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98-09VE1�V�E{�� Presented By Referred to RESOLUTION CITY OF SAINT PAUL, MINNESOTA �� f �� Council File # ! J — 9 Green Sheet # Gol3 /3 Committee: Date 1 2 3 4 5 6 7 � � 11 12 13 14 15 16 WHEREAS, Circus of the STAR has submitted a proposal to the City of Saint Paul Division of Parks and Recreation for the use of an area of the City's Highland Park as a training facility, and; WHEREAS, Circus of the STAR will provide a recreational opportunity to members of the community, and; WHEREAS, Circus o£ the STAR will provide and pay for a facility to house their enterprise, and; WHEREAS, the land proposed to be used by Circus of the STAR is available and has the potential to house Circus of the STAR's facility, and; WHEREAS, Circus of the STAR shall pay the City $725.00 per month £or the use of the land in Highland Park, and; NOW THEREFORE BE IT RESOLVED, that the City Council of Saint Paul directs the proper City officials to execute the attached Land Lease Agreement between Circus of the STAR and the City of Saint Paul. ----------------------------------------------------------------------- fr=====_=====ir======ir======ir========1 I� II Yeas I� NayS fI Absent I� �� Blakey �� Bost om �� '�� Ha�r�„s�_ ��" � �� C �� Adopted by Council: Date � Adoption Certified by Counc' Secretary By � By: Requested by: � Divi� Park,s and eation � � j �' G By: � Director of Public Works BY: � 1�/ Form Appro ed by City / A�ttorney BY � ` `� �.r. � �a.�.x.�� Q Approved by Mayor for Submission to Counc 1 ay: �EPPRTMEN.YOFFICElGOUNGII Parks and Recreation CONfACT PFASON AND PHONE Vic Wittgenstein 266-6409 qS51GN NOMBEH FOfl MUST BE ON COUNCiI AGENUA BY �DATEJ NOUT�N6 OPOEH ASAP TOTAL C OF SIGNAiURE PAGES � (CIIP ALL LOCAilONS FOR SIGNATUpE) ACTION REQUESIE�: Signatures of Superintendent of Parks and Recreation, Director ofi Pubiic Works, City Attorney, Mayor/Assistant Mayor and passage of the attached City Council Resolution which directs City staff to enter into a Land Lease Agreement with Circus of the STAR. RECOMMENDATIONS: Approve (A) or flejeM (R) _PLANNING COMMISSION _CNIL SERVICE COMMISSION CIB COMMITTEE _ � STAFF _ _DISTRICT COUNCIL _ SUPPOFlTS WHICH COUNCLL OBJECTNE2 9k� GREEN SHEET �S� NO. 60139 INf71AIJDA INITIAL/DATE � �EPAR7MENT DIRECTOR� _'�J CT' COUNCIL 3 CT' ATTOFNEY _CEN CLERK _BU�GEf DIRECTOR FlN. & MGT. SERVICES DIR. 4 MAYOP �OR ASSISTA�� P11b115 v✓Of_�_ � DATE INRIATEO 11 /17/97 PERSONAL SERVICE CONTHPCTS MUST ANSWEH TME FOLLOWING QUESTIONS: L Has Nis Dereon�rm ever wotketl untle� a conttac[ for thvs tlepartrnen(? VES NO 2. Haz Nis persoNfirm ever heen a cRy employee? YES NO 3. Does Shis perSONfvm possess a skill not normally possessed by aay cu+rent city empbyee? YES NO Ezplain all yes answers on separate sheet antl attach ro green sheat. NJITIATING PROBIEM, ISSUE, OPPORTUMTY IWho, What, Whm, Where, Why1: Circus of the STAR presently runs programs out of Hiilcrest Recreation Center. They have outgrown this faciiity and are in co�flict with the Recreation Centers other programs. Circus of the STAR approached the City with a proposaf to erect a training facitity in Highland Parks. ADVANTAGES IF APPFWVED: Circus of the STAR will continue to operate in Saint Paul and the City will receive S725 monthly inco �ie ten years of the agreement. � r � DISADVANTAGES IF APPROVED: None DISADVANTAGES IF NOT APPflOVED: Q � c 1 � ,�,. f �� ,�� c�G , �. .`✓ _�� Circus of the STAR could locate somewhere outside of Saint Paul. �� Loss of revenue and recreation activity for the City. T�TALAMOUNTOFTRANSACTI�N S72�J.OQ monthly CO$T(gEVENUEeUDGETED(GftCLEONE) YES NO FVNDINGSOURCE . r JQfVIC2S COIICBSSIOIIS - �t�lB! ACTNIIYNUM6ER 23123 FINANCIAL INFORMATION: (EXPLAIN� CIfCUS Of tf72 .STp.R WI�� JBY tf12 Clty �72 R70lltfl�Y fOf US2 Of tf1B SPaCe It �2aSB$ I(1 Highland Park. / � i LAND LEASE AGREEMENT THIS LAND LEASE AGREEMENT ("ttus lease") is entered into this day of , 1997 between the City of Saint Paul, a municipality of the State of Minnesota ("Lessor") and Circus of the Star, a non-profit corporation organized and �isting under the laws of the State of Minnesota ("Lessee"). For good and valuable consideration, the parties agree as follows: i. Premises. Subject to the following terms and conditions, Lessor leases to Lessee use of the real properiy (the Properry"} shown in E�ibit A attached hereto. 2. Use. The Properiy consisting of appro�mately 2�,000 square feet as shown in eathibit A. may be used by Lessee far the purposes of construcring a fabric building including office space, restrooms and arena space (Facility) to be used as a trainmg and exhibition site for persons interested in learning to perform various circus act skilis. Term• The term of the Lease shaii be for ten (10) yeazs, commencing (commencement date) upon the date first written above and terminating at midnight on the last day of the month in which the tenth anniversary of the commencement date shall have occurred. Lessee shall have the right to extend this Lease for one addifional ten year term ("renewal term"}. The renewal term shall be on the same terms and conditions as set forth herein, except Lessor and Lessee shall meet and negotiate monthly rent for the renewal period. Such rent sha11 not exceed five percent (5°10) of the gross revenue generated by the Lessee for the last year of the initial ten yeaz.period, except that in no event sha11 rent be lower than $825 per month for the second ten year period. This Lease shall automatically be renewed for the successive renewal term unless Lessee shall norify Lessor in writing of Lessee's intention not to renew the Lease at least ninety (90) days prior to the expiration of the term or renewal term. 4. Rent• a. Upon the occupancy by Lessee, and through the first five years of this agreement, Lessee shall pay Lessor as rent, the sum of 5even Hundred and Twenty Five Dollars ($725 ) per month ('YenY'). Rent shall be payable on the first day of each month in advance to the City of Saint Paul at Lessor's address pecified in pazagraph 12 below. b. Beginning with the start of the si�cth year of the agreement and every month thereafter, Lessee shall pay Eight Hundred and Twenty Five Dollars ($825 ) per month Rent. � c. Lessor and Lessee shall meet prior to the renewal period to negotiate the rent for the renewal period. q g�q d. If this Lease is termivated at a tnne other than on the last day of a month, Rent shall be pro-rated as of the date of termination, and, in the event of tennivafion for any reason other than non payment of Rent, all prepaid Rents shall be refunded to Lessee. 5. Improvements: Utilities: Access a. Lessee shall have the right, at its expense, and subject to Lessor's prior site plan approval, such approval not to be unreasonably withheld, to erect and maintain on the Property certain improvements, personal property and facilities, including without limitation a Fabric Building and pad measuring appro�mately 128 ft by 190 ft and a height of 42 ft., restrooms, office space and a sidewalk from the designated parking lot to the facility. All construction shall be done an accordance with the City of Saint Paul Building Code and adhere to the American with Disabilities Act (A.D.A.) requirements. b. Lessee has been notified of the existence and location of public and private storm sewers tra�ersing the site. Lessee sha11 incorporate into its approved site plan access to existing sewer structures on the site and proposed contours to maintain drainage of the site. c. The Fabric Building, pad and aii anaillary personal praperty shall remain the properiy of the Lessee. The Lessee shall not have the right to remove the Facility without the express written consent of the Lessor during the term of this Agreement Further the Lessee must continue to operate the enterprise as a training and e�ibirion site as outlined in pazagraph 2 above. d. Lessee shall have the right to install ufilities, at I,essee's expense, and to improve the present urilities on the Property (including, but not limited to the installation of emergency power generators.) Lessee shall have the right to permanently place utilities on (or to bring urilities access) the Property in order to service the Facility. Lessor shall execute an easement evidencing this right upon Lessee's request. The Lessor shall have the right to approve all utility plans, prior to installation by Lessee. e. Lessee may use the "Highland Picnic Pavilion" pazking lot for its employees and customers. At no time shall this pazking 1ot be used as an exclusive parking lot for the Lessee. The lot shall at all times be available for general pubiic usage. 6. Res onsibilities of Parties. a. Lessor shall be responsible for: 1. Upkeep of the Highland Park Picnic Pavilion pazking lot including snow plowing, sweeping, weeding and debris removal. 9��9 2. Mowing of all areas adjacent to the Facility that were being mowed by the Lessor prior to this Lease. b. Lessee shall be responsible for: Keeping the general area of the Properiy clean and free of litter. 2. Picking up and storing trash on a daily basis and arrange for at least weekly removal of same. All repairs, maintenance and upkeep of the Properry, including but not limited to emergency repairs of any kind; routine maintenance and repair to keep the Property safe and in compliance with applicable fire, health, building and other life-safety codes; and all repairs and maintenance needed to keep the buildings or structures on the Property in good condition, including (a) the exterior (including windows and doors) and interior structure of the Facility or structures, (b) the roof or roofs, (c) the hea6ng, ventilating and air conditioning 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 Leased Property. The foregoing obligations sha11 bind the Lessee regazdless of the cause of the damage or condition necessitating the repair or maintenance. 4. Maintaining and clearing of snow and debris from all walkways from the Highland Park Picnic Pavilion parking lot to the Facility that may be installed as part of this Lease. 5. All debts incurred by Lessee as a result of its Facility and programs. 6. Providing the Lessor annually with: a. A list of Circus of the STAR board members including their addresses. b. A list of fees to be charged for classes and facility use for the upcoming year. c. A year end report showing percentage of Saint Paul residents served by the facility versus non-residents. 7. Operations. a. Lessee may operate its Facility from 7:00 a.m. to 11:00 p.m. daily including week-ends. 3 �� y b. Lessee shall develop a policy, for the City's approval, such approval not to be unreasonably with-held, which allows Saint Paul residents first priority in registering, and being accepted into classes to be heid by the Lessee at the Facilaty. 8. Payments in Case of Default. Lessee shall pay Lessor all costs and expenses, including reasonable 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 Properry, whether such action progresses to judgment or not. Tases. The Parties understand that currently the Properiy is exempt from real estate taxes, but Lessee agrees it shall be responsible for and pay a11 other ta�ces and/or special assessments against the Premises, except that Lessee may at its own expense contest and challenge the nnposition or amount of any such tas or assessment as prescribed by law; provided, however, that in the event this Lease is temunated by either party, Lessor may at its option require the Lessee to pay such contested tases or assessments pending appeal, to place in escrow a sum sufficient to pay said taa�es, or take other acfion that will remove said contested tases as an encumbrance to title or as an exception to the transferability of mazketable ritle to the Leased Property. 10. Hold Harmless. a. Lessee agrees to hold Lessor hannless from any and all claims azising from the installation, use, maintenance or repair of the Facility except for claims azising from the negligence or intentional acts of Lessor, its agents or independent contractors. b. Lessee fiuther agrees to hold Lessor harmless from any and all claims arising from the failure or collapse of the existing storm sewers within the site. c. If a failure or collapse of any existing storm sewer with-in the site occurs the Lessor shall determine if it will either repair, reroute and/or abandon the e�sting storm sewer at lessors expense. 11. Insurance. a. Lessee's Insurance. The Lessee shall maintain during the term of this Lease the following coverage: (i) Lessee shall be responsible for the self insurance of, or the acquisidon of commercial Property Insurance on, its personal property. (2) Commercial General Liability Insurance including blanket contractual liability coverage, personal injury liability coverage and broad form i � i i properry damage liability endorsement with a combined single limit of not less than $1,000,000 per occurrence sha11 be purchased by the Lessee. Such insurance shall: (a) name the City of Saint Paul as additional insured; (b) be primary with respect to Lessor's insurance or self-insurance; (c) not exclude expulsion, 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) Worker's Compensation Insurance with not less than statutory m;n;mum limits; and Employer's Liability Insurance with minimum limits of at least $100,000 per accident and with an all states endorsement. (4) The Lessee shall suppiy to Lessor current insurance certificates for policies required in this Pazagraph. The said certificates shall certify whether or not the agent has errors and omissions insurance coverage. (5) 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. (6) Nothing in this contract shall constitute a waiver by the Lessor of any statutory lnnits or exceptions on liability. (7) Lessee shall place the insurance with responsible insurance companies authorized and licensed to do business in the State of Minnesota and approved by Lessor, and shall deliver copies of the policies to Lessor on the date of Lessee's execution of this Agreement. The policies required in paragraph 10 shall be endorsed to indicate that the insurer cannot cancel or change the insurance without first giving the Lessor 30 days' written notice. b. Waiver of Subrogation. Lessor waives its right of subrogation for damage to the Facility contents thereixy loss of use thereof, and/or loss of income, up to the amount of insurance proceeds coilected. Lessee waives its right of subrogation for damage to properry on the Property, loss of use thereof, loss of income and/or accounts receivable, up to the amount of their respecfive 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 subrogation rights, such party shall immediately notify the other parry, in writing. 12. Notices. All notices, requests, demands and other communicafions hereunder shall be in writing and shall be deemed given if personally delivered or mailed, certified mail, return receipt requested, to the following addresses: �i i If to Lessor, to: Mr. Robert P. Piram, Superintendent City of Saint Paul Division of Pazks and Recreation 25 West 4th Street, Room 300 Saint Paul, MN 55102 If to Lessee, to: Circus of the Star Mr. Dan Butler 1941 Saunders Saint Paul, MN 55116 13. Rin_ht of Entr� At a11 tixnes during the term of this Lease, the Lessor shall have the right, by itself, its agents and employees, to enter into and upon the Property during reasonable business hours or, in the event of any emergency, at any time for any legitimate purpose. 14. Title and �uiet En'�ment a. Lessor warrants the (i) it has full right, power, and authority to execute this Lease; (ii) it has good and unencumbered title to the Property free and cleaz of any liens or mortgages and (iii) the Property constitute a legal lot that may be leased without the need for any subdivision or platting approval. Lessor further wanants that Lessee shall have the quiet enjoyment of the Properiy during the term of this Lease. b. Lessee has the right to obtain a title report or commitment at Lessee's expense for a leasehold title policy from a title insurance company of its choice. If, in the opinion of Lessee, such title report shows any defects of title or any liens or encumbrances which may adversely affect Lessee's use of the Properiy or Lessee's ability to obtain leasehold financing, Lessee sha11 have the right to cancel this Lease immediately upon written notice to Lessor. c. Lessee shall also have the right to have the Property surveyed, and, in the event that any defects are shown by the survey which, in the opinion of Lessee, may adversely affect Lessee's use of the Property or Lessee's ability to obtain leasehold financing, Lessee shall have the right to cancei this Lease immediately upon written notice to Lessor. d. Lessor represents to the best of their Irnowledge that hazardous substances have not been generated, stored or disposed of on the Properiy nor have the same been transported to or over the Properry. "Hazardous substance" shali be interpreted [:7 q� � broadly to mean any substance or material defined or designated as hazardous or to�c waste, hazardous or to�c material, hazardous or toafic or radioactive substauce, or other sixnilar term by any federal, state or local environmentai law, regularion or rule presently in effect promulgated in the future, as such laws, regulations or rules may be amended from time to time; and it shall be interpreted to include, but not be 1'united to, any substance wluch after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. Lessor will hold Lessee harmless from and indeuuiify Lessee against and from any damage, loss, expenses or liabiliry resulting from any breach of this representation and warranty including all attorneys' fees and costs incurred as a result thereof. 15. Assignment 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 execurion of any agreement to sublease the Lease Properiy. 16. Successors and Assiens. This Lease shall run with the Property described in E�ibit A. This Lease shall be binding upon and inure to the benefit of the parties, their respective successors, personal representatives and assigns. 17. Events of Default. The Occurrence of any of the following events during the term of this Lease shall constitute an event of default by the Lessee. Lessor shall give written notice to Lessee of the event of default and Lessee shali have 90 days to cure said default. a. The filing of a petition to have Lessee adjudicated baukrupt or a petition far the reorganization or arrangement under by laws of the United States relating to baukruptcy filed by Lessee; b. In the event a petition to have Lessee adjudicated baukrupt is filed against Lessee, the failure to dismiss such petition within ninety (90) days from the date of such filing; c. The assets of Lessee or of the business conducted by Lessee on the Leased Premises be assusned by any trustee or other person pursuant to any judicial proceedings; d. Lessee makes any assignment for the benefit of creditors; e. Lessee is more than ninety (90) days behind in rent payments; £ The failure of Lessee to observe and perform any covenant, condition or agreement on this part to be observed ar 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 ar recorded against the Leased Property within sixty days after the ? 9� � date of such filing or recording, whichever date is eazlier. It is an express covenant and agreement of Lessor and Lessee that Lessor may, at its election, terminate this Lease in the event of the occurrence of any of the events described in this pazagraph or in pazagraph (20) relating to liens by giving not less than ten days' written norice to Lessee; and when so ternunated, Lessor may reenter the Leased Property. It is fiu�ther expressly understood and agreed that Lessor shall be entitled upon such reentry, notwitlistanding any other provision of this Lease, to exercise such rights and remedies as are provided in Pazagzaph (21) of this Lease. 18. Comnliance with Laws. The property described herein may be used for only the purposes stated herein. It is the sole and exciusive responsibility of the Lessee in the use of the property to comply with all laws, rules, regulations or ordinances imposed by any jurisdiction affecting the use to wluch the property 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. 19. 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 rumiing with the land, that a. No person, on the ground of race, sex, sexual or affectional orientation, color, creed, religion, age, disability, familial status, marital status, status with respect to public assistance or national origin or anceshy shall be excluded from participating in, be denied the benefits of or be othenvise subjected to discrimination in the use of said facilities; b. That in connection with the construcrion of any improvements on said lands and the furnishing of services thereon, no unlawful discrlmination shali be practiced in the selecfion of employees and contractors, by contractors in the selecrion and retention of first tier subcontractors, and by first-tier subcontractors in the selection and retention of second-tier subcontractors or by any of the same in the selection of vendors or material suppliers; c. That such discrimination shall not be pracficed against the publia 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 Properry; and d. That the Lessee sha11 use the Property in compliance with a11 other requirements imposed pursuant to the Saint Pau1 Legisla6ve Code Chapter 183, Minnesota Stat. Chapter 363 and all other State, Loca1 or Federal laws, rules, regulations relating to discrimination. i � � 20. Liens. The Lessee shall not pernut mechanics' liens or other liens to be filed or established or to remain against the Leased Properiy or FaciliTy for labor, materials or services, furnished in connecrion with any additions, modifications, repairs, renewals or replacements made to the Leased Properry, 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 irrevocable 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 mechanids or other liens filed or estabiished 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 Leased Property to any loss or forfeiture, the Lessar may require the Lessee to use the escrow account to promptly pay a11 such unpaid items and i� Lessee fails to pay from the escrow account, the Lessor may pay and chazge the Lessee as Additional Rent. 21. Default Remedies. In the event Lessar elects to terminate this Lease, due to a Default under Paragraph (17) of this Lease, Lessor may elect any one or more of the following remedies: a. Exercise any remedies available to it under the Minnesota Uniform Commercial Code. b. Take whatever action at law or in equity may appear necessary ar appropriate to collect the 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. c. In exercising any of its remedies set forth in this Section, the Lessor may, whethez or not the Lease is then in effect, hold the Lessee liable far 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 auailable remedy or remedies, but each such remedy sha11 be cumulative and shall be in addirion to every other remedy given under this Lease or now or thereafter existing at law or in equity by statue. No delay or omission to exercise any such right or power accruing upon any default shall impair any such right or power or sha11 be construed to be a waiver thereof, but any such xight 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. 22. Default of Pa�nent• 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 lixnited to Rent, then the remaining unpaid balance sha11, at the option of the 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 i i 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 it option, may enter a judgment, at any time within one year 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. 23. Alterations. The Lessee will not make any alternations to the Property 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 alterations shall be done by the Lessee at its own expense. All such work sha11 be perFormed under the Lessor's supervision and any unprovements made to the Leased Properiy at the Lessee's expense sha11 become the properiy of the Lessor at the end of the Lease period. Lessee agrees that all alterations will be dome 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 Property by reason thereof. 24. Amended. Anything herein contained to the contrary not withstanding, this Lease may be temiinated, and the provisions of this Lease may be, in writing, amended by mutual consent of the parties hereto. This Lease constitutes the entire agreement and understanding of the parties, and supersedes all offers, negotiations and other agreements. There are no representations or understandings of any kind not set forth herein. Any amendments to said Lease must be in writing and executed by both parties. DATED as of the date first set forth above. APPROVED AS TO FORM: City Attomey LESSEE: CIRCUS OF THE STAR Dan Butler n:\group\sp\wp\agreexnnt\circus.les � 10 LESSOR: \CITY OF SAINT PAUL �`, Superintendent of Pazks and Recreation Mayor Norm Coleman Director of Financial Services City Clerk VE1�V�E{�� Presented By Referred to RESOLUTION CITY OF SAINT PAUL, MINNESOTA �� f �� Council File # ! J — 9 Green Sheet # Gol3 /3 Committee: Date 1 2 3 4 5 6 7 � � 11 12 13 14 15 16 WHEREAS, Circus of the STAR has submitted a proposal to the City of Saint Paul Division of Parks and Recreation for the use of an area of the City's Highland Park as a training facility, and; WHEREAS, Circus of the STAR will provide a recreational opportunity to members of the community, and; WHEREAS, Circus o£ the STAR will provide and pay for a facility to house their enterprise, and; WHEREAS, the land proposed to be used by Circus of the STAR is available and has the potential to house Circus of the STAR's facility, and; WHEREAS, Circus of the STAR shall pay the City $725.00 per month £or the use of the land in Highland Park, and; NOW THEREFORE BE IT RESOLVED, that the City Council of Saint Paul directs the proper City officials to execute the attached Land Lease Agreement between Circus of the STAR and the City of Saint Paul. ----------------------------------------------------------------------- fr=====_=====ir======ir======ir========1 I� II Yeas I� NayS fI Absent I� �� Blakey �� Bost om �� '�� Ha�r�„s�_ ��" � �� C �� Adopted by Council: Date � Adoption Certified by Counc' Secretary By � By: Requested by: � Divi� Park,s and eation � � j �' G By: � Director of Public Works BY: � 1�/ Form Appro ed by City / A�ttorney BY � ` `� �.r. � �a.�.x.�� Q Approved by Mayor for Submission to Counc 1 ay: �EPPRTMEN.YOFFICElGOUNGII Parks and Recreation CONfACT PFASON AND PHONE Vic Wittgenstein 266-6409 qS51GN NOMBEH FOfl MUST BE ON COUNCiI AGENUA BY �DATEJ NOUT�N6 OPOEH ASAP TOTAL C OF SIGNAiURE PAGES � (CIIP ALL LOCAilONS FOR SIGNATUpE) ACTION REQUESIE�: Signatures of Superintendent of Parks and Recreation, Director ofi Pubiic Works, City Attorney, Mayor/Assistant Mayor and passage of the attached City Council Resolution which directs City staff to enter into a Land Lease Agreement with Circus of the STAR. RECOMMENDATIONS: Approve (A) or flejeM (R) _PLANNING COMMISSION _CNIL SERVICE COMMISSION CIB COMMITTEE _ � STAFF _ _DISTRICT COUNCIL _ SUPPOFlTS WHICH COUNCLL OBJECTNE2 9k� GREEN SHEET �S� NO. 60139 INf71AIJDA INITIAL/DATE � �EPAR7MENT DIRECTOR� _'�J CT' COUNCIL 3 CT' ATTOFNEY _CEN CLERK _BU�GEf DIRECTOR FlN. & MGT. SERVICES DIR. 4 MAYOP �OR ASSISTA�� P11b115 v✓Of_�_ � DATE INRIATEO 11 /17/97 PERSONAL SERVICE CONTHPCTS MUST ANSWEH TME FOLLOWING QUESTIONS: L Has Nis Dereon�rm ever wotketl untle� a conttac[ for thvs tlepartrnen(? VES NO 2. Haz Nis persoNfirm ever heen a cRy employee? YES NO 3. Does Shis perSONfvm possess a skill not normally possessed by aay cu+rent city empbyee? YES NO Ezplain all yes answers on separate sheet antl attach ro green sheat. NJITIATING PROBIEM, ISSUE, OPPORTUMTY IWho, What, Whm, Where, Why1: Circus of the STAR presently runs programs out of Hiilcrest Recreation Center. They have outgrown this faciiity and are in co�flict with the Recreation Centers other programs. Circus of the STAR approached the City with a proposaf to erect a training facitity in Highland Parks. ADVANTAGES IF APPFWVED: Circus of the STAR will continue to operate in Saint Paul and the City will receive S725 monthly inco �ie ten years of the agreement. � r � DISADVANTAGES IF APPROVED: None DISADVANTAGES IF NOT APPflOVED: Q � c 1 � ,�,. f �� ,�� c�G , �. .`✓ _�� Circus of the STAR could locate somewhere outside of Saint Paul. �� Loss of revenue and recreation activity for the City. T�TALAMOUNTOFTRANSACTI�N S72�J.OQ monthly CO$T(gEVENUEeUDGETED(GftCLEONE) YES NO FVNDINGSOURCE . r JQfVIC2S COIICBSSIOIIS - �t�lB! ACTNIIYNUM6ER 23123 FINANCIAL INFORMATION: (EXPLAIN� CIfCUS Of tf72 .STp.R WI�� JBY tf12 Clty �72 R70lltfl�Y fOf US2 Of tf1B SPaCe It �2aSB$ I(1 Highland Park. / � i LAND LEASE AGREEMENT THIS LAND LEASE AGREEMENT ("ttus lease") is entered into this day of , 1997 between the City of Saint Paul, a municipality of the State of Minnesota ("Lessor") and Circus of the Star, a non-profit corporation organized and �isting under the laws of the State of Minnesota ("Lessee"). For good and valuable consideration, the parties agree as follows: i. Premises. Subject to the following terms and conditions, Lessor leases to Lessee use of the real properiy (the Properry"} shown in E�ibit A attached hereto. 2. Use. The Properiy consisting of appro�mately 2�,000 square feet as shown in eathibit A. may be used by Lessee far the purposes of construcring a fabric building including office space, restrooms and arena space (Facility) to be used as a trainmg and exhibition site for persons interested in learning to perform various circus act skilis. Term• The term of the Lease shaii be for ten (10) yeazs, commencing (commencement date) upon the date first written above and terminating at midnight on the last day of the month in which the tenth anniversary of the commencement date shall have occurred. Lessee shall have the right to extend this Lease for one addifional ten year term ("renewal term"}. The renewal term shall be on the same terms and conditions as set forth herein, except Lessor and Lessee shall meet and negotiate monthly rent for the renewal period. Such rent sha11 not exceed five percent (5°10) of the gross revenue generated by the Lessee for the last year of the initial ten yeaz.period, except that in no event sha11 rent be lower than $825 per month for the second ten year period. This Lease shall automatically be renewed for the successive renewal term unless Lessee shall norify Lessor in writing of Lessee's intention not to renew the Lease at least ninety (90) days prior to the expiration of the term or renewal term. 4. Rent• a. Upon the occupancy by Lessee, and through the first five years of this agreement, Lessee shall pay Lessor as rent, the sum of 5even Hundred and Twenty Five Dollars ($725 ) per month ('YenY'). Rent shall be payable on the first day of each month in advance to the City of Saint Paul at Lessor's address pecified in pazagraph 12 below. b. Beginning with the start of the si�cth year of the agreement and every month thereafter, Lessee shall pay Eight Hundred and Twenty Five Dollars ($825 ) per month Rent. � c. Lessor and Lessee shall meet prior to the renewal period to negotiate the rent for the renewal period. q g�q d. If this Lease is termivated at a tnne other than on the last day of a month, Rent shall be pro-rated as of the date of termination, and, in the event of tennivafion for any reason other than non payment of Rent, all prepaid Rents shall be refunded to Lessee. 5. Improvements: Utilities: Access a. Lessee shall have the right, at its expense, and subject to Lessor's prior site plan approval, such approval not to be unreasonably withheld, to erect and maintain on the Property certain improvements, personal property and facilities, including without limitation a Fabric Building and pad measuring appro�mately 128 ft by 190 ft and a height of 42 ft., restrooms, office space and a sidewalk from the designated parking lot to the facility. All construction shall be done an accordance with the City of Saint Paul Building Code and adhere to the American with Disabilities Act (A.D.A.) requirements. b. Lessee has been notified of the existence and location of public and private storm sewers tra�ersing the site. Lessee sha11 incorporate into its approved site plan access to existing sewer structures on the site and proposed contours to maintain drainage of the site. c. The Fabric Building, pad and aii anaillary personal praperty shall remain the properiy of the Lessee. The Lessee shall not have the right to remove the Facility without the express written consent of the Lessor during the term of this Agreement Further the Lessee must continue to operate the enterprise as a training and e�ibirion site as outlined in pazagraph 2 above. d. Lessee shall have the right to install ufilities, at I,essee's expense, and to improve the present urilities on the Property (including, but not limited to the installation of emergency power generators.) Lessee shall have the right to permanently place utilities on (or to bring urilities access) the Property in order to service the Facility. Lessor shall execute an easement evidencing this right upon Lessee's request. The Lessor shall have the right to approve all utility plans, prior to installation by Lessee. e. Lessee may use the "Highland Picnic Pavilion" pazking lot for its employees and customers. At no time shall this pazking 1ot be used as an exclusive parking lot for the Lessee. The lot shall at all times be available for general pubiic usage. 6. Res onsibilities of Parties. a. Lessor shall be responsible for: 1. Upkeep of the Highland Park Picnic Pavilion pazking lot including snow plowing, sweeping, weeding and debris removal. 9��9 2. Mowing of all areas adjacent to the Facility that were being mowed by the Lessor prior to this Lease. b. Lessee shall be responsible for: Keeping the general area of the Properiy clean and free of litter. 2. Picking up and storing trash on a daily basis and arrange for at least weekly removal of same. All repairs, maintenance and upkeep of the Properry, including but not limited to emergency repairs of any kind; routine maintenance and repair to keep the Property safe and in compliance with applicable fire, health, building and other life-safety codes; and all repairs and maintenance needed to keep the buildings or structures on the Property in good condition, including (a) the exterior (including windows and doors) and interior structure of the Facility or structures, (b) the roof or roofs, (c) the hea6ng, ventilating and air conditioning 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 Leased Property. The foregoing obligations sha11 bind the Lessee regazdless of the cause of the damage or condition necessitating the repair or maintenance. 4. Maintaining and clearing of snow and debris from all walkways from the Highland Park Picnic Pavilion parking lot to the Facility that may be installed as part of this Lease. 5. All debts incurred by Lessee as a result of its Facility and programs. 6. Providing the Lessor annually with: a. A list of Circus of the STAR board members including their addresses. b. A list of fees to be charged for classes and facility use for the upcoming year. c. A year end report showing percentage of Saint Paul residents served by the facility versus non-residents. 7. Operations. a. Lessee may operate its Facility from 7:00 a.m. to 11:00 p.m. daily including week-ends. 3 �� y b. Lessee shall develop a policy, for the City's approval, such approval not to be unreasonably with-held, which allows Saint Paul residents first priority in registering, and being accepted into classes to be heid by the Lessee at the Facilaty. 8. Payments in Case of Default. Lessee shall pay Lessor all costs and expenses, including reasonable 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 Properry, whether such action progresses to judgment or not. Tases. The Parties understand that currently the Properiy is exempt from real estate taxes, but Lessee agrees it shall be responsible for and pay a11 other ta�ces and/or special assessments against the Premises, except that Lessee may at its own expense contest and challenge the nnposition or amount of any such tas or assessment as prescribed by law; provided, however, that in the event this Lease is temunated by either party, Lessor may at its option require the Lessee to pay such contested tases or assessments pending appeal, to place in escrow a sum sufficient to pay said taa�es, or take other acfion that will remove said contested tases as an encumbrance to title or as an exception to the transferability of mazketable ritle to the Leased Property. 10. Hold Harmless. a. Lessee agrees to hold Lessor hannless from any and all claims azising from the installation, use, maintenance or repair of the Facility except for claims azising from the negligence or intentional acts of Lessor, its agents or independent contractors. b. Lessee fiuther agrees to hold Lessor harmless from any and all claims arising from the failure or collapse of the existing storm sewers within the site. c. If a failure or collapse of any existing storm sewer with-in the site occurs the Lessor shall determine if it will either repair, reroute and/or abandon the e�sting storm sewer at lessors expense. 11. Insurance. a. Lessee's Insurance. The Lessee shall maintain during the term of this Lease the following coverage: (i) Lessee shall be responsible for the self insurance of, or the acquisidon of commercial Property Insurance on, its personal property. (2) Commercial General Liability Insurance including blanket contractual liability coverage, personal injury liability coverage and broad form i � i i properry damage liability endorsement with a combined single limit of not less than $1,000,000 per occurrence sha11 be purchased by the Lessee. Such insurance shall: (a) name the City of Saint Paul as additional insured; (b) be primary with respect to Lessor's insurance or self-insurance; (c) not exclude expulsion, 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) Worker's Compensation Insurance with not less than statutory m;n;mum limits; and Employer's Liability Insurance with minimum limits of at least $100,000 per accident and with an all states endorsement. (4) The Lessee shall suppiy to Lessor current insurance certificates for policies required in this Pazagraph. The said certificates shall certify whether or not the agent has errors and omissions insurance coverage. (5) 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. (6) Nothing in this contract shall constitute a waiver by the Lessor of any statutory lnnits or exceptions on liability. (7) Lessee shall place the insurance with responsible insurance companies authorized and licensed to do business in the State of Minnesota and approved by Lessor, and shall deliver copies of the policies to Lessor on the date of Lessee's execution of this Agreement. The policies required in paragraph 10 shall be endorsed to indicate that the insurer cannot cancel or change the insurance without first giving the Lessor 30 days' written notice. b. Waiver of Subrogation. Lessor waives its right of subrogation for damage to the Facility contents thereixy loss of use thereof, and/or loss of income, up to the amount of insurance proceeds coilected. Lessee waives its right of subrogation for damage to properry on the Property, loss of use thereof, loss of income and/or accounts receivable, up to the amount of their respecfive 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 subrogation rights, such party shall immediately notify the other parry, in writing. 12. Notices. All notices, requests, demands and other communicafions hereunder shall be in writing and shall be deemed given if personally delivered or mailed, certified mail, return receipt requested, to the following addresses: �i i If to Lessor, to: Mr. Robert P. Piram, Superintendent City of Saint Paul Division of Pazks and Recreation 25 West 4th Street, Room 300 Saint Paul, MN 55102 If to Lessee, to: Circus of the Star Mr. Dan Butler 1941 Saunders Saint Paul, MN 55116 13. Rin_ht of Entr� At a11 tixnes during the term of this Lease, the Lessor shall have the right, by itself, its agents and employees, to enter into and upon the Property during reasonable business hours or, in the event of any emergency, at any time for any legitimate purpose. 14. Title and �uiet En'�ment a. Lessor warrants the (i) it has full right, power, and authority to execute this Lease; (ii) it has good and unencumbered title to the Property free and cleaz of any liens or mortgages and (iii) the Property constitute a legal lot that may be leased without the need for any subdivision or platting approval. Lessor further wanants that Lessee shall have the quiet enjoyment of the Properiy during the term of this Lease. b. Lessee has the right to obtain a title report or commitment at Lessee's expense for a leasehold title policy from a title insurance company of its choice. If, in the opinion of Lessee, such title report shows any defects of title or any liens or encumbrances which may adversely affect Lessee's use of the Properiy or Lessee's ability to obtain leasehold financing, Lessee sha11 have the right to cancel this Lease immediately upon written notice to Lessor. c. Lessee shall also have the right to have the Property surveyed, and, in the event that any defects are shown by the survey which, in the opinion of Lessee, may adversely affect Lessee's use of the Property or Lessee's ability to obtain leasehold financing, Lessee shall have the right to cancei this Lease immediately upon written notice to Lessor. d. Lessor represents to the best of their Irnowledge that hazardous substances have not been generated, stored or disposed of on the Properiy nor have the same been transported to or over the Properry. "Hazardous substance" shali be interpreted [:7 q� � broadly to mean any substance or material defined or designated as hazardous or to�c waste, hazardous or to�c material, hazardous or toafic or radioactive substauce, or other sixnilar term by any federal, state or local environmentai law, regularion or rule presently in effect promulgated in the future, as such laws, regulations or rules may be amended from time to time; and it shall be interpreted to include, but not be 1'united to, any substance wluch after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. Lessor will hold Lessee harmless from and indeuuiify Lessee against and from any damage, loss, expenses or liabiliry resulting from any breach of this representation and warranty including all attorneys' fees and costs incurred as a result thereof. 15. Assignment 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 execurion of any agreement to sublease the Lease Properiy. 16. Successors and Assiens. This Lease shall run with the Property described in E�ibit A. This Lease shall be binding upon and inure to the benefit of the parties, their respective successors, personal representatives and assigns. 17. Events of Default. The Occurrence of any of the following events during the term of this Lease shall constitute an event of default by the Lessee. Lessor shall give written notice to Lessee of the event of default and Lessee shali have 90 days to cure said default. a. The filing of a petition to have Lessee adjudicated baukrupt or a petition far the reorganization or arrangement under by laws of the United States relating to baukruptcy filed by Lessee; b. In the event a petition to have Lessee adjudicated baukrupt is filed against Lessee, the failure to dismiss such petition within ninety (90) days from the date of such filing; c. The assets of Lessee or of the business conducted by Lessee on the Leased Premises be assusned by any trustee or other person pursuant to any judicial proceedings; d. Lessee makes any assignment for the benefit of creditors; e. Lessee is more than ninety (90) days behind in rent payments; £ The failure of Lessee to observe and perform any covenant, condition or agreement on this part to be observed ar 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 ar recorded against the Leased Property within sixty days after the ? 9� � date of such filing or recording, whichever date is eazlier. It is an express covenant and agreement of Lessor and Lessee that Lessor may, at its election, terminate this Lease in the event of the occurrence of any of the events described in this pazagraph or in pazagraph (20) relating to liens by giving not less than ten days' written norice to Lessee; and when so ternunated, Lessor may reenter the Leased Property. It is fiu�ther expressly understood and agreed that Lessor shall be entitled upon such reentry, notwitlistanding any other provision of this Lease, to exercise such rights and remedies as are provided in Pazagzaph (21) of this Lease. 18. Comnliance with Laws. The property described herein may be used for only the purposes stated herein. It is the sole and exciusive responsibility of the Lessee in the use of the property to comply with all laws, rules, regulations or ordinances imposed by any jurisdiction affecting the use to wluch the property 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. 19. 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 rumiing with the land, that a. No person, on the ground of race, sex, sexual or affectional orientation, color, creed, religion, age, disability, familial status, marital status, status with respect to public assistance or national origin or anceshy shall be excluded from participating in, be denied the benefits of or be othenvise subjected to discrimination in the use of said facilities; b. That in connection with the construcrion of any improvements on said lands and the furnishing of services thereon, no unlawful discrlmination shali be practiced in the selecfion of employees and contractors, by contractors in the selecrion and retention of first tier subcontractors, and by first-tier subcontractors in the selection and retention of second-tier subcontractors or by any of the same in the selection of vendors or material suppliers; c. That such discrimination shall not be pracficed against the publia 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 Properry; and d. That the Lessee sha11 use the Property in compliance with a11 other requirements imposed pursuant to the Saint Pau1 Legisla6ve Code Chapter 183, Minnesota Stat. Chapter 363 and all other State, Loca1 or Federal laws, rules, regulations relating to discrimination. i � � 20. Liens. The Lessee shall not pernut mechanics' liens or other liens to be filed or established or to remain against the Leased Properiy or FaciliTy for labor, materials or services, furnished in connecrion with any additions, modifications, repairs, renewals or replacements made to the Leased Properry, 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 irrevocable 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 mechanids or other liens filed or estabiished 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 Leased Property to any loss or forfeiture, the Lessar may require the Lessee to use the escrow account to promptly pay a11 such unpaid items and i� Lessee fails to pay from the escrow account, the Lessor may pay and chazge the Lessee as Additional Rent. 21. Default Remedies. In the event Lessar elects to terminate this Lease, due to a Default under Paragraph (17) of this Lease, Lessor may elect any one or more of the following remedies: a. Exercise any remedies available to it under the Minnesota Uniform Commercial Code. b. Take whatever action at law or in equity may appear necessary ar appropriate to collect the 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. c. In exercising any of its remedies set forth in this Section, the Lessor may, whethez or not the Lease is then in effect, hold the Lessee liable far 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 auailable remedy or remedies, but each such remedy sha11 be cumulative and shall be in addirion to every other remedy given under this Lease or now or thereafter existing at law or in equity by statue. No delay or omission to exercise any such right or power accruing upon any default shall impair any such right or power or sha11 be construed to be a waiver thereof, but any such xight 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. 22. Default of Pa�nent• 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 lixnited to Rent, then the remaining unpaid balance sha11, at the option of the 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 i i 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 it option, may enter a judgment, at any time within one year 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. 23. Alterations. The Lessee will not make any alternations to the Property 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 alterations shall be done by the Lessee at its own expense. All such work sha11 be perFormed under the Lessor's supervision and any unprovements made to the Leased Properiy at the Lessee's expense sha11 become the properiy of the Lessor at the end of the Lease period. Lessee agrees that all alterations will be dome 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 Property by reason thereof. 24. Amended. Anything herein contained to the contrary not withstanding, this Lease may be temiinated, and the provisions of this Lease may be, in writing, amended by mutual consent of the parties hereto. This Lease constitutes the entire agreement and understanding of the parties, and supersedes all offers, negotiations and other agreements. There are no representations or understandings of any kind not set forth herein. Any amendments to said Lease must be in writing and executed by both parties. DATED as of the date first set forth above. APPROVED AS TO FORM: City Attomey LESSEE: CIRCUS OF THE STAR Dan Butler n:\group\sp\wp\agreexnnt\circus.les � 10 LESSOR: \CITY OF SAINT PAUL �`, Superintendent of Pazks and Recreation Mayor Norm Coleman Director of Financial Services City Clerk VE1�V�E{�� Presented By Referred to RESOLUTION CITY OF SAINT PAUL, MINNESOTA �� f �� Council File # ! J — 9 Green Sheet # Gol3 /3 Committee: Date 1 2 3 4 5 6 7 � � 11 12 13 14 15 16 WHEREAS, Circus of the STAR has submitted a proposal to the City of Saint Paul Division of Parks and Recreation for the use of an area of the City's Highland Park as a training facility, and; WHEREAS, Circus of the STAR will provide a recreational opportunity to members of the community, and; WHEREAS, Circus o£ the STAR will provide and pay for a facility to house their enterprise, and; WHEREAS, the land proposed to be used by Circus of the STAR is available and has the potential to house Circus of the STAR's facility, and; WHEREAS, Circus of the STAR shall pay the City $725.00 per month £or the use of the land in Highland Park, and; NOW THEREFORE BE IT RESOLVED, that the City Council of Saint Paul directs the proper City officials to execute the attached Land Lease Agreement between Circus of the STAR and the City of Saint Paul. ----------------------------------------------------------------------- fr=====_=====ir======ir======ir========1 I� II Yeas I� NayS fI Absent I� �� Blakey �� Bost om �� '�� Ha�r�„s�_ ��" � �� C �� Adopted by Council: Date � Adoption Certified by Counc' Secretary By � By: Requested by: � Divi� Park,s and eation � � j �' G By: � Director of Public Works BY: � 1�/ Form Appro ed by City / A�ttorney BY � ` `� �.r. � �a.�.x.�� Q Approved by Mayor for Submission to Counc 1 ay: �EPPRTMEN.YOFFICElGOUNGII Parks and Recreation CONfACT PFASON AND PHONE Vic Wittgenstein 266-6409 qS51GN NOMBEH FOfl MUST BE ON COUNCiI AGENUA BY �DATEJ NOUT�N6 OPOEH ASAP TOTAL C OF SIGNAiURE PAGES � (CIIP ALL LOCAilONS FOR SIGNATUpE) ACTION REQUESIE�: Signatures of Superintendent of Parks and Recreation, Director ofi Pubiic Works, City Attorney, Mayor/Assistant Mayor and passage of the attached City Council Resolution which directs City staff to enter into a Land Lease Agreement with Circus of the STAR. RECOMMENDATIONS: Approve (A) or flejeM (R) _PLANNING COMMISSION _CNIL SERVICE COMMISSION CIB COMMITTEE _ � STAFF _ _DISTRICT COUNCIL _ SUPPOFlTS WHICH COUNCLL OBJECTNE2 9k� GREEN SHEET �S� NO. 60139 INf71AIJDA INITIAL/DATE � �EPAR7MENT DIRECTOR� _'�J CT' COUNCIL 3 CT' ATTOFNEY _CEN CLERK _BU�GEf DIRECTOR FlN. & MGT. SERVICES DIR. 4 MAYOP �OR ASSISTA�� P11b115 v✓Of_�_ � DATE INRIATEO 11 /17/97 PERSONAL SERVICE CONTHPCTS MUST ANSWEH TME FOLLOWING QUESTIONS: L Has Nis Dereon�rm ever wotketl untle� a conttac[ for thvs tlepartrnen(? VES NO 2. Haz Nis persoNfirm ever heen a cRy employee? YES NO 3. Does Shis perSONfvm possess a skill not normally possessed by aay cu+rent city empbyee? YES NO Ezplain all yes answers on separate sheet antl attach ro green sheat. NJITIATING PROBIEM, ISSUE, OPPORTUMTY IWho, What, Whm, Where, Why1: Circus of the STAR presently runs programs out of Hiilcrest Recreation Center. They have outgrown this faciiity and are in co�flict with the Recreation Centers other programs. Circus of the STAR approached the City with a proposaf to erect a training facitity in Highland Parks. ADVANTAGES IF APPFWVED: Circus of the STAR will continue to operate in Saint Paul and the City will receive S725 monthly inco �ie ten years of the agreement. � r � DISADVANTAGES IF APPROVED: None DISADVANTAGES IF NOT APPflOVED: Q � c 1 � ,�,. f �� ,�� c�G , �. .`✓ _�� Circus of the STAR could locate somewhere outside of Saint Paul. �� Loss of revenue and recreation activity for the City. T�TALAMOUNTOFTRANSACTI�N S72�J.OQ monthly CO$T(gEVENUEeUDGETED(GftCLEONE) YES NO FVNDINGSOURCE . r JQfVIC2S COIICBSSIOIIS - �t�lB! ACTNIIYNUM6ER 23123 FINANCIAL INFORMATION: (EXPLAIN� CIfCUS Of tf72 .STp.R WI�� JBY tf12 Clty �72 R70lltfl�Y fOf US2 Of tf1B SPaCe It �2aSB$ I(1 Highland Park. / � i LAND LEASE AGREEMENT THIS LAND LEASE AGREEMENT ("ttus lease") is entered into this day of , 1997 between the City of Saint Paul, a municipality of the State of Minnesota ("Lessor") and Circus of the Star, a non-profit corporation organized and �isting under the laws of the State of Minnesota ("Lessee"). For good and valuable consideration, the parties agree as follows: i. Premises. Subject to the following terms and conditions, Lessor leases to Lessee use of the real properiy (the Properry"} shown in E�ibit A attached hereto. 2. Use. The Properiy consisting of appro�mately 2�,000 square feet as shown in eathibit A. may be used by Lessee far the purposes of construcring a fabric building including office space, restrooms and arena space (Facility) to be used as a trainmg and exhibition site for persons interested in learning to perform various circus act skilis. Term• The term of the Lease shaii be for ten (10) yeazs, commencing (commencement date) upon the date first written above and terminating at midnight on the last day of the month in which the tenth anniversary of the commencement date shall have occurred. Lessee shall have the right to extend this Lease for one addifional ten year term ("renewal term"}. The renewal term shall be on the same terms and conditions as set forth herein, except Lessor and Lessee shall meet and negotiate monthly rent for the renewal period. Such rent sha11 not exceed five percent (5°10) of the gross revenue generated by the Lessee for the last year of the initial ten yeaz.period, except that in no event sha11 rent be lower than $825 per month for the second ten year period. This Lease shall automatically be renewed for the successive renewal term unless Lessee shall norify Lessor in writing of Lessee's intention not to renew the Lease at least ninety (90) days prior to the expiration of the term or renewal term. 4. Rent• a. Upon the occupancy by Lessee, and through the first five years of this agreement, Lessee shall pay Lessor as rent, the sum of 5even Hundred and Twenty Five Dollars ($725 ) per month ('YenY'). Rent shall be payable on the first day of each month in advance to the City of Saint Paul at Lessor's address pecified in pazagraph 12 below. b. Beginning with the start of the si�cth year of the agreement and every month thereafter, Lessee shall pay Eight Hundred and Twenty Five Dollars ($825 ) per month Rent. � c. Lessor and Lessee shall meet prior to the renewal period to negotiate the rent for the renewal period. q g�q d. If this Lease is termivated at a tnne other than on the last day of a month, Rent shall be pro-rated as of the date of termination, and, in the event of tennivafion for any reason other than non payment of Rent, all prepaid Rents shall be refunded to Lessee. 5. Improvements: Utilities: Access a. Lessee shall have the right, at its expense, and subject to Lessor's prior site plan approval, such approval not to be unreasonably withheld, to erect and maintain on the Property certain improvements, personal property and facilities, including without limitation a Fabric Building and pad measuring appro�mately 128 ft by 190 ft and a height of 42 ft., restrooms, office space and a sidewalk from the designated parking lot to the facility. All construction shall be done an accordance with the City of Saint Paul Building Code and adhere to the American with Disabilities Act (A.D.A.) requirements. b. Lessee has been notified of the existence and location of public and private storm sewers tra�ersing the site. Lessee sha11 incorporate into its approved site plan access to existing sewer structures on the site and proposed contours to maintain drainage of the site. c. The Fabric Building, pad and aii anaillary personal praperty shall remain the properiy of the Lessee. The Lessee shall not have the right to remove the Facility without the express written consent of the Lessor during the term of this Agreement Further the Lessee must continue to operate the enterprise as a training and e�ibirion site as outlined in pazagraph 2 above. d. Lessee shall have the right to install ufilities, at I,essee's expense, and to improve the present urilities on the Property (including, but not limited to the installation of emergency power generators.) Lessee shall have the right to permanently place utilities on (or to bring urilities access) the Property in order to service the Facility. Lessor shall execute an easement evidencing this right upon Lessee's request. The Lessor shall have the right to approve all utility plans, prior to installation by Lessee. e. Lessee may use the "Highland Picnic Pavilion" pazking lot for its employees and customers. At no time shall this pazking 1ot be used as an exclusive parking lot for the Lessee. The lot shall at all times be available for general pubiic usage. 6. Res onsibilities of Parties. a. Lessor shall be responsible for: 1. Upkeep of the Highland Park Picnic Pavilion pazking lot including snow plowing, sweeping, weeding and debris removal. 9��9 2. Mowing of all areas adjacent to the Facility that were being mowed by the Lessor prior to this Lease. b. Lessee shall be responsible for: Keeping the general area of the Properiy clean and free of litter. 2. Picking up and storing trash on a daily basis and arrange for at least weekly removal of same. All repairs, maintenance and upkeep of the Properry, including but not limited to emergency repairs of any kind; routine maintenance and repair to keep the Property safe and in compliance with applicable fire, health, building and other life-safety codes; and all repairs and maintenance needed to keep the buildings or structures on the Property in good condition, including (a) the exterior (including windows and doors) and interior structure of the Facility or structures, (b) the roof or roofs, (c) the hea6ng, ventilating and air conditioning 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 Leased Property. The foregoing obligations sha11 bind the Lessee regazdless of the cause of the damage or condition necessitating the repair or maintenance. 4. Maintaining and clearing of snow and debris from all walkways from the Highland Park Picnic Pavilion parking lot to the Facility that may be installed as part of this Lease. 5. All debts incurred by Lessee as a result of its Facility and programs. 6. Providing the Lessor annually with: a. A list of Circus of the STAR board members including their addresses. b. A list of fees to be charged for classes and facility use for the upcoming year. c. A year end report showing percentage of Saint Paul residents served by the facility versus non-residents. 7. Operations. a. Lessee may operate its Facility from 7:00 a.m. to 11:00 p.m. daily including week-ends. 3 �� y b. Lessee shall develop a policy, for the City's approval, such approval not to be unreasonably with-held, which allows Saint Paul residents first priority in registering, and being accepted into classes to be heid by the Lessee at the Facilaty. 8. Payments in Case of Default. Lessee shall pay Lessor all costs and expenses, including reasonable 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 Properry, whether such action progresses to judgment or not. Tases. The Parties understand that currently the Properiy is exempt from real estate taxes, but Lessee agrees it shall be responsible for and pay a11 other ta�ces and/or special assessments against the Premises, except that Lessee may at its own expense contest and challenge the nnposition or amount of any such tas or assessment as prescribed by law; provided, however, that in the event this Lease is temunated by either party, Lessor may at its option require the Lessee to pay such contested tases or assessments pending appeal, to place in escrow a sum sufficient to pay said taa�es, or take other acfion that will remove said contested tases as an encumbrance to title or as an exception to the transferability of mazketable ritle to the Leased Property. 10. Hold Harmless. a. Lessee agrees to hold Lessor hannless from any and all claims azising from the installation, use, maintenance or repair of the Facility except for claims azising from the negligence or intentional acts of Lessor, its agents or independent contractors. b. Lessee fiuther agrees to hold Lessor harmless from any and all claims arising from the failure or collapse of the existing storm sewers within the site. c. If a failure or collapse of any existing storm sewer with-in the site occurs the Lessor shall determine if it will either repair, reroute and/or abandon the e�sting storm sewer at lessors expense. 11. Insurance. a. Lessee's Insurance. The Lessee shall maintain during the term of this Lease the following coverage: (i) Lessee shall be responsible for the self insurance of, or the acquisidon of commercial Property Insurance on, its personal property. (2) Commercial General Liability Insurance including blanket contractual liability coverage, personal injury liability coverage and broad form i � i i properry damage liability endorsement with a combined single limit of not less than $1,000,000 per occurrence sha11 be purchased by the Lessee. Such insurance shall: (a) name the City of Saint Paul as additional insured; (b) be primary with respect to Lessor's insurance or self-insurance; (c) not exclude expulsion, 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) Worker's Compensation Insurance with not less than statutory m;n;mum limits; and Employer's Liability Insurance with minimum limits of at least $100,000 per accident and with an all states endorsement. (4) The Lessee shall suppiy to Lessor current insurance certificates for policies required in this Pazagraph. The said certificates shall certify whether or not the agent has errors and omissions insurance coverage. (5) 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. (6) Nothing in this contract shall constitute a waiver by the Lessor of any statutory lnnits or exceptions on liability. (7) Lessee shall place the insurance with responsible insurance companies authorized and licensed to do business in the State of Minnesota and approved by Lessor, and shall deliver copies of the policies to Lessor on the date of Lessee's execution of this Agreement. The policies required in paragraph 10 shall be endorsed to indicate that the insurer cannot cancel or change the insurance without first giving the Lessor 30 days' written notice. b. Waiver of Subrogation. Lessor waives its right of subrogation for damage to the Facility contents thereixy loss of use thereof, and/or loss of income, up to the amount of insurance proceeds coilected. Lessee waives its right of subrogation for damage to properry on the Property, loss of use thereof, loss of income and/or accounts receivable, up to the amount of their respecfive 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 subrogation rights, such party shall immediately notify the other parry, in writing. 12. Notices. All notices, requests, demands and other communicafions hereunder shall be in writing and shall be deemed given if personally delivered or mailed, certified mail, return receipt requested, to the following addresses: �i i If to Lessor, to: Mr. Robert P. Piram, Superintendent City of Saint Paul Division of Pazks and Recreation 25 West 4th Street, Room 300 Saint Paul, MN 55102 If to Lessee, to: Circus of the Star Mr. Dan Butler 1941 Saunders Saint Paul, MN 55116 13. Rin_ht of Entr� At a11 tixnes during the term of this Lease, the Lessor shall have the right, by itself, its agents and employees, to enter into and upon the Property during reasonable business hours or, in the event of any emergency, at any time for any legitimate purpose. 14. Title and �uiet En'�ment a. Lessor warrants the (i) it has full right, power, and authority to execute this Lease; (ii) it has good and unencumbered title to the Property free and cleaz of any liens or mortgages and (iii) the Property constitute a legal lot that may be leased without the need for any subdivision or platting approval. Lessor further wanants that Lessee shall have the quiet enjoyment of the Properiy during the term of this Lease. b. Lessee has the right to obtain a title report or commitment at Lessee's expense for a leasehold title policy from a title insurance company of its choice. If, in the opinion of Lessee, such title report shows any defects of title or any liens or encumbrances which may adversely affect Lessee's use of the Properiy or Lessee's ability to obtain leasehold financing, Lessee sha11 have the right to cancel this Lease immediately upon written notice to Lessor. c. Lessee shall also have the right to have the Property surveyed, and, in the event that any defects are shown by the survey which, in the opinion of Lessee, may adversely affect Lessee's use of the Property or Lessee's ability to obtain leasehold financing, Lessee shall have the right to cancei this Lease immediately upon written notice to Lessor. d. Lessor represents to the best of their Irnowledge that hazardous substances have not been generated, stored or disposed of on the Properiy nor have the same been transported to or over the Properry. "Hazardous substance" shali be interpreted [:7 q� � broadly to mean any substance or material defined or designated as hazardous or to�c waste, hazardous or to�c material, hazardous or toafic or radioactive substauce, or other sixnilar term by any federal, state or local environmentai law, regularion or rule presently in effect promulgated in the future, as such laws, regulations or rules may be amended from time to time; and it shall be interpreted to include, but not be 1'united to, any substance wluch after release into the environment will or may reasonably be anticipated to cause sickness, death or disease. Lessor will hold Lessee harmless from and indeuuiify Lessee against and from any damage, loss, expenses or liabiliry resulting from any breach of this representation and warranty including all attorneys' fees and costs incurred as a result thereof. 15. Assignment 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 execurion of any agreement to sublease the Lease Properiy. 16. Successors and Assiens. This Lease shall run with the Property described in E�ibit A. This Lease shall be binding upon and inure to the benefit of the parties, their respective successors, personal representatives and assigns. 17. Events of Default. The Occurrence of any of the following events during the term of this Lease shall constitute an event of default by the Lessee. Lessor shall give written notice to Lessee of the event of default and Lessee shali have 90 days to cure said default. a. The filing of a petition to have Lessee adjudicated baukrupt or a petition far the reorganization or arrangement under by laws of the United States relating to baukruptcy filed by Lessee; b. In the event a petition to have Lessee adjudicated baukrupt is filed against Lessee, the failure to dismiss such petition within ninety (90) days from the date of such filing; c. The assets of Lessee or of the business conducted by Lessee on the Leased Premises be assusned by any trustee or other person pursuant to any judicial proceedings; d. Lessee makes any assignment for the benefit of creditors; e. Lessee is more than ninety (90) days behind in rent payments; £ The failure of Lessee to observe and perform any covenant, condition or agreement on this part to be observed ar 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 ar recorded against the Leased Property within sixty days after the ? 9� � date of such filing or recording, whichever date is eazlier. It is an express covenant and agreement of Lessor and Lessee that Lessor may, at its election, terminate this Lease in the event of the occurrence of any of the events described in this pazagraph or in pazagraph (20) relating to liens by giving not less than ten days' written norice to Lessee; and when so ternunated, Lessor may reenter the Leased Property. It is fiu�ther expressly understood and agreed that Lessor shall be entitled upon such reentry, notwitlistanding any other provision of this Lease, to exercise such rights and remedies as are provided in Pazagzaph (21) of this Lease. 18. Comnliance with Laws. The property described herein may be used for only the purposes stated herein. It is the sole and exciusive responsibility of the Lessee in the use of the property to comply with all laws, rules, regulations or ordinances imposed by any jurisdiction affecting the use to wluch the property 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. 19. 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 rumiing with the land, that a. No person, on the ground of race, sex, sexual or affectional orientation, color, creed, religion, age, disability, familial status, marital status, status with respect to public assistance or national origin or anceshy shall be excluded from participating in, be denied the benefits of or be othenvise subjected to discrimination in the use of said facilities; b. That in connection with the construcrion of any improvements on said lands and the furnishing of services thereon, no unlawful discrlmination shali be practiced in the selecfion of employees and contractors, by contractors in the selecrion and retention of first tier subcontractors, and by first-tier subcontractors in the selection and retention of second-tier subcontractors or by any of the same in the selection of vendors or material suppliers; c. That such discrimination shall not be pracficed against the publia 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 Properry; and d. That the Lessee sha11 use the Property in compliance with a11 other requirements imposed pursuant to the Saint Pau1 Legisla6ve Code Chapter 183, Minnesota Stat. Chapter 363 and all other State, Loca1 or Federal laws, rules, regulations relating to discrimination. i � � 20. Liens. The Lessee shall not pernut mechanics' liens or other liens to be filed or established or to remain against the Leased Properiy or FaciliTy for labor, materials or services, furnished in connecrion with any additions, modifications, repairs, renewals or replacements made to the Leased Properry, 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 irrevocable 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 mechanids or other liens filed or estabiished 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 Leased Property to any loss or forfeiture, the Lessar may require the Lessee to use the escrow account to promptly pay a11 such unpaid items and i� Lessee fails to pay from the escrow account, the Lessor may pay and chazge the Lessee as Additional Rent. 21. Default Remedies. In the event Lessar elects to terminate this Lease, due to a Default under Paragraph (17) of this Lease, Lessor may elect any one or more of the following remedies: a. Exercise any remedies available to it under the Minnesota Uniform Commercial Code. b. Take whatever action at law or in equity may appear necessary ar appropriate to collect the 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. c. In exercising any of its remedies set forth in this Section, the Lessor may, whethez or not the Lease is then in effect, hold the Lessee liable far 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 auailable remedy or remedies, but each such remedy sha11 be cumulative and shall be in addirion to every other remedy given under this Lease or now or thereafter existing at law or in equity by statue. No delay or omission to exercise any such right or power accruing upon any default shall impair any such right or power or sha11 be construed to be a waiver thereof, but any such xight 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. 22. Default of Pa�nent• 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 lixnited to Rent, then the remaining unpaid balance sha11, at the option of the 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 i i 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 it option, may enter a judgment, at any time within one year 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. 23. Alterations. The Lessee will not make any alternations to the Property 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 alterations shall be done by the Lessee at its own expense. All such work sha11 be perFormed under the Lessor's supervision and any unprovements made to the Leased Properiy at the Lessee's expense sha11 become the properiy of the Lessor at the end of the Lease period. Lessee agrees that all alterations will be dome 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 Property by reason thereof. 24. Amended. Anything herein contained to the contrary not withstanding, this Lease may be temiinated, and the provisions of this Lease may be, in writing, amended by mutual consent of the parties hereto. This Lease constitutes the entire agreement and understanding of the parties, and supersedes all offers, negotiations and other agreements. There are no representations or understandings of any kind not set forth herein. Any amendments to said Lease must be in writing and executed by both parties. DATED as of the date first set forth above. APPROVED AS TO FORM: City Attomey LESSEE: CIRCUS OF THE STAR Dan Butler n:\group\sp\wp\agreexnnt\circus.les � 10 LESSOR: \CITY OF SAINT PAUL �`, Superintendent of Pazks and Recreation Mayor Norm Coleman Director of Financial Services City Clerk