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91-1411 �� Return co to» a� � ,�/ ' py •OR��1 `I�� Council File # , I s,' ' �-� �l�`�'-;��: Real-Est�te Div��ion t-• 21� City Hall (Counxes) (EC) RESOLUTION Green sheet � CITY OF SA T PAUL, MII�,IaIES0��4 � � j , � , resented By I Referred To Committee: Date �/-�� WHEREAS , on July 9 , 1991 , the City Council authoriz�d , in .�:,_ Resolution 91-790 , the execution of Lease Agre`e�pent CS/71 , a five- year lease agreement with the Commerce PartnersYiip for 10 ,�52 square feet of office space on the lst and 2nd floors of the Commerce Building , and an option in the second year for anI additional 773 square feet, to house the Division of Building Inspection & Design; and WHEREAS, the Mayor has since determined that a longer leas� term would better serve the needs of the City; _ , ,� BE IT THEREFORE RESOLVED, that said Council resolution �91-�90 be hereby rescinded; and -: :�,• BE IT FURTHER RESOLVED, that the proper City officials be�. .- authorized and directed to execute Lease Agreement CS/7�1: amended to include an eight-year term with an optional � -�.. ear � r�,�' extension. �� I � ��,� x.;-� n,. si�" ,, � . �,.. �.;: '�7 � ��, � — «� ;aJf l.�'' ��s�- �/ I Yeas Navs Absent Requested by Department of: smon oswitz on Finance & Management Services I acca ee ' et man �� /� I vne irector i son BY� ` ��.L,v`I 1 Adopted by Council: Date Form Approved by City Attorn�y Adoption Certified by �Council Secretary gy: i��W �a�vKG� 7-��I/, BY� Approved by Mayor for Submis�ion to Council Approved by Mayor: Date By: By� ' I � � � � ��` ��-��=/1 DEPART ENT/OFFIC /COUNCIL DATE INITIATED Finance & rra GREEN SHEET N°' 15883 CONTACT PERSON&PHONE INITIAUDATE INITIAUDATE �DEPAqTMENT DIRECTOR �CITY COUNCI Dave Nelson _ assicN �„pITYATTORNEY •'�r � �CITYCLERK ,-° MUST BE ON COUNCIL AGENDA BY(DATE) NUMBER FOR ROUTING �BUDGET DIRECTOR �FIN.8,MGT.SgRVICES DIR. ORDER f'2—I MAYOR(OR ASSISTANT) � I-' I TOTAL#OF SIGNATURE PAGES 1 (CLIP ALL LOCATIONS FOR SIGNATURE) ! ACTION REQUESTED: To rescind Council Resolution 91-790, authorizing a five year lease of 10,552 s uare feet of office space in the Commerce Building with an option in the second year for an additonal 773 square feet; ;and to authorize an eight year agreement for the same space. REF 1. Resolu- tion for ado tion• 2. Co RECOMMENDA710NS:Approve(A)or Reject(R) PERSONAL SERVICE CONTRACTS MUST ANSWER THE FOLLOWING QUESTIONS: � _ PLANNING COMMISSION _ CIVIL SERVICE COMMISSION 1• Has this person/firm ever worked under a contract for this department? _CIB COMMITTEE YES NO _STAFF _ 2. Has this person/firm ever been a city employee? YES NO _ DiS7RiC7 COURT _ 3. Does this persoNfirm possess a skill not normally possessed by any current city employee? SUPPORTS WHICH COUNCIL OBJECTIVE9 YES NO I Explatn all yes answers on separete sheet and attach to green sheet INITIATING PROBLEM,ISSUE,OPPORTUNITY(Who,What,When,Where,Why): On July 9, 1991, Council authorizied five year lease. The May�� a longer lease term would be more beneficial to the City, ently de�termined that J!�L 18 1991 _ aF�oC� �� THE� DfRECT �� D�FAf�T�t1�cN7 �F fIfVRN.�C� ;:: , ADVANTAGESIFAPPROVED: �'— -' �CES � The City would be assured of occupancy for eight years at a known rental rate. �r;., DISADVANTAGES IFAPPROVED: : � ,., Should the City decide to abandon the lease between the fifth and eighth years, �t would be obligated to repay a pro-rated portion of the build-out costs. DISADVANTAGES IF NOT APPROVED: TOTAL AMOUNT OF TRANSACTION $ 1�3�+H��S�.�S COSTlREVENUE BUDGETED(CIRCLE ONE) YES NO FUNDING SOURCE ACTIVITY NUMBER FINANCIAL INFORMATION:(EXPLAIN) �� Return copy to: Couacil File # - a � Rea'1 Estate Division r i oti�-�*�� ' 218 City Hall Gresn Sheet � ' cEC� c�scs�� RESOLUTION C�TY OF SAINT PAUL, MINNESOTA (�' rf/--j�'�'/ Presented By Referred To Committee: Date , WHEREAS, as a consequence of the CHCH Renovation Project , �he Division of Building Inspection and Design is schedule to epart from the CHCH during December 1991; and WHEREAS, representatives of said division, after �compariso of several area properties and in collaboration wi h the Real Lstate Division have concluded that spac2 availabTe in the Commerce Building best meets their requirements; and ..,,, WHEREAS, said representatives have negotiated Lease ,ag eement(-� CS/71 with the Commerce Partnership; and WFIEREAS, the Real Estate Division has determined, by com arison"" with similar buildings , that the agreed-upon rent repre'se ts the � actual rental value of the leased premises; and ,� � ` ' . _ 2 �� _:. i �f,�F t!� qS}S,� � ` WHEREAS, as ordered by the Finance Committee during its i�iay�6 ,��1g:9�, �5< meeting , Paragraph (9) of Lease Agreement CS/71 has been �end'�c�'� �. a�'' to reserve to the City the option to terminate the lease �a��4�r' �w - ' . time following the execution of said ea `' ��"�� ,� L se Agreement CS,�71 ��,,a,nc�F� prior to the scheduled date of termination; and ' ` � � � � �d; S t 5,' , WHEREAS , this resolution does not address the budg t for� � � furnishing the Leased Premises; and WH�REAS, as directed by the City Council during its Juiy 9 , 1991 , .-}� �neeting , the term of the agreement has been reduced from eight � years to five years; �_ `�=-' NOW THcREFORE BE IT RESOLVLD: that the proper City offici ls are , hereby .authorized and directed to execute Lease Agreement S/7i. � I yeas Navs I Absent Requested by Department of: zrrrona -� i oswitz ' -_ , 1 �on i _ ; i Finance & Mana�ement Services . accanee -� � : e c zman ! � + - un e � � i son -� By: Director � G �`Y'�I � Adopted by Council: Date `� �( -�{ � Form Approved by City Attorney Adoption Certified by �Council Secretary gy: ��[� �jJ(iy�/I•�C I �17�c!/ . gy: ' ��f.t�_,� /�j /��./��-�'1"' , Approved by Mayor for Submiss on to approved by Mayor: Date Council By: BY' . . �`�"� (cs71) Revised 7/18/90 Authority (C.F. or•-A.O. ) ° LEASE NO. $ CYTY �� • � � . FINANCE DEPT. LEASE NO. CS 71 ,� � 9� lCo� 1�19 0 �, a DATE' 91 ``. � tl! 11 iIIQ b ,� us li a � ti LESSOR: COr�Il�fERCE PARTNERSHIP �aa+ City of Saint Paul 8 East Fourth Street Reet est te Agreement SAINT -PAUL MN 55101 �. � �;. LESSEE: CITY OF^SAINT PAUL TM ''� �°�t; : <�� # �r;�^ ; ,v. .. �� x�� *c��a� �� ': , ��, DEPARTMENT_;OF�'COMMUNITY SERVICES y� ,��.�� ,� ,�� := ��.:� ,.ti , t "�.` .' .. ,.3 yr��i t,�' : : 4 -. DIVISION OF BUILDING INSPECTION &� DESIGN , .�� "V F �t° t : .� � . ry�. ��$, � K � 1' �"� �i' a� � �' � - �f~��c : :,;,.. • ��' ' � t� Yf x .! .� w� �"k\a .E (1) Leased Premises. The LESSOR, in �c�ons�deration of t32 ��' , ment of the Base Rent and Additional Rent he�einafter_specif e�.,F �'e�� f�`: paid by the LESSEE, and the covenants and�agreements herein c 'ntai, ;�� v ��...ti�A� x shall deliver to the LESSEE possession �of the premises herein fter;=r df;p- �.; (c 4 ' y.A�, � ferred to as the "Leased Premises, '� whose address is�T� �'°' , ,.;t� , :F� The Commerce Buildincr - 8 East Fourth Street - Saint Paul MN 55101 � x` �: - .:� consistin of 10 552 s ' �'� g , quare feet located on the lst_„and�2nd f oors;:,aS�� r shown in EXHIBIT "A" attached hereto and made a„part��hereof, in the co� . dition and at the time specified in Exhibit'�"B", also attach d heret�'� �`f and made a part hereof. The LESSEE shall also ;'have first opti n on the�-,�.' � ',_� 773 square feet of space now occupied by Goldberg Bail Bonds when the�`; `. '' current lease for that space expires on December 31, 1991. ,S �:`h addi= � � � tional space to be appended to the Leased Premises and be�comLL`�.a part thereof, subject to the same rental rate and all terms and�ond tions of this agreement. The Leased Premises shall be availabl�e for,u e by the LESSEE 24 hours a day, seven days a week. LESSOR shall have no liability to make alterations, improvementts or re- pairs of any kind on or about the Leased Premises, except for �hose im- provements set forth in said Exhibit "B" or other obligations escribed elsewhere in this agreement. The taking of possession _of. th Leased Premises by LESSEE shall be conclusive evidence that the Le`ased Premises were in the agreed-upon condition at the commencement of the Le se term. LESSOR shall have no responsibility or liability for loss or amage to fixtures, facilities or equipment installed or left on the Leased Prem- ises, unless caused by the willful negligence of LESSOR, its agent or employees. ' 1 I �C�'"�� (2) Term of lease. This lease shall be in effect for a �erm com- mencing and ending on the dates indicated below, unless termina}ted earl- ier by the LESSEE as provided herein. Term (Months/Years) Commencing Date Ending Date ' Eiqht Years December 1, 1991 Novemberl30 1999 � (3) Use of Premises. The LESSEE shall use'�:and occupy t�e Leased Premises for the following purpose: Office Space = and for no other purpose without the prior written consent of� LESSOR. (4) Rent. � (A) Base Rent. LESSEE agrees to pay to LESSOR -atl I,ESSOR!S office, 155 South Wabasha, Suite 129, Saint Paul, Minnesota 51�07,; nr such other place as LESSOR may hereafter from time to time .des��n"ate. in ,� ; ;r writing, Base Rent as scheduled in Exhibit "B" , attached heret ,��c� ��ade �t�-f ;� a part hereof. In the event of any fractional months occurri � �ng ��M�� the term of this Lease, LESSEE shall pay rent on a pro-rata ba i`'s �'u��R�j��: lated on the ratio of the actual number of days of possessi'on :;» � �� ' ; to the total number of days in the month in question. � . ��'�' � � '� , x� �,, (B) Additional Rent. In addition to the Base Ren ,'� � E��" a�;` shall pay each year its pro-rated share of taxes exceeding �he t�,..+�s w� �� paid in the year, 1991, as calculated in Paragraph (5) . Electrical'co�'�`��' �`� � sumption for Leased Premises (excluding that used in operati n of��a��"+ �� conditioning) shall be billed directly by, and paid directl to, ,th�a. , � utility. �'' ;� �,,� � f 'Q�� The applicable account number for City Finance Accounting Code is: A�; ' '� 4�y+ .� , s'� r.' S," r-�, `t 1 A � ;�� (5) Taxes. In addition to the Base Rent provided for in Paragraph , (4) of this Lease Agreement, LESSEE agrees to pay each year. as Addit- ional Rent, its pro-rated share of real estate taxes exceedinglthe taxes paid in the year, 1992 . LESSEE'S proportionate share of any increase shall be calculiated upon the ratio of the area of the Leased Premises (which will Ibe 10, 552 square feet the first year and 11, 325 square feet in subsaqu�nt years) to the total area of the Commerce Building (which is square feet) ; and, during the first year and the final year of the l ase, upon the number of months (expressed as a fraction of the full ear--each month being equal to one twelfth of the year) that the LESSE occupies the Leased Premises. 2 I �� One-twelfth of the Additional Rent payable each for tax incr ases, if any, shall be payable monthly together with the Base Rent. uch adc�- itional Rent shall be calculated as soon as possible after Ja uary 1 of each year; shall be based upon the amount by which the taxes p�ayable in the then current year exceed the taxes paid in the year 1992 ; and shall � apply retroactively to January 1. Any amount retroactively ue shall remit to the LESSOR with the rent next due following the r ceipt by LESSEE of a copy of LESSOR'S tax statement. x � (6) Rictht of Entrv. The LESSOR, its emplo.jrees and agents shall have the right to enter the Leased Premises at all"reasonable �times for the purpose of inspecting, cleaning, repairing, altering or ''mproving the premises or building, provided that such entrance does not 'nterfere with the conduct of the LESSEE'S business and that said LESSO , employ- ees or agents check in with the receptionist when entering t ekLea`sed : Premises during business hours. The LESSOR, its employees o ':�agents, ., ; at least one full day prior to the time of intended access, Y}a}]�=;�e � =; quest of the LESSEE's agent who is in charge of the activities o�ucted � on the Leased Premises for a similar right of access for the p ¢� s�' bf F��h exhibiting the premises to prospective tenants, purchasers 'or ot��rs`�� j� ,�. �r � , �. y q�'�� o. ?�� '0 ��. J ° u�,�r � (7) Insurance. .�'Y �� F�,a* ` , ��,,�� t� ''4�Y � �,y'��"� . (A) LESSOR'S Insurance. The LESSOR shall acquire and �ke� ' n,�� ef fect during the term of this agreement the following covera�ges•`,`k. �;° "� : ;,: �� ;� �: (1) FIRE AND ALL RISK INSURANCE, including fire, extende covera�e� �;� �'�'� and all-risk insurance covering the Leased Premise and� al��"��'� � property located therein belonging to LESSOR, in �n amount ��g� equal to 90 percent of the full replacement and reconstruction,�F�� cost of the property. '� .�': ' t�xt:v (2) COMPREHENSIVE GENERAL LIABILITY INSURANCE including blanket �_- .; contractual liability coverage and personal injury liability : coverage with a combined single limit of not ess thari $600, 000 per occurrence and $1, 000, 000 aggregate. Such insur- ance shall (a) name the City of Saint Paul as additional in- sured; (b) be primary with respect to LESSEE'S insurance or self-insurance; (c) contain a standard cross liab ' lity en- dorsement. (3) AUTOMOBILE LIABILITY INSURANCE with minimum limits o $600, 000 combined single limit and $1, 000, 000 aggregate, covering hired, non-owned and owned automobiles. (4) WORKERS ' COMPENSATION INSURANCE with not less than tatutory minimum limits; and EMPLOYERS ' LIABILITY INSURANCE ith mini- mum limits of at least $100, 000 per accident and w'th an Al1 states endorsement. 3 � � ""� (5) The LESSOR shall supply to LESSEE current insurance! certifi- cates for policies required in Paragraph (7) . The s�aid cert- ificates shall certify whether or not the agent has �rrors and omissions insurance coverage. (6) The limits cited under each insurance ,requirement a ove es- tablish minimums; and it is the sole 'responsibili�y of the LESSOR to purchase and maintain additional insuranc that may be necessary in relation to this lease'. - � (7) Nothing in this contract shall constitute a waiver y the LESSEE of any statutory limits or exceptions ox� lia�ility. (8) LESSOR shall place the insurance with responsible i surance companies authorized and licensed to do business in he State of Minnesota and approved by LESSEE, and shall deliv r copies of the policies to LESSEE on the date of LESSEE':S exe uti.c�n of this agreement. The policies required in paragraph (�7�}4'�Y%all '.: be endorsed to indicate that the insurer cannot a �� ; �r ,� change the insurance without first giving the LESSEE �,� �ys4' written notice. �; �� ,Y - ��.. I�,�yA ,�{t � � 1��' t rt�e 5� � = k .. �� i � ��' (B) LESSEE'S Insurance. The LESSEE shall acquire during h e �� of this lease the following coverage: 4 :` �Y`� �3��, n'�'� =:�: .��:, , �,w,g (1) The LESSEE shall be responsible for the self insura� ce�o � `� } ,��-:, or the acquisition of Commercial Property Insuranc�� on��; s �'�� ,,j personal property. ��,�� :�.�� j�� (2) The LESSEE is self-insured under the laws of the St�te of h�;t�� a�,�� Minnesota for the purposes of tort claims against the LESSEE t �a�� (C) Waiver of SubroQation. LESSOR waives its right of s�broga- ;� � � tion for damage to the Building, contents therein loss of use thereof ��' and/or loss of income, up to the amount of insurance proceeds c llected� �t�j�N LESSEE waives its right of subrogation for damage to propert�y in the ; Leased Premises, loss of use thereof, loss of income and/or accounts re= ` '� ceivable, up to the amount of their respective insurance proc eds co1- lected. The parties shall notify their respective insurance c�mpanies, in writing, of the provisions of this paragraph; and, if either cannot waive its subrogation rights, such party shall immediately n�tify the other party, in writing. (8) Notice. All notices herein provided to be given, or tahich 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 whe made in writing and deposited in the United States Mail, certified an� postage prepaid, and addressed to the LESSEE at the address of the Leased Prem- ises, and to the LESSOR at the address then fixed for payment of rent. The address to which the notice shall be mailed may be changed by writ- ten notice given by either party to the other. 4 . . , ��' (9) Assianment, Sublease and Termination The LESSOR shall permit the LESSEE to assign, sublet and/or terminate this lease under �he cir- cumstances, and subject to the conditions, expressed below• � (A) Assignment and Sublease. LESSEE may not assign �r hypo- � thecate this Lease, nor sublet the Leased , Premises or a thereof, whether by voluntary act, operation`:of law or ot erwiset without the prior written consent of the LESSOR in each i stance, whose consent shall not be unreasonably withheld. Con ent by LESSOR to one assignment of this lease or to one sublettin of the Leased Premises shall not be construed as �`a waiver of SSOR'S rights under this Lease as they pertain to any subsequentlassign- ment of this lease or subletting of the Leased Premises. Ij,ESSOR'S rights to assign this Lease are and shall remain unqualifi�ed. No assignment or sublease shall release the LESSEE of any of i'�s� ob- � ligations under this lease. .> �- . , _ l :' '.� (B) Termination. In the event the LESSEE'S funding, for tfie : , Leased Premises is reduced or discontinued at any time f `��1��`��'" delivery of the executed agreement to the LESSOR and prio; �xj,o ��g expiration of its term, the LESSEE shall be permitted to t r `�;�`��e this lease, with 90 da ys written n o t i c e a s s p e c i f i e d °i n P �� 4 (8) of this lease, a n d b e t h e r e w i t h r e l i eve d o f any o blig � r ��` Nr: � pay rent to the LESSOR. � � �: �� " ,,��. K 5 "., , �, �. �z�"�: •: However, LESSEE would be obligated to the LESSOR for the�. u�n� 'F` � ized portion of the cost of the leasehold improvements desc ibed �`�'� °� Exhibit "B" , less any residual value thereof. The unamorti ed por�,. tion of said costs of leasehold improvements shall be calcu� .J,.� ��' follows: ],ated��a�� „�,; x ' i- §s�'t t � �� (1) The unamortized portion of the costs of painting a�nd car— peting shall be calculated separately: `�� . �,:, (a) Prior to the fifth year repainting and recarpeting speci-- �� fied in Exhibit "B", the remainder of the first five years of ��' the term of the lease, divided by five years, times the cost of '� the original painting and carpeting. I (b) Following the fifth year repainting and recarpetinc� speci- fied in Exhibit"B", the remaining three years of the f�ll term of the lease, not including any extensions or renewal options thereto, divided by three years, times the cost of thle fifth year repainting and recarpeting. (2) Al1 other costs of leasehold improvements shall be� calcu- lated according to the following formula: The remainde� of the original term of the lease, not including any extensionsl or re- newal options thereto, divided by eight years, times thelcost of said leasehold improvements exclusive of the expenses for painting and carpeting. I 5 I I . ��_ Residual value shall be determined by agreement of the LESSOR and the LESSEE prior to the date of termination and shall r present their best estimate of the increase in probable market valta�e of the Leased Premises, owing to said leasehold improvements, over the probable market without said improvements. Any amount owi�g shall be due and payable on the date of termination. However, if the Leased Premises, should be�.'subsequentlY� let to another LESSEE, the residual value may, at the LESSEE'S op�tion, be recalculated at that time to reflect actual market value a¢ demon- strated by the new lease agreement rather thari`-the probablle market value used in the above calculations. Any� refund owing to the LESSEE shall be due and payable within 30 days o� the comm�ncement of the new lease. (10) Utilities and Services. LESSOR shall furnish "services" in and about the Leased Premises as shall be necessary to the com ortab�e ; use and occupancy Of the premises. Services shall include�buy � notr:`�b'e -�` limited to Heat and air conditioning to maintain a temperature ang�of 68 to 78 degrees, HVAC, electrical and mechanical maintenanee, � �lev�.tqz � and security, j anitorial service (including furnishing and in ;; ��,��ng�'�;�°.��=' li ht starters and ballasts window washin fi '�" � '�# �� :'°� 9 , g, pest control, ,etc: � ; �, see Exhibit "C" for typical janitorial scope of services. P ��=- Nt however, LESSOR shall not be liable for any damage for failure �to�• . . �5�� ,�� ish such services by reason of breakdowns, the necessity for,re az,,. o�� ,� improvements to such services, fire, explosion, strikes, or� a�y , «, � �.�;.- beyond LESSOR'S reasonable control and no temporary interru t�on.. �'� failure of such services shall render LESSOR liable to LESSEE �for da��-} ages by abatement of rent or otherwise. ` ` �"`�'_�� ` <� �* �� ,�-t�� Subject to agreement by the "Utility, " the LESSOR, at its own �ost and ��.�. � s , r expense, shall sub-meter the electrical consumption; and th� LESSEE ''t �- shall pay directly to the "Utility�� for the actual electrical �isage in �,:: the Leased Premises. LESSOR agrees to purchase and install at' its own `,n�;� cost, electric lamps, tubes, starters and ballasts used in th� Leased '��= Premises. ��;: (11) Events of Default. (A) Default of LESSEE. If any one or more of the fbllowing occurs: ' (1) a rent payment from LESSEE to LESSOR shall be and r�main unpaid in whole or in part for more than thirty (�0) days after it is due and payable; (2) LESSEE shall violate or default any of the other co enants, agreements, stipulations or conditions herein, �nd such violation or default shall continue for a period of ten (10) days after written notice from LESSOR of such viol�tion or default; 6 , , � . �� (3) if LESSEE shall be adjudged bankrupt or file a peti�ion in bankruptcy or for any arrangement under the Bankrupt�y Act or become insolvent or have appointed a receiver of i�ts prop- erty, then the LESSOR shall have the option to declare this Lease �'orfeited and the term thereof ended, and to re-enter the Leased Premises; with or without process of law, using such force as may ,be necessary �o remove all persons or chattels therefrom; and LESSOR shall not be li�able for damage by reason of such re-entry or forfeiture; ' Notwithsta ding re- entry, liability of LESSEE for the rent provided for herein sha�.l not be relinquished or extinguished for the balance of the term of th�s Lease. LESSEE shall pay, in addition to the rentals and other sums agr�ed to be paid hereunder, such additional sums as the court may adjudicat� reason- able as attorney's fees in any suit or action instituted by SSOR to enforce the provisions of this Lease or the collection of th rentals k° : due LESSOR hereunder. � : � �a k� �, i�,� �� " (B) Default by LESSOR. LESSOR shall not be deemed o ��'�_ �n�r: 4;; �� ; r default under this Lease until LESSEE has given LESSOR writt n, � ��,�, �, ,�;;. specifying the nature of the default and LESSOR does not cure i s ' : e "�``�`�5 fault within thirty (3 0) days after receipt of said written nc�t4 . ��}`�`%` ��a`aF6,-. � � � �e +��. { � �� (12) Surrender of Premises. On the last day of the te o� .a� ��'' � < Lease, or any extensions or hold over periods, or on the soone� terin , '�*� ` ation hereof, LESSEE shall peaceably surrender the Leased Pr mises �T K� �� " : good condition and repair, subject to reasonable wear and tea�. , On. o ��,; before the last day of the term of this Lease, extensions or holdover.r � �: ,� �. periods, or the sooner termination thereof, LESSEE shall at it� expense ' '��``,�� remove all of its equipment from the Leased Premises; and an � ro ert `' � YP P Y '` not removed shall be deemed abandoned. All alterations, additions and ;; ,.�¢� fixtures, other than LESSEE'S equipment, which have been made or ` in `� ,:� stalled by either LESSOR or LESSEE upon the Leased Premises shalll remain s ' dr'y. as LESSOR'S property and shall be surrendered with the LeasedlPremises 3` as a part thereof. If the Leased Premises be not surrendered a��t the end of the term or sooner termination thereof, LESSEE shall indemn�fy LESSOR against loss or liability resulting from delay by LESSEE in sojsurrend- ering the premises, including without limitation claims made bx any suc- ceeding tenant founded on such delay. LESSEE shall promptly isurrender all keys for the Leased Premises to LESSOR at the place thenlfixed for payment of rent and shall inform LESSOR of combinations on anyilocks and safes on the Leased Premises. i (13) Indemnitv. LESSOR agrees to hold LESSEE harmless fo� any lia- bility for damages to any person or property in or about t�he Leased Premises caused by the negligence of the LESSOR, its emp�loyees or agents. LESSEE agrees to hold LESSOR harmless for any lial�ility for damages to any person or property in or about the Leased Premi�es caused by the negligence of the LESSEE. i 7 � , , . ..+�,� (14) Holdover. In the event LESSEE remains in possessior� of the Leased Premises after the expiration of this Lease or its extensxon per- iod and without the execution of a new Lease, it shall be deem�d to be occupying the Leased Premises on a month-to-month basis. It hall be obligated to pay rent equal to the last monthly rent as set orth in Exhibit "B" and shall be subject to all the conditions, provis ons and obligations of this Lease in-so-far as they apply to a month-�o-month tenancy. Holding over as provided in this paragraph shall not b deemed to constitute Surrender of Premises as set forth;in Paragraph (�12) . (15) Pollution and Contaminants. LESSOR agrees to comply �aith all ordinances, laws, rules and regulations enacted by any governmen�tal body or agency relating to the control, abatement or emission of air and water contaminants and the disposal of refuse, solid wastes o�, 'liquid wastes. LESSOR shall bear all cost and expense arising from co�i�l5iance with said ordinances, laws, rules, or regulations and shall in emiiify, ` defend, save and hold harmless LESSEE from all liability, �, ?cluding " without limitation, fines, forfeitures, and penalties arisinq,', ; m �he ; ,��..�� failure by LESSOR to comply with such ordinances, laws, rules or�:x la � tions. LESSEE has the right to perform cleanup and deduct .su ; �. ��'s��ts,; ° ` from the monthly rental payments should the LESSOR fail to com'�` �u� W:'-e� �': 5 �4; �� ' . �.a }� � �/� ', ,� r`_._ l. R.l i ��. (16) Controllina Lease. In the event there is any prior �xi '� � Ct�`s" i.. lease or rental agreement between LESSEE and LESSOR (or its pre ece , � in interest) covering the Leased Premises, it is agreed and un�erst,, F� �� that this Lease shall cancel and terminate any prior leases o#r re�ita -0� � agreements as of the effective date of this lease. � � , �� }h � � r{��;� (17) Destruction. I f the Leased Premises should be damag�d or de � �' `�'� stroyed by fire or other casualty, the LESSOR shall have the right to "=�,�� terminate this Lease Agreement provided it gives written noticd thereof �+�, .�'� to the Lessee within thirty (30) days after such damage or dest�ruction. ' `� If the Leased Premises shall become untenantable or unfit for aceupancy r: by the total or partial destruction of the building by fire br other casualty, the LESSOR shall fail or refuse within thirty (30) day�s there- after to agree in writing to restore the same within sixty (60) days, this Lease Agreement may be terminated by the LESSEE by noticelin writ- ing. If this Lease Agreement is not thereby terminated, th� LESSOR shall, at its expense, restore the Leased Premises to as near the con- dition which existed prior to such damage or destruction as r�asonably possible. Rent shall abate during such time as the Leased Premises are �ntenant- able in the proportion that the untenantable portion of the Lea�ed Prem- ises bears to the entire Leased Premises. Should the LESSOR Ielect to restore the Leased Premises, the LESSOR shall, at its own expen5e and at the option of the LESSEE, relocate the Leased Premises to a si�►ilar and appropriate space, including furniture and communications (voir�e, data, video) until such restoration has been completed. 8 I � � ��.�" � The LESSOR shall have the exclusive right to all insurance pIroceeds relating to said Leased Premises, except the proceeds of the $,ESSEE'S own insurance on its personal property and other costs relate� to the casualty loss. (18) LESSEE'S ObliQations. LESSEE agrees: I � (A) to use the Leased Premises in such manner so that no mpre than reasonable wear and tear will result, except any damagle caused from fire or any other casualty which pr:.operty insurance would normally cover; (B) to keep the Leased Premises in a clean and sanitary co�ndition; (C) to not commit any nuisance or waste on the Leased Pr�emises, throw foreign substances in plumbing facilities or wJaste,:,any of the utilities furnished by LESSOR; ,,1 . (D) to not obstruct entries, halls, elevators, stairways;�.�la�ah.� tories or other common areas or use the same .for ,�� g�;, other than their intended purpose; �K,.`; 4� �v ' (E) to not erect signs on or about the Leased Premises w�i �" ; written permission of the LESSOR. �., s; ��°� .� ' { : : ;;��y � If LESSEE shall fail to keep and preserve Leased Premises in. he �� 4�'' � -: or condition required by the provisions of this lease agreem :n�,,; �� ,� LESSOR may, as its option, put or cause the Leased Premises to e pu `'.�,. „�,�� the condition and state of repair agreed upon, and in such clase,* t �; - .��: LESSEE, on demand shall pay the cost thereof. ��`�� I � ��` �:�� (19) Compliance with Laws. LESSEE agrees not to commit dr permlt�S�=F 4�� any unlawful act to be performed on the premises or any omiss�on which ;y;�� i'.v will be in violation of any statute, regulation or ordinance of any gov- ; ,-.�� ernmental body; or which will increase the insurance rates on t e build- �`� ing; or which will be in violation of any insurance policy c rried` on the premises by the LESSOR. The LESSEE shall not make any und�e or un- - - seemly noise or otherwise disturb the other occupants of thelbuilding and shall not do or permit to be done in or about the LeasediPremises anything which will be dangerous to life or limb. (20) Non-Discrimination. The LESSOR or the LESSEE for himlelf, his personal representatives, successors in interest and assigns, �s a part of the consideration hereof, does hereby covenant and agr�e, as a covenant running with the land, that: I (A) no person, on the .ground of race, sex, color creed, rleligion, age, disability, marital status, status with respect to public assistance or national origin or ancestry shall belexcluded from participating in, be denied the benefits of or �e other- wise subj ected to discrimination in the use of sa�id facil- ities; 9 I I i, . i�"��.,r��' (B) that in connection with the construction of any imprqveients on said lands and the furnishing of services thereon, no dis- crimination shall be practiced in the selection of �ployees and contractors, by contractors in the selection and etention � of first-tier subcontractors, and by first-tier subco tractors � in the selection and retention of second-tier subcont actors; (C) that such discrimination shall not be practiced agai�nst the public in its access to and use of the facilities andlservices provided for as public accommodations (`such as eatin�, sleep- ing, rest and recreation) constructed or operatec� on the Leased Premises; and (D) that the LESSEE shall use the premises in compliance �rith all other requirements imposed pursuant to the Saint Pa�l Leg�s- lative Code Chapter 183 . ,y 3 . W��+4� ,."1�,�. —. �^ (21) Liens. Neither the LESSOR nor the LESSEE shall: pe *�' "��'��'��.; anic's, materialmen's or other liens to be filed or establis �*� _ �>:� R remain against the Leased Premises or the interests of the LESS �� ; �,.� LESSEE therein. The LESSOR and the LESSEE shall indemnify, def�n ,��KY ,�; s�r �r� and hold harmless the other from all claims, demands, actions �r,�..�: , .��,�� of action of whatsoever nature or character arising therefromt- ;r� ^ shall have the riqht to post and maintain on the Leased Premise no �-`� � .. ��. of non-responsibility under the Laws of Minnesota. r t d � . �a� y�,Y,. � (22) Eminent Domain. If the Leased Premises are, or � portio� a'� • � ; thereof is, so taken by any public authority under the power br threat � � of eminent domain, then the term of this Lease shall cease as di the day�� possession shall be taken by such public authority, and LES50R shall �° ' refund, pro-rata, any rent that may have been paid in advancel. LESSOR � a shall be entitled to receive damage awards as the LESSOR andlowner of ,� ' the Commerce Building as a result of the taking. The LESSEE� shall be ��.�`: entitled to any damages and awards, including any relocation b�nefits as a LESSEE, resulting from the taking by a public authority. I (23) Default Remedies. In the event the LESSOR fails o observe and perform any covenant, condition of agreement on its p rt to be observed or performed as required by this Lease, the LESSEE m y, at its election, terminate this Lease by giving not less than thirty 30) days ' written notice to LESSOR, provided that, should the LESSOR r ctify its failure to observe or perform as required within the said tHirty (30) day period or by a mutually agreed upon date, said written not�ice shall : be withdrawn. I Any monies paid in advance for rental of the Leased Premises �ubsequent �, to the date of termination shall be refundable to the LESSEEiand shall ' be due on the date of termination. 10 . ��f � (24) Alterations. LESSEE shall no make any alterations, �dditions or improvements in or to the Leased premises or add, disturb c�r in any way change any plumbing or wiring therein without the written c�nsent of the LESSOR as to the character of the alterations, additions or improvements to be made, the manner of doing the work and the p�rsons to � do the work. ! (25) General. � (A) This Lease does not create the relationship of prin�ipal and agent or of joint venture or of any association between LESSOR and LESSEE; the sole relationship between LESSOR and LESSEE being that of landlord and tenant. (B) No waiver of any default of LESSEE hereunder shall bg implied from any omission by LESSOR to take action on accou t. af such�� default, if such default persists or is repeated; a d;,�i�*,�ex-�'`�J press waiver shall affect any default other than as e� ;fi� < in the express waiver, and that only for the time a d� ��th~ ��` # �° extent therein stated. j �� ;h" � t �� ,. .'�'^�4"'��, � � R1� (C) Each term and each provision of this Lease Agreement�sh e��i:�Y�� construed to be both a covenant and a condition. Th� ma "`� '�� # or topical headings of the several paragraphs and c aus �`�" �4 �"� for convenience only and do not define or limit the�. cont� ° -�� ' of such paragraphs or clauses. i ' �:,�, . ' � •zsn :i p�'Kti4'q:. (D) All preliminary negotiations have been merged into �nd incor � porated into this Lease Agreement. '��. - kti�ti�; > � (E) This Lease Agreement can be modified or amended only by an �"� Agreement in Writing signed by both parties hereto� (F) All provisions hereof shall be binding upon the he�rs,suc- cessors and assigns of each party hereto. ! (G) Any and all indebtedness owing by the LESSEE to th� LESSOR pursuant to the terms of this Lease Agreement whi�h remains unpaid for a period of thirty (30) days after it fir!st becomes due and payable shall bear interest from and afterithe lapse of such thirty (30) days period at the rate of fift�en percent (15%) per annum. i (26) Amended. Anything herein contained to the co�trary not withstanding, this Lease may be terminated, and the provisiqns of this Lease may be, in writing, amended by mutual consent of the parties herein. � 11 i I . . �� IN WITNESS WHEREOF, the parties hereto have set their hands �nd seals the day and year in this Lease first above-written. . I Mayor � f- � ,� � ; City Clerk -,: ` �,: � � ��, � �°L' � `ts M1� Director of Finance and' I 4 �ii ,` Management Services R � I - r" � � .�^��''�� Department Director § ` *` �� City Attorney (Form Approval) _____________________________________________________________�___-- , .`z�r "� -,,;. LESSOR I Its Its Its I 12 � ry � � 1 _ ..�7.^. �_ ' � . I � � #� ��'�� EXIiIBIT "B° CS/71 page 1 of 4 SCHEDULE OF RENT PAYMENTS AND LEASEHOLD IMPROVEMEATTSj � Article I Base Rent Schedule The Lease shall commence upon completion of and occupancy by thle LESSEE of the Leased Premises and shall continue for a period of eight yea�s from that date. The Base Rent shall be payable as follows: YEAR 1: 10,552 square feet at $13.25 = $139,814. 00 or $11, 651. 7��7 per month YEAR 2: 11, 325 square feet at $13.75 = $155,718.75 or $12, 976.5�6 per month YEAR 3: 11, 325 square feet at $14.25 = $161,381.25 or $13, 448.4�4 per month YEAR 4 : 11, 325 square feet at $14.75 = $167, 043 .75 or $13, 920.�1 per month YEAR 5: 11, 325 square feet at $15.25 = $172,706. 25 or $14, 392.. �9 per month YEAR 6: 11, 325 square feet at $15.75 = $178, 368.75 or $14,864 �¢.6; per month I YEAR 7: 11, 325 square feet at $16.25 = $184, 031.25 or $15, 335.�4�;per month I YEAR 8: 11, 325 square feet at $1C.75 = $189, 693 . 75 or $15,807.81 per month j . Eight Year Total $1, 348, 757.75 ,. Article TI Optional Extension � LESSOR hereby grants to LESSEE an option to extend the Leas� term for a period of two years from and after the expiration of the presentlterm of tMis Lease. In order to exercise this option, LESSEE must give LEISSOR written: : notice ninety (90) days prior to the expiration of the present Iterm of tY�:i.,;s ;n Lease. Al1 terms and conditions of this Lease shall apply to !the extended;-:,, term except that LESSOR shall not be obligated for any furth�r leasehold � improvements; there shall not be any additional options to re ew; and the Base Rent shall be as follows: YEAR 9 : 11, 325 square feet at $17.25 = $195, 356.25 or $16, 279� 69 per month ' YEAR 10: 11, 325 square feet at $17.75 = $201, 018. 75 or $16, 751156 per month �.. Ten Year Total $1, 745, 132 .75 i .�. �;a'. .i j e�,' �: 14 i i , e i�� , EXHIBIT "B" CS/71 page 2 of 4 I Article III Building Improvements � LESSOR agrees to provide the following building improvements wi�hin four (4) months of the commencement oF this Lease; and LESSOR shal be res- ponsible for all costs incurred for such improvements. Proposed Time Schedule: 1. Construction on the relocation of the building entrance anl first floor Common Areas shall be completed. � 2. Common Areas shall be renovated floor by floor as tenant .f:�.nishing is completed. _G-. ' . }+ 3 . Mechanical services for additional public washrooms shall e in- stalled in 1991. These rooms shall be finished on a floor; by 'floor basis as tenant finishing is completed. 4. Water service and divertical service for the wet sprinklerlsystem shall be installed during 1991 and finished on a. floor by fl�or basis as tenant finishing is completed. 5. Insulated, inoperable windows shall be installed on a floorlby floor basis as tenant finishing is completed. 6. Mechanical systems, electrical systems, and HVAC systems s all be t ' upgraded and/or installed on a floor by floar basis to coin�ide with.� <: �' tenant finishing. • y�i- ��[{.. �L �d;+9��'�y }`t�{ �' �.: �7� Article IV Leased Premises Buildout Requirements ;.�;. The LESSOR shall build out tenant suites according to the building spec- J ifications expressed herein, and to Exhibit "A", space plans wh�ich shall � be prepared by the LESSOR'S architect and approved by the LESSEE. Such buildout shall be in two phases. The first phase shall be Completed , prior to occupancy by the LESSEE. The second phase shall cons 'st of the :; buildout of the space known as the Goldberg Bail Bonds space a d any and ':� J ' ; all of the original space which will be rearranged as a resu t of the ;'�� ' expansion by the LESSEE into the said Goldberg Bail Bonds sp ce, such ��'_ rearrangement to conform to Exhibit "A" Page 2. Construct on shall `'- begin within 45 days from the time approved plans are recei ed. The ;-�'. term of this agreement shall commence with the completion of the first ` phase of the buildout to the satisfaction of the LESSEE. �� t•a �.j 15 I . � � ��R�-,�� . . . EXHIBIT °B" CS/71 I page 3 of 4 'I (1) Low VoltaQe Wirinq on the lst and 2nd Floors. Installat'on of the following types of low voltage wiring on the lst and 2nd floor� :shall be closely monitored by the CIS staff: � (a) thin ethernet wiring in each office back to central ppints of service on the floors; (b) RS-232 wiring to certain locations on each floor, back t�o central points of service on the floors; (c) 3-pair telephone wire (6 total wires) in each office back to the Point of Presence on each floor; (d) three coaxial cable installations: ��. 1 (1) the Institutional Network (video and data; ) ��'��µ- ,, � . (2) the CityLink Network (principally data; ) �- (3) the Subscriber Network (video only. ) I ` to be installed by Continental Cablevision at the �co�st `�of the LESSEE and coordinated by the LESSOR'S contractor. (2) Electrical Circuitrv on lst and 2nd Floors. In additionito nortnal �� electrical circuitry for lighting, separate circuits shall be instalZed4;�c�� for computers. An Uninterruptible Power Supply, to be purcha ed by the`��;4,�� LESSEE, shall be installed by means of electrical strips whic� shall bex''�� *!y�yi�,.i plugged into the Uninterruptible Power Supply, and into which the indi � vidual pieces of equipment shall be plugged. These electri�al strip��#i�`� �' shall be surfaee-mounted around the interior perimeter of t e room a�� two different heights, and shall be in addition to normal ci�cuitry ` � , ;:�"�=� (3) HVAC on lst & 2nd Floors. LESSOR shall provide sp cial HVAC .''`�� •z consideration to certain "hot spots" with large equipment �oncentra- : '. . ' tions, which will be identified by the LESSEE during the Co�struction Document phase of plan preparation. (4) ShelvinQ on lst & 2nd Floors. LESSOR shall provide s�elving to specif ications to be provided by LESSEE during the Constructiq!n Document ; °t,� �.�� phase of plan preparation. .��v � i :r ,.� �-�n �; -:,,� ,„ 16 I : ,�. �� .� . , EXIiIBIT n$n � CS/71 page 4 Of 4 � �` ,�1. ��_. � � . (5) Caraetincx on lst & 2nd Floors. LESSOR shall install `an�:i-static carpeting to the specifications of the LESSEE. (6) Licthtincr on the lst and 2nd Floors. Non-glare lightin� to LES- SEE'S specifications shall be installed on the lst and 2nd Fl�ors. (7) Wall Construction on the lst and 2nd Floors. 5/8" sheetrlock shall be: used on all hard wall construction to support wall tracks fqr the in- stallation of Hermann-Miller workstation furnishings. -;; (8) Ceilinq Heiqht Recruirements on lst & 2nd Floors. Cei�i gs shall be finished at a height of 10 ' 0" and, if necessary, at an absc��u�;e min- imum o f 9 ' 0" . � �� 1 � (9) Access to the lst and 2nd Floors. Access to the :ls�� a�d 2nd Floors from the elevators and back stairways shall be cont�rollable. LESSEE shall specify lock and security requirements at the Cor�struction Documents Phase. :, (10) Window Blinds. LESSOR shall, at its own cost and exp�nse, pur �_ '`�` chase and install "mini-blinds" on all windows. I �'t�'�° , 3 S;_";�'�t;; +�U°�a„ y� , ' i��i�,^s Article V On-Site Storage ,;,�n,.�, I il ♦ � ' : LESSOR shall make available to LESSEE feet of on-s�te record�� storage. >� n�':� ;� .k i, Article VI Repainting & Re-carpeting I Following the fifth year of the term of the lease, LESSOR shalll, at the request of the LESSEE, repaint and re-carpet any or all of �the Leased Premises to the same quality of finish as the original buildo�t improve- �,. :. ments. �.ry F I �� aaS 7 _�A �i ``�� kt� 17 I , , � , � �"`"�� n n � EXHIBIT C CS/71 _ �. page 1 of 2 �- MAINTENANCE SCHEDULE ��,' . �. ' Areas of Service in General: � Entrances, lobby, corridors, rest rooms, and all occupied tenan�t spaces. LESSOR'S DUTIES AND RESPONSIBILITIES: I f The following maintenance operations shall be performed 5 time�s a week, Sunday through Thursday after 4:30 P.M. : General Cleaning: j 1. Empty waste receptacles and replace liners; all waste to - e moved to designated area; no waste to be thrown away unless clea ,y marked as such or placed on top of waste receptacles; � -�g�, 2. Dust desk tops; papers, personal belongings or office equi ent=will not be moved. If papers are left on the desk top, desk�t �nti��.�l< be feather dusted only; ��;.` ,�k� .V 3 . Empty and damp wipe ashtrays; � � fi';�ti 4. Dust telephones, file cabinets, window sills, etc; 5. Clean and sanitize drinking fountains; � � 6. Spot clean partition glass; 7 . Spot clean entrance door glass to remove fingerprints; 8 . Dust all building surfaces within reach (ledges, partitidns, etc) , ' 9. Properly arrange furniture in offices upon completion oflwork; � 10. Water plants in main entry, as needed; � $�.�� 11. Clean all sinks and mirrors in Leased Premises. �;�y� �.,�.. � �� ,, Floor Care: �°n�� ,}. �._ �.1 ,,� l. Vacuum all carpeted areas; v; 2. Dust mop or sweep all hard surface floors; � �. .� ' 3 . Damp mop all hard surface floors, as needed; :� � 4 . Vacuum mats. '�.,, ,,; Lavatory Cleaning: I 1. Empty waste receptacles; I 2 . Clean sinks and chrome fittings with non-abrasive cleans rs; 3 . Spot clean metal partitions and walls around sinks and u�der ` �g� towel cabinets; .r�v 4 . Clean and refill non-vending dispensers; r�^�� 5. Clean mirrors; ��`�, 6. Clean and sanitize toilets, seats and urinals; `'�� 7 . Wet mop lavatory floors with a germicidal cleaner. '�;.�;i� .�`�, j '�;�,.�; 18 � I _. , j � ` .:�/,,,��'�� , 1 : EXHIBIT °C" � CS/71 , , � page 2 of 2 The following maintenance operations shall be performed we` y: l. Machine polish (spray buff) all resilient tiled floors; 'a 2. Wash entrance door glass on both sides; 3 . Dust general and executive office furnishings and horiz�ntal surfaces. � The following maintenance operations shall be performed mont�ly: 1. Spot clean walls and doors in general and executive office areas; (Spot cleaning is generally, but not exclusively, confine� to areas around door knobs, light switches, push plates, etc. ) < _ 2 . Wash all partition glass; 3 . Vacuum vents in lavatories; �`�� ,;.,; 4 . Scrub lavatory floors; k��;�,�t< 5. Vacuum clean upholstered furniture. '� �.�=�"�:�.� : fR�*:�� F 7�� y e �. . s R - The following maintenance operations shall be performed quar�erly: 1. � Vacuum ceiling vents in office areas; i 2 Dust office ane ' lin ; P 5 3 . Wash all ceramic walls and metal partitions. I -:�._ •. �-�. ..t , GENERAL CLEANING AND MAINTENANCE: �-=��:�.h'�t �Lj' . b �i�� F 1. LESSOR shall provide janitor's closets and maintain then� in a ne� �, '�s �� and orderly condition at no cost to the LESSEE; 4 ` ��: 2 . Police common areas and building sidewalks for debris; I �"�� ' 3 . Empty waste receptacles in freight elevator area night�1y, Monda � through Saturday; I � 4. Spot clean carpeting as needed to remove small soiled �reas; �fV.��a� 5. Clean carpet annually; =a {� 6. Keep fire access exits clean and maintained; 7 . Clean exterior window lass. ! g � �:' ;� I . '`�: �...�'. � ,-,. I �{�: '�� I 19 ' I I � 9��/�ii �� i Committee Report Finance, Management, and Personnel Committee August 5, 1991 Additional Items 1. Resolution 91-1410 - rescinding C.F. 91-3 and authorizing a lease a reement for an ei ht- e _ g g y ar term with an optional two year extensionl to house the Division of Risk Management in the Commerce Building. (Referred from Council 8/1/91) Referred to Council without recommendation 3-0. (This resolution appears on the 8/6/91 Council agenda) -- _ _ _ _ � 2. Resolution 91-1411 - rescinding C.F. 91-790 and authorizing a lease I � agreement for an eight-year term with an optional two-year extensioni ,� � to house the Division of Building Inspection & Design in the Commerce ' i Building. (Referred from Council 8/1/91) j ` � � �, ',` Referred to Council without recommendation 3-0. (This resolution } . ., ,, ` appears on the 8/6/91 Council agenda) �!,;�.. _r..__-= _ _ �. ,,:; , . , ;:, �rYt� ,��rtt �,� 3�� I ��2; � �.rA„ I �`�Y � ��,�� a � , ;�i;:'k_� _ , -3- ,, �,� � "`��'��;�-� .,� �� .r �`- ;M�� i �k� �! �h , �� },' I �/wr+�J?�.v �!. D !. L t,� R��v-t _ /�i GtsW c�,�� 7�r..c` .�S .�. �C � "I/.✓j�� '� li, f,�. OPTIONS FOR LEASE AGREEMENTS FMS/27 AND CS/71 ' ;r OPTION 1 - Five-year term plus option for five-year renewa�.. - Termination clause in place. , This is the existing situation as approved by t e City Council on July 9, 1991. Denying Resoluti ns 91-1410 and 91-1411 accomplishes this. OPTION 2 - Eight-year term plus option for two-year renewa . - Termination clause in place. This is the staff recommendation. Approving Resolutions 91-1410 and 91-1411 will accomplish this. � 1 OPTION 3 - Eight-year term plus option for two-year renewa� - No termination clause. `:�•x:� This option is preferred by the landlord. To accomplish this requires an amendment to . Resolutions 91-1410 and 91-1411. OPTION 4 - Five-year term plus option for yearly renewal .� y4+,=� r,r. after 5 years. 'y� '^ �k-��... - No termination clause. This option was proposed in Finance Committee and is acceptable to both City staff and the landlord. �`Y �x��,. �� To accomplish this requires alternate Resolutio s ^ to 91-1410 and 91-1411. ' OPTION 5 - Five-year term plus option for five-year renewal. : - Termination clause, using State language, in pl�ce. `"�° ' ,.� This option is acceptable to both City staff and - and the landlord. 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