IV.9. Approve Amended Lease No. 73-34011 between the City of Hopkins and Hennepin County Regional Railroad Authority (HCRRA); Stadler (CR 2015-055) April 15, 2015 City of Hopkins Council Report 2015-055
APPROVE AMENDED LEASE NO. 73-34011 BETWEEN THE CITY OF HOPKINS
AND HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY(HCRRA)
Proposed Action.
Staff recommends the following motion: Move that Council approve restated and amended lease
# 73-34011 Between the City of Hopkins and Hennepin County Regional Railroad Authority for
use of certain HCRRA right-of-way between 7th and 8th Avenues North.
Overview.
These leases are standard, ongoing leases provided by HCRRA to allow City use of portions of
HCRRA right-of-way. A paragraph in Section V was added to allow the City to pave the leased
portion of the ROW. This is a no-cost lease with the term set at 5 years. Again,the terms and
language are standard,blanket conditions for HCRRA leases previously approved by the
Hennepin County Board. This lease is for the ROW behind the MarketPlace & Main
development which will be improved with asphalt paving and curb/gutter this year. Staff
recommends approval of the lease.
Supporting Information.
• Restated and Amended Lease Agreement No. 73-34011
Steven J. Stadler, Public Works Director
Financial Impact: $ Budgeted: Y/N Source: Related Documents (CIP, ERP,
etc.): Notes:
RESTATED AND AMENDED LEASE AGREEMENT NO. 73-34011
THIS RESTATED AND AMENDED AGREEMENT, entered into by and between
the HENNEPIN COUNTY REGIONAL RAILROAD AUTHORITY, a Minnesota political
subdivision, hereinafter referred to as the "HCRRA", and City of Hopkins, 1010 First
Street South, Hopkins, Minnesota 55343, a municipal corporation under the laws of the
State of Minnesota, hereinafter referred to as the "TENANT";
WITNESSETH:
WHEREAS, HCRRA and TENANT entered into a certain Lease Agreement
bearing Contract No. 73-34044, dated February 23, 1999, as amended by First
Amendment to Lease Agreement No. 73-34044, dated February 10, 2004, and further
amended by Second Amendment to Lease Agreement No. 73-34044, dated February 24,
2009, for trash hauling, school bus turn around, snow plowing and alley purposes;
WHEREAS, HCRRA and TENANT desire to further amend the Lease in certain
particulars;
NOW, THEREFORE, the parties mutually agree to this Restated and Amended
Agreement, and agree that the following be substituted for and replace in its entirety all of
the prior terms and conditions of Lease Agreement No. 73-34044 as amended to apply
going forward, and that the original Agreement, the First Amendment and the Second
Amendment still govern as to matters then covered.
I. PREMISES
TENANT agrees to lease from HCRRA, and HCRRA agrees to lease to
TENANT, that certain property described as follows:
That part of the Hennepin County Regional Railroad Authority
(HCRRA) Hopkins-to-Victoria right-of-way, as shown on HCRRA
Property Map No. 1, sheet 21 of 22, that is between 7th Avenue North
and 8th Avenue North, in the City of Hopkins, Minnesota, being
approximately 45 feet wide, and encompassing approximately 14,394
square feet.
That portion of the right-of-way which constitutes the Leased
Premises is marked on Exhibit A in pink. Exhibit A is attached and
incorporated by reference in this Lease.
II. USE OF PREMISES
The Leased Premises shall be for the use of TENANT, its agents, officers
and employees and invitees for the following specified purpose and shall be limited
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to that specified use:
Trash hauling, school bus turn around, snow plowing and alley.
III. TERM AND TERMINATION
TENANT acknowledges that the Premises were acquired by HCRRA specifically
and solely for the purpose of constructing a light rail transit, or other transportation
system, and its associated facilities and that it is HCRRA's intention to lease the Premises
only until they are needed for that purpose. Nothing in this Lease shall be deemed to
evidence any change by HCRRA of its intended use of the Premises for light rail transit
purposes or other permitted transportation purposes. Rather, HCRRA has agreed to the
terms of this Lease to provide a temporary income-producing use for the Premises during
the time required for further planning and development of the light rail transit system or
other transportation system.
The term of this Lease shall be for a period of sixty (60) months commencing on
April 1, 2014 and terminating at 2400 hours on March 31, 2019.
HCRRA or TENANT may terminate this Lease or any renewal, at any time, or for
any reason, by giving thirty (30) days' written notice to the other party. Thirty (30) days'
after service of said notice, this Lease and all rights and obligations hereunder shall
terminate except for such rights as may have accrued to either party prior to such
termination. At the termination of this Lease, by notice or upon expiration of the Lease
term, within thirty (30) days without further notice or demand, TENANT shall deliver
possession of the Premises to HCRRA and shall remove all personal property, including
without limitation, buildings, sheds, fences, paving and other tenant improvements located
on the Premises and fill all excavations that may have been made, and surrender
complete possession of the Premises to HCRRA in a condition satisfactory to HCRRA. If
TENANT shall fail to remove such property, its right to do so shall cease at the option of
HCRRA, and TENANT's title thereto shall be forfeited and the same shall belong to
HCRRA, or in such case, if HCRRA so elects, HCRRA may, at any time after the
termination, tear down and/or remove any or all such property at the expense of TENANT
without any liability for damages or other compensation. TENANT shall thereupon
promptly reimburse HCRRA for all expenses incurred in such removal, including cost to fill
excavations created from the removal.
Upon termination of this Lease by notice, rent shall be paid by the TENANT to the
date of termination fixed by said notice, and if rent has been paid in advance, HCRRA
shall refund to TENANT the unearned portion for the period extending beyond such date
of termination, and TENANT shall have no further rights under this Lease.
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IV. RENT
TENANT agrees to pay to HCRRA the sum of One and 00/100 dollars ($1.00)
annually for said premises. Such rent shall be due and payable on the first day of each
anniversary year of this Lease and shall be delivered in person or mailed to HCRRA at
the address set forth in Section XV. TENANT pays all costs for water, sewer, heat, and
electricity and any other utilities, if any, used or consumed in connection with the
Premises, including waste or trash removal costs and snow removal costs.
V. MAINTENANCE AND REPAIRS
At all times during its occupancy of the Premises, TENANT shall be responsible to
maintain, at its own expense, the Premises and equipment and other property located
thereon in good repair, including without limitation, regular waste and snow removal.
TENANT shall use reasonable precaution to prevent waste, damage, or injury on the
Premises; and shall modify, repair, or replace the equipment and other property when
necessary.
No posters, signs or advertising matter of any kind shall be posted on the
Premises other than advertisements of signs relating strictly to the business which is
being conducted thereon.
HCRRA shall not be liable to TENANT or those claiming by, through, or under
TENANT for any injury, death, or property damage occurring in, on, or about the
Premises. Without limitations of the foregoing, HCRRA shall not be liable for any loss or
damage which may be sustained by TENANT or others in, about, or adjacent to the
Premises by reason of the present or future condition of repair of the Premises, or for loss
or damage arising from the acts or omissions of TENANT or other tenants or occupants.
Without limitation to the foregoing, HCRRA shall not be liable for any loss or
damage which may be sustained by TENANT or others by reason of the freezing,
bursting, overflowing, or defect of any water, sewer, gas or steam pipes, closets, or sinks
in, about, or adjacent to the Leased Premises, nor for any loss or damage which directly
or indirectly may be sustained because of water, ice or snow from roof, skylights, trap
doors, or otherwise.
TENANT shall make no alterations, additions, or improvements to the Premises or
modify the use or purpose of the Premises without prior written consent from HCRRA.
This includes paving the Premises. TENANT shall submit plans to HCRRA before
installing pavement on Premises. If approved and TENANT paves Premises,
notwithstanding the above and the requirements of Section III, TENANT shall not be
required to remove the paved surface, and any sub surface or curbs that the TENANT
has placed on the Premises unless HCRRA so requests in writing. Upon said Request
TENANT shall within sixty (60) days remove the pavement surface, sub-surface and the
curbs and shall restore the surface to a slope and condition consistent with the remainder
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of HCRRA'S transportation right of way.
VI. INDEMNIFICATION AND INSURANCE
A. Indemnification
TENANT shall defend, indemnify, and hold harmless HCRRA, its officials, officers,
agents, and employees from any liability, claims, causes of action, judgments, damages,
losses, costs, or expenses, including reasonable attorneys' fees, resulting directly or
indirectly from any act or omission of TENANT, its contractors, subcontractors, officers,
agents, employees, customers or invitees, in the performance of this Lease.
B. Insurance
In order to protect HCRRA and those listed above under the indemnification
section, TENANT agrees at all times during the term of this Lease to have and keep in
force the following insurance coverages:
1. Commercial General Liability on an occurrence basis with
contractual liability coverage.
Limits
General Aggregate $2,000,000
Products-Completed Operations Aggregate 2,000,000
Personal and Advertising Injury 1,500,000
Each Occurrence - Combined Bodily
Injury and Property Damage 1,500,000
2. Automobile Liability- Combined 2,000,000
single limit each occurrence coverage for bodily
injury and property damage covering owned, non-
owned, and hired automobiles.
3. Workers' Compensation and Employer's Liability:
a. Workers' Compensation. Statutory
If the contractor is based outside the state of
Minnesota, coverage must apply to Minnesota laws.
b. Employer's Liability. Bodily injury by:
Accident - Each Accident 500,000
Disease - Policy Limit 500,000
Disease - Each Employee 500,000
An umbrella or excess liability policy over primary liability insurance coverages is
an acceptable method to provide the required insurance limits.
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The above establishes minimum insurance requirements. It is the sole
responsibility of the TENANT to determine the need for and to procure additional
insurance that may be needed in connection with this Lease. Copies of insurance
policies shall be submitted to HCRRA upon written request.
This Lease shall be valid when the TENANT has obtained required insurance and
filed with HCRRA a properly executed certificate of insurance which clearly evidences
required insurance coverages. The certificate shall name Hennepin County Regional
Railroad Authority as certificate holder and as an additional insured for the Commercial
General Liability coverage with respect to operations covered under the Lease. The
Certificate shall also show that the Hennepin County Regional Railroad Authority will
receive 30 days' prior written notice in the event of cancellation, nonrenewal, or material
change in any of the described policies.
The TENANT shall furnish to HCRRA updated certificates during the term of this
Lease as insurance policies expire. If the TENANT fails to furnish proof of insurance
coverages, HCRRA may pursue any rights or remedy allowed under this Lease, law,
equity, and/or statute.
VII. ASSIGNMENT AND SUBLETTING
TENANT shall not, except with the prior written consent of HCRRA which shall be
granted at HCRRA's sole discretion, assign, sublet, mortgage, pledge, or in any manner
transfer the Premises or this Lease. In regards to subleases, the written consent of
HCRRA's Executive Director (or the Executive Director's designee) may substitute for
consent of HCRRA.
VIII. COMPLIANCE WITH LAWS, ORDINANCES, AND RULES
TENANT agrees to comply with all laws, ordinances, and regulations of federal,
state, municipal and local government agencies as they apply to its occupancy of the
Premises and/or the business it transacts on the Premises. TENANT shall comply with
any reasonable rules adopted by HCRRA for the safety, care, and cleanliness of the
Premises and for the preservation of good order therein and shall at all times keep the
Premises clear and safe. TENANT shall not permit the existence of any nuisance on the
Premises.
TENANT shall not park any car, truck, equipment, or piece of machinery which is
partially dismantled, non-operating, unlicensed, wrecked, junked, or that which is used
only as a source for parts, on the Premises.
IX. TRADE FIXTURES, MACHINERY, AND EQUIPMENT
HCRRA agrees that all trade fixtures, machinery, equipment, furniture, or other
personal property kept or installed on the Leased Premises by TENANT shall not become
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the property of HCRRA and may be removed by TENANT, subject to HCRRA's rights as
set forth in Section III.
TENANT agrees that it shall be fully responsible for the repair of any damage to
the Leased Premises caused by the removal of any of its trade fixtures, machinery,
equipment, furniture, or other personal property.
X. REMEDIES OF HCRRA
If TENANT breaches or defaults on any of the conditions, covenants or
agreements of this Lease, which breach or default shall continue for fifteen (15) days after
TENANT's receipt of written notice thereof from HCRRA, then it shall be lawful for
HCRRA, then or at any time thereafter, to declare this Lease ended, and to re-enter the
Premises and take possession thereof and to use any reasonable or necessary lawful
force for regaining possession; whereupon the rights and obligations of the parties shall
be the same as above specified in the case of termination at the end of ninety (90) days'
notice; any waiver at any time of a breach of any condition, covenant or agreement of this
Lease shall extend only to the particular breach so waived and shall, in no manner, impair
or affect the existence of such condition, covenant or agreement, or the right of HCRRA
thereafter to avail itself of same and any subsequent breach thereof. In the event
HCRRA has to take action for repossession of the Premises, TENANT, its assigns or
heirs shall be liable for reasonable attorney's fees incurred by HCRRA.
Xl. ENVIRONMENTAL CONCERNS
TENANT shall not create or permit any condition of the Premises that could
present a threat to human health or to the environment. TENANT shall defend, indemnify
and hold harmless HCRRA and its affiliates from any suit or claim growing out of any
damages alleged to have been caused by, contributed to, or aggravated by the violation
by TENANT, TENANT's contractors, subcontractors or agents or any subtenant's
violation of any federal, state or local laws, ordinances, regulations or requirements
pertaining to air, water (surface or groundwater) or noise pollution or any toxic, hazardous
or solid substances or wastes, pollutants or contaminants, including, without limitation,
asbestos, urea formaldehyde, the group of organic compounds known as polychlorinated
biphenyls, petroleum products including gasoline, fuel oil, crude oil and various
constituents of such products (all of which are hereinafter collectively referred to as
"Contamination") and the storage, handling, use or disposal of Contamination by
TENANT, any subtenant, contractor, subcontractor or agent of TENANT performing work
on or from the Premises. TENANT shall bear the expense of all practices or work,
preventative, investigative or remedial, which may be required because of any conditions
of the Premises caused by TENANT or any use of the Premises by TENANT or those
claiming by, through, or under TENANT, during TENANT's period of occupancy or during
TENANT's ownership or use prior to the date of this Lease. TENANT expressly agrees
that the indemnification defense and hold harmless obligations it hereby assumes shall
survive cancellation of this Lease. TENANT agrees that statutory limitation periods on
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actions to enforce these obligations shall not be deemed to commence until HCRRA
discovers any such health or environmental impairment and a remedial action plan
necessary for development of the Premises to its highest and best use has been
identified and approved by appropriate local, state and federal regulatory agencies.
TENANT hereby knowingly and voluntarily waives the benefits of any shorter limitation
period.
HCRRA shall have the right, but not the duty, to enter upon the Premises from
time to time as set forth below to inspect the Premises for Contamination and in the
course thereof to conduct soil and groundwater testing. HCRRA may enter the Premises
during regular business hours of TENANT without prior notice, and may enter the
Premises during periods other than regular business hours either with prior written
consent of TENANT or without if HCRRA reasonably believes that an emergency exists
on the Premises. HCRRA shall conduct any such inspections or testing so as to minimize
interference with TENANT's business operations. HCRRA's entry onto the Premises
pursuant to this paragraph shall not relieve the TENANT's obligation to pay rent under
this Lease.
Notwithstanding the foregoing, TENANT is not responsible, by virtue of the terms
of this Lease, for any Contamination existing on the Premises prior to TENANT's use or
occupancy of the Premises.
XII. TESTING PROVISION
At the request of HCRRA, upon the termination of the Lease, or during the term
hereof, TENANT shall pay for the services of a state-approved contractor to sample any
visibly contaminated areas of the Premises. For any contaminated areas, TENANT's
contractor shall provide remediation recommendations to HCRRA, and shall perform
remediation to the satisfaction of HCRRA. Copies of the results shall be forwarded to
HCRRA by TENANT to ensure that the Premises are returned to HCRRA reasonably free
of Contamination and in compliance with all applicable environmental laws, ordinances,
regulations and requirements. The provisions of this paragraph shall survive the
termination of this Lease.
Notwithstanding the foregoing, TENANT is not responsible, by virtue of the terms
of this Lease, for any testing or sampling costs resulting from Contamination existing on
the Premises prior to TENANT's use or occupancy of the Premises.
XIII. RIGHT OF ENTRY
HCRRA may enter the Premises at any time to examine, inspect, or protect the
Premises and to make alterations, renovations, or repairs or to show the Premises to
prospective tenants or purchasers.
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XIV. AMENDMENTS
No waivers, alterations or modifications of this Lease or any agreements in
connection therewith shall be valid unless in writing duly executed by both HCRRA and
TENANT herein.
XV. NOTICES
All notices required or permitted pursuant to this Lease shall be directed to the
following individuals and shall be either hand-delivered or mailed to the following
addresses:
To TENANT: City of Hopkins
1010 First Street South
Hopkins, MN 55343
Attention: Steve Stadler, Public Works Director
To HCRRA: Hennepin County Regional Railroad Authority
701 Fourth Avenue South, Suite 400
Minneapolis, MN 55415-1843
Attention: Director, Housing, Community Works and Transit
XVI. ACCEPTANCE
TENANT also accepts the Premises subject to any want or failure at any time of
HCRRA's title to the Premises or any part thereof and TENANT shall assume any
damages sustained by TENANT in connection therewith. TENANT also accepts such
Premises subject to rights of any party, including HCRRA, in and to any existing roadways
and easements. TENANT agrees to provide to HCRRA or other tenants of HCRRA
access over and through the Premises on these roadways and easements should such
access be deemed necessary by HCRRA. TENANT accepts the Premises subject to the
right of HCRRA, its employees, agents and contractors to walk upon the Premises to
repair adjacent property and the right of HCRRA, its employees, agents and contractors
to temporarily place equipment upon the Premises for the purpose of maintaining,
repairing or inspecting or constructing upon HCRRA's adjacent property.
This Lease shall be subject to the rights of all licenses, permits and easements for
poles, wires, pipelines, sewers and billboards that exist or may be placed upon, across,
above, or underneath the Premises by HCRRA, its employees, agents, licensees and
representatives or invitees. HCRRA reserves unto itself, its employees, agents, licensees
and representatives the right to place additional poles, wires, pipelines, sewers and
billboards upon, across, above, or underneath the Premises and agrees that any such
additional placements shall be conducted in a manner as to not unreasonably interfere
with TENANT's operations thereon.
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XVII. LIENS AND ENCUMBRANCES
TENANT shall not permit any liens or encumbrances to be established or to
remain against the Premises. Liens or encumbrances for purposes of this section mean
any mortgage, pledge, security interest, lien or encumbrance on (or affecting) any portion
of the Premises, including (without limitation) tax liens or encumbrances and liens or
encumbrances with respect to work performed or equipment or material furnished in
connection with TENANT's use of the Premises.
XVIII. SECURITY DEPOSIT
TENANT agrees to deposit with HCRRA the sum Zero and 00/100 Dollars
($0.00). The sum shall be held by HCRRA as security for the faithful performance by
TENANT of all terms, covenants and conditions of the Lease. If TENANT defaults with
respect to any provision of this Lease, HCRRA may use, apply or retain all or any part of
this security deposit to remedy the default. If any portion of the deposit is so used or
applied, TENANT shall, five (5) days after written demand by HCRRA, deposit cash with
HCRRA in an amount sufficient to restore the security deposit to its original amount and
TENANT's failure to do so shall be a breach of this Lease. HCRRA shall not be required
to keep the security deposit separate from its general funds, and TENANT shall not be
entitled to interest on any such deposit, except as required by statute for residential
leases.
XIX. EMINENT DOMAIN
This Lease shall automatically terminate upon the commencement of any eminent
domain action over any or all of the area constituting the Premises, and all rights
TENANT has under this Lease to the Premises shall cease.
XX. THREE RIVERS PARK DISTRICT PERMIT AGREEMENT
TENANT agrees that the rights contained in this Lease are subject to and
subordinate to the rights granted and contained in the Permit Agreement between
HCRRA and Three Rivers Park District A09222 (parcel 73-34001) dated July 30, 1992,
and that TENANT shall comply with all rules and regulations of the Three Rivers Park
District in regards to the exercise of its rights over HCRRA's right of way, including but not
limited to those regarding safety. This provision is intended solely to be to the benefit of
HCRRA and is not intended to create rights in third party beneficiaries.
REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK
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HCRRA BOARD APPROVAL
TENANT, having signed this Lease, and the Hennepin County Regional Railroad
Authority's Board of Commissioners having duly approved this Lease on the day of
, and pursuant to such approval, the proper HCRRA officials
having signed this Lease, the parties hereto agree to be bound by the provisions herein
set forth.
Reviewed by the HENNEPIN COUNTY REGIONAL
County Attorney's Office RAILROAD AUTHORITY
By:
Chair of Its Board
Date:
And:
Deputy/Executive Director
ATTEST:
Deputy/Clerk of HCRRA Board
CITY OF HOPKINS
Eugene Maxwell, Mayor
Date
Mike Mornson, City Manager
Date
City organized under:
Statutory Option A Option B Charter X
10
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