5.2. SR 03-14-2005
Item 5.2.
MEMORANDUM
TO:
Mayor and City Council
FROM:
Patrick Klaers, City~ministrator
March 14, 2005 i/j;--
DATE:
SUBJECT:
Bailey House Lease
The City Council needs to review the lease agreement for the Bailey house. This lease (see
attachment) is between the city and Harvest Evangelism, Inc., dba, Love Elk River.
The lease began on May 15, 2004 and is good for a one-year period. A 60-day written notice must be
provided to terminate the lease. The agreement provides for a lease amount of $450 per month from
May 15, 2005 through May 15,2006. The tenants at the Bailey house have not been a problem for
the city or the library. The city invested some money in the Bailey house (i.e. refrigerator) prior to
leasing it to Love Elk River. A second year of lease revenue will help recover some of these
expenses.
It is recommended the City Council continue with this lease agreement until spring 2006. Assuming
the library expansion project will take place in 2007, the city should plan for the Bailey house to be
demolished and for the parking lot to be expanded in the summer/fall of 2006. In this manner,
adequate parking will be provided while the library expansion takes place.
It should be noted that 5th Street, in front of the Bailey house property, will be part of the 2005
pavement rehabilitation program.
Recommendation
It is recommended that the city continue the existing lease agreement with Harvest Evangelism Inc.
for the Bailey house. (The City Council can determine the actual termination date of the lease in
February or March of 2006.)
S:\Council\Pat\200S\ Worksessions\Bailey House 02 14 OS.doc
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BAILEY BO'D'SE LEASJ:
(f,
It is agreed this _day of /l:) - Me<V ,2004 by and between The City of Elk
River, Landlord, and Harvest Evangelism Inc. d/b/a ~ove Elk River. COllectively,
Tenant:
MA y 1 9 200;
That the Landlord hereby leases to the Tenant, and the Tenant hereby leases
from the Landlord, the house located at 1217 stn S~reet NW, Elk River MN 55330. {the
~Premises~J. Tenant shall not have access to the detaehed garage on the Premises
until July 1, 2004,
In consideration of the mutual promises of the parties herein and upon the
terms, provisions, and conditions fOllowing;
1. LEASE TERM.
The term of this Lease shall be one (ll year coznmencing on the /5~aY of
f"lf\'{ . 2004, to and including the dayof rYlA'-( is. 2005. Ifnotterminated
at th@ end of the initial lease term as hereinafter provided, chis Lease shall
automatically renew for successive sixty day terms. If either party wishes to
terminate the ~ease at the end of the initial lease term. or at the end of any t~rro
thereafter. written notice must be given 60 days prior to the end of the Lease terro.
2 _ RENT .
Tenant shall pay as rent for the Premises the sum of Four Hundred Twenty-five
dollars {$42S.00l each month for the first 12 months that Tenant rents th~
pl."emi.$es, and $450.00 ea.ch month for the 13<h throu~h 241:h months that Tenant rents
the Premises. Thereafter, Landlord shall have the right to increase the amount of
monthly rent at the beginning of each renewal term by giving Tenant written notice
of the increased rent at least 60 days prior to the end of the then current LeaSE!
term.
Rent shall
2004. and
shall he paid at all times in advanCe for the mon.th, with intere$t on all
delinquent rental at the maximum lawful rate allowed under the law of Minnesota
from date due, and all sums shall be payable to the Landlord at 13065 Orono
Parkway. Elk River, MN, 55330. In the event Tenant has not paid the monthly rent
by the fifteenth day of the month an additional late fee of $25.00 shall be due.
,#-
be due on the ~t day of each month beginning on
rot-.L 16"
3. USE.
Tenant shall use the Premises to provide transitional or emergency housing only
ano shall not permit the Premises to oe occupie~ for any purposes or permit any act
which shall invalidate any policy of insurance on the premises or increase the fire
hazard. Tenant shall not permit any pets or other animals to l:1e kept on the premises,
Tenant further agrees not to permit any activities t.hat WOu.ld interfere with Lhe
public's use or enjoyment of the neighboring
library .
4. CARE OF PREMISES.
Tenant shall USe due care to maintain the Premise~ in good condition and Shall
surrender possession of the Premises to Landlord at the expiration of this Lease in as
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(2) Tenant tails to pay th~ rent when due;
(3) Tenant fails to pay utility charges when due;
{4) Landlord gives Tenant the requireo notice to vacate and Tenant
fai16 or refuses eo ~ove out by the time specified by Landlord in
the notice;
(5) Tenant fails to maintain or repair the Premises in the manner
stated in this Lease;
(6) Tenant permits pets or other animals to b@ kept on the P~emi$es;
(7) Tenant creates a clear and Present danger to others as described
in paragraph 11 below.
(S) Tenant permits or fails to prevent conduct by Subtenants in
violation of this Lease.
b. Examples of remedies available to Landlord if Tenant defaults include the
following:
(1) If Tenant fails to pay the rent or other amounts when due, Landlord
may, upon three days' prior written notice to Tenant. terminate
this Lease;
(2) If Tenant fails to maintain the Premises pursuant to the provisions
of this Lease, Landlord may terminate this Lease upon ten days'
prior written notice to Tenant. Said notice shall specify the acts
or omissions of Tenant which constitute the default: and, if remedied
by Tenant within said ten-day periOd, the Lease shall continue. If
Landlord is required to give notice of default for Tenant's failur~
to maintain the Premises more than once wi thin any six-month periOd,
Landlord shall have the rignt to terminate the Lease by giving
Tenant ten days' prior written notice of termination.
(3) If Tenant fails to comply with th~ provisions of paragraph 11 of
this Lease with regard to the health and safety of others, Landlord
may terminate this Lease l,lpon tmee days' written notice of te:rtr\ination
to Tenant.
c. In the event Landlord terminates this Lease due to a default by Tenant,
Landlord may bring a court action to:
{l} Require Tenant to vacate the Premises; and/or
(2) Recover any un~aid rent or other amounts owed by Tenant; and/or
(3) RQcover actual damages suffered by Landlord as a result of Tenant's
default, including reasonable attorneys' fees.
10. DELAY OF POSSESSION.
If Landlord is unable to give Tenant possession at the beginning of the term,
the r@nt shall be rebated on a pro rata basis until possession can be given, which
rebated r@nt shall be accepted by Tenant as full settlement of all damages occasioned
by said delay and if possession cannot be delivered at the beginning of ~aid term,
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good repair and condition as the same are now, or may hereafter be placed. (Ordinary
wear and tear. non-negligent damage by fire. or the elements exceptea). without
limiting th@ for&going. Tenant shall (a) comply with all obligations primarily imposed
upon tenants by applicable provisions of building and housing codes materially affecting
health and safety: (b) keep t.l1at. part of the Premises that the Tenant occupies ana usee
as clean and safe as the condition of the Premises permit; (c) di3po:le from the
Premises all ashes, rubbish, g~rbagQ, and other waste in a clean and safe manner; (d)
keep all plumbing fixtures in the ~remises as clean as their condition permits; (e)
use in a reasonable manner all electrical, plumbing. sanieary, heating, ventilating,
air conditioning and other facilities and appliances in the Premises: (El not deliberately
or negligently destroy, deface, damage, impair or remove a part of the Premises or
knowingly permit a person to do so; (g) actLn a manner that will not disturb a
neighbor's peaceful enjo:yment of their Premises. Tenant shall not make any alterations,
additions, improvements or structural alterations to the Premises without Landlord'~
prior written consent, which COnsent may be granted or withheld in Landlord's sole
discretion.
5. ASSIGNMENT AND SUBLETTING.
Tenant shall not assign the Lease without the prior written consent of Landlord,
which consent may be granted or withheld in Landlord's sole discretion.
Tenant may sublet the Premises or a portion thereof for the purposes set forth
in Section 3 of this Lease. Tenant must require that all Subtenants agree to the rights
of Landlord. terms and Restrictions $et forth in this Lease and Tenant must indemnify,
defend, and hold harmless Landlord from the claims of any subtenant. For the purposes
of this Lease "Subtenant" shall mean any person occupying or using the premises under
any type of agreement wi th 'I'en~nt. Tenant. shall r..ave all Subtenants sign an agreement
substantially in the form of Exhibit A.
6. U'I'It.:tTUS.
Tenant shall pay for all utilities including, but not limited to telephone,
water. electric and garbage fees .
7 . RIGHT TO ENTER.
Tenant shall allow Landlord. its agents or workmen, at reasonable times. at
Landlord's discretion. to enter the Premise~ to inspect the ~ame. make repairs or
i~p~ovements, or show the Premises to persons desirous of leasing same. Landlord
shall have the right to enter upon ana into the Premises to meet any apparent
emergency.
8. ~O ORAL CHANCES.
No statement, representation, or promise with reference to this Lease or the
Premises, or any repairs, alterations, or improvements. or the change in the term of
t.l1ilil Lease shall be binding upon either of the parties unless in writing and signed by
both L$nelord and Tenant.
9. DEFAULT.
If Tenant fails to comply with the terms of this Lease. Landlord may pursue
all remediQs availabl~ to Landlord under Minnesota law.
a. Examples of defaults by Tenant include the following:
(1) Tenant vacateli the Premises without giving Landlord the required notice;
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Tenant may, upon at least five days written notice to Landlord, terminate the ~ease
and upon termination, Landlord shall r-etlirn all prepaid rent. and sec\lrity deposit to
Tenant.
11. RESTRICTIONS.
Tenant shall not: la) obstruct the halls or stairways. shall only use the same
for pa:36Clge to and from Premises; (b) cover or obstruct a.ny windows that admit light
into halls or passageways~ (e) make or permit any di~turbing noise in the building by
themselves, their agents. or guest5; (d) do or permit anything by such persons that
will interfere with the rights, comforts or convenience of other Tenants, guests or
the public; (e) shall not cr@ate or maintain a threat constituting a clQar and pre$en~
danger to the health and safety of other Tenants, the Landlord, the Landlord' 5
employees, Or other persons within 1.000 feet of the Premises. A clear and present danger to
the health and safety of others includes, but is not limited to:
a. Physical assault 01' the threat of physical assault;
b. illegal use of a fireann or other weapon, the threat to use a firearm or other weapon illegally, or the pQssession
of an illegal fl.rearm; and
c. Possession ofa controUed substance other than prescription medication which was obtained directly from or
pursuant to a valid prescription.
Tenant and Tenant's iilgents, employees and guests shall obey all rules and
regulations as the Landlord shall from time to time establish.
12 . WAIVER OF CLAIMS BY TENANT.
Except as prohibited by Minnesota law. Tenant agrees to make no claim. and
hereby expressly waives any and all claims against Landlord for or on account of any
personal injury sustained or any loss or damage to property caused by fire, water
deluge, overflow, or explosion, however arising or caused, or being within the
Premises, and further waive$ any claim for any loss ot any articles by theft or from
any other cause from the ?remises.
13 . INSURANCE.
~enant agrees Co carry General public liability insurance against
claims for bodily injury, death or property damage occurring on, in or about
the LQased Prernisesand the adjoining streets, sidewalks and passageways,
w;i.th J..imits of not less than $500,OOQ.00 with reGpect to bodily injury or
d$aeh to anyone person, not less than $500,000.00 with respect to injury or
death to more than one person in anyone accident, and not less than $500,000
with respect to property damage. Tenant further a~ree~ to carry a policy
insuring personal property to be used. stored or otherwise present on the
Pr~mieee. Landlord will not be liable for damages as expressed iI~ paragr~ph
12 ~Waiver of Claims by Tenant,.
14. FIRE OR CASUALTY DA.MA.GE
If the Premises are damaged or destroyed by fire or Casualty to an extent that
enjoyment of the office is substantially impaired, Tenant nulY (a) immediately vacate
the Premises and notify Landlord in writing wit~in 14 days of Tenant's intention to
terminate the Lease, in which case the Lease shall terminate as of the date of
vacating; or (b) if continued occupancy is lawful. vacate a part of the Premises
ronderod unu5~ble by the fire or casualty, i~ which caBe Tenant's liability for re~t
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is reduced in proportion to the diminution and the fair rental value of the Premises_
If the Lease is not ~erminated ~y Tenant, ~s provided herein, the building Cannot
reasonably be repaired within thirt.y da.ys from the date of such damage. and if
Landlord elects not to repair such damage, the Lease shall cease and become null and
void effective as of the date of the damage.
15 _. AUTOMOBILES.
Landlord shall not be liable for damages to any automobile, motorcycle, or any
recreational vehicle owned by Tenant caused by the negligence of any other tenant or
any other person while said vehicle is parked anywhere on the Landlord's propercy.
16. NOTICE.
All notices to be given by Tenant to Landlord shall be by personal delivery to
LandlQ~d at the add~es$ below Or by sending the notice by certified mail, return
receipt requested. Said notice shall be deemed to be given upon receipt by Landlord.
All notices to be given by Landlord to Tenant shall by personal delivery to
Tenant at the Premises or by sending- the notice by cert.ified mail, return receipt
requQsted to Tenant at the add~ess below or such OCher &ddress as the Tenant may
designate. S.9.id notice shall be deemed to be delivered upon the date of personal
delivery or upon the date postmarked by the U.S. Postal Service_
City of Elk River
13065 Orono Parkway
Box 490
Elk River, MN 55330
Love Elk River
829 School Street
Elk River, MN 55330
CITY OF ELK RIVER
HARVEST EVANGELISM INC.
D/B/A LOVE ELK RIVER (Tenanc)
By'~' ~:n
S~ H 1\~11t I\tl N V NC
~~
#'
~e-N SOO(.(lf
(Tenant)
GP:1579508 vI
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