IV.4. Resolution Approving Lease with the State of Minnesota Department of Transportation for Overpass Skate Park; StanleyOctober 4, 2022 Council Report 2022-087
CITY OF HOPKINS COMMERCIAL LEASE WITH
MINNESOTA DEPARTMENT OF TRANSPORTATION FOR
OVERPASS SKATE PARK
Proposed Action
Staff recommends adoption of the following motion: Move to approve the lease with the
Minnesota Department of Transportation for the Hopkins Overpass Skate Park.
Overview
The City of Hopkins operates Overpass Skate Park within the right-of-way of Trunk Highway
169 under the terms of a commercial lease with the Minnesota Department of Transportation
(MNDOT). The lease runs on a 5-year term and MNDOT is asking for renewal at this time.
There is no cost associated with the lease. The new lease has been reviewed by the City Attorney
and Facilities Superintendent, and staff find the terms acceptable. Staff recommends approving
the lease for the use of the MNDOT property for Overpass Skate Park.
Supporting Information
• Minnesota Department of Transportation Commercial Lease, Lease No. 27792
• Resolution 2022-061
________________________________________
Don Olson
Facilities Superintendent
Commercial Lease Page 1 of 9 LS1003 8/16/2022
Minnesota Department of Transportation
Metro District
1500 W. County Road B2
Roseville, MN 55113
651-775-4371
PARCEL: 2772 (169=005;383) 511 0020 LEASE NO. 27792
MnDOT
Contract NO.
1050530
COMMERCIAL LEASE
THIS LEASE is made between the State of Minnesota, Department of Transportation
("Landlord"), and City of Hopkins ("Tenant").
Mail lease to: City of Hopkins
City Manager
C/O Don Olson Facilities Superintendent
Hopkins City Hall
1010 1st St S
Hopkins, MN 55343
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: Junction of 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
beneath Bridge #27586.
This Lease includes improvements, if any, and is in effect for the term of 5 years commencing
on October 1, 2022 (“Commencement Date”) and continuing through September 30, 2027, 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.
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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 governing 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.
Tenant at its sole cost and expense, agrees to comply with, and provide and maintain the
Premises in compliance with all applicable laws, rules, ordinances and regulations issued by
any federal, state or local political subdivision having jurisdiction and authority in connection
with the Premises including the Americans with Disabilities Act (“ADA”). If the Premises are not
in compliance with the ADA or other applicable laws Landlord may enter the Premises and
perform such obligation without liability to Tenant for any loss or damage to Tenant thereby
incurred, and Tenant shall pay Landlord for the cost thereof, plus 10% of such cost for overhead
and supervision within 30 days of receipt of Landlord’s invoice.
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 and the Federal
Highway Administration as to number, size, location, and design.
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 Metro District - 1500 W. County
Road B2, Roseville, MN 55113. The address to which notices are mailed may be changed by
written notice given by either party to the other.
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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
unearned rent paid by Tenant will be returned.
Tenant hereby voluntarily releases and waives any and all claims and causes of action for
damages, costs, expenses, losses, fees and compensation arising from or related to any
cancellation or termination of this Lease by Landlord, including any cancellation or termination
for highway purposes (as determined solely by the Landlord). Tenant agrees that it will not
make or assert any claims for damages, costs, expenses, losses, fees and
compensation based upon the existence, cancellation or termination of the Lease. Tenant
agrees not to sue or institute any legal action against Landlord based upon any of the claims
released in this paragraph.
8. INDEMNIFICATION AND RELEASE. Notwithstanding anything to the contrary in this
Lease, Tenant shall indemnify, hold harmless, release and defend Landlord (with the approval
of the State’s Office of the Attorney General) 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 of Landlord 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.
Landlord’s liability is governed by the Minnesota Tort Claims Act, Minn. Stat. §3.736.
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.
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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 $2,000,000 each occurrence. If such
insurance contains a general aggregate limit, it will be equal to or greater than
$2,000,000 and apply separately to this Lease.
9.2 The insurance shall name the State of Minnesota as an Additional Insured with respect
to performance of the Lease.
9.3 This insurance shall be primary with respect to any insurance or self-insurance
programs covering Landlord, its officers and employees.
9.4 Tenant shall maintain during the full term of this Lease workers’ compensation
insurance with statutory limits and employers’ liability insurance with limits not less
than $100,000 bodily injury by disease per employee, $500,000 bodily injury by
disease aggregate and $100,000 bodily injury by accident.
If Minnesota Statute 176.041 exempts Tenant from Workers’ compensation insurance or if
the Tenant has no employees in the State of Minnesota, Tenant must provide a written
statement, signed by the authorized signer of the contract, stating the qualifying exemption
that excludes Tenant from MN Workers’ Compensation requirements.
If during the course of the contract the Tenant becomes eligible for Workers’ Compensation,
the Tenant must comply with the Worker’s Compensation Insurance requirements included
herein and provide the State of Minnesota with a certificate of insurance.
If Tenant receives a cancellation notice from an insurance carrier affording coverage herein
Tenant agrees to notify the Landlord within five (5) business days with a copy of the
cancellation notice, unless Tenant’s policy(ies) contain a provision that coverage afforded
under the policy(ies) will not be cancelled without at least thirty (30) days advance written
notice to the Landlord.
An Umbrella or Excess Liability insurance policy may be used to supplement the policy limit
to satisfy the full policy limits required by the Lease.
10. RIGHT TO ENTER. Tenant shall allow Landlord and Landlord's contractors and authorized
licensees and FHWA to enter upon the Premises for any purpose including: to survey the land;
to take soil borings; to perform utility relocation or repair work, to perform any other work, which
is preparatory to a highway construction project; to perform non-emergency routine
maintenance to existing highway facilities and appurtenances; and to make emergency repairs
required for highway safety. If there is a Landlord owned bridge above or adjacent to any part
of the Premises, Tenant shall allow Landlord and Landlord’s contractors and authorized
licensees to enter upon the Premises to inspect, maintain, and repair the bridge and its
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structural supports. Landlord and Landlord’s contractors and authorized licensees shall
coordinate with Tenant to determine the location of all sub-surface appurtenances and utilities
and to minimize disruption of the Tenant’s use of the Premises. 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), Landlord or its representatives may
enter without notice to Tenant. Tenant will have no claim against Landlord based upon
Landlord’s entry onto the Premises for any purpose.
11. 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 Tenant's
indemnification and release of Landlord appearing elsewhere in this Lease.
12. ASSIGNMENT AND SUBLETTING. Tenant shall not assign this Lease or sublet the
Premises.
13. CIVIL RIGHTS ACT. The Tenant for itself, successors in interest, and assigns, as a part
of the consideration hereof, does hereby covenant and agree that in the event improvements
are constructed, maintained, or otherwise operated on the Premises described in this Lease
for a purpose for which a Landlord activity, facility, or program is extended or for another
purpose involving the provision of similar services or benefits, the Tenant will maintain and
operate such improvements in compliance with all requirements imposed by the Acts and
Regulations relative to nondiscrimination in federally-assisted programs of the U.S.
Department of Transportation, Federal Highway Administration (FHWA), (as may be
amended) such that no person on the grounds of race, color, national origin, sex, age,
disability, income-level, or Limited English Proficiency (LEP) will be excluded from
participation in, denied the benefits of, or be otherwise subjected to discrimination in the use
of said improvements.
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14. 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, including 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.
15. 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.
16. MOVING OUT. 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).
17. 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.
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18. 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 classified 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 acknowledges and agrees that they are not a
displaced person.
19. HAZARDOUS SUBSTANCES OR POLLUTANTS OR CONTAMINANTS. Tenant shall not
cause or permit any hazardous substance or pollutant or contaminant to be used, generated,
stored or disposed of on or in the Premises by Tenant, Tenant’s agents, employees, contractors
or invitees. If the Tenant causes or allows the Premises to become contaminated in any manner
by hazardous substances or pollutants or contaminants, during the term of this Lease, Tenant
shall indemnify and hold harmless the Landlord in accordance with Section 8 of this Lease.
This indemnification is intended to, and shall, survive the termination of this Lease. Without
limitation of the foregoing, if Tenant causes or permits the presence of any hazardous
substance or pollutant or contaminant on the Premises, and that presence results in
contamination, Tenant shall promptly, at its sole expense, take any and all necessary actions
approved by the Landlord to return the Premises to a condition that is in accordance with all
applicable Federal, State and Local regulations.
20. IMPROVEMENTS: In the event Tenant desires to make improvements to the Premises,
Tenant shall direct its plans and specifications for approval to:
Metro Division Permits Office
Water’s Edge Building
1500 West County Road B2
Roseville, MN 55113
Any Tenant construction of Improvements shall be completed in accordance with Tenant’s
approved plans.
Upon expiration or earlier termination of this Lease, at its sole cost and expense, Tenant shall
remove such any Tenant improvements including the removal of fencing, skate park ramps,
signage, pavement and restore any damage to the Premises.
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21. EXTENSION OF TERM:
21.01 Landlord hereby grants to Tenant one option of 5 (five) years to extend the term of this
Lease upon the terms and conditions set out in this Section 21, if
(a) Tenant is not in default under this Lease, and
(b) Tenant delivers to Landlord, not later than one(1) year prior to the end of the original
Term written notice exercising its option to extend the term.
21.02 Documentation. Landlord and Tenant shall execute and deliver appropriate
documentation to evidence extension of the term and the terms and conditions of this Lease
during the extended term.
21.03 Non-Severability. The rights of Tenant under this Section 21 shall not be severed from
this Lease or separately sold, assigned, or otherwise transferred, and shall expire on the
expiration or earlier termination of this Lease.
22. PREVIOUS LEASE TERMINATED. Landlord and Tenant have heretofore entered into
that certain Lease dated October 1, 2022, for Premises located at Junction of Hwy 169 and
County Road 3, under Bridge # 27586 as further described in said Lease. Now therefore, in
consideration of the letting of the Premises demised herein, Landlord and Tenant agree that
the aforementioned Lease dated June 15, 2000 shall be cancelled and terminated effective
midnight September 30, 2022. It is specifically understood that such termination shall in no
way eliminate any liabilities of either Landlord or Tenant which arise prior to such termination
date as defined above.
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.
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TENANT
City of Hopkins
Date ____________________________
Signature
Print Name
Title Date
Signature
Print Name
Title Date
LANDLORD, STATE OF MINNESOTA
DEPARTMENT OF TRANSPORTATION
COMMISSIONER OF TRANSPORTATION
By
Scott Pedersen, P.E.
Metro District – Program Delivery
Engineer
Date
Approved as to form and execution
OFFICE OF CONTRACT MANAGEMENT
By
Title
CITY OF HOPKINS
HENNEPIN COUNTY, MINNESOTA
RESOLUTION 2022-061
RESOLUTION APPROVING LEASE WITH THE STATE OF MINNESOTA
DEPARTEMENT OF TRANSPORTATION FOR OVERPASS STAKE PARK
WHEREAS, the City of Hopkins is a political subdivision, organized and existing under the
laws of the State of Minnesota; and
WHEREAS, the City of Hopkins has operated and continues to operate Overpass Skate Park
within the right-of-way of State Trunk Highway 169; and
WHEREAS, the State of Minnesota, Department of Transportation requires a lease to occupy
State right-of-way to allow for the skate park; and
WHEREAS, the State has prepared a new lease allowing for the occupation of the right-of-way
of State Trunk Highway 169 by Overpass Skate Park;
NOW THEREFORE BE IT RESOLVED, that the City Council of the City of Hopkins hereby
authorizes the Mayor and City Manager to enter into Lease No. 27792 with the State of
Minnesota, Department of Transportation for the continued occupation of State right-of-way for
Overpass Skate Park.
Adopted by the City Council of the City of Hopkins this 4th day of October, 2022.
By:___________________________
Patrick Hanlon, Mayor
ATTEST:
_______________________________
Amy Domeier, City Clerk