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CR 11-011 Stages Theatre Company Lease Agreement for the Hopkins Center for the Arts• • -4m 02/15/2011 City of 11oPkU18 Council Report 2011-011 Stages Theatre Company Lease Agreement For the Hopkins Center for the Arts Proposed Action Staff recommends adoption of the following motion: Move to approve the lease agreement between Stages Theatre Company and the City of Hopkins for the leasinq of the Hopkins Center for the Arts. Overview Stages Theater Company's mission states, "Stages Theatre Company is committed to the enrichment and education of children and youth in a professional theatre environment that stimulates artistic excellence and personal growth". The Hopkins Center for the Arts is Stages primary facility to carry out this mission. In a letter dated May 22, 2009, Stages formally requested that the negotiations begin for their next Arts Center lease. Since this written notice a methodical process of lease negotiations and exploration with Stages of operational changes or partnerships has been undertaken. The goal of city staff in this process has been to present a final lease to the City Council that serves to retain a strong major tenant while maintaining the ability to effectively serve the community. The lease with Stages Theater Company is an important asset to the Arts Center as it relates to the Center's mission of providing arts to the community and from a financial perspective of securing an established successful major tenant. Attached you will find a copy of the Hopkins Center for the Arts Stages Theater Company lease for Council approval. Primary Issues to Consider Does this lease meet the needs of the Arts Center and Community? Does the lease meet the needs of the Stages Theatre Company? Are there any major changes in this lease that differ from the previous lease? Supportinq Information • City of Hopkins & Stages Theatre Company Lease Agreement for Hopkins Center for the Arts ,r Jay R. Strachota Facilities Director Financial Impact: $153,550 revenue year one of lease Budgeted: Y/N Source: Related Documents (CIP, ERP, etc.): Notes: Lease contains a 3% annual multiplier on the lease rate for term of lease Council Report 2011-011 Page 2 Does this lease meet the needs of the Arts Center and Community? This lease provides the Arts Center with an established successful tenant who is a proven partner with the city and community. The lease provides the flexibility needed to further develop relationships with community groups, individuals, and business users, to utilize the facility in a way that showcases the Arts Center as a community focal point, while sustaining the financial integrity of the facility. As a result of this lease, community members are able to conveniently take advantage of Stages Theatre Company's performances and educational opportunities at the Arts Center. Stages presents 6-8 performance runs per year as well as offering acting conservatories, summer and winter theater workshops, and special events. The use of the Art Center for these types of activities has grown over the past 13+ years and continues to grow. Does the lease meet the needs of the Stages Theater Company ? The Stages Board of Directors approved this lease on January 31, 2011. Are there any major changes in this lease that differ from the previous lease? In structure, this new lease differs very little from the previous lease. The way in which time & space is allocated, the services provided as a landlord, and the landlord/tenant basic relationship language has been changed very little. If this type of language has been changed it is primarily to more accurately reflect how operations are carried out day-to-day after 13+ years of experience. The only substantive change to this type of • language occurs in Section 8B. Previously, if Stages wished to merge with another organization, the City had the right to withhold consent with "unqualified discretion". In the new lease the City shall not unreasonably withhold consent from Stages so long as the merging performing arts entity has a substantially similar mission and target audience to Stages at the signing of this lease. In regards to space & time rights, the following changes were negotiated and more accurately reflect the recent history of usage by Stages in the spaces of the Hopkins Center for the Arts: • Stages rights in the Mainstage Theater have been increased from 36-40 weeks with the option to purchase 2 additional weeks. • Stages rights to the Multi -Use Performance Hall (JC Studio) have been decreased from 16 — 14 weeks with the option to purchase two additional weeks. • Additional Hours rights were added for the Art Classroom on the condition the hours are only available after the Art Center's first commitment to the Hopkins School District in this space. • Additional Hours in the all support rooms were adjusted to accurately reflect current history. • Exhibit C, Sharing Income Lease Provisions was added to help protect the rights of the Art Center's frequent and large volume users, and to record how sharing of revenue has come to be in practice. 40 Council Report 2011-011 . Page 3 In regards to the lease payment amount, the lease payment in the new lease continues to increase from where it ends in the previous lease. The new lease payment multiplier, (the percentage by which the lease payment increases each year) is 3%, whereas it was 4% in the previous lease. Stages lease payment has increased by 4% each year for 15 years (end of first lease). So even though the multiplier will decreased a percentage point the actual revenue produced as a result of the multiplier will be significant due to the growth of the lease payment at 4% compounded over the years. Decreasing the "multiplier" was a major negotiation point of Stages in that they could not foresee that they could sustain themselves financially if the lease payment continued to grow and compound at 4%. Attorneys from both the City and the Stages have reviewed the lease document and staff has followed their recommendations in arriving at the attached final lease document. • • �J LEASE AGREEMENT BETWEEN CITY OF HOPKINS AND STAGES THEATRE COMPANY • DATED February 15, 2011 • • TABLE OF CONTENTS Section Page No. 1. DEFINITIONS 1 2. PREMISES 2 A. EXCLUSIVE USE SPACES 2 B. EXCLUSIVE USE TIMES 2 (i) Preliminary Rehearsal Activities 2 (ii) Final Rehearsal Activities 3 (iii) Performance Activities 3 (iv) Conference Room Activities 4 (v) Fund Raising Activities 4 C. ADDITIONAL HOURS USAGE BY TENANT 5 D. ADDITIONAL HOURS IN ARTS CLASSROOM 5 E. ADDITIONAL WEEK IN THE THEATER BY TENANT 5 • F. SHARED USE OF BUILDING 6 G. SCHEDULING AND CONFLICTS 6 H. RELEASE OF SPACES BY TENANT 7 1. ENTERPRISE EVENTS 8 J. FLEXIBLE USE BY TENANT 8 3. TERM 8 4. RENT 8 5. CALCULATION OF RENT 8 6. SERVICES AND UTILITIES 9 7. USE OF PREMISES, PARKING 10 8. ASSIGNMENT AND SUBLETTING 11 • 9. SUBORDINATION 12 10. SALE OF THE PROJECT/ESTOPPEL CERTIFICATES 13 11. INSURANCE 13 12. FIRE OR OTHER CASUALTY 14 13. CONDEMNATION 15 14. ALTERATIONS AND SIGNS 15 15. WAIVER OF SUBROGATION 16 16. WAIVER AND INDEMNITY 17 17. REPAIRS AND MAINTENANCE 17 18. ENTRY AND INSPECTION 18 19. IMPROVEMENTS 18 20. WAIVER 18 21. COVENANTS OF LANDLORD 19 22. NO REPRESENTATIONS BY LANDLORD 19 23. DEFAULT 19 24. SURRENDER 21 25. HOLDING OVER 22 26. LATE PAYMENT 22 27. HAZARDOUS SUBSTANCES/ENVIRONMENTAL REGULATIONS 22 28. NOTICES 23 29. MISCELLANEOUS 24 30. BROKERS 24 31. TENANT'S NONPROFIT STATUS 24 • 32. RENEWAL OPTION 24 33. EXCLUSIVE USE 25 • 34. LANDLORD'S RULES AND REGULATIONS 25 35. TENANT'S TECHNICAL SUPPORT FOR OPERATION OF THEATER 25 36. COMPLIANCE WITH MINN. STAT. SEC. 16A.695 26 EXHIBITS A Legal Description 29 B Spaces — Building Map 30 C Shared Income Lease Provisions 32 D Meet and Confer Criteria 33 E Section 2.03 of Grant Agreement 34 F Tenant's Theater Equipment 35 G Rules and Regulations 37 • H Payment Schedule 40 I Project Equipment 45 • LEASE AGREEMENT THIS LEASE AGREEMENT, made this day of , 2011, by and between the CITY OF HOPKINS, a municipal corporation under the laws of Minnesota ("Landlord") and STAGES THEATRE COMPANY, a Minnesota nonprofit corporation ("Tenant") and effective November 1, 2012; WITNESSETH THAT: 1. DEFINITIONS. When used in this Lease Agreement the following words or phrases shall have the following meanings: ACTIVITY YEAR. Shall mean that twelve (12) month period beginning on August 1 of any year and ending on July 31 of the following year. BUILDING. Shall mean and refer to the Hopkins Center for the Arts located at 1111 Mainstreet, Hopkins, Minnesota, and located on the real estate legally described in Exhibit A hereto. • LEASED PREMISES. Shall mean and refer to those portions of the Building which are leased to Tenant pursuant to the provisions of Section 2 of this Lease. MULTI -USE PERFORMANCE HALL. Shall mean and refer to the Multi -Use Performance Hall as well as its Control Booth, Dressing Rooms (East End), Sound Locks and chair storage, all as identified in Exhibit B to this Lease. PROJECT. Shall mean and refer to the Building, Real Estate and all improvements situated thereon. REAL ESTATE. Shall mean that certain parcel of Real Estate legally described. in Exhibit A hereto. SCHEDULE OF AVAILABLE USAGE DATES. Shall mean and refer to the Schedule of Available Usage Dates identified in Paragraph F. of Section 2 of this Lease. THEATER. Shall mean and refer to the House, the Stage, the Upper House, the Control Booth, the Green Room, the Dressing Rooms and the Sound Locks, all as identified in Exhibit B to this Lease. • THIS LEASE. Shall mean and refer to this Lease Agreement and all Exhibits attached hereto. - 1 - 2. PREMISES. Subject to the terms and conditions of this Lease, Landlord leases to Tenant, and Tenant hires and takes of and from Landlord those rooms or spaces within the Building ("Spaces") identified in Exhibit B to this Lease, but only as specified in this Section 2, together with the right to use, in common with the Other Users (hereinafter defined) and Landlord both the common areas of the Building and Project and all rights and easements appurtenant to the Building and Project, including the lobby, restrooms, kitchen, hallways and parking areas. A. EXCLUSIVE USE SPACES. Tenant shall have the exclusive use and possession, subject to the provisions of this Lease, of the following Spaces, and Tenant shall have access thereto twenty-four (24) hours a day, every day during the term of this Lease: Stages Offices Box Office Scene Shop B. EXCLUSIVE USE TIMES. Tenant shall also be entitled to the exclusive use and possession, subject to the provisions of this Lease, of the Spaces described herein under the conditions and circumstances and at the times stated below. The Tenant's exclusive use of said Spaces at such times is comprised largely, but not wholly, of six (6) Activities: Preliminary Rehearsal Activities, Final Rehearsal Activities, Performance 0 Activities, Education Activities, Conference Room Activities and Fund Raising Activities. (i) Preliminary Rehearsal Activities. Landlord shall provide Tenant with Space for Preliminary Rehearsal Activities and Educational Activities every Monday through Friday of each week, from 6:00 p.m. to 10:00 p.m. Landlord agrees that Space for Preliminary Rehearsal Activities must be clear of any tables, chairs, scenery and any other equipment. Landlord and Tenant acknowledge and agree that Landlord may provide any one of the following Spaces for Preliminary Rehearsal Activities during a time period as stipulated herein: Community Room — Room 207 Dance Studio — Room 218 Theater — Room 117 Multi -Use Performance Hall — Room 102 Landlord and Tenant agree that the Community Room will be considered Tenant's primary rehearsal Space, followed in descending order of priority by the Dance Studio, the Theater, and lastly the Multi -Use Performance Hall. Landlord shall provide Tenant with the same Space on a given day for Activities in the 4:00 p.m. to 6:00 p.m. period as in the 6:00 p.m. to 10:00 p.m. period if scheduling considerations permit; similarly, • Landlord shall provide Tenant with the highest priority Space for Preliminary Rehearsal Activities as scheduling considerations permit. -2- Tenant shall submit to Landlord by November 15 of each year a schedule (hereinafter all schedules delivered by Tenant pursuant to this Paragraph B. shall be referred to as an "Activity Schedule") of Tenant's Preliminary Rehearsal Activities for the upcoming Activity Year. The Activity Schedule will identify dates and times of all of Tenant's Preliminary Rehearsal Activities. (ii) Final Rehearsal Activities. Final Rehearsal Activities include set construction, painting, hanging/focusing lights, and rehearsals. Landlord shall provide Tenant with Space for Final Rehearsal Activities every day from 7:00 a.m. to 10:00 p.m. for the eighteen (18) days preceding the first or opening performance of each of the Performance Activities described below. Landlord shall provide the same Space to Tenant for the entire 14 -day period for a given performance. Landlord and Tenant agree that the Space provided for Final Rehearsal Activities will be the same Space in which the performance is to take place, that is, either the Theater or the Multi -Use Performance Hall, as stipulated below. Tenant shall submit to Landlord by November 15 of each year an Activity Schedule of Tenant's Final Rehearsal Activities for the upcoming Activity Year. The Activity Schedule will identify dates and times of all of Tenant's Final Rehearsal Activities. (iii) Performance Activities. 0 In the Theater Landlord shall provide Tenant with the Theater for forty (40) weeks of each Activity Year as selected by Tenant as hereinafter provided. Tenant and Landlord acknowledge and agree that the time scheduled in the Theater for Tenant's Final Rehearsal Activities shall be counted toward the 40 weeks to be provided for Performance Activities in the Theater. Anything in this Lease to the contrary also notwithstanding, however, Tenant shall make the Theater available, to the Landlord, to mid -stage, on the second (2" d) Thursday of July of each Activity Year if in fact the use of the Theater is needed on that day by the Landlord for the "Raspberry Festival." Tenant shall submit to Landlord by November 15 of each year an Activity Schedule of Tenant's Performance Activities in the Theater for the upcoming Activity Year. The Activity Schedule will identify dates and times of all of Tenant's Performance Activities in the Theater. Landlord and Tenant acknowledge that some of Tenant's performances may be popular enough to justify an extended run. Landlord wishes to provide and Tenant wishes to obtain the flexibility within the schedule for the Theater for Tenant to extend the run of popular performances for up to two (2) weeks longer than the time periods described above. Subject to scheduling considerations, including prior commitments to Other Users, Is Landlord agrees to provide the Theater to the Tenant for extended runs. Tenant agrees to pay additional rent to Landlord on a per -use basis for extended run Performance Activities at a rate no greater than the base rate charged to Occasional Users for their use of the Theater. -3- 0 In the Multi -Use Performance Hall Landlord shall provide Tenant with the Multi -Use Performance Hall for fourteen (14) weeks of each Activity Year as selected by Tenant as hereinafter provided. Tenant and Landlord acknowledge and agree that the time scheduled in the Multi -Use Performance Hall for Tenant's Final Rehearsal Activities shall be counted toward the 14 weeks to be provided for Performance Activities in the Multi -Use Performance Hall. Anything in this Lease to the contrary also notwithstanding, however, Tenant shall not be entitled to use the Multi -Use Performance Hall on the Friday through Sunday of the second (2nd) and third (3`d) weekend of July of each Activity Year if in fact the use of the Multi -Use Performance Hall is needed on those days by Landlord for the "Raspberry Festival." Tenant agrees to submit to Landlord by November 15 of each year an Activity Schedule of Tenant's Performance Activities in the Multi -Use Performance Hall for the upcoming Activity Year. The Activity Schedule will identify dates and times of all of Tenant's Performance Activities in the Multi -Use Performance Hall. Landlord and Tenant acknowledge that some of Tenant's performances may be popular enough to justify an extended run. Landlord wishes to provide and Tenant wishes to obtain the flexibility within the schedule for the Multi -Use Performance Hall for Tenant to extend the run of popular performances for up to two (2) weeks longer than the time periods described above. Subject to scheduling considerations, including prior commitments to Other Users, Landlord agrees to provide the Multi -Use Performance Hall to the Tenant for extended runs. Tenant agrees to pay additional rent to Landlord on a per- use basis for extended run Performance Activities at a rate no greater than the base rate charged to Occasional Users for their use of the Multi -Use Performance Hall. (iv) Conference Room Activities. Tenant shall be entitled to use the Conference Room for monthly board meetings, staff meetings, production meetings, conferences and presentations. Tenant shall be entitled to the use of the Conference Room each Activity Year for a total of fifty-two (52) weekly staff meetings to be held during the day between 9:00 a.m. and 5:00 p.m. Tenant shall submit to Landlord by November 15 of each year an Activity Schedule of Tenant's Conference Room Activities for the upcoming Activity Year. The Activity Schedule will identify dates and times of all of Tenant's Conference Room Activities which shall take place within the time periods specified above. • (v) Fund Raising Activities. Tenant shall also be entitled to the use of the Theater, the Multi -Use Performance Hall or so long as such use does not conflict with the Landlord's or District 270's use thereof, the Visual Art Gallery for two (2) fund raising events per Activity Year. It is acknowledged by Landlord that these fund-raising events will not include fundraising for the Hopkins Center for the Arts, but instead will be for the Tenant's annual fund. Tenant shall submit to Landlord no later than November 15 of each year an Activity Schedule for Tenant's Fund Raising Activities for the upcoming Activity Year. The Activity Schedule will identify dates, times and the location of all of Tenant's Fund Raising Activities. C. ADDITIONAL HOURS USAGE BY TENANT. In addition to Tenant's use and possession of certain Spaces as stated in Paragraphs A. and B. of this Section 2, Tenant shall be entitled to the exclusive use and possession of the following Spaces for the number of "Additional Hours" stated below per Activity Year. The dates and times on which Tenant shall be entitled to such "Additional Hours" usage of the Spaces identified in this Paragraph C. shall be determined by the procedures set forth in Paragraph E. of this Section 2. For the purposes hereof, it is agreed that the "all day" use of a Space shall be deemed to be sixteen (16) hours. Space As Designated on Exhibit C Additional Hours per Activity Year Multi -Use Performance Hall 40 hours Community Room 800 hours Dance Studio 500 hours • Art Classroom 400 hours Conference Room 400 hours D. ADDITIONAL HOURS IN ART CLASSROOM. The Landlord and Tenant acknowledge that the Landlord has entered into a lease with Independent School District 270 ("District 270") which grants District 270 Exclusive Use of the Arts Classroom. Any Additional Hours that are able to be scheduled by the Tenant or Landlord will be after District 270 has scheduled their activities and released the space for usage by the Landlord, Tenant, and other users. E. ADDITIONAL USE WEEKS IN THE THEATER AND STUDIO BY TENANT. In addition to Tenant's use and possession of certain Spaces as stated in Paragraphs A., B., and C. of this Section 2, Tenant shall have the opportunity to purchase up to an additional two (2) "Additional Use Weeks" in the Theater and/or Studio if the requests by the other parties to the Meet and Confer process have been satisfied. The fee for the purchased of Additional Use Weeks will be a fee equal to two (2) times the Occasional User rental fee for a day in the respective space times the number of Additional Use Weeks in the space. Tenant shall submit to Landlord by November 15 of each year an Activity Schedule of Tenant's Performance Activities in the Theater and Studio for the upcoming Activity Year. The Activity Schedule of Tenant's Performance Activities will identify any Additional Use Weeks, if requested. Additional Use -5- Weeks will stand second in priority to the Additional Hours in the District 270 (see paragraph F below) lease with the Landlord. F. SHARED USE OF BUILDING. Landlord and Tenant acknowledge that Landlord has entered into a lease with District 270 pursuant to which District 270 shall be entitled to use Spaces in the Building other than Tenant's Exclusive Use Spaces. Landlord shall also reserve the use and possession of Spaces in the Building for use by Landlord or other users ("Occasional Users") to whom Landlord intends to lease the use of the Spaces on dates and at times reserved to Landlord. District 270, Landlord, and the Occasional Users are sometimes hereinafter collectively referred to as the "Other Users". Tenant acknowledges that except as expressly stated in Paragraphs A., B., C., and D of this Section 2, Tenant shall not be entitled to the use and possession of the Spaces reserved to Landlord or leased to the Other Users. G. SCHEDULING AND CONFLICTS. Scheduling of Additional Hours on available usage dates (which refer to those dates that have not been requested as exclusive use spaces by any of the tenants) for spaces within the Hopkins Center for the Arts will be accomplished through a Meet and Confer process involving the major tenants (Stages Theatre Company, District 270) and Landlord. The Tenant agrees to participate in this process beginning in December of each year as described below for the upcoming Activity Year. The Tenant agrees to submit to the Landlord by November 15 of each year a preliminary schedule of Tenant's activities in the Building for the upcoming Activity Year. The Landlord shall prepare a compilation of all tenant and Landlord activity requests onto one "Activity Year Meet and Confer Calendar" for each space (Theater, Community Room, Multi -Use Performance Hall, Dance Studio, Art Classroom, Gallery, Conference Room), noting conflicts or overlapping requests. The Meet and Confer process will then begin with a meeting of a representative(s) from each tenant group as well as Landlord representative(s), in a joint meeting. The Activity Year Meet and Confer Calendars will be reviewed and conflicts or overlapping requests for space will be resolved at the Meet and Confer meeting. It may take more than one meeting to completely resolve the Activity Year schedule for all the participants. The Meet and Confer meeting(s) will take place during the month of December. A final Activity Year schedule (each is a "Final Activity Year Schedule"), which will consist of the final Activity Year Meet and Confer Calendars, will be distributed to the tenants no later than January 31 for the upcoming Activity Year. Once the Final Activity Year Schedule is distributed to tenants and the Landlord, the balance of unscheduled space in the Building will be available on a first come, first served basis, up to each tenant's limit of Additional Hours within each space. The annual Meet and Confer meeting 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 meeting may include specification by each tenant of such • tenant's activities during such tenant's respective Exclusive Use Times and Additional Hours, as well as discussion of logistical issues related to shared use of the Building, including parking, kitchen use, foot traffic in lobby and halls, noise, etc. M At the Meet and Confer meeting, Landlord, Tenant, and the other tenants (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 D ("Meet and Confer Criteria") 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 D, and Landlord's determination shall be final and binding on the Tenant and all other tenants in the Building. Tenant agrees that at any time the Landlord may request Tenant in writing to release Spaces from Exclusive Use Times or Additional Use Hours 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 or Additional Use Hours reserved pursuant to this Lease. H. RELEASE OF SPACES BY TENANT. Landlord and Tenant agree that after Landlord delivers the Final Schedule under Paragraph E. above of this Section 2, 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 Paragraphs B., • C., D, and E. of this Section 2. In that regard, Tenant agrees to collaborate with Landlord and Other Users to use the Building to the fullest extent possible. a. Landlord and Tenant agree that unless the theater is leased by Landlord to District 270, used for the Landlord's own programming, leased front of curtain to other users on a Tenant non-performance date, or leased by an other user identified in Exhibit C, Sharing Income Lease Provisions, as a non- income sharing user, the Landlord shall compensate Tenant for release of the theater by sharing fifty percent (50 %) of the rent for the theater or other cash consideration received by Landlord as a result of the release of the theater by Tenant. Landlord shall pay Tenant in the month following receipt by Landlord of the rent or other consideration as a result of the release of Space by Tenant. b. The Tenant may, at the Tenant's own discretion, return up to two (2) weeks of Exclusive Use time in the Theater for credit toward the Tenant's rent for that Activity Year. The return must be identified at the Meet and Confer for the upcoming Activity Year. Credit will be given at a rate of two (2) times the Occasional User rental fee for a day, times the number of returned weeks. Credit will be given in the form of a refund payment to Tenant in July of the • Activity Year the return took place. This return of space for credit applies only to the up to two (2) weeks in the Theater identified here and no other return of space for credit, in the Theater or other Art Center space, is implied by this section b. -7- I. ENTERPRISE EVENTS. In addition to Tenant's use of the Spaces pursuant to the foregoing provisions of this Section 2, Tenant reserves the right to schedule additional events that serve to achieve Tenant's mission in any of the Spaces in the Building identified in Exhibit C, including fund raising events in the Theater, the Multi -Use Performance Hall or so long as such use does not conflict with the Landlord's or District 270's use thereof, the Visual Art Gallery in excess of the two (2) such events Tenant is entitled to schedule per Activity Year under Paragraph B. above of this Section 2; provided, however, Tenant may schedule such additional events only after the Final Schedule has been prepared and delivered by Landlord under Paragraph E. above of this Section 2 and only in the Spaces and at such times as remain available for use under said Final Schedule and do not conflict with prior commitments to Other Users. For all such additional events, Tenant agrees to pay additional rent to Landlord on a per -use basis at a rate no greater than the base rate charged to Occasional Users for their use of the subject Space. J. FLEXIBLE USE BY TENANT. In addition to Tenant's use of the Spaces pursuant to the foregoing provisions of this Section 2, Tenant shall be entitled to use, at no additional Rent to Tenant, any of the Spaces identified in Paragraph B. of this Section 2, including the Theater on a temporary, as needed basis if such Space is then, in fact, not being used by Landlord or any Other User. Tenant shall give Landlord no more than one week's notice prior to such use. 3. TERM The Term of this Lease shall commence on November 1, 2012, (the "Commencement Date") The term of this Lease shall terminate on the date (the "Termination Date"), which is the last day of the calendar month which is one hundred twenty-two (122) full calendar months, December 31, 2022, following the Commencement Date, unless this Lease shall be earlier terminated or unless this Lease shall be renewed both as hereinafter provided. 4. RENT. Tenant agrees to pay Landlord, at 1111 Mainstreet, Hopkins, Minnesota 55343, Facilities Office #206, or such other place as Landlord may from time to time designate in writing, annual gross rent ("Rent") calculated in accordance with the provisions of Section 5 below, payable in advance in equal monthly installments on the first day of each and every month commencing on the Commencement Date, without demand therefore or deduction, set off or counterclaim, until such Rent is adjusted as provided in Section 5 below. 5. CALCULATION OF RENT. The Rent payable by Tenant under Section 4 of this Lease shall be calculated as follows: a. During the period commencing on the Commencement Date and ending on • December 31, 2012, Tenant shall pay Landlord Rent at a monthly rate of Twelve Thousand Four Hundred Eighty -Eight and 05/100ths Dollars ($12,488.05) payable in advance of each month (November and December). • b. During the period commencing on January 1, 2013 and ending on December 31, 2013 ("Year One of Lease"), Tenant shall pay Landlord Rent at an annual rate of One Hundred Fifty Three Thousand Five Hundred Fifty and 00/100ths Dollars ($153,550.00) payable in advance in equal monthly installments of Twelve Thousand Seven Hundred Ninety -Five and 00/100ths Dollars ($12,795.84). C. During the period commencing on January 1, 2014 and ending on December 31, 2014 ("Year Two of Lease"), Tenant shall pay Landlord Rent (payable in advance in equal monthly installments) equal to the Year One of Lease Rent multiplied by a factor of One and 03/100ths (1.03). d. For each calendar year thereafter during the term of this Lease, including during any renewal term under Section 32 below, Tenant shall pay Landlord Rent (payable in advance in equal monthly installments) equal to the Rent payable by Tenant to Landlord for the previous calendar year multiplied by a factor of One and 03/100ths (1.03). The specific amounts of annual and monthly rent for each year, including the optional renewal term are identified in the Rent Payment Schedule, Exhibit H to this lease, which Exhibit shall control in the event of conflict between Exhibit H and this Section. 6. SERVICES AND UTILITIES._Subject to Tenant's obligation to pay Rent pursuant to Sections 4 and 5 of this Lease, Landlord shall provide the following services and utilities: a. Furnish water, sewer, electricity and refuse removal and heat and air conditioning to provide a temperature and humidity condition required in Landlord's reasonable judgment for comfortable occupancy of the Building and the Leased Premises under normal business operations daily from 7:00 a. in. to 11:00 p.m., excepting only those legal holidays of the City of Hopkins when Tenant has not scheduled the use of the Leased Premises in accordance with the provisions of Section 2 above. Notwithstanding the foregoing, at its sole cost and expense, Tenant shall install, maintain and pay the refuse removal cost for, a dumpster to be located outside of the Building near the Scene Shop. Said dumpster shall be for the exclusive use of Tenant and Landlord agrees that the Rules and Regulations for the Hopkins Performing Arts Center under Section 35 below shall so provide. b. Provide daily janitor and cleaning service seven (7) days a week, excepting only those legal holidays of the City of Hopkins when Tenant has not scheduled use of the Leased Premises in accordance with the provisions of is Section 2 above, which service shall not unreasonably interfere with Tenant's use of the Leased Premises. . C. Make all normal repairs to the Building and the Leased Premises, including the Exclusive Use Spaces and the Initial Leasehold Improvements (as hereinafter defined) but excluding repairs to any special treatments of walls, floors or ceilings made by or at the request of Tenant and excluding repairs to Tenant's Theater Equipment (as hereinafter defined) and any trade fixtures installed or made by or at the request of Tenant. d. It is acknowledged and agreed that Tenant shall contract, and be billed separately for its own telephone equipment and service to include Tenant's Exclusive Use Spaces and the Control Booths for the Theater and the Multi - Use Performance Hall. Landlord shall not be liable for, and there shall be no abatement of rent by reason of, failure to furnish, or for delay or suspension in furnishing, any services to be provided by Landlord, caused by adverse weather conditions, breakdown, maintenance, repairs, strikes, scarcity of labor or materials, or other causes beyond Landlord's control; provided, however, in the event such services are disrupted for a period of ninety-six (96) consecutive hours and such disruption is caused by the negligence or willful misconduct of Landlord, Rent under this Lease shall abate until such services are restored. Tenant shall conserve heat, air conditioning, water and electricity and shall use reasonable care in the use of the Building and the Leased Premises and of the public areas in the Project. All costs incurred by Landlord in providing the services and utilities to be provided pursuant • to this Section 6 shall be included in the Operating Expenses specified and defined in Section 5 of this Lease. 7. USE OF PREMISES, PARKING. Tenant agrees that it will use and occupy the Leased Premises solely for performing arts production, educational purposes and related and incidental uses. Tenant acknowledges and agrees that its use of the Project shall include charitable and/or educational uses and purposes. Tenant shall be solely responsible for selecting the performances to be produced from the Leased Premises. Tenant will not use or occupy the Leased Premises for any unlawful purpose and hereby assumes responsibility for compliance with all present and future laws, ordinances, regulations and orders of federal, state or local governmental units or agencies pertaining to Tenant's use of the Leased Premises or the operation of Tenant's business thereon. Tenant shall not cause or permit any unusual noise, odors or nuisance that is not consistent with Tenant's permitted use of the Leased Premises in or about the Leased Premises and the Building and grounds nor shall Tenant permit any debris or property of Tenant, its officers, employees or agents to be placed or left upon any part of the Project other than the Leased Premises; and Tenant, its officers and employees shall observe all reasonable rules and regulations adopted by Landlord and applicable to Tenant and the Other Users of the Project on a uniform, nondiscriminatory basis for the general safety, comfort and convenience of Landlord, Tenant and Other Users of the Project. • Landlord reserves the right to regulate the use of any parking areas and driveways located on the Project and the Real Estate, including the location and designation of parking for tenants and tenants' employees and invitees, and the designation of loading and unloading areas. Notwithstanding the prior sentence, Tenant shall be entitled to use -10- • the shared reserved parking spaces located in the alley way behind the facility on a first come, first served, basis with the Landlord employees. Landlord disclaims any warranty that the Leased Premises are suitable for Tenant's use and Tenant acknowledges that it has had full opportunity to make its own determination in this regard. Tenant warrants that the operation of its business will not be harmful to the Building or the mechanical equipment within the Building and Tenant shall be liable in the event of damage arising from such harmful operation. In the event Landlord's insurance premiums are increased above the standard building rate as a result of Tenant's use of the Leased Premises, Tenant will pay to Landlord as additional rent the amount of such increase. In the event Tenant shall cause or permit any unusual noise, odor or nuisance or the storage of any debris or property of Tenant, its officers, employees or agents, in or about those parts of the Project other than the Leased Premises, Building or Project in violation of the terms of this Section 7, Landlord shall, upon seven (7) days written notice to Tenant, be entitled to take any steps it deems reasonably necessary to correct or remove such violation and Tenant shall pay Landlord, as additional rent hereunder, all reasonable costs and expenses incurred in such correction or removal. • 8. ASSIGNMENT AND SUBLETTING. A. Assignment- General Prohibition. Tenant will not assign, transfer, mortgage or encumber its interest in this Lease , or any part thereof by any third party, other than employees, customers, patrons, guests and invitees of Tenant; nor shall any assignment or transfer of this Lease be effectuated by operation of law or otherwise, without in each such case obtaining the prior written consent of Landlord, which consent may be withheld in Landlord's unqualified discretion. Tenant shall seek such consent of Landlord by a written request, setting forth such information as Landlord may deem necessary and reimburse Landlord as additional rent hereunder for any reasonable costs Landlord may incur, including Landlord's reasonable attorney's fees, in reviewing and responding to Tenant's request. The consent by Landlord to any assignment or subletting shall not be construed as a waiver or release of Tenant from the terms of any covenant or obligation under this Lease, nor shall the collection or acceptance of rent from any transferee under an assignment constitute an acceptance of the assignment or a waiver or release of Tenant from any covenant or obligation contained in this Lease, nor shall any assignment be construed to relieve Tenant from the requirement of obtaining the consent in writing of Landlord to any further assignment or subletting. No assignment or sublease or other transfer of this Lease shall be effective unless the assignee, sub -lessee or transferee shall at the time of such assignment, sublease or transfer, assume in writing, all of the terms, covenants and conditions of this Lease to be performed by Tenant. • B. Assignment- Exception for Merger. Should the Tenant desire to merge with another entity by either: -11- a. Any transaction in which more than fifty percent (50 %) of the legal or beneficial ownership or control of Tenant is transferred, if Tenant is a corporation, limited liability company, trust or partnership, or b. The sale or transfer of all or substantially all of the business and assets of Tenant. Then Landlord's consent, as required above, shall not be unreasonably withheld, so long as: a. Tenant is transferring its control or interest to a performing arts entity substantially similar to Tenant in mission and target audience at the signing of this lease, b. The exemption of the Project from real estate taxes is not impaired by virtue of such transfer of control or sale. C. The transfer of control or sale complies with Minnesota Statutes Section 16A.695, or would not impair Landlord's ability to comply with same. C. Subletting. Tenant will not sublet, rent or permit occupancy or use of the Leased Premises without the prior written consent of Landlord, which consent shall not be • unreasonably withheld if the proposed subletting of the use of all or any portion of the Spaces to which Tenant is entitled pursuant to the provisions of Section 2 of this Lease so long as (i) the exemption of the Project from real estate taxes is not impaired by virtue of such subletting and (ii) all rent payable by the subtenant shall be divided by Landlord and Tenant as follows: Tenant shall retain one-half (1/2) of all such rent and shall pay one-half (1/2) of all such rent to Landlord. Tenant shall seek Landlord's consent in the same manner as in Section 8(A), above. 9. 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 evidencing such subordination or superiority of this Lease as may be reasonable requested by Landlord or any mortgagee, provided, however, that any subordination by Tenant (under this Section 9 or pursuant to a separate agreement) shall only be effective if Tenant has first received a nondisturbance 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 -12- 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. Tenant further waives the provisions of any statute or rule of law, now or hereafter in effect, which may give or purport to give Tenant any right to terminate or otherwise adversely affect this Lease and the obligations of Tenant hereunder in the event that any such foreclosure proceeding is prosecuted or completed. 10. SALE OF THE PROJECUESTOPPEL CERTIFICATES. In the event of a sale of the Project, Landlord shall be relieved of all liability under this Lease accruing from and after the date of sale provided Landlord has obtained the written agreement of its transferee or assignee to assume and carry out all of the covenants and obligations of the Landlord hereunder. 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 to 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 performance of any covenant, agreement or condition contained in this Lease, and, if so, specifying each such default, (iv) agreeing that Tenant shall not prepay any rent more than thirty (30) 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. 11. INSURANCE. Tenant agrees that it shall purchase in advance and carry the following insurance at is own expense: a) "All Risk" fire and extended coverage insurance insuring Tenant's personal property, furniture, trade fixtures, inventory and business records against loss from all insurable events for the full replacement value thereof, b) insurance against interruption of Tenant's business activities; c) 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 $2,000,000.00 for personal injury or death and not less than $500,000.00 for property damage and fire legal liability. -13- All such insurance shall name Landlord as an additional insured and shall provide for thirty (30) days written notice being sent 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 amount of not less than $2,000,000.00 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 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 11 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. By agreeing to provide or maintain the above insurance coverages, Landlord does not waive any statutory or common law immunities or limitations of liability, all such immunities and limitations being expressly reserved by Landlord. 12. FIRE OR OTHER CASUALTY. If the Building shall be damaged or destroyed by fire or other cause, Landlord shall either (a) undertake to restore such damage, including any such damage to the Initial Leasehold Improvements (provided, however, that Landlord shall not be required to spend amounts in excess of insurance proceeds available to Landlord to effect such restoration), or (b) in the event the Building is damaged by fire or other cause to such extent the damage cannot, in Landlord's reasonable judgment, be economically repaired within one hundred and eighty (180) days after the date of such damage (taking into account the time necessary to effectuate a satisfactory settlement with any insurance company and using normal construction methods without overtime or other premium), terminate this Lease, by notice given to Tenant within sixty (60) days after the date of damage. Any termination hereunder by reason of damage which materially interferes with the use of the Leased Premises shall be effective as of the date of the damage. Any termination by reason of damage to the -14- Building which does not materially interfere with the use of the Leased Premises shall be effective as of the date notice is given. If Landlord elects to restore, Landlord shall not be obligated to restore any improvements to the Leased Premises which do not become the property of Landlord upon termination of this Lease. Upon substantial completion by Landlord of its work, Tenant shall undertake to restore its leasehold improvements (other than the Initial Leasehold Improvements) and trade fixtures with all due diligence. This Lease shall, unless terminated by Landlord pursuant to this Section 12, remain in full force and effect following such damage, and, in the case of damage which materially interferes with the use of the Leased Premises, the Rent, prorated to the extent that the Leased Premises are rendered untenantable, shall be equitably abated until such repairs are completed; provided, however, that if Tenant does not restore its leasehold improvements and trade fixtures with due diligence, abatement shall cease as of the date restoration could have been completed using due diligence. Notwithstanding the foregoing, if the destruction or damage was wholly or partially caused by the breach of this Lease by Tenant, its officers, agents or employees, the Rent shall not abate and Tenant shall remain liable for the same. Notwithstanding anything herein to the contrary, in the event the Building is damaged by fire or other cause to such extent the damage cannot, in Landlord's reasonable judgment, be economically repaired within one hundred eighty (180) days after the date of such damage (taking into account the time necessary to effectuate a satisfactory settlement with any insurance company and using normal construction methods without overtime or other premium) or in the event the damage is not, in fact, repaired within said one hundred eighty (180) day period, then in either such • case Tenant may terminate this Lease upon written notice to Landlord. 13. CONDEMNATION. If the whole of the Building shall be taken or condemned or purchased under threat of condemnation by any governmental authority, then the Term of this Lease shall cease and terminate as of the date when the condemning authority takes possession of the Leased Premises and Tenant shall have no claim against the condemning authority, Landlord or otherwise for any portion of the amount that may be awarded as damages as a result of such taking or condemnation or for the value of any unexpired Term of this Lease; provided, however, that Landlord shall not be entitled to any award made to Tenant for loss of business or costs of relocation. In the event part of the Building is condemned to the extent that it cannot, in Landlord's reasonable judgment, be economically restored within a reasonable time, either Landlord or Tenant shall have the option, by notice given to the other party within sixty (60) days after the date the condemning authority takes possession, to terminate this Lease as of the date of such possession. 14. ALTERATIONS AND SIGNS. Tenant will not make or permit anyone to make any alterations, additions or improvements, structural or otherwise, in or to the Leased Premises or the Building without the prior written consent of Landlord, provided that Landlord shall not unreasonably withhold such consent, and further provided all such alterations, additions or improvements shall be completed in conformity with the • reasonable building standards adopted by Landlord from time to time. If any mechanic's lien is filed against any part of the Building or the Project for work claimed to have been done for or labor or materials claimed to have been furnished to or authorized by Tenant, such mechanic's lien shall be discharged by Tenant within thirty (30) days thereafter, at -15- Tenant's sole cost and expense, by the payment and satisfaction thereof or by making any deposit required by law. Should Tenant fail to obtain the discharge of any such mechanic's lien within thirty (30) days of the filing thereof, Landlord shall be entitled to obtain such discharge by whatever reasonable means Landlord deems expedient, and all costs incurred by Landlord in obtaining such discharge including reasonable attorneys' fees, shall be paid by Tenant as additional rent hereunder. Notwithstanding the foregoing, however, Tenant shall be not required to pay or discharge any mechanic's lien so long as Tenant shall in good faith contest the same or the validity thereof by appropriate legal proceedings which shall operate to prevent the collection of the lien so contested and the sale of the Building or Project to satisfy any obligation arising from said lien, provided that Tenant shall give such security as may be reasonable required by the Landlord or Landlord's mortgagee to insure such payment and prevent any sale or forfeiture of the Building or Project by reason of such nonpayment or contest by Tenant. All alterations, additions or improvements in or to the Leased Premises, the Building or the Project made by Tenant or by Landlord on Tenant's behalf shall immediately become the property of Landlord and shall remain upon and be surrendered with the Leased Premises as a part thereof at the end of the term hereof without disturbance, molestation or injury. Notwithstanding the foregoing, provided that if any and all damage resulting therefrom be repaired, Tenant shall have the right to remove at its own expense, prior to the expiration or termination of the term of this Lease, all furniture, equipment and other personal property and all trade fixtures installed by Tenant 40 in the Leased Premises. Except as permitted pursuant to Exhibit G attached hereto and incorporated herein, Tenant shall not place or maintain any sign, advertisement or notice on any part of the outside or the inside of the Building without Landlord's prior written approval, which approval by Landlord shall not be unreasonably withheld or delayed. Except as provided in said Exhibit G, any such approved use and placement shall be at the sole expense and cost of Tenant. Tenant shall not install any equipment which will or may necessitate any changes, replacements or additions to, or in the use of, the heating, ventilating or air conditioning system, or electrical system of the Building nor any equipment containing Hazardous Materials or chlorofluorocarbons without obtaining the prior written consent of Landlord. Equipment belonging to Tenant which causes fumes, odors, noise or vibration that may be transmitted to the structure of the Building or to any space therein to such a degree as to be reasonably objectionable to Landlord or to any Other User of the Project and which is not consistent with Tenant's use of the Leased Premises shall be installed and maintained by Tenant, at Tenant's expense, on vibration eliminators, with ventilation equipment or other devices sufficient to eliminate such fumes, odors, noise and vibration. 15. WAIVER OF SUBROGATION. Notwithstanding any other provision in • this Lease to the contrary, Landlord and Tenant hereby release one another, their respective officers, agents, officials, partners, employees and property manager, from any and all liability or responsibility (to the other or anyone claiming through or under them by way of subrogation or otherwise) for any loss or damage covered by insurance actually -16- • carried or coverable by the insurance required by Section 11 hereof, even if such loss or damage shall have been caused by the fault or negligence of the other party, or anyone for whom such party may be responsible. 16. WAIVER AND INDEMNITY. Tenant agrees that Landlord, its officers, agents, officials, partners and employees shall not be liable to Tenant or those claiming through or under Tenant for any personal injury, death or property damage occurring in, on or about the Leased Premises, the Building or the Project except to the extent such injury, death or property damage was caused by the intentional misconduct, negligence or breach of this Lease by Landlord, its contractors, agents or employees. Without limitation of the foregoing, and except as may be specifically provided elsewhere in this Lease and provided that the following was not caused by the intentional misconduct, negligence or breach of this Lease by Landlord, its contractors, agents or employees, Landlord shall not be liable to Tenant for any damage, compensation or claims arising from: loss or damage to books, records, files, money, securities, negotiable instruments or other papers in or about the Building or the Leased Premises; the necessity of repairing any portion of the Project; the interruption in the use of the Leased Premises; accident or damage resulting from the use or operation by Landlord, Tenant, or any other person or persons whatsoever of elevators, or heating, cooling, electrical or plumbing equipment or apparatus; the termination of this Lease by reason of the destruction or condemnation of the Building or the Leased Premises; any fire, robbery, theft, or any other casualty; any leakage or bursting of pipes or water vessels or any roof or wall leakage in any part or portion of the Building or the Leased Premises; water, rain, snow or underground water that may leak into, flow on, or flow from, any part of the Building or the Leased Premises or the Project. Landlord and Tenant each agree to indemnify and hold harmless the other party and its 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 indemnifying party, its officers, employees and agents in or about the Leased Premises, the Building or the Project or, b) arising in connection with the indemnifying party's use or occupancy of the Building, the Project or the Leased Premises or the conduct of the indemnifying party's business thereon, and agrees to indemnify and hold harmless the other party from and against all costs, expenses and liabilities, including reasonable attorneys fees, incurred in connection with any such claims or proceedings brought thereon, and the defense thereof. 17. REPAIRS AND MAINTENANCE. Subject to Landlord's undertakings stated in Section 6 of this Lease, Tenant shall put, keep, repair and maintain Tenant's Theatre Equipment and the Exclusive Use Spaces and the trade fixtures and equipment therein at all times in a good, properly functioning, safe and sanitary condition and state of repair, reasonable wear and tear excepted, free of debris and other similar obstructions. Tenant shall allow Landlord access to the Exclusive Use Spaces identified in Paragraph A. of Section 2 of this Lease during all reasonable hours upon forty-eight (48) hours notice, except in the case of emergencies, to make repairs required to be made by Tenant . which Tenant fails or refuses to make, and shall pay Landlord as additional rent the reasonable cost of such repairs made for Tenant by Landlord. Tenant shall also allow Landlord reasonable access to those portions of the Leased Premises other than the -17- Exclusive Use Spaces identified in Paragraph A. of Section 2 of this Lease, provided Landlord shall not unreasonably interfere with Tenant's permitted use of the Leased Premises. Subject to Tenant's obligation to pay Rent pursuant to Sections 4 and 5 of this Lease, Landlord shall: i) make all necessary repairs to the outer walls, roof, and structural elements of the Building, ii) keep the plumbing, sewage, heating, air conditioning, electrical and ventilating systems of the Building in good repair, ordinary wear and tear excepted, and iii) maintain and keep the common areas, grounds, walkways, driveways and parking areas in a neat and clean condition. Tenant shall pay for electric lamps and ballasts used in the Exclusive Use Spaces identified in Paragraph A. of Section 2 of this Lease. Any cost of repairs, modifications, alterations or improvements to the Building, the Leased Premises or the Project which are occasioned by the sole negligence or default of Tenant, its officers, employees, agents or invitees, or by the requirements of law, ordinance or other governmental directive not in effect as of the Commencement Date and which arise solely out of the nature of Tenant's use and occupancy of the Leased Premises or the installations of Tenant in the Building or the Leased Premises shall be paid solely by Tenant. Tenant will not suffer or permit any waste or injury to the Building or the Leased Premises and will, at the expiration of the term of this Lease, surrender the Leased Premises with all walls, floor coverings and other components thereof in the same order and condition as on the Commencement Date, ordinary wear and tear, subsequent alterations or improvements consented to by Landlord as provided in Section 14 of this • Lease and casualty damage covered by insurance excepted. 18. ENTRY AND INSPECTION. Upon forty-eight (48) hours prior notice, except in the case of emergencies, Tenant shall permit Landlord, its agents or representatives to enter the Exclusive Use Spaces identified in Paragraph A. of Section 2 of this Lease to examine and inspect the same or to make such alterations, renovations or repairs to the Leased Premises or the Building as Landlord may deem necessary or desirable, or to exhibit said Exclusive Use Spaces to prospective Tenants during the last 180 days of the term of this Lease or to prospective purchasers at any time during the term. Landlord shall also be entitled to reasonable access to those portions of the Leased Premises other than said Exclusive Use Spaces. Landlord shall make reasonable efforts not to unreasonably interfere with the conduct of Tenant's business, but Landlord shall in no event be liable to Tenant or those claiming under or through Tenant for any loss or damages in connection with such entry, inspection, alterations, renovations or repairs. 19. IMPROVEMENTS. The taking of possession of the Leased Premises by Tenant shall be conclusive evidence that the Leased Premises and the Building are in good and satisfactory condition in compliance with this Lease at the time of such taking of possession. 20. WAIVER. No waiver by either party of any breach of any covenant, condition or agreement herein contained shall operate as a waiver of such covenant, • condition, or agreement itself, or of any subsequent breach thereof. No payment by Tenant or receipt by Landlord of a lesser amount than the monthly installments of Rent herein stipulated shall be deemed to be other than on account of the earliest stipulated -18- Rent nor shall any endorsement or statement on any check or letter accompanying a check for payment of Rent be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord's right to recover the balance of such Rent, to terminate this Lease, to repossess the Leased Premises or to pursue any other remedy provided in this Lease. No re-entry by Landlord, and no acceptance by Landlord of keys from Tenant, shall be considered an acceptance of a surrender of this Lease or the Leased Premises. 21. COVENANTS OF LANDLORD. Landlord covenants that as of the Commencement Date of this Lease, Landlord will have become the fee owner of the Real Estate, Building and Project. Landlord further covenants that it has the right to make this Lease for the term aforesaid 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 freely, peaceably and quietly occupy and enjoy the use and possession of the Leased Premises as provided in this Lease. This Lease shall be binding upon Landlord and Tenant notwithstanding Landlord is not the fee owner of the Project on the date of this Lease. The term "Landlord" as used in this Lease shall mean solely the owner of the Project. In case the original or any successor Landlord shall convey or otherwise dispose of its entire interest in the Project and turn over to the transferee any funds held by it hereunder in which Tenant has an interest, all liabilities of such Landlord under this Lease from and after the date of transfer of the Landlord's interest shall terminate so long as said transferee assumes all obligations of Landlord under this Lease. 22. NO REPRESENTATIONS BY LANDLORD. Neither Landlord nor any agent, employee or property manager of Landlord has made any representations with respect to the Leased Premises, the Building or the Project except as herein expressly stated, and no right, privileges, easements or licenses are acquired by Tenant except as herein expressly stated. 23. DEFAULT. a. Any one of the following events shall constitute an Event of Default: Tenant shall fail to pay any installment of Rent or other sums payable by Tenant as herein provided and such default shall continue for a period of ten (10) days after written notice to Tenant; ii. Tenant shall violate or fail to perform any of the other terms, covenants or conditions of this Lease and such default shall continue for a period of thirty (30) days after written notice from Landlord or, in the event such default is of a nature that it cannot reasonably be cured within thirty (30) days, such longer period of time, but not to • exceed ninety (90) days, as is reasonable under the circumstances so long as Tenant commences such cure and diligently pursues the same; -19- • iii. Tenant shall file or have filed against it or any guarantor of this Lease any bankruptcy petition, or make an assignment for the benefit of its creditors. b. If an Event of Default shall have occurred and be continuing, Landlord may at its sole option by written notice to Tenant terminate this Lease. Neither the passage of time after the occurrence of the Event of Default nor exercise by Landlord of any other remedy with regard to such Event of Default shall limit Landlord's rights under this Subparagraph b. of this Section 23. 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 Leased Premises (said repossession being hereinafter referred to as "Repossession") in compliance with applicable law, and may remove Tenant and all other persons and property therefrom. d. From time to time after Repossession of the Leased Premises, whether or not this Lease has been terminated, Landlord shall attempt to re -let the Leased Premises for the account of Tenant in the name of Landlord or otherwise, for such term or terms (which may be greater or less than the period which would otherwise have • constituted the balance of the Term) and for such terms (which may include concessions or free rent) and for such uses as Landlord, in its reasonable discretion, may determine, and may collect and receive the rent therefor. Landlord shall not be responsible or liable for any failure to collect any rent due upon any such re -letting. e. No termination of this Lease pursuant to Subparagraph b. of this Section 23 and no Repossession of the Leased Premises pursuant to Subparagraph c. of this Section 23 or otherwise shall relieve Tenant of its liabilities and obligations under this Lease, all of which shall survive any such termination or Repossession. In the event of any such termination or Repossession, whether or not the Leased Premises shall have been relet, Tenant shall pay to Landlord the Rent and other sums and charges to be paid by Tenant up to the time of such termination or Repossession, and thereafter Tenant, until the end of what would have been the term in the absence of such termination or Repossession, shall pay to Landlord, as and for liquidated and agreed current damages for Tenant's default, the equivalent of the amount of the Rent and such other sums and charges which would be payable under this Lease by Tenant if this Lease were still in effect, less the net proceeds, if any, of any re -letting effected pursuant to the provisions of Subparagraph d. after deducting all of Landlord's reasonable expenses in connection with such reletting, including without limitation, all repossession costs, • brokerage and management commissions, operating expenses, legal expenses, reasonable attorneys' fees, alteration costs, and expenses of preparation for such re- letting. Tenant shall pay such current damages to Landlord monthly on the days on which the Rent would have been payable under this Lease if this Lease were still -20- in effect, and Landlord shall be entitled to recover the same from Tenant on each such day. At any time, after such termination or Repossession, whether or not Landlord shall have collected any current damages as aforesaid, Landlord shall be entitled to recover from Tenant, and Tenant shall pay to Landlord on demand, as and for liquidated and agreed final damages for Tenant's default, an amount equal to the then present worth of the excess of the Rent and other sums or charges reserved under this Lease from the day of such termination or repossession for what would be the then unexpired term of this Lease if the same had remained in effect, over the then net fair rental value of the Leased Premises for the same period. f. If an Event of Default shall have occurred and Landlord places in the hands of an attorney the enforcement of all or any of the terms, covenants, agreements or conditions of this Lease, the collection of any rent due or to become due, or the recovery of possession of the Leased Premises, Tenant agrees to reimburse Landlord, as additional rent hereunder, for Landlord's reasonable attorneys fees, together with the actual cost of maintaining any action commenced in law or equity by Landlord, whether suit is actually filed or not. • g. Landlord shall in no event be considered to be in default hereunder until the expiration of a reasonable period of time after written notice of default from Tenant. Tenant agrees that it will look solely to the interest of Landlord in the Project and the rentals therefrom for the collection of any judgment or award requiring the payment of money by Landlord in the event of any default by Landlord in any of the terms, covenants or conditions of this Lease; and no other assets of Landlord shall be subject to levy, execution or other legal process for the payment of Tenant's claims. h. Tenant waives any demand for possession of the Leased Premises, demand for payment of rent and notice of intent to re-enter, or of intention to terminate this Lease, other than the notices provided in this Section 23 or elsewhere in this Lease. 24. SURRENDER. Tenant shall surrender the Leased Premises to Landlord upon termination of this Lease, whether such termination occurs at the end of the lease term or sooner, together with all utility systems, equipment, improvements, replacements, alterations and decorations thereto and operating bulbs or tubes in all light fixtures, but excluding Tenant's trade fixtures, Tenant's Theater Equipment (as defined in Section 36 of this Lease) and other personal property, broom clean and in good order, condition and repair except for ordinary wear and tear and casualty damage actually covered by insurance. At Tenant's option, Tenant shall remove promptly alterations, modifications . and the like to the Leased Premises made by Tenant or on behalf of Tenant and shall restore and repair damage caused by such removal. Should Tenant fail to surrender the Leased Premises in the condition required by this section, Landlord shall be entitled to -21- take whatever steps may, in Landlord's reasonable discretion, be required to restore the • Leased Premises to said condition and Tenant agrees that it shall pay to Landlord all reasonable costs incurred by Landlord in so restoring the Leased Premises. 25. HOLDING OVER. Should the Tenant continue to occupy the Leased Premises, or any part thereof, after the expiration or termination of the term of this Lease whether with or without the consent of the Landlord, such tenancy shall be from month to month and Tenant shall pay Landlord an amount equal to one hundred twenty-five percent (125 %) of the Rent in Sections 4 and 5 of this Lease during the entire period that Tenant continues to so occupy the Leased Premises after the term of this Lease. 26. LATE PAYMENT. Other remedies for nonpayment of rent notwithstanding and without prejudice to such remedies, if Tenant fails to pay the Rent or any other payment due hereunder, within ten (10) days following written notice of default by Landlord, Tenant shall pay to Landlord, as additional rent hereunder, interest on all such past due payments at the rate of one percent (1 %) per month or at the maximum rate permitted by law, whichever rate is lower. Interest shall accrue from the date each such late payment became due and shall be payable to the date of payment thereof by Tenant. 27. 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, without limitation, the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 ("CERCLA"), as amended by the Superfund Amendments and Reauthorization Act of 1986 ("SARA") (collectively "CERCLA/SARA") and the Resource Conservation and Recovery Act of 1976 ("RCRA") and the Minnesota Environmental Response and Liability Act ("MERLA"); b. Tenant will obtain by the Commencement Date 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 regulated by Environmental Regulations (such hazardous substances, toxic waste, • asbestos and other substances being hereinafter collectively referred to as "Hazardous Substances") on or about the Leased Premises, Building or the Project. -22- In the event Tenant, its officers, agents, employees or subcontractors shall • 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 the Project, at Tenant's sole expense, any Hazardous Substance which is not in compliance with Environmental Regulations or this Lease Agreement; 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 or and 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 save 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, without limitation, the cost of removal and/or remediation of any • disposal, discharge, release or contamination or discharge of 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 by way of limitation, the indemnifications herein provided shall survive the termination of this Lease. 28. 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 1010 First Street South Hopkins, Minnesota 55343 Tenant: Stages Theatre Company Attention: Executive Director • 1111 Mainstreet Hopkins, Minnesota 55343 -23- If notice is given by mail or by overnight delivery service, such notice shall be deemed to have been given the day following the date of mailing. 29. MISCELLANEOUS. a. This Lease is made and executed in the State of Minnesota, and shall be construed according to the laws of Minnesota; b. The invalidity or unenforceability of any provision of this Lease shall not affect or impair the validity of any other provisions; and section titles and captions in this Agreement are for convenience only and do not define, limit or construe the contents of such sections and paragraphs; C. If more than one person or entity shall sign this Lease as Tenant, the obligations set forth herein shall be deemed joint and several obligations of each such party; d. This Lease shall be binding upon and inure to the benefit of the parties thereto and, subject to the restrictions and limitations herein contained, their respective heirs, successors and assigns; C. Any modifications to this Lease must be in writing and signed by both Landlord and Tenant; and f. The attached Exhibits A -I are incorporated in and made a part of this Lease in their entirety. 30. BROKERS. Landlord and Tenant each warrants that it has not engaged or dealt with any real estate broker or agent in connection with this Lease and agrees to indemnify, defend and hold the other party harmless from and against any claim for commissions, brokers' fees or finders' fees asserted by anyone on account of any dealings with the indemnifying party in connection with this Lease. 31. TENANT'S NONPROFIT STATUS. Tenant represents to Landlord that it is duly qualified as a nonprofit corporation under Section 501 (c)(3) of the Internal Revenue Code, and Tenant agrees that it shall maintain that status during the entire term of this Lease. Upon request by Landlord, Tenant shall provide Landlord with written evidence Tenant is maintaining its status as a 501 (c)(3) nonprofit corporation. Notwithstanding any provision of this Lease to the contrary, Tenant shall pay all real estate taxes or payments in lieu of real estate taxes imposed on the Project or on Landlord or Tenant solely as a result of Tenant's use or occupancy of the Project. 32. RENEWAL OPTION. Provided Tenant is not in default under this Lease either at the time notice is given or at the expiration of the then current term of this • Lease, Tenant shall have the right and option, exercisable by giving Landlord written notice ("Notice of Extension") thereof at least 180 days but no more than 360 days prior to the expiration of the then current term of this Lease, to extend the term of this Lease -24- • for one period of 55 months, so if the renewal option is exercised the renewal period will end July 31, 2027. Upon the giving of the Notice of Extension, the term of this Lease shall automatically be extended as provided in the preceding sentence, and no further document or instrument evidencing the extension of this Lease shall be required to be executed. In the event Tenant fails to give Notice of Extension at the time and manner herein provided, this Lease shall automatically terminate as of the end of the then current term, and Tenant shall have no further right or option to extend this Lease. When used in this Lease, the phrase "term of this Lease" or similar phrases shall mean and refer to the original term of this Lease and the extended term thereof. The extended term of this Lease shall be upon and subject to all of the terms, covenants, agreements, provisions and conditions of this Lease, including the payment of Rent as calculated pursuant to Sections 4 and 5 of this Lease, but excluding this Section 33. 33. EXCLUSIVE USE. With the exception only of District 270, Landlord shall not, without Tenant's prior written consent, lease space in the Building to or allow the use of such space by, any Other User (including Landlord) who would use such space for the purpose of presenting a theatrical production for children or offering theater education programs for children. Notwithstanding the foregoing, upon the termination of Tenant's right of possession of the Leased Premises pursuant to the provisions of Section 23 of this Lease, this Section 34 become null and void and be of no further force or effect. 34. LANDLORD'S RULES AND REGULATIONS._Tenant agrees that it is shall comply with, and cause its employees, agents and guests to comply with, Landlord's Rules and Regulations for the Hopkins Center for the Arts which Rules and Regulations are attached hereto as Exhibit G to this lease, provided that such Rules and Regulations are applied to Tenant and all Other Users of the Project on a uniform, nondiscriminatory basis and such Rules and Regulations do not conflict with the express provisions of this Lease. Landlord agrees that the Rules and Regulations for the Hopkins Center for the Arts shall apply to all Other Users of the Project (including Landlord and Occasional Users) and shall prohibit any Other User (i.e., other than Tenant) from entering the Control Booths for the Theater and the Multi -Use Performance Hall or the catwalk area above the areas of the Theater unless Tenant consents to such entry. 35. TENANT'S TECHNICAL SUPPORT FOR OPERATION OF THEATER. It is acknowledged and agreed that Tenant shall own and maintain on the Leased Premises the sound, lighting and other equipment identified in Exhibit F attached hereto and incorporated herein by reference (said equipment owned and maintained by Tenant, and all replacements and additions thereto being herein referred to as "Tenant's Theater Equipment"). It is also acknowledged that Tenant's Theater Equipment shall be maintained and together with related equipment owned and maintained by Landlord, operated by personnel furnished and employed by Tenant. All Other Users (including Landlord and Occasional Users) who use the Theater or the Multi -Use Performance Hall shall be required to contract with Tenant, on reasonable terms acceptable to Tenant and such Other Users, for the use and operation of Tenant's Theater Equipment and such related equipment of Landlord, and Tenant shall throughout the Term of this Lease cause Tenant's Theater Equipment and personnel to be made available for use by Other Users as -25- needed for the use of the Theater and Multi -Use Performance Hall, subject to such reasonable contract terms. The Tenant purchased and provided approximately $130,000.00 of equipment (other than Tenant's Theater Equipment") for use in the Hopkins Center for the Arts prior to it's opening. This equipment purchased by Tenant is identified as "Project Equipment." in Exhibit I to this lease. Notwithstanding anything in this Section 35 or in any other provision of this Lease to the contrary, even though Tenant hereunder shall retain ownership of such Project Equipment during the Term of this Lease, upon termination of this Lease, whether such termination occurs at the end of the Term or sooner, such Project Equipment shall become the property of Landlord and shall remain at the Project. If Tenant desires to replace any of the Project Equipment identified in Exhibt I, whether due to inoperability or obsolescence, Tenant may do so provided that the replacement equipment is of similar type and quality (the "Replacement Equiprment"). Any Replacement Equipment will become Project Equipment, as defined in this Section, and shall also revert to Landlord's possession at the termination of this Lease. Tenant warrants that any Replacement Equipment installed will be free and clear of any liens or enucmbrances prior to the termination of this Lease. 36. COMPLIANCE WITH MINN. STAT. SEC. 16A.695 The parties hereto agree that notwithstanding any other provision of this Lease to the contrary, the following provisions shall apply: a. Landlord covenants that it has the authority to enter into and execute this Lease under Minn. Stat. Secs. 471.15 and 471.191. b. Tenant's use of the Leased Premises under Section 7 above for "performing arts production, educational purposes and related and incidental uses" shall constitute the "Governmental Program" within the meaning of Minn. Stat. Sec. 16A.695 to be carried out by Tenant from the Leased Premises. C. Landlord acknowledges that it has received Tenant's initial program evaluation report. Tenant covenants that Tenant will provide Landlord with an annual budget showing forecasted program revenues and expenses for each upcoming Activity Year of the Tenant for the Governmental Program to be carried out by Tenant from the Leased Premises. Nothing in this Section 37 or elsewhere in this Lease shall give Landlord the right to approve the performances Tenant selects to produce from the Leased Premises. d. In the event that Tenant terminates or changes the Governmental Program to be carried out by Tenant from the Leased Premises, Landlord may upon at least thirty (30) days written notice to Tenant and opportunity to cure, terminate this Lease in accordance with the provisions of Section 23 b. above. Tenant's use of the Leased Premises shall comply with the requirements of Section 2.03 of the grant agreement to be entered into by -26- • n U Landlord with the State of Minnesota, Department of Administration, a copy of said Section 2.03 being attached hereto as Exhibit E. e. In accordance with the provisions of Section 18 above of this Lease, the employees, agents and representatives of Landlord and 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. f. For a period of one (1) 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. IN WITNESS WHEREOF, the parties hereto have executed this Lease Agreement as of the day and year first above written. LANDLORD CITY OF HOPKINS Its Its TENANT STAGES THEATRE COMPANY LIM -27- Its Its 0 EXHIBITS A Legal Description B Spaces — Building Map C Shared Income Lease Provisions D Meet and Confer Criteria E Section 2.03 of grant agreement F Tenant's Theater Equipment G Rules and Regulations H Payment Schedule . I Project Equipment C, -28- • • 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. -29- • • 0 -30- 0 m CS C3 0 -31- • SHARED INCOME LEASE PROVISIONS EXHIBIT "C" SHARING INCOME is U A. During Meet and Confer or at a later time, within the Stages Yes, for mid stage Theatre Company's (STC) secured time, there is a day Deanne Dance Company without a theater performance and Landlord can rent the No, for front of curtain Recital space to an Occasional User (OU). Hopkins Dance Center Late May No B. Same scenario as above for Hopkins School District (HSD), No, for mid stage On Your Toes School of Dance or Landlord programming No Recital Full No, for front of curtain Library Foundation of Hennepin County Varies No C. If STC seeks to schedule a performance during secured time Yes, for mid stage at Meet and Confer and relinquishes the date for OU. Yes, for front of curtain D. Same as above but relinquishes it to HSD or Landlord for No, for mid stage Landlord programming No, for front of curtain E. The Landlord's clients listed below are in a special category No, for mid stage and are not subject to sharing income with STC. No, for front of curtain -32- Deanne Dance Company June No Recital Full Hopkins Dance Center Late May No Recital Full On Your Toes School of Dance June No Recital Full Library Foundation of Hennepin County Varies No Lecture Front 5/6 evenings and mornings combinations Mainstreet School of Performing Arts June No Graduation Front only St. John's Catholic School Spring No Play Mid Not Holy Week r abutting Hopkins spring break Hopkins Raspberry Association 2nd Thursday in No Coronation Front/mid Jul Intermediate District 287 Last Monday in No Staff Mtg Front August Ubah Medical Academy -Charter HS I Early June I No I Graduation I Front -32- • EXHIBIT D: MEET AND CONFER CRITERIA If the meet -and -confer process fails to resolve all scheduling conflicts among the major tenants in the Hopkins Center for the Arts (Stages, District 270), then the City of Hopkins as landlord shall apply the following criteria to resolve the conflicts. The agent of the City 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 have priority over 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 4 3 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. Financial/In-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 -33- • • EXHIBIT E SECTION 2.03 OF GRANT AGREEMENT 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 (i) 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. -34- • STAGES THEATRE COMPANY Theatre Equipment Exhibit F 23 -Apr -97 Llylllllly .. LLJulvl 1141 IL. ___....-..--1 --- F -- Instrument Watts # Instrument r 11 Century 6" Fresnel 500w 3 Telex PH1 Headsets 1 Century 6" Fresnel 500w 3 Telex Control Boxes 1 Kliegl 6" Fresnel 500w 2 Realistic PZM Microphones 8 Altman 6 x 9 Leko (P) 750w 3 Crown 30GPB PZM Microphones 1 Altman 3'/" Leko 400w 1 Telex WT -25 Body Microphones 4 Century 6x4 Wide -Angle Leko eko 750w 2 Realistic Cardioid Dynamic Microphones 1 Century 3'/2" Leko 400w 1 Altec Lansing 8 Channel Sound Mixer 10 Kliegl 6 x 9 Leko (P) 750w 1 12 -Channel Diamond Pro 12-3 Studio Master Mixer 9 C.C.T. Minuette Leko (P) 500w 1 BGM Professional Power Amp 250C 15 Par 64 1000w 2 Home made 3 -way Speakers 6 Century 18" Scoop 500w 2 Pevey 3 -Way H5H Speakers 1 Century 24" Beam Projector 750w 1 JVC Stereo Cassette Deck TD -W201 2 Major 8 x 15' Strip 300w 1 Technics Compact Disc Player SL -P1 3 Altman 6x6' 150w 1 Teac X-3 Reel -to -Reel Player Recorder 1 Mini Vari-strobe 650w 1 AB International Precedent Series 600A Amp 2 14' Boom I TOA Powered Mixer Mx 104 3 18" side arm 1 Telex Wireless Microphone Receiver FMR-25TD 2 6" Barn door 1 Telex US -2000 Master Channel Splitter Box 4 6" Snoot 1 Telex 2 -Channel Power Supply PS -2L 1 24" paper cutter 1 RCA Tape Deck Radio RP -7824A 1 Sharp Stereo Cassette Deck RT -10 1 American DJ 3 Position Remote Foot Switch 1 American DJ 4 -Channel Ch Controller 2 Electrovoice #644 microphones • 1 Black Shark -tooth scrim 20'x 48' 1 Sears 1/2" electric drill 1 Porter cable Pneumatic finish nailer 1 Sears Radial arm saw 1 Rosco Fogger 1 Wagner heat gun -35- 1 2 Sears Craftsman Jig Saw 1 Ryobt Corded Screw Guns 1 1 Wlier soldering iron 1 2 Sears Shop Vac 5.25 hp 1 1 Dewalt 41 /2' angle grinder 1 1 Milwaukee corded screw gun 1 2 Arrow electric staplers 1 1 Dayton shop vacuum 1 1 Shopsmith 2 1 AMT14" band saw 1 1 2 • • -36- Makita Cordless Drill B&D 3/8" electric drill Brother Sewing Machine Delta 1/2" Tabletop drill press 6" Belt/9" disc Sander "True Sander" 3/4hp 7-1/4" Skill 2-3/4 hp circular saw Sears Reciprocating Saw B&D 10" miter saw C -H 1/4" Crown Pneumatic Stapler Dewalt cordless screw gun C -H 1 qut spray gun 8" step ladders Exhibit G Use of Space Rules and Regulations 1. ALCOHOL POLICY. The Tenant/Renting Organization/Individual shall not sell, serve, or allow alcoholic beverages of any kind to be sold, brought into, or served upon the premises except as permitted by the Hopkins Center for the Arts Liquor Policy. 2. CATERING. The Tenant/Renting Organization/Individual shall not sell, serve, or allow food of any kind to be sold, brought into or served upon the premises except as permitted by the Hopkins Center for the Arts Catering Policy. 3. DECORATIONS. All decorations must be approved in writing two weeks in advance of any function. The following items are NOT ALLOWED: Nails or screws Confetti and/or glitter No helium balloons Candles that are not enclosed No electrical circuits may be altered All decorations must be put up without defacing the building. All decorations must meet fire code regulations. Candles must be enclosed in glass. Nothing may be attached to the Theater stage without written permission from the Facility Director, Scheduling Coordinator, or Technical Services Director. 4. CLEAN UP. The Tenant/Renting Organization/Individual shall clear all areas after use, unless otherwise approved by the Facility Director or Scheduling Coordinator. The Hopkins Center for the Arts and the City of Hopkins are not responsible for any items left beyond the contracted rental period. The Renting Organization/Individual shall also leave all areas in a reasonably clean and orderly condition at the end of the term of this agreement. If areas are not cleared and/or cleaned within the contracted time period, the Hopkins Center for the Arts and the City of Hopkins will employ a crew for this purpose and bill the Tenant/Renting Organization/Individual. BROADCASTS. All broadcasts, telecasts, tape recorders, films, etc. in the Hopkins Center for the Arts shall have prior written consent from the participants and the Hopkins Center for the Arts. A duplicate of the original of such executed consent shall be given to the Hopkins Center for the Arts prior to the event. If consent is given, the Tenant/Renting Organization/Individual shall furnish and install all equipment necessary for the broadcast and for the control booth other than that furnished by the Hopkins Center for the Arts. 6. CONCESSIONS. The Tenant/Renting Organization/Individual shall not sell, serve, or allow cigarettes, cigars, beverages, liquor, food, gum, and refreshments of any kind to be sold, brought into or served upon the premises except as permitted by the Hopkins Center for the Arts. The Hopkins Center for the Arts must approve all concessions in writing. The Hopkins Center for the Arts does not allow popcorn, or red punch. • 7. CONDUCT. The Tenant/Renting Organization/Individual is responsible for the conduct of its guests, representatives, casts, students, and workers while in the Hopkins Center for the Arts. -37- • 8. LOADING — UNLOADING. Equipment must be brought in through either the Theater loading dock, the Studio loading area, or main entrance doors. Vehicles must be moved when unloading and loading is complete. Vehicles will be towed at Renters expense, if parked in loading zone area or in assigned parking spaces. Driving or parking on the sidewalk is not allowed. 9. CITY, COUNTY, STATE AND FEDERAL LAWS. The Tenant/Renting Organization/Individual in conduction of any performance, public or private meeting or in giving any lecture, concert, class, or other event shall conform to, comply with and abide by all laws of the United States and the State of Minnesota, the rules and regulations of all Federal and State Boards and Bureaus, the ordinances of Hennepin County, the City of Hopkins and the regulations of the Fire Departments, Board of Health, and Police Department. Alcohol Policy 1. All Tenants/Renting Organizations/Individuals distributing and/or consuming alcohol in the Hopkins Center for the Arts must comply with and abide by all Federal, State and Municipal laws and ordinances. 2. Beer, wine, and champagne may be served by the Tenant/Renting Org./Individual if the • event is by invitation only and closed to the public, and there is no monetary exchange for the alcohol or the event. Monetary exchange includes donations, tips, and advance or at the door ticket sales. The Tenant/Renting Organization/Individual must meet special insurance requirements. 3. If the Tenant/Renting Org./Individual would like to have a cash bar to serve alcohol, or to charge admission to an event, the Renting Organization/Individual is required to hire the services of one of the Arts Center approved caterers. This caterer must provide both the food and alcohol. Please request this list if you will be serving alcohol at a cash bar. 4. If alcohol is being served security must be present at the event. The Hopkins Center for the Arts will designate and arrange this service from the time the distribution of alcohol begins until the end of the event. The Tenant/Renting Organization/Individual will directly pay the Arts Center at the hourly rate of $25.00 per hour, minimum four hours, per security personnel. The security fee is subject to change. The Hopkins Center for the Arts reserves the right to determine the number and placement of security personnel. 5. Alcoholic beverage service will end no later than 11:30 p.m. 6. Alcohol must stay in the designated rental space. The Renting Organization/Individual will be responsible for making sure its guests follow this policy. • WE 0 Food Catering Policies The catering kitchen at the Hopkins Center for the Arts is intended for catering purposes only. This area is not intended to be used for cooking of any food products. 2. The following products are prohibited in the Hopkins Center for the Arts: Red punch Popcorn Chewing Gum 3. Catering areas must be left in a clean condition following each event. 4. Food and beverages must be kept in the rented room or space. Food and beverages are not allowed in the theater or dance studio. 5. All loading and unloading must be done in the designated loading zone. The loading zone is not a parking area. All trucks must be unloaded and then parked in a designated parking zone. 6. Deliveries of supplies must be approved by and arranged with the Scheduling Coordinator. 7. Supplies must be removed by the event end time unless approved by and arranged with the Scheduling Coordinator. • 8. The Hopkins Center for the Arts and the City of Hopkins are not responsible for articles left unattended or overnight. 9. The Hopkins Center for the Arts is a non-smoking facility. The caterer's employees will abide by this policy and smoke only in the designated smoking area. 10. The caterer shall comply with all laws and regulations related to the preparation and disposal of food and shall procure at its expense all permits and licenses required by law or regulation for the operation of catering services. The caterer will furnish the Hopkins Center for the Arts with a copy of these permits or licenses. 11. Caterers will at all times have, and keep in force, at its expense, workers' compensation and employers' liability, automobile liability, and professional liability insurance covering any injury caused by any act or omission on the part of the caterer in the performance of or with relation to any of the work or services provided to be performed or furnished by the caterer. The caterer will furnish the Hopkins Center for the Arts with a copy of its certificate of liability insurance. 12. Caterers shall be deemed to be an independent contractor and not an employee of the Hopkins Center for the Arts, or the City of Hopkins. Any and all agents, servants, or employees of the contractor or other persons, while engaged in the performance of any work or services required to be performed by the Hopkins Center for the Arts, or the City of Hopkins, its agents, servants, employees or other persons, shall in no way be the obligation or responsibility of the Hopkins Center for the Arts, or the City of Hopkins. The contractor, its agents, servants, or employees shall be entitled to none of the rights, privileges or benefits of the Hopkins Center for the Arts or the City of Hopkins. -39- n U HOPKINS CENTER FOR THE ARTS Payment Schedule Exhibit H Schedule of Monthly Rent Payments based on Stages Rent:,," on hl JAM nth y Year of STC Fiscal Year Monthly Cumulative Payment Payments August* 2012 12,488.05 September* Nov & December $24,976.10 12,488.05 $12,488.05 12,488.05 December 2012 January 12,795.84 • February 12,795.84 March 2013 153,550.08 12, 795.84 $12,795.84 1 2014 158,156.52 13,179.71 2 2015 162,901.20 13,575.10 3 2016 167,788.20 13,982.35 4 2017 172,821.84 14,401.82 5 2018 178,006.44 14,833.87 6 2019 183,346.68 15,278.89 7 2020 188,847.12 15,737.26 8 2021 194,512.56 16,209.38 9 2022 200,347.92 16,695.66 10 Lease term ends 12/31/2022 2023 206,358.36 17,196.53 11 Renewal option term_ commences 1/01/23 2024 212,549.16 17,712.43 12 2025 218,925.60 18,243.80 13 2026 225,493.32 18,791.11 14 2027 135,483.88 19,354.84 15 Renewal option term ends July 31, 2027 Schedule of Monthly Rent Payments based on Stages Theatre Company's Fiscal Years Month STC Fiscal Year Monthly Cumulative Payment Payments August* 2012 12,488.05 September* 12,488.05 October* 12,488.05 November 12,488.05 December 12,488.05 January 12,795.84 • February 12,795.84 March 12,795.84 - April 12, 795.84 • • • May June July Month August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February March April May June July August September October November December January February STC Fiscal Year 2013 2014 2015 2016 -41 - 12,795.84 12, 795.84 12,795.84 152,011.13 Monthly Payment 12,795.84 12,795.84 12,795.84 12,795.84 12,795.84 13,179.71 13,179.71 13,179.71 13,179.71 13,179.71 13,179.71 13,179.71 156,237.17 13,179.71 13,179.71 13,179.71 13,179.71 13,179.71 13,575.10 13,575.10 13,575.10 13,575.10 13,575.10 13,575.10 13,575.10 160,924.25 13,575.10 13,575.10 13,575.10 13,575.10 13,575.10 13,982.35 13,982.35 13,982.35 13,982.35 13,982.35 13,982.35 13,982.35 165,751.95 13, 982.35 13, 982.35 13,982.35 13,982.35 13, 982.35 14,401.82 14,401.82 152,011.13 Cumulative Payments 308,248.30 469,172.55 634,924.50 March 14,401.82 April 14,401.82 May 14,401.82 June 14,401.82 July 14,401.82 170,724.49 Month STC Fiscal Year Monthly Payment September 14,401.82 October 14,401.82 November 14,401.82 December 14,401.82 January 14,833.87 February 14,833.87 March 14,833.87 April 14,833.87 May 14,833.87 June 14,833.87 July 14,833.87 175,846.19 August 2018 14,833.87 September 14,833.87 October 14,833.87 November 14,833.87 December 14,833.87 January 15,278.89 February 15,278.89 March 15,278.89 April 15,278.89 May 15,278.89 June 15,278.89 July 15,278.89 181,121.58 August 2019 15,278.89 September 15,278.89 October 15,278.89 November 15,278.89 December 15,278.89 January 15,737.26 February 15,737.26 March 15,737.26 April 15,737.26 May 15,737.26 June 15,737.26 July 15,737.26 186,555.27 August 2020 15, 737.26 • September 15,737.26 October 15,737.26 November 15,737.26 December 15,737.26 -42- 805,648.99 Cumulative Payments 981,495.19 1,162,616.77 1,349,172.03 January 16,209.38 • February 16,209.38 March 16,209.38 April 16,209.38 May 16,209.38 June 16,209.38 July 16,209.38 192,151.96 Month STC Fiscal Year Monthly Payment August 2021 16,209.38 September 16,209.38 October 16,209.38 November 16,209.38 December 16,209.38 January 16,695.66 February 16,695.66 March 16,695.66 April 16,695.66 May 16,695.66 June 16,695.66 July 16,695.66 197,916.52 August 2022 16,695.66 September 16,695.66 • October 16,695.66 November 16,695.66 December 16,695.66 January 17,196.53 February 17,196.53 March 17,196.53 April 17,196.53 May 17,196.53 June 17,196.53 July 17,196.53 203,854.01 August 2023 17,196.53 September 17,196.53 October 17,196.53 November 17,196.53 December 17,196.53 January 17,712.43 February 17,712.43 March 17,712.43 April 17,712.43 May 17,712.43 June 17,712.43 July 17,712.43 • 209,969.66 August 2024 17,712.43 September 17,712.43 October 17,712.43 -43- 1,541,323.99 Cumulative Payments 1,739,240.51 1,943,094.52 2,153,064.18 November 17,712.43 December 17,712.43 January 18,243.80 February 18,243.80 March 18,243.80 April 18,243.80 May 18,243.80 June 18,243.80 July 18,243.80 216,268.75 2,369,332.93 Month STC Fiscal Year Monthly Cumulative Payment Payments August 2025 18,243.80 September 18,243.80 October 18,243.80 November 18,243.80 December 18,243.80 January 18,791.11 February 18,791.11 March 18,791.11 April 18,791.11 May 18,791.11 June 18,791.11 July 18,791.11 222,756.77 2,592,089.70 • August 2026 18,791.11 September 18,791.11 October 18,791.11 November 18,791.11 December 18,791.11 January 19,354.84 February 19,354.84 March 19, 354.84 April 19,354.84 May 19, 354.84 June 19,354.84 July 19,354.84 229,439.43 2,821,529.14 CJ * Note: Payments in August, September, and October of 2012 are applied to the previous lease with the City of Hopkins. -44- HOPKINS CENTER FOR THE ARTS Project Equipment Exhibit I 1. Architectural Lighting Control System, main stage a. 1 ea L86 ARW Control Program Module b. 5 ea DAS 3100-4 Preset Station c. 2 ea DAS -LCD House control station 2. Dimmer Rack, main stage a. 2 ea SR48 Dimmer Enclosure b. 91 ea D20 Dual 20a Dimmer Module c. 5 ea Air Flow Module 3. Electrical Raceways, main stage a. 1 ea Connector Strip, 46'-0" long with 30 ea 2 p+g, 18" pigtails b. 2 ea Connector Strip, 46'-0" long with 44 each 2p+g, 18" pigtails • c. 2 ea Connector Strip, 12"-0" long with 7 ea 2 p+g, 18" pigtails d. 2ea Flush Mount 4 Circuit Outlet Box e. 4 ea Surface Mount 6 Circuit Outlet Box f. 2 ea Pipe Mount 4 Circuit Outlet Box with 42" pigtails g. 3 ea Flush Mount 3 Circuit Outlet Box h. 14 ea Pipe Mount 3 Circuit Outlet Box with 36" pigtails i. 1 ea Pipe Mount S Circuit Outlet Box with 24" pigtails 4. Lighting Instruments, main stage a. 44 ea ETC Source 426jr Ellipsoidal b. 14 ea ETC Source 436jr Ellipsoidal c. 9 ea ETC Source 419 Ellipsoidal d. 7 ea ETC Source 426 Ellipsoidal e. 12 ea Altman #65Q 6" Fresnel 5. Lighting Instruments, studio a. 3 ea ETC Source 426jr Ellipsoidal b. 18 ea ETC Source 436jr Ellipsoidal 6. Sound Boards, main stage a. 1 ea CS -3 DDA 24X4 Audio Console • 7. Sound Boards, studio a. 1 ea Diamond Pro Studio Master (8/3) -45- 8. Other Sound Equipment, main stage: a. 3 ea GT3020 GAD 2 -Way Speaker b. 4 ea V -900 Crest Power Amp c. 2 ea V -450 Crest Power Amp d. 3 ea MQX-2310 Dual 31 Band Equalizer e. 2 ea PD -3 A.R.T. Delay f. 1 ea TX -37 A Gentner Transmitter g. 15 ea RX -IA Gentner Receiver h. 1 ea 150'24X4 Snake 1. 8 ea DP-D3F4 Microphone Junction Box J. 1 ea MDX 2100 Composer, Comp Limiter k. 2 ea GAR 37 RAXXESS Amp Rack 1. 1 ea PD8 Rack Mount Power Strip m. 1 ea MS 222 Clear Com Base Station n. 1 ea KB -IIIA Speaker Station o. 7 ea WP2 Wall Plate p. 2 ea CC -250 Muff Headset q. 4 ea CC -85 Muff Headset r. 6 ea RS -502 2 Channel Belt Pack s. 6 ea KB -111 A Speaker Station t. 2 ea dbx 1231 Graphic Equalizer . u. 3 ea PLX1202 QSC Power Amps v. 7 ea IMPACT 50 Turbosound Speaker 9. Other Sound and Lighting Equipment, studio a. 2 ea V -650 Crest Power Amp b. 2 ea DS -15 15" 2 Way Speaker c. 1 ea SR24 Dimmer Enclosure d. 24 ea D20 Dual 20a Dimmer Module e. 1 ea L86 ARW Control Program Module f 3 ea DAS 1002P House Control Station g. 14 ea Pipe Mount 5 Circuit Outlet Box with 18" Pigtails (3 ea 2 p+g and 2 ea GTL) h. 4 ea Flush Mount 2 Circuit Outlet Box 1. 1 ea Express 24/48 Memory Control Console J. 1 ea Color Monitor k. 2 ea QSC MPX 1202 Amp 1.2 ea Cerwin Vega 15" 2 -way speaker 10. Curtains a. 2 ea Traveler 20 oz. velour 24'-0"h x 28'-0" w b. 2 ea Leg 20 02 velour 24'-0" h x 18"-0" w c. 1 ea Black Scrim 24'-0" h x 54'-0" w • d. 1 ea White Scrim 24'-0" h x 54'-0" w -46-