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CITY OF SAINT PAUL
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OFFICE OF THE MAYOR
ADMINISTRATIVE ORDER
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ADMIlVIS'TRATIVE ORDER,
BE IT HEREBY ORDERED, that the proper City officials aze authorized and directed to execute a lease
agreement with Knuison Construction Services to provide office and pazking space at 100 East Eleventh
Street, the Public Safety Building„ from June 15, 2004 through June 14, 2005, during construction of the
new State of Minnesota Department of Human Services Building.
APPROVED AS TO
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Date
Department
Administrative
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Dave Nelson � � 0 ublic WoHu i
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� Must Be On Council Agenda by (Date)c Number I g ' Attorue Jade Hanson �
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� Order 4 iN Clerk I
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� Total # of Signature Pages _(Clip All Locations for SignaWre)
Action Requested:
To authorize and d'uect the proper City officials to execute a lease agreement with�a�c�u Consh Services to provide office
and azking space at 100 East l lth Street from June 15, 2004 through June 14, 2005, during conshuction of the State of Minnesota
eparmen f Human Services Building.
Recommendations: Approve (A) or Reject (R): Personal Service CoMracts Must Answer the Following Questions:
Planning Commission 1. Has this person/firm ever worked under a contract for this department?
CIB Committee Yes No
Civil Service Commission 2. Has this person/firm ever been a cily employee?
Yes No
3. Does this personffirm possess a skill not normaly possessed by any
current city employee?
Yes No
Explain all yes answers on separete sheet and attach to green sheet
Initiafing Problem, Issues, Opportunity (Who, What, When, Where, Why):
Knudson Construction Services will require office and pazking space.
�
AdvanWges If Approved:
Knudson Construction Services would have reequired office and parking space.
DisadvantageslfApproved:
None
� Disadvantaqes If Not Approved:
They wouid have to fmd alternative spaces.
Total Amount of �86000 Cost/Revenue Budgeted:
Trensaction:
Fundinp Source: nJ/q Activity Number: 001-04340
� Financiallnformation:
(F�cplain)
(ED36)
Revised
Authority (C.F. or A.O.)
• LEASE
FINANCE DEPT. LEASE NO. PD36
DATE: June 7. 2004
LESSOR: CITY OF SAINT PAUL
DEPARTMENT OF Police
LESSEE: Knutson Construction 5ervices
5500 Wavzata Boulevazd Suite 300
[1]
Leased Premises. The LESSOR, in considerarion
Rent hereinafter specified to be paid by the LES
contained, does hereby lease, demise and le
the "Leased Premises," whose address � ,
and which is described as:
� Part of the first fl
together with any ' s, fi
thereon;
See E plan map
[2] rm of Lease. This leas
.z
i ' ate .l rmi�
Terxn
(Months/Years)
payment
and the c
�EE the p
>ic Rent and Additional
and agreements herein
�reinafter referred to as
and pazking lot
improvements and struchues, if any, located
is incorporated herein by this reference.
be in effect for a term commencing and ending on the dates
l earlier by the LESSOR as provided herein.
Commencing Date
June15,2004
C�
[3]
[4]
Ending Date
June14,2005
Use of Premises. The LESSEE shall use and occupythe Leased Premises for the following purpose:
Office and parking space for contractor for the State of MN Dept. Human Services Building
and for no other purpose without the prior written consent of LESSOR.
Rent. Rent sha11 consist of Basic Rent and such Additional Rent as may apply. LESSEE shall pay
all rent in advance, on the first day of the terxn of the lease and on the first day of each payrnent
period thereafter as indicated in the Payment Schedule below:
CITY OF SAINT PAUL
STANDARD LEASE
� AGREENLENT
1
�,,,. (A) Basic Rent
Total Basic Rent
• During L,ease Term
(Payment Period —
monthly
Commencing Date
June 15, 2004
— $ per Period)
Office space for the term is $12 per sf. Pariang space is $65 per stall per month.
LESSEE shall be responsibie for plowing and /or snow removal of the space.
(B) Additional Rent. Additional Rent means all amounts, other than Basic Rent provided for
in pazagraph (4-A) above, that LESSEE sha11 be obligated to pay under this pazagraph or
other provisions of this Lease. Additional Rent shall include, but is not limited to, the
following fees, costs and expenses:
(1)
�2)
�
(4)
(5)
.
all utilities, including water, electric, gas, telephone, sewage and gazbage collection
and disposal;
costs for the repairs, improvements or alterations required to be made by the LESSEE
in pazagraph 11 of this Lease;
all taxes on realty or personalty, general or special;
all public rates, dues, charges 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 any payments required to be paid
as Additional Rent), LESSOR may make the payments at its option, and the payments so
paid become Additional Rent, and aze 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 LESSOR at the following
address:
SPPD Accountine, 367 Grove Street, Saint Paul, MN. 55101
The applicable account number for City Finance Accounting Code is:
General Fund of the Public Safetv Buildine Oroerations 001-04340
All Basic and Additional Rent sha11 be payable on the date certain provided herein, or — if no date
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 unpaid beyond the due date as here provided.
�
[5] Taaes. LESSEE shall be responsible for and pay all t�es and assessments against the Leased
Premises, except that LESSEE may at its own expense contest and challenge the imposition or
amount of any such tas ar assessment as prescribed by law; provided, however, that in the event this
Lease is terminated by either par[y, LESSOR may at its option require the LESSEE to pay such
contested taxes pending appeal, to place in escrow a sum sufficient to pay said t�es, or take other
action that will remove said contested taxes as an encumbrance to title or as an exception to the
transferability of marketable title to the Leased Premises.
.
• [6] Ri�ht of Entrv. At all times during the term ofthis lease, the LESSOR shail 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.
[7] Insurance.
(A) LESSOR'S Insurance. The LESSOR shall acquire and keep in effect during the term of tius
agreement the following coverages:
(1) FIRE AND ALL RISK INSURANCE, onthe Leased Premises with lunits of not less
than $N/A shall be purchased by the LES SOR; 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 ofthe LESSOR'S propertynot covered by insurance, it shall be the responsibility
of the LESSEE, within a reasonable time, to pay a11 costs to repair or replace the
damaged properiy with like kind, such reasonable tune to be detennined by the
LESSOR. LESSEE shall be responsible for insurance of its own property.
(B) LESSEE'S Insurance. The LESSEE shall acquire during the term of this lease the following
coverage:
(1) The LESSEE sha11 be responsible far the self insurance of, or the acquisition of
Commercial Property Insurance on, its personal property.
• (2) COMMERCIAL GENERAL OR PUBLIC LIABILITY INSURANCE including
blanket contractual tiability 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 occurrence, $2,000,000 aggregate, shall be purchased bp the
LESSEE. Such insurance shall: (a) name the City of Saint Pau1 as additional insured;
(b) be primary with respect to LES SOR'S insurance or self-insurance; �O) include an
"all services, products or completed operations" endorsement ,(d) not exclude
explosion, collapse and underground properiy damage; (e) be written on an
"Occurrence" Form policy basis; and ( fl not contain an"aggregate" policy limit
unless specifically approved in writing by LESSOR.
(3) AUTOMOBILE LIABILITY INSURANCE with minimum limits of $1,000,000 per
person, $500,000 property damage and $2,000,000 aggregate limits, covering hired,
non-owned and owned automobiles.
(4) WORKERS' COMPENSATION INSLTRANCE with not less than statutoryminnnum
lunits; and EMPLOYBRS' LIABILITY INSURAI3CE with minunum limits of at
least $500,000 per accident, $500,000 per employee and $500,000 per disease, with
an all states endorsement.
(5) The LESSEE sha11 suppiy to LESSOR current insurance certificates for policies
required in Paragraph (7). The said certificates shall cer[ify 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 liabiliTy.
(8) LESSEE shall piace the insurance with responsible insurance companies authorized
and licensed to do business in the State of Minuesota and approved by LESSOR, and
shall deliver copies of the policies to LESSOR on the date of LESSEE'S execution
ofthis agreement. The policies required in pazagraph (� 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) Waiver of Subro¢ation. 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
Leased 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, ofthe provisions of this pazagraph; and, if either
cannot waive its subrogation rights, such pariy sha11 immediately notify the other pariy, in
writing.
�J
[8] Cancellation or Termination. This lease shall be subject to canceliauon 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 termination shall become effective. In the event of such termination, and
on the effective date of such termination, LESSOR sha11 return any unearned rental paid by the
LESSEE without interest.
[9] 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 served personally on LESSOR or LESSEE, or when
made inwriting and deposited inthe 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 Real 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 pariy to the other. Nothing herein shall preclude the
giving of such address change notice by personal service.
[10] Assi�nment and Subletting, 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 the Leased Premises.
•
[ll] Maintenance and Repairs. �,£�S�EE LESSOR shall, at its own cost and expense, be responsible
for all repairs, maintenance and upkeep of the Leased Premises, including but not lixnited 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
a11 repairs and maintenance needed to keep the buildings or structures on the Leased Premises in
good condition, including (a) the exteriar (including windows and doors) and interior siructure of
C�
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_ � -
• the buildings or shuctu*=s, (b) the roof or roofs, �O) the heating, ventilating and air conditioning
systems therein, (dl all elecirical, plumbing, lighting, mechanical systems, fire suppression
equipment, i.e. �.re spriukler system; and (e) ail grounds, fences and roads within the Leased
Premises. "3'he'-'�regoing obligarions shall bind the LESSEE regazdless ofthe cause ofthe damage
or condifion 1ecessitating the repair or maintenance.
[12] Pavments in Case of Default. LESSEE shall pay LESSOR all costs and expenses, including
reasonahle attorney's fees in any action brought by LESSOR to recover any rent due and unpaid
hFxeunder, 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 Premises. The LESSEE, at the expiration of said term, or any sooner termination of
this lease, shall quit peacefixlly 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, actions or causes of action
of whatsoever nature ar character, arising out of or by reason of the Lease of the herein described
Leased Premises by the LESSOR to the LESSEE, or the use or condition of the Leased Premises or
as a result of the operations or business activities taking place on the Leased Premises. It is fully
understood and agreed that LESSEE is awaze of the conditions of the Leased Premises and leases
• the same "as is."
[i5] 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. All other terms and conditions of this Lease shall be applicable.
[16] Pollution and Contaminants. LESSEE agrees to comply with a11 ordinances, laws, rules and
regulations enacted by any govemmental body or agency relating to the control, abatement or
emission of air and water contaminants and the disposal of refuse, solid wastes or liquid wastes.
LESSEE shall bear all costs and expenses arising from compliance 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
compiy with such ordinances, laws, rules or regulations. LESSOR has the right to perform cleanup
and charge the LESSEE as Additional Rent for such costs should the LESSEE fail to comply.
[17] Controlling Lease. In the event there is any prior exisring lease or rental agreement between
LESSEE and LESSOR (or its predecessor in interest) covering the subject properiy, 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 destruction of the I,eased 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 time period
following the casualty, charging the costs in excess of the insurance proceeds, if any, to the
LESSEE as Additional Rent; or
(C) may direct that LESSEE promptly restore the Leased Premises to substautially the condition
e�sting immediately prior to such damage or destruction, and for that purpose, if such dam-
age or deshuction 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, LESSEE agrees to pay as Additional Rent, a
lump sum payxnent (or in a form agreed upon by the LESSOR) equal to the remainder of
such cost.
The Basic Rents to be paid during the restoration period shall 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 impairxnent.
u
[19] Events of Default. The occurrence of any of the following events during the terxn of this Lease sha11
constitute an event of default by the LESSEE:
(A)
(B)
(C)
�)
(E)
(F)
the filing of a petition to have LESSEE adjudicated bankrupt or a petition far reorganization
or arrangement under any laws ofthe United States relating to bankniptcy filed by LESSEE;
in the event a petition to have LESSEE adjudicated banla�upt is filed against LESSEE, the
failure to dismiss such petition within ninety (90) days from the date of such filing;
the assets of LESSEE or of the business conducted by LESSEE on the Leased Premises be
assuxned by any trustee or other person pursuant to any judicial proceedings;
LESSEE makes any assigunent for the benefit of creditors;
the failure by LESSEE to timely pay Basic Rent or Additional Rent as required by this Lease;
the failure by LESSEE to observe and perform any covenant, condition ar agreement on its
part to be observed or performed as required by this Lease; or
(G) the failure by LESSEE or its surety to discharge, satisfy or release any lien or lien statement
filed or recorded against the Leased Premises within sixty days after the date of such filing
or recording, whichever date is earlier.
•
It is an express covenant and agreement ofLESSOR and LESSEE that LESSOR may, at its election,
termivate this Lease in the event of the occurrence of any of the events described in this pazagraph
or in pazagraph (22) relating to liens by giving not less than ten days' written notice to LESSEE; and
when so terminated, LESSOR may reenter the Leased Premises. This Lease and its Leased Premises
shall not be treated as an asset of LESSEE'S estate. It is fiu expressly understood and agreed that
LESSOR shaIl be entitled upon such reenhy, notwithstanding any other provision of this Lease, Yo
exercise such rights and remedies as are provided in Pazagraph (24) of this Lease.
, .
• [20] Compliance 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 compiy
with all laws, rules, regulations or ordinances imposed by any jurisdiction affecting the use to which
the properiy is proposed to be put. Inability or failure by the LESSEE to comply with any of said
laws, rules, regulations or ordinances will not relieve the LESSEE of the obligation to pay the rental
provided herein.
[21] Non-Discriminafion. The LESSEE for himself, lus personal representatives, successors in interest
and assigns, as a part of the consideration hereof, does hereby covenant and agree, as a covenant
n,nning 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 sha11 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
fiirnishing of services thereon, no discrimination shall be practiced in the selection of em-
ployees and contractors, 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 Leased Premises; and
(D) that the LESSEE shall use the premises in compliance with a11 other requirements imposed
pursuant to the Saint Paul Legislative Code Chapter 183.
(22] Liens. The LESSEE shall not permit mechanids liens or other liens to be filed or established or to
remain against the Leased Premises for labor, materials or services fiunished in connection with any
additions, modificafions, improvements, repairs, renewals or replacements made to the Leased
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
irrevocabie letter of credit acceptable to the LESSOR equal to the amount of the claim of lien,
LESSEE may in good faith contest any such claims 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 subj ects
the Leased Premises to any loss or forfeiture, the LESSOR may require the LESSEE to use the es-
crow account to promptly pay all such unpaid items and if LESSEE fails to pay from the escrow
account, the LESSOR may pay and chazge the LESSEE as Additional Rent.
[23] Eminent Domain. In the event the entire Leased Premises are taken by eminent domain, or such
• portion thereof 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 ofthis Lease, LESSEE may
terminate this Lease by giving to LESSOR thirty days' written norice oftermination, effective as of
7
. the date on which the condeuuung authority acquires legal title or physical possession of the I,eased
Premises. LESSEE hereby waives and releases any claim to or shaze in the Awazd of Compensation
for the taldng, notwithstanding any other provision of law, this Lease or any other agreement.
LESSEE may to the eatent 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 pazagraph (19) of this Lease,
LESSOR may exercise any one or more of the following remedies:
(A) reenter and take possession ofthe Premises without termivation ofthis 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
applicable law;
(C) exclude LESSEE from possession of the Premises, with or without terminating this Lease
and operate the Premises itself;
(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 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.
(E) exercise any remedies auailable to it under the Minnesota Uniform Commercial Code;
(F) take whatever action at law or in equity may appeaz necessary or appropriate to collect the
Basic Rent and Additional Rent then due and thereafter to become due, or to enforce
performance and observance ofany obligation, agreement or covenant ofthe LESSEE under
this Lease.
(G) 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 sha11 impair any
such right or power or shall be conshved 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 Payment. 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 shall, at the option ofthe LESSOR, immediately
• become due. Said LESSEE fiirther agrees that the LESSOR may, at its option and without notice to
LESSEE, enter judgment 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 yeaz
of the time the last payment shall have come due, for the full amount of the unpaid balance due
pursuant to the confession of judgment provided herein.
[26j Alterafions. The LESSEE will not make any atterations to the premises without the written consent
ofthe LESSOR, such consent not to be unreasonably withheld. Ifthe LESSEE desires to make any
such alterations, an accurate description shall first be submitted to and approved by the LES SOR and
such alterations sha11 be done by the LES SEE 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 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 will 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 writing, amended by mutual consent of the
parties hereto.
• [28] LESSEE Buildout Improvements. LESSEE shall pay the entire cost of any modifications
and/or enhancements to the leased office space premises and the designated parking lot azea.
The actual physical work, if any, will be coordinated and must be authorized by Steve
Hitchcock, SPPD Property Manager.
��
• IN WTT1�iES5 WHEREOF, the parties hereto have set their hands and seals the day and year in this Lease
first above-written.
LESSOR:
N/A
Mayor
N/A
City Clerk
Chief of Police
Director of Financial Services
�
�
City Attorney (Form Approval)
LESSEE: Knutson Construction
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