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HomeMy WebLinkAbout2005-099 CCRMember Kay Lasman introduced the following resolution and moved its adoption: RESOLUTION NO. 2005-99 RESOLUTION AUTHORIZING LEASE BETWEEN CITY OF BROOKLYN CENTER AND LOGIS FOR POLICE BUILDING SPACE WHEREAS, attached to and incorporated herein by reference as Exhibit 1 is a proposed lease between LOGIS and the City of Brooklyn Center for use of approximately 1,000 square feet of space on the second floor of the Police headquarters building; and WHEREAS, the terms and conditions set forth in the proposed lease attached hereto as Exhibit 1 appears to be reasonable and proper. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center that the Mayor and City Manger be and hereby are authorized to execute the proposed lease attached hereto as Exhibit 1 on behalf of the City of Brooklyn Center with such finalization of the exact language to be set forth in the Exhibits as are deemed acceptable by the City Manager to finalize the exact descriptions set forth in the Exhibits. June 27. 2005 ?ate 0 Mayor ATTEST: City Clerk The motion for the adoption of the foregoing resolution was duly seconded by member Kathleen Carmody and upon vote being taken thereon, the following voted in favor thereof: Myrna Kragness, Kathleen Carmody, Kay Lasman, and Diane Niesen; and the following voted against the same: whereupon said resolution was declared duly passed and adopted. RESOLUTION NO. 2005-99 Exhibit 1 LEASE AGREEMENT This Lease Agreement ("Lease") is made and effective this day of 2005, by and between LOGIS ("Tenant") and City of Brooklyn Center ("City"). City is the owner of land and improvements commonly known and numbered as: Citv of Brooklvn Center 6645 Humboldt Avenue North Brooklyn Center, MN 55430 and legally described as follows (the `Building"): City makes available for lease a portion of the Building designated as: Police second floor expansion area, approximately 600 square feet of unfinished building area for the exclusive use as Tenant's computer facility herein (the "Leased Premises") In addition the City will also provide approximately 400 square feet of unfinished building area adjacent to this area for use during emergencies by the Tenant as an emergency operations area herein (the "Emergency Area"). City desires to lease the Leased Premises to Tenant, and Tenant desires to lease the Leased Premises from City for the term, at the rental and upon the covenants, conditions and provisions herein set forth. THEREFORE, in consideration of the mutual promises herein, contained and other good and valuable consideration, it is agreed: 1. Term. A. City hereby leases the Leased Premises to Tenant, and Tenant hereby leases the same from City, for an "Initial Tenn" beginning August 1, 2005 and ending July 31, 2011. City shall use its best efforts to give Tenant possession as nearly as possible at the beginning of the Initial Term. If City is unable to timely provide the Leased Premises, rent shall abate for the period of delay. Tenant shall make no other claim against City for any such delay. B. Prior to the end of the Initial Term the City will negotiate in good faith with Tenant for additional lease terms as long as the facility and space are available for lease by the City of Brooklyn Center and requested by Tenant. CLL-261124v1 1 BR2914 RESOLUTION NO. 2005-99 Exhibit 1 2. Rental. Tenant shall pay to City during the Initial Term rental of $9.00 a square foot for area defined as Leased Premises per year, payable in 12 monthly installments plus an operating expense of $5.00 a square foot per year due and payable with the annual rent. Operating expense shall cover the cost of all utilities, security and common area maintenance services and shall be adjusted annually as of August first in accordance with the CPI-U (U.S. City Average - All Items). A. Each installment payment shall be due in advance on the first day of each calendar month during the lease term to City at: City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 or at such other place designated by written notice from City to Tenant. The rental payment amount for any partial calendar months included in the lease term shall be prorated on a daily basis. B. When Emergency Area is required by Tenant for emergency use, Tenant shall pay an annual lease rate of $6.00 per square foot pro-rated for the number of days or partial days of usage plus an operating expense of $3.00 per square foot (adjusted as of each August first for the CPI-U), prorated for the period of usage, payable with the first monthly rent payment due more than one month after such emergency use. 3. Use Notwithstanding the forgoing, Tenant shall not use the Leased Premises for the purposes of storing, manufacturing or selling any explosives, flammables or other inherently dangerous substance, chemical, thing or device. 4. Sublease and Assignment. Tenant shall have the right without City's consent, to assign this Lease to a corporation with which Tenant may merge or consolidate, to any subsidiary of Tenant, to any corporation under common control with Tenant, or to a purchaser of substantially all of Tenant's assets, provided any such assignee is a government unit or joint powers organization. Except as set forth above, Tenant shall not sublease all or any part of the Leased Premises, or assign this Lease in whole or in part without City's consent, such consent not to be unreasonably withheld or delayed. CLL-261124v 1 2 BR291.4 RESOLUTION NO. 2005-99 Exhibit 1 5. Repairs. During the Lease term, Tenant shall make, at Tenant's expense, all necessary repairs to the Leased Premises. Repairs shall include such items as routine repairs of floors, walls, ceilings, and other parts of the Leased Premises damaged or worn through normal occupancy, except for major mechanical systems or the roof, subject to the obligations of the parties otherwise set forth in this Lease. 6. Alterations and Improvements. Tenant, at Tenant's expense, shall have the right following City's consent to remodel, redecorate, and make additions, improvements and replacements of and to all or any part of the Leased Premises from time to time as Tenant may deem desirable, provided the same are made in a workmanlike manner and utilizing good quality materials. Tenant shall have the right to place and install personal property, trade fixtures, equipment and other temporary installations in and upon the Leased Premises, and fasten the same to the premises. All personal property, equipment, machinery, trade fixtures and temporary installations, whether acquired by Tenant at the commencement of the Lease term or placed or installed on the Leased Premises by Tenant thereafter, shall remain Tenant's property free and clear of any claim by City. Tenant shall have the right to remove the same at any time during the term of this Lease provided that all damage to the Leased Premises caused by such removal shall be repaired by Tenant at Tenant's expense. All improvements made to satisfy Tenant's requirements shall be made at Tenant's expense. Emergency Area shall remain unimproved. At the end of this agreement, all improvements to the building will revert to City ownership or upon demand of the City they shall be removed by Tenant at its expense, returning the area to its original condition. 7. Insurance. A. If the Leased Premises or any other part of the Building is damaged by fire or other casualty resulting from any act or negligence of Tenant or any of Tenant's agents, employees or invitees, rent shall not be diminished or abated while such damages are under repair, and Tenant shall be responsible for the costs of repair not covered by insurance. B. City shall maintain fire and extended coverage insurance on the Building and the Leased Premises in such amounts as City shall deem appropriate. Tenant shall be responsible, at its expense, for fire and extended coverage insurance on all of its personal property, including removable trade fixtures, located in the Leased Premises. CLL-261124v 1 3 BR2914 RESOLUTION NO. 2005-99 Exhibit 1 C. Tenant and City shall, each at its own expense, maintain a policy or policies of comprehensive general liability insurance with respect to the respective activities of each in the Building with the premiums thereon fully paid on or before due date, issued by and binding upon some insurance company approved by City, such insurance to afford minimum protection of not less than $1,000,000 combined single limit coverage of bodily injury, property damage or combination thereof. City shall be listed as an additional insured on Tenant's policy or policies of comprehensive general liability insurance, and Tenant shall provide City with current Certificates of Insurance evidencing Tenant's compliance with this Paragraph. Tenant shall obtain the agreement of Tenant's insurers to notify City that a policy is due to expire at least ( 10) days prior to such expiration. City shall not be required to maintain insurance against thefts within the Leased Premises or the Building. 8. Utilities. City will provide access to and allow the use of all building utilities including heating, cooling, local telephone, UPS, and back-up generator service for connection to Tenant's equipment. Cost of all utilities shall be covered by City. 9. Access to Fiber optic cabling. City shall provide the required fiber optic lines from City Hall to the Police Building. The installation shall include a 72 strand fiber optic single mode cable with 24 strands allocated to Tenant and 48 strands allocated to the City. Tenant shall reimburse City 66% of the actual cost of the Fiber Optic line installation from City Hall to the Police Station. Upon reimbursement, Tenant shall have and maintain ownership of 24 of the fiber optic strands that span between City Hall and the Police Building. This ownership shall continue past the end of this agreement and will be managed under the LOGIS/Brooklyn Center INET agreement. 10. Custodial Maintenance. City will provide reasonable routine custodial maintenance service for the leased premises. 11. Entry. City shall have the right to enter upon the Leased Premises at reasonable hours to inspect the same, provided City shall not thereby unreasonably interfere with Tenant's business on the Leased Premises. CLL-261124v 1 4 BR291-4 RESOLUTION NO. 2005-99 Exhibit 1 12. Common Areas and Restricted Areas. City will provide normal use of all common areas for use by Tenant's employees. Tenant's employees will not enter restricted areas. Common areas and restricted areas are depicted on the attached Exhibit A. 13. Access. City will provide 24 hour 7 day a week access to all leased space. 14. Parking. During the term of this Lease; Tenant shall have the non-exclusive use, in common with City, other tenants of the Building, their guests and invitees, of the non-reserved common automobile parking areas, driveways, and footways, subject to rules and regulations for the use thereof as prescribed from time to time by City. City reserves the right to designate parking areas within the Building or in reasonable proximity thereto, for Tenant and Tenant's agents and employees. Tenant hereby leases from City 3 parking spaces during non emergency times and 12 parking spots during emergencies, such spaces to be on a first come-first served basis. 15. Building Rules. Tenant will comply with the rules of the Building adopted and amended by City from time to time and will cause all of its agents, employees, invitees and visitors to do so. All changes to such rules will be sent by City to Tenant in writing. The initial rules for the Building are attached hereto as Exhibit "B" and incorporated herein for all purposes. 16. Damage and Destruction. Subject to Section 7 A. above, if the Leased Premises or any part thereof or any appurtenance thereto is so damaged by fire, casualty or structural defects that the same cannot be used for Tenant's purposes, then Tenant shall have the right within ninety (90) days following damage to elect by notice to City to terminate this Lease as of the date of such damage. In the event of minor damage to any part of the Leased Premises, and if such damage does not render the Leased Premises unusable for Tenant's purposes, City shall promptly repair such damage at the cost of the City. In making the repairs called for in this paragraph, City shall not be liable for any delays resulting from strikes, governmental restrictions, inability to obtain necessary materials or labor or other matters which are beyond the reasonable control of City. Tenant shall be relieved from paying rent and other charges during any portion of the Lease term that the Leased Premises are inoperable or unfit for occupancy, or use, in whole or in part, for Tenant's purposes. Rentals and other charges paid in advance for any such periods shall be credited on the next ensuing payments, if any, but if no further payments are to be made, any such CLL-261124v 1 5 BR291-4 RESOLUTION NO. 2005-99 Exhibit 1 advance payments shall be refunded to Tenant. The provisions of this paragraph extend not only to the matters aforesaid, but also to any occurrence that is beyond Tenant's reasonable control and that renders the Leased Premises, or any appurtenance thereto, inoperable or unfit for occupancy or use, in whole or in part, for Tenant's purposes. 17. Default. If default shall at any time be made by Tenant in the payment of rent when due to City as herein provided, and if said default shall continue for fifteen (15) days after written notice thereof shall have been given to Tenant by City, or if default shall be made in any of the other covenants or conditions to be kept, observed and performed by Tenant, and such default shall continue for thirty (30) days after notice thereof in writing to Tenant by City without correction thereof then having been commenced and thereafter diligently prosecuted, City may declare the term of this Lease ended and terminated by giving Tenant written notice of such intention, and if possession of the Leased Premises is not surrendered, City may reenter said premises. City shall have, in addition to the remedy above provided, any other right or remedy available to City on account of any Tenant default, either in law or equity. City shall use reasonable efforts to mitigate its damages. 18. Quiet Possession. City covenants and warrants that upon performance by Tenant of its obligations hereunder, City will keep and maintain Tenant in exclusive, quiet, peaceable and undisturbed and uninterrupted possession of the Leased Premises during the term of this Lease. 19. Condemnation. If any legally constituted authority condemns the Building or such part thereof which shall make the Leased Premises unsuitable for leasing, this Lease shall cease when the public authority takes possession, and City and Tenant shall account for rental as of that date. Tenant shall be entitled to recover no compensation from the condemning authority for any loss or damage caused by the condemnation other than relocation benefits. Neither party shall have any rights in or to any award made to the other by the condemning authority. 20. Subordination. Tenant accepts this Lease subject and subordinate to any mortgage, deed of trust or other lien presently existing or hereafter arising upon the Leased Premises, or upon the Building and to any renewals, refinancing and extensions thereof, but Tenant agrees that any such mortgagee shall have the right at any time to subordinate such mortgage, deed of trust or other lien to this Lease on such terms and subject to such conditions as such mortgagee may deem appropriate in its discretion. City is hereby irrevocably vested with full power and authority to subordinate this Lease to any mortgage, deed of trust or other lien now existing or hereafter placed upon the Leased Premises of the Building, and CLL-261124v1 6 BR2914 RESOLUTION NO. 2005-99 Exhibit 1 Tenant agrees upon demand to execute such further instruments subordinating this Lease or attorning to the holder of any such liens as City may request. In the event that Tenant should fail to execute any instrument of subordination herein required to be executed by Tenant promptly as requested, Tenant hereby irrevocably constitutes City as its attorney- in-fact to execute such instrument in Tenant's name, place and stead, it being agreed that such power is one coupled with an interest. Tenant agrees that it will from time to time upon request by City execute and deliver to such persons as City shall request a statement in recordable form certifying that this Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect as so modified), stating the dates to which rent and other charges payable under this Lease have been paid, stating that City is not in default hereunder (or if Tenant alleges a default stating the nature of such alleged default) and further stating such other matters as City shall reasonably require. 21. Notice. Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by United States certified mail, return receipt requested, addressed as follows: If to City to: Michael McCauley. Citv Manaeer City of Brooklyn Center 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 If to Tenant to: Mike Garris. Director LOGIS 5750 Duluth Street Golden Valley, MN 55422 City and Tenant shall each have the right from time to time to change the place notice is to be given under this paragraph by written notice thereof to the other party. 22. Waiver. No waiver of any default of City or Tenant hereunder shall be implied from any omission or failure to take any action on account of such default if such default persists or is repeated, and no express waiver shall affect any default other than the default specified in the express waiver and that only for the time and to the extent therein stated. One or more waivers by City or Tenant shall not be construed as a waiver of a subsequent breach of the same covenant, term or condition. CLL-261124v 1 7 BR291.4 RESOLUTION NO. 2005-99 Exhibit 1 23. Memorandum of Lease. The parties hereto contemplate that this Lease should not and shall not be filed for record, but in lieu thereof, at the request of either party, City and Tenant shall execute a Memorandum of Lease to be recorded for the purpose of giving record notice of the appropriate provisions of this Lease. 24. Headings. The headings used in this Lease are for convenience of the parties only and shall not be considered in interpreting the meaning of any provision of this Lease. 25. Successors. The provisions of this Lease shall extend to and be binding upon City and Tenant and their respective legal representatives, successors and assigns. 26. Consent. City shall not unreasonably withhold or delay its consent with respect to any matter for which City's consent is required or desirable under this Lease. 27. Performance. If there is a default with respect to any of City's covenants, warranties or representations under this Lease, and if the default continues more than fifteen (15) days after notice in writing from Tenant to City specifying the default, Tenant may, at its option and without affecting any other remedy hereunder, cure such default and deduct the cost thereof from the next accruing installment or installments of rent payable hereunder until Tenant shall have been fully reimbursed for such expenditures. 28. Compliance with Law. Tenant shall comply with all laws, orders, ordinances and other public requirements now or hereafter pertaining to Tenant's use of the Leased Premises. City shall comply with all laws, orders, ordinances and other public requirements now or hereafter affecting the Leased Premises. 29. Final Agreement. This Agreement terminates and supersedes all prior understandings or agreements on the subject matter hereof. This Agreement may be modified only by a further writing that is duly executed by both parties. CLL-261124v 1 8 BR291-4 RESOLUTION NO. 2005-99 Exhibit I 30. Governing Law. This Agreement shall be governed, construed and interpreted by, through and under the Laws of the State of Minnesota. IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written. [City] [Tenant] 1 CLL-261124v 1 9 BR291-4 RESOLUTION NO. 2005-99 W~ C1 0 13 ~lj 0 o t(T~ m m `LJ m E) (D (1) CIQ EIM m Q.. n --n c ~J h• ~~t DO M p 7, V " Ili l ~ lllll lllllll ~ z c~ S a ,o 14-