3.9. SR 01-09-2006
*Item 3.9.*
MEMORANDUM
TO: Mayor and City Council
FROM: Rich Czech, Arena Manager
DATE: January 9,2006
SUBJECT: Elk River Youth Hockey Lease Agreement
Item
Approve the lease agreement between Elk River Youth Hockey and the City.
Summary
As you are aware, the City took over the operations of the Arena concession stand from Elk
River Youth Hockey this past fall. The original agreement that the city had with Youth
Hockey was for the concession stand as well as an office, and a storage room.
Since Elk River Youth Hockey is no longer operating the concession stand, Angie Hanske,
from the City Attorney's office, has drafted a lease for the office and storage room.
Attached for your review is a draft of the lease between Elk River Youth Hockey and the
City, for the office and storage room.
The lease term is for five years, and the rent is $2,600 per year.
Action Requested
Approve the lease agreement between Elk River Youth Hockey and the City.
Office Space Lease
THIS LEASE, made and executed this _ day of , 2005, by and between the
Elk River City Recreation, 1000 School Street, Elk River, MN 55330, hereinafter called
the Lessor, and Elk River Youth Hockey Association, PO Box 193, Elk River, MN
55330, hereinafter called the Lessee:
WITNESSETH: That in consideration of the payment of rent and the keeping and
performance of the terms and conditions herein by Lessee, Lessor does hereby to Lessee,
the premises described as:
An office in the southeast comer of the upper level of the Elk River Arena, and a
large storage closet located in the southeast comer of the upper level of the Elk River
Arena. The Lessor and Lessee agree to shared use of the large closet space.
This lease is for a term of five years, beginning on October 1, 2005, and continues until
midnight of October 1, 2010, unless earlier terminated by law or as provided herein.
1) Lessee has first right to renew this lease upon expiration of the five year term,
provided Lessee has abided by the agreements, terms and conditions set forth in this
Lease. Conditions of the renewal period will be negotiated between the Lessor and
Lessee at the time the option is exercised by the Lessee. Lessee shall give Lessor written
notice of its intent to renew at least ninety (90) days and not more than one hundred
eighty (180) days prior to the expiration of initial lease term or Lease will terminate at the
end of initial term.
2) Lessee shall pay rent for said premises to Elk River City Recreation. A yearly rent
of $ 2600 subject to any adjustments as hereinafter provided for. Yearly rent shall be paid
in full by the first day of January each year for the entire term of the lease.
3) Lessee shall use and occupy the premises for office and storage purposes only and
shall not use them in such a manner as to give either governmental authorities, other
tenants or Lessor just cause to complain.
4) Lessee shall surrender the premises at the termination of this Lease or any
extension thereof in as good condition as they were at commencement of this Lease,
reasonable wear and tear or unavoidable casualty expected.
Lessee shall not make any alterations or improvements to the premises or without prior
written consent of Lessor, and all improvements, shall remain with the premises at the
termination of this Lease and become the property of the Lessor. Liability for cost of
replacing or repairing any part of the building or the premises contained therein damaged
by Lessee or Lessee's agents or employees shall rest solely with Lessee
5) Lessee shall not encumber or assign this Lease or sublet the premises or any part
thereof without prior written consent of Lessor. No action of Lessor in collecting rent
from any subtenant, assignee, or occupant shall constitute a waiver hereof.
6) Lessee agrees to hold Lessor harmless and to assume full liability for any loss or
damage whatsoever to any person or property occurring on or in said premises and
arising out of, by reason of, or during Lessee's use, possession, and occupancy of the
premises, except such loss or damage to persons other than Lessee caused by sole
negligence or intentional acts of Lessor or of third persons.
7) If Lessee shall default in making any payments after reasonable notice or in
keeping and performing the terms and conditions of this Lease or shall abandon or fail to
use or occupy the premises or shall become bankrupt or insolvent, Lessor may reenter
premises immediately and take possession thereof and at its option, terminate this Lease
with respect to all future rights of Lessee, and Lessee hereby expressly waives any notice
in writing of intention to reenter. Lessee will indemnify Lessor against all loss of rents
and other payments which may accrue by reason of such termination, including all legal
fees and expenses incurred in enforcing any of the terms of this Lease.
8) In case the building or any part thereof is destroyed or partially destroyed by fire
or other casualty not arising from the fault or negligence of Lessee or those employed by
Lessee, Lessor shall repair the damage within a reasonable period of time, due allowance
being made for delays beyond control of Lessor, and rent shall abate proportionately to
the extent that the premises are untenantable, but in the event the damage shall be so
extensive that building and/or premises cannot be substantially restored within ninety
(90) days, either Lessor or Lessee shall have the option to terminate this Lease upon
thirty (30) days' written notice to the other from date of damage, whereupon this Lease
shall terminate and Lessee shall pay rent up to date of damage, and thereafter both Lessor
and Lessee shall be free and discharged of all further obligations hereunder.
9) Lessor or its agent shall have reasonable rights of entry for the performance of
any of its obligations hereunder, including right to show premises to a prospective tenant
or buyer, but no obligation to repair shall be implied from such right or such entry.
10) Each of the parties hereto agrees, at least sixty (60) days before the expiration of
this Lease, to give the other party notice in writing of intention not to renew or to extend
this Lease, and in case neither party heretofore gives such notice, this Lease shall stand
renewed for a further period of one year from the date of its expiration, with all terms and
conditions herein expressed, including this renewal clause, which shall apply to five (5)
such future renewals of this Lease.
11) All notices, demands, and communications under the terms and conditions of this
lease shall be given in writing and sent by registered mail to Rich Czech, 1000 School
Street, Elk River, MN 55330 on behalf of Lessor; and to John McLaughlin, PO Box 193,
Elk River, MN 55330 on behalf of Lessee, as the case may be, or to such other addresses
as may from time-to-time be requested by Lessor or Lessee.
12) The Lessor shall be responsible for any maintenance and repair to the building,
surrounding property, and any such equipment as is part of the building.
The Lessor shall be responsible for, and shall pay as they become due, all taxes and
assessments upon said premises.
13) Lessee agrees to abide by all rules and regulations covering the restricted use of
areas not covered by the terms of this Lease and any regulations covering the health and
safety of all tenants or visitors within the buildings, as may be established by Lessor.
14) Lessee shall not display any signs, advertisements, or notices in or on any part of
the building without prior written consent of Lessor.
15) If any term or condition of this Lease is illegal, invalid, or unenforceable under
present or future laws effective during the term of this Lease, it is the intention of both
Lessor and Lessee that the remainder of this Lease shall not be affected thereby mad that
in lieu of each such term or condition, there be added as part of this Lease a term or
condition as similar as may be possible and be legal, valid, and enforceable.
16) A waiver of any term or condition of this Lease by Lessor shall not be deemed to
imply or constitute a further waiver of such breach or a waiver of any other term or
condition contained herein.
17) This Lease may be terminated by either Lessor or Lessee, with or without cause,
upon sixty (60) days written notice directed to the other party pursuant to Paragraph 11
above-written.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be validly
executed in their respective names, as of the day and year first above-written.
LESSORS:
LESSEE:
City of Elk River Recreation
Elk River Youth Hockey Association
Elk River Arena Manager
BY:
President
BY:
Approved as to Form and Execution this
Day of
,20_.
City Attorney