INFORMATION #1 02-25-2002City
MEMORANDUM
TO:
FROM:
Mayor and City Council
Michele McPherso~,~irector of Planning
DATE:
February 25, 2002
SUBJECT: Information Item - Lions Park Center Lease
Attached please find the executed lease between the Elk River Lions Club and the City of
Elk River for the office space at Lions Park Center. The Lions are required to execute a
lease with the City per the Minnesota State Gambling Statutes. The lease outlines the
tenant/landlord responsibilities, the rental amount, and the priority of building usage by the
Lions. The City Attorney assisted in the drafting of the lease.
If the Council has any questions regarding the lease, please contact me at 441-4902.
S:\PLANNING\MICHMC\MEMOS\LionsLease.doc
LIONS PARK CENTER LEASE
It is agreed this 1st day of March, 2002 by and between The City of Elk River,
Landlord, and Elk River Lions, Incorporated, a 501-C4 non-profit as organized under
Minnesota Statutes, collectively, Tenant:
That the Landlord hereby leases to the Tenant, and the Tenant hereby leases from the
Landlord, office space as noted on the attached Exhibit A, located at 1104 Lions Park Drive,
Elk River MN 55330, (the "Premises").
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 (1) year commencing on the 1,t day of March, 2002,
t° and including the 28th day of February, 2003. If not terminated at the end of the initial
lease term as hereinafter provided, this Lease shall automatically renew for successive one-year
terms. If either party wishes to terminate the Lease at the end of the initial lease term or
thereafter, written notice must be given 30 days prior to the end of the Lease term.
2. RENT.
Tenant shall pay as rent for the Premises the sum of Two Hundred dollars ($200.00)
each month due on the first day of each month beginning on February 1, 2002, said rental
shall be paid at all times in advance for the month, with interest 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.
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.
3. USE.
Tenant shall use the Premises for office and administrative purposes only and shall not
permit the Premises to be occupied for any purposes or permit any act which shall invalidate
any policy of insurance on the Premises or increase the fire hazard; and shall bring into or
remove from the building by way of the rear entrance, all furniture, equipment, appliances,
and fixtures.
Lions Park Center Lease
February 19, 2002
4. CARE OF PREMISES.
Tenant shall use due care to maintain the Premises in good condition and shall
surrender possession of the Premises to Landlord at the expiration of this Lease in as 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 excepted). Without limiting the foregoing,
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 that
part of the Premises that the Tenant occupies and uses as clean and safe as the condition of the
Premises permit; (c) dispose from the Premises all ashes, rubbish, garbage, and other waste in a
clean and safe manner; (d) keep all plumbing fixtures in the Premises as clean as their
condition permits; (e) use in a reasonable manner all electrical, plumbing, sanitary, heating,
ventilating, air conditioning and other facilities and appliances including elevators in the
Premises; (f) not deliberately or negligently destroy, deface, damage, impair or remove a part
of the Premises or knowingly permit a person to do so; (g) act in a manner that will not
disturb a neighbor's peaceful enjoyment of their Premises. Tenant shall not make any
alterations, additions, improvements or structural alterations to the Premises without
Landlord's prior written consent, which consent may be granted or withheld in Landlord's
sole discretion.
5. ASSIGNMENT.
Tenant shall not assign the Lease nor sublet the Premises or any portion thereof
without the prior written consent of Landlord, which consent may be granted or withheld in
Landlord's sole discretion.
6. UTILITIES.
Landlord shall furnish reasonable heat for the Premises and shall furnish necessary
water for the Premises. Tenant shall pay for all telephone charges for the Premises, directly to
the supplier.
7. RIGHT TO ENTER.
Tenant shall allow Landlord, its agents or workmen, at reasonable times, at Landlord's
discretion, to enter the Premises to inspect the same, make repairs or improvements, or show
the Premises to persons desirous of leasing same. Landlord shall have the right to enter upon
and into the Premises to meet any apparent emergency.
8. NO ORAL CHANGES.
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 this Lease shall be
binding upon either of the parties unless in writing and signed by both Landlord and Tenant.
2
Lions Park Center Lease
February 19, 2002
9. DEFAULT.
If Tenant fails to comply with the terms of this Lease, Landlord may pursue all
remedies available to Landlord under Minnesota law.
a. Examples of defaults by Tenant include the following:
Tenant vacates the Premises without giving Landlord the required
notice;
(2) Tenant fails to pay the rent when due;
(3) Tenant fails to pay utility charges when due;
Landlord gives Tenant the required notice to vacate and Tenant fails or
refuses to move 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 creates a clear and present danger to others as described in
paragraph 11 below.
bo
Examples of remedies available to Landlord if Tenant defaults include the
following:
O)
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;
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 failure to maintain the
Premises more than once within any six-month period, Landlord shall
have the right to terminate the Lease by giving Tenant ten days' prior
written notice of termination.
(3)
If Tenant fails to comply with the provisions of paragraph 11 of this
Lease with regard to the health and safety of others, Landlord may
terminate this Lease upon three days' written notice of termination to
Tenant.
Lions Park Center Lease
February 19, 2002
10.
Co
In the event Landlord terminates this Lease due to a default by Tenant,
Landlord may bring a court action to:
(1) Require Tenant to vacate the Premises; and/or
(2) Recover any unpaid rent or other amounts owed by Tenant; and/or
(3)
Recover actual damages suffered by Landlord as a result of Tenant's
default, including reasonable attorneys' fees.
DELAY OF POSSESSION.
If Landlord is unable to give Tenant possession at the beginning of the term, the rent
shall be rebated on a pro rata basis until possession can be given, which rebated rent 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 said term, Tenant may, upon at least five days written
notice to Landlord, terminate the Lease and upon termination, Landlord shall return all
prepaid rent and security deposit to Tenant.
11. RESTRICTIONS.
Tenant shall not: (a) obstruct the halls or stairways, shall only use the same for passage
to and from Premises; 0o) cover or obstruct any windows that admit light into halls or
passageways; (c) make or permit any disturbing noise in the building by themselves, their
agents, or guests; (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 create or maintain
a threat constituting a clear and present danger to the health and safety of other Tenants, the
Landlord, the Landlord's employees, or other persons within 1,000 feet of the Premises.
Tenant and Tenant's agents, 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 waives any
claim for any loss of any articles by theft or from any other cause from the Premises.
13. INSURANCE.
Lions Park Center Lease
February 19, 2002
Tenant agrees to carry a policy insuring personal property to be used, stored or
otherwise present on the Premises. Landlord will not be liable for damages as expressed in
Paragraph 12 "Waiver of Claims by Tenant."
14. FIRE OR CASUALTY DAMAGE
If the Premises are damaged or destroyed by fire or casualty to an extent that
enjoyment of the office is substantially impaired, Tenant may (a) immediately vacate the
Premises and notify Landlord in writing within 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 rendered unusable by the fire or casualty, in
which case Tenant's liability for rent is reduced in proportion to the diminution and the fair
rental value of the Premises. If the Lease is not terminated by Tenant, as provided herein, the
building cannot reasonably be repaired within thirty days 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. PRIORITY 1N USE OF FACILITIES.
Tenant shall be allowed first priority use for Board meetings on the 1st and 3rd Tuesday
evenings of the month from 6:00 p.m. to 10:00 p.m., except those Tuesdays on which primary
and general elections are scheduled, in which case, the Tenant shall first priority on the 2nd
Tuesday evening, and on one Sunday in May and December for pancake breakfasts. Tenant
shall give Landlord a minimum of 60 (sixty) days notice of the dates of the pancake breakfasts.
For all other uses, Tenant shall have priority for the use of the Lions Park Center facilities
.subject to the policies set forth in Policy document, which may be amended from time to
time.
16. RECREATIONAL FACILITIES.
When available for use at such times as may be determined by Landlord at his sole
discretion, Tenant, may have the right of use in common with others, of the recreational
facilities. Landlord does not warrant the quality or adequacy of water supply, or that the
availability of the recreational facilities will be free from interruption caused by repairs,
alterations, accidents, or causes beyond the reasonable control of Landlord. Landlord reserves
the right to prohibit Tenant from using the recreational facilities for infraction of any rules or
regulat!ons made from time to time by Landlord. Any interruption of the use of the
recreational facilities for any reason whatsoever shall not be deemed an eviction or disturbance
of Tenant's use and possession of the Premises or any part thereof or render Landlord liable to
Tenant for damages or relieve Tenant from performance of Tenant's obligations under this
Lease. Except as provided by Minnesota law, Tenant, on behalf of himself, agents, employees,
and guests, agrees that Landlord and Landlord's agents, and employees, shall not be liable and
Tenant waives all claims for damage to person or property or loss of property sustained by
Tenant, any occupant of the Premises or other person or persons, whether resulting from the
recreational facilities, or any equipment or appurtenance becoming out of repair, or from the
Lions Park Center Lease
February 19, 2002
use thereof, or resulting from any act or neglect of any Tenant or occupant of the building, or
of any other person, including Landlord, its agents and employees.
17. 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 property.
18. NOTICE.
All notices to be given by Tenant to Landlord shall be by personal delivery to
Landlord at the place designated for the payment of rent 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 certified mail, return receipt requested to Tenant at
PO Box 736, Elk River, Minnesota 55330. Said 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
ELK RIVER LIONS (Tenant)
GP:848630 vl