CR 98-30 Approve Lease w/ Hopkins Area Arts AssociationFebruary 24, 1998
Proposed Action
Overview
Supporting Documents
• Commissioner of Finance letter
• Draft lease
• Memo: Potential revisions to lease
im Parsons, Assistant to the City Manager
Approval of Lease with Hopkins Area Arts Association
Council Report 98 -30
Staff recommends approval of the following motion: Motion to approve of a lease with the
Hopkins Area Arts Association for use of the Hopkins Center for the Arts and to authorize
Mayor Redepenninq and City Manager Mielke to execute the lease on behalf of the City of
Hopkins.
The proposed lease is a two -year lease for use of the gallery and other spaces in the Hopkins
Center for the Arts. The Hopkins Area Arts Association (HAAA) would use the gallery for 26 weeks of
each year, plus 3 weekends to be scheduled via the meet - and - confer process. HAAA would use the
Jaycees Studio for 3 weeks in the spring and 3 weeks in the fall, again to be set in meet - and - confer.
HAAA would use the Jaycees Studio for its quarterly membership meetings. Additionally, each year
HAAA would have 180 hours in the classroom, 40 hours in the rehearsal room, 18 hours in the
Jaycees Studio, 16 hours in the theater, and 100 hours in the conference room, all to be set via
meet - and - confer. Finally, HAAA would have 40 hours of free rehearsal time in the facility, in such
s paces and at such times as scheduling permits at the City's discretion.
Rent for HAAA would be $4,000 for 1998 and $6,000 for 1999, payable in quarterly installments.
The City would also receive 10% of the gratuities collected by volunteers for HAAA in the coatroom.
The lease makes a display case at the gallery entrance available to community festivals such as the
Raspberry Festival during HAAA's use of the gallery.
The draft lease has been approved by Minnesota Commissioner of Finance Wayne Simoneau.
Primary Issues to Consider
• Should the concern about the hiring of staff by HAAA be addressed in the lease?
• Should the concern about the hours the gallery will be open during HAAA's tenure be addressed
in the lease?
• Should the concern about HAAA's use of space be addressed in the lease?
Primary Issues to Consider
Should the Council's concern about the hiring of staff by HAAA be addressed in the lease?
The Council has placed a condition on its annual support of HAAA, which is that HAAA must hire
staff in 1998. The City's support for HAAA will be available to HAAA only after July 1, and only if
HAAA has hired staff. If not, HAAA would have until Dec. 1 to hire staff and receive the City's
contribution. If by Dec. 1, 1998, HAM has still not hired staff, then the City's contribution would
be void. There is a potential lease revision addressing this concern in the memo attached.
Staff recommends that the Council not place a condition regarding hiring staff in the lease.
• Should the Council's concern about the hours the gallery will be open during HAAA's
tenure be addressed in the lease?
Currently, the gallery is open for the following hours during HAAA's shows:
Mondays closed
Tuesdays and Wednesdays 11:00 - 8:00
Thursdays, Fridays, Saturdays Noon - 9:00
Sundays Noon - 5:00
HAAA volunteers, coordinated by Henrietta Zlotnick and Muriel Ryan, are staffing the gallery
during HAAA's shows. According to Center for the Arts staff, there has been a marked
improvement in the ability of HAAA to keep the gallery open with volunteers since its first show
last November. There is a potential lease revision addressing this concern in the memo
attached.
Staff recommends that the Council not place a condition regarding gallery hours in the lease.
• Should the concem about HAAA's use of space be addressed in the lease?
A concern has been expressed that HAAA may not use all the time allotted to it under the lease.
There is a potential lease revision addressing this concern in the memo attached.
Staff recommends that the Council not place a condition regarding use of space in the lease.
Alternatives
The Council has the following alternatives regarding this matter:
1. Approve the item as recommended by staff.
2. Amend and approve the item.
3. Continue the item for additional information.
0 . Deny the item.
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Memorandum
To: Steve Mielke
From: Jim Parsons
Date: Feb. 18, 1998
Copy: n. a.
Subject: Potential Revisions to HAAA Lease
Hopkins Center for the Arts
City Manager's Department
There are three potential revisions to the lease with the Hopkins Area Arts Association
(HAAA) for space in the Hopkins Center for the Arts:
1. Paid Staff
Tenant agrees to create and fill a paid staff position to coordinate HAAA activities,
said position to be at least half time. Tenant agrees to fill said coordinator position
prior to December 31, 1998. If Tenant does not perform as stipulated in this
paragraph, Tenant will be in default of this Lease.
2. Use of Space
Tenant and Landlord agree that Tenant has the right to use various spaces at
various times in the facility as specified in this Lease. Tenant and Landlord agree
to keep track of all the times that Tenant uses any space in the facility. Tenant and
Landlord agree that in January, 1999, Tenant and Landlord will analyze the amount
of time that Tenant used various spaces in the facility in 1998 and compare those
amounts to the total amount of time available to Tenant for use of various spaces in
1998 under this Lease. Tenant and Landlord agree that if in 1998 Tenant has not
used at least one half of the total amount of time available to Tenant for use of
various spaces in 1998 under this Lease, then Tenant will be in default of this
Lease.
3. Gallery Hours
Tenant and Landlord agree that Tenant has use of the gallery for approximately 26
weeks per calendar year under this Lease. Tenant and Landlord agree that Tenant
shall keep the gallery open with an exhibit for public view for at least four hours
daily, six days per week, on average, during Tenant's tenure of the gallery. If
Tenant does not keep the gallery open with an exhibit for public view for at least
four hours daily, six days per week, on average over the course of any month
during Tenant's tenure of the gallery, then Tenant will be in default of this lease.
##
State of Minnesota
Department of Finance
February 2, 1998
To: Elaine Hansen, Commissioner
Department of Administration
cc: Jim Parsons, City of Hopkins
Marlys Christofferson, Administration
AN EQUAL OPPORTUNITY EMPLOYER
400 Centennial Building
658 Cedar Street
St. Paul, Minnesota 55155
Voice: (612) 296 -5900
Fax: (612) 296 -8685
TTY: 1- 800 - 627 -3529
Fr: Wayne Simoneau�
Commissioner
Re: Review of use agreement for the City of Hopkins and the Hopkins Area Arts Association
You have submitted to the Commissioner of Finance the proposed use agreement between the City
of Hopkins and the Hopkins Area Arts Association. The City of Hopkins will be entering into the
use agreement with the Hopkins Area Arts Association to carry out an educational and cultural
program at this facility. A grant to fund the facility will be made from the proceeds of state general
obligation bonds.
Minnesota Statutes 16A.695, Subdivisions 2 (b) and 4.04(a) of the Commissioner's Order require the
prior written approval of a use agreement by the Commissioner of Finance.
We have reviewed the proposed use agreement that you have submitted to us. It meets the
requirements of Minnesota Statutes 16A.695 and the Commissioner's Order and, therefore, I am
approving it.
Please contact Peter Sausen, Assistant Commissioner, at 296 -8372 if you have any questions.
Dated:
LEASE AGREEMENT BETWEEN
THE CITY OF HOPKINS AND
THE HOPKINS AREA ARTS ASSOCIATION
FOR THE HOPKINS CENTER FOR THE ARTS
TABLE OF CONTENTS
Page No.
Statement of Relationship
1. Leased Premises 1
2. Leased Services 2
3. Use of Premises 3
4. Duration of this Lease 3
5. Exclusive Use Times 4
6. Additional Hours Usage by Tenant 4
7. Landlord's Priority on Additional Hours 5
8. Allocation of Additional Hours
through Meet - and - Confer Process 5
9. Shared Use of Building 7
10. Rent 8
11. Leasehold Improvements 8
12. Landlord's Covenants 9
13. Tenant's Covenants 10
14. Landlord's and Tenant's Scope of Liability 11
15. Partial Destruction of Premises 12
16. Breach of Covenants 13
17. Termination of Lease 14
18. Interpretation and Amendment 14
19. Real Estate Taxes 14
20. Landlord's Statutory Authority 14
21. Statutory Citation for Governmental Program 15
22 Oversight by Landlord 15
23. Termination of Governmental Program 15
24. Cost of Operation of the Facility 15
25 Receipt of Money /Compliance with Tax Code 15
26 Sale of the Facility 16
27. Representation on Operations Board 16
28. Release of Spaces by Tenant; Contact Person 17
29. Hazardous Substances /Environmental Regulations 17
30. Transfer of the Project to the City 18
31. Estoppel Certificates 18
32. Subordination 19
33. Concessions; Coatroom; Display Cases 19
34. Notices 20
Signature Page 21
TABLE OF CONTENTS
Exhibits Subject of Exhibit Page First Cited
A Legal Description of Premises 1
B Floor Plan 4
C Exclusive Use Spaces and Times and
Additional Hours Usage for CPTC,
School District and HAAA 6
D CPTC Theater Equipment 10
E Criteria for Allocation of Dates 7
F State Grant Requirements 15
STATEMENT OF RELATIONSHIP
This statement is intended to clarify the relationship between the City of Hopkins and
the Hopkins Area Arts Association (HAAA).
The City of Hopkins recognizes the value of HAAA as a community non - profit volunteer
arts organization. The City of Hopkins further recognizes that HAAA is a relatively
young organization, and that HAAA is venturing to meet the new responsibility of the
gallery in the Hopkins Center for the Arts under the terms described in this lease. The
City recognizes the uncertainty of this new venture for HAAA.
HAAA recognizes that lease rent from tenants is a vital part of the revenues of the
Hopkins Center for the Arts. HAAA recognizes that it is not the intention of the Hopkins
City Council to support the Hopkins Center for the Arts with resources from the general
fund.
The City of Hopkins desires to have HAAA as a tenant in the facility. The City of
Hopkins will not hold directors or members of HAAA personally liable for the financial
obligations of the lease. The City of Hopkins will not seek recourse concerning HAAA
in the event of non - payment of rent except as described in the lease.
Should HAAA fail to pay a rental payment under the lease, the City of Hopkins and
HAAA will document and assess the situation. This documentation and assessment
will be considered by the City of Hopkins and. HAAA when entering into negotiations
over the lease or any future agreements.
AGREEMENT BETWEEN THE
CITY OF HOPKINS AND THE
HOPKINS AREA ARTS ASSOCIATION FOR THE
HOPKINS CENTER FOR THE ARTS
THIS AGREEMENT is executed in multiple originals this day of
, 1998, by and between the City of Hopkins, referred to as the
"Landlord ", and the Hopkins Area Arts Association, referred to as the `Tenant ".
1. Leased Premises. The Landlord, in consideration of the rents and covenants
stated in this agreement to be paid and performed by Tenant, but only for the dates
and times specified herein and subject to the terms and conditions of this Lease,
does lease to the Tenant and the Tenant does lease from the Landlord the premises
situated within the Hopkins Center for the Arts (the "Building") at 1111 Mainstreet,
Hopkins, Minnesota, and further described herein. The premises covered by this
agreement are limited to those portions of the Building to be leased to Tenant
pursuant to this agreement and are referred to herein as the "Leased Premises" or
the "Premises."
Landlord leases to Tenant and Tenant hires and takes of and from Landlord the
leased Premises as defined herein, together with the right to us e in common with
the Other Users and Landlord the common areas of the facility including the lobby,
rest rooms, elevators, stairs and hallways, as well as the Shared Use Areas of the
facility and all rights and easements appurtenant to the facility including un-
designated parking areas.
The legal description for the Hopkins Center for the Arts property is at Exhibit A:
Legal Description.
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2. Leased Services. Subject to the performance by Tenant of its obligations under
this lease, Landlord agrees to provide the following services to Tenant:
a. Heating, ventilation and air conditioning (hereinafter called "HVAC ") at such
levels as are necessary in Landlord's reasonable judgment, to provide a temperature
condition which permits comfortable occupancy of the Building for normal operations
during the hours of 7:00 a.m. to 11:00 p.m. seven days per week except on days when
the Building is closed as stipulated elsewhere herein (hereinafter called the "Normal
Building Hours"). Notwithstanding the foregoing, Landlord shall not be obligated to
provide HVAC service to the Building which would violate any mandatory regulations
imposed by any governmental authority having jurisdiction over the Building.
b. Electricity for the Premises for normal gallery, stage and performance lighting
and use. Normal lighting and use include the use of all lighting and related fixtures and
equipment included in the plans and specifications for the Building (including the CPTC
Theater Equipment) in the manner for which such fixtures and equipment were
designed. If in Landlord's reasonable judgment Tenant's electrical consumption in the
Premises exceeds normal use, the Tenant shall reimburse the Landlord the cost of
such excess consumption.
c. Hot and cold water from the regular building outlets for restrooms and drinking
purposes.
d. Passenger elevators, to be provided to all Tenants of the Building by automatic
elevators; provided, however, that Landlord shall have the right to restrict the use of
such elevators for freight purposes to the freight elevator and to hours to be determined
by the Landlord, and Landlord shall have the right to limit the hours of operation of all
elevators at all times other than Normal Building Hours.
e. Janitorial services in and about the Building, such that the Building and the
Leased Premises are kept clean and free of debris.
f. Any undesignated parking facilities located adjacent to the Building and all
driveways leading thereto, for use in common with Other Users of the Building and their
respective employees and invitees. Landlord shall keep such facilities and driveways
in good order, repair and condition, and shall clear snow and ice from same. Landlord
shall have the right to designate parking stalls for certain users of the Building on a
temporary or permanent basis.
g. Landlord will replace any broken door closures and any broken glass in the
Building, and will keep all mechanical, electrical and plumbing apparatus in good
repair. Landlord will replace or repair any non- functioning light bulbs and tubes, and
will repair the roof as necessary to prevent water seepage.
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No interruption in or temporary stoppage of any of these services caused by any
repairs, alterations or improvements to the Building which Landlord may or by the terms
of this Lease is obliged to make, or by accidents, labor disputes, inability to obtain fuel
or supplies, or any other cause beyond the reasonable control of Landlord shall be
deemed an eviction or disturbance of Tenant's use and possession of the Premises,
nor shall such occurrence render Landlord liable for damages, by way of abatement or
otherwise, nor shall it relieve Tenant of any obligation under this Lease. Landlord shall
use all reasonable efforts to restore such services as soon as possible.
Notwithstanding the foregoing, in the event that any of such services is interrupted or
suspended for any cause other than the act or failure to act on the part of Tenant, and
as a direct result thereof the Premises is rendered untenantable for a period of more
than 120 consecutive hours, then Rent payable for the period commencing with the end
of such 120 -hour period and ending at such time as the service interrupted or
suspended is restored to a level at which the Premises is again tenantable shall be
abated. Furthermore, in the event that any of such services is interrupted or
suspended for any cause other than the act or failure to act on the part of Tenant or
casualty loss, and as a direct result thereof the Premises is rendered untenantable for
a period of thirty (30) consecutive days or more, then Tenant shall have the right, at its
option and as its sole remedy, to terminate this Lease by giving Landlord written notice
thereof at any time thereafter and before the service interrupted or suspended is
restored to a level at which the Premises is again tenantable, with termination to be
effective as of the date specified in such notice, but not earlier than the date of such
notice.
3. Use of Premises. The Leased Premises shall be used by the Tenant solely for the
purpose of artistic and cultural appreciation and education, and community uses
related to artistic and cultural events and programs.
4. a. Duration of this Lease. The Tenant shall have full right to have and to hold
the leased Premises for a duration of two (2) months and two (2) years, commencing
on the fourth day of November, 1997, and ending on the thirty -first day of December,
1999 (herein called the "Duration ") upon the rentals and subject to the conditions set
forth in this Lease Agreement. Landlord and Tenant acknowledge that the useful life of
the facility is fifty (50) years, and that the duration of this lease is less than 50% of the
useful life of the facility.
3
5. Exclusive Use Times. The Tenant shall be entitled to the exclusive use and
possession, subject to the provisions of this Lease, of the Gallery and of the Multi -Use
Performance Hall as shown in Exhibit B: Floor Plan to this Lease, but solely for the
hours and days stated below:
Gallery: 24 weeks to be set in Meet - and - Confer Process
3 weekends to be set in Meet - and - Confer
Multi -Use Performance Hall: 3 weeks in Feb. -April to be set in Meet - and - Confer
3 weeks in Aug. -Oct. to be set in Meet - and - Confer
The evening of the third Wednesday in March, June, September and December.
6. a. Additional Hours Usage by Tenant. In addition to Tenant's use and
possession of certain spaces as specified above, Tenant shall be entitled to the
exclusive use and possession of the following spaces for the number of "Additional
Hours" per Activity Year as stated below. "Activity Year" shall be defined as a 12-
month period from August 1 through the following July 31.The dates and times on
which Tenant shall be entitled to such Additional Hours usage of the spaces identified
herein shall be determined by the "Meet- and - Confer" procedure described below. For
the purposes hereof, the "all day" use of a space shall be deemed to be for sixteen (16)
hours.
Additional Hours
Space per Activity Year
Gallery 244 (Approx. 2 weeks)
Classroom 180
Rehearsal Room 40
Multi -Use
Performance Hall 18
Theater: House, Upper
House, Stage, Green
Room, Make -up Room,
Dressing rooms 16
Conference Room 100
b. In addition to the above provisions, Landlord agrees to provide Tenant with
40 rehearsal hours per Activity Year in a suitable space in the Building, if scheduling
permits at Landlord's discretion. Landlord agrees to make reasonable accommodation
for Tenant's rehearsal needs during the hours specified in this paragraph. Landlord
agrees there is no rental charge for the hours specified in this paragraph.
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7. Landlord's Priority on Additional Hours. Landlord shall have a certain number of
Additional Hours and shall have priority over Tenant and all other users in scheduling
said Additional Hours in the Meet - and - Confer process described below. Landlord's
Additional Hours per Activity Year are:
Space
Theater
Rehearsal Room
Multi -Use Performance Hall
Dance Studio
Additional Hours
per Activity Year
146 hours
206 hours
380 hours
254 hours
8. Allocation of Additional Hours Through Meet - and - Confer Process. Scheduling
of Additional Hours on Available Usage Dates for spaces within the Hopkins Center for
the Arts will be accomplished through a Meet - and - Confer process involving the major
tenants (Child's Play Theater, Hopkins Area Arts Association, and District 270) and the
City of Hopkins. The Tenant agrees to participate in this process beginning on or
before December 10 of each year as described below for the upcoming Activity Year.
There will be three Meet - and - Confer sessions during each calendar year for the
purpose of scheduling activities for the upcoming Activity Year. Participants in Meet -
and- Confer may also by mutual agreement schedule activities for Activity Years farther
in the future than the coming Activity Year.
The first Meet - and - Confer session, as further described below, will occur on or about
February 10 of each year, and will focus on scheduling events for the upcoming
Activity Year, with primary focus on summer and fall activities. The session may also
involve scheduling by mutual agreement any events for Activity Years farther in the
future than the coming Activity Year.
The second Meet - and - Confer session will occur on or before May 31 and will focus on
updating and adding to the activity schedule, with primary focus on winter and spring
activities. The third Meet - and - Confer session will occur on or before September 30
and will focus on updating and adding to the activity schedule as developed at the first
and second sessions. The session may also involve scheduling by mutual agreement
any events for Activity Years farther in the future than then current Activity Year.
The agenda of each Meet - and - Confer session shall include specification by each
tenant of tenant activities during each tenant's respective exclusive use times and
Additional Hours, as well as discussion of logistical issues related to shared use of the
facility, including parking, kitchen use, foot traffic in lobby and halls, noise, etc.
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Tenant agrees to submit to Landlord by December 15 of each year a schedule of
Tenant's activities in the Hopkins Center for the Arts for the coming Activity Year. On
or before December 31 of each year during the duration of this lease the Landlord
shall prepare and deliver to Tenant, and to all other users (other than occasional users)
a Schedule of Available Usage Dates for the spaces identified in Exhibits B and C
(Exclusive Use Spaces and Times and Additional Hours Usage) to this lease for the
following Activity Year identifying the dates and times during said Activity Year such
spaces are available for use. The Schedule of Available Usage Dates shall list all of
the dates and times not reserved for the exclusive use of Tenant or other users and
shall exclude the Exclusive Use Spaces and Exclusive Use Times reserved to Tenant,
Landlord, or other users as stated above and in Exhibit C. Each available Usage Date -
listed in the Schedule of Available Usage Dates is hereinafter referred to as an
"Available Usage Date ".
Within fifteen (15) days following the delivery by Landlord to Tenant of the Schedule of
Available Usage Dates, Tenant shall review the Schedule of Available Usage Dates
and specify the Available Usage Dates selected by Tenant for the upcoming Activity
Year which shall not exceed the "Additional Hours" stated above, and shall be limited to
the spaces identified in this lease; Tenant shall also specify Tenant's various activities
for the various spaces and times as described herein. Tenant shall return the
Schedule of Available Usage Dates specifying the Available Usage Dates selected by
Tenant to Landlord within the 15 -day period noted above and no later than January 15.
Within fifteen (15) days following i) the delivery to Landlord of the Schedule of
Available Usage Dates specifying Tenant's selection of Available Usage Dates, and ii)
the delivery to Landlord of the selections of Available Usage Dates from the Other
Users (excluding occasional users) and no later than January 31, Landlord shall
prepare and deliver to Tenant and the other users (excluding occasional users) a
revised Activity Schedule /Schedule of Available Usage Dates which shall identify the
Available Usage Dates selected by Tenant and the other users (excluding occasional
users but including Landlord).
The revised Activity Schedule /Schedule of Available Usage Dates shall include a
notice to Tenant and all other users (excluding occasional users) of the date and
location of a meeting to be attended by Landlord's representative, Tenant's
representative and representatives of all other users (excluding occasional users) for
the purpose of resolving any conflicts in the selection of Available Usage Dates, such
meeting to be held within ten (10) days following the date of delivery of the revised
Activity Schedule /Schedule of Available Usage Dates to Tenant and the other users.
Tenant agrees that its duly authorized representative shall attend such meeting (herein
referred to as the "Meet- and - Confer" meeting), which shall take place no later than
February 10 or as all the participants may otherwise agree.
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Tenant agrees that at any time prior to the Meet - and - Confer meeting, Landlord may
request Tenant in writing to release Spaces from Exclusive Use Times reserved
pursuant to this Lease. Tenant shall consider each such request; provided, however,
under no circumstances shall Tenant be obligated to release any Spaces from
Exclusive Use Times reserved pursuant to this Lease.
At the Meet - and - Confer meeting, Landlord, Tenant, and the other users (excluding
occasional users) shall confer and attempt to resolve all conflicts regarding the
allocation of Available Usage Dates. In doing so, the criteria listed in Exhibit E
( "Criteria for Allocation of Dates ") to this lease shall be applied in resolving conflicts
between tenants as to the allocation of Available Usage Dates. Any conflicts regarding
the allocation of Available Usage Dates which are not resolved at the Meet - and - Confer
meeting shall be finally determined by Landlord applying the criteria listed in Exhibit E,
and Landlord's determination shall be final and binding on the Tenant. Within ten (10)
days after the Meet - and - Confer meeting and no later than February 21, Landlord shall
prepare a Schedule of Usage Dates (the "Final Schedule ") for the next Activity Year
and deliver a copy of such Final Schedule to Tenant and to the other users (excluding
occasional users).
Landlord and Tenant agree that the Schedule of Available Usage Dates for the initial
partial Activity Year, which will begin on the date of the opening of the Project to
Tenant's Activities and end on July 31, 1998, shall be completed prior to October 1,
1997, applying the provisions stated in this section, and that Landlord shall circulate
the initial draft of the Schedule of Available Usage Dates for such partial Activity Year
no later than 30 days prior to the anticipated date of opening.
9. Shared Use of Building. Landlord and Tenant acknowledge that Landlord has
entered into leases with Child's Play Theatre Company ( "CPTC ") and the Hopkins
Public School District ISD 270 ( "School District ") pursuant to which CPTC and School
District are entitled to certain Exclusive Use Spaces, Exclusive Use Times and
Additional Hours Usage, as identified in Exhibit C.
Landlord shall also reserve certain times for the building and/or spaces in the building
for use by Landlord or other users ( "Occasional Users ") to whom Landlord intends to
lease for the Additional Hours reserved to Landlord and other times as scheduling
permits.
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Tenant agrees and acknowledges that, except as stated herein, Tenant shall not be
entitled to the use and possession of spaces and times reserved to Landlord or leased
to other users, and Tenant agrees the Landlord and other users of the building shall be
entitled to the exclusive use of certain spaces as Exclusive Use Spaces or for the
Exclusive Use Times stated in this Lease and the exhibits hereto.
Landlord and Tenant acknowledge and agree that the parties to this lease will
cooperate to facilitate the efficient operation of the facility, to maximize use of the
facility by Tenant, CPTC, the School District, Landlord and Occasional Users, and to
optimize Tenant's productive use of its tenancy in the facility hereunder. Landlord and
Tenant will cooperate in the shared use of the coatroom and the kitchen by Tenant,
CPTC, the School District, Landlord and Occasional Users.
10. Rent. Tenant agrees to pay the Landlord as rent (herein called "Rent ") for the
leased Premises without notice, set -off or demand during the duration of this lease
as follows:
For calendar year 1998, the annual sum of four thousand dollars and no cents
($4,000.00) at a quarterly rate of one thousand dollars and no cents ($1,000.00).
For calendar year 1999, the annual sum of six thousand dollars and no cents
($6,000.00) at a quarterly rate of one thousand five hundred dollars and no cents
($1,500.00).
Quarterly rental payments are due and payable by Tenant in advance of the beginning
of each calendar quarter at the office of the Landlord as set forth in this Lease or at
such other place as Landlord may designate in writing. One rental payment of
$1,000.00 shall be due and payable on the date of execution of this Lease by Tenant
for the first period's rent, said period to be Nov. 4, 1997 to March 31, 1998. A like
rental payment shall be due and payable on or before the first day of April, July, and
October during the year 1998. A quarterly rental payment of $1,500.00 shall be due
and payable on or before the first day of January, April, July, and October during the
year 1999.
11. Leasehold Improvements. Tenant agrees to make no leasehold improvements or
alterations in the premises without first obtaining Landlord's written consent. All
improvements such as fire -rated carpeting and air conditioning which are affixed to the
premises shall remain and become the property of the Landlord in the event of lease
termination. Except as otherwise stated in this Lease, the Landlord shall not be
required to make any alteration or improvement to the leased premises.
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12. Landlord's Covenants. The Landlord hereby covenants and agrees as follows:
a. To furnish all necessary utilities for the proper functioning of the building, including
heat, electricity, water and sewer and to keep same in good repair. Landlord shall
maintain the Building in good condition and repair.
b. To provide custodial, maintenance and repair services for the leased premises and
common areas, including ice and snow removal in accordance with Landlord's snow
removal schedule.
c. To enter the leased premises only at reasonable times and with minimal disruption
for the purposes of inspection and to repair and correct all structural or other
defects in the premises and equipment, fixtures, or appliances serving same.
d. To maintain the building's normal operating hours of 7:00 a.m. to 11 p.m. Monday
through Sunday.
e. To provide a mailbox for Tenant within the Building, so that Tenant may use the
address of the Building as Tenant's address.
f. To provide a sign and a literature display regarding Tenant's organization and
activities within the Building, subject to Landlord's policies, throughout the term of
this Lease, so that the public can be made aware of Tenant's organization and
activities.
g.
To permit Tenant to place a desk, chair, filing cabinet and office divider, at Tenant's
expense, in the gallery for Tenant's exclusive use during Tenant's Exclusive Use
Times and Additional Hours in the gallery. Tenant agrees to make the desktop and
chair available to occasional users of the gallery during all other times.
h. To install at Landlord's expense a telephone jack in the gallery. Telephone services
and hardware in the gallery will be at Tenant's expense. Landlord understands that
Tenant may remove its telephone from the gallery during times other than Tenant's
Exclusive Use Times and Additional Hours in the gallery.
i. To permit Tenant to use the gallery storage room throughout the term of this lease.
Said use is not exclusive use, but may be use shared with Landlord. Landlord
agrees that Tenant shall be the primary user of the gallery storage room.
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13. Tenant's Covenants. The Tenant hereby covenants and agrees as follows:
a. Not to use or permit any activity upon the premises that will be dangerous to life,
limb, or property.
b. To provide a certificate of insurance covering its exposure to liability as set forth in
this Lease.
c. Not to deface or injure, nor during the Tenant's use of a space to allow to be
defaced or injured,, the leased premises or any part of the building and grounds; not
to overload the floors, nor to fill rooms beyond the legal capacity of said rooms; not
to create nor allow to be created any nuisance in the building or on the grounds
thereof.
d. Not to erect nor allow to be erected within or on the exterior of the building or on its
grounds any sign without the prior written consent of the Landlord.
e. Not to sublet the premises or any part thereof, nor to assign this Lease or any
interest herein, nor to permit this Lease to be transferred by operation of law or
otherwise without obtaining the prior written consent of the Landlord.
f Not to waste nor to misuse water, electricity, heat, or any of the other utilities or
services that shall be furnished by the Landlord.
g. To notify Landlord immediately upon becoming aware of any defects in the
premises or any equipment, plumbing, fixtures, appliances and machinery therein.
h. To quit and deliver up the premises to Landlord peaceably and quietly at the end of
the duration of this Lease or any extension or previous termination of same for any
cause in as good order and condition and state of repair, wear and tear excepted,
as the same are or may be put into by Landlord or Tenant.
i. To arrange with Child's Play Theatre Company, on reasonable terms acceptable to
Tenant and to Child's Play Theatre Company, for the use and operation of Child's
Play Theatre Company's theater equipment and such related equipment of Landlord
when use of said equipment is required for Tenant's activities in the Theater and the
Multi -Use Performance Hall. A list of Child's Play Theatre Company's theater
equipment shall be attached as Exhibit D hereto.
j. To comply with all state, federal and municipal statutes, laws, ordinances and
regulations and such reasonable rules and regulations as maybe adopted by
Landlord for the use of the Building.
10
14. Landlord's and Tenant's Scope of Liability. Tenant agrees that it shall
purchase in advance and carry the following insurance at its own expense: a) Fire and
extended coverage insurance insuring Tenant's personal property, furniture, trade
fixtures, inventory and business records against Toss from all insurable events for the
full replacement value thereof, b) comprehensive general public liability insurance,
providing coverage on an "occurrence" and not a "claims made" basis, covering all acts
of Tenant, its employees, agents, representatives and guests and insuring against all
claims arising from injury to persons or damage to property in or about the Leased
Premises, Building or the Project in a single limit amount of not less than $1,000.000.00
for personal injury or death and not less than $500,000.00 for property damage and fire
legal liability.
All such insurance shall name Landlord as an additional insured and shall provide for
ten (10) days written notice to Landlord prior to cancellation, non - renewal or material
modification. Certificates of all such insurance shall be delivered to Landlord prior to
occupancy of the Leased Premises by Tenant and at least ten (10) days prior to the
termination date of any existing policy. Tenant shall pay to Landlord, upon demand, as
additional rent the cost of securing such insurance in the event Tenant fails to furnish
certificates of insurance to Landlord. However, it is not Landlord's duty nor obligation
to secure such insurance for Tenant.
Landlord shall during the Term of this Lease maintain standard all risk insurance on the
Building, including any fixtures which are the property of Landlord and including any
improvements to the Leased Premises which shall become the property of Landlord
upon termination of this Lease, insuring against loss by fire and other perils covered by
a standard extended coverage endorsement. Such insurance shall be in an amount of
not less than the full replacement cost of the Building. Landlord shall maintain, during
the Term of this Lease, comprehensive general public liability insurance covering the
legal liability of Landlord against claims for bodily injury, death or property damage
occurring on or about the Project in a single limit dollar amount of not less than that
required by the full extent of Minnesota statutes for personal injury or death and not
less than $500,000.00 for property damage. With respect to all comprehensive general
public liability insurance maintained by Landlord and any Other Users of the Project
(other than the Occasional Users), Tenant hereunder shall be named as an additional
insured thereunder and shall be entitled to at least ten (10) days written notice prior to
any termination, cancellation, non - renewal or material modification thereof. The
requirements of this section relating to insurance to be maintained by Landlord shall be
subject to the requirements of any mortgage or loan agreement to which Landlord is
subject, and the terms of any such mortgage or loan agreement shall control the
provisions of this section.
11
Landlord shall not be responsible or liable to the Tenant for any injury or damage
resulting from acts or omissions of third persons occupying property adjoining the
leased premises or any part of the building of which the leased premises is a part, nor
for any injury or damage to the Tenant or its property resulting from bursting, stoppage
or leaking of water, gas, sewer or steam pipes, except where such injury or damage
arises from the willful or negligent misconduct of the Landlord, its agents or employees
or from the Landlord's failure to make the repairs which it is obligated to make
hereunder.
Landlord and Tenant agree to indemnify one another and to hold one another harmless
inclusive of the indemnified party's officers, agents, partners and employees from and
against all claims, costs, liabilities and expenses of whatever nature a) arising or
resulting from any act, omission or negligence of the indemnified party, its officers,
employees or agents in or about the Leased Premises, the Building or the Project or, b)
arising in connection with the indemnified party's use or occupancy of the Building, the
Project or the Leased Premises or the conduct of the indemnified party's business
thereon, and Landlord and Tenant agree to indemnify and hold harmless one another
from and against all costs, expenses and liabilities, including reasonable attorney's
fees, incurred in connection with any such claims or proceedings brought thereon, and
the defense thereof. Landlord agrees that it will not hold directors or members of HAAA
personally liable for the financial obligations of this lease.
15. Partial Destruction of Premises. Landlord and Tenant agree that if during the
duration of this Lease the leased premises or the improvements thereon should be
injured or destroyed by fire or the elements, or through any other cause, so as to
render the leased premises unfit for occupancy, or to make it impossible to conduct the
business of the Tenant thereon, or to such an extent that the premises cannot be
repaired with reasonable diligence within 120 days from the date of such injury, then
the Landlord may terminate this lease as of the date of such damage or destruction.
Notice of termination must be given within 30 days of receipt by Tenant of Landlord's
that the Building cannot be restored within 120 days. The Tenant shall then
immediately surrender the leased premises and all interest therein to the Landlord.
The Tenant shall pay rent only to the time of such damage or destruction In case of
any such destruction or injury the Landlord may reenter and repossess the leased
premises described in this lease, and may dispossess all parties then in possession
thereof. But if the leased premises can be restored within 120 days from the date of
the injury thereto, the Landlord within 30 days from the occurrence of such injury shall
notify Tenant as soon as possible after Tenant informs Landlord of such casualty (but
no more than 30 days thereafter) of the amount of time which Landlord estimates will
be required to repair the Premises and to render the affected portions thereof
tenantable. Landlord shall cause such damage to be repaired and the affected
portions of the
12
Building to be restored to as near their condition as existed immediately prior to such
casualty as is reasonably possible, at Landlord's expense, with due diligence subject to
delays which may arise by reason of adjustment of loss under insurance policies or any
other reason beyond the reasonable control of Landlord. In no event shall Landlord be
obligated to repair or restore any special equipment or improvements installed in the
Premises by Tenant at Tenant's expense.
In such event the rent shall not run or accrue from the date of such injury through the
date of completion of such repairs, except that the Tenant shall during such time pay a
pro rata portion of such rent apportioned to the portion of the leased premises which
are in condition for occupancy or which may be actually occupied during such repairing
period. If, however, the leased premises shall be so slightly injured by any cause
aforesaid as not to be rendered unfit for occupancy, then the Landlord shall repair the
same with reasonable promptness, and in that case the rent shall not cease or be
abated during such repairing period. All improvements placed by the Tenant on the
leased premises shall, in any event, be repaired and replaced by the Tenant at its own
expense and not at the expense of the Landlord. -
16. Breach of Covenants. In the event of the breach by either party of a material
covenant of this Lease and if said breach is not corrected within thirty (30) days (ten
(10) days for non - payment of rent) after written notice to the other party of said breach,
then the non - breaching party may at its election terminate this Lease upon written
notice. The Tenant shall be deemed to be in breach of this Lease if the Tenant's
leasehold interest shall be taken on execution or other process of law, or if the Tenant
shall petition to be or be declared bankrupt or insolvent according to law, or if the
Tenant shall vacate said premises or abandon same during the duration of this lease.
In the event a breach of this Lease is not corrected, the Landlord may at its election
and upon written notice to the Tenant declare this Lease forfeited and void, and may
thereupon re -enter and take full and absolute possession of said premises as the
owner thereof, and free from any right or claim of the Tenant, or any person or persons
claiming through or under the Tenant; and such election and re -entry last mentioned
shall be and constitute an absolute bar to any right to enter by the Tenant upon the
payment of all arrears of rent and costs after a disposition under any suit or process for
breach of any of the covenants of this lease, and the commencement by the Landlord
of any action to recover possession of aforesaid premises shall be deemed a sufficient
notice of election of said Landlord to treat this lease as void and terminated, without the
written notice above specified in this subparagraph.
13
Re -entry by the Landlord and declaration of forfeiture shall not work a forfeiture of the
rents to be paid and the covenant to be kept by Tenant for the full term of this lease,
except that Landlord shall make a good faith and reasonable effort to re -let the leased
premises and any money received therefrom shall be applied to Tenant's rent
obligations, provided that the reasonable expenses incurred by the Landlord in any
such re- letting may be deducted from any money received therefrom.
17. Termination of Lease. If for any reason the Tenant does not promptly vacate the
premises at the end of the term, the Tenant agrees to pay the Landlord for such time as
elapses between the end of the term of the lease and the time when the Tenant
actually vacates the premises, a pro rata amount equal to one and one -half (1.5) times
the rent provided to be paid during the final quarter of the term of the lease.
18. Interpretation and Amendment. The terms of this lease agreement shall be
interpreted in accordance with the laws of the State of Minnesota. The parties agree
that no assent, express or implied, by the Tenant or the Landlord to any breach of any
of the covenants or agreements contained herein shall be deemed or taken to be a
waiver of any succeeding breach of such covenant. This agreement is binding on the
parties hereto and their successors in interest and it contains the complete agreement
of the parties. This agreement can only be amended in writing signed by both parties.
19. Real Estate Taxes. If the current tax exempt status on the Building changes due
to the Tenant's occupancy, the Tenant shall pay all of the real estate taxes on said
property and all of any payments required to be made in lieu of taxes, including
payments required by M. S. 272.68, Subd. 3.
20. Landlord's Statutory Authority. The Landlord has the authority to enter into and
execute this lease agreement under Minnesota Statutes 471.15, 471.191, and 469.012.
14
21. Statutory Citation for Governmental Program. The Landlord has the authority to
enter into and execute this lease agreement in order to carry out a governmental
program, which is artistic and cultural appreciation and education, and
community uses related to artistic and cultural events and programs . The
statutory citations for this governmental program are M. S. 471.15 and 471.191, which
state in part, "Any... city... or any board thereof... may operate a program of public
recreation..." and, "Any city operating a program of public recreation... may
acquire...and maintain land, buildings, and other recreational facilities, including, but
without limitation,... concert halls,... and facilities for... cultural participation, contests,
and exhibitions..."
22. Oversight by Landlord. Tenant agrees to provide Landlord with an initial
program evaluation report, and with annual budgets for the Tenant's program to be
operated in the facility, showing program revenues and expenses.
23. Termination of Governmental Program. In the event Tenant terminates or
changes the governmental program to be carried out by Tenant from the leased
premises, Landlord may upon at least sixty (60) days written notice to Tenant and
opportunity to cure, and upon action by the Hopkins City Council at a meeting of which
Landlord shall have notified Tenant, terminate this lease in accordance with its terms.
Tenant's use of the leased premises shall comply with the requirements of Sections
2.03, 3.02 D, and 3.03 G of the grant agreement entered into by Landlord with the State
of Minnesota, Department of Administration, said sections being attached hereto as
Exhibit F "State Grant Requirements ".
24. Cost of Operation of the Facility. The Landlord has specific statutory authority to
expend money to operate and maintain the facility under M. S. 471.191, "Any city
operating a program of public recreation... pursuant to sections 471.15 and 471.19 may
acquire or lease, equip, and maintain land, buildings, and other recreational facilities,...
and may expend funds for the operation of such program and borrow and expend funds
for capital costs thereof pursuant to the provisions of this section."
25. Receipt of Money /Compliance with Tax Code. The parties hereto agree that, on
direction from the Minnesota Commissioner of Finance, the parties will take such
actions and furnish such documents as the Commissioner determines to be necessary
to ensure that the interest to be paid on the state's general obligation bonds issued in
connection with the Building is exempt from federal taxation.
15
26. Sale of the Facility. Landlord and Tenant acknowledge that this lease agreement
is free of any provisions which would require the Landlord to sell the facility to the
Tenant for an amount less than its fair market value, that this lease agreement is free of
any provisions which would require Landlord to sell the facility without first obtaining
the written consent of the Minnesota Commissioner of Finance, that this lease
agreement is free of any provisions that would cause the manner of distribution of the
proceeds of the sale of the facility to violate the provisions contained in the General
Obligation Compliance Bill and /or in the Order of the Minnesota Commissioner of
Finance, and that this lease agreement contains no sale or purchase option provisions.
Landlord and Tenant further represent to one another hereby that no such sale or
purchase option provisions as described in this paragraph exist in any agreement
between the parties hereto, including but not limited to this lease agreement.
The parties hereto agree that the employees, agents and representatives of Landlord
and of the State of Minnesota, including the Departments of Finance and
Administration thereof, shall have access to Tenant's Exclusive Use Spaces and the
remainder of the leased premises hereunder for the purpose of determining whether
the governmental program is being carried out by Tenant from the leased premises.
The parties hereto agree that they shall jointly and severally promptly supply upon
request by the Minnesota Departments of Finance or Administration any and all
documentation and records, which may by said state agencies be required for the
purpose of providing state oversight of the governmental program and of the state
funds granted to the Landlord for construction of the Building.
For a,period of one year from the date of this lease, Tenant shall list any job vacancies
or new jobs it may have with Job Services of the Minnesota Department of Economic
Security.
27. Representation on Operations Board. Landlord and Tenant acknowledge that
the Hopkins Center for the Arts shall operate under rules and regulations established
by a Center Operations Board (the "Operations Board "). The Operations Board will be
an official board of the City of Hopkins and an advisory body to the Hopkins City
Council. Landlord and Tenant acknowledge that the Center Operations Board will have
an odd number of members and that the Tenant may, during the term of this lease,
appoint one member of the Center Operations Board as Tenant's representative.
16
28. Release of Spaces by Tenant; Tenant's Executive Contact Person. Landlord
Tenant agree that after Landlord delivers the Final Activity Schedule per above, upon
request of Landlord, Tenant may elect (but shall not be obligated) to release to
Landlord any Space for any date or time Tenant is entitled to use such Space under the
provisions of this lease. In that regard, Tenant agrees to collaborate with Landlord and
Other Users to use the Building to the fullest extent possible. Tenant agrees that
Hopkins Area Arts Association president or designee shall be authorized to grant or
deny any request for release of space under this section.
Notwithstanding the above, Tenant shall be obligated to release any space other than
the Gallery to Landlord under the following conditions: Landlord must give Tenant six
weeks' notice of a request for release of a specific space at a specific time; if Tenant
after receipt of such notice fails to specify to Landlord a Tenant activity at least twenty -
one (21) days prior to the specific time for which a specific space is requested, then
Tenant shall be deemed to have released that specific space for that specific time for
use by Landlord or by users other than Tenant, and Landlord shall be entitled to retain
all rent or other payments received for the use of such space.
29. Hazardous Substances /Environmental Regulations. Tenant warrants and
represents that:
a. Its use of the Leased Premises and the operation of its business and affairs thereon
shall not violate any law, statute, ordinance, rule, regulation, order or determination
of any governmental authority pertaining to hazardous substances, toxic waste,
asbestos, health or the environment (hereinafter sometimes collectively called
"Environmental Regulations ") including, but not limited to, the Comprehensive
Environmental Response, Compensation, and Liability Act of 1980 as amended by
the Superfund Amendments and Reauthorization Act of 1986, and the Resource
Conservation and Recovery Act of 1976 and the Minnesota Environmental
Response and Liability Act;
b. Tenant will obtain prior to its commencement of activities in the Building and shall
continue to maintain all permits, licenses or similar authorizations, if any required by
Environmental Regulations to conduct its business on the leased premises and;
c. Tenant's use of the leased premises will not result in the disposal, discharge or
release in violation of applicable Environmental Regulations of any hazardous
substance, toxic waste, asbestos or other substance ( "Hazardous Substances ")
regulated by Environmental Regulations on or about the leased premises, building
or project.
17
In the event Tenant, its officers, agents, employees or subcontractors breach or fail to
perform any of the warranties and representations contained in this section:
d. Upon notice from Landlord, Tenant shall remove from the leased premises, building
or project, at Tenant's sole expense, any Hazardous Substance which is not in
compliance with Environmental Regulations or this lease;
e. Landlord and such environmental engineers or consultants as it may employ shall
be entitled to enter upon the leased premises upon reasonable prior notice for the
purpose of conducting such environmental audits or similar tests as Landlord may
deem reasonably necessary and the cost and expense of such environmental audits
and or tests incurred by Landlord shall be paid by Tenant as additional rent
hereunder with the next installment of Rent and;
f. Tenant shall protect, indemnify and hold Landlord harmless from all costs, fines,
claims, demands, actions, proceedings, judgments and damages (including court
costs and reasonable attorneys' fees) resulting from or arising out of any breach or
nonperformance by Tenant of the representations and warranties contained in this
Section including but not limited to the cost of removal and /or remedy of any
disposal, discharge, release or contamination of or by Hazardous Substances on or
about the leased premises, building or the project.
It is expressly acknowledged by Tenant that all of the terms, covenants and conditions
of this Section pertaining to Environmental Regulations including but not limited to the
indemnities herein provided shall survive the termination of this Lease.
30. Transfer of the Project to the City of Hopkins. In the event of a transfer of the
Building to the City of Hopkins, Landlord may assign its interest in this lease to the City
of Hopkins and in that event Landlord shall be relieved of all liability under this lease
accruing from and after the date of assignment, provided Landlord has obtained the
written agreement of the City of Hopkins to assume and carry out all of the covenants
and obligations of the Landlord hereunder.
31. Estoppel Certificates. Tenant agrees at any time and from time to time, but no
more than two (2) times per calendar year, upon not less than ten (10) days' prior
written notice by Landlord, to execute, acknowledge and deliver to Landlord or a party
designated by Landlord a statement in writing (I) certifying that this Lease is unmodified
and in full force and effect, or if there have been modifications, that this lease is in full
force and effect as modified and stating the modifications, (ii) stating the dates on
which the Rent and other charges hereunder have been paid by Tenant, (iii) stating, to
the best of Tenant's knowledge, whether or not Landlord is in default in the
18
performance of any covenant, agreement or condition contained in this lease, and, if
so, specifying each such default, (iv) agreeing that Tenant shall no pre -pay any rent
more than thirty days in advance, and (v) such other matters relating to this lease as
may reasonably be requested. Any such statement delivered pursuant hereto may be
relied upon by any owner of the project, any prospective purchaser of the project, any
mortgagee or prospective mortgagee of the project or of Landlord's interest, or any
prospective assignee of any such mortgagee.
32. Subordination. Without the necessity of any additional document being executed
by Tenant for the purpose of effecting a subordination, this lease shall be subject and
subordinate at all times to the lien of any mortgage which may now or hereafter
encumber the Project or Landlord's interest or estate therein; provided, however, that if
the Landlord, any mortgagee or holder of any mortgage elects to have Tenant's interest
in this Lease be superior to any such mortgage, then by notice to Tenant, this lease
shall be deemed superior, whether this lease was executed before or after said
mortgage. Notwithstanding the foregoing, Tenant covenants and agrees to execute
and deliver within ten (10) days of written request therefore any certificate or
subordination agreement evincing such subordination or superiority of this lease as
may be reasonably requested by Landlord or any mortgagee, provided, however, that
any subordination by Tenant shall only be effective if Tenant has first received a non -
disturbance agreement from the mortgagee, by which the mortgagee shall agree not to
disturb Tenant's possession (provided Tenant is not in default under this lease) and
shall agree to honor the terms of this lease. Tenant further agrees that in the event
that any proceedings are brought for the foreclosure of any mortgage, Tenant shall
attorn to the purchaser at the foreclosure sale and recognize such purchaser as the
Landlord under this lease, if requested to do so by such purchaser, provided that said
purchaser agrees that Tenant's possession of the leased premises shall not be
disturbed so long as Tenant shall continue to perform all of the covenants and
conditions of this lease, in which case Tenant's obligations to perform such covenants
and conditions shall not be in any way diminished thereby.
33. Concessions; Coatroom; Display Cases. Landlord and Tenant agree that
Tenant shall be permitted to sell at Tenant's events items such as food, beverages,
souvenirs, flowers, etc. to the public per Landlord's catering policy for the facility.
Landlord and Tenant agree that Tenant shall be permitted to operate the coatroom in
the facility at all events of Tenant and of the other major tenants of the facility, i. e.,
Child's Play Theatre Company and Hopkins School District ISD 270. Tenant agrees to
operate the coatroom for gratuities only, and agrees not to charge the public for use of
the coatroom at any time. Landlord agrees that Tenant may retain the proceeds from
Tenant's operation of the coatroom.
19
Beginning January 1, 1998, and in keeping with established City of Hopkins policies,
Tenant agrees to pay Landlord a monthly fee equal to ten percent (10 %) of all Tenant's
proceeds from the coatroom during the previous month, for the duration of the lease.
Tenant may elect to terminate its operation of the coatroom concession under these
terms either by notice to Landlord's agent or by non - payment of the coatroom
concession fee stated herein. Landlord reserves the right to terminate this coatroom
concession for just cause.
Tenant's use of the gallery shall include the two display cases in front thereof, except
that Tenant agrees to provide one display case for community festivals, such as the
Raspberry Festival.
34. Notices. All notices or other communications hereunder shall be in writing and
shall be hand delivered or sent by first class United States Mail, postage prepaid, or by
a nationally- recognized overnight delivery service, to the following address:
Landlord: City of Hopkins
Attention: City Manager
10101 First Street South
Hopkins, MN 55343
Tenant: Hopkins Area Arts Association
P. 0. Box 5184
Hopkins, MN 55343
If notice is given by mail or by overnight delivery service, such notice shall be deemed
to have been given on the day following the date of mailing.
20
The Landlord and the Tenant have executed this lease agreement on the day and year
first written, each party retaining an executed copy for its records.
Tenant: Landlord:
Hopkins Area Arts Association
P. 0. Box 5184
Hopkins, MN 55343
By By
Its President Its Mayor
By By
Its Vice - President Its City Manager
By
Its Treasurer
Date: Date:
21
City of Hopkins
1010 First Street South
Hopkins, MN 55343
EXHIBIT A
LEGAL DESCRIPTION
HOPKINS CENTER FOR THE ARTS
Lots 10, 11, 12, 13, 14, 15, Block 70 in West Minneapolis Second Division
according to the map or plat thereof on file and of record in the office of the
Register of Deeds in and for Hennepin County, Minnesota.
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EXCLUSIVE USE SPACES AND TIMES AND ADDITIONAL HOURS USAGE
FOR CHILD'S PLAY THEATRE CO., SCHOOL DISTRICT, AND HAAA
This exhibit summarizes the rights to exclusive use of certain spaces, or certain spaces
only at certain times, of the three major tenants of the Hopkins Center for the Arts.
Exclusive Use Spaces
Child's Play Theatre Company will have exclusive, year -round use of the following
spaces:
Child's Play Theatre Company Offices Box Office
Scene Shop Costume Shop
Child's Play Theatre Company Storage Room
Exclusive Use Times
EXHIBIT C:
I. Hopkins School District 270 will have exclusive use of the Art Classroom
year- round, except for the Additional Hours allocated to HAAA as shown below.
II. The Hopkins Area Arts Association will have exclusive use of the Gallery
for 24 weeks to be specified and for an additional 3 weekends to be specified.
The Hopkins Area Arts Association will have exclusive use of the Multi -Use
Performance Hall for three weeks in Feb. -April and three weeks in Sept. -Oct.
to be specified.
Exhibit C Page 1
III. Child's Play Theatre Company will have exclusive use of the following spaces
and times:
a. Space for preliminary rehearsals every day Monday through Friday from
3:00 p.m. to 10:00 p.m. and every Saturday from 8:00 a.m. to 5:00 p.m.
This space may be any one of the following spaces on a given day:
Priority
Rehearsal /Community Room first
Dance Studio second
Theater third
Multi -Use Performance Hall fourth
The City shall provide Child's Play with the highest priority space for
preliminary rehearsals on a given day as scheduling considerations permit.
The City may not provide Child's Play with a space for preliminary
rehearsals on a given day if that space is reserved for another user unless
that user releases that space in writing.
b. The Theater for final rehearsals and performances as needed by Child's
Play throughout its 36 -week season, with runs planned as follows:
6 weeks during Sept. - Oct.
9 weeks during Nov. - Dec.
6 weeks during Jan. - Feb.
7 weeks during March -April
8 weeks during May -June
Child's Play will submit to the City each year an Activity Schedule showing
when its final rehearsals and performances will be. For any other times
during Child's Play's 36 -week season, other users may request that Child's
Play release theater time. To the extent that such requests do not interfere
with its core program of final rehearsals and performances, Child's Play will
accommodate such requests.
c. The Multi -Use Performance Hall for performances as follows:
8 weeks during Jan. - March
8 weeks during June - August, except for Tuesday, Wednesday and
Thursday of the week before the third weekend in July.
d. Conference Room for monthly board meetings in the evenings and weekly
staff meetings during the day.
Exhibit C Page 2
Additional Hours
The Landlord (City of Hopkins) shall have first priority in scheduling the Additional
Hours indicated for the City in the table below.
In addition to the exclusive use times summarized above, the major tenants have
Additional Hours for their respective use in each of the spaces:
Multi -Use Rehearsal! Dance Art Conference
Theater Performance Community Studio Gallery Classroom Room
City of
Hopkins 146 380 206 254 0 0 0
Child's Play 0 184 180 180 0 0 509
District 270 1,344 1,000 1,344 2,900 1,344 0 312
HAAA 16 18 40' 0 244 180 100
Total 1,506 1,582 1,770 3,334 1,588 180 921
Note: The total annual hours available in a space are 365 x 16 = 5,840.
Additional Hours are scheduled via the Meet - and - Confer process.
Exhibit C Page 3
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1 Century 11/2" Lako 400w
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6 CenturyrSenop 500w
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2 Sean Shop Vick 5.25 hp
1 Dewslt41 /2" angle grinder
1 Milwaukee corded saewgun
2 Arrow $mtdc tiepins
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3 Telex Control Bozos
2 Realists PZM Microphones
3 Crown 30GPB PZM Mkraphenes
1 Telex WT 25 Body sop
2 Realistic Cardiold Dynamfe Microphones
1 Altec Lansing 8 Channel Seurat Mixer
1 12- Channel Diamond Pro 124 Stodio'Mt Mr Mien
1 BGM Professional Pbwet Arl 2800
2 Home made 3 -way Speakers
2 Pevey 5-Way HSHSpeakets
1 JVC Stereo Caseates Deck'D -W201
1 Technics Compact Disc Flayrt 81.P1
1 Teac X3 Reel eel Player tetorder
1 AB International Precedent Sian 600A'&tip
1 TOA Powered Mixer Mx -101''
1 Telex Wireless Microphone pass •
1 Telex US -2003 Master Cbamul Spinet Bost
1 Telex 2.Channel Porter Supply PS " 21.
1 RCA Tape Deck Radio RA71124A
1 Sharp Stereo Cassette Deck 17-10
1 American 1)13 Positron Remora Foot Switch
1 Amertcan Of 4- Channel Chet Controller
2 Electrovoice 0614 microphone;
1 Sears l /2 "electric drill
1 Sears Rardlal arm env
1 Wagner haat gun
1 Makita Cordless Drill
1 B&D 3/8" electric drill
1 Brother Sewing Machtrw
1 Delta 1 /2" Tabletop drill pew
1 6" Belt /9" disc Sander "True Snyder" 3/4hp
1 7 - 1 / Skill 24 /4'bp circular sow
1 Sears Reciprocating Saw
1 B$tD 10" miter saw
2 OH 1/4" Crown Prismatic Stapler
1 Dewalt cordless sesewgun
1 C411 qut spray pan
2 8" step ladders
Notes: 1. Additional lighting,sound & shop equipment will be purchased in October 1997.
2. New purchases do not include equipment purchased with designated $130.000 funds Gee section 361•
+ nVl.� VL
:al
• 48
EXHIBIT E: CRITERIA FOR ALLOCATION OF DATES
If the meet - and - confer process fails to resolve all scheduling conflicts among the major tenants
in the Hopkins Center for the Arts (Child's Play Theatre Company, Independent School District
270, Hopkins Area Arts Association), then the Landlord shall apply the following criteria to
resolve the conflicts. The Landlord's agent in this regard shall be the facility manager for the
Hopkins Center for the Arts.
1. Relevance to the Arts. Activities which are relevant to the arts and /or cultural education
receive a higher score than those that are not. Scoring scale:
Relevant to the Arts Not Relevant to the Arts
10 9 8 7 6 5 4 3 2 1
2. Precedence. Activities will be scored on whether and to what extent there is a positive
precedent for that specific user group's activity. There is precedent for the activity if it was
part of the Center's schedule in the prior year(s). The longer the user group has used the
Center, the stronger the precedent is for that use. Activities that have worked well for the
user group and for the Center have a positive precedent. Scoring scale:
Prior Problem -Free Use No Prior Use /Problematic Use
5 4 3 2 1
3. Reasonableness. Activities will be scored on the extent to which the request for
time and space is proportional to the size of the program and reasonable for the
age and programmatic needs of the people served. Scoring scale:
Proportional /Reasonable Disproportionate /Unreasonable
5 4 3 2 1
4. Number of People Served. The activity that serves the most people will have
priority over other activities, all other things being equal. Scoring scale:
Large Group Served Small Group Served
5 4 3 2 1
5. Residency. Activities that serve residents of the City of Hopkins and/or of Hopkins School
District 270 have priority over those that do not. Activities that serve businesses and/or
their employees located in the City of Hopkins and /or Hopkins School District 270 have
priority over those that do not.
Many Residents Served No Residents Served
5 4 3 2 1
6. Financialfln -kind Investment in the Center. User groups which have made or are making
financial and /or in -kind contributions to the Center, including rental fees, lease payments
and volunteer time, have priority over groups that have not contributed.
Significant Contributions Made No Contributions Made
5 4 3 2 1
Meet and Confer Criteria.doc
EXHIBIT F
STATE GRANT REQUIREMENTS
Section 2.03 Operation of the Facility. The Public Entity shall operate
the Facility, or cause it to be operated, as a center for arts and cultural
performance and education, or for such other use as the legislature may from
time to time designate, and may enter into Use Contracts with Lessees to so
operate the Facility; provided that such contracts have been approved, in
writing, by the State Entity and the Finance Commissioner. The Public Entity
shall also annually determine that the Facility is being so used, and shall supply
a statement, sworn to before a notary public, to such effect to both the State
Entity and the Finance Commissioner.
With respect to any program which will be operated in the Facility, the Public
Entity covenants with, and represents and warrants to, the State Entity that (1) it
has the ability and a plan to fund the program which will be operated in the
Facility, (ii) it demonstrated such ability and supplied such plan to the State
Entity prior to the execution of this Agreement, and (iii) it will not enter into a Use
Contract with a Lessee unless such Lessee has demonstrated to the State Entity
that it has the ability and a plan to fund the program which Lessee intends to
operate in the Facility.
Section 3.02 Preservation of Tax Exempt Status. In order to preserve the tax exempt
status of the G.O. Bonds, the Public Entity agrees that during the time period that any G.O. Bonds
are outstanding and unpaid:
D. It will, upon direction from the Finance Commissioner. take such actions and
furnish such documents as the Finance Commissioner determines to be necessary to ensure
that the interest to be paid on the G.O. Bonds is exempt from federal taxation, which such
action may include either; (i) compliance with proceedings intended to classify the G.O.
Bonds as a "qualified bond" within the meaning of IRC § 141(e), (ii) changing the nature
and/or terms of the Use Contract so that it complies with Revenue Procedure 93 -19, or (iii)
compliance with Internal Revenue Code provisions, regulations, or revenue procedures which
amend or supersede the foregoing.
Section 3.03
G. If any monies are to be paid to the Public Entity under the Use Contract, then it must
contain a provision requiring that each and every party thereto shall, upon direction by the
Finance Commissioner, take such actions and furnish such documents to the Finance
Commissioner as it determines to be necessary to ensure that the interest to be paid on the
G.O. Bonds is exempt from federal income taxation,