CR 92-90 Rental Agreement - Clock Tower•
April 15, 1992
Proposed Action.
Overview
Thomas K. Harmenin
Community Dev
\ t Y
0
RENTAL AGREEMENT - CLOCK TOWER
Council Report 92 -90
Staff recommends adoption of the following motion: Move to
authorize the Mayor and City Manager to enter into a rental
agreement with Olson Building Partnership to allow for the
storage of equipment relating to the operation of the clock
tower.
The result of this action will provide the City a means by
which to store the operational equipment for the clock tower
in a convenient, cost effective location.
The construction of the clock tower in the Mainstreet Plaza
requires that the City find a location to store mechanical,
electrical and operating equipment for the operation of the
clock tower and music systems. This storage area should be
conveniently located in a secure area, out of the elements
in a climate controlled location. The most obvious location
to store the equipment is the Olson Building directly to the
west of the plaza. Staff did look at other alternatives for
storing the equipment, including other buildings, or the
construction of a small enclosure in the plaza. These
alternatives did not prove to be cost effective or
appropriate.
The proposed agreement is structured as a year to year
rental arrangement. Staff had proposed a perpetual "right
of access" agreement which would have provided the City with
a long term assurance that it could keep the equipment in
the proposed location. However, this approach was not found
acceptable to the owner of the building.
The agreement was drafted by the City attorney.
Primary Issues to Consider
What are the specifics of the rental agreement?
Supporting Documents
o Analysis of issues
o Alternatives
o Draft of rental agreement
ent Director
Primary Issues to Consider
CR92 -90
Page 2
o
What are the specifics of the rental agreement?
Attached is a draft of the rental agreement to be
entered into between Olson Building Partnership and the
City of Hopkins. Highlights of the agreement include:
o The rent is established at $1 per year.
o The City is renting basement space from the
building owner for the purpose of installing,
storing, operating, servicing, and maintaining
certain mechanical, electrical and operating
equipment necessary for the operation of the clock
tower and music system.
o The agreement allows the City to establish an
electrical service between the clock tower and the
equipment and obtain access to the property as
necessary to service and maintain the equipment on
48 hours notice.
o The City is responsible for insuring the
equipment. The building owner is not held liable
for any damage that may be caused to the
equipment.
o The City agrees to indemnify and hold harmless the
building owner for any claims or damages arising
out of the installation, storage, operation, or
service and maintenance of the equipment.
o The rental agreement shall be renewable on an
annual basis unless terminated by either party
upon 60 days written notice.
o The City shall be responsible for repairing any
damage to the building owner's property that may
be caused during installation of the equipment.
The agreement originally proposed by staff would have
provided a perpetual "right of access" agreement which would
have provided the City with a long term assurance that it
could keep the equipment in the proposed location. However,
this approach was not found to be acceptable to the owner of
the building. Although the rental agreement may not be the
most ideal situation for the City, from the perspective of
having a guaranteed long term arrangement in place, it is
staff's feeling that the agreement should be accepted due to
the lack of or cost of other alternatives. For example, it
has been estimated that it would cost approximately $4,000
to allow for the storage of the equipment in the Jak
Antiques building at 914 Mainstreet, which the City owns.
Alternatives
CR 92 -90
Page 3
o Approve staff's recommendation
o Approve staff's recommendation with modifications to
the agreement. This may require renegotiation with
Olsen Building partnership.
o Deny staff's recommendation and direct that staff find
an alternate location for the equipment.
of
RENTAL AGREEMENT
THIS AGREEMENT is made and entered into this day
, 199 , by and between OLSON BUILDING
PARTNERSHIP, a Minnesota general partnership, Lessor, and the
CITY OF HOPKINS, a municipal corporation under the laws of
the State of Minnesota, Lessee.
WHEREAS, Lessor is the owner of real property in
Hennepin County, Minnesota, legally described as Exhibit "A"
( "Lessor's Property "), which is incorporated herein; and
Lessee is the owner of real property in Hennepin County,
Minnesota, legally described on Exhibit "B" ( "Lessee's
Property ") which is incorporated herein. Lessor's Property
is improved with an office /retail building (the
"Improvements "). Lessee's Property adjoins Lessor's property
and the Lessee and Lessor have agreed upon rental terms as
described hereafter.
NOW, THEREFORE, in consideration of One Dollar ($1.00)
and other good and valuable consideration the parties hereto
agree as follows:
1. Lessee shall rent from Lessor certain space within
Lessor's building as specifically described on Exhibit C. for
the purpose of installing, storing, operating, servicing and
maintaining certain mechanical, electrical and operating
equipment' ( "Equipment ") necessary in the operation of a
clocktower and music system or carillon ( "Clocktower ").
During the term of this Lease, Lessee shall be entitled to:
a. Establish electrical service between the Clocktower and
the Equipment including but not limited to the right to
install any necessary electrical conduit through the
Improvements;
b. Install service and maintain an electrical metering
system separate from the existing electrical service;
c. Access to Lessor's Property and the Improvements as
necessary to service and maintain the Equipment.
Except in the case of emergencies, Lessor shall be
entitled to forty -eight (48) hours notice prior to
Lessee's entry upon Lessor's Property.
The above rights are meant to be illustrative only and not
inclusive of all rights granted under this Agreement.
2. Lessee shall assume and be responsible to insure
its Equipment and Lessor shall not be liable for any damage
caused to the Equipment.
3. Lessee agrees to indemnify and hold harmless Lessor
from and against any and all claims and damages arising out
of the installation, storage, operation, service and
maintenance of said Equipment on Lessor's Property.
4. This Rental Agreement shall be for a period of one
(1) year and unless terminated by either party upon sixty
(60) days written notice to the other, this Rental Agreement
shall automatically renew upon the end of each annual term
for an additional one (1) year period.
5. Lessee shall repair damage to Lessor's Property
caused during installation of Lessee's Equipment in a good
and workmanlike manner subject to review and approval of
Lessor.
6. Installation of said Equipment shall be performed
in accordance with the diagram contained on Exhibit B.
subject to inspection and approval for such installation by
Lessor.
This Agreement shall inure to and be binding upon each
of the parties, their successors and assigns.
IN WITNESS WHEREOF, the parties have hereunto set their
hands the day and year first above written.
STATE OF MINNESOTA)
) SS
COUNTY OF HENNEPIN)
STATE OF MINNESOTA)
) SS
COUNTY OF HENNEPIN)
this
By
Its
OLSON BUILDING PARTNERSHIP, a
Minnesota general partnership
CITY OF HOPKINS, a municipal
corporation
By
Its
By
Its
The foregoing instrument was acknowledged
this day of ,
by of Olson
Partnership, a Minnesota general partnership, on
the partnership.
Notary Public
before me
199
Building
behalf of
The foregoing instrument was acknowledged before me
day of
by and
199 ,
the and of City
of Hopkins, a municipal corporation under the laws of
Minnesota, on behalf of the municipal corporation.
Notary Public