Loading...
CR 2014-036 Approve Parking Lot Lease Agreement - City Parking Lot 750OITY OF wl� NOPKINS March 24, 2014 Council Report 2014-036 Approve Parking Lot Lease Agreement — City Parking Lot 750 Proposed Action. Staff recommends adoption of the following motion: Move that City Council approve_ parking lot lease agreement between the City of Hopkins and Sidal Realtv Co. LLLP for the leasing of city parking lot 750. Overview The owners of the Gallery Flats apartments are in need of additional tenant parking to help meet an expected short term demand until the Green Line Extension Light Rail is operational. They approached the City to determine if there were any parking lots/areas that could be leased to them for the next five (5) years. Currently, City parking lot 750 is scarcely used and has 37 parking stalls. The lot has a 3 -hr parking limit or all day with a permit. City staff negotiated a 5 -year parking lot lease agreement, the terms are shown below. The City Attorneys' office has made revisions to the agreement to address concerns that came up at the March 24 City Council meeting. Sidal Realty has concurred with these revisions. A copy of the revised agreement was provided to Dr. Bob Hersman, one of the Professional Building owners, on March 24. Primary Issues to Consider. Agreement terms and conditions Revisions since 3/24City Council meeting Supporting information. • Proposed parking lot lease agreement • Aerial view and photos of parking lot 750 t - Steven J."'Stadler, Public Works Director Analysis of Issues • Agreement terms and conditions The lease term is five (5) years from October 1, 2014 — Sept 30, 2019. The rent is $23,500/year + 100% of real estate taxes and assessments. Tenant would have exclusive use of the parking lot for parking of non-commercial vehicles for occupants or guests of the Gallery Flats development. The tenant is responsible for all parking lot maintenance. The tenant must provide up to 5 parking stalls to the owners of the adjacent Professional Building at 29 9t" Ave N at a cost of $300/stall + retain one of the existing handicap parking stalls. The City can terminate the lease by giving a 180 -day written notice in the event that a redevelopment project is being considered which impacts this property. • Revisions since 3/24 City Council meeting Paragraph 5 of the agreement, Use of Premises, has been revised as follows- - first sentence revised to restrict parking to "non-commercial passenger vehicles" - The statements: "There shall be no storage of inoperable or unlicensed vehicles on the Premises"; and "No long term parking (30 consecutive days or longer) shall be permitted" were added. - Additional language added which states: "Tenant shall not cause or permit any nuisance in or about the Premises nor shall Tenant permit any debris to be placed or left upon the Premises" - Regarding the agreement to sublease to the Professional Building owners: the following statement was added: "...provided such agreement shall permit the Professional Building Owners to rent five parking stalls... throughout the term of this lease with annual renewals for each individual parking stall." PARKING LOT LEASE This Parking Lot Lease ("Lease") is made and entered into by and between the Landlord and Tenant identified in Paragraph 1 of this Lease, effective , 2014. 1. Parties. The parties to this Lease are the City of Hopkins, a municipal corporation under the laws of the State of Minnesota, hereinafter called "Landlord" and Sidal Realty Co. Limited Partnership, LLP, hereinafter called "Tenant." 2. Demise and Premises. Subject to the terms and conditions stated in this Lease, Landlord hereby leases to Tenant, and Tenant leases from Landlord, during the term specified in Paragraph 3 of this Lease, all of the parking lot, driveway, access and other parking improvements (collectively "Parking Improvements") located or to be located on certain land ("Real Property") located in the southeast quadrant of the intersection of Ninth Avenue North and First Street North, in the City of Hopkins, outlined and designated on Exhibit A attached hereto and incorporated herein by reference. The Real Property and the Parking Improvements are hereinafter collectively referred to as the "Premises." 3. Term. The term of this Lease shall commence on the lst day of October, 2014, ("Commencement Date") and shall terminate on the 30th day of September, 2019, unless earlier terminated as hereinafter provided. The Tenant may terminate the Lease by providing advance written notice of said termination to the Landlord not less than one hundred twenty (120) days prior to the effective date of the Lease termination. In addition to the termination provision in Paragraph 12 below, the Landlord may terminate the Lease with notice to Tenant not less than one hundred eighty days prior to the effective date of the Lease termination in the event that a real estate development or redevelopment project (the "Project") receives final approval from the Hopkins City Council or the Hopkins Housing and Redevelopment Authority ("HRA") and the Project includes use of some or all Hopciv\Gal IeryFlars\Lotlease of the Premises. Tenant shall be entitled to the exclusive use of the Premises during the entire term of this Lease. 4. Rent and Taxes. Tenant agrees to pay Landlord, at the address stated in Paragraph 13 of the Lease, annual rent in the amount of Twenty-four thousand and 00/100 dollars ($23,500.00), said rent to be payable in twelve equal monthly payments, the first installment to be paid in advance on or before the Commencement Date of this Lease and each subsequent monthly installment to be paid on or before the first day of each succeeding month, said payments to be made each and every month during the term of the Lease without demand therefor or deduction or set off. In addition to the annual rent, Tenant shall also pay to Landlord as additional rent hereunder 100% of the annual real estate taxes and installments of special assessments payable with respect to the Premises. Tenant shall not, however, be obligated to pay any real estate taxes attributable to the value of any building or structure now or hereafter located on the Premises other than the Parking Improvements. The Tenant's tax payments shall be made in twelve equal monthly payments, the first payment to be made in advance on or before the Commencement Date and each subsequent monthly payment to be paid on or before the first day of each succeeding month, said payments to be made each and every month during the term of this Lease without demand therefor or deduction or set off. If the term of this Lease includes only a partial calendar year, the real estate taxes and installments of special assessments payable by Tenant shall be prorated on a daily basis so that Tenant pays only the real estate taxes and installments of special assessments for those days during which the term of this Lease is in effect. No provision of this Lease shall be interpreted to require Tenant to pay any income, excess profit or other tax assessed against Landlord, with the exception of real estate taxes and special assessments assessed against the Premises. 5. Use of Premises. Tenant shall have exclusive use the Premises for the sole purpose of providing parking of non-commercial passenger vehicles for occupants or guests of the Tenant's Gallery Flats development. One stall located north of and adjacent to the 9th Avenue entrance to the Hopciv\Gal leryFlars\Lotlease Premises shall be maintained as a handicapped (ADA) parking stall and made available for use by the adjacent professional building located at 29 9th Avenue North ("Professional Building") There shall be no storage of inoperable or unlicensed vehicles on the Premises. No long term parking (30 consecutive days or longer) shall be permitted. Tenant shall comply with all applicable state and local laws, ordinances and regulations in its use of the Premises. The Tenant shall not cause or permit any nuisance in or about the Premises nor shall Tenant permit any debris to be placed or left upon the Premises. In the event the Tenant shall cause or permit a nuisance or the storage of any debris, Landlord shall be entitled to take any steps it deems necessary to correct or remove such violation and Tenant shall pay Landlord, as additional rent hereunder, all costs and expenses incurred in such correction or removal. Without limiting the foregoing, Tenant agrees that its use of the Premises shall comply with the requirements of Minnesota Statutes Section 459.14, Subd. 4, the provisions of which are incorporated in this Lease, and that Tenant shall not allow the sale or offer for sale of any merchandise or supplies, including gasoline or oil, or the cleaning, repair or furnishing of services other than parking upon the Premises. Tenant shall sublease up to five (5) parking stalls for exclusive use by the owners of the Professional Building. These five stalls shall be located along the north edge of the Professional Building, at the southwest corner of the Premises. Tenant shall charge the Professional Building Owners a fee no greater than $300/stall/year for each parking stall. Terms regarding payment, default and termination for these five parking stalls shall be set by separate agreement between Tenant and Professional Building Owners, provided such agreement shall permit the Professional Building Owners to rent five parking stalls, as described above, throughout the term of this lease with annual renewals for each individual parking stall. Tenant annual rent amount, as stipulated in para 4.,will be reduced by $350 for each parking stall provided to the Professional Building Owners. 6. Maintenance of Premises. Tenant shall perform, at Tenant's expense, all snow plowing, snow removal, maintenance, repair, resurfacing, striping and sweeping of the Parking Improvements Hopciv\GalleryFlarsTotlease during the term of this Lease. If damage is caused to the Premises or the Parking Improvements by Tenant or Tenant's employees, customers or agents, Landlord may but shall not be required to repair such damage, and Tenant shall reimburse Landlord for all reasonable costs and expenses incurred in completing such repairs. Landlord shall have no obligation or duty to improve, administer or operate the Premises and the Parking Improvements. Without limiting the generality of the foregoing, Landlord shall have no obligation to provide lighting or security for the Premises or the Parking Improvements. Tenant shall permit Landlord, and Landlord's agents and employees, to enter the Premises at all times for the purposes of performing maintenance and repair work, and there shall be no abatement of the rent due hereunder by reason of such entry by Landlord and Landlord's agents and employees. 7. Alterations. No alteration or modification or improvement (including signs, except as provided for in Paragraph 18 below) shall be made by Tenant in or to the Premises without the prior consent of Landlord in writing, which consent shall not be unreasonably withheld. 8. Destruction of Premises. If the Premises or the Parking Improvements thereon shall be damaged or destroyed by any cause so as to render the Parking Improvements thereon unfit for their intended use, without the fault or neglect of Landlord or any person for whose conduct Landlord may be liable, Tenant shall undertake to repair such damage or destruction at Tenant's own expense. This Lease shall remain in full force and effect following such damage or destruction, and the rent payable under Paragraph 4 of this Lease shall not be abated while such repairs are being completed. If the destruction or damage was caused by the negligence or intentional conduct of Landlord, or Landlord's agents or employees, the rent, prorated to the extent the Parking Improvements located on the Premises are rendered untenantable, shall be equitably abated. 9. Subleasing and Assignment. A. Tenant shall not assign its rights under this Lease or sublet the Premises or any part thereof without the prior written consent of Landlord, which consent shall not be unreasonably Hopciv\Gal leryFlars\Lotlease withheld. Notwithstanding the foregoing, Tenant shall be allowed to sublet or assign this Lease, without Landlord's consent, to any entity that controls, is controlled by or is under common control with Tenant or to any entity resulting from a merger or acquisition with or by Landlord. As a condition to any permitted subletting or assignment of Tenant's interest in this Lease, Tenant shall provide Landlord with a written sublease or assignment of Tenant's interest in this Lease whereby the subtenant or assignee agrees to be bound by and perform all of the terms, covenants and conditions of this Lease. Further any permitted subletting or assignment shall not relieve Tenant of Tenant's obligations under this Lease, all of which shall survive any subletting or assignment. B. Notwithstanding anything to the contrary in Paragraph 9.A., and subject to the terms in Paragraph 9.A., the Tenant shall be entitled to sublease individual parking spaces on the Premises solely to occupants of the Tenant's Gallery Flats development and Professional Building Owners as set forth in Paragraph 5.. Tenant is not permitted to sublease any parking space or spaces to persons or entities who are not then -current occupants of the Gallery Flats development or Professional Building Owners. However, the Tenant's annual aggregate charges for all of the Premises parking spaces paid for by the Gallery Flats occupants and Professional Building Owners, as measured beginning on the Commencement Date for the following 12 -month period and for each succeeding 12 -month period, may not exceed the annual total rent and other expenses and charges paid by the Tenant to the Landlord or otherwise incurred or paid by Tenant for use of the Premises. 10. Non -liability of Landlord; Indemnity of Landlord by Tenant. This Lease is made on the express condition that, except for injury or damage caused by Landlord's negligence or willful misconduct, the Landlord shall be free from all liabilities, claims, obligations and damages for or by reason of any injury or injuries to any person, persons or property of any kind of nature whatsoever resulting from the use of the Premises by Tenant, or Tenant's agents, employees, customers, subtenants as provided in Paragraph 93 or invitees, from any cause or causes whatsoever during the term of this Lease, whether occasioned by any occupancy or use of the Premises or any activity carried on by the Hopciv\Gal leryFlarALotlease Tenant, or Tenant's agents, employees, customers, subtenants as provided in Paragraph 9.B or invitees. The Tenant further covenants and agrees to indemnify, save, hold harmless and defend the Landlord from all liabilities, claims, obligations, damages, charges, expenses and costs (including Landlord's reasonable attorney's fees) arising out of or resulting from the use of the Premises by Tenant, or Tenant's agents, employees, customers, subtenants as provided in Paragraph 9.B or invitees, including, but not limited to, the liabilities, claims, obligations and damages referred to the foregoing provisions of this paragraph. 11. Insurance. Tenant shall, during the term of this Lease, maintain comprehensive general public liability insurance insuring against personal injury and property damage occurring as a result of or in connection with Tenant's use of the Premises in a single limit amount of not less than $1 million for personal injury or death and not less than $500,000 for property damage. Such insurance shall name Landlord as an additional insured, and Tenant shall provide Landlord with certificates evidencing Tenant is maintaining such insurance. Such insurance shall also require the insurer to give Landlord at least 30 days' prior written notice the cancellation or termination of the insurance policy. 12. Default and Termination. a) Any one of the following events shall constitute an Event of Default: i) Tenant shall fail to pay any installment of rent or payment for real estate taxes or special assessments as provided in Paragraph 4 of this Lease when said payment is due; ii) Tenant shall violate or fail to perform any of the other terms, covenants or conditions of this Lease and such default shall continue for ten (10) days after notice from Landlord, unless such default cannot be cured in the exercise of reasonable diligence within said ten (10).day period, in which event Tenant shall be allowed such additional time as is needed to cure such default with all due diligence; Hopciv\GalleryFlars\Lotlease b) If an Event of Default shall have occurred and be continuing, Landlord may at its sole option by written notice to Tenant terminate this Lease effective immediately. Neither the passage of time after the occurrence of the Event of Default nor exercise by Landlord of any other remedy with regard to such Event of Default shall limit Landlord's right under this Paragraph 12. b). c) If an Event of Default shall have occurred and be continuing, whether or not Landlord elects to terminate this Lease, Landlord may enter upon and repossess the Premises (said repossession being hereinafter referred to as "Repossession") by force, summary proceedings, ejectment or otherwise, and may remove Tenant and all other persons and property therefrom. d) Neither the termination of this Lease pursuant to Paragraph 12. b) Non -Repossession of the Premises pursuant to Paragraph 12. c) or otherwise shall relieve Tenant of its liabilities and obligations under this Lease, all of which shall survive any such termination or Repossession. e) If an Event of Default shall have occurred and Landlord retains an attorney to prosecute the enforcement of all or any of the terms, covenants, agreements or conditions of this Lease, the collection of any rent due or to become due, or the recovery of possession of the Premises, Tenant agrees to reimburse Landlord, for Landlord's reasonable attorney's fees, together with the actual cost of maintaining any action commenced in law or equity by said attorneys for the services of the attorneys, whether suit is actually filed or not. Such reimbursement shall be payable within thirty (30) days of demand therefore. f) Upon termination of this Lease, Tenant shall vacate the Premises, and remove all personal property belonging to Tenant or Tenant's employees and agents therefrom. 13. Notices. All notices provided by this Lease shall be in writing and shall be given to the other party as follows: To the Tenant: Bruce P. Rubinger General Partner Sidal Realty Co. Limited Partnership, LLLP 6730 Walker Street St. Louis Park, MN 55426 Hopciv\GalleryFlarsTotlease To the Landlord: City of Hopkins Attention: Michael Morrison, City Manager 1010 First Street South Hopkins, MN 55343 Copy to: Hoff, Barry & Kozar, P.A. 775 Prairie Center Drive, Suite 160 Eden Prairie, Minnesota 55344 All notices shall be personally delivered to the individual identified above or sent by certified United States mail, return receipt requested. Personally delivered notices shall be effective as of the date of delivery. Mailed notice shall be effective two (2) days after the date of mailing. Either parry may change such party's address for notice purposes by written notice to the other as provided in this Paragraph 13. 14. Applicable Law. This Lease and the rights and obligations of the parties hereunder shall be interpreted in accordance with the laws of the State of Minnesota. 15. Amendment, Modification or Waiver. No amendment, modification or waiver of any condition, provision or term of this Lease shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or a duly authorized representative, and specifying with particularity the extent and nature of such amendment, modification or waiver. Any waiver by any party of any default of another party shall not affect or impair any right arising from any subsequent default. Nothing herein shall limit the remedies and rights of the parties hereto under and pursuant to this Lease. 16. Entire Agreement. This Lease contains the entire understanding of the parties hereto with respect to the transactions described herein and supersedes all prior agreements and understandings between the parties with respect to such subject matter. No representations, warranties, undertakings or promises, whether oral, implied, written or otherwise, have been made by Hopciv\GalleryFlars\Lotlease either party to the other unless expressly stated in this Lease or unless mutually agreed to in writing between the parties after the date hereof, and neither party has relied on any verbal representations, agreements or understandings not expressly set forth herein. 17. Captions, Headings or Titles. All captions, headings or titles in the paragraphs or sections of this Lease are inserted for convenience of reference only and shall not constitute a part of this Lease as a limitation of the scope of the particular paragraphs or sections to which they apply. 18. Parking Enforcement. During the term of this Lease, the Tenant shall erect signs on the Premises giving notice that the Parking Improvements are reserved for the exclusive use of Tenant's designees. The lease between the Tenant and the Professional Building Owners shall provide that the Professional Building Owners may erect signs reserving their parking stalls for their exclusive use. The Tenant shall enforce any such parking restrictions for the Parking Improvements and the Landlord will not enforce any parking restrictions such as those followed by Landlord for other publicly -owned parking lots in the City of Hopkins. Landlord shall have no liability to Tenant, nor shall there be any reduction in the payments due Landlord under this Lease, if parties use the Parking Improvements despite any Tenant enforcement activities. IN WITNESS WHEREOF, the undersigned Landlord and Tenant have executed this Lease Agreement effective as of the day of , 2014. LANDLORD: CITY OF HOPKINS TENANT: Sidal Realty Co. Limited Partnership, LLLP By By Its Its By By Its Its_ Hopciv\GalleryFlars\Lotlease