Loading...
HomeMy WebLinkAbout1991 02-11 EDAP Regular Session EDA AGENDA CITY OF BROOKLYN CENTER FEBRUARY 11, 1991 (following adjournment of City Council meeting) 1. Call to Order 2. Roll Call 3. Approval of Minutes: a. November 19, 1990 - Special Session b. December 3, 1990 - Special Session c. January 14, 1991 - Special Session 4. Resolution: a. Approval of Quotations for Tenant Improvements to the D Barn (David C. Bell lease) 5. Adjournment '5a— 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 SPECIAL SESSION NOVEMBER 19, 1990 CONSTITUTION HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Dean Nyquist at 11:18 p.m. ROLL CALL President Dean Nyquist, Commissioners Celia Scott, Todd Paulson, Jerry Pedlar, and Philip Cohen. Also present were EDA Director Gerald Splinter, Director of Public Works Sy Knapp, Finance Director Paul Holmlund, Director of Planning and Inspection Ron Warren, City Attorney Charlie LeFevere, Assistant Finance Director Charlie Hansen, EDA Assistant Coordinator Tom Bublitz, Public Works Coordinator Diane Spector, and Administrative Aide Patti Page. RESOLUTION NO. 90 -13 Commissioner Celia Scott introduced the following resolution and moved its adoption: RESOLUTION APPROVING TWO (2) BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY GRANTS (FILE NOS. H84 AND H85) The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Todd Paulson, and the motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Pedlar and seconded by Commissioner Paulson to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 11:19 p.m. President 11/19/90 -1- 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 SPECIAL SESSION DECEMBER 3, 1990 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Dean Nyquist at 9:47 p.m. ROLL CALL President Dean Nyquist, Commissioners Celia Scott, Todd Paulson, and Philip Cohen. Also present were EDA Director Gerald Splinter, Director of Public Works Sy Knapp, City Attorney Charlie LeFevere, EDA Coordinator Brad Hoffman, and Administrative Aide Patti Page. APPROVAL OF MINUTES - OCTOBER 15 1990 - SPECIAL SESSION There was a motion by Commissioner Cohen and seconded by Commissioner Paulson to approve the minutes of the October 15, 1990, Economic Development Authority meeting. The motion passed. Commissioner Scott abstained from the vote. RESOLUTIONS The EDA Director presented a Resolution Accepting Final Relocation Claim for 6730 Perry Avenue North and Authorizing Payment. RESOLUTION NO. 90 -14 Commissioner Celia Scott introduced the following resolution and moved its adoption: RESOLUTION ACCEPTING THE FINAL RELOCATION CLAIM FORM FOR 6730 PERRY AVENUE NORTH AND AUTHORIZING PAYMENT FOR THE FINAL RELOCATION COSTS The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Todd Paulson, and the motion passed unanimously. The EDA Director presented a Resolution Accepting a Proposal for a Commercial /Industrial Study. The EDA Coordinator stated this is the counterpart to the housing study. He noted special attention would be paid to the four key areas. He stated the RFP was mailed to eight firms and four proposals were received. He stated an interview group reviewed the proposals and interviewed the firms. Councilmember Paulson inquired if the Maxfield group had the lowest price for its proposal. The EDA Coordinator stated it happened to turn out that way; however, price was not a key factor. He noted the interview team picked the firm that would do the best job for the City. RESOLUTION NO. 90 -15 Commissioner Philip Cohen introduced the following resolution and moved its 12/3/90 -1- adoption: RESOLUTION ACCEPTING AND APPROVING A CONTRACT WITH MAXFIELD RESEARCH GROUP, INC. FOR A COMMERCIAL /INDUSTRIAL STUDY The motion for the adoption of the foregoing resolution was duly seconded by Commissioner Celia Scott, and the motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Paulson and seconded by Commissioner Cohen to adjourn the meeting. The motion passed unanimously. The Economic Development Authority meeting adjourned at 10:55 p.m. President 12/3/90 -2- 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 SPECIAL SESSION JANUARY 14, 1991 CITY HALL CALL TO ORDER The Brooklyn Center Economic Development Authority met in special session and was called to order by President Todd Paulson at 10:36 p.m. ROLL CALL President Todd Paulson, Commissioners Celia Scott, Jerry Pedlar, and Dave Rosene. Also present were EDA Director Gerald Splinter, Director of Public Works Sy Knapp, Finance Director Paul Holmlund, Director of Planning and Inspection Ron Warren, City Attorney Charlie LeFevere, EDA Coordinator Brad Hoffman, Assistant EDA Coordinator Tom Bublitz, Deputy City Clerk Patti Page, and Council Secretary Ann Odden. DISCUSSION ITEMS EBF MANAGEMENT CONTRACT REVIEW The EDA Director reviewed the Earle Brown Heritage Center transition and stated the attorneys are working to resolve the matter and facilitate the transition between the EDA and EBF Management. Terms of the contract and reimbursement requests are the key issues to resolve. He reported it would be necessary to employ most of the existing staff as EDA employees, although this would have little effect on the cost of operating the Center, which has been paid by the EDA. He noted taking over EBF Management employees would provide the continuity necessary for the operation of the facility. He recommended the EDA examine the Center closely in the next six months before establishment of a final organization structure and proposed that Judith Bergeland become the assistant manager with responsibility for the day -to -day operation of the site. He stated financial /accounting responsibilities were to be transferred directly to the Finance Department. Commissioner Scott questioned whether employees would become employees of the City during the interim period. The EDA Director indicated the City would prefer not to negotiate contracts with all employees at this time but would leave the option open in certain cases. Councilmember Pedlar raised the following issues: 1) What is the process 1/14/91 - 1 - for reversing the process if it becomes apparent it is not workable; 2) How does it affect the comparable worth of the employees; and 3) Is it possible to review the situation in three months. He suggested tabling the action until these and other questions can be answered might be advisable. The EDA Coordinator indicated action should be taken as soon as possible to provide continuity, as well as to give the EDA a basis on which to pay the employees. There was a motion by Commissioner Pedlar and seconded by Commissioner Scott to authorize the transition as recommended by Staff, with the stipulation that the matter be reviewed in three months. The motion passed unanimously. ADJOURNMENT There was a motion by Commissioner Pedlar and seconded by Commissioner Scott to adjourn the meeting. The motion passed unanimously. The Brooklyn Center Economic Development Authority adjourned at 10:55 p.m. President Recorded and transcribed by: Ann J. Odden Northern Counties Secretarial Service 1/14/91 2 - MEMORANDUM TO: Gerald G. Splinter FROM: Brad Hoffman DATE: February 8, 1991 SUBJECT: David C. Bell Lease "D" Barn At the January 1991 meeting of the EDA, staff was instructed to conclude a lease agreement with D. C. Bell and obtain written quotations for the tenant improvement work required under the terms of the lease. Attached, you will find a copy of the lease to be executed. You will note that the provision in the previous addendum presented to you giving D. C. Bell a right of first refusal to a future "G" barn has been eliminated. Also, the location of a satellite dish requires a mutually agreed upon location. Since the presentation to the EDA on the costs of completing the D barn and the value of the lease to the EDA, I have discovered additional costs that were not known to the EDA at that time. Note the attached ' ( ched correspondence.) I have discussed the EDA 's obligation to honor this commitment for a finder's commission to Real Estate Directors, Inc. with the city attorney. The cost is an estimated $9,662.50. Since EBF Management was our representative at the time of the obligation, the EDA will have to honor it if we enter into a lease with D. C. Bell. I would note that finder's fees of this type are common in the trade. The tenant has requested some changes in the layout of their space. The net result is an estimated additional cost of $1,568 to the already approved budget. With an additional cost of approximately $9,662 to this lease, it is necessary to run the numbers over again for your consideration. Previously, it was estimated that the actual negative cash flow over the five (5) year term of the lease would be $50,000 to $60,000. The total cost was amortized at 9.5 percent. However, the loan to the EDA establishing the project was set at eight (8) percent. The negative cash flow, as the deal is now known to us, will be approximately $55,000. The reason our actual cash loss remains the same is because of the difference in the interest rate used to do the original projection. Our total operating cost will be approximately $300,720 over the term of the lease, and the income generated will be approximately $246,955. Given our build- out costs (cost to bring the D barn to a minimum level before tenant improvement costs) are about $60,000, this lease is still a good deal for the EDA. You will note that I have used a short period of time to write off costs that would normally be written off over a longer period. Also, approximately $64,000 of the cost Gerald G. Splinter February 8, 1991 Page 2 is in the form of property tax that does come back to the EDA for property tax purposes. We have obtained written quotations on all work over $5,000 for your approval. However, many items are less than $5,000, but we still have quotations on that work. The following is a list of all subcontractors involved. Greg Watson, who has been the construction manager throughout the project, will supervise this tenant improvement project. JOB SUBCONTRACTOR AMOUNT Earthwork F. M. Fratalone $ 1,600 Lawns and Plants Second Nature 680 CIP Concrete (Floors) Tom Simon Co. 1,952 Cement Deck Acoustic Floors 1,733 Unit Masonry (Entry) Tom Simon Co. 532 Miscellaneous Metal (Budget Item) 1,500 Rough Carpentry Material N. C. Bennett 2,092 Labor Construction 70 4,500* Labor (Steel -Stud) Mulcahy 4,840 Finish Carpentry Material N. C. Bennett 1,270 Labor Construction 70 9,175* Custom Woodwork Urban Cabinetry 3,100 Damp Proofing (Budget Item) 150 Building Insulation Intex 3,192 Sound Insulation Mulcahy 1,834 Membrane Roofing McPhilips 1,160 Caulking /Sealants (Budget Item) 300 Metal Doors /Frames Door Service 1,850 Wood Doors Door Service 3,649 Finish Hardware Door Service 3,478 Glass and Glazing (Budget Item) 2,351 Gypsum Drywall Sheetrock Mulcahy 11,870 Tape and Sand Mulcahy 6,225 Tile Work Grazzini 4,325 Carpet Metro Floor 6,089 Resilient Floor (Budget Item) 117 Painting Northern Painting 14,890 Toilet Partitions Door Service 353 Fire Extinguishers (Budget Item) 120 Toilet /Bath Accessories Door Service 355 Plumbing Bohn Mechanical 10,800 Fire Protection Olson Fire 9,535 HVAC JLK Heating 14,800 Gerald G. Splinter February 8, 1991 Page 3 JOB SUBCONTRACTOR AMOUNT Electric Base Work Standard $ 12,450 Tenant Fixtures Standard 7,667 Monday evening I will provide you with a list of the quotations received in each of these categories. Attachments • Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION AUTHORIZING THE SIGNING OF A LEASE FOR THE "D" BARN AT THE EARLE BROWN HERITAGE CENTER AND ACCEPTING WRITTEN QUOTATION FOR WORK WHEREAS, the Brooklyn Center Economic Development Authority has received a proposed lease for the "D" barn at the Earle Brown Heritage Center, and WHEREAS, the Economic Development Authority has received P Y written quotations for tenant improvements and the cost of the "D" bard improvements will be $176,834, and WHEREAS, the EDA through EBF Management employed the services of Real Estate Director to locate tenants to lease office space, and WHEREAS, the commission to Real Estate Director is 2.50 per foot or $9,662.50. NOW, THEREFORE, BE IT RESOLVED THAT THE ECONOMIC DEVELOPMENT AUTHORITY in and for the City of Brooklyn Center that: 1. The President be authorized to sign a lease with David C. Bell Mortgage Inc.; and 2. The budget for the completion of the "D" barn be adjusted to $186,496.50; and 3. All costs for this project shall be allocated to the Earle Brown Heritage Center; and 4. The Earle Brown Farm Tax Increment District shall provide a loan of the necessary funds which shall be repaid along with 8% interest over the life of the lease; and 5. The commission to Real Estate Director in the amount of $9,662.50 be paid; and 6. The following quotations from subcontractors be accepted: a. Plumbing Bohn Mechanical 10,800 b. Fire Protection Olson Fire Protection 9,535 c. HVAC JLK Heating 14,800 d. Electric 1. Base Work Standard 12,450 2. Tenant Fixtures Standard 7,667 2. Tenant Fixtures Standard 7,667 e. Drywall Mulcahy 11,870 f. Tape & Sand Mulcahy 6,225 g. Carpet Metro Floor Covering 6,089 h. Finish Carpentry Construction 70 9,175 i. Cabinet Woodwork Urban Cabinetry 8,425 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. Real Estate Directors, Inc. 4607 Drew Avenue North Minneapolis, MN 55422 L. A. Beisner E.B.F. Management 6155 Earle Brown Drive Brooklyn Center 9/19/90 re: Bell Mortgage Co. D. C. Bell Investment Co. Dear Al, This letter will serve as formal registration of the above captioned companies that are interested in leasing and occupying office space in one or more of the buildings at Heritage Center. Bell Mortgage space requirements are for between 5,000 SF- 10,000 SF based upon their consolidation plans. You know Gary Kirt, resident of Bell Mortgage P g ge Co. I will arrange a specific meeting between you and he to discuss the space. I understand that the leasing commission is $2.50 P /SF based upon a three year term. This is acceptable to us. I look forward to working with you. Sincerely, f Joel DeVries Real Estate Directors, Inc. xprl 30 '91 I.4 40 D. C. BEL P,1/1 BELL MORTGAGE COMPANY 1.t611'fdnbe p iriCr; t0A0 To: Brooklyn Center R.D,A, Fromi Bell Mortgage Company /D.C. Bell Company Re: "D" Barn Lease and Related Matters I hereby authorize Al $eisner or Real Estate Directors to aet on our behalf in tha successful le negoti fo the I'D" Barn or other lease space at the Kerltaga Canter. v ry K�.rt w.W� -- President .� jonva 29, 1991 3915 HIGHWAY 7 • MINNEAPOLIS, MN 55416 • (6121 v7,0.1880 inn. !.r eravti+rKrs, ri +t.r e... r. ,T� ... � tis t,C�dS.t Yt�OT{J:i. t• ?7rJJ � tn. z. ,.•�.:.n.... 7 V ; BRAT? HOFFW k'AOMI AL BEISNER Rg; BELL MORTGAGE LEASE At our January 7th meeting you stated that the only items regarding the Bell lease that needcd to be changed were; -changing the occupancy date from February 1st to April let - put a time limit on Bell Mortgage right of first r0rusa.l both of these items were completed in the leases that you have in hand. The commission due is not to a 'Beisner company or related entity. Leasing comiiiissions were paid 0 $2.50 P /SF for a three year tern for the Sylvan Learning Center space and the Farm Journal space. This is consistent with tilt policy and is typical if not under market for this quality and lenght of lease. Brokerage fees are 6tandard. I would very much like to *et this matter and other heritage Center / FBr Management Company matters cleared up soon. Can we soon? January 31. 1991 L B�INER TD 6100 Summit Drive North Brooklyn Center, MN 55430 (612) 566.5903 • October 1, 1990 Joel DeVries Real Estate Directors, Inc. 4915 Valley Forge N. Plymouth, MN 55442 Dear Joel, I am in receipt of your registration letter of Bell Mortgage. We have about 5,000 SF available in our "G" Barn that is not yet constructed and possibly 4,500 -5,000 SF that may be available in the "D" Barn. The "0" Barn is presently being negotiated with another company but their credit is being scrutinized. The standard commission is $2.50 P /SF based on a three year lease. We pay 50% upon satisfactory execution of the lease and the balance upon occupancy by the tenant. I look forward to successful negotiations with you and Gary. Sincerely, C- L. A. Beisner LAB:sl BEISNER LTD. • 6155 Earle Brown Drive Brooklyn Center, MN 55430 (612) 569 -6300 Fax 569 -6320 ~ LEASE Brooklyn Center EDA $ Varies (Owner /Landlord) (Lease Date) (Monthly Base Rent) Bell Mortgage Co. Suite 100 $ 4,500.00 ❑PAID (Tenant) (Unit(s)) (Security Deposit) Earle Brown Heritage Center 5 Years $ 4,026.04 11 PAID (Project) (Term) (First Month's Rent) 6235 Earle Brown Drive April 1, 1991 $ ❑PAID (Address) (Beginning) (Improvements) Brooklyn Center, MN 55430 March 31, 1 996 $ (City, State, Zip) (Ending) (Receipt By) THIS LEASE is executed this day of 19 between Brooklyn Center EDA with its principal place of business a , 6301 Shingle Creek Parkway, Brooklyn Center, MN 55430 (the "Landlord "),and Bell Mortgage Co. a (corporation) (partnership) (proprietorship), organized under the laws of the State of Minnesota with its principal place of business at (the "Tenant "). 3915 Highway 7, Minneapolis, MN 55410 1. DESCRIPTION: The landlord leases to the Tenant the following described place in the development known as Earle Brown Heritage Center 3,865 square feet (the "Premises ") located in the D Barn (the "Building "). The Building address is 6235 Earle Brown Drive, Brooklyn Center, MN 55430 with location upon a portion of the parcel of land legally described as follows: Tract D, RLS 1594 The Premises are delineated in red ink on the plans of the Building hereto and incorporated herein by reference as Exhibit "A ". 2. TERM: This lease will beforaterm of 5 years and 0 months. The term shall commence upon Apri 1 ,19 ,and will expire or five years after the commencement of the term. upon March 31 19 9 �. / on June 1 1991 or 2 months after the Payment of rent shall begin tK gOp("I *X*MMgg)h,)(rA Premises are ready for occupancy if the Premises are not ready for occupancy at the commencement date of the Term. This term shall automatically renew, for a like term, at the expiration date of any renewal thereof, at landlord's option, at an adjusted rental rate of the then existing monthly rental rate plus an increase of one percent If %) per month of past occupancy, unless, at least ninety (90) days prior to said expiration, Tenant shall notify Landlord, in writing, of his intention not to renew. 3. CONSTRUCTION WORK LETTER, CONDITION OF PREMISES, AND TENANT'S TRADE FIXTURES: If the premises are unfinished at present, the parties hereto will finish them in accordance with the terms and provisions as set out in the "Work Letter" executed with this lease and attached as Exhibit "B ". By occupying the Premises as a tenant, or to perform finishing work, Tenant shall have accepted the Premises, and acknowledged that the Premises are in the condition re uued by Landlord's covenants, except as to incomplete or defective items of Landlord's work then specified in writing by Tenant Premises are in t�e condition required by Landlord's covenants, except as to incomplete or defective it o f Landlord's work then specified in writing by Tenant. 4. OPERATION AND USE OF PREMISES: a. The Tenant shall use the Premises for conducting only the following business: Mortage Company and Related Activities. b. Tenant's use of the Premises shall conform to all the Landlord's rules and regulations relating to the use of the Premises (see item 22.), and which may be amended by - Landlord from time to time. Outside storage on the premises of any type of equipment, property, or materials owned or used on the Premises by Tenant or its customers and suppliers shall be permitted only with the prior written variance granted by the City of Brooklyn Center. c. TheTenant shall not injure the Premises or be a nuisance to others; shall keep the Premises free from rubbish; shall store all rubbish within the Premises, and arrange for the regular pickup of rubbish and for janitorial service at its expense. The Tenant shall not obstruct in any way the sidewalk, areaways, parking lots, receiving docks or common areas of the Building or Premises. d. Tenant shall, at its expense, comply with all laws, governmental orders, regulations and rules relating to the use and condition of the Premises which are primarily occasioned by the purpose for which it uses or proposes to use the Premises, including all such laws, governmental orders, regulations and rules which relate to Tenant's improvements or betterments. _. 5. RENT: Tenant agrees to pay rent to the Landlord at its address above, or at such other address designated by Landlord in writing during the term of the following manner: $12.50 psf - year 1; $13.00 psf - year 2; $13.50 psf - year 3; Afixed rent atthe annual rate o f $14. 00 psf - year 4; $14.50 psf - 5. ($ * ), G able in advance in month) inst aayyNIIjtltop.� o t $ L1� f 4 1 , a .$4,1 7.08 $ $ 09 n 17 - 4 670.2 p a y able n Y yt7C�R9FA�X7(SQ7h � c Lif r�- 7TITSY 1. on the first day of each and every month' R R I p(Fadureon beha ofi fTenant ma It , eren paym is will result in Landlord's right to exercise legal remedies and shall subject Tenant to a Fifty Dollar ($50.00) per month Late Charge. If any legal action is begun Tenant is responsible for legal fees and a Three Hundred Dollar ($300.00) Management Charge. * Annual: $40,260.40 - year 1; $50,245.00 - year 2; $52,177.50 - year 3; $54,110.00 - year 4; $56,042.50 - year 5. 6. OPERATING EXPENSES AND UTILITIES: a. In addition to base rent payable in Paragraph 5 hereof, Tenant or Landlord pays his share of operating expenses and utilities as follows: Landlord Heat and Air Conditioning Tenant Electricity and Lighting as metered including exterior and common areas Landlord water Landlord Sewer ant dTo`rd_— Landscape Replacement Landlord Lawn Care Maintenance Landlord Snow Removal Landlord Paving and Parking Lot Repair Landlord Exterior Building Maintenance Landlord - Interior Common Area Maintenance Landlord Cost of Contractors to implement said services Landlord Real Estate Taxes Landlord Insurance (Fire and Liability) Landlord Property Management Landlord Any other expense deemed necessary to operate said building in a first -class manner. b. Tenantwill pay his pro rata share of expenses on amonthly basisalong withthemonthly rental payment. Said amount will bedetermined byestimatingan annual budget for said expenses. If actual expenses exceed the budget expense amount, Tenant will pay Landlord the difference within 15 days of receipt of such notification. If actual expenses are less than budgeted expenses, Landlord will notify the Tenant of that and will credit the Tenant's budgeted expenses for the following year. At the request of Tenant, these charges shall be verified by Landlord's Controller, and such verified figures shall be binding upon the parties. The proration ratio, which will also apply to any future tenants in said building, is to be determined by the ratio of the square feet of said leased space to total amount of leasable square feet in said building. c. Forthe purpose of calculating Tenant's proportionate share for a fractional calendar year, each day of Tenant's occupancyshall beregardedas 1 /365th ofafull year's share, and Tenant shall be considered as in occupancy during the full period of the term of this lease falling within said fractional year. d. Service Interruption: Landlord shall not be liable for damages for failure of heat, hot or cold water, air conditioning, sewer service, electric current, gas, or any other service by reason of breakdown of plant, equipment or apparatus, shutdown of any thereof for necessary repairs or alterations, unavailability of fuel, water of any other substance or utility, war, civil disturbance, strike, lockout, fire, flood, casualty, governmental regulations, or other conditions beyond Landlord's control; provided that Landlord shall exert all reasonable effort to restore such services promptly, if within Landlord's control. - 7. REPAIRS — ALTERATIONS: a. Landlord shall keep the foundations, exterior walls and the roof of the Building in which the Premises are located in good repair, except that Landlord shall not be required to make any repairs which become necessary by reason of any act, omission or negligence of Tenant, its agents, representative, contractors, employees, customers and invitees. b. Except as provided in Paragraph a. ofthis Article, Tenantshall keepthe Premisesand all heating, air conditioning, plumbingand electrical facilitiesand fixturestherem in good condition and throughout the Term hereof. Tenant shall permit no waste to the leased Premises. If tenant does not commence repairs within ten (10) days after written demand, or adequately complete such repairs within a reasonable time thereafter, Landlord may, in addition to any other remedy, make the repairs without liability for any loss that may occur to Tenant's business, and if Landlord makes such repairs, Tenant shall pay as additional rent the cost thereof with interest at the legal rate from the date of payment by Landlord until paid by Tenant. However, there shall be no obligation on the part of Tenant to comply with any laws which may require structural alterations, or additions, unless made necessary by any act, work, use or omission by Tenant, and Tenant shall not, during any one 12 month period, make any alterations to the Premises costing an aggregate in excess of three (3) months' fixed rent without first procuring the Landlord's written consent. c. Tenantshall make no structural additions or alterationsto the Building or Premises; nor install any equipmentwhich defaces the Building interior or exterior, withoutthe written consent of the Landlord. No machinery or equipment shall be bolted or otherwise physically attached to the floors or walls of the Premises without the written consent of Landlord, and Tenant shall pay for any repairs necessary as a result of removal of any such machinery or equipment. 8. SIGNS: The Tenant may noterect any exterior orinterior window or dooradvertising media orwindow or door lettering or placecards withoutthe written consentof Landlord. Tenant shall not install any exterior decorations, without the consent of the Landlord. If Tenant shall install any sign or lettering in or around the Premises, Tenant must restore the Premises to their original condition at the termination of the Lease. 9. LANDLORD'S ACCESS: Landlord may enterthe leased Premises atall reasonable hoursforthe purpose of inspecting thesame orof making repairs, additions oralterations thereto or to the Building, or for the purpose of exhibiting the same to prospective tenants, purchasers or others. 10. INDEMNITY AND NON - LIABILITY: a. Tenant agrees to indemnity Landlord against all claims, demands and expenses, including reasonable attorney's fees, arising from the conduct of the business . conducted by Tenant or from any default of Tenant in the performance of any covenant of this Lease, or from any act of Tenant, its agents, contractors, servants, employees, sub - lessees, concessionaires or licensees, in or about the Premises, the sidewalks adjoining the same, the loading areas, and the common areas. b. All property kept in the Premises shall be so kept at the sole risk of Tenant. Tenant will discharge any lien against the Premises provided that Tenant may contest such lien, upon furnishing to Landlord indemnification for the discharge thereof, as Landlord may reasonably require. c. Landlord shall not be liable to Tenant forany damage occasion by plumbing, electrical, gas, water, steam or other utility pipes, systems and facilities, or by the bursting, stopping, leaking or running any tank, washstand, closet or waste or other pipes in or about the premises or the Building, unless directly resulting from facilities controlled and maintained by Landlord and from Landlord's actor neglect after not ice; nor for any damage arising from any acts or neglect of co- tenants or other occupants of the building or of adjacent property, or the public. 11. TENANT'S LIABILITY INSURANCE: Tenants shall maintain policies of insurance, at its expense, insuring Landlord and Tenantfrom all claimsfor injury to or death ofany one person in an amount of not less than $250,000 and for injury to or death of more than one person in any one accident to the limit of $500,000 and for damage to property in an amount of not less than $100,000 made on behalf of any person related to the operation of Tenant's business in the Premises. Said Certificates of Insurance shall be deposited with Landlord at the commencement of the Term and renewals thereof not less than thirty (30) days prior to the expiration of such coverage, and shall not contain, in addition, an undertaking by the insurer to give Landlord not less than ten (10) days' written notice of any cancellation or change in scope or amount of coverage of such policy. If Tenant fails to comply with such requirement, Landlord may obtain such insurance, and Tenant shall pay the Landlord the premium cost thereof as additional rent. 12. ASSIGN - SUBLET: a. Tenant shall not assign or in any manner transfer this Lease or any interest therein, nor sublet the Premises or any part thereof, not permit occupancy by anyone with, through, or under it, without the previous written consent of Landlord. b. Neither this Lease nor any estate thereby created shall pass to any trustee or receiver in bankruptcy, or any assignee for the benefit of creditors, or by operation of law. ' 13. SURRENDER OF POSSESSION: a. At the expiration of the tenancy created hereunder, Tenant shall surrender the Premises in good condition and repair, reasonable wear and tear and loss by fire or other unavoidable casualties excepted. All partitions, wallcoverings, ceilings, sinks, plumbing, floorcovering, and other improvements shall become the property of Landlord at the moment of completion of installation. Tenant shall retain ownership of all removable trade fixtures and machinery which shall be removed from the Premises by Tenant at the end of the Term. b. If the Tenant remains in possession of the Premises after the expiration of the tenancy without the execution of a new lease, it shall be occupying the Premises as a tenant from month to month, at twice the fixed rent, subject to all other conditions of this Lease insofar as the same are applicable to a month -to -month tenancy. c. Prior to the expiration of the tenancy, Tenant shall remove all trade fixtures, machinery and equipment ("Tenant's Property ") placed in the Premises by Tenant, and repair any damage occasioned by such removals at Tenant's expense; and in default thereof, Landlord may effect such removals and repairs, and Tenant shall'pay Landlord the cost thereof, with interest at the legal rate from the date of payment by Landlord, Tenant shall be liable for any loss or damage sustained by Landlord or succeeding tenant resulting from Tenant's failure to surrender possession after such notice. Upon failure of Tenant to remove such Tenant's Property, all remaining Tenant's Property shall, at Landlord's election, be deemed abandoned by Tenant. Q 14. DAMAGE BY FIRE OR OTHER CASUALTY - FIRE INSURANCE:. a. If the Premises are partially or totally destroyed and are partially or totally untenantable, it shall be repaired as speedily as possible at the expense of Landlord, unless Landlord elects not to rebuild, as provided below, and the rent shall be abated until so repaired. b. If the Premises are so damaged as to render more than 50.0%of the Premises untenantable, Landlord may, at its election, to be exercised by notice given to Tenant not more than 75 days after the occurrence ofthe damage, terminate this Lease; but if Landlord does not elect Landlord shall, as promptly as may be reasonable, restore any such damage suffered in the Premises; but landlord's obligation shall be limited to the basic building and exterior work as covered by "Description of Landlord's Work" in the Work Letter attached hereto as Exhibit "B ". c. If such damage occurs and this Lease is not so terminated by the Landlord, this Lease shall remain in force. Landlord shall have no interest in the proceeds of any insurance carried by Tenant on Tenant's interest in this Lease, and Tenant shall have no interest in the proceeds of any insurance carried by Landlord. d. Landlord shall maintain in effect with a responsible insurance company policies of insurance covering the Premises providing protection (excluding excavation, footings and foundations) against all casualties included under standard insurance industry practices within the classification of "Fire and Extended Coverage ", each of such casualties being hereinafter referred to as an "Insured casualty ". e. Tenant shall maintain in effect with a responsible insurance company insurance covering Tenant's trade fixture, furniture, furnishings, and equipment providing protection to the extent of not less than 80.0% of the replacement value of the same against the casualties specified in Paragraph d of this Article. I. Landlord and Tenant hereby grant to each other on behalf of any insurer providing fire and extended coverage to either of them covering the Premises, improvements thereon, or contents thereof, a waiver of any right of subrogation any such insurer of one parry may acquire against the other by virtue of payment of any loss under such insurance, such waiver to be effective so long as each is empowered to grant such waiver under the terms of its insurance policy or policies involved without payment of additional premiums. Such waiver shall stand mutually terminated as of the date either Landlord or Tenant ceases to be so empowered. Neither party shall have any interest in the proceeds of insurance by the other part g. Without Landlord's consent, Tenant shall not do anything in or about the Premises which will in any way tend to increase insurance rates or invalidateany policyon the Premises or the building. If Landlord shall consent to such use, Tenant agrees to pay as additional rental any increase in premiums for insurance against loss by fire or extended coverage risks resulting from the business carried on in the Premises by Tenant 15. RIGHT TO MORTGAGE: The Landlord has encumbered, and may in the future encumber, the Premises by mortgages,and each ofanysuch underlying liens will be liens on the Premises superior to or inferior to the rights of Tenant. The Tenant will be required to subordinate to said mortgages. Immediately on request, Tenant will execute and deliver any certificates of superiority or subordination and other documents desirable to effect the purposes of this Paragraph. In the event Tenant fails to comply with the foregoing requirements within five business days following Landlord's request, this shall constitute Tenant's appointment of Landlord as its attorney -in -fact to execute any certificates of superiority or subordination and other documents desirable to effect the purpose of this Paragraph. 16. EMINENT DOMAIN: If any part of the Premises is taken by public authority under the power of eminent domain, then the term of this Lease shall cease on the part so taken from the date the possession of that part is required for public purpose, and the rent shall be paid up to that day. All damages awarded for such taking shall belong to Landlord for dimunition in value to this leasehold or to the fee ofthe Premises; provided, however, that landlord shall not be entitled to any portion of a separate award made to Tenant for loss of business, depreciation to and cost of removal of stock and fixtures. 17. REMEDIES UPON DEFAULT: a. In the event that a receiver shall be appointed to take over the business of Tenant, or in the event that Tenant shall make a general assignment for the benefit of creditors, or the Tenant shall take or suffer any action under any insolvency or bankruptcy act, the same shall constitute a breach of this Lease by Tenant. b. In the event of any breach of this Lease by Tenant, Landlord, besides other rights and remedies which it may have, shall have the immediate right of re -entry and may remove all persons and property from the Premises. Such property may be moved and stored in a public warehouse or elsewhere at the cost of, and for the account of Tenant. Should Landlord elect to re -enter or should it take possession pursuant to legal proceedings or any notice provided by law, Landlord may either terminate this Lease or may from time to time, without terminating this Lease, relet said Premises, or any part thereof, for such term or terms (which may before term extending beyond the term of this Lease), and at such rental and upon such other terms and conditions as Landlord, in its sole discretion, may deem advisable, with the right to alter or repair the Premises upon such reletting. In such event, Tenant shall be immediately liable to pay to Landlord, in addition to any other amounts due hereunder: 1. The cost and expense of such reletting and such alterations or repairs, and any amount by which the rent reserved herein for the period of such reletting, but not beyond the term hereof, exceeds the amount agreed to be paid as rent for such period; or 2. At the option of Landlord, rents received by Landlord from such reletting shall be applied first to the repayment of indebtedness other than rent due hereunder; second, to costs and expenses of reletting and alterations or repairs, and third, to the payment of rent due and unpaid hereunder, and the residue, if any, shall be held by Landlord and applied in payment of future rent as the same may become due and payable. Tenant shall, in such event, pay any deficiency between the amount due from Tenant to Landlord and the amount credited. No such re -entry or taking possession by Landlord shall be construed as an election to terminate this Lease unless written notice of such intention is given, or unless termination be decreed by a court of competent jurisdiction notwithstanding any such reletting without termination. Landlord may at any time thereafter elect to terminate this Lease on account of such previous breach. Should Landlord at any time terminate this Lease for any breach, in addition to any other remedy it may have, Landlord may recover from Tenant all damages incurred by reason of such breach, including the cost of recovering the Premises. and including the worth at the time of such termination ofthe excess, if any, of the amount of rent and charges equivalent to the rent reserved for the remainder of the term hereof, over the then reasonable value of the Premises for the remainder of the Term, all of which amounts shall be immediately due and payable from Tenant. 3. In the event of any breach by Tenant, Landlord may, without notice, cure such breach at the expense of Tenant. If Landlord, by reason of such breach, elects to pay any expense, including reasonable attorney's fees, in instituting proceedings to enforce Landlord's rights, the sums paid by Landlord, with interest at the legal rate from date of payment, shall be deemed additional rent hereunder. 18. GENERAL: a. Whenever, under this Lease, provision is made for Tenant securing the consent of the Landlord, such consent shall be in writing, and shall not be unreasonably withheld and the assignment of this Lease or subletting of the Premises shall remain unqualified. b. The rights and remedies ofthe parties are notexclusive, but are cumulative and are in addition to every other remedyat law. No delayor omission ofthe right to exercise any right by either party shall impair any such right, or shall be a waiver of any default. Any waivers of a covenant by either party shall not be waiver of a subsequent breach ofthe same covenant. The consent by either party to any act by the other parry of a nature requiring consent shall not waive or consent to any subsequent similar act. c. Upon requestof Landlord, Tenantagrees to execute a statementor statements in writing certifying thatthis Lease isvalid and inforce(or inhere have been modifications, that the same is in full force and effect as modified, and stating the modifications), and the dates to which rent and other charges have been paid. d. The headings of the several articles and sections are for convenience only, and do not limitor construe the contents of such articles and sections. All negotiations and understandings between the parties are incorporated herein, and may be modified or altered only by agreement in writing between the parties. e. Whenever a period of time is provided for Landlord to perform, it shall not be responsible for, and there shall be excluded from the computation of such period of time, any _ delays due to strikes, riots, acts of God, shortages of labor or materials, national emergency, acts of a public enemy, governmental restrictions, laws orregulations, or any othercause or causes, whether similaror dissimilar to those enumerated, beyond its reasonable control. This section shall not excuse Tenant from the prompt payment of rent, additional rent, or any other payments required by the terms of this Lease. I. Theterms, conditions, covenantsand agreements herein contained shall inure to the benefit of all shall bind the parties hereto, their respective personal representatives, heirs, successors and assigns. g. Tenantagrees to return the Premises peaceably and promptly upon expiration ofthe Term hereof, or atany previous termination in as good condition as the same is now in or may hereafter be put in, ordinary wear and tear excepted. In the event suit is brought for the recovery ofthe Premises, or any sum due hereunder, or because of any act which may arise out of possession of the Premises, Landlord shall be entitled to recovery of all costs incurred therein, including reasonable attorneys' fees. 19. NOTICES: Whenever, under this Lease, a provision is made for notice, such notice shall be in writing, and it shall be deemed sufficient notice and service if such notice is sent by registered mail or certified mail, postage prepaid, to the last Post Office address of Tenant furnished to Landlord for such purpose, or to the Premises; and to Landlord, sent by registered mail, postage prepaid, to Landlord at the address furnished for such purpose, or the place then fixed for the payment of rent. If Landlord or Tenant is more than one person, notice need be sent to but one Tenant or Landlord, as the case may be. Tenant's initial address for notice is: Bell Mortgage Co. 3915 Highway 7 Minneapolis, MN 55410 Landlord's initial address for notice is: Landlord's agent initial address for notice is Brooklyn Center EDA 6301 Shingle Creek Parkway Brooklyn Center, MN 55430 20. DEPOSIT: Tenant, concurrently with the execution of this lease, has deposited with Landlord the sum of Four thousand five hundred and no/ 100-------------------------------------- - - - - -- 4 500.00 Dollars ($ ), the receipt of which is hereby acknowledged by Landlord, which sum shall be retained by Landlord as security. 21. WAIVER OF SUBROGATION: Landlord and Tenant shall each, forthwith after the execution of this Lease, procure from and cause each of the insurers under all pol icies of insurance, now or hereafter during the term hereof existing and purchased by either or both insuring or covering the demised Premises or any portion thereof and /or Tenant's business or operations in the demised Premises, a waiver of all rights of subrogation which the insurer under said policies might otherwise, if at all, have as against the other hereto, said waiver to be in writing and for the express benefit of the other; the foregoing including, the following being by way of specification and not by way of limitation, all policies of fire. theft, public liability and workers' compensation purchased by Tenant and all policies of fire and public liability insurance, if any, purchased by Landlord. 22. RULES AND REGULATIONS: a. Disturbance. No noise, or conduct shall be permitted at any time which will disturb or annoy other Tenants. b. Parking. The use of parking shall be subject to the reasonable Rules and Regulations as the Owner/ Landlord may promulgate uniformly for all tenants. Tenant agrees that it will not use or permit the use by its employees of the parking area for the overnight storage of automobiles or other vehicles, which would interfere with maintenance, snow removal, traffic flow or emergency vehicles. c. Fixture Movement. Tenantagrees thatany and all furniture, fixturesand goods will be moved by the Tenant whenever such moving is necessaryfor purposes ofbuilding repair and /or maintenance by Owner /Landlord. d. Locks. No additional locks will be placed on any ofthe doors in the building without Owner/ Landlord's prior written approval, and unless Owner /Landlord receivesan access key to such locks. e. These rules may be added to or amended from time -to -time by the Owner /Landlord for the benefit of all tenants, and such amendments will become effective immediately upon notification. IN WITNESS WHEREOF: Landlord has caused its name to be subscribed by, and Tenant has hereunder subscribed its name the day and year first above written. LANDLORD: Brooklyn Center EDA By Its President TENANT: Bell Mortgage Co. By Its CEO ADDENDUM ONE This is Addendum One to the Lease by Bell Mortgage Co. of Suite 100, 6235 Earle Brown Drive, Brooklyn Center, Minnesota. SPECIAL CONDITIONS: 1. Tenant may place a satellite dish no larger than 24" by 24" on the Heritage Center water tower at a mutually agreed upon location. The satellite dish must be painted red to match the color of the water tower. 2. Tenant may renew this Lease for an additional five year term provided Tenant is not in default of any of the provisions of this Lease and provided Tenant notifies Landlord in writing at least ninety (90) days prior to the expiration of this Lease of its exercise of such option to renew. The terms of the Lease upon renewal shall be unchanged except as provided in this paragraph. Base rent for the first year of such five year renewal shall be determined by adjusting the rate of $13.50 per square foot by changes in the Consumer Price Index (C.P.I.) for the Minneapolis /St. Paul area from the base period April 1, 1991 to April 1, 1996 provided that the total adjustment does not exceed an increase or decrease of thirty percent (30 %). Base rent for each of the succeeding years shall be determined by adjusting the preceding years base rent for the change in CPI for such preceding year. For example the base rent from April 1, 1997 to March 31, 1993 shall be determined by adjusting the base rent charged from April 1, 1996 through March 31, 1997 for the change in CPI from April 1, 1996 through April 1, 1997. 3. Landlord agrees not to lease space in the Heritage Center to another mortgage company during the term of this Lease and any renewal hereof provided for herein, without the prior written consent of Tenant, providing Tenant is not in default of any of the terms or conditions of this Lease. LANDLORD: TENANT: By By Its Its Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION DIRECTING STAFF TO WORK WITH LOCAL STATE LEGISLATORS TO CONSIDER THE BROOKLYN CENTER ECONOMIC DEVELOPMENT AUTHORITY IN THE DEVELOPMENT OF LEGISLATIVE INITIATIVES TO MEET THE NEIGHBORHOOD PRESERVATION AND HOUSING NEEDS IN THE CITY OF BROOKLYN CENTER WHEREAS, the Brooklyn Center Economic Development Authority is the primary municipal body in the City of Brooklyn Center responsible for developing and authorizing neighborhood preservation and housing programs in the City of Brooklyn Center; and WHEREAS, it is important that the Brooklyn Center Economic Development Authority be considered in any state legislative initiatives regarding neighborhood preservation and housing. NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority for the City of Brooklyn Center to direct staff to work with state legislators representing the City of Brooklyn Center to address the neighborhood preservation and housing needs of the City of Brooklyn Center and, in particular, how these neighborhood preservation and housing needs can be addressed by legislative initiatives involving the Economic Development Authority for the City of Brooklyn Center. 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. Commissioner introduced the following resolution and moved its adoption: EDA RESOLUTION NO. RESOLUTION APPROVING A MODIFIED TAX INCREMENT FINANCING PLAN FOR TAX INCREMENT FINANCING DISTRICT NO. 02 BE IT RESOLVED by the Economic Development Authority of the City of Brooklyn Center, Minnesota, as follows: Section 1. Recitals 1.01. The Housing and Redevelopment Authority in and for the City of Brooklyn Center (HRA), previously adopted a project plan (Project Plan) for a project area (Project Area) and a tax increment financing plan (TIF Plan) for a tax increment financing district (TIF District) generally known as the Earle Brown Farm. 1.02. The City Council of the City of Brooklyn Center (City) held a public hearing on the Project Plan and TIF Plan (collectively, Plans) and approved the Plans. 1.03. Responsibility for the Project Area and TIF District has been shifted from the HRA to the Economic Development Authority of Brooklyn Center (EDA). 1.04. Changes in the budget for the public redevelopment activities undertaken in the Project Area have occurred since the time of the adoption of the Plans and have necessitated modification of the TIF Plan. 1.05. The EDA has caused to be prepared a modified TIF Plan which is contained in a document entitled 'Earle Brown Farm Redevelopment Plan and Modified Earle Brown Farm Tax Increment Financing Plan" dated February 1, 1991, and on file with the EDA. Section 2. EDA Approval 2.01. The EDA find that the objectives of the EDA in encouraging development and redevelopment within the Project Area and TIF District will be advanced by adoption of the modified TIF Plan. 2.02. The modified TIF Plan is hereby approved and adopted by the EDA. t RESOLUTION NO. r Section 3. Further Proceedings 3.01. The following actions of the Executive Director of the EDA are hereby ratified and confirmed: transmission of the modified TIF Plan to the school board of Independent School District No. 286 and the Board of Commissioners of Hennepin County for review and comment and notifying said public bodies on or before October 15, 1989 of the public hearing which was held on the modified TIF Plan on November 27, 1989. 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.