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CR 05-057 Overpass Skate Park Operation Agreement cITY OF m Date 5/03/05 1i0PKINS Council Report 2005-057 Overpass Skate Park Operational Agreement With The Third Lair Pro Dosed Action Staff recommends adoption of the following motion: Move to aoorove the Operators Aareement between The Third Lair and the Citv of Hopkins for the operation of the Hopkins Overpass Skate Park for the 2005 season. Overview As a part of the budget reduction efforts in 2004 the City Council instructed staff to find a means of operating the Overpass Skate Park that would result in little or no operating cost to the City. This resulted in the park being operated contractually under an Operators Agreement. This model worked well in 2004 so this year a new contractor, The Third Lair, will operate the park under essentially the same Operators Agreement with the addition of $10,000 invested in park improvements. The Third Lair is proposing to operate the park with public hours similar to the hours of operation in previous years and at per skater admissions rates similar to previous years. Attached you will find the operational plans submitted by The Third Lair as well as an Operations Agreement for Council approval. Primarv Issues to Consider . How does the 2005 Operators Agreement differ for the 2004 Operators Agreement? . How will this agreement impact Hopkins residents and park users? . Does the Operations Agreement meet the needs of the City? SUDDortina Information . The Third Lair Operations Plan . Photos of types of equipment to be added under Construction Plan . Hopkins Overpass Skate Park Operating Agreement Jay Strachota Facilities Director Financial Impact: $ 10,000 Budgeted: Y/N No Source: Continaencv Related Documents (CIP, ERP, etc,): Notes: Council Report 2004-72 Page 2 How does the 2005 ODerators Aareement differ from the 2004 aareement? The only substantive change in the agreement from the previous years agreement is in section 10, Improvements and Alterations, sub-section A This section addresses a $10,000 investment by the City into equipment that the Operator will build. The Agreement Exhibit B Construction Plan for the Overpass by Third Lair goes into detail on the improvements and alterations. The Construction Plan consists of four elements - building new equipment, re-arranging existing equipment, rebuilding existing equipment, and maintenance & repair of existing equipment. The re-arranging and rebuilding elements of this plan are intended to improve the flow in the park and make the park more usable for skaters. There are currently areas where the skaters cannot hit the equipment at the proper speed to execute the use of the equipment. The re- arranging/rebuilding will correct these situations. In regard to the cost of the improvements and alterations, the League of Minnesota Cities Insurance Trust publishes an information document for cities building or operating skate parks. Last updated in May of 2003, it states "construction costs should be approximately $8.00 per sq. fi..." Third Lair is proposing approximately 2,500 sq, ft. of improvements as well as the rearranging, rebuilding, maintenance and repair, The Construction Plan calls for a $10,000 investment broken down as 50% materials and 50% labor for the entire Construction Plan. The investment creates new equipment, improves the existing equipment, and addresses needed maintenance. These are the improvements Third Lair needs for this year to operate the park for the City under a one- year agreement. The City will own the improvements. How will this aareement imDact HODkins residents and Dark users? The park will be open once again as a service to resident skaters, giving them a place to practice their sport. The park provides a safe place in the community for skaters, and creates a safe separation between skaters, pedestrians, and motor vehicles. With The Third Lair's connection to the extreme sport community and established skate park business practices, they will be able to offer more events and programming than in the past. The addition of the new equipment and rearranging some of the existing equipment will create a new experience for those who have used the park regularly in the past. Does the ODe rations Aareement meet the needs of the City? In past Overpass Skate Park budgeting meetings the City Council has impressed upon staff that the Council would like to see a few key objectives met - the skate park is open to the public as much as possible, that the price is affordable, and the park is safe. The Third Lair is making a commitment that the park be open as much as previous years and more if successful. The park admission rate will be as affordable as in years Council Report 2004-72 Page 3 past. The Third Lair will carry the appropriate insurance as recommended to the City by the League of Minnesota Cities Insurance Trust. The City Attorneys office reviewed and made the necessary revisions to the Operators Agreement to address the City's concerns. The Third Lair's insurance provider will require the use of liability waiver forms to be completed by all participants and require helmets and encourage additional safety equipment by all participants, With regards to the budget The Third Lair will pay all operating expenses associated with the park and retain all the revenues generated from the park. The Operators Agreement will eliminate the City's direct expenses associated with the operations of the Overpass Skate Park. The last sentence of Section 4, EXPENSES, sums up the paragraph by stating "It is specifically contemplated and understood by the parties that by the terms of this section, the Owner shall not incur any financial responsibility relative to the Premises during the term of this Agreement." The Third Lair will retain all revenues from the park as the City's payment to The Third Lair to operate the park. The agreement is a one-season agreement. Hopkins Overpass Skate Park Operating Agreement THIS AGREEMENT ("Agreement") is made and entered into by and between the City of Hopkins, a municipal corporation under the laws of Minnesota ("City") and , a corporation under the laws of Minnesota ("Operator"). The City operates a skate park facility, including the equipment, building, parking lot and other related improvements, all located at 100 Washington Avenue South, Hopkins, Minnesota, known as the Overpass Skate Park (the "Facility"). The City owns the equipment located at the Facility and leases the Facility site ("Premises") from the Minnesota Department of Transportation ("MNDOT"), The City and the Operator desire to enter into an Agreement setting forth the terms and conditions under which the Operator will operate the Facility for and on behalf of the City. The City and the Operator agree as follows: I, The City hereby hires the Operator and the Operator hereby agrees to operate the Facility pursuant to the terms of the Agreement, 2. Term, The term of this Agreement shall begin May --,2005, and shall continue until October , 2005, unless earlier terminated by the City. The Operator acknowledges that the City has made no representations or promises to the Operator regarding any renewal or extension of this Agreement. 3, Compensation. Neither the City nor the Operator shall make any direct payment to the other as consideration for the Agreement. As sole compensation for all services to be performed hereunder, the Operator shall receive and retain all revenues of the Facility, including rental or other charges for use of the facility, admission charges, concessions, and income of any kind, subject to payment of expenses of the Facility as herein provided, 4, Expenses. The Operator shall pay all costs and expenses of any nature or kind whatsoever attributable to the Facility or Premises during the term of this Agreement. These costs and expenses shall include, but are not limited to the following: wages and insurance for all employees; utilities, including electricity, telephone, etc: maintenance of the Facility and Premises, including but not limited to sweeping sidewalks and Premises; repair, maintenance and upkeep of the building; repair, maintenance, and upkeep of all equipment and improvements to the Facility and the Premises, either currently placed or to be placed on the Facility or Premises by either the City or Operator, and; all insurance premiums relative to the Premises, It is specifically contemplated and understood by the parties that by the terms of this section, the Owner shall not incur any financial responsibility relative to the Premises during the term of this Agreement. 5. Taxes. Except as specifically provided herein, the Operator shall pay and discharge as they become due all governmental charges on or against the Premises, or on or against the City by reason of its lease of the Premises, The parties contemplate and intend that the Premises shall be and remain during the term of this agreement exempt from general real estate taxes, If such taxes become payable upon the Premises during the term hereof, the Operator shall payor reimburse the City for the amount thereof, less that part of such taxes payable to or levied by the City of Hopkins or any instrumentality thereof 6. Use of Premises, Subject to other terms and provisions contained herein, the Operator shall cause the Premises to be used for the following purposes and subject to the following restrictions: A skate park facility and any use incidental thereto or any other use agreed upon in writing between the parties hereto. During the terms of the Agreement or any renewal thereof, the Operator shall comply with all applicable laws affecting the Premises, whether federal, state, or local. The Operator shall not commit or allow to be committed any waste on, destruction or damage to, or nuisance on the Premises. Should the Operator commit or allow to be committed any waste on or damage or destruction to the Premises, the Operator shall immediately restore the Premises to the original condition of the Premises at the inception of this Agreement or as the Premises have been improved by either the City or Operator, subject to ordinary wear and tear, The Operator must operate the Facility and Premises in strict compliance with the terms of the MNDOT lease, a copy of which is attached hereto as Exhibit A 7. Care of Premises, All care, maintenance, and repair of the Premises and all improvements currently placed thereon or to be placed thereon shall be the sole responsibility of the Operator and shall be performed at the Operator's expense. 8. City's Right to Enter. The Operator shall permit the City and the agents and employees of the City to enter into and on the Premises at all reasonable times for any proper purpose. 9, Assignment and Subletting, The Operator shall not assign this Agreement or let the Premises or any part thereof, whether by voluntary act, operation oflaw, or otherwise, without the prior written consent of the City in each instance, except that the Operator may permit use of the Facility, for rental, admission or other charges, in the normal course of business, without such consent. Consent by the City to any assignment of this Agreement or to any letting of the Premises or part thereof shall not be a waiver of the City's rights under this Agreement as to any subsequent assignment or letting, The City's right to assign this Agreement is and shall remain unqualified and no assignment by the City shall release the Operator of any of its obligations under this Agreement. If the Operator is a corporation, any transfer of this Agreement through merger, consolidation, corporate reorganization, or liquidation or any transfer, or hypothecation, shall constitute an assignment of this Agreement requiring the prior written consent of the City. 10, Imorovements and Alterations, Except as otherwise provided in Paragraph IO.A below, the Operator shall not be permitted to make any improvements or alterations to the Premises without the prior written consent of the City, except, however, the Operator shall, at its expense, make any repairs to the premises which are needed to maintain the Premises in the same condition they were in at the inception of this Agreement or as improved, subject to ordinary wear and tear, A The Operator shall, not later than May --' 2005, acquire and install at the Facility the equipment described in Exhibit B attached hereto (the "New Equipment"). Upon completion of the New Equipment's installation, the Operator shall submit an invoice to the City for the cost of acquiring and installing the New Equipment, said invoice not to exceed $10,000.00. The Operator warrants that the New Equipment will be free from defects in material and workmanship for a period of one year from the date the City remits payment for the New Equipment. 1 L Mechanic's Lien The Operator shall not permit any mechanic's lien, judgment or other lien of any type to encumber the Premises, 12. Covenants to Hold Harmless, The Operator shall indemnify, defend, and hold harmless the City and its agents and its employees from and against all claims, damages, losses, and expenses, including attorney's fees, arising out of or resulting from the maintenance or use of the Premises, provided that any such claim, damage, loss, expenses is attributable to bodily injury, sickness, disease or death, or to injury to or destruction of tangible property (other than said property itself) including the loss of use resulting therefrom. The Operator also shall indemnify, defend and hold harmless the City and its agents and its employees from and against any claims for costs or expenses incurred to operate the Facility during this Agreement, said obligation to indemnify to include any attorney's fees incurred by the City as a result of such a claim, 13. Insurance, A) Liability: The Operator shall maintain comprehensive general liability insurance with a limit of not less than $1,000,000 per each occurrence and shall provide a certificate of insurance showing evidence of such insurance before operating the Facility in any manner. This insurance shall cover liability arising from premises operations, independent contractors, personal injury and advertising injury, and contractually assumed liability. The City shall be named as an additional insured under the comprehensive liability insurance, B) Workers' Compensation Insurance: The Operator shall provide a certificate of insurance showing evidence of workers' compensation coverage or provide evidence of qualification as a self-insurer of workers' compensation, 14. Default. In the event of any default of this Agreement by either party, which remains unremedied after ten (10) days written notice specifying the default, the aggrieved party may, in addition to any other rights or remedies it may have, by written notice declare this Agreement to be terminated, in which case all rights and liabilities hereunder shall cease, and the Operator shall forthwith surrender the Premises to the City, 15, Ownership ofImprovements on Termination of Agreement. The City is and shall be the absolute owner of any structures or other improvements of any nature or kind situated on the Premises at the beginning of the Agreement or installed after the beginning of the Agreement, regardless of who placed such structures or other improvements thereon, and specifically including but not limited to the New Equipment, and the Operator shall not have any interest whatsoever therein. The City shall have no obligation to compensate the Operator for any monies expended by the Operator for construction of structures or other improvements on the Premises other than for those specifically requested in writing by the City. 16. Amendments. Modification. and Waiver. No amendment, modification, or waiver of any condition, provision, or term of this agreement shall be valid or of any effect unless made in writing, signed by the party or parties to be bound or it's 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. 17. Notices, Any notice, demand, or other communication required or permitted to be given hereunder shall be deemed delivered and effectively given when delivered personally to the representatives of the City and Operator identified below or one (1) business day after being mailed by registered or certified mail, return receipt requested, addressed as follows: To City: City of Hopkins Attention 1010 First Street South Hopkins, MN 55343 To Operator: Copy to: Wynn Curtiss Miller, Steiner & Curtiss, PA 1011 First St. S. #400 Hopkins, MN 55343 Either party may change its address or the identity of its designated representative named above by written notice to the other party in the manner stated in this paragraph. 18. Miscellaneous Provisions: a, The captions and headings used in this Agreement are used for convenience only and shall not be used in construing or interpreting of this Agreement. b, The Operator is an independent contractor of the City, and shall act only pursuant to and in accordance with the terms of this Agreement. No provision of the Agreement, or any acts of the parties hereto, shall be deemed to create a partnership or joint venture between the City and Operator, c. This Agreement represents the entire Agreement between the City and the Operator with respect to its subject matter, and supersedes all prior agreements between the parties related to the subject matter of this agreement. Any amendment to this Agreement must be in writing and signed by both parties. d, The Operator agrees that it shall comply with all state and federal codes, statutes, rules, regulations and ordinances applicable to the performance of its duties and responsibilities under this Agreement. e, Each and every provision of this Agreement is intended to be severable, If any term or provision hereof is determined to be illegal or unenforceable for any reason whatsoever, such term or provision shall be severed from this Agreement, and shall affect the validity of enforceability of the remaining terms and provisions of this Agreement. f This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of Minnesota. IN WITNESS WHEREOF, the parties hereto have executed and entered into this Agreement effective as of the date first above written. CITY OF HOPKINS, MlNNESOT A NAME OF OPERATOR By By Its Its By By Its Its "t Exhibit A COpy Minnesota Department of Transportation Metropolitan Division - Office of Right of Way Waters Edge 1500 County Road B2 Roseville, Minnesota 55113 651-582-1535 S,P.: 2772 (169=383) PARCEL: Portion of Parcel 20 LEASE NO,: H-06018 ACCOUNT NO,: 27087 AMENDMENT OF COMMERCiAl LEASE No, ..1 THIS AGREEMENT, is made by and between the State of Minnesota, Department of Transportation iLandlordj and The City of Hopkins ("Tenanf'), and shall be an amendment and addition to Lease No. H- 06018, WITNESSETH: WHEREAS, Landlord and Tenant entered into Lease No. H-06018 iLeasej involving the rental of land for a public recreational park purpose induding a paved skate park, and no other use whatsoever; WHEREAS, the parties deem certain amendments and additional tenns and conditions mutually beneficial for the effective continuation of said Lease; and NOW THEREFOR, Landlord and Tenant agree to substitution and/or addition of the following tenns and conditions, which shall become a part of the Lease No. H-06018, effective as of the date set forth hereinafter. 1. Effective on May 1, 2005, this Lease No, H-06018 shall be renewed for a period of 5 years commencing on May 1, 2005 and continuing through April 30, 2010, with the right of tennination by both Landlord and Tenant as set forth in the Lease. 2, RENT. The consideration for this Lease Agreement shall continue to be the mutual benefits to both parties of this Lease Agreement 3, The tenns of the original lease and its amendment(s) are expressly reaffinned and remain in full force and effect By this reference the original lease and its amendment(s) are attached and incorporated into this agreement 1 ,; 0' Minnesota Department of Transportation Office of Land Management Transportation Building Mailstop 631 395 John Ireland Boulevard SI. Paul, Minnesota 55155-1899 651.296.9744 S.P.: PARCEL: 2772(169=383)'02-002 a portion of 20 LEASE NO.: ACCOUNT NO.: H-06018 (27A008) COMMERCIAL LEASE THIS LEASE is made between the State of Minnesota, Department of Transportation ("Landlord"). and the City of Hopkins ("Tenant"). Mail Lease to: Ray Vogtman Park/Forestry Superintendent City of Hopkins 11100 Excelsior Boulevard Hopkins. Minnesota 55343-3435 IT IS AGREED: 1. In consideration of payment of the rent hereinafter specified to be paid by Tenant. and the covenants and agreements herein contained, Landlord hereby leases to Tenant that certain property ("Premises") in the County of Hennepin. State of Minnesota. described as follows: " Address of Premises: JCt. T.H. 169 and County Road 3. Hopkins, Minnesota, as further shown on Exhibit A attached hereto and by this reference incorporated herein. Type of Property: 28.875 usable square feet of irregular shaped commercial land. This Lease includes improvements, if any. and is in effect for the term of five (5) years commencing on May 1. ' 2000 ("Commencement Date) and continuing through April 30, 2005, with the right of termination in both Landlord and Tenant as hereinafter set forth. 2. RENT. The consideration for this Lease Agreement shall be the mutual benefitS to both parties of-this Lease Agreement' 3. USE OF PREMISES. Tenant shall use the Premises for the following purpose only: a public recreational park. purposes including a paved skate park, and no other use whatsoever. It shall be the sole responsibility of Tenant to 'comply with all laws, regulations, or ordinances imposed by any jurisdiction goveming the use of the Premises. Failure to comply will not relieve Tenant of the obligation to pay rent Tenant's use of the Premises must not interfere with the public's use of any adjacent highway. Signs or displays will be restricted to those indicating proprietorship and type of activities conducted on the Premises. and will be subject to regulation by Landlord as to number, size, location, and design. 1 ." 4. MAINTENANCE AND REPAIRS. Tenant shall keep ,the Premises in good condition. at Tenant's own expense, and shall not call on Landlord to make any improvements or repairs. 5. CHARGES AND EXPENSES. Tenant shall pay when due all utility charges and any other charges or expenses connected with Tenant's use of the Premises. 6. NOTICES. All notices herein provided to be given, or which may be given, by either party to the other, shall be deemed to have been fully given when served personally on Landlord or Tenant, or when made in writing and deposited in the United States Mail and addressed as follows: To Tenant at the mailing address above stated and to Landlord, Department of Transportation, Office of Land Management, Transportation Building Mailstop 631, 395 John Ireland Boulevard, SI. Paul, Minnesota, ,55155-1899. The address to which notices are mailed may be changed by written notice given by either party to the other. 7. CANCELLATION. This Lease shall be subject to cancellation by either party at any time during the term hereof by giving the other party notice in writing at least sixty (60) days prior to the date when the cancellation will become effective. Furthermore, this Lease shall be subject to cancellation by Landlord if the Premises become needed for highway purposes (as determined solely by Landlord) by giving Tenant notice in writing at least thirty (30) days prior to the date when the cancellation will become effective. In the event of cancellation any uneamed rent paid by Tenant will be returned. 8. INDEMNIFICATION AND RELEASE. Tenant shall defend, indemnify, save harmless, and release Landlord and Landlord's employees from and against all claims, demands, and causes of action for injury to or death of persons or loss of or damage to property (including Tenant and Tenant's property) occurring on the Premises' and connected with Tenant's use and occupancy of the Premises, regardless of whether such injury, death,loss, or damage is caused in part by: (i) the negligence of Landlord or (Ii) is deemed to be the responsibility of Landlord, because of its failure to supervise, inspect, or control the operations of Tenant or otherwise discover or prevent actions or operations of Tenant giving rise to liability to any person. If any negligence or responsibility ofLandlord is unrelated to Tenant's occupancy or use of the Premises, Tenant will not be obligated to indemnify and hold harmless as set forth above. 9. INSURANCE. Prior to execution of this Lease by Landlord, the Tenant shall provide Landlord with a properly executed certificate(s) of insurance which shall clearly evidence the insurance required below, and provide that such insurance will not be canceled, except on thirty (30) days' prior written notice to Landlord. 9.1 Tenant shall maintain during the full term of this Lease commercial general liability insurance or equivalent form including Premises-Operations Liability, Products/Completed Operations Liability (if applicable), Contractual Liability, and Fire Legal Liability with a limit of not less than $1,000,000 each occurrence. If such insurance contains a general aggregate limit, it will apply separately to this lease: 9.1.1 This insurance shall include State of Minnesota as an insured with respect to performance of Lease. 2 .' 9,1.2 This insurance shall be primary with respect to any insurance .or self-insurance programs covering Tenant, its officers and employees. 9.2 Tenant shall maintain during the fullterm of this Lease workers' compensation insurance with statutory limits and employers' liability insurance with limits of not less than $500,000 each accident 10. FIRE INSURANCE. Tenant shall not be required to keep the Premises insured against fire and extended coverage loss. The policy shall name the State of Minnesota as the beneficiary in the event of a loss. If a loss covered by the policy occurs, Landlord will decide whether to use the insurance money to repair the damage or to demolish the building. Tenant shall make no claim against Landlord arising out of any loss to the Premises. 11. RIGHT TO ENTER. Tenant shall allow Landlord and Landlord's contractors and authorized licensees to enter upon the Premises for any of the following purposes: to survey the land, to take soil borings, to perform utility relocation or repair work, or to perform any other work which is preparatory to a highway construction project; also to make emergency repairs required for highway safety. If there is a highway bridge above any part of the Premises, Tenant shall allow Landlord to enter upon the Premises to inspect, maintain, and repair the bridge and its structural supports. If any of these operations substantially restrict the T enanfs use of the premises, rent will be reduced proportional to the restricted use of the Premises during the period of the restricted use. The reduction (or abatement) of rent will be Tenanfs only claim against Landlord based on such restriction (or abatement) of use. Tenant shall allow Landlord to Inspect the premises and to show the premises by appointment to prospective buyers or renters. Before entering the Premises for any of the purposes under this paragraph, Landlord will make a reasonable effort to notify Tenant, provided, ,however, that in case of an emergency affecting highway safety (the existence of which will be determined solely by Landlord), if Tenant is not present to permit entry onto the Premises, Landlord or its representatives may enter without notice to Tenant, and for such entry Landlord or its representatives will not be liable to Tenant 12. ADJACENT HIGHWAY FACILITY. Tenant shall not permit the storage of any substance or material on the Premises which may create a fire hazard to the adjacent highway facility (including any overhead bridge and its structural supports). If Landlord determines that Tenant is using the Premises in such a way as to create a danger to the adjacent highway facility or the traveling public thereon, and if, upon receiVing notice, Tenant does not immediately remedy the danger to the satisfaction of Landlord, then Landlord may immediately cancel this Lease and take possession of the Premises. Any requirement for giving notice of cancellation set out elsewhere in this Lease will not apply to cancellation under this section. Unearned rent paid by Tenant will be returned. If a part of the Premises is situate under or adjacent to a highway bridge, Tenant acknowledges that Landlord's plowing and sweeping of the bridge may cause snow, ice, sand, or road sweepings to be pushed off the sides of the bridge or otherwise expelled off the bridge, falling onto the Premises. Tenant agrees that this risk is specifically included in the Tenanfs indemnification and release ofLandlord appearing elsewhere in this Lease. 13. ASSIGNMENT AND SUBLETTING. Tenant shall not assign this Lease or sublet the Premises. 14. CIVIL RIGHTS ACT. Tenant shall not discriminate on the ground of race, color, sex, or national origin against any person in access to and 'use of the facilities and services operated or otherwise maintained on the Premises; and Tenant shall operate and maintain such facilities and services in compliance with TiUe VI of the Civil Rights Act of 1964, and TiUe 49, Code of Federal Regulations, Part 21. 3 " " 15. DEFAULT BY TENANT -LANDLORD'S REMEDIES. The following occurrences are "events of default": (a) Tenant defaults in the due and punctual payment of rent, and such default continues for five (5) days after notice from Landlord; however, Tenant will not be entitled to more than one notice for default in payment of rent during any twelve month period, and if, within twelve months after any such notice, any rent is not paid when due, an event of default shall have occurred without further notice. (b) Tenant breaches any of the other agreements, terms, covenants, or conditions which this Lease requires Tenant to perform, and such breach continues for a period of thirty (30) days after notice by Landlord to Tenant. At any time after the occurrence of either of the above events of default, Landlord may terminate this Lease upon giving written notice to Tenant and may then re-enter and take possession of the Premises in such manner as allowed or provided by law. Tenant shall pay Landlord all costs and expenses, induding attorney's fees, in any successful action brought by Landlord to recover unpaid rent, or to recover damages for breach of any of the other covenants, agreements, terms, or conditions which this Lease requires Tenant to perform, or to recover possession of the Premises. 16. HOLDING OVER. If Tenant remains in possession of the Premises after the end of this Lease with the consent of Landlord, express or implied, Tenant shall occupy the Premises as a Tenant from month to month, subject to all conditions, provisions, and obligations of this Lease in effect on the last day of the term. ,17. MOVING OUT. Subject to Section 20 below, at the expiration or sooner termination of this Lease, Tenant shall leave the Premises in as good condition as when delivered to Tenant (except for ordinary wear and any' loss covered, by insurance payment to Landlord). 11\. SALE OR TRANSFER OF PREMISES. If Landlord sells or transfers the Premises, Landlord's liability for the performance of its covenants under this Lease shall end on the date of the sale or transfer, and Tenant shall look solely to the purchaser or transferee for the performance of those covenants. 19. RELOCATION ASSISTANCE: Persons, businesses, farms, non-profit organizations, and other entities (hereinafter collectively referred to as Tenant) displaced by cancellation or termination of this Lease, or by moving out prior to cancellation or termination of this Lease, are not dassified as "displaced persons" and are not eligible for relocation assistance under the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 and its amendments. By signing this Lease, Tenant affirms that they are not a displaced person. 4 .' . ' " 20. TENANT IMPROVEMENTS. Within sixty (60) days of the Commencement Date, at Tenant's sole cost and expense, Tenant shall: a. surround the Premises with a six foot (6') chain-link security fence; b. pave the skate park area; c. gravel the surface of the parking area and ingress/egress along Washington Avenue South; d. perform minor grading; and e. ensure that its work shall not encroach Landlord's drainage ways; and f. treat any runoff or erosion caused by Tenant prior to discharging into the Premises and/or Landlord's adjacent property. All of the foregoing and the work shown on Exhibit A shall be in accordance with plans and specifications approved by Landlord prior to the commencement of Tenanfs work. Tenant shall direct its plans and specifications for approval to: Keith VanWagner Metro Division Pennits Office Water's Edge Building Roseville, Minnesota 55113 651.582.1443 Upon expiration or earlier termination of this Lease, at its sole cost and expense, Tenant shall remove such improvements and restore the Premises to its .condition at the Commencement Date of this Lease. 21. ENTIRE AGREEMENT. This Lease contains the entire agreement between Landlord and Tenant with respect to its subject matter and may be amended only by subsequent written agreement between them. Except for those which are set forth in this Lease, no representations, warranties, or agreements have been made by Landlord or Tenant to one another with respect to this Lease. FILENAME: H;\PROPMGNT\WPDATA\27 Hennepin\27AOOB City of Hopkins lease.wpd 5 ': '-rErJANT Title C.<1,){ 7 (. Date ~/t,/t()oJ" Signature ~fl ~~ ~e'~ Print Name ,E,c) S ~ -IfL "tf ~ .." (( Title A~tJr Date:;;.-!J~/ ~ en? , LANDLORD, STATE OF MINNESOTA DEPARTMENT OF TRANSPORTATION COMMISSIONER OF TRANSPORTATION ~ lJJk ~ ~ Eldon Lober ~ Assist. Office Oi rector 1#-/$"-00 By Date Approved as to form and execution FOR THE ATTORNEY GENERAL By QIlTGIN U SIGm1D BY JEFFERY THOMPSON Title Date o ft(;;r? j(f() CORPORATE ACKNOWLEDGE FOR TENANT STATE OF fh:VlI1I~AO"~ COUNTY OF ,l/Rvm~/},'1/1 ) )ss. ) ~~ G 1!JA4~U//;"'-' NOTAR BLlC My Commission Expires: / - '3/- 0 "'> . . lERRY G. fIIBlMAIER NOTARY"'.... ...EliCIl .., c.........&piIaJa3l.2lllI5 Exhibit B 3rd Lair's Construction Plan for the Overpass Skate Park The 3rd Lair is excited about being apart of the Overpass Skate Park this summer. We thank you for this opportunity and look forward to executing our plan. As we discussed, we plan to first, renovate the facility and second, operate it at our high standards and proven programming. Construction Plan (Items Included) - . Build New Obstacles o Roll - In - next to existing 9 foot quarter pipe o Catch Ramp 'Burro' afterlaunch ramp · A re - directional quarter bowl to send flow back in the opposite direction o Launch Ramp and Land Ramp (next to and smaller than the existing) o Spine Ramp next to existing center obstacles o Flatbox Ledge . Re - Arranging of existing ramps o 'Kiddie Area' on east side of the facility needs to be completely rearranged o South side of 'Street' course rearranged o Reposition all ramps as necessary to increase the flow of the park . Re - building of existing ramps o Create a 'Loading Dock' zone in existing 'Kiddie Area' o Build new 'Hubba Ledges' in the 'Loading Dock' zone o Take apart seldom used obstacles such as the 'Double Rollover' & 'Tiny Spine' . Utilize materials in other areas . Maintenance o Replace any beyond repair sheets of Skatelight oRe-screw and countersink seems that have warped o Fix metal and coping as necessary · Grind off all rust areas o Pressure Wash entire facilty, pillars, parking lot, hut, etc. o Paint Ramps and Metal Materials: 5000.00 Labor: 5000.00 Grand Total: 10,000.00 Operation Plan - . Open for business 7 days a week . Offer 2 weeklong Summer Skateboard Camps . Special Events: o All - Nighter / Lock - In o End of Summer Skateboard Contest o End of Summer Bike Contest o Girls Skateboard Club o 12 and Under · Special time on Saturdays 9 am - 12 o Offer Special Group Rates . Special rates for Hopkins residents . Will honor 3'd Lair memberships . Promote the Overpass by: o Postings at our facility o Create special page on our website o Bulk emails o 3'd Lair Newsletter We plan to run the Overpass very similar to our current location. We will offer the same kind of programming and special events. We look forward to working with you and the city to further promote the facility. The skatepark renovation is necessary to revitalize the skaters' interest. Our programming will be another key factor and with those two elements combined, I believe it can make the Overpass a destination spot for all action sports enthusiasts in the area.