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ADNIINISTRATIVE ORDER,
CiTY OF SAINT PAUL
OFFICE OF THE MAYOR
ADMINISTRATIVE ORDER
No: D 0 D ( �
Date: q y o i
WHEREAS, the Department of Public Works has negotiated an agreement to ea through September
30, 2001, the term of Lease Agreement PW/41 with the Eller Media Company, granting the continued use
of 3,750 square feet of vacant land near Cayuga and Hiway 35E for the purpose of operating and
maintaining a outdoor advertising sign.
THEREFORE BE IT ORDERED, that the proper City officials are hereby authorized and directed to
renew Lease Agreement PWf41
�J
APPROVED AS TO FORM
���y,iy�t. P: ��'Ol
Assistant City Attorney
•
Ir 1'
Date Administrative Assistant to
` 6aoG f
T.M.SJREAL ESTATE DIVISION Date: August 7, 2001 Green Sheet Num r: 111584
2 .��a� 4 �ar�
ntac[ Person and Phone Nomber:
�, � A� fl.�3-a1 �
b Novak 266-8850 �'
uncErmxFi,-roc Qa F�sa..
3 vox�osAmsuKr� 5 cm�au.
ust be on Council Agenda by: na
OTAL # OF SIGNATURE PAGES 1 ((.ZIP ALL LOCATIONS FOR SIGI3AT[JRE)
CfION REQUFSTED:
To approve Lease Agreement PW/41 for a term of one year, granting the continued use of 3,750 square feet
f vacant land near Cayuga and Hiway 35E for the purpose of operating and maintaining a outdoor
dvertising sign.: 1.Administrative Order for signature; 2. Copy of lease agreement
coM�vmnorvs:neenovet�ioxrze�ecrau ERSONAI. SERVECE CON1'RACTS MUSTAIVSR'ER THE FOLLOWING:
eurvxwc commm�oN _ �, , gy� �e p ¢ver worked under a coptract for this deparbnent? YFS NO
rnu.serzvicewm�ss�on . Has t6is person/Crm ever been a City employee? YES NO
cre mmmmeE • Does this person/tirm possess a skill not normally possessed by any
lain all YES answers on a se arate sheet and attach.
UPPORTS WffiCH COUNCII, OBJECTIVE?
COUNCIL WARD(S) 7 DISTRICT PLANNING COUNCIL
17A1'ING PROBLEM, ISSUE, OPPORI'IJrIITY (4Vho, What, When, R'here, Why?):
The City purchased this praperty in 1988 for pondsng and the sign was on part of the site at that time, and
e City has continued to lease. The agreement expired on September 30, 2000,
VANTAGES IF APPROVED:
The City (Dept. Public Works) will receive $30,000 for the one year term of the lease
ISADVANTAGES IF APPROVED:
None.
ISADVANLAGES IF NOT APPROVED:
The City will not receive the rent, and may be responsable to pay relocation costs.
OTAL AMOUNT OF TRANSACTION: $30�000 COST/REVEN[JE BUDGETED (CIRCLE ONE) YES NO
ING SOURCE: N�A ACTIVITY Ni1MBER: NIA
AN(:IAI-IlVFORMATION: (ESTLAIN)
� I
(PW41)
Revised
Authority (C.F. or A.O.)
• LEASE NO.
•
thence northwesterly along a line parallel to and one hundred sixty feet (160') north of said
northwesterly line of Burlington Northern right-of-way for seventy five feet (75');thence
southwesteriy pazaliei to and seventy five feet (75') west of said northwesterly line of MnDot
35-E right-of-way for fifty feet (50'); thence southeasterly to point of beginning.
together with any buildings, fixtures in such buildings, improvements and structures, if any, located
thereon;
See Exhibit "A", plan or map of leased area which is incorporated herein by this reference.
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[2] Term of Lease. This lease shall be in effect for a term commencing and ending on the dates
indicated below, unless terminated earlier by the LESSOR as provided herein.
Term
(Months/I'ears) Commencing Date Ending Date
1 year October 1, 2000 September 30, 2001
1
u
Use of Premises. The LESSEE shali use and occupy the Leased Premises for the following purpose:
[3]
OutdoorAdvertisine Sien
and for no other purpose without the prior written consent of LESSOR.
Rent Rent shall consist of Basic Rent and such Addiuonai Rent as may apply_ LESSEE shall pay
all rent in advance, on the first day of the term of the lease and on the first day of each payment
period thereafter as indicated in the Payment Schedule below:
['�]
(A) Basic Rent
Schedule
i
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L
Total Basic Rent
During L,ease Term (Payment Period — Commencing Date —$ per Period)
$30,000 Annual October 1, 2000 $30,000
(B) Addirional Rent Additional Rent means all amounts, other than Basic Rent provided for
in pazagnph (4A) above, that LESSEE shall be obligated to pay under this paragxaph or
other provisions of this Lease. Additional Rent shail include, but is not limited to, the
following fees, costs and expenses:
(1)
(2)
(3)
(4)
(5)
all utilities, inciuding water, electric, gas, telephone, sewage and garbage collection
and disposal;
costs for the repairs, improvements or alterations required to be made by the LESSEE
in pazagraph 11 of this Lease;
all tases on realty or personalty, general or special;
all pubiic rates dues, chazges and assessments, general or special, of any kind upon
the Leased Premises; and
property insurance premium and/or uninsured losses as set forth in paragraph (7) of
this Lease.
In the event that LESSEE does not make such payments (or anypayments required to be paid
as Additional Rent), LESSOR may make the payments at its option, and the payments so
paid become Additional Rent, and are due and payable by the LESSEE with the payment of
Basic Rent next required after written notice of same to the LESSEE by LESSOR.
LESSEE shall make all payments of Basic Rent and Additional Rent to L,ESSOR at the following
address: Department of Pub13c Works - Accounting,
25 West Fourth Street,
1000 City Hall Annex
Saint Paul Minnesota 55102
The applicable account number for City Finance Accounting Code is:
All Basic and Addiuonal Rent shall be payable on the date certain provided herein, or — if no date
2
certain is provided — within 30 days of the billing date. The Lessor shall charge interest of 1.5% per
month on any Basic or Additional Rent remaining nnpaid beyond the due date as here provided.
•
j5] Tases. LESSEE shall be responsible for and pay all tases and assessmenu against the I,eased
Premises except that LESSEE may at its own expense contest and challenae the imposition or
amount of any such tas or assessment as prescribed by law; provided, however, that in the event this
Lease is terminated by either party, LESSOR may at its opuon require the LESSEE to pay such
contested taYes pending appeal, to place in escrow a sum sufficient to pay said ta�ces, or take other
action ihat will remove said contested taxes as an encumbrance to title or as an exception to the
transferability of mazketable tifle to the Leased Premises.
[6} �ht of Entrv. At all times during the term of this lease, the LESSOR shall have the right, by itself,
its agents and employees, to enier into and upon the Leased Premises during reasonabie business
hours or, in the event of an emergency, at any time for any legitimate purpose.
•
[7] Insurance.
(A)
(B)
LESSOR'S Insurance. The LESSOR shali acquire and keep in effect during the term of this
agreement the following coverages:
(1) FIRE AND ALL RISK I1�ISURANCE, on the L.eased Premises with limits of not less
than �shall be purchased by the LESSOR; the LESSEE shall pay, as Additional
Rent, the premium for said insurance and, in the event of a claim, any deductible.
Said insurance shall name the City of Saint Paul as the insured. With respect to any
loss of the LES SOR'S property not covered by insurance, it shall be the responsibiliry
of the LESSEE within a reasonable time, to pay all costs to repair or replace the
damaged property with like kind, such reasonable ume to be determined by the
LESS012. LESSEE shall be responsible for insurance of its own property.
LESSEE'S Insurance. The LESSEE shall acquire during the term of this lease the following
coverage:
(1) The LESSEE shall be responsible for the self insurance of, or the acquisition of
Commercial Property Insurance on, its personal property.
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(2) COMMERCIAL GENERAL LIABILTfY INSURANCE including blanket
contractual liability coverage, personal injury liability coverage and broad form
property damage liability endorsement with a combined single limit of not less than
$1,000,000 per occunence shall be purchased by the LESSEE. Such insurance shall:
(a) name the City of Saint Paul as addiuonal insured; (b) be primary with respect to
LESSOR'S insurance or self-insurance; (c) not exclude explosion, collapse and
underground property damage; (d) be written on an"Occurrence" Form policy basis;
and (e) not contain an"aggregate" policy limit unless specifically approved in writing
by LESSOR.
(3) AUTOMOBILE LIABLLTTY INSURANCE with minimum limits of $1,000,000
combined single limit and $2,000,000 aggregate, covering hired, non-owned and
owned automobiles.
(4) WORKERS'COMPENSATTONINSURANCEwithnotlessthanstatutoryminimum
limits; and EMPLOYERS' LIABILTTY INSURANCE with minimum limits of at
. least $ l OQ,000 per accident and with an all states endotsement.
(5) The LESSEE shall supply to LFSSOR current insurance certificates for policies
required in Paragraph (7). The said certificates shall certify whether or not the agent
has errors and omissions insurance coverage.
(6) The limits cited under each insurance requirement above establish minimums; and
it is the sole responsibility of the LESSEE to purchase and maintain additional
insurance that may be necessary in relation to this lease.
(7) Nothing in this contract shall constitute a waiver by the LESSOR of any statutory
limits or exceptions on liabiliry.
(8) LESSEE shall place the insurance with responsible insurance companies authorized
and licensed to do business in the State of Minnesota and approved byLESSOR, and
shall deliver copies of the policies to LESSOR on the date of LESSEE'S execution
of this agreement. The policies required in paragraph (7) shall be endorsed to indicate
that the insurer cannot cancel or change the insurance without first giving the
LESSOR 30 days' written notice.
(9) Insurance limits shall be subject to the tort claims liability limits as set forth in
chapter 466 of Minnesota Statutes.
(C) W aiver of Subroeation. LESSOR waives its right of subrogation for damage to the Building,
. contents therein, loss of use thereof, and/or loss of income, up to the amount of insurance
proceeds collected. LESSEE waives its right of subrogation for damage to property in the
I.eased Premises, loss of use thereof, loss of income and/or accounts receivable, up to the
amount of their respective insurance proceeds collected. The parties shall notify their
respective insurance companies, in writing, of the provisions of this paragraph; and, if either
cannot waive its subrogauon rights, such party shall immediately noufy the other party, in
writing.
[8] Cancellation or Termination. 'This lease shall be subject to cancellation and termination by
LESSOR at any time during the term hereof by giving the LESSEE notice in writing at ninety (90)
days, (thirty (30) days for leases with a term of one (1) year or less or any month-to-month tenancies)
prior to the date when such terminaUOn shall become effective. In the event of such terminauon, and
on the effective date of such termination, LESSOR shall return any uneamed rental paid by the
LESSEE without interest.
[9] Notice. All notices herein provided to be given, or thai may be given by either party to the other,
shall be deemed to have been fully given when served personally on LESSOR or LESSEE, or 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 the Reai Estate Division,140
City Hall, 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 other. Nothing herein shall preclude the giving
. of such address change notice by personal service.
.[1Q] Assignment and Sublettine. LESSEE shall not assign or sublet this Lease without the written
consent of the LESSOR, which consent must be obtained prior to ffie execution of any agreement
to subiease the L.eased Premises.
[11} Maintenance and Re airs. LESSEE shall, at its own cost and expense, be responsible for all
repairs, maintenance and upkeep of the I.eased Premises including but not limited to emergency
repairs of any kind; routine maintenance and repair to keep the Leased Premises in good repair, safe
and in compliance with applicable fire, health, building and other life-safety codes; and ali repairs
and maintenance needed to keep the buildings or structures on the Leased Premises in good con-
dition, including (a) the exterior (including windows and doors) and interior structure of the
buildings or structures, (b) the roof or roofs, (c) the heating, ventilaung and air wnditioning systems
therein, (d) all electrical, plumbing, lighting, mechanical systems, fire suppression equipment, i.e.
fire sprinkler system; and (e) all grounds, fences and roads within the L.eased Premises. T'he
foregoing obligauons shall bind the LESSEB regardless of the cause of the damage or condition
necessitating the repair or maintenance.
[12] Pavments in Case of Default, LESSEE shali pay LESSOR all costs and expenses, including
reasonable attomey'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.
.[13] Surrender of I'remises. The LESSEE, at the expirauon of said term, or any sooner terminauon 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 property was delivered to the LESSEE.
[14] 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, acflons or causes of acuon
of whatsoever nature or chazacter, arising out of or by reason of the Lease of the herein described
Leased Premises by ihe LESSOR to the LESSEE, or the use or condition of the L.eased Premises or
as a result of the operations or business activities taking place on the I.eased Premises. It is fully
understood and agreed that LESSEE is aware of the conditions of the Lzased Premises and leases
the same "as is."
[15J Holdover. Any holdover after the expiration of the term of this Lease shall 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. Ali other terms and condiuons of this Lease shall be applicable.
[16) Pollution and Contaminants. LESSEE agrees to comply with all ordinances, laws, rules and
regulations enacted by any governmental body or agency relating to the control, abatement or
emission of air and water contaminants and the disposai of refuse, solid wastes or liquid wastes.
❑
5
LESSEE shall bear all cosu and expenses arisin� from compiiance with said ordinances, laws, rules,
. or regulations and shall indemnify, defend, save and hold harmless LESSOR from all liability, in-
cluding without limitation, fines, forfeitures, and penalties arising from the failure by LESSEE to
comply with such ordinances, laws, mles or regulations. LESSOR has the right to perform cleanup
�and charge the L.ESSEE as Additional Rent for such costs should the LESSEE fail to comply.
{i7] ControllinE Lease. In the event there is any prior existing lease or rental agreement between
LESSBE and LESSOR (or its predecessor in interest) covering the subject property, 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.
[18] Destruction. In the event of damage to or deswction of the Leased Premises or in the event the
premises becomes untenantable or unfit for occupancy due to such damage during the term of this
Lease, LESSOR may at its option:
(A) terminate the lease upon fifteen (15) days' written notice to LESSEE; or
(B) within fifteen (15) days agree to restore the premises within a reasonable ume period
following the casualty, charging the costs in excess of the insurance proceeds, if any, to the
L,ESSEE as Additional Rent Qr
(C) may direct that LESSEE promptly restore the I.eased Fremises to substantially the condition
existing immediately prior to such damage or destruction, and for that purpose, if such dam-
• age or destruction was caused by perils insured against the LESSOR shall make available to
LESSEE pro-rata, as work progresses, the net proceeds of such insurance. If such proceeds
are insufficient to pay the entire cost thereof LBSSEE agrees to pay as Additional Rent, a
lump sum payment (or in a form agreed upon by the LESSOR) equal to the remainder of
such cost.
The Basic Rents to be paid during ihe restoration period shall be abated in proportion to the
percentage of loss and impairment of the use of the I.eased Premises as determined by the
LESSOR, times the number of days of loss or impairment.
[ 19] Events of Default The occurrence of any of the following events during the term of this Lease shali
constitute an event of default by the LESSEE:
(A) the filing of a petiuon to have LESSEE adjudicated bankrupt or a peUtion for reorganization
or arrangement under any laws of the United States relating to bankruptcy filed by LESSEE;
(B) in the event a petition to have LESSEE adjudicated bankrupt is filed against LESSEE, the
failure to dismiss such petition wi[hin ninety (90) days from the date of such filing;
(C) the assets of LESSEE or of the business conducted by LESSEE on the Izasad Premises be
assumed by any trustee or other person pursuant to any judicial proceedings;
(D) LESSEE makes any assignment for the benefit of creditors,
, (E) the failure byLESSEE to timely pay Basic Rent orAddiuonal Rent as required by this L,ease;
(F) the failure by LESSEE to observe and perform any covenant, condition or agreement on its
: part to be observed or performed as required by this I.ease; or
(G) ihe failure by LESSEE or 3ts surety to discharge, satisfy or release any lien or lien statement
filed or recorded against the I,eased Premises within sixty days after the date of such filing
or recording, whichever date is earlier.
It is an express covenant and a�reement of LESSOR and LFSSEE that LESSOR may, at its election,
terminate this Lease in the event of the occurrence of any of the events described in this paragraph
or in paragraph (22) relating to liens by giving not less than ten days' written notice to LESSEE; and
when so terminated, LESSOR may reenter the I.eased Premises. This I,ease and its Leased Premises
shall not be treated as an asset of LESSBE'S estate. It is further expressly understood and agreed that
LESSOR shall be entitled upon such reentry, notwithstanding any other provision of this Lzase, to
exercise such rights and remedies as are provided in Paragraph (24) of this Lease.
[20] Comnliance with Laws. The property described herein may be used for only the purposes stated
herein. It is the sole and exclusive responsibility of the LESSEE in the use of the property to comply
wlth all laws, rules, regulations or ordinances imposed by any jurisdiction affecting the use to which
the property is proposed to be put. Inability or failure by the LESSEE to compiy with any of said
laws, rules, regulations or ordinances will not relieve the LESSEE of the obligation to pay the rental
provided herein.
j21] Non-Discrimination. The LESSEE for himself, his 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,
siatus with respect to public assistance or national origin or ancestry shall be exciuded from
participating in, be denied the benefits of or be otherwise subjected to discrimination in the
use of said �acilities;
(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 em-
ployees and conuactors, by contractors in the selection and retention of first tier subcontract-
ors, and by first-tier subcontractors in the selection and retention of second-tier subcon-
tractors;
(C) that such discrimination shall not be practiced 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 I.eased Premises; and
(D) that the LESSEE shali use the premises in compliance with ali other requirements imposed
pursuant to the Saint Paul Legislative Code Chapter 183.
[22] Liens. The LESSEE shall not permit mechanic's liens or other liens to be filed or established or to
remain against the Leased Premises for labor, materials or services fumished in connection with any
• additions modifications, improvements, repairs, renewals or replacements made to the L.eased
Premises, or for any other reason; provided that if the LESSEE shall first notify the LESSOR of its
: intention to do so and shall deposit in escrow with the LESSOR a sum of money or a bond or
inevocable letter of credit acceptable to the L,ESSOR equal to the amount of the claim of lien,
LESSEE may in good faith contest any such ciaims or mechanic's or other liens filed or established
and in such event may permit the items contested to remain undischarged and unsatisfied during the
period of such contest If, in the opinion of the LESSOR, the nonpayment of any such items subjects
the L,eased Premises to any loss or forfeiture, the LESSOR may require the LESSEE to use the es-
crow account to prompfly pay all such unpaid items and if LESSEE fails to pay from the escrow
account, the LESSOR may pay and charge the LESSEE as Additional Rent.
[23] Eminent Domain. In the event the entire L.eased Premises are taken by eminent domain or such
portion ihereof is so taken that in LESSEE'S reasonable judgement it is uneconomic thereafter to
restore the Leased Premises and proceed under the terms and provisions of this Lease, LESSEE may
terminate this Lease by giving to I.ESSOR thirty days' written notice of termination, effective as of
the date on which the condemning authority acquires legal title or physical possession of the Leased
Premises. LESSEE hereby waives and releases any claim to or share in the Award of Compensation
for the taking, notwithstanding any other provision of law this L.ease or any other agreement.
LESSEE may to the extent otherwise permitted in the eminent domain proceeding, remove its own
trade fixtures at its own expense.
[24] Default Remedies. In the event an Event of Default occurs under paragraph (19) of this I.ease,
LESSOR may exercise any one or more of the following remedies:
• (A) reenter and take possession of the Premises without termination of this Lease and use its best
efforts to ease the Premises to or enter into an agreement with another person for the account
of LESSEE;
(B) terminate this lease, exclude LESSEE from possession of the Premises, and use its best
efforts to lease the Premises to or enter into an agreement with another in accordance with
appUcable law;
(C) exclude LESSEE from possession of the Fremises, with or without terminating this Lease
and operate the Premises itseif;
(D) terminate the Lease, exclude LESSEE from possession of the Leased Premises, sell all or any
part of the Premises at the best price obtainable (provided such sale is permitted by applic-
able law,) such sale to be on such terms and condiUOns 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.
(E) exercise any remedies available to it under the Minnesota Uniform Commercial Code;
(F) take whatever acuon 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.
(G) in exercising any of its remedies set forth in this Section, the LESSOR may, whether or not
: ihe Lease is then in effect, hold ihe LESSEE liable for the difference between tY�e payments
and other costs for which the LESSE& 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 orthereafter existing atlaw or in equity by statute.
No delay or omission to exercise any such right or power accruing upon any default shail 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 shall not be necessary to give any
notice other than such notice as may be herein expressly required.
[25] Default of Pa�ment. LESSEE agrees that, should it default on any payment owing and due to be
paid to LESSOR as provided in this agreement, including but not limited to Basic Rent and
Additional Rent, then the remaining unpaid balance shail, at the option of the LESSOR, immediately
become due. Said LESSEE further agrees that the LESSOR may, at its option and without notice to
LESSEE, enter judg�ment against LESSEE in Ramsey County District Court for the amount of the
unpaid balance. And LESSEE does hereby confess judgment in the amount of the unpaid balance
due upon default, and does authorize the LESSOR to enter judgment as provided above. LESSEE
does hereby agree that the LESSOR at its option, may enter a judgment, at any time within one year
of the ume the last payment shali have come due, for the full amount of the unpaid balance due
pursuant to the confession of judgment provided herein.
•
[26] 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 ihe LESSOR and
such alterations shali 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 L,eased Premises at the
LESSEE'S expense shali become the property of the LESSOR at the end of the Lease period.
LESSEE agrees that all 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 wili attach To the premises by reason thereof.
[27) Amended. Anything herein contained to the contrary not withstanding, this Lease may be
terminated and the provisions of this Lease may be, in wriung, amended by mutual consent of the
parties hereto.
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IN WITNESS WHEREOF, ihe parties hereto have set their hands and seals ffie c�y and year in this I.ease -
first above-written. /
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