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CR 11-117 Elks Club Parking LotCITY OF • cap- NOPKINS December 1, 2011 Council Report 2011-117 Approve Parking Lot Lease Agreement between the City of Hopkins and the Elks Club, Lodge No. 2221 for the Elks Club use of the parking lot at 815 1St Street South Proposed Action. Staff recommends adoption of the following motion: Move that Council authorize the Mayor and City Manager to sign the parking lot lease agreement between the City of Hopkins and the Elks Club Lodge #2221 regarding the Elks Club use of the city owned parking lot at 815 1" Street South. Overview. This parking lot lease outlines the responsibilities and liability coverage for the Elks Club's use • of the 8th Avenue North parking lot on the old Park Nicollet site. It basically allows Elks Club patrons to use this lot and frees the City of any maintenance or liability exposure for this public use of the parking lot. The use is temporary as it is anticipated that the developer will start work on this site next spring. As such, the lease agreement expires on May 1, 2012 - the rent is $1/year. The City Attorney prepared the lease agreement. Supporting Information • Proposed Lease Agreement Steven . Stadler Public Works Director F Financial Impact: $ 0 Budgeted: • PARKING LOT LEASE This Parking Lot Lease ("Lease") is made and entered into by and between the Landlord and Tenant identified in Paragraph 1 of this Lease, effective December 7, 2011. 1. Parties. The parties to this Lease are the City of Hopkins, a Minnesota municipal corporation, hereinafter called "Landlord," and Hopkins Lodge No. 2221 of the Benevolent and Protective Order of Elks of The United States of America, a Minnesota nonprofit corporation, hereinafter called "Tenant." 2. Demise and Premises. Landlord hereby leases to Tenant, and Tenant leases from Landlord, for the Term stated in Paragraph 3 of this Lease, the non-exclusive use of that part of the parking lot, driveway and access improvements (collectively "Parking Improvements") owned by Landlord and located on Landlord's real property at: 815 — lst Street South, Hopkins, Minnesota, • outlined and designated on Exhibit A attached hereto and incorporated herein by reference. The • Parking Improvements and the land on which they are located are herein referred to as the "Premises." 3. Term. This Lease shall commence on the 7th day of December, 2011, and shall terminate on the 1 st day of May, 2012, unless earlier terminated as hereinafter provided. Tenant shall be entitled to the use of the Premises for the purposes stated herein during the entire term of this Lease. Either party may terminate this Lease on 90 days written notice provided in accordance with the provisions of Section 13, below. 4. Rent. In consideration of Landlord's agreement to lease the Premises to Tenant, and in lieu of payment of rent, Tenant agrees to pay Landlord $1.00 per year, due and payable on the date of signing of this lease, and on the I" day of January of each subsequent year, until this lease expires. Hopkins.civil/Elks/Elks- Parking Lot Lease.doc I 0 5. Use of Premises. Tenant shall use the Premises only for public parking purposes for the parking of vehicles used by persons using the Tenant's adjacent property. Landlord retains the right to use the entire Premises and all of the Parking Improvements for parking purposes and other purposes, provided Landlord's use of the Premises for such other purposes shall not unreasonably interfere with Tenant's permitted use of the Premises as described in this Lease. Such use of the Premises by Landlord shall be in common with Tenant's permitted use under this Lease. 6. Maintenance of Premises. Tenant shall be responsible for all sweeping and snow removal on the Premises. If damage is caused to the Premises or the Parking Improvements by Tenant or persons using the Parking Improvements pursuant to this Lease, Landlord may repair such • damage, and Tenant shall reimburse Landlord for all reasonable costs and expenses incurred in completing such repairs. Notwithstanding the foregoing, Landlord shall not be required to perofrm any maintenance of the Premises during the term of this Lease. Landlord shall have no obligation to provide lighting or security for the Premises or the Parking Improvements. 7. Alterations. No alteration or modification or improvement shall be made by Tenant in or to the Premises without the prior consent of Landlord in writing, which consent shall not be unreasonably withheld. 8. Destruction of Premises. If the Premises or the Parking Improvements thereon shall be damaged or destroyed by any cause so as to render the Parking Improvements unfit for their intended use, Landlord may undertake repairs or may terminate this Lease immediately. The provisions of this paragraph 8 shall not be interpreted to relieve Tenant from liability for damage caused to the Parking Improvements resulting from the fault or neglect of Tenant or any person for whose conduct 0 Tenant may be liable. Hopkins.civil/Elks/Elks- Parking Lot Lease.doc 2 9. Subleasing and Assi>?nment. Tenant shall not assign its rights under this Lease or sublet the Premises without the prior written consent of Landlord, which consent shall not be unreasonably withheld. Any permitted subletting or assignment shall not relieve Tenant of Tenant's obligations under this Lease, all of which shall survive any subletting or assignment. 10. Non liability of Landlord; Indemnity of Landlord by Tenant. This Lease is made on the express condition that Landlord shall be free from all liabilities, claims, obligations and damages for or by reason of any injury or injuries to any person, persons or property of any kind of nature whatsoever resulting from the use of the Premises by Tenant, or any person using the Premises pursuant to this Lease, from any cause or causes whatsoever during the term of this Lease, whether occasioned by any occupancy or use of the Premises or any activity carried on by the Tenant, or by any person using the Premises pursuant to this Lease. Tenant further covenants and agrees to • indemnify, save, hold harmless and defend Landlord from all liabilities, claims, obligations, • damages, charges, expenses and costs (including Landlord's reasonable attorney's fees) arising out of or resulting from the use of the Premises by Tenant, or any person using the Premises pursuant to this Lease, including, but not limited to, the liabilities, claims, obligations and damages referred to the foregoing provisions of this paragraph. 11. Insurance. Tenant shall, during the term of this Lease, maintain comprehensive liability insurance coverage insuring against personal injury and property damage occurring as a result of or in connection with Tenant's use of the Premises in a single limit amount of not less than $1 million for personal injury or death -and not less than $500,000 for property damage. Such insurance shall name Landlord as an additional insured, and Tenant shall provide Landlord with certificates evidencing Tenant is maintaining such insurance. Such insurance shall also require the insurer to Hopkins.civil/Elks/Elks- Parking Lot Lettse.doc 3 give Landlord at least 30 days' prior written notice the cancellation or termination of the insurance policy. No provision of this paragraph 11 or this Lease shall be deemed to waive, limit or reduce any common law or statutory immunity from liability that may be available to Landlord, all such immunities being expressly reserved by Landlord. 12. Default and Termination. a) It shall constitute an Event of Default under this Lease if Tenant shall violate or fail to perform any of the terms, covenants or conditions of this Lease and such default shall continue for ten (10) days after notice from Landlord, unless such default cannot be cured in the exercise of reasonable diligence within said ten (10) day period, in which event Tenant shall be allowed such additional time as is needed to cure such default with all reasonable diligence. • b) If an Event of Default shall have occurred and be continuing, Landlord may at its sole option upon thirty (30) days prior written notice to Tenant terminate this Lease, provided this Lease shall not terminate if such default is cured within such thirty (30) day time period. Neither the passage of time after the occurrence of the Event of Default nor exercise by Landlord or any other remedy with regard to such Event of Default shall limit Landlord's right under this Paragraph 12. b). c) If an Event of Default shall have occurred and be continuing, whether or not Landlord elects to terminate this Lease, Landlord may enter upon and repossess the Premises (said repossession being hereinafter referred to as "Repossession") in accordance with law, and may remove Tenant and all other persons and property therefrom. Provided Landlord has not terminated this Lease, such Repossession shall not relieve Tenant of its liabilities and obligations under this • Lease, all of which shall survive Repossession. Hopkins.civil/Elks/Elks- Parking Lot Lease.doc 4 .'7 d) Upon termination of this Lease, Tenant shall vacate the Premises, and remove all personal property, if any, belonging to Tenant therefrom. C) In the event of any litigation or arbitration proceeding to enforce the provisions of this Lease, the prevailing party in such proceeding, in addition to any damages awarded to such party, shall be entitled to an award of such prevailing party's reasonable attorneys' fees, together with the actual costs of maintaining such proceeding. 13. Notices. All notices or other communications provided or required by this Lease shall be in writing and shall be given to the other party as follows: To the Landlord: City of Hopkins Attn: Public Works Director 1010 First Street South Hopkins, MN 55343 • To the Tenant: Hopkins Lodge No. 2221 of the Benevolent and Protective Order of Elks of The United States of America 30 — 8th Avenue South Hopkins MN 55343 All notices shall be personally delivered to the individual identified above or sent by certified United States snail, return receipt requested. Personally delivered notices shall be effective as of the date of delivery. Mailed notice shall be effective two (2) days after the date of mailing. Either party may change such party's address for notice purposes by written notice to the other as provided in this Paragraph 13. 14. Applicable Law. This Lease and the rights and obligations of the parties hereunder shall be interpreted in accordance with the laws of the State of Minnesota. 15. Amendment Modification or Waiver. No amendment, modification or waiver of any condition, provision or term of this Lease shall be valid or of any effect unless made in writing, • Hopkins.civil/Elks/Elks- Parking Lot Lease.doc 5 • signed by the party or parties to be bound or a duly authorized representative, and specifying with particularity the extent and nature of such amendment, modification or waiver. Any waiver by any party of any default of another party shall not affect or impair any right arising from any subsequent default. Nothing herein shall limit the remedies and rights of the parties hereto under and pursuant to this Lease. 16. Entire Agreement. This Lease contains the entire understanding of the parties hereto with respect to the transactions described herein and supersedes all prior agreements and understandings between the parties with respect to such subject matter. No representations, warranties, undertakings or promises, whether oral, implied, written or otherwise, have been made by either party to the other unless expressly stated in this Lease or unless mutually agreed to in writing • between the parties after the date hereof, and neither party has relied on any verbal representations, agreements or understandings not expressly set forth herein. • 17. Captions, Headings or Titles. All captions, headings or titles in the paragraphs or sections of this Lease are inserted for convenience of reference only and shall not constitute a part of this Lease or a limitation of the scope of the particular paragraphs or sections to which they apply. 18. Covenants of Landlord. Landlord covenants it has the right to make this Lease for the term stated herein and covenants that if Tenant shall pay the rent and perform all of the covenants, terms and conditions of this Lease to be performed by Tenant, Tenant shall, during the term of this Lease, enjoy the use of the Premises in accordance with the terms of this Lease without interference or hindrance from those claiming through or under Landlord. 19. Parking Enforcement. During the term of this Lease, Landlord may enforce such parking restrictions as Landlord shall deem appropriate and in accordance with the terms of this Hopkins.civil/Elks/Elks- Parking Lot Lease.doc 6 0 Lease in a manner consistent with the parking enforcement procedures followed by Landlord for other publicly -owned parking lots in the City of Hopkins. IN WITNESS WHEREOF, the undersigned Landlord and Tenant have executed this Lease Agreement effective as of the day of , 2011. LANDLORD: TENANT: CITY OF HOPKINS HOPKINS LODGE NO. 2221 OF THE By Its By Its i Hopkins.civil/Elks/Elks- Parking Lot Lease.doc VA BENEVOLENT AND PROTECTIVE ORDER OF ELKS OF THE UNITED STATES OF AMERICA By Its