premises. Subject to the terms of this Sec6on 21, Landlord shall have the right to place "for rent" or other similar signs on the Premises during the last ninety (90) days of the initial term (provided City has not exercised the Renewal Option) or the Renewal Term of this Lease, as the case may be. 22. SURRENDER. Upon the expiration or termination of this Lease or the Renewal Term hereof, City shall surrender and deliver up the Premises, in good order, condition and repair, reasonable use antl natural wear and tear or unavoitlable casualty excepted and free and clear of any {iens, mortqages, deeds of trust or other encumbrances covering the City's interest in ihis Lease, the Premises or the Po(ice District Qffice which were agreed or consented to or suffered by City. City shali at such time, upon Landlord's request, remove at its own expense any internal or external wal{s, partitions, signs, fi�ures, alterations, improvements or other items placed in or on or installed or constructed in the Premises by City and shall repair any damage to the Premises caused thereby. 23. DEFAULT AND REMEDY, (a) CfTY'S DEFAULTS. The occurrence of any of the following shali be deemed an "Event of DefaulY' by City: (i) Failure by City to pay Base Rent as herein provided within ten (10) days after the same is past due and owing; or (ii) Failure by City to perform any non-monetary obligaiion to be performed by City hereunder or to comply with any contlition or covenant contained herein and such failure shall continue for thirty (30) days after written notice thereofi from Landlord to City; provided, however, that if the nature of City's default is such that more than thirty (3Q) days are reasonably required to cure, then Ciiy shalf not be deemed to be in defauit if City commences such cure within such thirty (30) day period and thereafter difigently pursues such cure to completion. M1:1343664.03 11 a�-y�o (b) LANDLORD'S REMEDIES. At any time that City commits an Event of Default, Landlord wilf be entiUed, at Landford's sole option (time being of the essence of all such conditions) to legally enter and take immed'+ate and exclusive possession of the Premises and all fi�ures therein and to expef City and all persons claiming through or under City. La�dlord shall also have the option to ferminate and cancel this Lease and retain any remaining Deposit, effective upon written notice to City, whereupon any and all covenants, conditions and obligations of Landlord under this Lease will cease and terminate. City agrees that notwithstanding the occurrence of any such event giving Landlord the right of termination and/or re-entry as aforesaid, and whether or not Lantllord has re-entered the Premises or gained possession thereof, and whether or not Landlord has re{et the Premises in whole or in part, Landlord will not be deemed to have accepted the surrender of the Premises or of this Lease and Gity shall remain liable for the payment of all rentals and rates/charges provided for herein and the performance of all other covenants, conditions or undertakings of City and the payment of all other sums during the full periotl which otherwise would have constituted the term of the Lease, including damages for failure to perform any of the same or for any loss of rents or damages which Landlord may then or thereafter suffer through the periotl of said entire term including, without limitation, reasonable attorneys' fees. Landiord will have the right at any time after exercising any option given to Landlord in this Section to exercise thereafter any other option hereunder or such legal rights as Landlord would have in the absence of such options. lf Landlord does not elect to terminate and cancel this Lease on account of City's breach, Landlord agrees to use reasonable difigence to relet said Premises upon the best terms fairly obtainable at the time of such reletting, consistent with the character of the Premises, and the obligation of City for damages hereuntler will be mitigated thereby to the extent of the net rents when actually received from such reletting, after deduction for all expenses of Landlord, including, without limitation, expenses attributable to alterations and repairs Landlord deems advisable to relei ihe Premises and ail reasonable attomeys' fees. (c) LANDLORD'S DEFAUL i. Landlord shall be in default under this Lease if Lantllord fails to perform or obserue any term, condition, covenant or obligation required to be performed or observed by it under this Lease for a period of thirty days (30) days after written notice thereof from City; provided, however, that Landlord shall not be in default if the term, condition, covenant or obligation to be performed by Landlord is of such nature that the same cannot reasonably be performed within such thirty-day period and Landlord has commenced performance to cure such default during the thirty-day period and thereafter diligently undertakes to complete the same. (d) CITY'S REMEDIES. At any time Landlord commits an Event of Default, City will be entitletl, at City's sole option, to exercise any of the following remedies: commence an action for specific performance and/ or damages and abatement of Base Rent, terminate this Lease, and obtain a refund of Deposit and other relief afforded by law antl equity. (e) NO WAIVER. The fai{ure of the Landlord or City to exercise any option herein provided on account of any default shall not constitute a wa+ver of the same or any subsequent default, and no waiver of any condition or covenant of this Lease by either party shall be deemed to constitute a waiver by either party of any default for the same or any other condition or covenant. M1:1343664.03 � 2 U�P'�1c�U 24. SUBORDINATION TO MORTGAGESCity shall, at the request of Landlord, subject and subordinate its leasehold estate to the lien of any mortgage evidencing a lien on, against or with respect to the Premises, or any part fhereof, whether such morfgage, or any mortgage securing any financing obtained to acquire and construcf the Premises (each, a "Mortgage'� has heretofore been, or may hereafter be, placed upon the Premises, and any renewal, modification, consolidation, replacement, or e�ension of any such Modgage, provided that the hofders of any such Mortgages agree in writing with City that notwithstantling Landlord's failure to perform its obligations under any contract or agreement, or note or evidence of debt, City's ocoupation and quiet enjoyment of the Premises shall not be disturbed, interfered with or hindered, and a(! of City's right under this Lease shafl be fully recognized so long as City faithfully performs its obligations under this Lease. (a) City shall, within twenty (20) days following request by Landlord, execute, acknowledge, and deliver to Landlord such instruments, and certificates as may be reasonably necessary to subordinate this Lease and all rights under this Lease, or to confirm such subordination and non-disturbance, to the lien of any such Mortgage and to each such renewal, subject to the conditions under subsection (a} above. (b) In the event any Mortgage is foreclosed for any reason and the mortgagee succeeds to the interest of Lantllord under this Lease, so long as such mortgagee complies with the provisions contained in subsection (a} above, City agrees to be bound to the mortgagee under all the terms of this Lease for the balance of the term of this Lease remaining with the same force and effect as if mortgagee were Landlord under the Lease, and City agrees to attorn to the mortgagee as its Landlord. City shall be under no obligation to pay rent to the mortgagee until City receives written notice form the mortgagee that it has succeeded to the interest of Lantllortl, The respective rights and obligations of City and the mortgagee upon such attornment shall, to the extent of the then remaining balance of the tarm of tfiis Lease, be the same as now set forth in this Lease. (c) [Landlord represents and warrants that as of the date of this Lease, the Premises is not subject to any mortgage, deed of trust, ground Vease or other financing instruments.] 25. ESTOPPEL CERTIFICATE. City and Landlord each agree that from time to time within ten (10) days after receipt of written notice from the other party, to execute, acknowledge and deliver to the requesting party a certificate evidencing whether or not (a) this Lease is in full force and eifect, (b) this Lease has been amended in any way, (c) there are any existing tlefaults on the part of the requesting party hereunder to the knowledge of the certifying party (or specifying the nature of any such default}, (if any), and (d) the date to which Base Rent and other amounts due hereunder, if any, have been paid. Each certificate delivered pursuant to this Section 25 may be relied on by any prospective purchaser or transferee of Landlord's or City's interest hereunder or of any part of Landlord's property or by any holder or prospective holder of Landlord's mortgage, or a mortgage or prospective mortgage of any part of Landlortl's other property. 26. ENTIRE AGREEMENT. This Lease and the exhibits attached hereto set forth ali of the terms, conditions, provisions and agreements between Landlord and City concerning the Premises, and there are no promises, agreements or undertakings, either orai or written, between M1:1343664.03 13 ��-9�0 the parties conceming the Premises other than as set forth herein. No amendment, modification or addition to this Lease, nor any waiver or discharge under this Lease, shall be binding upon the parties unless in writing and executed by the parties. 27. SEVERABILITY. If any clause or provision of this Lease is determined to be illegal, invalid or unenforceable under present or future laws effective during the term of this Lease, or the Renewal Term, then and in that event, it is the intention of the parties hereto that the remainder of this Lease shall not be afEected thereby, and that in lieu of such illegal, invalid or unenforceable clause or provision there shall be substituted a clause or provision as similar in terms to such illegal, invalid or unenforceable clause or provision as may be possible and be legal, valid and enforceable. 28. NOTICES. Whenever this Lease provides that notices shall be given, or may be given or served, upon either of the parties by the other, or whenever the law requires or gives the right of serving a notice, such notices shail be in writing and shall no1 be effective for any purpose until the same is given or served in person, or sent by registered or certified mail, proper postage prepaid, or by a nationally recognizetl overnight coutier, as follows: To Landlortl: NWM HI94, LLC 1375 St. Anthony Avenue Saint Paul, MN 55104 To City: City of Saint Paul City Real Estate 1�0� City Hall Annex 25 West 4ih Street Saint Paul , MN 55102 w/a copy to: SPPD 367 Grove Street Saint Paul, MN 55101 All notices shall be deemed received on the date of delivery when given by hand delivery, three (3) days after deposit when sent by certified or registered mail, and the next business day following deposit with an overnight courier. 29. WAIVER. No delay or fa+lure on the part of any party to this Lease to exercise any right or remedy available under the terms of this Lease or at law or in equity shall constitute a waiver of any such rights or remedies, or of any other rights or remedies. No waiver of any of the terms or conditions to this Lease shall be vaiid or effective unless made in writing and signed by the party making the waiver. The waiver of any breach, term or condition of this Lease by any party shall not be tleemetl to be a waiver of any other or further breach of such term or condition, or of any other term or condition of this Lease. 30. FORCE MAJEURE. The parties to this Lease shall be excused for the period or periods of delay in the performance of any of their respective obligations hereunder when defayed M,:��ssa.oa 14 ��� 9�6 or hindered from so doing by any cause or causes beyond their reasonable control, which shail include, without limitation, all delays caused by the other party, labor disputes, riots, civil commotion or insurrection, war or wadike operations invasion, rebellion, military or usurped power, inferrupted utility services, sabotage, , fire or ofher casualties, acts of terrorism, or act of God ("Force Maieure EvenY'). It, as a result of a Force Majeure Event, either pafi/ shall be unabie to perform its obligations within the time limit provided in this Lease, such time limit shall be tleemed e�ended for a period equal to the duration of such event, and such delay in the party's performance shall not give rise to any claim against said party for damage, or constitute a total or partial eviction, constructive or othenvise, work an abatement of rent, or relieve the other party from the fulfillment of any covenant contained in this Lease. 31 EXECUTION REQUIRED. The submission of this document for examination does not constitute an offer to Lease, and shall become effective oniy upon execution by both City and Landlord. 32. BiNDING EFFECT. This Lease shall inure to the benefit of and shall be binding upon the heirs, legatees, legal representatives, and successors and assigns of the parties, subject to all the terms, conditions and contingencies set forth herein. 33. TIME dF THE ESSENCE. All times provided for in this Lease are of the essence oi this Lease, and any extensions of such times shall also be of the essence of such Lease. 34. GOUNTERPARTS. This Lease may De executed in two or more counterparts, each ofi which shall be deemed an original and ail ofi which together shall constitute one and the same instrument. 35 GOVERNING LAW. The terms, conditions and provisions of this Lease shall be governed by and interpreted and enforced in accordance with the laws of the State of Minnesota. 36 CAPTIONS. The captions in this Lease are inserted only as a matter of convenience and for reference and in no way define, limit, amplify or describe the scope of this Lease or the intent of any provision thereof. 37. DEFAULT RATE. Any amount payable by Landlord or City under this Lease which is not paid when due shall bear interest at the lesser of (a) 12% per annum or (b) the highest rate allowed by law, from its due date untif paid (the "Default Rate"). 38. LANDLOR4'S REPRESENTATIONS AND WARRANTIES, LandVord represents antl warrants to City that: (a) Landlord has good and marketable title to the Premises free and clear of any and all liens, charges, leases (other than this LeaseJ, security interests, claims, encumbrances, antl agreements, except the Permitted Exceptions, and Landiord has acquired rights and interests in the Premises such that Landlord has full power, right and authority to execute and perform this Lease and all corporate action necessary to tlo so has been duly taken. aat�sa�s�a.a� 15 l�L� - 980 (b) The Premises does not rely on any other property or on any facilifies (other than the facilifies of public utility and water companies whose iines are in the public street(s) adjoining the Premises ar, if they cross any other property, do so through valid easements e�ending to and benefi6ng the Premises) located on any property not included in the Premises to fuifili any govemmental requirement, including, but not limited to, any zoning or other land use laws, or for the furnishing to the Premises of any utilities, including, but not limifed to, e(ectricity, gas, telephone, water, sewer or waste treafinent or recovery facilities and similarly, no building or other improveme�t not +nduded in the Premises relies on any part of the Premises to fulfill any govemmental requirement or for the fumishing to such building or improvement of any utilities. (c) No parf of the Premises is not located in a designated flootl zone and the Premises are property zoned for City's operation of the Premises for the permitted use. (d) To the best of Landlord's knowiedge on the date hereof, there is not any litigation or governmenta{, administrative or arbitration proceeding (and with respect to any such pending litigation or proceeding to which Landlord, or any a�liate of Landlord is a party, without regard to the state of Landlord's knowledge) or investigation pending or threatened (including, but not limited to, with respect to condemnation of any part of the Premises or the environmental condition of the Premises), or any basis therefor, any unsatisfied arbitration awards orjudiciai orders, or any pending complaints, charges, petitions or claims which affects or might affect the Premises or the ownership or operation thereof by City or which might affect the ability of Landford to perform its obiigations under this Lease. (e) All representations and warranties of Landlord in this Section 38 shall survive the expiration or sooner termination of this Lease. 39. BROKERS. City and Landlord each represents and warrants that it has dealt with no broker, agent or other person in connection with this Lease. City and Landlord each hereby indemnifies and holds harmless the other from and against any claims by any other broker, agent or other person claiming a commission or other form of compensation by vittue of having dealt with the indemnifying party with regard to this Lease. The provisions of this Section 41 shall survive the expiration or termination of this Lease. 40. HAZARDOUS MATERIALS. For purposes of this Lease, "Hazartlous Materials" shall mean any hazardous or toxic material, substance, pollutant, contaminant, or waste which is defined by those or similar terms or is regulated as such under any statute, faw, ordinance, rule or regulation of any locaf, state or federal authorifij having jurisdiction over the Premises or its use, inclutling but not limited to (a) the Federal Water Pollution Control Act (33 U.S.C. Section 1251 et seg.) as amended from time to time; (b) the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et se ., as amended from time to time, and regulations promulgated thereunder; {c) the Comprehensive Environmental Response, Compensation and Liabi{ity Act of 1980 (42 U.S.C. Section 9601 et se ., as amended from time to time, and regufations MM1:1343664.03 � 6 �� - 180 promulgated fhereunder; (d) Hazardous Materieis Transportation Act (49 U.S.C. Sections 5101 et se .; or (e) the Federal Clean Air Act (42 U.S.C. Section 7401 et seq.) (hereinafter collectively refeRed to as "Environmental Laws") buf shall not include supplies for cleaning and maintenance and standard o�ce supplies in commercially reasonabie amounts provided, however, that such items are incidenfal to the use of the Premises and ate stored and used in compliance with a11 Environmental Laws. Landlord represents and warrants to City that, to the best of Landlord's knowiedge, the Premises wil{ be free from all Hazardous Materials on the date Landlord tenders possession thereof to City and that the Premises are in and will remain in compliance with all Environmental Laws. City shail have the right and authority to perform an inspection of the Premises at any time for purposes of identifying and evafuating any Hazardous Materials. In the event that Hazardous Materials are found to have been present on the Premises from prior to Ciiy's occupancy, and the continued presence of same during the Lease term interferes with City's use and occupancy of the Premises during the term of this Lease, then City shall, at its option, 6e permitted to terminate this Lease without further liability hereunder, or to require Landlord to remove or abate the Nazardous Materials. Landlord agrees to defentl, indemnify and hold harmless City against all liability, damages, costs (including environmental investigatory and cfeanup costs), demands, penalties, attorneys' fees antl claim (including claims under any Environmental Laws), directiy or intlirectfy caused by or resu{ting from (a) any breach of warranty or the inaccuracy of any representation of Landlortl, or (b) any environmental regulatory violation, adverse environmental condition, or contamination resulting from the presence ofi Hazardous Materials upon, about or beneath the Premises before the effective date of the Lease, or (c) any release of Hazardous Materials or any environmental contamination or condition caused by Landlord, its employees, agents, invitees, contractors, partners, officers or directors after the effective date of the Lease. This indemnification shall survive the expiration or termination of the Lease. Gity agrees to defend, indemnify and hold harmless Landlord from and against any and all liabifity, damages, costs (including environmental investigatory and cleanup costs), demands, penalties, attorneys' fees, and cfaims (including cfaims under the Environmentai Laws) directly or indirectly caused by or resulting from: (a} any environmental regulatory violation, adverse environmental condition, or contamination resulting from any handling, storage or disposal by City, or its employees, agents, invitees, contractors, partners, officers or directors, of Hazardous Materials upon, about or beneath the Premises during the term of this Lease and any Renewai Term of this Lease; or (b) any release of Hazardous Materials or any environmental contamination or condition caused by City, its employees, agents, invitees, contractors, partners, officers or directors after the effective date of this Lease. ln the event that contamination is discovered in water or soil on or under the Premises, which contamination is aileged to have resulted from any handiing, use, storage, or disposal ofi Hazardous Materials by City on the Premises during the term of this Lease, City shall have the right to enter and visit the Premises for the purposes of observing the Premises, taking and removing soil, water or groundwater samples, conducting tests on any part of the Premises, or remediating any part of the Premises. City has no duty, however, to visit or observe the Premises M1:1343664.�3 � 7 �c�—y8� or to conduct tests. City shafi give Landlord reasonable notice before entering the Premises, except in emergency cases or in cases in which it is impracticable to give such notice. This provision shall survive the termi�ation or expiration of this Lease. Under no circumstance is the Gity financially responsible fo remediate Hazardous materials as specified by the Minnesota Pollution control Agency. 41 OPTION TO PURCHASE THE PREMISES. City shali have and is hereby granted the exclusive option (the "Purchase Option") to purchase the Premises on the terms and condifions hereinafter set forth in this Section 43 and Exhibit C. City may exercise the Purchase Option only by giving Landlord written notice. City shall have the right to exercise the Purchase Option during the forty-five (45) day period beginning on the date of such prohibition expires. If City exercises the Purchase Option, Landlord and City shall without further action automatically create a binding agreement on the terms and conditions set forth in Exhi6it C attached hereto and Landlord and City agree to execute a purchase agreement in confirmation thereof. In the event CiYy efects not to exercise the Purchase Option, City wilf, at Landlord's request and expense, execute a release of purchase option in recordable form. 42. FIRST RIGHT OF REFUSAL TO PURCHASE THE PREMISES. ) Landlord shall not sell, transfer, assign or otherwise dispose of the Premises (includ+ng, withoet limitation, by way of ground lease or similar arrangement) or any part thereof (collectively, "Disposition"J, except in connection with an assignment of the Lease as collateral to secure a loan by any lender holding a Mortgage, until at least forty-five (45) days after it has given City written notice (the "Transfer Notice") as herein provided of its intention to dispose of said interest or portion thereof. An executed dupficate original of the purchase or other agreement (the "Sale AqreemenY') shafl accompany the notice. Provided no Event of Default of City exists at the time the First Refusal Right is exercised or at closing, City shail have antl is hereby granted ihe exclusive right and option ("First Refusal RiqhY') to purchase such interest in the manner, at the price and on the terms and condifions provitled in such Transfer Notice and the Sale Agreement and the further provisions of this Section. (b) The First Refusal Right may be exercised by C+ty only by giving not+ce to Landlord at any time within forty-five (45) days after receipt of the Transfer Notice. If City exercises its First Refusal Right, the closing shall take place at the time and place provided in the Sale Agreement, provided that at City's election the closing shall not take place earlier than thirty (30) days after it exercises its First Refusal Right. This Lease and all of the terms and provisions hereof shafl remain in full force and effect until the purchase has closed, except as otherwise provided in this Lease. (c} Except as hereinaRer provided, Landlord may dispose of the Premises if Cify has not exercised its First Refusal Right within the forty-five (45) day period provided in this Section. Any Disposition by tandlord shall be null and void, if said interest is not disposed of by Landlord within one hundred twenty (120) days after Gity's First Refusal Right expires, or if it is disposed of to a party other than the transferee identified in the Sale Agreement or an affiliate of such transferee or on any terms that are materially less favorable to Landford. M1:13436G4.03 � $ o� -y�� (d) The First Refusal Right herein granted to City is a continuing nght of first refosal and shafl apply as often as any then holder of the Landlord's interest hereunder (including but nof limited to any such holder who or which shall have acquired its interest in a Disposition to which the Firsf Refasal Right applied but was not exercised) shalf make or propose to make a sale, transfer, conveyance or other Qisposition of the Premises or any interest therein during the initial term or any Renewal Term of this Lease. (e) City acknowfedges and agrees that if any lender ho(ding a Mortgage forecloses the Mortgage or acquires title to the Premises through a conveyance in lieu of foreclosure, the First Refusal Right shall not be applicable to the foreclosure sale, conveyance in fieu of foreclosure or any subsequent transfer or sale of the Premises. 43. SHORT FORM LEASE. The City and Landlord agree to execute and file a short form of this Lease and option to purchase with the Country RecordedRegistrar of Titles. 44. C17Y COMPLIANCE. With respect to the constructio� of the Police District Office the Landlord agrees to be bound by and to cause its contractors and subco�tractors to comply with the Gity requirements set forth in the attached Exhibit G. [Signatures on Following Page] M1:7343664.03 19 ��-��� IN WITNESS WHEREOF, Landlord and City have duly executed this Lease as of the day and year 6rst above written. CITY: CITY OF SAINT PAUL Mayor City Cierk Director-Office of Financial Services Department Director City Attorney (Form Approval) LANDLORD NWM HI94, LLC !ts its Its M1:1343664.03 Ol� - ��O ..� Legal Description Description of the Leased Premises Description of the Option to Putchase property Description of the drainage easement M1:1343664.03 /�-2 1� �P EXHIBIT A-2 Depiction of the Premises M1:1343664.03 2 � � � ��� EXHISIT B Permitted Exceptions M1:13-03664.03 8-� Q l.� `�/�C� EXHfBIT C Terms of Purchase Option Terms and Conditions of Option to Purchase. In addifion, the fo{lowing terms are mutually agreed upon: a) The purchase price shall be as foliows: $9,1 D0,000 in the first year of the term, increasing 10°!o each and every year thereafter. b) Real Estate Taxes: The Buyer shall pay aii reaf estate taxes and levied and pending assessments in the year of sale, and due antl payable during the term of the Lease. c) Conveyance: Seller shall convey marketable fee tile to the City by Warranty Deetl. d) Seller shall provide the City, within seven days of exercising this Option to Purchase, an updated Abstract of Title and/or an Owner's Ce+tificate of Title. Seller agrees, at Seller's cost and expense, to correct �r remove any exception of "clouds" on the title as shown on the Buyer's "Commitment to insure" title examination repod. e) Closing shall occur within 90 days following execution of this Option to Purchase, at which time the title to the Property shali be conveyed to the City. The ciosing date may be postponed antl rescheduletl by mutual agreement of the parties hereto. Closing costs shall be paid by � Seller shail provide an a�davit on the date of closing, indicating that the Seller has not used or permitted the use of the subject property as a hazardous waste disposal facility as defined in section 115A.03 Subd. 10 of Chapter 121 of the Laws of Minnesota of 1983, and that there is no basis to conclude that this property has been subject to or contaminated by the release of any hazardous substance, hazardous waste, poliutants or cont�minants as defined in Section 115B.02 of the Minnesota Statutes. g) The Seller will grant the City a non-exclusive easement to use the drainage area ficensed under the lease. M7:1343664.D3 Ci-� D � - ��d EXHIBIT D BUILDOUT SPECIFfGATIONS M1:1343664.03 �-� DC� - �8� EXHiBiT E BUILDOUT SCHEDULE E-1 � � - 9�D EXHIBiT F MAINTENANCE SCHEDULE M1:1343664.03 F-� (�C� -c /80 EXHIBIT G City compliance requirements (a) Affirmafive Action/Epual Opportunitv. Landlord agrees to be bound by and to cause its contractors and subcontractors to comply with the requirements of Section 183.o4 of the Saint Paui Legislative Code and the Rules Governing Affirmative Requirements in Employment atlopted by the Saint Paul Human Rights Commission. Landiord, its contractors, and affected subcontractors shall meet the requirements of this subsection by compfiance with the statement of affirmative action/equal opportunity requirements attached hereto as Exhibit and incorporated herein. (b) Labor Standards. Landlord agrees to be bound by and to cause its contractors, and subcontractors io compiy with the requirements of Section 82.07 of the Saint Paul Atlministrative Code. Landlord, its contractors and affected subcontractors shali meet the requirements of this subsection by compliance with the requirements set forth in Exhibit attachetl hereto and incorporated herein. {c) Apprenticeship Traininy Proqram. Landlord agrees to be bound by and to cause its contractors and suBcont�actors to comply with the Resolution adopting the Apprenticeship Training Program ("Program") as set forth in E�ibit atiached hereto and incorporated he�ein. (tl� Vendor Outreach Proqram. Landlord agrees to comply with and shall cause its contractors and subcontractors to comply with the City's Vendor Outreach Program as required by Chapter 84 of the St. Paul Administrative Code. In entering into contracts and subcontracts for the project, and this includes all soft costs, professional services, hard construction costs and other project costs, Landlard and its contractors and subcontractors shall meet the requirements set forth in Exhibit attached hereto and incorporated herein. Landlord agrees to separately sign this Exhibit to acknoHlietlge its receipt of these requirements and its agreement to comply with them. (e) Preconstruction Compliance Conference. Landlord its contractors and ail subcontractors shall attend a preconstruction compliance conference contlucted by the City staff. These conferences are held for the benefit and information of all participating contractors and subcontractors and attendance is required. Each area of compliance is reviewed by the appropriate City staff member and forms are distributed for documentation and reporting. City staff will explain the documentation at this time and will provide on-going technical assistance in an effori to keep the report requirements up to date. (fl Contract Documents, Landlord shafl incorporate in all contracts for the Project to which it +s a party the requirements of this Section and to cause its contractors antl subcontractors for the project to incorporate the requirements of this Section in all subcontracts, including contracts for purchase of materials and services. G-1 Return copy to: (DHN) PW/Technical5ervices - Real Estate 1000 City Hall Annex Presented By Referred to �� Committee: Date 2 WI�EREAS, on May 3, 2006 the Saint Paul City Council approved Final Order No. CF 06-431 for the 3 acquisition and construction of a new Western District Office for the Saint Paul Police Department to be a located at 389 Hamline Avenue North (the "Property"); and 6 WHEREAS, based on an independent real estate appraisal, city staff presented an offer to acquire the � Property with the intention of managing the design and construction of the district office, and 9 WHEREAS, the property owner, an experienced construction contractor, presented a counter offer to design 10 and construct the district office according to City specificauons, then lease the improved Property to the 11 City, with an option to purchase in the future; and 12 13 14 15 16 17 18 19 20 21 22 WHEREAS, city staff have analyzed both acquisition/construcuon approaches and determined that the lease-with-option-to-purchase would be the most cost effective; now, therefore be it RESOLVED, that the Mayor and City Council hereby authorize the Saint Paul Police Department to execute a Lease Agreement with the owner of 389 Hamline Avenue North, in a form and content substantially as set forth in the draft agreement attached hereto, for the purpose of constructing a new Western District Office for the Saint Paul Police Department. Requested by: Adopted by Council: Date Adoption Certified by Council Secretary By: Approved by Mayor: Date By: GAReal EsWte\VacaUOns�2006W6.C.04 - Phaten Crossiug\06.0 04 Phalen Cross�ng Resolutioadoc Council�le# �j� -g�'b Green Sheet # 3033261 RESOLUTION CITY OF SAINT PAUL, MINNESOTA Saint Paul Police Department g , /o/s/o� Director Form Ap ed by City Atto ie g Gc.� IO-03-D App ed by�Finan; ia1 Serviges Director � � �//7/Q� Council � la��� 23 e% ^ / ✓ `/ /� �� (File Name: AE2006-02) Revised: 7/31106 Authority (C.F. orA.O.) LEASE N0. DEPT. of PUBLIC WORKS LEASE N0. DATE: LEASE AGREEMENT THIS LEASE AGREEMENT ("Lease'� is made and entered into this _ day of . 2006, by and beriveen NWM HI94, LLC, a Minnesota limited liability company, with its principal pface of business at 1375 St. Anthony Avenue, Saint Paul MN 55104 (°Landlord") and the CITY OF SAINT PAUt, a Minnesota municipal corporation, with its offices at (°City"). In consideration of the mutual covenants and promises contained herein, and of other good and valuable consideration, the receipt and legai sufficiency of which are hereby acknowledged by both pa�ies hereto, the pa�ies for themselves, their affiliates, their successors, legal representatives and assigns, desire to define their rights, duties and liabilities with respect to this Lease, and they do hereby agtee as follows: 1, Base Rent. As defined in Section 6 of this Lease. 8uiidout Schedule. The Schedule for construction of the Building as attached hereto as Exhibit E and incorporated herein. Buildout Soecifications. The Specifications for Construction of the Building and related improvements as described herein on Exhibit D. Cit�. The City of Saint Paul, Minnesota. De asit. The $50,000 deposit from the City to the Landlord received as of the date of this Lease, as provided in Section 6(a) of the Lease. Environmentaf Laws. As defined in Section 42 of this Lease. Event of Default As defined in Section 23 of this Lease. Force Majeure Event. As defined in Section 31 of this Lease. Hazardous Materials. As defined in Section 42 of this Lease. M1:1343664.03 D Cr "`�18.�J Land. The land legally described on Exhibit A aftached hereto and incorporated herein. Lease. This Lease Agreement. Lease Commencement Date As defined in Section 4 of this Lease. Leaal Requirements. As defined in Section 3(a) of this Lease. Landlord. NWM HI94 LLC, a Minnesota limited liability company, and its permitted successors and assigns. Maintenance Schedule. The schedule for maintenance of the Premises attached he�eto as Exhibit G and incorporated herein. Mort a e. As defined in Section 24(a) of this Lease. Perrnitted Exceptions. As defined in Section 40(a) of this Lease. Pians and Soecifications. As defined in SecGon 3 of this Lease. Permitted Non-Structural Aiterations. As defined in Section 15 of this Lease. Police District Office. The approximately 37,536 square foot two-story building to be canstructed in accordance with the Build-0ut Specifications along with a surface parking lot for approximately 105 parking stalis and d4 underground parking stails as set forth in Exhibit E. Premises. The Premises shown as Exhibit A-2, being the a portion of the Land, the Police District Office and all other improvements constructed in accordance with the Buifdout Specifications. Purchase Oation. As defined in Section 43 of this Lease. Renewal Oation. As defined in Section 5 of this Lease. Renewal Term As defined in Section 5 of this Lease. Substantial Comoletion/Substantially Completed. As defined in Sectian 3(b) of this Lease. Substan6al Damaae. As defined in Section 17 of this Lease. Tarc�et Deliverv Date. As defined in Section 3(b) of this Lease. Term: The term of the Lease as set forth in Section 4. Unavoidabie Delavs. As defined in Section 3(d) of this Lease. M1:i343664.03 � �P ` 1�� 2. DEMISE OF PREMISES. Landlord hereby leases and demises to City and City agrees to lease from Landlord the Premises, together with all buildings, improvements and fixtures now or hereafter erected thereon, and ail rights, privileges, and easements appurtenant thereto. As more specificaily described in Section 3, the Landlord shall construct upon the Land the Police District Office folfowing the execution of this Lease for the use and occupancy of the City. City shall have the exclusive right to use the Premises during the term of this Lease. Notwithstanding the foregoing, the City acknowledges that the Premises do not include ail the Land. On the portion of the Land not leased to the City, the Landlord will grant the City a non-exclusive license to use a drainage area to include in their storm water management p{an. Landlord will also use this area for pervious surface pa�cing and rain garden area. 3. CONSTRUCTION OF POLICE D{STRICT OFFICE. (a) Landlord sha41 cause to be constructed upon the Land, in accordance with the Buildout Specifications, at Landlord's sole cost and expense, the Police District Office. Landlord agrees to construct the Police District Office so that when completed it is in compliance with all applicable govemmental laws, codes, directives, and regulations in effect as of the date hereof (collectively, °Leaal Reauiremenfs°). The final building specifications and components shall be based on the Buiidout S�cifications and shall be included in "Plans and Specifications° to be prepared by Landlord and approved by the City as follows: September 18, 2006 — Landlord submits Plans and Specifications for the buiiding shell September 29, 2Q06 — Gity's deadline for approval November 15, 2006 - Landlord sabmits Plans and Specifications for the building interior November 29, 2006 - City's deadline for approval The deadlines above are contingent on this lease being executed and the Deposit delivered no later than September 1, 2006. The City's approvais shail not be unreasonably withheld or delayed. In the event that, for any reason, City does not approve ar disapprove the Plans and Specifications by the deadlines above, such Plans and Specifications shall be deemed approved by City. If ihe City disapproves the Plans and Specifications, the City shall promptly set forth in writing its reasons for disapprova! and the Landlord shall prepare revised Plans and Specifications for the City's review and approval within three (3) days of receipt of the revised Plans and Specifications. Any delay beyond the deadlines listed above, inciuding the disapproval of tMe Plans and Specifications by the City, shall extend all deadlines in this Lease, at Landlord's option, by the exact number of days as the City's delay. Landiord warrants that the Police District Office when constructed by Landlord shall be () in compliance with khe Pians and Specifications as approved by City; (ii) in compliance with all applicable Legai Requirements; and (iii� constructed in a good and workmanlike manner. Cit�s approval of any Landlord's Plans and Specifications shall not operate as a release of Landlord's obligation to construct the Police District Office in acqordance with the requirements of this Lease. Landlord may make changes or modifications in the Plans and Specifications from time to time during the course of cflnstruc6on; pravided that with respect to any material change or modification, Landlord shall obtain the written approval of City, which approval shali not be unreasonably withheld or delayed and which approval or disapproval shall be given to Landlord M1:1343664.03 � � -y�� within three (3) business days of fhe date of receipt of the request therefor. Landlord shaii obtain a11 necessary buiiding permits and authorizations necessary to permit the constn�ction of the Police District Office in accordance with the approved Plans and Specifications. (b) Landlord's constn�ction of the Police District Office shall be commenced promptly after the issuance of a building permit and shall be diligentiy pursued in order to have the Police District Office °Substantial►v Comoleted° by July 1, 2007 (ihe "Taraet Deliverv Date°) assuming the Plans and Specifications for the shell are approved by the City by September 29, 2006, and for the interior by November 29, 2006. For each day after October 1, 2006 that passes without the City's approval of the Plans and Specificatio�, the Target Delivery Date shall also be e�ended one day. As used in this Lease the term °Substan6al Comoletion°, °Substantialiv Compieied" or words of similar import shall mean that (i) the Premises are fuliy completed in accordance with the approved Plans and Specifications except for punch list items which wiN not materially interfere with City's use antl occupancy of the Premises for the conduct of its business, (ii) the Premises shall be free from any and all constn�ction defects rela6ng to Landlord's constn�ction whict� wouid materially interfere with City's use and occupancy of the Premises for the conduct of its business, (iii) the City has granted to Landlord an occupancy certificate permitting City to take occupancy of the Premises noiwithstanding such punch iist items (which occupancy certificate may be a temporary certificate of occupancy so long as Tenant may legally take possession of the Premises and operate its business therein). Landlord shall deliver sole and exciusive possession of the Premises to City upon Substantial Completion of the Police District Office and shall provide City with written notice of its intent to deliver possession of the Police District Office specifying the estimated date of issuance of the certificate of occupancy or the temporary certificate of occupancy, as the case may be, as soon in advance of the anticipated delivery date as is reasonably prac�cable. {c) During the course of construction of the Police District O�ce, City, its employees, agents and contractors may enter upon the Premises at reasonabie times with prior written notice for the purpose of inspec6ng such consGuction, upon the condition that City, its employees, agents or contractors wiff not unreasonably interfere with Landlord's empioyees, agents or contra�tors. City shall indemnify and hold harmless Landlord from and againsf any damages, costs, losses or liabilities arising out of the negligence or wi{Iful misconduct of City its employees, agents and contractors during the construction process. (d) Landlord shall cause the const�uction ofi the Police District Office to be compteted na later than the Target Delivery Date, provided khat if construction is delayed as a result of any Force Majeure Event (any or all such delays are herein sometimes referred to as "Unavoidable Delavs�, the Target Delivery Date shall be extended by the amount of time of such Unavoidable Defays. 4. TERM. The term of this Lease shall be ten (10) years beginning on the "Lease Commencement Date° which shaii be the date that the Police District Office is Substantiafly Completed and delivered to City. !f the Lease Commencement Date is a date other than the first day of a calendar month, ihe term shall expire ten (10) years after the first day of the first fuli calendar month after the Lease Commencement Date and shall, accordingly, include the period between the Lease Commencement Date and the end of the cafendar monih in which the Lease Commencement Date occurs. Landlord and City agree that upon the Substantiai Completion of the Police District Office, Landlord and City shall execute a formal acknowledgment setting forth M1:734366d.03 �� the Lease Commencement Date, the expiration date of the initial term, and the dates by which City must exercise the Renewal Options (as defined in SecBon 5 below). 5. OPTIONS FOR ADDITlONAL LEASE TERM. Landlord hereby grants to City the right and option to renew and extend this Lease (the °Renewai Ootion°) for one (1} additional period of five (5) years (the "Renewal Term� by notice to the Landlord to be given by the City in wri6ng not less than 180 days prior to the expiration of the initial term of this Lease. The Renewal Term shall be subject to the same terms, conditions and provisions as set forth herein with the exception that the amount ofi Base Rent payable for the Renewai Term shall be in accordance with the terms of Section 6 of this Lease. 6. DEPOSIT AND BASE RENT. {a) The City shall deliver $50,000 to Landlord as a non-refundable Deposit on the date hereof. My delay in ihe City's defivery shall permit the Landlord to delay any or ali deadlines mentioned in the Lease by an equal delay, at its option. Landlord may use the Deposit for consUuction costs, Notuvithstanding the forgoing, 'rf Landlord defauits under this Lease before the Lease Commencement Date, and Landlord does not cure with an applicable cure period, then Landford shall retum the Deposii. Notwithstanding ihe foregoing, the Depasit shall be applied to the second years Base Rent. {b) City shall pay the Landlord (at the address set forth in Section 29} as monihly rent (°Base Rent") for the Premises commencing on the Lease Commencement Date and continuing throughout the first year of the iniGal term of this Lease the manthly rental of: $65,004.00 The monthly Base Rent for the second year of the term shal{ be $65,000.00 increased by 5% (i.e„ $68,250). For every year thereafter during the initiai term and con6nuing into the Renewal Term, the monthly Sase Rent shall increase 10°!o every year. The Base Rent shall be paid in advance on the first day of each calendar month during the initiaf term and the Renewal Term. If the Lease Commencement Date is other than on the first day of a calendar month, the Base Rent between the Lease Commencement Date and the first day of the following calendar month shall be appo�ioned pro rata on a per diem basis and payable on the Lease Commencement Date. Notwithstanding the foregoing, the City acknowledges that the Sase Rent may increase {or decrease depending on what the City approves in the final Plans and SpeciBcations or it there are materiai changes to the Police District Office or the Buildout Specifications. 7. USE OF PREMISES. City shall use the Premises as a police district office, including but not limited to first floor indoor parking, a community room and upper level offce. The Premises shall not be used for incarceration of individuafs without the prior written consent of Landlord. City shall not use or occupy the Premises or permit the Premises to be used or occupied M1:1343664.03 D l� - 9�d contrary to any applicable zoning and other Legal Requirements or in a manner which would vioiaie any certificate of occupancy affecting the same. 8. CONDITION OF PREMISES. The entry and occupation of the Police District Office by the City on or after the Lease Commencement Date shail be deemed to be an accepfance of the Police District Office in its ffien state of condition and repair, subject to any punchlist items identified within ninety (90) days after the Lease Commencement Date, Landlord's representations and warranties contained in this Lease and defects covered by constniction warranties. In ihe event there is any materiai defect in the condiGon of the Police District Office on the Lease Commencement Date, City shall give Landlord written notice of such defect within the time period set forth above and Landlord shall promptly, at its sole cost, diligenUy effect the necessary repairs and use its best effort to avoid interfering with City's operation of its business in the Premises or any construction work being perFormed by City. Landlord shall provide City with advance notice of the schedule for any work to be performed by Landlord herein. Notwithstanding the foregoirrg, Landiord warzants and covenants to City ttrat the Police District affice will be free from any material construction defects during the one-year period beginning on the Lease Commencement Date. 9. LAWS AND ORDiNANCES. City shall fully comply with and obey all Legal Requirements that are specifically applicable to City's use of the Leased Premises. 10. MAINTENANCE AND REPAIRS. Landlord, at Landlord's sole cost and expense, shall maintain and repair in good condition and in compliance with ail Legal Requirements the exterior walis, roof, foundation, floors, and other structural elements of the Premises and the electrical, plumbing and sewage facili6es up to the point of entry to the PoGce District Office in accordance with the Maintenance Schedule. Except as set forth above, City shall, at City's sole cost and expense, replace, maintain and repair the Premises so that at all Gmes the Premises shall be in good order and repair and in compliance with atl Legal Requirements. City shafl not cause or permit any waste or deterioration to the Premises. Nothing contained in the foregoing provisions of this Section 10 however, shall be deemed or construed as making City responsible or liable for paying (i} any costs associated with construc6on defects which are covered by Landlord's warranty contained in Section 8 above, (iij any repairs coveted by any warranties (including any equipment warranties) required to be deiivered or provided in connection with the construc6on of the Premises or (iii) any repairs necessary to repair damage caused by Landlord to the Premises. If any dispute arises as between Landlord and City with respect to whether a repair is covered by any such warranty or constitutes a defect or repair existing at the time of taking of possession of the Premises, such determination shall be settled by ar6itration administered 6y the American Arbitration Association under its Commerciai Arbitration Ruies and judgment on the award rendered by one arbitrator(s) may be entered in any coart having jurisdiction thereof. 11. TAXES. All real estate taxes and special assessments levied and assessed by fawful authority against the Premises during the term of this Lease or the Renewal Option shall be time(y paid by City. City shall pay afl taxes and assessments which are levied upon the personal property and business of the City, including, but not limited to, fumiture, appliances, equipment, machines, and other items of personal property located in or used in the operation of City's business on the Premises. Nothing herein contained shall be construed to require City to pay, and M1:t343664.03 ��-y��, Landiord shail be solely responsible for any franchise, inheritance, estate, succession or transfer tax of Landlord or any income or excess profits t� assessed upon or in respect of any income of Landlord or chargeable fo or required to be paid by Landlord. f2. UTILITtES. City shall pay all fees and charges for water, gas, electricity, lighfs, heat, water, sewer, power, and other utilities which are used, rendered or supplied to, upon or in connection w+th the Premises. 13. iNSl1RANCE. (a) The Ciiy covenants and agrees with Landlord that the City shall at ail times during the term of this Lease and any Renewal Term, ai the Ciiy's cost and expense, maintain the foilowing insurance coverage: (i) Insurance protecting the Premises against al! losses or damages as are insurable under present and future standard forms of extended coverage insurance poficies for the locale of the Premises, upon the buildings and improvements erected on the Premises in an amount equal to its full replacement value, or self- insure such liability. (ii) Comprehensive general public liability insurance against claims for bodily injury, death or property damage occurring in, on or about the Premises in an amount of at least $1,000,000.00 combined single limit for bodify injury and property damage, including broad form contractuaF liability coverage, or self-insure such Gability. (iii) Workers compensation and occupational disease insurancs in compliance with statutory requirements covering all activities of the City's employees in, on, or about the Premises. (iv) The policy required above under item (ii) shall name Landlord as an additional insured with respect to liability arising out of covered acts or omissions of the City, its o�cers, directors, employees or agents and shall contain the provision that if may nat be canceled or have a material change in coverage without first giving the Landiord not iess than ten (10) days` prior written no6ce. The City shall fumish Landlord with a certificate of insurance for each policy required under this SecGon 13(a) within thirty (30) days of the Lease Commencement Date. (b) Waiver of Subro ag_ tion. Land{ord and City, on behalf of themselves and a{I parties claiming under them, by way of subrogation or othervuise, hereby mutually release and discharge each other and their �espective o�cers, directors, employees and aqenfs from any and all claims and iiabilities for any loss or damage to property covered by or coverable by the policies of property damage insurance described in Sections 13(a}(ii) and any insurance the Landlord may M5;1343664.63 �� -98a have above, regardiess of the cause of damage or loss inc{uding without limitation the negligence of the released party. The failure of either party to maintain insurance as required under this Section 13 shall not affect this waiver in the event of loss or damage for which insurance couid have t�en obtained. Landlord and City agree to nofify their respective insurance carriers of the provisions of this Section 13 and to use their best efforts to have the provisions hereof incorporated in their respec6ve insurance policies. However, this Section 13 shail not be afiected by the failure of any insurance carrier to incorporate these provisions in such policies. (c) Notwithstanding subsec6on 13(a) above, neither Landlord nor City shail be required to maintain property and casualfy insurance for loss or damage resulting from the risks of flood, earthquake, acts of war or teaorism. 14. INDEMNIFICATION AND RELEASE. (ay Indemnification. Landlord and City agree to indemnify each other, and their respective affiliated departments, corporations and partnerships or other entities related by common ownership, and their respective o�cials, directo�s, o�cers, shareholders, employees, representatives and agents, against, and to hofd each other harmless from, any and ali ciaims or demands of any thi�d party arising from or based upon any fault or negligence of the indemnifying party, its officers, directors, or employees, without concurrent fault or negligence of the party to be indemnified, its officers, directors or empioyees. in the event of litigation commenced by any third party against the other party involving a claim subject to the foregoing indemnifica6on obligation, then the indemnifying party shall protect and hoid the indemnified party harmless from and with respect to such litigation, and shall pay alf costs and expenses incurred or paid by the indemnified party in connection with such litigation, together with any judgments rendered against the indemnified party. Noiwithstanding the foregoing, neither Landlord nor City shall have any obligation to indemnify against puni6ve or exemplary damages. (b) Release. Noiwithstanding anything in this Lease to the contrary, Landlord and Ciry each releases the other from any and all ciaims, damages or liability to their respective pmperty to the extent the damage is caused by fiood, earthquake, acts of war or terrorism. (c) No Conseouential or Incidental Damaaes. Notwithstanding anything in this Lease to the contrary, Landlord and Gity each releases the other from any consequential or incidentai damages. 15. CHANGES tN PREMISES. City shall not make any maferial or stnictura! additions, aiterations or changes to the Premises without Landiord's prior written consent provided, however, City may, without Landlord's consent, make alterations which are non-strvctural in character and the cost of which does not exceed $2,500 (°Perrnitted Non-Structural AlteraGons"). City may install trade fixtures, machinery or other irade equipment in conformance with ail applicable laws, statutes, ordinances, rules, regula6ons and the same may be remaved at any time during the term of this Lease provided any damage caused by such removal is repaired by City. Landiord's consent to afterations, additions or improvements to the Premises (other than the Permitted Non-Structural Alterations) shall not be unnecessarily withheld or delayed; provided that if Landlord's lender must consent to any such alterations, if shall be reasonable for Landlord to disapprove such alteration if Landlord's lender does not provide its consent. City shail at the end of M7:1343864.03 Dt�-��O the term of this Lease or at eadier termination and upon Landiord's written no6ce, remove aii such alterations andlor improvements (repairing, at City's sole expense, any damage to the Premises thereby caused) and surrender the Premises to Landlord in the cAndition required by Section 22. If City fails to remove any such aiterations and/or improvements or fail to so repair any damage to the Premises thereby caused, then Landlord shall have the right to so remove and repair and City shall pay Landlord's cost for such removal and repair. City shall aiso have the right, at City's sole cost and e�ense {but withaut additional charge by Landlord), to enter onto and install upon the roof of the Police District Office a satellite dish and /or such other telecommunications equipment as City shail reasonabiy request, subject to Landlord's reasonable approval as to the location and manner upon which such equipment is installed. City agrees to repair, or have repaired, any damage caused to the Police District Office by City's instailaiion or removaf of the sateilite dish or other telecommunications equipment. City shali keep the Premises free from any liens arising out of any work performed for, materials fumished to, or obligations incurred by City. Landiord shal! not alter or modify the Premises, except as provided for in Sec6ons 3 and 47 of this Lease, in any manner which would materiaily and unreasonabfy interfere with City's use and enjoyment of the Premises. 16. ENTRY BY PARTIES. City shall permit Landiord and the agents of Landlord to enter upon the Premises at all reasonabie times, upon prior notice and during City's business hours, fo examine or inspect the condition thereof and conditions of City's occupancy or to make such repairs, additions or alterations therein as Landlord may deem necessary, or during the last ninety (90) days of the term of this Lease, or the term of any Renewai Term as the case may be, to exhibit the same. 17. DESTRUC7'ION OR DAMAGE TO PREMISES in the event the Premises are damaged by fire, explosion, or other casualty or occurrence, such damage shall be promptly repaired by City, at the City's expense, as soon as reasonably practical foAowing the date of such damage uniess this Lease is otherwise terminated pursu�nt to this Section 17. In the event of any such damage occurs and Landlord and City reasonably agree within thirty (30) days following such damage that the Premises cannot be repaired or restored within two hundred seventy (270) days following the date of such damage ("Substantial Damaqe�, City may elect to require Landlord to repair or rebuiid the Premises if it provides the Landiord su�cient financiaf resources, from its insurance proceeds or other sources, to do so, or to terminate this Lease epon giving notice of such election in writing to Landlord within thirty (30) days following such agreement; provided that if any Substantiai Damage occurs during the last hvo (2j years of the initial term and City elects not to terminate this Lease, City shall be deemed to have automatica{ly exercised the Renewal Op6on. If Landiord fails to Substantialiy Gomplete any required repair or restoration within two hundred seveniy (270) days following the date of any such damage jor such additionaf time period as Landlord and City may agree in the event of Substantiai Damage), City shail have the right to terminate this Lease by providing Landlord with a sixty (60) day terminatioo notice, provided that if Landlord Su6sfantialiy Completes such repair or restorafion prior to the expiration of such sixty (60) day period, City's termination notice shai� be null and void and fhis Lease shali continue in fuii force and effect for the remainder of the term. If the casualty or the repairing or rebuilding shall render the Premises unusable by the Gity in whole or in part, there shall be no abatement in Base Rent in recogni6on of the City's insurance of the Premises. M7:1343fi64.Q3 o����v � (a) if all or a substantial part of the Premises are taken or conveyed as a result of such condemnation and the remaining portion of the Premises cannot be restored to permit the same use of the Premises as before such condemnation, this Lease shail terminate as of the date of such taking and Base Rent and other charges payable under this Lease shall be apportioned to such daEe. (b) If only a portion of the Premises is taken or conveyed as a result of such condemnation, and in Cit�s reasonable detertnination the �emaining portion continues to be useable or can be restored for the general use intended and being made of the Premises immediately prior to suoh taking, this Lease shail ierminate as of the date of such taking or conveyance as to the taken or conveyed portion of the Premises, and the Lease will continue as to the remainder of the Premises. Landlord shall restore the Premises as neady as possible to the condition and value ebsting prior to such taking; however, Landlord shall not be required to expend any sums in excess of the condemnation award received by Landlord as a result of such taking. If this Lease is not terminated in part or in its entirety, restoration shall be undertaken promptly by Landlord after any such taking and Base Rent and other charges provided for under this Lease shall continue unabated during the period of restoration and thereafter. (c) Landlord shall be entitled to receive any and all awards that may be made in any such condemnafion proceeding and City hereby assigns and transfers to Landlord any and all such awards that may be made to City; however, City shall be entitled to receive from the condemning authority an award for the value of any improvements made by City, if any, and for loss of City's fixtures, if any. City shall �ot be entitled based upon the value of the unexpired term of this Lease for consequential damages to the land not so taken. 19. SUBLEASE OR ASSIGNMENT. City shall not assign, mortgage or encumber this Lease nor sublet or permit the Premises or any part thereof to be used by others, without the prior written consent of Landlord in each insfance, which consent shall not be unreasonab{y withheld. The consent by Landlord to an assignment or subletting shall not be construed to relieve City from obtaining the consent of the Landlord to any further assignment or subletting. The consent by Landlord to an assignment of the Lease wili not be given unless the assignee assumes the City's obligations under this Lease and City remains liable for all its obligations under this Lease, including (unless othenvise agreed in writing) extensions or renewals provided for herein. 20. QUIET ENJOYMENT. Upon payment by the City of the Base Rent herein provided for, and upon the observance and performance of all of the agreements, covenants, terms and conditions on City's part to be observed and performed, City shall peaceably and quietly hold and enjoy the Premises for the term without hindrance or interruption by Landlord or any other person or persons lawfully or equitably claiming by, through or under Landlord, subject, nevertheless, to the terms and conditions of this Lease. 21. SIGNS. City shall have the right and privilege of erecting and maintaining (at Ciiy's own expense) such signs, electdc or otherwise, in or upon the Premises as it may deem necessary or advisable. Such signs shall not violate any local rules, regulations or ordinances and shall be in keeping with the aesthetic climate of the locale as reasonably determined by Landlord. M1:13d3664.03 � � v c�—��� City shall repair any and all damages caused by the erection,.maintenance, or removal of any such sign or signs by City. Gity agrees to indemnify and save Landlord harmless from any and a!l damages or claims for damages caused by or growing out of the erection, maintenance, existence, or removal of any such sign or signs maintained by City in or upon the Premises. Subject to the terms of this Section 21, Landlord shall have the right to Qlace °for rent° or other similar signs on the Premises during the last ninety (90) days of the initial term (provided City has not exercised the Renewal Option) or the Renewal Term af this Lease, as the case may be. 22. SURRENDER. Upon the expiration or termination of this Lease or the Renewal Term hereof, City sfiall surrender and deliver up the Premises, in good order, condition and repair, reasonable use and natural wear and tear or unavoidable casualty excepted and free and clear of any fiens, mortgages, deeds of irust or other encumbrances covering the Ciiy's interest in this Lease, the Premises or the Police District Office which were agreed or consented to or suffered by City. City shall at such time, upon Landlord's request, remove at its own expense any intemal or extemal walls, par�tions, signs, fixtures, alterations, improvements or other items p(aced in or on or installed or consUucted in the Premises by City and shall repair any damage to the Premises caused thereby. 23. DEFAULT AND REMEDY. (a) Citv's Defaults. The occurrence of any of the following shall be deemed an °Event of DefaulY by City: (i) Failure by City to pay Base Rent as herein provided within fen (10) days after the same is past due and owing; or (i� Failure by City to perform any non-monetary obligation to be performed by City hereunder or to comply with any condiGon or covenant contained herein and such failure shall continue for thirty (30) days after written notice thereof from Landlord to City; provided, however, that if the nature of City's default is such that more than thirty (30) days are reasonably required to cure, then City shall not be deemed to 6e in defautt if City commences such cure within such thirty (30) day period and thereafter diligently pursues such cure to compietion. (b) LANDLORD'S REMEDIES. At any time that City commits an Event of Defaelt, Landlord will be entiUed, at Landlord's sole option (time being of the essence of all such conditions) to legaliy enter and take immediate and exclusive possession of the Premises and all fixtures therein, and to expel City and all persons cfaiming through or under City. Landlord shall also have the option to terminate and cancel this Lease and retain any remaining Deposit, effective upon written notice to City, whereupon any and all covenants, conditions and obligations of Landlord under this Lease will cease and terminate. City agrees that notwithstanding the occurrence of any such event giving Landlord the right of termination and/or re-entry as aforesaid, and whether or not Landlord has re-entered the Premises or gained possession thereof, and whether or not Landlord has relet the Premises in whole or in part, Landiord will not be deemed to have accepted the surrender of the Premises or of this Lease and City shall remain liabie for the nn:��ssa.oa 11 D�o — �� paymerrt of a0 rentals and rateslcharges provided for herein and the performance of ali other covenants, conditions or undertakings of City and the payment of alf other sums during the fuli period which othenvise woufd have consfituted the term of the Lease, including damages for failure to perform any of the same or for any loss of rents or damages which Landlord may then or thereafter sufifer through the period of said en6re ierm including, without limita6on, reasonabie attomeys' fees. Landlord wil! have the right at any 6me after exercising any option given to Landiord in this Section to exercise thereafter any other option hereunder or such lega! rights as Landlord would have in the absence of such options. if Landiord does not elect to terminate and cancel this Lease on account of City's breach, Landlord agrees to use reasonable diligence to relet said Premises upon the best terms fairiy obtainable at the time of such reletting, consistent with the character of the Premises, and the obligation of Ciiy for damages hereunder will be mitigated thereby to the extent of the net rents when actually received from such reletting, after deduction for all expenses of Landlord, including, without limitation, expenses attributable to alteraGons and repairs Land{ord deems advisable to refet the Premises and afl reasonable attomeys' fees. (c) LANDLORD'S DEFAULT. Landlord shail be in default under this Lease if Landlord fails to perform or observe any term, condition, coveoant or obligation required to be performed or observed by it under this Lease for a period of sixty (60) days after written notice thereof from City; provided, however, that Landlord shall not be in default if the term, condi6on, covenant or obligation to be performed by Landlord is of such nature that the same cannot reasonabty be performed within such thirty-day penod and Landiord has commenced performance to cure such default during the thirty-day period and thereafter diligently undertakes to complete the same. (d) NO WAIVER. The failure of the Landlord or City io exeroise any option herein provided on account of any default shall not constifute a waiver of the same or any subsequent default, and no waiver of any condition or covenant of this Lease by either party shall be deemed to constitute a waiver by either party of any default for the same or any other condition or covenant. 24. SUBORDfNAT10N TO MORTGAGES. {aJ City shall, at the request of Landlord, subject and su6ordinate its leasehold estate to the lien of any mortgage evidencing a lien on, against or with respect to the Premises, or any part thereof, whether such mortgage, or any mortgage securing any financing obtained to acquire and construct the Premises (each, a"Mortgage°) has heretofore been, or may hereafter be, placed upon the Premises, and any renewal, modification, consolidation, reptacement, or extension of any such Mortgage, provided that the holders of any such Mortgages agree in writing with City that notwithstanding Landlord's failure to perform its obligations under any contract or agreement, or note or evidence of debt, Cit�s occupation and quiet enjoyment of the Premises shaff noi be disfurbed, inferfered wit� or hindered, and a11 of City's right under this Lease shall be fully recognized so long as City faithfully performs its obligations under this Lease. (b) City shall, within twenty (20) days following request by Landlord, execute, acknowiedge, and deliver to Landiord such inshuments, and certificates as may be reasonably necessary to subordinate this Lease and ail rights under this Lease, or to confirm such M7:7343664.03 � 2 / i �.I su6ordination and non-disturbance, to the lien of any such Mortgage and to each such renewal, subject to the conditions under subsection (a) above. (c} In the event any Mortgage is foreclosed for any reason and the mortgagee succeeds to the interest of Landlorcl under this Lease, so long as such mortgagee complies with the provisions contained in subsection (a) above, City ag�ees to be bound to the mortgagee under all the terms of this Lease for the balance of the term of this Lease remaining with the same force and effect as 'rf mortgagee were Landiord under the Lease, and City agrees to attom to the mortgagee as its Landlord. City shall be under no obligation to pay rent to the mortgagee until City receives written notice form the mortgagee that it has succeeded to the interest of Landiord. The respective rights and obliga�ons of City and the mortgagee upon such attomment shall, to the extent of the then remaining balance of the term of this Lease, be the same as now set forth in this Lease. (d} [Landlord represents and warrants that as of the date of this Lease, the Premises is not subject to any mortgage, deed of trust, ground lease or other financing instruments.] � 25. ESTOPPEL CERTIFICATE. City and Landlord each agree that from time to time within ten (10) days after receipt of written notice from the other party, to execute, acknowledge and deliver to the requesting party a certificate evidencing whether or not (a) this Lease is in full forc:e and effect, (b) this Lease has been amended in any way, (c) there are any existing defaults on the part of the requesting party hereunder to the knowledge of the certifying party (or specifying the nature of any such default), (if any), and (d) the date to which Base Rent and other amounts due hereunder, if any, have been paid. , Each certificate delivered pursuant to this Section 25 may be relied on by any prospective purchaser or transferee of Landlord's or City's interest hereunder or of any part of Landlord's property or by any holder or prospective holder of Landlord's mortgage, or a mortgage or prospective mortgage of any part of Landiord's other property. � 26. ENTIRE AGREEMENT This Lease and the exhibits attached hereto set forth all of the terms, conditions, provisions and agreements between Landlord and City conceming the Premises, and there are no promises, agreements or undertakings, either oral or written, between the parties conceming the Premises other than as sei forth herein. No amendment, modification or addition to this Lease, nor any waiver or discharge under this Lease, shall be binding upon the parties unless in writing and executed by the pa�ies. 27, SEVERABILITY. If any clause or provisioq of this Lease is determined to be iliegai, invalid or unenforceabie under present or future laws effective during the term of this Lease, or the Renewai Term, then and in thaf event, it is the intention of the parties hereto that the remainder of this Lease shall not be affected thereby, and that in lieu of such i{legal, invalid or unenforceable clause or provision there shall be substituted a clause or provision as similar in terms fo such illegal, invalid or unenforceabie clause or provision as may be possible and be legal, valid and enforceabie. 28. ATTORNEY FEE5 AND EXPENSES OF ENPORCEPAENT. 1f any party to this Lease defaults, the non-defaufting party shall be entitled to recover from the defaulting party, in addition to any other cost, liabilities, or damages assessed against the defaulting party, the M7:1343fi64.03 13 �, . �♦ reasonable costs and expenses of the non-defaulting pafij in enforcing the terms of this Lease or securing ffie performance of the terms of this Lease by or against the defaulting party, including without limitation, court cost, expert and other witness fees, and attomey fees. 29. NOTICES. Whenever this Lease provides that notices shall be given, or may be given or served, upon either of the parties by the other, or whenever the (aw requires or gives the right of serving a notice, such notices shall be in writing and shati not be effective for any purpose until the same is given or served in person, or sent by registered or certified mail, proper postage prepaid, or by a nationally recognized ovemight courier, as foflows: To Landlord: NWM HI94, LLC 1375 St. Anthony Avenue Saint Paul, MN 55104 To City: City of Saint Paul w!a copy to: All notices shall be deemed received on the date of delivery when given by hand delivery, three (3) days after deposit when sent by certified or registered mail, and the next business day following deposit with an ovemight courier. 30. WAIVER, No delay or failure on the part of any party to this Lease to exercise any right or remedy available under the terms of this Lease or at law or in equity shafl constitute a waiver of any such rights or remedies, or of any other rights or remedies. No waiver of any of the terms or conditions to this Lease shail be valid or effective unless made in writing and signed by the party making the waiver. The waiver of any breach, term or condition of this Lease by any party shall not be deemed to be a waiver of any other or further breach of such term or condition, or of any other term or condition of this Lease. 31. FORCE MAJEURE, The pa�ies to this Lease shali be excused for the period or periods ofi delay in the performance of any of their respective obligations hereunder when delayed or hindered from so doing by any cause or causes beyond their reasonab{e control, which shall include, without limitation, all delays caused by the other party, �abor disputes, riots, civil commotion or insuRection, war or warlike operations invasion, rebellion, military or usurped power, interrupted utifity services, sabotage, govemmental restriction, regulations or controls, fire or other casualties, acts of terrorism, or act of God (°Force Majeure Event"). If, as a result of a Force Majeure Event, either party shafl be unabfe to perform its ob{igations within the time limit provided in this Lease, such time limit shall be deemed extended for a period equal to the duration of such event, and such delay in the party's performance shall not give rise to any claim against said party M7:134366d.03 �4 D�-��O for damage, or constitute a total or partial evic6on, construcGve or othenvise, work an abatement of rent, or relieve the other party from the fuifiliment of any covenant contained in this Lease. 32. EXECUTION REQUIRED. The submission of this document for examina6on does not constitute an offer to Lease, and shall become effective only upon execution by both City and Landlord. 33. BINDING EFFECT, This Lease shall inure to the benefit of and shali be binding upon the heirs, legatees, legal representatives, and successors and assigns of the parties, subject to au the terms, conditions and con6ngencies set forth herein. � 34. TIME OF THE ESSENCE. All times provided for in this Lease are of the essence of this Lease, and any extensions of such times shall also be ofi the essence of such Lease. 35. CoUNTERPARTS. This Lease may be executed in two or more counterparts, each of which shafl be deemed an original and afl of which together shafi consUtute one and the same instrument. 36. GOVERNING LAW, The terms, conditions and provisions of this Lease shall be govemed by and interpreted and enforced in accordance with the laws of the State of Minnesota. 37. CAPTIONS. The captions in this Lease are inserted only as a matter of convenience and for reference and in no way define, limit, amplify or describe the scope of this Lease or the intent of any provision thereof. 38. DEFAULT RATE. Any amount payahle by Landlord or City under this Lease which is not paid when due shall bear interest at the tesser of (a)12% per annum or (b) the highest rate allowed by law, fmm its due date until paid (the °Default Rate°). 40. LANDLORD'S REPRESENTATIONS AND WARRANTIES. Landlord represents aod warrants to City that: (a} Landlord has good and marketabie tiUe to the Premises free and clear of any and all liens, charges, leases (other than this Lease and the Prime Lease), security _ interests, daims, encumbrances, and agreements, except those matters listed on Exhibit B hereto (the °Permitted Exceotions"), and Landlord has acquired rights and interests in the Premises such that Landiord has full power, right and authority to execute and perform this Lease and all corporate action necessary to do so has been duly taken. _ (b) The Premises does not rely on any other property or on any facilities (other than the facilities of public utility and water companies whose lines are in the public street(s) adjoining the Premises or, if they cross any other property, do so through vafid easements e�ending to and benefiting the Premises) iocated on any property not included in the, Premises to fulfill any govemmental requirement, inciuding, but not limited to, any zoning or other iand use laws, or for the fumishing M1:1343664.03 15 � CP - �/�'U to the Premises ofi any utilities, including, but not limited to, electricity, gas, telephone, water, sewer or waste treatment or recovery facilities and similady, no huilding or other improvement not included in the Premises relies on any part of the Premises to fulfiil any govemmental requirement or for the fumishing to such building or improvement of any utilities. (c) No pari of the Premises is not locaied in a designated flood zone and the Premises are property zoned for City's operation of the Premises for the permitted use. (d) To the best of Landlord's knowledge on the date hereof, there is not any litigation or govemmental, administrative or arbitration proceeding (and with respect to any such pending liGgaGon or proceeding to which Landlord, or any affiliate of Landlord is a pa�t}+, without regard to the state of Landlord's knowledge) or inves6gation pending or threatened (including, but not limited to, with respect to condemnation of any part of the Premises or the environmental condiiion ofi the Premises), or any basis therefor, any unsatisfied arbitration awards or judicial orders, or any pending complaints, charges, petitions or ciaims which affects or might affect the Premises or the ownership or operation thereot by City or which might aflect the ability of LandloM to perform its obligations under this Lease. (e) Afl representations and warranties of Landlord in this Section 41 shall survive the expiration or sooner termination of this Lease. 41. BROKERS. City and Landlord each represents and warrants that it has dea)t with no broker, agent or other person in connection with this Lease. City and Landlord each hereby indemnifies and holds harmless the other from and against any claims by any other broker, agent or other person ciaiming a commission or other form of compensation by viriue ofi having dealt with the indemnifying party with regard to this Lease. The provisions of this Section 41 shall survive the. expiration or termination of this Lease. A2. HAZARDOUS MATERIALS. For purposes of this Lease, °Hazardous Materials° shall mean any hazardous or toxic material, substance, pollutant, contaminant, or waste which is defined by those or similar terms or is regulaied as such under any statute, law, ordinance, rule or regulation of any local, state or federal authority having jurisdiction over the Premises or its use, including but not limited to (a) the Federal Water Poilution Control Act (33 U.S.C. Section 1251 et seq.) as amended from time to 6me; (b) the Resource Conservation and Recovery Act of 1976 (42 U.S.C. Section 6901 et s., as amended from time to time, and regufafions promuigated thereunder; (c) the Comprehensive Enviroomental Response, Compensation and Liability Act of 1980 (42 U.S.C, Section 9601 et se ., as amended from time to time, and regulations promulgated thereunder, (d) Hazardous Materiafs Transporfation Act (49 U.S.C. Sections 5101 gt se .; or (e) the Federal Clean Air Act (42 U.S.C. Section 7401 et seq.) {hereinafter collectively referred to as 'Environmental Laws") but shail not inciude supplies fior cleaning and maintenance and starniard office supplies in commercially reasonabie amounts provided, however, that such items are incidental to the use of the Premises and are stored and used in compliance with all Environmental Laws. M,:��ssa.oa 16 Ol� —9c�0 Landlord represents and warrants to Cify that, to the best of Landlord's knowledge, the Premises will be ftee from all Hazardous Materials on the date Landlord tenders possession thereof to City and that the Premises are in and wiil remain in compliance with all Environmental Laws. City shafl have the right and authoriiy fo perform an inspection of the Premises at any time for purposes of identifying and evaluating any Hazardous Materials. In the event that Hazardous Materiais are found to have been present on the Premises from prior to City's occupancy, and the continued presence of same during the Lease term interferes with City's use and occupancy of the Premises during the term of this Lease, then City shafl, at its option, be permitted to terminate this Lease without further fiabiliiy hereunder, or to require Landlord to remove or abate the Hazardous Materia4s. Landlord agrees to defend, indemnify and hold harmless City against all fiability, damages, costs (including environmental investigatory and cleanup costs), demands, pehalties, attomeys' fees and claim (including claims under any Environmental Laws), direcUy or indirectly caused by or resulting from (a) any breach of warranty or the inaccuracy of any representation of Landlord, or (b) any environmental regulatory violation, adverse environmental condition, or contamination resulting from the presence of Hazardous Materials upon, about or beneath the Premises 6efore the effective date of the Lease, or (c) any reiease of Hazardous Materiais or any environmentai contamination or condition caused by Landlord, its employees, agents, invitees, contractors, partners, officers or directors after the effective date of the Lease. This indemnification shail suroive the expiration or termination of the Lease. City agrees to defend, indemnify and hoid harmless Landlord trom and against any and all liability, damages, costs (inciuding environmental investigatory and cleanup costs), demands, penalties, attomeys' fees, and claims (including claims under the Environmental Laws) directly or indirec8y caused by or resufting from: (a) any environmental regulatory violation, adverse environmental condition, or cflntamination resulting from any handling, storage or disposal by City, or its employees, agents, inv�tees, contractors, partners, o�cers or directors, of Hazardous Materials upon, about or beneath the Premises during the term of this Lease and any Renewal Term of this Lease; or (b) any release of Hazardous Materials or any environmental contamination or condiBon caused by City, its employees, agents, invitees, contractors, partnars, officers or directors after the effective date of this Lease. In the event that contamination is discovered in water or soil on or under the Premises, which contammation is alleged to have resufted from any handling, use, storage, or disposai of Hazardous Materiais 6y City on the Premises during the term of this Lease, City shall have the right to enter and visit the Premises for the purposes of obsenring the Premises, taking and removing soil, water or groundwater samples, conducting tests on any part of the Premises, or remediating any part of the Premises. City has no duty, however, to visit or observe the Premises or to conducf tests. City shall give Landlord reasonable notice before entering the Premises, except in emergency cases or in cases in which it is impracticable to give such no6ce. This provisbn shall survive the termination or expiration of this Lease. 43. OPTION TO PURCHASE THE PREMISES. City shaN have and is hereby granted the exclusive option (the "Purchase Option"j to purchase the Premises on the terms and conditions hereinafter set forth in this Section 43 and Exhibit C. City may exercise the Purchase Option only M1:13d3664.03 � � ������ by giving Landlord written notice. City shail have the right to exercise the Purchase Option during the forty-five (45) day period beginning on the date of such prohibition expires. if Cifij exercises the Purchase Op6on, Landiord and City shall withou# further ac6on automa6cally create a binding agreement on t�e terms and conditions set forth in Exhibit C attached hereto and Landlord and City agree to execute a purchase agreement in confirmation thereof. ln the event City elects not to exercise the Purchase Option, City will, at Landlords request and expense, execute a release of purchase option in recordable form. 44. EIRST RIGHT OF REFUSAL TO PURCHASE THE PREMISES. (a) Landlord shail not sell, transfer, assign or otherwise dispose ofi the Premises (including, without limitation, by way of ground lease or similar arrangementj or any pad thereof (coiiectively, °Disoosition°j, except in connection with an assignment of the Lease as collateral to secure a loan by any lender holding a Mortgage, untii at least forty-five (45) days after it has given Ciiy written notice (the °Transfer Notice"} as herein provided of its intention to dispose of said interest or portion thereof. An executed dupiicate original of the purchase or other agreement (the "Sale AgreemenY) shail accompany ihe notice. Provided no Event of Default of City exisis at the time the First Refusal Right is exercised or at closing, City shall have and is hereby granted the exclusive right and option ("First Refusal RiahY) to purchase such interest in the manner, at the price and on the terms and conditions provided in such Transfer Notice and the Sale Agreement and the furiher provisions of this Section. (b) The First Refusal Right may be exercised by City only by giving notice to Landlord at any time within forfy-five (45) days after receipt of the Transfer Notice, If City exercises its First Refusal ftight, the closing shall take place at the time and place provided in the Sale Agreement, provided that at City's election the closing shall not take place eariier than thirty (30) days after it exercises its First Refusal Right. This Lease and all of the terms and provisions hereof shail remain in full force and effect un61 the purchase has closed, except as othe�wise provided in this Lease. (c) Except as hereinafter provided, Landlord may dispose of the Premises if Ciiy has not exercised its First Refusal Right within the forty-five (45) day period provided in this Section. Any Disposition by Landlord shall be nuil and void, if said interest is not disposed of by Landlord within one hundred iwenty (120) days after City's First Refusai Right expires, or'rf it is disposed of to a part}+ other than the transferee identified in the Saie Agreement or an affiliate of such transferee or on any terms that are materiaily less favorabie to Landlord. (d) The Firsi Refusal Rigfit herein granted to City is a continuing right of first refusal and shafl apply as often as any then holder of the Landlord's interest hereunder (including but not limited to any such holder who or which shali have acquired its interest in a Disposition to which the First Refusal Righf applied but was not exercised) shall make or propose to make a saie, transfer, conveyance or other Disposition of the Premises or any interest therein during the initial term or any Renewal Term of this Lease. (e) City acknawledges and agrees that +f any lender holding a Mortgage forecioses the Mortgage or acquires t+tle to the Premises through a conveyance in lieu of foreclosure, the First M1:134366d.03 � 8 0� - �g� Refusa{ Right shall not be applicable to the foreclosure sale, conveyance in lieu of foreclosure or any subsequent transfer or sale af the Premises. [Signatures on Following Pagej M1:1343664.03 19 �1��9�0 IN WITNESS WHEREOF, Landiord and City have duly executed this Lease as ofi the day and year first above written. CITY: C1TY OF SAINT PAUL Mayor City Clerk Director-Office of Financial Services Department Director City Attomey (Fortn Approval} LANDLORD NWM HI94, LLC Its Its its M79343664.03 o�-��o EXHIBIT A Legal Description M7:1343664.03 A-1 U�P � ��d EXH►B1T A-2 Depiction af the Premises M1;1343664.03 �1-2 wN v aa la. � � in 3� �� a ,,,,, 2 . ui q V W N IG W �2 �nv �� ° �� O � s 60 o Gm ~ &m N �G � j 7 V Z� O g "'s a�a pu' i3y ~ � ~ �� o � C � O Q � y R a � � ea •P �, o ._ � _ � o m ' O � o a 3 G = m m m O N� �, ��i � � � �A�. !� y ��.. , " � J �/ � 4r�, r r ,, �� �"�'� ../` . �".� r3: �„T. � • 'f :� ¢✓ ,,'�, i� �. .y ✓ �� r, �� , � � � � � �� a ¢q0 � SCN ��. < � �� ial i ./"}' 4 '' mo th � � V � c�l y a m =�VQ Y � a ���:�.' _ . � r ��� � .�. �'"fi,�`„ ��^��'�«°.;, ��� . g` ; s „ � � �.� �a � �� � �:. � - � A a�:> � , ���W.. . ' ;�.,' �.;� ;';a:; ` , t'.i,... '".'s`.0 �6� 4 w:"';^� � �� ,;�`,�,. -,.w'�:`�� :.SC{� N O y 8 m� <N�O �� ri W N � M < ' � € D v m � = m `c a 6� a � o' m o m m m � m � U Q t U Q o 0 0@ �� m a$U4 VJ� � Ny O o r- r 2 O U �� Z�1U Z Z�, LLUO � z 4 � � q ¢ O � � � fD O V m � � m m z L�l W c c 'y a—W� w> �a m m o m � m m C t J� m m` m � � � ` � � 3 0 m Z 0 �� 2 Z m � Q � ��� �� EXNIBIT B Permitted Exceptions M7:1343664.0.3 B-� o�-y�v EXHIBIT C Terms of Purchase Opfion 7erms and Conditions of Opfion to Purchase. In addition, the foilowing terms are mutualty agreed ��� a) The purchase price shaii be as follows; [$9,100,000] in the first year of the term, increasing 10% each and every year thereafter. b) Real Estate Taxes: The Buyer shali pay all real estate taxes and levied and pending assessments in the year of sale, and due and payable during the term of the Lease. c) Conveyance: Seiler shall convey marketable fee tile to the City by Limited Warranty Deed. d) Seller shall provide the City, within seven days of exercising this Option to Purchase, an updated Abstract of Title andior an OwnePs Certificate of Title. Seller agrees, at Seller's cost and expense, to correct or remove any exception of °clouds° on the title as shown on the BuyePs °Commitment to Insure° 6tie examination report. e) Closing shall occur within 90 days following execution of this Option to Purchase, at which time the title to fihe Properiy shall be conveyed to the City. The closing date may be postponed and rescheduled by mutual agreement of the parties hereto. Closing costs shall be paid by � Selfer shall provide an affidavit on the date of closing, indicating that the Seller has not used or permitted fhe use of the subject property as a hazardous waste disposal facility as defined in section 115A.03 Subd.10 of Chapter 121 of the Laws of Minnesota of 1983, and that there is no basis to conclude that this property has been subject to or contaminated by the release of any hazardous substance, hazardous waste, poliutants or contaminanis as defined in Section 1158.02 of the Minnesota Statutes. g) The Seiler wi{f grani the City a non-exclusive easement to use the drainage area licensed under the lease. M1:1343664.03 C-� a � -y�v IXH1B1T D BUILDOUT SPECiFICATIONS M,:��sea.a� D-1 D� July 10, 2006 SPECIFICATION OUTLINE for Proposed Western Police Starion Location: 389 Hamline Avenue North, St. Paul, MN. The proposed building and site improvements required for the new Westem District Police facility will need to meet rypical City office space standazds. Industry standard office space finishes will meet most of our needs with a few exceptions. The locker shower room areas and the fimess rooms wiii require special treatment. Also the building security and communications systems wili also be more complicated that a typical "office build- ouY'. A facility of this nature is occupied 24 hours a day, 7 days a week, requiring more durable floor finishes, door hardware, etc. It is also desired by the City that the facility incorporate as many Sustainable materials and Green feahues as possible and stili be economical to construct. We need to be advised as to the Sustainable(Green options that would be appropriate for this type facility and made aware of the immediate cost implications as well as long term maintenance costs andlor payback of the proposed features. Currently it is assumed that the site is "Buildable". Any required site clean-up or soil correction or special foundation work will need to be factored in after soils testing and a report can be completed by the City's tesung agency. The sections included for construction of this facility should include the following: Division Two -Sitework 02050 — Removal of exisring structure, bituminous, concrete, vegetation as needed (protect mature trees if possible), etc. from site. 02300 — Earthwork & site preparation; temporary drainage, clearing & grubbing 02370 — Erosion Control; maintain erosion control according to NPDES General Storm Water Permit under Clean Water Act. 02740 — Asphalt & Markings; install new parking lot & markings. 02830 — Fencing; Black Vinyl Chain Link Fence on North, West & South ends of secured lot. Wrought Iron fence on East side of secured lot along with gate and power operator. 02930 — Sod & seed; areas around building; landscaping shall be omamental grass, flowering bushes, ground level evergreens with wood chip mulch around building. 1-2 rain gazdens on lot. Division Three — Concrete 03300 — Cast in Place Concrete; fabrication of formwork, installation of reinforcement, pouring & finishing concrete for floor of parking ramp and metal stair panning. 03400 — Siructural Pre-cast Concrete; for Ramp ceiling/l floor of bldg. Pre-cast concrete panel fa�ade (to be determined). Division Four — Unit Masonrv 04100 — Mortar & Grout; for Brick &for CMU 04150 — Masonry Accessories; wall reinforcement, sheet steel, rebar for bond beams 04210 — Brick Masonry; single brick units OR "Innovative Brick System — M Brick" — brick panel system (to be determined). 04220 — Concrete Masonry Units; standard block wall (to be determined) for perimeter wall (behind brick panels). Precast sills for windows. 04400 — Stone veneer for fa�ade (to be determined). � �e - 9�1� Division Five — Metals 05100 — Structural Steel; steel columns, beams, anchor plates, and misc. angles & clips. 05210 — Steel Joists; Open Web Steel joists, bridging & connectors. 05310 — Steel Deck; roof deck over flat roof areas 05500 — Miscellaneous Metai; Hand & guard rails, bollards, steel stairs, lintels for masonry openings, supports for mechanical equipment, pipe thresholds at overhead doors, roof access ladder. Division Six — Wood & Plastic 06200 — Carpentry; blocking, grounds, nailers; anchoring & fastening devices; door installation, plasric laminate sills, installation of cabinets and countertops. 06410 — Custom Cabinets; fabrication of base & lower cabinets with laminate finish and decorative laminate - countertops for Community Room, Lunch/Break room, Coffee bars, and Roll Call Room. % Division Seven — Thermal & Moisture Protection 07210 — Building & Roof Insulation; Foundation, under slab perimeter, concealed insulation, nail-base roof insulation, blanket (building) insulation, polyethylene vapor barrier. 07510 — Built-Up Roofing; bituminous roofing on flat roofs, roof hatch with fixed ships ladder instaliation. 07600 — Sheet Metal Roofing & Flashing; Standing Seam metal (sloped) roof, metal flashing (decorative & roofl, scuppers, downspouts. 07900 — Joint Sealants; expansion joints & caulking materials for exterior & interior construction. Division Eieht — Doors & Windows 08110 — Steel Doors & frames; HM Frames for all door openings. Fire rated doors for Mechanical rooms. 08210 — Wood Doors; flush wood doors (to be stained) for all offices, lobby's, conference rooms, resirooms, locker rooms, fimess room, etc. 08360 — Overhead Doors; Insulated sectional overhead doors with hardware. Misc. steel framing to connect to main building structure. Garage Doors 1000,000 cycle springs (or equivalent type of garage door hazdware). Garage doors aze 12'-0" high minimum. 08400 — Entrances & Store�frnn aluminum (insulated) window system around perimeter of building. 08710 — Hardwaze; hinge EST eyed locks/cylinders, closers, panic bares, thresholds, weatherstripping, stops, push/pulls, protection plates. 08800 — Glass & Glazing; insulating glass units in exterior windows; door lights & sidelights; fire rated glazing. Bullet-proofhesistant enclosure around front desk area. Division Nine-Finishes 09250 — Gypsum Wall System; interior wall metal framing and gypsum board installation & finishing. 09300 — Tile; Ceramic tile in restrooms, floor & walls. Floors in toilet room shall all slope to drains. 09510 — Ceiling System; installing ceiling grid system & acoustical ceiling panels in all areas except for resh�ooms & mechanical azeas. 1" wide suspension track 09650 — Resilient Flooring; Vinyl floor tile in kitchen/break rooms, coffee bar areas & lobby spaces. 09680 — Carpet; carpet tiles in conference rooms & community rooms. Roll carpet in other areas. 09900 — Painting & Staining; paint walls (gypsum & CMU), paint handrails, stain wood doors. Paint for exterior metals & interior metals (subject to wear); epoxy base primer & finish coat. Paint for concrete masonry; epoxy base primer & finish coat. Paint for interior metals (not subject to wear); enamel base finish over primer. Paint for gypsum wallboard; Semi-Gloss Latex finish over primer. D� Division Ten — Soecialties 10160 — Toilet Partitions; powder coated steel 1Q200 — Louvers & Grilles; galvanized steel with insect screen. Framed aluminum wall grilles. 10400 — Identifying & Sate Signs; exterior metal letters, interior room signage, freestanding site postings for parking lot & entrance. 10422 — Fire Dept Key Access Box; "Knoxhox" by Knox Co. 10500 — Metal Lockers; 18" wide, 18" deep, 72" high with hardwaze, hooks & latches, combination locks. Benches for Iocker rooms. 10520 — Fire Extinguishers,cabinets & accessories;cabineis & locking brackets,fire blankets. 1Q80Q — Toilet Accessories; tissue dispensers, napkin disposal units & dispensers, grab bars, clothes hooks, mop hooks, stainless steel mirrors, electric hand dryers, soap dispensers. Division Twelve - Furnishines 12651— Clocks; digital clocks recesses in wall. 12690 — Floor Mats & Frames; recess floor mats in lobby areas (front & back). Division Fourteen — Convevine Svstems 142Q0 — Elevators; hydraulic passenger elevator in front & back lobby areas Division k'ifteen — Meehanical Svstem I5010 — General Mechanical Provisions; demolition, prepazation, electricai connections, temporary lights & power, trenchirig & backfilling. Pipes & Utility instailations; floor drains in garage piped into a central flammable waste/sand trap, installed close to garage entrance for Sewer Dept Vacuum Truck cleanout. Floor Drains in toilet rooms. � Emergency Generator to handle full load of site/building (natural gas) 15235 — Meters, Monitors, Gauges & Thermometers 15145 — Hangers & 5upports 152b0 — Pipe Insulation 15290 — Duciwork installation 15300 — Fire Suppression System; wet sprinkler system 15410 — Water Piping System 15420 — Waste, vent & roof drainage systems 15440 — Plumbing Fiztures; water closets, lavatories, flush valves, water coolers, showers, janitor sinks, sinks. Shower shall have hot & cold water faucet that can be hooked up to a hose for cleaning of the shower rooms. 15450 — Plumbing water supply specialties 15483 — Natural Gas Piping System 15510 — Hydronic Piping & Specialties 15530 — Refrigerant Piping 15550 — Breechings, Chimneys & Stacks 15554 — Water Tube Boilers. Y� 15671 — Air-cooled Condensing Units; roof top units. Also a roof top supplemental heating unit. 15790 — Air coils 15855 — Air filters . 15&70— Power Ventilators 15890 — Sheet Metal Work D� -98U 15910 — Auct Accessories 15936 — Grilles, Registers & Diffusers 15975 — Direct Digital Control System; energy management system that can be mn from both inside the building & fro remote location (Griffin Bldg). 15990 — Testing, adjusting & balancing *NOTE: Please provide the city with a description & price option for : I. Heatinglcooling for this building based on using rooftop style HVAC units. 2. HeatingJcooling for this building based on a central boiler/chiller system and multiple fan coil and VAV units. 3. Additional recommendations, costs and descriptions for "Sustainable/Green" options using Heat Exchanger(s), etc. **Heating of the interior parking area (to50-60 deg.) and required ventilation should be included in the base pricing. Division Sixteen — Electricai Svstem 16010 — General Electrical Provisions; demolition, cuttingJpatching, excavation & trenching 16110 — Raceways & boxes; raceway systems & boxes & fittings. 16120 — Wire & Cable; insulated copper wire 16t40— Wiring Devices; receptacles, switches, plates. l 6440 — Panelboards. 16476 — Disconnect Switches; circuit breakers � 16700 — VoicelData System Provisions; Phone & data closet, each with 2 20 amp circuits. Intercom system at the desk and within entire building (intercom system). 16500 — Lnminaires & Accessories; lights, lamps for interior (T-8 Fluorescent) & exterior (Metal Halide) 16120 — Fire Alarni & Security Systems; Card Reader system compatible with existing card key system for elevator, inside(outside doors, garage doors� & gate. Fire detection system (smoke detectors); local and remote (911 Communication Center) monitoring. Security cameras overlooking the exterior & interior of the building with desk/remote site monitoring. 16850 — Electric hand/hair dryers. FF&E will be separate & not included in the conshucrion cost This will include: - Fitness Equipment - Kitchen Equipment; Appliances - Files & Storage UnIYs - Freestanding Furniture - Workstations - Seating; task & guest - Tables Attachments• - Proposed Building Schematic Floor Plans, 3dModel Images - Site Plan - Proposed Space Plan of Facility; Parking and Office space �o � � I a` �o vi ' m E lu+..t(�x �$�5r��'' � � - a ..� - m " - . r . . E .£�__- , o � v z � _[ 39ty015 � HL' Y � I m I w� o�, I ' .. _ _ � �� N QO 1 1t 0 .. 3 �`1a015 ' � ;� I � ��- � 6 N N m 6 N � 1t � m u n `- z � � � Q a � � � � o o a a W z � � � g �$ � N� ��� � 00 V � K� F N _ .._, ��.�-r��a �'4o$a � � � �� L > Y u > i � ] n ] > � Y i �� — ��� New Facility Proposal Saint Paul Police Department Western District Office Second Floor District Team Office Space, At GYade Secure Interior Police Parking At Grade Public Entry & Meeting Rooms Created: March 11, 2004 Revised.• November 18, 2005 Undated: June 14, 2006 Prepared by: City of Saint Paul, Departrnent of Public Works, . Technical Services Division, Real Estate Section, Desigtt Group 1000 City Hail Annex, 25 West 4` Street, Saint Paul, Minnesota 55102 � � - �80 City of Saint Paul Westem District Office Saint Paul Police Dept. Facility Uses/Areas Police Public Bntrance & Lobby with direct access to Community Meeting Rooms Information Desk / Watch Office Public Restrooms in Lobby Private O�ces for Commanders Rooms for Volunteers, Special Program Staff and City Attomeys Staff Restrooms Break / Coffee Room Open Office Workstation Area for Investigators Open Office Workstation Area for Patrol Sergeants Interview Rooms & Secure Waiting Area Roll Cail - Briefing Room / Mail Center Mens' and Womens' Locker/ Shower Rooms for Police 5taff Fitness Center Secure Parking for Squad Cars and Police Personnel Secure Storage for Weapons, Equipment and Evidence Storage Areas for Records, Handouts and Office Supplies 3une, 2006 Page 2 Communitv Sqaces MeetinglAssembly Space for up to 80 Attendees, divisible to make 2 Rooms for 10-40 Attendees Public Restrooms to support Meering Rooms (4 fixtures each) Fumiture Storage and Equipment Room to support meeting Rooms Food Warming / Serving Area shazed by both Meeting Rooms Site A,rea Reauirements: Parking Spaces: (space caiculated at 320 SF per stall) Police Secured Parking for Squads & Employees (Min. 120 Stalls) 3&,400 SF Public Parking for Visitors and Community Meeting Rooms (Min 25 Stalls) 8,000 SF Buildine Footprint. Floor Plan Ootion 3 18 428 SF Estimated Total Required Site Development Area: 65,328 SF Rectuired Green Space and Setbacks (Ap�rox. 25% 1 16 332 SF Total Minimum Site Development Area 81,660 SF Facility Location: The City Real Estate Division staffaze working with the Mayors Office and the SPPD to acquire a Site located in the Midway area on Hamline Ave. just north of Highway I94 that was selected after completing a extensive investigation of location options and possibilities in the azea. A final cost estimate will be prepared and submitted upon completion of a site appraisal. � � �I City of Saint Paul Westem District Office Saint Paul Police Dept. Interior Spaces Summary: SPPD Western District OfSce: Space Name/Description Qty. SF Total SF Public Spaces _ Entrance / Lobby Area 1 200 200 Display space 2 35 70 Elevator & Stair 1 I60 160 Lobby Restrooms (Unisex - Accessible) 2 80 160 Communiry Meeting Rooms (40-60 Attendees) 2 800 1,600 Mee[ing Room ResVOOms (4 fixtures Mens & Womens) 2 240 480 Food 5erving and Wartning Area 1 120 120 Fumiture & Equipment Storage l 150 150 Value Based Initia[ive (VBI) Office (adjacent to Community Rm Area) I 120 120 NAONolunteer Room (adiacent to Communitv Rm Area) 1 150 150 Subtotal of Public Secure Police Spaces Infom�ation Desk / Watch Office (8'x 10' cubicle/work areas) Secure Meeting J Briefing Rooms {20'x22� Secure Interview Waiting Area (10'xl2') Police Entrance from Lower Level Parking (Stair & Elevator) Sr.CommanderOffice (14'x18') Small Meeting Rooms (14'x20') Telecommvnicator & Clerical Workstations (8'x8' cubicles) Intem Workstations, Admin Area (6'x8' cubicles) Community Prosecutor (Shared Private Office) Investigator Commander Office (10'x15') InvesNgaror Workstations (8'x 10' Cubicles) In[ecview Rooms (3 @ 80 SF) Patrol CommanderOfficeQO'x15') Patrol Sergeant Workstations (8'x10' Cubicles/workgroups) Roll Call / Briefing / Mail Room (30'x40' or 24'x50� Report Wri6ng Space (worksurfaces w/4-5 PCs & Printer/Faic) Mens' LockedShower Room (120 Male Officers) W omens' I.ockerlShower Room (40 Female Of£icers) General Stomge Room (IOS20' Room with shelving) Secure Storage (Weapons and Equipment) Copier/ Workroom(Suppties Staff Restrooms (Accessible, 2 Fixture each (16'x8� 6reakRoom (20'x16') Fitness Room (20'x40') Utiliry/Maintenance Room (Jan. Clo.) (10'x10') Communications J Data Svstems Closet(sl (10`x109 Subtotal Secure 2 2 1 2 1 2 3 2 1 1 10 3 I 10 1 1 120 40 2 2 2 2 L I 1 80 A40 120 160 250 280 64 48 140 150 80 90 tso 80 1,200 350 18 18 200 120 80 128 320 800 100 100 160 880 120 320 250 560 192 96 140 150 800 270 150 800 I,200 350 2,160 720 400 240 160 256 32� 800 100 200 11 June,2006 Page 3 Subtotal Interior Spaces 15,004 Calculated Spaces: Mechanical Space 5.0°l0 750 � � �. / EXHIBlT E SUILDOUT SCHEDULE E-1 / i �:I EXHIBIT "D" BUILDOUT SCHEDULE The Date of Delivery shall be The duration of the Buildout Period shall be The last day of the lst quarterly period shall be The last day of the 2nd quarterly period shall be The last day of the 3rd quarterly period shall be The last day of the Buildout Period shall be days; This Buildout Schedule shall be completed on the Date of Delivery, and shall be signed by representatives of both parties at that time. For the LESSOR: Date: For the LESSEE: Date: Real Estate Manager Ul� -�80 �-��..--� MAINTENANCE SCHEDULE M1:5343664.03 F-1 / � '• � EXHIBIT "C" MAINTENANCE SCHEDULE Page 1 of 2 Areas of Service in General: Entrances, lobby, corridors, rest rooms, and ail occupied tenant spaces. LFSSOR'S DUTIES AND RESPONSIBILITIES: The following maintenance operations shall be performed 5 times a week, Sunday through Thursday after 4:30 P.M.: General Cleaning: 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) Empty waste receptacles and replace liners; all waste to be moved to designated area; no waste to be thrown away unless cleazly marked as such or placed on top of waste receptacles; Dust desk tops. Papers, personal belongings or office equipment will not be moved. If papers aze left on ttte desk top, desk top wil] be feather dusted only; Dust telephones, file cabinets, window sills, etc; Clean and sanitize drinking fountains; Spot clean partition glass; Spot clean entrance door glass to remove fingerprints; Dust ail building surfaces within reach (ledges, partitions, etc); Properly arrange furniture in offices upon completion of work; Water plants in main entry, as needed; Clean al] sinks and minors in Leased Premises. Floor Care: 1) Vacuum all carpeted azeas; 2) Dust mop or sweep all hard surface floors; 3) Damp mop all hard surface floors, as needed; 4) Vacuum mats. Lavatory Cleaning: 1) Empty waste receptacles; 2) Clean sinks and chrome fittings with non-abrasive cleansers; 3) 5pot clean metal partitions and walls around sinks and under towel cabinets; 4) Clean and refill non-vending dispensers; 5) Clean misors; 6) Clean and sanitize toilets, seats and urinals; (7) Wet mop lavatory floors with a germicidal cieaner. T �� ' L �� EXHIBIT "C" MAINTENANCE SCHEDULE Page 2 of 2 The following maintenance operations shall be performed weekly: 1) Machine polish (spray buf� all resilient tiled floors; 2) Wash entrance door glass on both sides; 3) Dust general and executive office fumishings and horizontal surfaces. The following maintenance operations shall be perFormed monthly: 1) Spot clean walls and doors in general and executive office areas; (Spot cleaning is generally, but not exclusively, confined to areas around door knobs, light switches, push plates, etc.); 2) Wash all partition glass; 3) Vacuum vents in lavatories; 4) Scrub lavatory floors; 5) Vacuum clean upholstered furniture. The following maintenance operations shall be performed quarterly: 1) Vacuum ceiling vents in office areas; 2) Dust office paneling; 3) Wash all ceramic walls and metal partitions. The following maintenance operations shall be performed semi-annually: 1) Carpets shall be thoroughly cleaned and all stains removed. GENERAL CLEANING AND MAINTENANCE: 1) LESSOR shall provide janitor's closets and maintain them in a neat and orderly Condition at no cost to the LESSEE; 2) Police common areas and building sidewaiks for debris; 3) Spot clean carpeting as needed to remove small soiled areas; 4) Keep fire access exits clean and maintained 5) Clean exterior window glass. The dates and periods referenced in Paragraph [ ] of L,ease Agreement this shall be defined as follows: