HomeMy WebLinkAbout2008 07-28 EDAP EDA MEETING
City of Brooklyn Center
July 28, 2008 AGENDA
1. Call to Order
—The EDA requests that attendees turn off cell phones and pagers during the meeting. A
copy of the full City Council packet, including EDA (Economic Development Authority), is
available to the public. The packet ring binder is located at the front of the Council
Chambers by the Secretary.
2. Roll Call
3. Approval of Agenda and Consent Agenda
—The following items are considered to be routine by the Economic Development Authority
(EDA) and will be enacted by one motion. There will be no separate discussion of these
items unless a Commissioner so requests, in which event the item will be removed from the
consent agenda and considered at the end of Commission Consideration Items.
a. Approval of Minutes
1. July 14, 2008 Regular Session
4. Commission Consideration Items
a. Resolution Approving Lease Agreement with Brooklyn Hotel Partners, LLC for the
D Barn at the Earle Brown Heritage Center, and Authorizing the EDA Executive
Director to Execute Said Agreement
•Requested Commission Action:
—Motion to adopt resolution.
5. Ad'ournment
J
EDA Agenda Item No. 3a
MINUTES OF THE PROCEEDINGS OF THE
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF BROOKLYN CENTER
IN THE COUNTY OF HENNEPIN AND THE
STATE OF MINNESOTA
REGULAR SESSION
JULY 14, 2008
CITY HALL COUNCIL CHAMBERS
1. CALL TO ORDER
The Brooklyn Center Economic Development Authority (EDA) met in Regular Session called to
order by President Tim Willson at 8:20 p.m.
2. ROLL CALL
President Tim Willson and Commissioners Kay Lasman, Mary O'Connor, Dan Ryan, and Mark
Yelich. Also present were Executive Director Curt Boganey, Public Works Director/City
Engineer Todd Blomstrom, Community Development Director Gary Eitel, City Attorney Mary
Tietjen, and Carol Hamer, TimeSaver Off Site Secretarial, Inc.
3. APPROVAL OF AGENDA AND CONSENT AGENDA
Commissioner Ryan moved and Commissioner Yelich seconded approval of the Agenda and
Consent Agenda, and the following item was approved:
3a. APPROVAL OF MINUTES
1. June 23, 2008 Regular Session
Motion passed unanimously.
4. COMMISSION CONSIDERATION ITEMS
4a. RESOLUTION NO. 2008-09 ACCEPTING BID AWARD AND AWARDING
CONTRACT FOR SALVAGE
Mr. Eitel introduced the item and stated the purpose of the proposed resolution.
Commissioner Lasman moved and Commissioner Yelich seconded adoption of RESOLUTION
NO. 2008-09 Accepting Bid Award and Awarding Contract for Salvage.
The following correction to the July 8, 2008, memorandum on the proposed resolution was
noted:
07/ 14/08 -1- DRAFT
Budget Issues: The demolition cost of the former T'���n r,,,, u,.+oi Brookdale Ford
property will be paid from proceeds from Tax Increment Financing District 3.
Motion passed unanimously.
4b. DESIGN APPROVAL FOR THE PEDESTRIAN CORRIDOR LINK
CONNECTING THE EMBASSY SUITES HOTEL TO THE EARLE BROWN
HERITAGE CENTER
Mr. Boganey introduced the item, discussed the history, and stated the purpose of the EDA's
Embass Suites Hotel to the Earle
desi n a roval for the edestrian corridor link connectin the y
g PP P g
Brown Heritage Center.
Mr. Eitel provided a PowerPoint presentation and answered questions of the EDA on the
proposed design for the pedestrian corridor link connecting the Embassy Suites Hotel to the
Earle Brown Heritage Center.
Commissioner �elich moved and Commissioner Ryan seconded to approve the design of a
glassed wall pedestrian corridor connecting the Embassy Suites Hotel to the Earle Brown
Heritage Center and authorize the necessary changes to the Pedestrian Link Corridor Exhibits A
B and Easement.
Commissioner O'Connor voted against the same. Motion passed.
5. ADJOURNMENT
Commissioner Lasman moved and Commissioner Ryan seconded adjourmnent of the Economic
Development Authority meeting at 8:37 p.m.
Motion passed unanimously.
07/14/08 -2- DRAFT
EDA Agenda Item No. 4a
City of Brooklyn Center
A Millennium Community
TO: Curt Boganey, City Manager
FROM: Jim Glasoe, Director of Community Activities,
Recreation and Services
DATE: July 22, 2008
SUBJECT: Resolution Approving Lease Agreement with Brooklyn Hotel Partners
LLC. for the D Barn at the Earle Brown Heritage Center, and Authorizing
the EDA Executive Director to Execute Said Agreement
Recommendation:
Staff is supportive of the lease and recommends its execution, as it provides a
complimentary amenity for the conference and events portion of our operation.
Background:
During negotiations for a revised development agreement for a hotel next to the Earle
Brown Heritage Center, the developer (Brooklyn Hotel Partners LLC.) approached the
City regarding the possibility of leasing the current "D" Barn space for a spa operation.
As the "D" Barn would be connected to the future hotel via an internal link, staff saw the
potential benefits for the EBHC operations and for the developer of having a spa
operation connected to each facility.
Staff has worked with the City Attorney's office and Brooklyn Hotel Partners LLC. to
develop a lease agreement for the "D" Barn space that is acceptable to both parties. The
basic parameters of the lease are as follows:
Lease commences December 1, 2008.
Base rent of $18.00 per squaxe foot. (based on an anticipated lease of 4,100 square
feet) The $18.00 per square foot rate includes Common Area Maintenance fee of
$3.00 per square foot and property taxes of $2.00 per square foot.
Lease Term to be ten (10) years with two five (5) year extensions.
Bi-annual rental increase based upon the Consumer Price Index. (no decreases if
the CPI reverses)
Tenant responsible for all utilities and interior maintenance.
Landlord responsible for all exterior building maintenance.
Rent abated for three (3) month "build out" period.
(If Certificate of Occupancy is approved prior to the end of the three month
period, rent will become due from that point forward.)
All building remodeling plans require City approval.
No "build out" costs will be absorbed by the landlord.
i
6301 Shingle Creek Parkway Recreation and Community Center Phone TDD Number
Brooklyn Center, MN 55430-2199 (763) 569-3400
City Hall TDD Number (763) 569-3300 FAX (763) 569-3434
FAX (763) 569-3494
www.cityofbrooklyncenter.org
Budget Issues:
The current "D" Barn leases generate approximately $68,462 annually. The proposed
lease for Brooklyn Hotel Partners LLC. would generate $73,800 in the first year. As we
are not anticipating any financial participation in the build out costs, this represents a
7.3% increase over current lease rates.
Member introduced the following resolution and moved its
adoption:
EDA RESOLUTION NO.
R,ESOLUTION APPROVING LEASE AGREEMENT WITH BROOKLYN HOTEL
PARTNERS, LLC FOR THE D BARN AT THE EARLE BROWN HERITAGE
CENTER, AND AUTHORIZING THE EDA EXECUTIVE DIRECTOR TO
EXECUTE SAID AGREEMENT
WHEREAS, Brooklyn Hotel Partners LLC has approached the City regarding the
possibility of leasing the current D Barn space at the Earle Brown Heritage Center for a spa
operation; and
WHEREAS, staff recognizes the potential benefits for the Earle Brown Herita.ge
Center operations and for Brooklyn Hotel Partners LLC of having a spa operation connected to each
facility; and
WHEREAS, staff has prepared a lease agreement with Brooklyn Hotel Partners LLC
for tenant space in the D Barn of the Earle Brown Heritage Center.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority
in and for the City of Brooklyn Center, Minnesota that:
L The attached lease agreement with Brooklyn Hotel Partners LLC for tenant
space in the D Barn of the Earle Brown heritage Center is hereby approved.
2. The EDA Executive Director is hereby authorized to execute the agreement.
Julv 28. 2008
Date President
The motion for the adoption of the foregoing resolution was duly seconded by commissioner
and upon vote being taken thereon, the following voted in favor thereof:
and the following voted against the same:
whereupon said resolution was declared duly passed and adopted.
i
LEAS E
TH1S iNDENTCIRE (tt�e "Le�ise") made and entered i��to on this <l�ty of Nc�vember,
20()7, by antl betweet� Economic Develo��rncnt Aut.hority c�f the City c7f Brt���klyr� Center, �i ��ublic
bod �c�r. oi 'c1IIC� c�litic u��der Mi���sota law wl�<�se adtiress is e/c> Gener��l Man� Tet .F..aT•le
Y n p
I3ri��v�l Herita�e Cent.er, C155 Earle Browti Di Brooklytt Centc,�r•, MN _5543t) (refer� to �is
"Lai�dlc>rd") �znd Iiroc�klyn Hotcl Partners, LLC, a lin�ited lialiility c�onipany under Minnesota law,
��vhose address is c/t� ()liver C".ompanies, Sfi29 Grand Avcmie, Suite; 2, Dtiiluth, MN 55�07
{hereit�af�er 3 to as "Tenant"}.
W I'I �;SS �,"l
ARTICLL [—BASIC LEASE PRnVISIONS
I.1 LANDLOKD: Eirooklyn Genter Econornic Dev�;lopme�it Autharity
6 3 55 Earlc Browtl Drive
Qroaklyn C:cnter, MN 55430
(.2 TENANT: I3z�ooklyn Hotel Partners, I.,IrC.`
c/o Oliver Con�panies, Ltd.
5629 Grand Avenue, Suit.e 2
Dulutli, MN SS�307
1.3 DEMISED PR�MISES: T11e building knawj� �is Build.inb D", more Specific�lly
identif ecl c»z Exhibit A attac}�ed he��efo, coi�sistirig c�f
a.rproximately 4,100 syuare feet and located witl2in t.tle
camplex knawn as the Ea►�le Brown Hcritage C'ent��
("Center"}
I
1.4 (:)RIGINAL "T'LI�M: Ten I0) yc��rs
1.5 'T'E:EZM GOMMENCEMEN'I'
DATE:
I
I .fi RENZ' CC)MMENC'EMENT
DATE: Three months after 'i'ecm Cc}nliTie.ace��ient Date or issu�3nc�:
ot�Certiticate of Oce�tpa.ncy, whichever is earlier
l.(i RENEWAL'T'ERMS: Twc� reitewals of five years each, ��s mor�. specitica.ily set
f��rth at Secti�n 2.3 ofthis i�.;ase.
I.7. �3ASF REN'T�: Seventy-'�I"hree'T'f�ouslx�d Ci�1it Nimdred Dollars (`�73,8()0.00
per lnmim), r�ayable in inonthly insta.11mei�ts of Six
Th�usai�d One Hundreci f'ifly Dollars ($fi,15t).t)(?} o�i or
t?efore the iirst day of each rno��th, subject to adjustinent �.s
set tot�th in Article 3 below.
3"24(i(itiv$ C:AkI BR3t�5-2
ART'I�i:F., �l GRANT; "I,LRi'Vi AND EXTENSION OPTIONS
2.i DEMIS�D PRFMiSES. In considcc ofi the rent:s, coven��i�ts anc� a�,��eemectts
her�;in rese�ved and contain�:cl ot� t.he pait of Tenant lv be perfonneci, Landlord does hereby lcas� to
Ter�at3t the huilding known as "B��ilding D", lvcated on tlle }Zarcel ot� land at ti235 Earle E3ro��n
Drive, �3rooklyn Center, Minnesota, Count}� of Hennepin, Statc of Mi��ncsota legally describecl ai�
E�liil�it A attached her (hcreinaf�er r�;ferred to as the "Demiseci Pi As part of the Iease
tlf l}it Df�1111S�CI Pl'C1111.SCS, L��i�<.ilord hereby leases to Ten�zlt all tixttirc;s and �uipment located in c�r
nn the Dei��iseri �'��eil�ises. Tlirou�;h.ou.t the tenn c�f Lhis T..e��.5e, 'i'enat�t shall l�ave: (a) the exclusivc:
right to use the le.asef��ld imprc�vements in the Demist;ci Pre.mises; ar�ti (b tI1G T1C)1'1-F:XL'IUtitVE: l'l�;�lt t0
use tl�e parkiE�g lots in cc�mmon with Lancile�rd a.nd other tenants of tl�e Center and their rc>speciive
a�e��is, employees, �il(� 117VIt��S. TGClij]1L"S 11(lll-�XC�.USIVC EISf; 0'� YII� 17 ��rki��g lots shall be subject ica
such reasc�nabie :litnitaticnts as Landlord 1��ay fiom titne to time iittpose, as (oi��; as such lirtiitations
dc� not intei�fere in a�}y r respect with Tcnant's ribhts to c�bta.in access to the De�nised
Pre;i�ti4es.
2.2 1'ERM CQMMENC�MENT, The tcriz� of' this Lease shall c�mmence upon
2Q0� and tlle leasc shall expire �n 201_, subject to
extension as provided in Se.ction 2.3 l�elow (the "Te►•it� F.,xUiratic}�t Date"}, ut�iess soc.�ner terminatc;d
as provided in tl�is i�ease.
2.3. EXTENSION UPTiONS.
2.3.1 First Extension Ot�tion. LandEorci hereby grants TenaF�t the optian (tl�e
"First Extec�sian C)ntion"} to extend the TerrYl of this Lc,ase for five years {the "Fir•st Extended
'T�,rm") c>n and subject to the te�'n�s of this Section 2.3. The Fit'st Exteaded Tel•fn, if a�iy,
shall cc�mrt�ence c�n the clay fc311owin� tlie Chen-current Terin Expir�tion Date, and shall
conti��ue for a pe�-iod of five years thereafter. T'euant's a��tic�n to extend the Term shall l�e
both: (a) u��on ct�nclitiott (which m��y be waive�i by Latzdlord in its sole discr�ekion) that no
Event of Default exists at tlle ti�7�e af it�e giving by Tena�it of its notice of exercise; and, (b}
upc�n f«rti�er condition (�vhicll may be waived by Landlord in its sole discretion) that no Event
of Default exists at Ehe t.ime of tlle ccymmenccment of the liirst Extei�ded Term. Ifi T�;nant
elects tc� exercise tlie First ExYensican (}ptian, Tenant shall give Landiord notice {a "First
Extei�sion Nofice"j c�n or before the date which is ttit�e rnortths prior to the ttien-applicable
'Terrn Expiration Date. From and afte:r cominencernei�l of the First Extet�deci Term, all o#' the
other terms, eavenants and ec�nditic�ns of the Lease shall a��p1y, ai�d z�eferenees tc> tl�e `l'erm
shall t�e deemed to include ttie First Extended Term.
1.3.2 Seeol�d ExtenSic�n Oatic�i�. Laildlord hereby gr.ants Tenant the c}�tion
(the "Seconci Extension Ontion"} to extet�d the Term of this Lea.se fc�r five years (t3��; "Second
Extendecj Term"j on and sul�ject ea fhe tei•ms of this Secti�n 2.3. 'F��e 5eco��d Extencfeci Term,
if any, sf�all commence on the last day oi' khe Ficst Extended Term, and shall coittinue f�r a
period of tive years t��ereafter. Tenant's option to extend th�: Term shall l�e both: (a) upon
cc�nciition {which may bc waived by Landlord in its sc�l.e discretioi�) that no Event c.�f Def�i.jlt
exists at the time ot ttie giving b_y Tenant of its natice c�f exercise; anci, (b} i�pon furtt�er
324v611v5 CAt[ I�R3f?S-2
2
c���nditic�n (which may l�c waived by Landlord in its sole discretion) that no Event ofi t�efault
exisEs at the ti e��f th c mm e�e t of the Secontl Exkended Tenn. If Tenant el�:cts to
m e o enc n n
exercise the Second Extensian C3ption, Ten.ant shatf give Landtord notice (a "Seconti
Extension N�Eiee") an or betore ttze d�te which is nine n�onths prioY• to the then-ap�Iic�ble
Term �xpiratian Date. Fron� and at'tei• cc�minencement of tlle Sea�nd Ex.tended Term, aIf c�i'
tl�e ather terms, covena�lts anci conditions of the Lease shatl a.�?ply, and references to the 't'erm
sl�all be deemet� t� include €he Second Extended Term.
�RTICI.,F_, ilI REN`T
3.1 RENT COMMF.,NC'EMENT. Tenant's obliga.tiori to �ay r�nt will c<�n�mence on
flie earlier c�f three, montt�s aft:�r the "1'errrt Cornmencement Date or the date that a certifcate of
occt� anc is �s5 i� for nant' i he Demisecl Fremises the "Rent
y t �.d Te 5 occu��a �cy c.1 t
Cominencement Date").
3.2. �tEN'I'. Following the Rent Commencement and cluling the term hereof `Tet�ant
a.grecs to p�y to Landlord ��.t Earle Brown Heritc-ige Center, 61 SS Earle £3rown Drive, Brooklyn
Ce-tiler, Min.nesc�ta 55430 or at stich other �lace �s tile Lancilorc� may fro�n tirtic tc� lin�e designate i��
�vritin�, "base rent" fo�° the Dei�iised €'renuses as set fortli zt Sectian 1.7 ��bove. Such pay���crits
s}�all be made in ac�vai�ce on the f irst of �ach cnonth, �vithc�ut deduction or set-off: Itent far al�y
��ar�t.i11 rnontl� sh�11 bE: pro ratecf.
3.3 ADJtJSTNtEN"TS TO RENT. On every seconcl annual anniversary of the
Cammencement Uate during the Original and any Extended Terrns of this Lease, the 8ase
Rent sl�all bot:h �e acljust�d in tl�e fotlowing manner:
(a) Tlze Cansurner Yrice Index for ali urban consi.imers (base year 1982-84
100} for the Llnited States, Midw�st Urban Regic�n, published by the Unitecl States
De��artrnent c�f Labor, Bureau <�t L.�(��r Stafistics ("Index which is publish��d rnc�st
imiYtec�iately �n•eceding such anniversary date ("Extension Index"), sh�ll l�e cotnpared
wi.th the Iriclex pubiished cnost immediately preceding the Commer�cement Date or ��rior
an��iversary, as appropriate B��lIlT11l1f�T IOC�E;X
{b) I#'the Extension I►tdex has increascct r�ver th�e �3egir�ning Icidex, the Base
Rer;t J�ayai�le during the succcedi.�g year shall be set by inultiplying t}}e Base Reni fc�r
the expiring year by a f'ractic�n, the numerator c�f wl�ich is the Fxtension Indcx and the
dcrtominator of ��llich is tl�e Be�inning Inclex.
(c) If the Exte��sion Index has decreasecl from the Beginning Index, nr�
ac�justment shall be tnade to Base Rent.
(d} If tl�e Index is �han�;ed so that the base year diffets #rc}m that used as of
the }�ublication date most immecliately preceding the date the expi� year co�nmencecl,
the L�dex shall be convert.ecl in accordance wifh the conversion f'actor publishecJ hy the
t_f.S. Department of'L.�bor, Bureau af L,abor Statistics.
S?46(,OvS C'AFi BR3u5-2
3
li
fe) If tl�e Inciex is discoilti�yued or revised during the Term of this Lease,
such otl�er governn�ent index or coinpulation with which it is replaced shal( Y�e used in
c�rder t.a obtain si�bsta�zCially the same i•esuit as would be ot�tained if the IrYCiex h�kd nc�t
been ciiscontinued <>r revised.
3.4 ADDITIONAL RENT. Any otl�cr charges to be paici by the Tenant �ursuant to tl�e
prt>visic�ns of any other sectic�t�s of this Lease shall be desi�latecf as "aciclititmal renl". Por
convenience, Ten��nt may include payment ft>r such chai-�es and the "base rent" in one motithly
elieck, provideti a11 "additional rent" items are shown separately from "base rent" t��erecm. Such
"additional shall not fc�r any reason be consiclered as "base r�nt° as hereinabove defi��ec1.
Failu�-e c�f Tenant ta pay "additional reiit" shall give Landlc7rd tl�e ri�;ht to deelare an even! c�f
default.
3.5 R�NT bELINQUENGIF...S. Should the Tenant, fi�r any reasc��l whaisoevei fai! to
F�ay, «�l1er� the sa1��e is d��e and payable, any °basc rent" and/or "��ddit.ion�l ret�t" ancl sho�ild said re�il
not I�e paid �vithin ter� (10) d�ys of due date, Tenant shall pay �i tate penalty eyu.:il to fivc p�;rcent
(�°%o} of total rents <.iue. In addition, al] unpaid re;n�S sha)1 bear interesf trc�m the d,�te d�ae tc> the date
of J�ayn��ent at tlle r��te c�f two percent (2�'0) per ann.um in exeess of tlte prin�e�rate as yuc�ted by tJS
Bank, N.A. to its best custoiners, or the 17i�laest rate perttiittecl by la�v, tivhichever is less.
3.G NET'-NET L�.ASE. This is a net-net leasc; "base rent" shali be net �f all costs and
ex�enses crf c��vning and opc;ratii�g the De�niscd Premises, i►�cluding m�intenance and insurance,
except as provided at Sections G.1 �jnd 9.2 of tltis Lease. Ter�ant shall be responsible ti�r all costs
and cx�enses af o�unin� and o��eratii�g the Dcrnised Pr�nisc;s, but exclikding real estate tc�xes and
insta(lrr�ents of spccia.l assessmet�t�s and exc;ept as c�tl�erwise expressly pr�vicled herein.
ARTICLE TV —°I'l�.XES AND SPF,CIAL, ASS�SSMENTS
4.1. TAXES AND SPECI.AL ASSESSMENTS. Providetl that Tetiant shall timely m��kc;
all pay�nents c�f r�.nt required he�•eunder, L,��nd(ord shall pay before c{elinquent ��11 r�:al estate taxes
and iizst��lltnents of s��ecial �ssussments �vith respect to lhe Demised Pi•emises due aaid payable
diiring the t�.rrn af this Lease.
4.2. PER50NAL PROPERTY T'AXES. I'enant shall pay before delinyue►1cy all taxes,
asse.ssn�ei�ts, liceiise� fee5, arzd otlier charges that a►•e leviect at�d assessed against 'I'enat�t's
}�ersalal prc�perty installed or located in or c�n Che Demised Yremises and that becr.�n�e Uayable.
durin� thc. t.er�t� �f this Lease.
ARTICI.E V- USE UF PREMISES
S.l TENANTS US�. Dui•ing the term of this L,ease, the De�riseci Premises shall be
used solely Por t.he purpose of a salan anci spa.
.5.2 COMPL,IAN��� WIT.H LA�'VS ANU fiLGIJLATtONS.
3"246bOv5 CAI1 I3R305-2.
4
(a} Tenant covenants and ab� tha.t at �ill times t�uring the term herc�f it will maititain
aa�ci conduet its businE,.�s inso#'a.r as the same relates to the c�c:c:upancy of the De��nised Pretnises in
such a lnanner Gind under such re�;t�latians that are ii� st.rict c.om�liu�ce with any and an zpplica.ble
�;overnil�ental and/or qu��si-gove� laws, rules, regulatic>n5 tand orders, as �vell as any and all
appli�ble prc�visions of insurance un.derwrit.eis at the Demised Preniises �nd thc Declaration.
T'en�tnt sl�all indemnify Lant�lr�rd, I,andlc>rd's insurer, ancl thc property of Lancllor against any �a.r�cl
all ctaiiz�s or losses or act:ion5 or causes of action resulting (i�cm� Teizant's fa.ilure to co�n.��ly cvitl.i saicl
l:u�s, cules, ri>�,ulalions and order atld Eu�derwrifing provisions.
(U} Tel�ant l�erel�y agrees to maintain the prcmises and opei its busin�ss in
�1GC01"C�I�IICC �U1l:I� the ADA (the �r�i�;�icans With Disabilities tict (ADA), coclitiied at 4Z U.S. SS
12101 et sea.) F��ilure to do su sh111 op�,�rate as an evei�t af default and a breacli c>f the Lease:.
Among ather reyuirements that rnay a.pply t.o the Dcmised Pr��n�ises, Title TiT c�f th�; ADA requir�s
owners and ten�nts c�f "public acc;ommodalioz�s" to remove tiarriers it� ox�cler to <�llc�w access Y�y
disable.d ��ersons and to ��rt>vide �uxilia.ry aicls and services t��r l�earing, visian �r spe�eh im��airec3
��ersons. Detailed re�uiatic�ns can t�e f�und at 28 D.R.F. Ya�t 3fi
S_3 /�.�FIRMATNE CUVENANTS OF TENANT. Wi�hout in any way limiting or
restrict.ii�g other uove.nants of Ten�ln.t elsewhere in tl�is Lcase cc�ntained, the Tenant affirrnative;ly
coven��nts and agrees as follows:
(.a) Tenant sliall �ieither �ermit or suffec ai�d conduct, noise, odc�r cyr other nuisance irt,
c3n or abou# s�iid Deinisecf Pretnises te� annoy or disturb any persc�ns occtxt�}Rng �djaceEit pre;mises or
c.ominan areas;
(b) Tenant shall kee�� the Demiseci i'rcmises, includin�; all seivice ancl/or loadirig are�.s
for t.lie Demised Premise;;, free tic�in all litter, dirt and oi�structions;
{c) Tei�arit sha11 an for 1nd aeeept cieliveries only at sueh times, in the aa at�c�
thr��u�h the entrances desi�llted f��r such purpose by Landloi
(d} Tenant shall keep saitl Uet�lised Pt clean and it� the sanit�try cc�txlitiem
rec�uired by c�rdinance ai�d regulations c�i' any governmental ar qu�isi-gove� i�nit having
lu� isdiction;
(e) Tenant shall neitl�er perrilit nor sufif:er the Dei��isc:d Prernises, ur the walls, ceilings
c�r flocit•s lhereof tc� be endangered 1�y cavertoadi►
(t) Tenac�t shall prr�pt;rly nzaint�in the HVAC syst�m in the Demiseci f'remises,
includirtg pr��curing an annual ins�►ection therec�f and, at the opti�n af the I,andlc�rt�, subscrit�ing to �a
service selected by i}le Lsu�dl�rci f�r such maint.enai�ce and p�ying the fees tl�erefor;
Tcnant shall not use ar perrnit the Den�isec� Premises fo be used for any �urpose or
pti.arposes other tl�a.n th�it set fort.h irl Secti�n 5.1 hereof;
(h) Ten�urt �uill e�nirc�l its patrons to prevent dilulken, unrtrly or otrnc�xie>us beh�ivior.
32a66nv5 CAIi DR3o5-2
-4
ART[C,LE V1- MAINTENANCF.. AND RE� AIRS
(i.t LANDLC�RD'S MAINTENANGE ANU RLFAIR OBLICIATIONS. Su��ject to
Article X, Landlord shzll operate, maintaifi and make a11 riecessary repairs and replacesnents to:
(a) thc structu��al portions c�f'th�; Building, (b) the exteric�r walls of the Builcling, includin� �;lass
an� �lazing, (c) the raof, (d} exterior windows, (e) side�valks, l3arking aceas and landscal�ed areas
acijacent to the Deinised Premises, and (f) damagc (other th��n c�zsualty cia.ma�e) caus�d by l}le
negligencc ar willful miscanduct of Landlord or its a�ents, ernplt�yees or contrlctors, in cach
case, thri�ugl the Tern Tl�e repair at�d replacement obli�atioi�s of Landlord Ic�llowin,�
dama�e to or destructicm of the Deir,ised Premis�:s as a re5ult of conclem�latioz� or casualty are
governed by Artic]e X, not t�y this Section 6.1.
6.2. TENANT'S MATNTENANCE AND REAAIR UBL7GA'I'IUNS. Suhject to: (a)
reasonable weaa• and tear (��ut c�3ily to an cxtent consistent with fhe Demised Pre���ii.ses rem<:�ining
i�� gctc?d conditioc� a��d re;��air) {b) cast�alty damage t��r whicl� it is not fihe respoi�sil�ility of'T'enant
to ��ea restoration c�r repair in accc�rd��nce with this I,ease; (c} damage (other than casualty
dafna�e} eauseci b_y the negligeF�ce ae deliberate tl�iiseonduct of Lartcllord or Lancilord's age�lts,
em��loyees or contractc�rs; (d) datnage that is coverec� by the property �tnci casuaity ir�surat�ce
poliey ar pc�licies o�l the Demised Premises required tc? be maintaineci by Landlc�rd under this
I�ease (or �uc�uld be covered if Landlord were tt�aintaining �uch ir�surance) (to the exteilt actually
co��ered, takirig irito f1CG011llt t}1G' deductibles, policy limits il11Ci eXClUS1Q115 Of such insuranc;e
I�olicies); (e) dazl�age th.at is Landlorci's obligatic�n under tl�is Lease to remedy or that results fro�7�
Laiicllorci's failure ta fulfill such obli�;ations; and, (fj datYiage to the int.eeior of thc; Demised
Pr�mises resulting fioin causes outsic�e the Derriised E'ret�iises ofhei• thar� Ttnant:'S ��cts or
omissiof�s; Tenant sl�all maint��in, and makc non-structural repairs to, the Demisc;ci l'remises and
keep tlie sazne in good condition and repair. Subjeci to t.he p�•ececling se.t�tence, Teriant's
obti�ation shall include the c�l�ligation ttr mainlain and re�air all nonsti�t.�ctural walls; t7oc�r
covc;rin�s; ccili�Zgs; the mech�t�ical piumbin�;, hcating, air ccx�dit.ioning and/�r c<>c�lin�;, vE;ntilating
and eleclrica] equi��ment anci systems partitions, i111C{ 1II other fixtures, appliances aud facilities
h�rnished by C,andl�rd c�r 'Tena.nt withirt the Derniseci PreFnises, and shall a.lso incl�.ide the
obti�,ation to repai� all ciamabc caused b}� the negligence or deliberate, misconduci: ai' Te���ant, its
.igents, et�ti�3loyees, ia�vitees attd iicet�sees to the Demised l?res�lises, �vhatever the scope of tl�e
�uc>rk nf m�intenance or re��air rec}t�irec�. Suhjeet t.o Article X, nothing ccmtaine.cl in tt7is Section
(�.2 sl�a.11 b�: dee�l��ci to ii�zpose upon Tenant the obli�;ation ta pert��rm wo;�k or n�aintcnance cir
repair to the extent req«if•ed by rc��.son of' Landlord's ni;gli�;ence, willfi�l tniscoricluc;t or ivrongf'ul
acfs or tl�ose of Landlord's agents, �mployees or c<mtractors.
fi.3 SURRENDER OF E'RCMISES. At the ex��iration or ternii.nation of fhis Lease,
Teiaant shall surrenc�er the Demised Premis�;s in the �ame condition as existett on t}lc
cammence�nei�t d�tc of this Lease, ordinary we��� �ii�d tear excepted. All fixtures which have
becon�e attaeheci ;;hall be part c�i' th� Demised Prernises, exeept trade tixtures. Further, withi�i
ninety (9(?) da.ys prior to t}�e expiration of the tei La��dlord shall durin� reasc.�nable �usincss
tiot�rs, have thc; right to show the Der�iised I'remises to t}3ird parties fc�r tlie ��ucp�ses of again
leasing sa�zle.
3Z46trOv5 CAH BR30S-2
�.R'1'1C:'LE VIl UTILITIES
7.1 CHf1RGE5. Tenant s11all pay f��r all utility services i��cluding ga.5, electricity,
dc�mestic wa#.ei•, se�ver, ieleco�nmunications and al] other ufiiity seivices fu�•nisheti thc. Tcnant for
��se ifi the Demise:d Premises or to c�l�erate any of'I'enant's signs.
7.2 SLIPI'LY O�` UTILITY SERVICES. Landtord shall i�c�t be liable i�l any way tc>
Teti�int ti�r at�y failure �r defect in the supply or character of electricity, water, sewer, or �as
fur�ished by reason oi' any ch�.i�ge, rcquiren�ent, act, neglect or atnission c�(� the public utility
seiving lhe D�mised Pren�ises or ft�r �ny reason not attrihul.ed to L��.nd.lard.
7.3 TNTERRUPTION t�R I)TSC"UN"I'INUANCE nF LANDLORD'S SERVIC�E.
'1'enant agrees that .Landlot�d sh�zll not be li�ble for f'ailure tc� supply a�ly servrc;e when I_,andiord uses
c�iligence to supply the saa��e, it beirig understcu�d t.hat L,ancilord re�erves the ri�;ht t��
tempc�rarily discc>ntin.ue such 5e.rvices, or any of them, at such t.imes as rnay be nc�.essary by reason
of �.ccident Ull'<1Vi11I`clhl�l�)1 (7F (.'I12�lI0yf',ES� tc�11113'0 OI 'supply, repairs, a.lteraiic�ns ar i��►prove�»ei7ts, or
b�y� rea�;on of fire, strikes, tlaod, Iockouts, riots, acts of God t>r any ot�i�r l�ap�enitz�; tieyond the
reasonahle cc�ntrc�l of Lanc3lorci. When Landlnrd causes seivices to be rendez by independent
tl�ird ��arties, Landlord shalI have no liability for tl�e perforrnance thereof�or li�bility therefor.
7.4 GARBAC3E AND REFCJSE C(�LLLCTION. A.tl garba�e and refiise sh�311 be kept
in a>ntainers �u�d shall be placed outside of the Demised Prenlises prepared f��r �7rt�cessing andlor
ec�ilection. Tenant sliall contract far garbage and refiise collccti<�n at Tenant's cost.
ARTiCLE� VIII ALTF..,RATIONS
4.1 ALTERATIUNS. Tenanl uiay, f'rom time to tiri�e duy the tern�, make, 3t its own
cc�st and expens�;, any alteratfon4 or changes in the inkerior of the Deiniscd Prer�Zises in goo�� and
wcn manner in com}�liance with all applicable ru�uirements of law, provided Tenant
tollc�c��s fhe noticc ��rocecl�re and obtains I,ancllord's consent where reyuire.d, all in accordance �vith
this Article, Landlord a rees t necessa
g o coo �erate �vith Ten�int tbr the purpose oi scc��nn� ry
��ern�its f'or any changes, altcr�tions, or addi.tions pern�itted under tl�is section withc�ul e;xpense tc.f
the Landlorci. Upon cozti}�letion of such alt.eratioris, Tenant sliall pl•esent to Landlord copy c�f'the
endc�rseme:nt to Tenant's fire and extended. covcra�;e insurance p�licy whicl� en�lorsement sh�ill
inco���orate saic� a.Iterations into the policy. All cosLs of any such work shall be paici prc�mptly by
'i'er�aiit so a� to prevent th�; ass�rtion of any hens for lab�r or ��nat�,� Tenant agrees to ac.�vise
L���dlc�rc� in ti�ritin}; of tl�e datc upon �vl�ich such alt�rations ��vill comn3ence in ord�r tc� pen��iit
Landlorc.l to post notice of nc�n-respolisil�ility.
82 NOTICE: TO LANDLORD. Prior tc� the initiation ofi any alt.erations, Tenant shall
�ive L.<�ndlord wi notice thci and s�3ecify tlie work tc� be ��erfvrn�ed in reasonable detail ar�d
in� e n�: c>f ai n tice
�lude tl� �in�es �f the c<>nlractc�rs and �naterialrnen tc> be utiiized. After recci�i 5 d
La�7dlord sha11 have a reasonable period of tiiz�e during which it shalI maice a cieteerninat:ion, in its
sole eiiscretion, as t.o whethcr or nnt the proposed work ��voutd create a structurai �e c�esign c}7ange at
khc Der7�iseci Pt�enlises. Tenant shall pruvide Lan�ilord uE�o�l request wit�i any furlher inicx�
reasonably nc.cessary fat� such de;tcrn�i��ation by L,andlord, anc3 Tenan.t shali not com�nence �vark or
3246h�v5 CAH HR305-2
7
acce��t materi�ls prior te� rceciving written natiee oE� Lai�cilorcl's d�:ten»in�ztiorl. If Landlc��
cletennines that tl�e prc3�e�sed work would create a str�ctural or desi�;n change, then tlZe �arne must
L�e ���}�rc�veci in writin� by Las�dlord prior to the c;om��lencement c�t any work or tlze delivery af any
matc:.rials tt�erefor.
ART'1C�LG 1X INSURANCE, RELEASE, IND:EMN1�'ICATIUN
9.1 TENANT'S INSIIR.ANGE.
(a} Liabilitv Insurance. 'I'et�ant shall, during the tertt� of tt�is Lease, keep it� ftil(
force and effect. policy of comprehensive general liability insurance with a limit of liability
coverage of not les5 than $1,000,OOO.f�O per occurrence ancl an "umbrella" gene� liabiiity
irisurance policy with a Iirnit. of (iabiliry cover�ge of �tot less th3n $3,0()O,t300.()t). The policy
shall naine Landlc�rd as aciditic»�al i�lsurecl and shall contain clauses that losses shall be �ayable
ncrtwithstanding ar}y acf or negii�ence of the insured wt�ich miglZt c�then�vise result in fi�rfeiture af'
said iz�su.ranc�, and that the ii�surer �vill not cat3cel c7r change t.l�e insuraiZ.ce withc�ut �r �ivi��� the
Landlord thirty (30) ci;iys �?t•ior tivritten nc�tice. The insurance shal] bc; witll an insr�ir�nce u�t��pany
apprc�ved to do business in Minn.esota �nd reasonal�ly acceptable to Lt�ndlord. 1'enant shall dcliver
a copy of the pc�ltcy or a eertiticate of insurance to L�ndlord prior to laking pcassession ofi the
Demiseci Pretnises, and a renewal certific:ate at least thirty (30} days p�ior to tlie expiration of' any
poticy ter�n.
(h) Personal F'�•onertv Iaisurance. Tenant agrees t.a carry, at its expense, ir�surance
�l�?i11I1Sf fli �e, vandalism, and malicious r��ischief insuring Tenant's tr��de tixtures, furi�ishin.gs,
equipment, and aZl otlier items of personal prc�perty of Te��ant loeateci on c�r wittsin che
Premises in an amout�t not less t:han one hundred percent (100�/n) of the full insurablc value of
all suc11 property combineci.
9.2 LANDLORD'S INSURANCE. Landlord shall Cil]T'lll� t�lE iCt'lil Of tI11S f,ease,
l:eep in force an.cl effect a policy of prc�perty damage insurance on and for ttie Der»ised
Px�ei��ises to cover tk�e same a�airisC lass or damage occasioned by fire, vancialism, and
maliciuus mischief, and sucl� other hazards as may be c�ceasionecl t�y Landlc�rd's ownershi� of
thc Deniised Premises, with cc7verage c�f not less tt�an or�e t�un�ired ��ercen� (lU0%} of the full
insurable value of the Demiscc� Premis�s. To the extent tt�e insurance rttaintainecl l�y Lancllc�rd
in accordance with this Stction 9.2 overlaps �vith the insi�rance to be maintained by Tenant
pursuartt to Section 9.1(b), above, 'I'e►�ant's insurance shall be primary.
9.3 PROT.ECTIC)N �'RUM SUBR()GATInN. Anything in this I..ease to the cot�trary
notwith5lancling, neitller Landlord nar Tenant sha.11 be liable to the otller for any l�usine.ss
infet��uptiari or any lc�ss or ciat��age to ��rc��erty or injury to or cleath of per5���is c�ccurring <m the
Den�ised Prernises or the adjoining of properlies, mall areas, sidewalks, str�ets or a(leys, or in any
manne-r �ro�uing caut. of ar coi�nect.ed with Tenant's usc; ancl occupat.ion ot�tl�e Demised Prenlises, or
the conciition therec>f or of tnal] areas, sidewaIks, streets ar alleys adjoii�ing, causecl l.�y the
negli�;en.ce or otl�er t'ault c>f Landlord ot I'ei�ant. o�• of tlleir respcetive a�;ents, cmployces, s��bte��az�ts,
licensees or assignees tc� t.he extent that suc;h bt�siness inten•nptian or loss ar damabe to pr�,��erty or
injury tc� or cieatl� of person is covet•ed by or indemnified by proct;e:ds received frc�m insurance
32=1t;GOvS CAH BiZ1p5=2
K
carried by ather p�irty (regarciless of whether such insurance is }�ayable to or ��rutects I.,<z.ndlord or
Te.nant or both) or fi�r wllict� such party is othei�vise reimbursed; u1d Landlord and Tenznt eacl�
hereby respectiv�.ly waive all riglits of recoveiy against tlze other, its agents, einployees, sul}ten��nts,
licetiseus and assi� tor any s«ch loss or darnage tc� prc>��.rty or injuiy to ar deatl� ot persc�ns t�
El�e extent the sarne is u�vereci c�r indemnified by proceeds receivf;ci f�om any such instirance, or f��r
which rei�nburse�nent is otherwise ru:eived. Landlc�rd's fl11C� �('enant's respective �x>licics ol'
ii�sura��ce shall each contain a waiver of subrogation provision incorporating the �b�ve u�venant
�nd �rovicling that the insurance sf�all nc�t be inva.licjated by the irisured's written �vaiver pt ie� a
loss uf any or all ri�ht �f recov�ry �gainst any E�arry fi�r any insured loss. It is expressly understot�d
thzt. Lancllc�rcf shall not be liable to Tenant foi� any dama�es ine�rrred E�y the latter as a result c�i' lhe
ahavc and fqrt;gt�ittg evc:nts; save and except as to any such dai��ages causecl by tlie willfiil or
�vanton e<mcluct of Landlord, its agents �r eniploy�es, prc>vicied such d�ui�a.�;�;s are nc�t recc>verabie
by Tenaz�t �ursuant tc� t:he insurance policies required to be provided by Tenant uncler lhis T.,ea�e i>r
othen��ise.
9.4 RELEASE. Each part_y hereto ("Releasing Party") he,�reby releases t:he other
("Itc�leased Party") fr��zn any liai�ility whiet� tlle Iteleased Party w�uld, but #�u tlais paragrap)1, I�ave
had to th�. Releasin� Party �rising out of c�i• in connect.ion with any accidcnt or occurrence or
c��,5ualty:
(a) which is or wc}t.�ld be covered by a fire 1nd extended c�verage policy (�vith
va�ldalis�n and malicious mischief enciorsement attaehed) or hy a s��rinkler leaka�t
or water c�atna�e, pc�licy iri tl�e state in which the Demised 1'rcmises is locat.eti
re�ardless af w}�eth�;r or nc�t such coverag� is being ea� by the Reieasin�; P�t�ty,
anc[
(b) t.o the extent af recc�very undcr any other casualty or property ciamage insurance
bei3�g �arried by lhe releasi�lg P�rty at ti�e time of such accident ar occurrence c�r
casualty, which r�.ccident or occuri�ence or casualty rnay have resu.lted icl w}�ole or iii
pai�t frcmi tl�e act c>i� neglect of the Rele�.sec] Party, its affieers, agents or emplc�yeeti,
�rovided, however, the release hereinabove set f�rth shall bccaFne ino�erati��e and
null and void if the Rele�ising l'arty contracfs f«r the insura.nce required to be car�ried
u��d.ei thr. tei of'this Lease wilh ari insurance c��n�any which:
(l Takes the pt�sitic�n that the existet�c:e of sueh releasc vitiates c7r woufd
�iciversely affect any ��ulicy so insuring the Relea�iztg Party in a substanti.11
maiuler ancl nc�tice tlzereof is given to the Released Party at the tir��e
cover�ige is [�ound, or
(2) Requires Che payment of a higher prett7ium by �eason of the cxistence of
suc}.z release, unless iii tlie latter c��,�e the I�eleased P�u�ty wit}�in ten (10) clay5
after notice thereof before coverage is bc�uncf fr�m the Releasinb Party pays
SL1C�l ltlt%1'ec'3SE 111 ��P(:S7111111't.
9.S INDEMNIF'ICA'I'ION. Except for clairns arising out c�l the willful or negli�ei�t act
�>f Landlard or its agents, Teilant shall indemnify and defend I.,andlc�rd as;aitzst ali claims, expenses
i 324GGhv5 L'AH C�R30S-2
9
i and Iiabilities ineurred, including reas�nah3e attorneys' fees, in connecti<�n witll loss of life, ��ersonal
injury, and/or damage to ��roperty arising out of any occurrence in, upon or at the Demised
I'r�tx�ises, c�r t11e accupancy o�� use thereof by Tenant, or �ccasionec� whc�lly or in �iart b_y any <ict ar
ornission of Tenant, its a�cnts, etiipioyees, cc�.ntractors, sublcssces, concessioriaires c» licensees.
AR'T1CL� X- DF.,STRLICTION AND RL>S'1'OR�TION
1Q.1 RESTORAI'lUN OPTION TF MORE THAN 30% DAMAGEI�. If t}te Dert�ised
Prernises shall be damageci t.o the extent of thirty perce�7t (3Q°1o) or znore of the cost of rcpl��cement
tlZereof oi• darnag�j by aity uninsured casualty, La.nd[ord shall }lave t�ye optiot7 to rebuild c�r t�>
terininate tlais Lc:ase hy exer�ise of not.ice to '1'enznt given tic�t r�iore ye�xr ti the ciate of such
clamage.
1U.2 RESTORATIC)N UPTIQN 1F I_ESS TI-{AN 30% UAMAGED.
If the den�ised Premises shall be daanaged to �he extent c:�f less th��n thirty
percent (30°r�) of the cost of replaccment by iire c�r cjther casualty covei•ed by
Landlord's policy of flre cover�ige insurar�ce du�zi�g the term of tliis Leasc tl�c
base rent�ii lierciri sllall ai�afe as of the ciate of the occurrence in acc<�rdance
«,�itli the provisians of Section lO.2(b), arid tl��e Land(ord shall restore t.hc
Demised Premises. lf such an event c�ccurs c�ur'in� thc iast one (1 ye��r of
t11is Lease or extension thereofi; th.en Landlc�rd shali hav� the option tc>
rebuild ar tei this [.ease to be exercised by notice to tei�ant given nc�t
ntore than six (6} ��ZOnths frotn t��e date of such damage.
(b) ln the event af such p�u•tiat destructit�n or dan�age ti��hcreby Tenarzt s}�a11 be
deprived of occupancy and usc for onty a portitxi of the Demised i're�nises,
thcn "base rent" shall be enuitably apportioned according tc� the area c>1� the
Dernised Premises which is unusZble by Tct�ant fro�n t}ie date of occurrence,
unt.il such tirne �is the Dcmiscd Pr�,�n�ises are repaired or restore;d as provided
herein.
i �e i
�f taI d
estruction cri' the D��rn c
1(3.3 7 O I'AL DESTRt7C I iON. In th� event c to
Premises, �I rent shall compl�tely abate from the date of such c�estruction. lf Lan�.jlarci elects
ate fron� t.i�e da.te af suc}i destructioi� until
to rehuild as af«resaid, Tenan� s r�,nt shall coi�ipletcly �t�
fo�ty tive (45) days aftcr the d<�te ��hen Lancilord nc�t.ifies tenant tl�at thc shell ��t� the De�nised
Premises is ready for caanmei�cenlenl of Tenant's work, or upon the day when `I�enar�t opens fc�r
business, whichever event shall first occur.
1�.4 ADDITi4NAL I Tenant. cavenants aild agrees that it will not do c�F• permit
atzythin� to be cione in or upot� the Deinisezl Pretnises ��r brin� in anything or keep ar7yt}�ing therein
w' s can a i i a Tenant's insurance �olicies or increase tt3e rate of insurance,
htch shall cau, e thc cell t o� f
c>n ihe Demised Preti�ises a.bove t�ie standard rate on said prc.mis�s and builciil�g. �I'enZnt fiurthe.�t•
a grees tl�at i» the event it shall do anything to so increase t��e insurance rate, Tenant shalt pr<i�nptly
pay to La.ndlc�rd ol� dernanc� any such increase resuitiiag t.h�refmxn, which sh��ll bc: due anci ��ayable
as "atiditi<fy�a1 rent" her�,unc�er. At Tenant's request, La��dlard shcill make available fc�r Ter�anYs
:i246(i0v5 CAF! F3R305-2
�a
insp�etion ciuring regul�r btjsiness hours, all doeuments pertainit�b t.o Lancilorci's ealcui��tion c�f
Tenant's "aclditianal re��t" requircd under this seeiion. Said "�c�diti�zial rent" sl�a11 be cit.i�; ancl
payable as billeci by Llncilord.
0.5 NOTIC'E, 'I'enant s}�all give imrnediate ��ritten nc�tice to L:�ndlord of any damage
causec� to tlle Den�iscd Pre�l�ises by fire or othe�' casualty; or ot� any canec;llatic�n or re<iuction c�t
7'ena��t's insurance cc�verage requirecl pursuant to tl�is Lease.
10.6 ABATEML;NT. Ter�ant a�� that during any perio�i c�f reconslruction or repair of'
the I)e�ni�ed Pr�mises. it �vill continue t.he operatic�n oi�its busin�ss witl�in t.he Dernised Preinises to
lhe extet�t practiicable. If Landiord is require:d to rep�rir and rebuiki, tl�en dt�ring t.l�e peric�tl from the
c�ccun�ei�ce of tlie cas«��lty until Landlc>rds repairs are c�m{�l�tecl, the "base ri;ttt" sel tc�rt}� herein
sha(1 l�e retitiiced tc� sue;Ii extent as may be #i�ir ac�cf reasonable u.ndcr the circurnstances; l��owever,
there s11311 bc nc:� abatement of the othcr c�iarbes pr��vided far herein.
AR'TICLE XI -EMINENT DUMAIN
11.1 PARTIAL OR TUTAL CONDEMN�iTIC)I�1. lf the whc�le or any �iart oi` the
De►»ised Premis�:s c�r tl�e structure enconl}�assin�; sa�ne st�all b� taken by any public <�ut.hority t�nder
the, power c�f eminent dornain, tlze Tena�lt shall llave no claim to, nor sha11'I'ei».nt t�e entitled tc�, any
pc�rtian of any a���ard, f��r damages or at��erwise. In the eve�lt only a portion of the Derr}ised
Premises are taken, tlle Le�ase shall tern�inate as to thc part takei�, and th� rent at�d ofher charges
herein re�en�ed shal] he aciju,�ted far the r�Knainder of the Uelnised Pretr�ises scf that: t}�r� Tenant. shall
b�; reqaircd to pay f<>r the balance of the term that portion of the rent reserved which thc valuc of the
}�arl c�f� fhe Demiseci Premises rertlainii��; �Ll�er wndetntzatiotl bears t<� t}�e value c�f the Demised
i'ri;mis�� immeeliately prior to the d�it.e of condemriation. `The rental and ather chargcs shall be
apportio�iecl as lforesaid by a��eement beri�een the parties or by arbitration or [e��l proceedings,
but pending such deteri�zination #.he Tenant sl�all pay at the t:ime a�id in the manner above �rrovic�ec:t
tl�e r�.ntal herein res�,�rveei �u�d all ot}�e�• cha� herein requirccl to be paid by the T�:nant Wl.t}1()lft
deduction, a.nd upon sueh det.ernzinatic>n, the Tenant shall be entitled to cr�dit for any excess E•e,�tals
paic3. If; t�owever, by reason of the condemnalion there is nc�t surticient spt�ce Jeil irt the DemiSe:d
I'remises {c�r the 7'enant to re�tson�ibly co��cluct busine5s; then, in such everlt, t.f�e Lease shall
tet7xiinate. Altl�.oug}1 all darn3�;es in the event of c�mdemnatioil �elong t� Landlard �vh�;thcr
awarded a5 compensation �or dimii�utiott in value of lhe leaselialc� or to tl�e fee c�f thc I7e,n�r�isecl
Premises, natl�ir�g herein shall be conslrued tc� prevent Tenant to CI3I171 anci r�;cc�ver from the
condemning authority such cc�mpensation as may be sepaiately aw��rciecl or recoverabie by Tenanl
in Tenant's own ri�llt fbr its leasehc�ld interest.
�RTiC'LE Xlt ASSIGNMF.NT ANI) SUBLE"I"T1NG
12.1 CONSENT REQC.IIREll. Teiiant may not �issi�m this Lease ancl/ar sublet thc
Demised Premises, c�r any pait thereof without in each inst3nce obtaining the ��rior ��t consent
of the Landlarcl, ��vhicll consent sha.11 not be uiu•easonably wilhheld. i.andiord hereby acknowledges
and consents to a �c�llate� assigzimei�t af Tenant's isiterest herein to T1�e Pi�udea�tial Insur�nce
Cc�m��ai�y c�f A�z�erica ���d/or its assi�zs ("7`enant's Lender"), In th� event of a f'oreclosure by
Tenant's Lender up�n 'I'enant's interest herein and cure of any d.e:f.�auits exist.ing hc;reunder,
i 32466Uvi CA11 E3R305-2
11
Landla��d shall rect�gnizu 'Tei�ant's Lender or c�ther pur-cl�aser in foreclosure as t}�e Ten�int
hereunder, sul�ject to otlier ternis and conditions hereof. The conscnt by Landlorci to any
assi�nment czr sublettii�g may not cottstitute a �vaiver of tlle necessity for such c�nsept to any
subs�:q�Ee«t assignr3�ent c�r sublettiiig. 'I'his prohihition against assigning or sublettin� shaLl be
construed to include a prahibition a.gait�st any �ssignrnent or subletling by operatian of l�f�v, lf this
Lease Me assi�ned, or if the Demisec� I'reznises or any pait thec•eof be uri�erlet c�r c�eeupiul hy
anybc�dy c7tl�er than Tenazlt, Landlc�rd may collect rent frum the a5si�,rnu;, under or occuE�ant,
and appl_y the net a;��ounl collected to the rent hereir� reserved, but nc� such assignmei�t,
under-letting, occupan�y c�r collection shall be cieemt;d a w �11V(;!' Ot t1115 COVG111i1t or the acccptar�ce
of the assignee, ui�der-tenatlt or occu���ticy as T�nant, or a release of T'enant ii the further
per#«rma��ce by 'I'enant clf c�3venants on the pat of Tettant her�in cc�ntained. Notwithstand.in� any
assi�m�nent or sublease, Tenat�t shall remain fully 1i��ble c�n tllis Lease a�ld shall not bc eeteasecl from
perforinir�g �:iny of the ter�ns, covenants, and conditians ot this t.ease. Tenant sh�ill pay to Land(ord
I
a.ny reasonat�le costs and expejzses (including legal fees incut7ed by Landlord in connecticm with
s��ch assigmnent c>r sublettin�.
ARTIC`LE XII TENANT'S DEFAULT
13.1 CVENTS OI� L�EFA[ TI�T. The following events sl�all be deemed to be events of
default by Tenant «nder this Lease:
�3� TeTl�lilt S11c�lI f�1� t0 l��iy VVI'lell CIUe c1Ily 111St3IIll'leilt Of C0I1� or other cliargcs pr•c>vided
hcrein, or any portion thcreof a.nci the san�e shall remaiti ur�paici f��r a pe� of three
{3) days after the same has became due; c�r
'ttec� this Lc�sc ce�se
b Tenant shltl far reasons ather th�n those s ecificall erm.i ir
Y�
t� conclract its ncn business operations in tl�e ven�isc;d Premises or sh��ll v�kcate or
abandon t.he Demised Premises. Tenant will be decrnzd tc� have vacated, closed or
ab2ndoneci tkle D�,�rnised Premises if it fails to a�nduct its businass on the Demisetl
Prenvses during regular working hours f��r a period �r �ttare than ten (10)
consecutive: busii�ess c�ays; or
(c) 'I'enai�t sY�atl do or pertnit to he done an}�thing which creates a i.ien upon the
Den�ised PrenYises; and does nat cause said lien as to Landlord's inlerest in the
prc>perty to hc released within ten (10) days after wt i�cftice fra�n Landlord; or
(d) /�ny r�,�resentakion or warr�.int.y made in writing to Lancllorci in this Lease; <�r in
connection with t}le 12�akin� of this Lease, by Tenant or ��i�y �;uar��ntor, 5hall ��rcrve at
any time to have been incorrect in ��ny m�t.eri�l respect �vhen rnacIe or becumes
incon•ect; or
(e) Tenant c�r any ��arantor shall malce a�1 assi�,mment fi�r thc l3encfit c�f eredilc�rs, for a
petitio.n in bankrupicy, be adjudicated insolvent or bankrupt or adn��it iai writing the
inability tc� pay debts as tliey rt��ature, petition or apply to any triUuna! for the
a��pointme�lt of a r�ceiver, trustee c�r sin�ilar ofticer for Tenant or any guara.i�tor or a
substantial part of the assets of Tenant or any guarantor, or shall com.rnencc any
324fi6�v� CAH RR30.5-2
12
I'�
��raceeding unc�er a.ny banlcruptcy, reorga«ization, arrangement, reacljUSt�nent of
del�t, dissolution or liquidation law ar statut.e c�f' any jurisdiction, ��rhether nc��v or
liereafter in ef{'c;c;t; ar if there shall have becri fited any such j�etition or a�plicaiion,
or a.t1y such proceetling sl�all havc becn cammenc;c;ci ag �LillBt Tenant or any
guarmtor, which reii�ains tinc�ismissed for a��eriod of t.}iirty (30) days ar more; or
Tenant or ��y �;�uarantor by any zct or omission shall indic:aYe tl�eir Cont�nt tc�,
a��prcnral c�f or acquiesc�nce in any such petitic�zi, application or }�rocecciing, or the
a�poi��tment of re,c;eiver of c�r any tcl�stec ar sisrzilar offcer tirr Te��ant c�r �u�y
�uarantor or any substat�tial part of any of the properties t�f'I`e.naijt or any �uar�r�tor,
or shall si�ffer any such ceceivership or tnist�.eship to continue un�lisch��rged fc�r a
period of tl�irty (30) r�ays or rriore; c�r any juc��mlent, writ, watt ant or a.ttachment or
ex�,�;utic�n or sin�ilar �rocess s��all �e issued or levied against a sut�stantial part of khe
pr«perry of Tenant or any guarantor and such jud�nent, writ, or sitnilar rrocess
shall tic�t he rel�;aseci, vacated or fully hon�leci wit.hin tl�irty {30) days after its issue c}r
levy; or
(t) 'Fenant shall have failed to comply �vith any othet of this Lease anci shall
nc?t cure any failuri within thirty (30} days, or siich lcrnber period of time as may be
reZSatiahly requit to cure such def�iult, af�.er Landlord, by �vritten nuticc, ttas
infon��ed Tenant of such noncoi.nplia�lce.
13.2 t,ANDL,ORD'S REMEDIES. LJ�on the occurrence of any of the above-lettered
everits of ciefault, Landlc�rc] shall give Tenant and Tenant's Lender ��vritten notice of tlie deiault, ana
Tei�ant ancllor Tenant's Lender shall have thirt.y (30) days or sucl� otl�er pericxi ati provideci under
seetion 13.1 ��hove t� eure such default. If the defatilt it nc�t cured witlli.n the applic�ble eure peric�cl,
Landlord may elect to either (l) tet this Lease; or (2) tern�inate Tet�ant's ri�ht to pc�ssession
only v��ithc}ut tei7ninatin� this Lease, I�creinafter referred to �.s re-entiy; (3) }}ui:sue any othe:r rern�cly
av�ilal�te at la��� or ii� equity. Lanctlord sliall have �11 rcmedies provicieci in tt�e Lesx�e and urlder
�;overtiin�; law. All of the rei�lec:lies ��iven to Landlord in this Lease or by lav�� sllall t>u cumi�lative,
and the exeri;ise of one riglit or remedy �y landlord shall not impair its rigl�t to excrcise any other
ri�l�t or remedy.
l�� t}ie event �f election unciet� (2) ��bove to tecminate Te.nant's right to possessiot� «nly,
Landlord �nay 1t Landlord's o�tion, proceed to demanc� possession by notice and proceec.�ing uncler
the Unlawful Detainc;r La�v of Minnesata and take anti I�old possession thereof without sucii
proceeding or �;nlry into possession ternlinating this Le�se or rele�sin� Tena��t in tullolc or ic� p�.rt
from Te��ant's obligation to pay the rent hereu.nder• for the full te�zn. Upon re-entry Landlord rliay
remove all person�3l propert}� f.� tlae Dernised Premises a��d such property �nay be removeci anci
stured in a public warehc�use or elsewhcre at the cost of and for tflc a.ccuunt ol�Tenant, all with��ut
sen�ice of notice or resc�rt to Eegal pcoi;ess anc� without being deen�ed gui}ly af tr�s��ass, or becoming
liat�Ie :t�,r any Ic7ss or c�amage which rnay be occasic�ned lherel�y. [.Jpon anci aftc.r entry intU
possessic>n tivithout termination c�f the L,ease, Landlorci shall use reasonable effoi•ts to relct t}ic
�7ren�ises, or any pal thereof for the account �f Tenant, to ac�y othcr person, tirm or Gor�c�ratian, for
su�h ient anci c�ther ehar�;es f�t' sucil time and upon sueh ter�ns as Landloi ici Landlol�cl's sc�le
su�jeetive discreticro shall dc,terminc, but Lancil��rci shall n�t be requi��ed to acce.�zt any pc�t�ntial
fenai�t offered by Terar�nt oa to obsetve any instruction given hy "I'enant about sucl� reletting.
i .3za6hoYs r.ati Hk3os_z
13
Landlc�rd may make repairs or redecorale the premises to the exte.nt deemeei hy tiie I..andlorcl
necessa�y c�r commercially reasonable. Notwithstanding any action of possessic�n c�r re-entry into
the Den�ised Pceinises by tl�e L�ndlurd �:is permitted in this Article, or tennination of tl�is L,eas� as
pe.nzlitted t�nder tl�is Sectiofz, it is stipulateci and a}�'eed thak te���nt shall remain liable to Landlc�rcl
f��r dama�es for breach c>f'this L,ease �v�d o# "Cenant's covenants herel�nder in an a�nc�unt ecjual to tlie
total of the t��llowing:
{a} All tixecl l�ase ren.t 1iCIC�1f1011�1I rent, Co�Yirnc�ry Faeility char�gcs, late eH�ar•�;es,
aciditioi�al rent ��ayable for taxes and c�t:l�er4vise, aaci any a.nd all oth�r char�es
payable by Tenant hereunder or under other agt•eernents with the Landlorcl due for
tlle perioci pric>r tc� the c�ate of tertnination cri� this Lease or re-enliy but un��aad,
#o�etl�er witl� adc�itionai Iale charges fi�ot�l due date until paid; ]'Ll)S
(b} Atl eosts and expenses ittcurred by Lancl.iord in co�lilection with re-en#ry and
repossession of the Demised Pt the re�air, r�;t�civation, rc;mc�delinb, or
retie;eorati<�n tl�ereof to #he state required by tl�is Le�se upo�1 ter�liin�tion or as may
be necessary fc�i• and any brpker's coinmissions, attorneys' fees, and c>tl�ei•
charges incurred in connection therewith oc in c�nnection ���ith relettitig the
De�nisecl I'retnises, includit�g altc�ri�eys' fees, expended in the collectic>n of an
Rents; �'LUS
(c.) A sum equal t.o the preseuf value af all Rents which wc�uld h�ive heen payable
Iiereunde� after the dale afi'ternli«ation or re-entry fi�r tlie balance of� t.he term <�f�
tlle Leas� I�ad �he Lea.��: not been tei�ninated or re-entry ►zlade, together witil
interesi tlier•eoil at tl�e r ate oi� two percenk (2% per anniuY� iti excess c}f the prirne
rate as c3uoted by t1S Bank, N.A., to its best custori�ers, t:>r tl�e high�;st rate
pernaittecl hy la��v, whichever is less fr�rn due date ur�tiI p <��a, r�vvi���n 'I'i
in tlie event the Demiseci Pretnises are relet (�vhich relettir�g s}�all in no event
relieve oi• rclea�;e Tenant of or from liability f�►r dama�;es ht;reundez'} for al! o�' atly
p��rl of t.he lialance of the ori�inal tei7n l�ereof ti�en, for each rnonth dur�tlg such
reletting for whic}i L��i�dlc�rd receives net avails c�f such reletting, Ten<n�t shali be
entitled to a crcdit agai��st its kiability to Landlord #��r such month in an antourat
equ�l to such net avails, and PROVIDED f=URTH�R that, in lieu of dar��ages as
set foi�th ii� t��e ft�regoing prc>visions of this Section, La��dlorc! may w��ive such
foregoing provisio�ls and elec;t, by written i�ofice tc> 'Tenant witl�irl t�inety 90) days
��fter tern�inatior� or re-entry, to rec�ive forthwith as liquiclated damagi;s for suel�
�t in adclition to the amounts specified abovc;, a s�itn equ�il lc� tifteen i�ercent
(15`Yo) of fhe Rent.s whidl �vc�uid have been due anci payable: for tl�e portian of the
balance of the tc;rtn of the Lease fi the cl�ite of early termination or re-enlry
through tl�e final least; year.
14.3 COSTS, EXPENSES ANU A'1"'I'URNEYS FEES. [f�ona party is r�c�uired to seek
le�al cc.�unsel t�tir collection ar tc.> cc�mn�ence litigation or arbitratian in order to enforec the
covei�a�its and agree����nts in this Leasc, the party �revailing in such ct�llectioi�, liti�;ation or
ar shall liave the right t�� reimhursement from the ather party of all re�isotiat�lc costs,
ex��en�e4 and attorncy's fces.
:}?46t;Ov5 (.'AH HIZ l0>-Z
i4
A�'TiCLE XV--ESTUPPEL C~ERT[F[C'ATF., ATTORNMENT AND SUL30kDINA"f'!ON
15.1 LSTC3PPFL CERTIFtCf�'1'E. within tf:n (10) d��ys atter the rec�uest l�y L�ndlord,
ten�nt s}7a11 deliver to La��dlorci a tivrilten and ack�iowied�;ed statet�lent certil=yir�� t}lat I.ancilord
l7as cain�leted u�nstruction of the Dcmised Premises, t.hat tena.nt h.as acce��ted possessic�ti of the
Demised Pru�7iises, tl�at this Lease is uninodified and in fi�ll force 3nd efficct (c�r it ihere have
E}een �nc�diluations, tllat the saine is in fi�ll foree ancl efl�eet as mc�clitied and stating the
modifications}, the coi��mencetnent c3ale £ii1Ci tf'I'131ti1�'itlOft C�1�C nf C}tE; I., eas�:, ihat Landlord is not in
default unc�er the Lease (or, if therc; is a clefi�ult, stating s��ecifically the default} ar�d the clates to
whicl� the "base rent" a.��d c�ther ehar�;es h��ve been paid in advanee, if any, it hein� ir�tenc�ec� that
ai�y sucl� stateizlen.t cfeliverecl pursuant to tl�is Artic.le may be relied upon by any prospective
put�chascr or tnortga�;ee of the i�ee of the Uemiscd Pre�iiises.
15.2 ATTORNMEN"I'. U��on request of Landlord, Tenaz�t shall ii� t1�e evenC any
p►•oceedings are l�rou�ht for the f:orec:iosure of or in the evei�t of exercise of' the pc��ve.r of` sale
u��der any mc�a m��dc hy I.;ai�d[ord cavering Ihe Demised Premises, altorn to tl�e purcl�aser
u�xan any such foreclosure c�r sale and recognire such pu.rchasec as Lancilc�rd under this Le<�se.
15,3 ATTORNEY-IN-FACT. 'I`efl�int, u��t�n request of any party in interest, shall execut�;
prortr�7tly tiuc}1 inst.rumtnts or ce:rtil:icates tc� cariy out the int.ent c�f sections lfi.l, 1(i.2 ��nd lfi.3
above. Tenant hereby i� ap�z�ints I_,3ndlord as attc�rney-in-fact tor Tei�ant with full
pc�we.r and autharity tcai the limited pui of exccuting ar�d d�;livering izl the nanle o1� Tenant
such insiruments or certiticates.
15.4 SLTBURbINnT10N. U�on request af Iandlord, "I'enant shall, in rvritin�*,
subordin��te it.s ►�ights hez to any �n•ound leases or to the lien of any «zortgagc or �nortgage�,
reasonabty r�cceptable to Teitant, vt tl�e lieli resulting fi•c>m any other tnethc>cl of financin�; t>r
refinancii�g, now or izcreafter in ti�rce against the land ajicVor huildings c�f which the Deiniseti
r� are a part or against any buildin�s hereafter placec.i upon the iand of wl�ich the Demise:d
Pre���ise� are parts, and ta aIl advances made or hercafter to be made upon t}x; security thereof,
}irovided Tcl�ant is grat�ted nt�n-di.sturbatice rights.
l S.5 R�CORDA"I'I(�N. This Lease shall not be rec��rded without t}�e �rior cc�ris�r�t �7f
Landlc>rci. Upo�i tlle request of Lajidlc>rd, Tenant shall �;xecute a sh.ort farrn of� this Lease �vhich
r��ay l,c recorc�ed in L���dlorci's �c�le discretion.
1 S.6 NOTICE TO MUR'I'Gf�C'TEE. After receivin� written notice fro�n any persi�n,
firn2 oi c�t.her cntity that it hulils a mort.s;agc (r.�}licl� ternl shall include a deed of tru.�t} wl�ich
it�cludes as ���st of the mortga.ged property the Detnisecl Premises, Tenant sliall so lor�g as suc;}�
r»crrtga�;e is outstandinb be reqtiired to give to such ha�der a duplicatc n��tice of any n<�tice
requireci tc� be bive�� to Landlc�rd by t}Zis Lease. It is fi�rthcr agreed that siicl� lzolcier shall hav.e t}�e
sa�ne opportunity to cure any deFault, and the sarne time within which to etfect such cu.ring, as is
avoidable to Landle>rd; and if necessary tu cure such a dcfault, such holdet� sha(1 have a�;cess to
the Dett�iseci Premises.
379l.�ti0v5 CAH B3�31)5•2
1S
ARTICLL XVI LANDLORD DEFAULT
16.1 DFFAULT NO'1�1CC TU LANDLORD. Sh�ulcl Lancilord default i�� the
perf'c.�� of any c�Fthe covenants on tt�e part of the Lancilord to be ke�t or performed and sucli
default sh��l1 continue for thirty (30) d��ys aft�;r written nc�tice to Lancilorci fi«m T'enant specifying
sui;h default, or shou.td any warrailty c�r representation macie l�y Lat�dlord be untrue and remait�
untrue af�.e� thitty (30) days after writlen notice fmm "I 'Critltlt S�3LCif}�ttl�, SUCt1 UCltt'Ut�l, theti �Incl
i n ken or remed ursueci.
tenri a ion �f this l.,ease be cttected or act o ta
c i 1 in such event sh� ll n t c Y�
Y
If the def<�ult c�r untruth is af such cliaracter so as to rec�uire mc�re thtin thit�ty (�0} ilays to rernedy,
the Lai�dl�rd shall have a reasc.�nable �eriod in ��vhieh to rerneciy the san�e, provided Lanci.lc�rd is
prc�ceedin�; dilige��tly. Te«aut waives it5 righ.t t.a make eepairs at Lanc�lord's expense.
ARTICLE XVII MISCF,I..LANEOUS NROVISIONS
17.1 HOLDINC C�VER. In il�e �;vent that Tenant shall coi�tiriue to occu��y the de►nised
Premises after the �xpiration of tl�e ter�7i i>f this t_ease or writtei� extcnsiori of the ternl }�erec>1'
without entering into a ne��v Lcase or written extension of tYie. terrtl hereof saicl tenancy shall he
coilstived to be a"tenancy from i�iot�th to monkh" upon ��11 c�f the other terms �.nd cc�rlditio�is
hea containccl, except wl�ere sa:iYie are ne�t applicable, and except that the rental durin� such
holc(ovc;r }�eric>d sh.all t�e thc tE�en cunent "base rc�it" plus 4f�irty percent {30 thereof aild a.11
"additional rent" sh.all continue to be paid. Nothing contaiiied in this Leas�: 4ha11 �;ranl Tens�nt
any c'ight to hc�ld c�ver.
172 `TJAI�EIZ. Failure on t.l�e art of the Landlard tc� com lain of any �ction or non-
p P
action on the I�ai�t ofi T�;nant, nc� matte.r hocv long ti�� same n�ay contiriue, ancl tic� i7�aller tivl�at
otl�er action or uon-action by Te���nt that Lacidlord has already cotxipl��ined c�f shall never be
deeined to be a wa.iver by Landlorci of any of his ri�l2ts Iiere;�inder. Fu�ther, it is covecianteci and
a�reed tl�at nc� waiver at any tii��� of any of the provisic�ns here<>f �y Landlord, shall l�e ct�risirued
as a waiver of any of the other provisions hereof �.tnd that a waiver at any time ��f any of the
provisions het•GOf shal3 not be construc�i ��s a waivar at any subsequel�t time of t}�e san�te
p�ovisions. The �;o��scnt or approval af tl�e Landlorri to c:�r. of' any actit�n by "I�enant reqi�irin�
Landlorcl's consent or ap��rov�l shall not be decmed tt� waive or render urinccessary Lancil<�rd's
consent or approval to or o£ any subsequenl similar act by Tetiant.
Nc� payment by T�nant, or acceptance ��y L,<indlard, of 1 lesser atnount than shall be due
frc�i�� Tanant to Lat�dlord, even after demand by .Landlorcl for rent pursu�it�t t<.� Tenant's rei�t
defatiilt shall l�e treateci otl�erwis�. thaii a payrnent un account. 'l'he acce��tzn�.e by Lancilc�rd �i
ctic�:ck for a Icsser a1�r�ount wit.l� an cndorsernent or state�7lent therccm, oi l.�pon any letter
,iccoi�lp�nying such c.heck, tl�at said lesser �1mUUnt is payment in full sl�ali be given no effect, anci
L,andlard may accept such cl�eck without prejudice to any further rights or rctnedies �vhici�
Landl�rd tllay have a�;�.ii��st Tenant. Fur failure of the Landlord to bill tin�ely fc.�r taxes or
other additional rcnt as heretafore required shali nc�t he deemed a waiv�r of Tenant's liability ta
����y same.
3�4GGO��5 CAIV BK3t)�
16
t7.3 C`C)VENANT OF QLJlET ENJC�YMENT. Te<n�i�it, subject to the terms �.�n.ci
provisions of t:his Lease, on payrnent of'tlle rent and observing, �:eeping and pertiai•tning all of ti�e
term� and provisiotis of tl�is Lease cm its part to be observed, ke�t aticl pertc>rrned, shatl lawfully,
peaceably and qt�ietly have, tt�ld occupy and enjoy the T3emised Pretnises during the term hereof
�vitl�i�ut liit�dra.nce or objection hy any persons lawfully claiming Lulder Landlr�rd.
17.4 EN77RE AGREEMFNT. TIZis Lease is executed iz� icientical cou;�tet eac��
of which, �vhcn bearing arigina} initials of the pa.reies o�� each page and at eacli change i�l the te;xt
hcrcof� as well as original signatures at the end of eaci� clocun�enl, shall c<�nstitute an origii�al f�r
all pur�.�oses. All previous a�;reetnents, whether c�ral or written, are supersedeci hy and rnergeci
into this Lease. Sul�sequent ch.an.ge sh £1�I IIOt he �)1T]CIICI� UTlIf:Sti C�:C�UC�C� t(? WT'ltlIl� c�TlCj 51�11CC� I)y
the parties ]leretc�.
17.5 INVAL,IDA'I'(ON OF PART1CtJLAR PRO�ISIONS_ lf ax�y clause, teri�i or
prc�vision c}f this Lease, crr the �pplication thereof to a��y person c�r circuwnstance shall to any
exient, be invalid or unenfc�rce�ble, the remainder of'this lease, or the ���plicatit�n of sucl� te��t� or
provisiof� to persons OY G1fCL7tT1Sl ()t�lC;C t1�aI1 those as tc� �vhieh it is hc:ld It1Vc��tCl or
unenforceahie, shall ilc,t be aftecteci thereby, 1nd eacf� ten�r� anc� prc�vision of tl�is I,ease st�all bc
��alid ai�d l�c ent��rced to tl�e fullcst extent permitted by Iaw. it is t}�e intention <�f t}�e p��rties
he�eto that in lieu c�f eac}� clau�e, term or provisiun of this Lease th�t is iilegal invalicl or
u��errforceahle, there �e adcied as part c�f this L,ease a clau5e, tern� nr }�rovisic.�n sirnilar to such
ille�;al invalid c}r u.nenforccable clause, teri�� or provision as may be possik�le ancl wolilrl be legal
valid and e»forceable.
17.6 PROVISI(JNS B[ND1NG, E'I'C. Exce}�t as herein c�therwise ex�.iressly pro�ided,
the ter�ns hereof s}iall be binc�ing upon and shall inure to the bet�etit of tl�e h�irs, successc�rs,
assi�ns and ]eg��lly appointed representative, z of the Landlorcl and tl�e "I'enant. Ezcl�
ternl aa�d cacll �rovision af ttlis Lease to be perforn�ecl by TenaE�t shall be cottstn�eci to he bot}� �i
cover�an! and a coiicliiion.
17.'1 GOVERNiNG LAVJ. The laws ofi the State of Minnesota shall govern the
inte� validity, perfor��nance at7d �;nfi�rcement of this Lease.
17.� NUTtCES. Any notice wl�ich is requireci ut�cier this Lease shall be deemecl
"givc,n" u.pon hand deliveiy or three (3) clays after prepaid posting in the [J. S. Mail w}�ichever
shall {irst occur. N�tice shall be addressed to the addresses listed below or to atty other adcli as
shall Ue cicsignated by �vritten nofice:
If to Landlord: Brooklyn Ccnter EDA
c/� General Manager
Earle I3rown Heritabe Center
Ci 155 Ea.rle Brc�wti Drive
Brooklyt� Cc►�ter, MN 5543Q
If to Tenant: Bro��klyn i-�oYel Partncrs, LLC
c/a Oliver Gompanies
)2�c>60.-5 CAH Bk3DS-2
1�
I i
Sfi29 Cn•anci Avertue, Suite 2
Duluth, MN 558U7
ifi to Teiaai�t's Letider: Prudenti�i.l insurance ��ompany of America
THE PRtIDENTiAi, iNSURANCE C(JMPANY OF �MERIC�
T'ruclential Asset Resources
22U� Ross Avenue, Suite 4900E
(c��t.e�° 2/1S/Of� ZIO�I KOS.S AVC11.11C' St.tite 2500)
Dallas, Texas 752U1
Attention: Legal Department
Ref'erence Loan No. 706107575
Wht;re in tl�is Lease a ccrtain nun�ber of days from datu of r3c�tiee t<� a�,rive» ��ction is
specificd, unEess tlie specific provisioa otl�erwise states, the �iays shall be ct>u.nted as follows; The
tirst calenda.z day sh�ll t�e ex�:ludeci and tlte lasi �lay shall be in.clucied, unless the 1�.St clay is a
Satutciay, Sund�y, or ir;gal 1�oIiday, in which eveait the periotl sl�alf be extencieci to inclucle the next
c���y which is not a Satw Si►t�day c�r ]egal holiday,
17.9 DA1`E O� LE�1SE. AlI refereilc�s to ti�e "date of this Leasc" or "date heret�f sha11 be
cieemed to be that date on which all ��arties hereto have execcated this Lease.
17.10 HEADINGS. T��e he��ding, section numbers and article nun�bers appc�iring in this
Le;aSe are not intended in aziy manner ta deiine, lirnit or describe the scope af any such sGClic>n or
article ��n.d zre solely inseeted for re;acly rtterence purE>osc;s.
17.11 PRUNUt.JNS. As utilized in this Lease, tl�e "singulat�" pronc�uns sllall inclucle the it
�JIll2'il���� �lilC� t�1C. ��YTI£�SCUI111G�� slzall inchTde �he feniinine" �I1Cj t�18 'T1eU�G'T"� and vice versa llil�eSS �i
contr��ty ir�tent speciiica.(ly a�.�pears.
[reEnainder of page lef� blank intentionatIy]
�zac�c},-5 cAx sR�oS-2
18
[N WITNESS WI-iEP�EC}F, the parties heret.o have affixeci tlleir signature:� the ciay atxl year
first ab<�ve, written.
Lf1.NDLURD: Ecc�n�mic f:?evelopmet�t Authc}rity of th�; City c�f Brooklyri C"ex�ter
BY:
I'I President
BY:
CTS Executivc Director
TENANT: Brc,aklyn :E�ote1 Ptjrtners, LLC_..
BY: r" !��;�����2'���'"_
ITS: CfftF� /�7.�RJ�
3246tit1�5 CAH BR30S-2
�y
EXHIBIT A
DEMISED PREMISES
That part of lhe ft�llowin�; discrib�d real ��roperty:
Tract F, Registered L�nd Survey No. 155�4, H�nnepi�i C.onnty, Minnesc:�ta
[Jpon whieh is situated tlle struct��re known as "Buiidin�; D," as dcpieted c�n t.he site plar� belc�w:
"-4,? 1 k'3
I t
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3246(i(Jvj CAH L�R105-2
z�)