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09-786Council File # 09-786 Green Sheet # 3072007 OF Presented by RESOLUTION � .' 1 WHEREAS, the Offi � Fin "a1 Services has negotiated an agreement with Ramsey County, 2 Department of Property Management, to extend from Mazch 1, 2009 to Febri.�ary 28, 2014, Lease 3 Agreement PW/5, said Lease being for 31 pazking stalls in the Second Street Garage adjacent to the 4 Ramsey County Government Center East building; 6 NOW THEREFORE BE IT I2ESOLVED, ihat the proper City officials aze hereby authorized and 7 directed to execute Lease Agreement PW/5. Yeas Nays Absent Requeste y Depaz of S�blic Works Bostrom � Carter � Hams ,i Helgen ,� �#Y ✓ Stark � Thune ,i Adopted by Council: Date `I/��/(1�/ Adoption Certified by Council ecretary BY� / / /i./i/Lf 1 2�G�Slr/! Approved by Mayor: Date ���Z ( BY �.lP.� � �a z . .r � Approved by the Office of F cial Services gy; �'-s"�' � Approved by City Attorney B �'' f �1s i.� � �Jlit7C/I Approved by Mayor for S on to Council By� / (�'"'�, 0� ���� ��/D-� '� Green Sheet Green Sheet 09-786 Green Sheet Green Sheet Green Sheet Green Sheet � � Departrnent/�ce/Council: Date (nitiated: FS -FinancialServices 3o-��N-o9 - Green Sheet NO 30720�7 Contact Person 8 Phone- Uepartrnent Sent To Person InitiallDate Bob Novak 0 ivaucial Seivices 0 26�8$� ] i �Attorne LisaVeit6 � '�� 2 ublicWorks — Accountiu tLauDirector Must Be on Council Agenda by (Date): Number 21JUL-09 Fw 3 �nancialServices Director � ` Routing 4 a or's O�ce 0 Doc.7ype: RESOLIJTION Order 5 oanctl I Ci Council 6 i Clerk City Clerk E-DocumentRequired: N 7 inancialServices 10U0l:FiA Document Contad: ContactPhone: Total # of Signature Pages �(Clip All Locations for Signature) Adion Requested: CONSENT AGENDA. Approve a fue-yearrenewal of Lease PW/5, an agreement to lease 31 parking spaces in the Second Street Gazage to Ramsey Counry with a 2% annual rent escalarion. RecommendaUOns: Approve (A) or Reject (R): Personal Service Contracts Must Answer the Following Qcestions: Planning Commission 1. Has this person/firm ever worked under a contract for this department� GB Committee Yes No Civil Service Commission 2. Has this person/firm ever been a ciry employee? Yes No 3. Does this person(firtn possess a skill nol nortnaliy possessed by any curtent city employee? Yes No Expiain all yes answers on separete sheet and attach to green sheet. Initiating Problem, Issues, Opportunity (Who, What, When, Where, Why): Since 1982 Ramsey County has been leasing 31 pazking spaces in the garge adjacent to RCGC-E building. The County wishes to renew the lease for another five years. Advantages If Approved: City will receive about $33,000 per yeaz in rental income. County will continue to rent spaces. -'����;�] � !9 Disadvantages If Approved: None foreseen. �� e � ��'��: 3�°: < c � �" � � � �� e Disadvantages If Not Approved: City will not receive the rent. Ramsey County will not benefit from [he parking, as they have since 1982. Total Amount of Transaction: $166,778.00 CostlRevenue Budgeted: Funainy source: Ramsey County pctivity Number. Five-year total rent Financial Information: 12321-6801 (Explain) . June 30, 2009 10.26 AM Page 1 09-786 (PW 05) Revised 03/1/09 Authority (C.F.) LEASE FINANCE DEPT. LEASE NO. PW15 LESSOR: CITY OF SAINT PAUL DEPARTMENT OF PUBLIC WORKS LESSEE: COUNTY OF RAMSEY DIVISION OF PROPERTY MANAGEMENT 660 Ramsey Countv Government Center-West CITY OF SAINT PAUL STANDARD LEASE AGREEMENT [1] Leased Premises. The LESSOR, in consideration of the payment of the Basic Rent and Additional Rent hereinafter specified to be paid by the LESSEE, and the covenants and agreements herein contained, does hereby lease, demise and let unto LESSEE the premises hereinafter referred to as the "Leased Premises", consisting of 31 parking spaces in the Second Street Garage (A.K.A. Bridge Yard) whose address is: 131 East Second Street and which is legally described as: A parking garage located under surface of Lofs 2, 3 and 4, Block 31, St. Paul Proper together with any buildings, fixtures in such buildings, improvements and structures, if any, located thereon; See Exhibit "A", plan or map of Leased Premises which is attached hereto and made a part of this agreement. [2] Term of Lease. This dates indicated below, herein. Term (Months/Years) Iease shail be in effect for a term commencing and ending on the unless terminated eariier by the LESSOR or LESSEE as provided Commencing Date Ending Date Five Years March 1, 2009 February 28, 2014 . t� ., [3] Use of Premises. The LESSEE shali use and occupythe Leased Premises forthe purpose of Vehicle Parkinq and for no other purpose without the prior written consent of LESSOR. [4j Rent. Rent shall consist of Basic Rent, which is based on availabi{ity of 31 stalis, and such Additional Rent as may apply. LESSEE shall pay all rent in advance, on the first day of the term of the lease and on the first day of each payment period thereafter as indicated in the Payment Schedule below: Schedule Total Annual Basic Rent (Monthly Payment - Commencing Date - $32,047.80 $2,670.65 $32,688.76 $2,724.06 March 1, 2009 March 1, 2010 $ per Space) $86.15 $87.87 $33,342.53 $2,778.54 March 1, 2011 $89.63 $34,009.38 $2,834.12 March 1, 2012 $91.42 $34,689.57 $2,890.80 March 1, 2013 $93.25 LESSEE shall make all payments of Basic Rent and Additional Rent to Public Works Accountinq Div., 1500 Gitv Hal! Annex, St. Paul, MN 55102. The applicable account number for City Finance Accounting Code is: 42340-6801. [5] Riuht of Entrv. At all times during the term of this lease, the LESSOR shall have the right, by itself, its agents and employees, to enter into and upon the Leased Premises during reasonable business hours or, in the event of an emergency, at any time for any legitimate purpose. [6] Insurance. (A) LESSOR'S and LESSEE'S Insurance. The LESSOR and LESSEE shall acquire during the term of this lease the following coverage: (1) COMMERCIAL GENERAL LIABILITY INSURANCE (a) LESSOR is self-insured for commercial general liability, pursuant to State Statute 466. (b) LESSEE is self-insured for commercial generai liability, pursuant to State Statute 466. (2) WORKERS' COMPENSATION INSURANCEwith not less than statutory minimum limits; and EMPLOYEftS' tIABILITY 1NSURANCE with minimum limits of at least $100,000 per accident and with an all states endorsement. LESSEE is self funded for such coverage. � �, . {a) LESSOR is seif funded for such coverage (b) LESSEE is self funded for such coverage (3) The limits cited under each insurance requirement above establish minimums; and it is the sole responsibilify ofthe LESSOR and LESSEE to purchase and maintain additional insurance that may be necessary in relation to fhis lease. (4) Nothing in this contract shall constitute a waiver by the LESSOR or LESSEE of any statutory limits or exceptions on liability. [7] Cancellation or Termination. This lease shall be subject to cancellation and termination by either party at any time during the term hereof by giving notice in writing to the other party at ninety (90) days, prior to the date when such termination shail become effective. In the event of such termination, and on the effective date of such termination, LESSOR shali return any unearned rental paid by the LESSEE without interest. [8] Notice. All notices herein provided to be given, or that may be given by either party to the other, shall be deemed to have been fully given when made in writing and deposited in the United States Mail, certified and postage prepaid, and addressed to the LESSEE at the address stated on page (1) and to the LESSOR at Office of Financial Services — Real Estate Division, 1000 City HallAnnex, Saint Paul, Minnesota 55102. The address to which the notice shall be mailed may be changed by written notice given by either party to the othec Nothing herein shall preciude the giving of such address change notice by personai service. [9] Assiqnment and Sublettinq. Except for subleases between LESSEE and its employees for vehicular parking, LESSEE shall not assign or sublet this Lease without the written consent of the LESSOR, which consent must be obtained prior to the execution of any agreement to sublease ihe Leased Premises. [10] Maintenance and Repairs. (A) LESSOR'S Responsibilities. LESSOR shall, at its own cost and expense, be responsible for all repairs, maintenance and upkeep ofthe Leased Premises, exclusive of LESSEE'S personal property and any improvements installed by or specifically for the LESSEE, including emergency repairs of any kind and routine maintenance and repair to keep the Leased Premises in good repair and safe in compliance with applicable fire, health, building and other life-safety codes. Such repairs, maintenance and upkeep shall not be deemed to include custodial duties. (B) LESSEE'S Responsibilities. LESSEE shall, at its own cost and expense, perform custodial duties to keep the Leased Premises clean and orderly in compliance with applicable fire, health, building and other life-safety codes; and shall provide all materials and suppiies necessary for the performance of custodial duties. LESSEE shall also be responsible for all repairs, maintenance and upkeep of its own personal property and to any improvements that have been installed by or specifically for the LESSEE. 3 09-786 ['11] Pavments in Case of Default. LESSEE shall pay LESSOR all costs and expenses, including reasonabie attorney's fees in any action brought by LESSOR to recover any rent due and unpaid hereunder, or for the breach or default of any of the covenants or agreements contained in this Lease, or to recover possession of said property, whether such action progresses to judgment or not. [12] Surrender of Premises. The LESSEE, at the expiration of said term, or any sooner termination of this lease, shall quit peacefully and surrender possession of said property and its appurtenances to LESSOR in as good order and condition as the propertywas delivered to the LESSEE. [13] Indemnitv. The LESSEE agrees to indemnify, defend, save and hold harmless the City of Saint Paul and any agents, officers and employees thereof from all claims, demands, actions or causes of action of whatsoever nature or character, arising out of or by reason of the LESSEE's performance or failure to perform under the terms of the Lease, orthe use by LESSEE of the Leased Premises under this agreement. It is fully understood and agreed that LESSEE is aware of the conditions of the Leased Premises and leases the same "as is". The lessor's liability shall be governed by the provisions of the Minnesota Liability Tort Act, Minn. Stat. 466.64 and other applicable law." The LESSOR agrees to indemniiy, defend, save and hold harmless Ramsey Caunty and any agents, officers and employees thereof from all claims, demands, actions or causes of action of whatsoever nature or character, arising out of or by reason of the use by the LESSOR of the remainder of the building in which the Leased Premises are located, or the performance or failure to perform by LESSOR under the terms of this agreement. [14] Holdover. Any holdover after the expiration of the term of this Lease shail be allowed only after receiving the written consent of the LESSOR. Said tenancy shall be deemed to be a tenancy only from month-to-month. All other terms and conditions of this Lease shall be applicable. [15] Pollution and Contaminants. LESSEE and LESSOR agreeto complywith all ordinances, laws, rules and regulations enacted by any governmental body or agency relating to the controi, abatement or emission of air and water contaminants and the disposal of refuse, solid wastes or liquid wastes. LESSEE shall bear all its costs and expenses of complying, or arising from failure by LESSEE to comply, with said ordinances, laws, rules, or regulations and shall indemnify, defend, save and hold harmless LESSOR from all liability, including without limitation, fines, forFeitures, and penalties arising from the failure by LESSEE to comply with such ordinances, laws, rules or regulations. LESSOR has the right to perform cleanup and charge the LESSEE asAdditional Rent for such costs should the LESSEE fail to comply. LESSOR shall bear all its costs and expenses of complying, or arising from failure by LESSOR to comply, with said ordinances, laws, rules, or regulations and shall indemnify, defend, save and hold harmless LESSEE from all liability, including without limitation, fines, 09-786 forfeitures, and penalties arising from the failure by LESSOR to comply with such ordinances, laws, rutes or reguiations. [16] Controllinq Lease. In the event there is any prior existing lease or rental agreemenf between LESSEE and LESSOR (or its predecessor in interest} covering the subject properly, it is agreed and understood that this Lease shall cancel and terminate any prior leases or rental agreements as of the effective date of this lease. [17j Destruction. In the event of damage to or destruction of the Leased Premises or in the event the premises becomes untenantable or unfit for occupancy, in whole or in part, due to such damage during the term of this Lease, LESSOR may at its option terminate the lease upon fifteen (15) days' written notice to LESSEE. The Basic Rents to be paid during the restoration period shail be abated in proportion to the percentage of loss and impairment of the use of the Leased Premises as determined by the LESSOR, times the number of days of loss or impairment. [18] Events of Default. (A) Default by LESSEE. The occurrence of any of the fol�owing events during the term of this Lease shall constitute an event of default by the �ESSEE: (1) the failure by LESSEE to timely pay Basic Rent orAdditional Rent as required by this Lease; (2) the failure by LESSEE to observe and pertorm any covenant, condition or agreement on its part to be observed or performed as required by this Lease; or [19] Compliance with Laws. The property described herein may be used for oniy the purposes stated herein. It is the sole and exclusive responsibility of the LESSEE in the use of the properly to complywith all laws, rules, regulations or ordinances imposed by anyjurisdiction affecting the use to which the property is proposed to be put. Inability or failure by the LESSEE to complywith any of said laws, rules, regulations or ordinances will not relieve the LESSEE of the obligation to pay the rental provided herei�. [20] Non-Discrimination. The LESSEE for itself, its personal representatives, successors in interest and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant running with the land, that (A) no person, on the ground of race, sex, color creed, religion, age, disability, marital status, status with respect to public assistance or national origin or ancestry shall be excluded from participating in, be denied the benefits of or be otherwise subjected to discrimination in the use of said facilities; (B) that in connection with the construction of any improvements on said lands and the furnishing of services thereon, no discrimination shall be practiced in the selection of employees and contractors, by contractors in the selection and retention of first tier 5 09-786 subcontractors, and by first-tier subcontractors in the selection and retention of second-tier subcontractors; (C) that such discrimination shall not be pracficed against the public in its access in and use of the facilities and services provided for public accommodations (such as eating, sleeping, rest and recreation) constructed or operated on the Leased Premises; and (D) that the LESSEE shall use the premises in compliance with all other requirements imposed pursuant to the Saint Paul Legislative Code Chapter 183. [21] Default Remedies. (A) LESSOR'S Remedies. In the event an Event of Default occurs under paragraph {19) of this Lease, LESSOR may exercise any one or more of the following remedies: (1) reenter and take possession of the Premises without termination of this Lease, and use its best efforts to lease the Premises to or enter into an agreement with another person for the account of LESSEE; (2) terminate this lease, exclude LESSEE from possession ofthe Premises, and use its best efforts to lease the Premises to or enter into an agreement with another in accordance with applicabie law; (3) exclude LESSEE from possession ofthe Premises, with orwithout terminating this Lease and operate the Premises itself; (4) terminate the Lease, exclude LESSEE from possession ofthe Leased Premises, sell all or any part of the Premises at the best price obtainable (provided such sale is permitted by applicable law,) such sale to be on such terms and conditions as the LESSOR, in its sole discretion, shall determine and apply the proceeds of such sale less any expenses thereof for the account of the LESSEE. (5) exercise any remedies available to it under the Minnesota Uniform Commercial Code; (6) take whatever action at law or in equity may appear necessary or appropriate to collect the Basic Rent and Additional Rent then due and thereafter to become due, or to enforce perFormance and observance of any obligation, agreement or covenant of the LESSEE under this Lease. (7) in exercising any of its remedies set forth in this Section, the LESSOR may, whether or not the Lease is then in effect, hold the LESSEE liable for the difference between the payments and other costs for which the LESSEE is responsible under this Lease. No remedy herein conferred upon or reserved to LESSOR is intended to be exclusive of any other available remedy or remedies, but each such remedy shall be cumulative and shall be in addition to every other remedy given under this Lease or now or thereafter existing at law or in equity by statute. No delay or omission to exercise any such right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the LESSOR to exercise any remedy reserved to it in this Provision, it shali not I' :� be necessary to give any notice, other than such notice as may be herein expressly required. (B) LESSEE'S Remedies. ff the LESSOR should defiault in the performance of the conditions or covenants of tfiis Lease Agreement, LESSEE, in addition to aIl other remedies now or hereafter afforded or provided by law, may at its election perForm such condifion or covenant on behalf of LESSOR or make good any such default and any amount or amounts that LESSEE shail advance pursuant thereto shall be repaid by LESSOR to LESSEE on demand; and, if the LESSOR shall not repay any such amount or amounts upon demand, LESSEE shall have the right to deduct the same from the next installment or installments of rent to accrue under this Lease. [22] Alterations. The LESSEE will not make any alterations to the premises without the written consent of the LESSOR, such consent not to be unreasonably withheld. If the LESSEE desires to make any such alterations, an accurate description shall first be submitted to and approved by the LESSOR and such aiterations shall be done by the LESSEE at its own expense. All such work shall be performed under the LESSOR'S supervision and any improvements made to the Leased Premises at the LESSEE'S expense shall become the property of the LESSOR at the end of the Lease period. LESSEE agrees that af1 alterations will be done in a workmanlike manner and in conformance with applicable building codes, that the structural integrity and building systems of the building will not be impaired, and that no liens will attach To the premises by reason thereof. [23] Unused Spaces. LESSEE shall, in subleasing parking spaces to employees, give priorityto the spaces along the north wall of the facility; and any spaces remaining unused shall be made available at no cost to the LESSOR for storage of City-owned vehicles. [24] Renewai. Ninety days prior to the conclusion of the term of this Lease, as shown in Paragraph [2], LESSEE shall have the option of renewing for one additional 5-year period, the rental rate to be negotiated. [25] Amended. Anything herein contained to the contrary not withstanding, this Lease may be terminated, and the provisions of this Lease may be, in writing, amended by mutual consent of the parties herein. 09-786 IN WITNESS WHEREOF, the parties hereto have set theis hands and seals the day and year in this Lease first above-written. LESSOR: \ � .� ��� � _ Director: Office of Financial Services ��. 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