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HomeMy WebLinkAboutVIII-16 Authorize Signature - Lease Agreement Amendment #2 - Veterans Athletic ComplexCity Council Memorandum To:Mayor Fasbender & City Councilmembers From:Chris Jenkins, Parks & Recreation Director Date:October 20,2025 Item:Lease Amendment #2 –Veterans Athletic Complex Council Action Requested:Approve Lease Amendment #2 for Lease #I- 6390 with the State of Minnesota. Background Information:The City of Hastings entered into a lease for land with the State of Minnesota on November 13, 1981 to lease 48 acres of land and develop Veterans Athletic Complex. This amendment was requested by the City in order to apply City Ordinance uniformly across all park lands. Specifically, a recent update to City Ordinance 94 updated park operational hours and alcohol and cannabis consumption regulations which were in conflict with the current lease. The attached amendment updates lease language to be consistent with City of Hastings Ordinance,has been reviewed by staff and legal council,and staff recommend approval. Financial Impact:N/A Advisory Commission Discussion:N/A Council Committee Discussion:N/A Attachments: ▪Lease No. I-6390 Amendment No. 2 VIII-16 STATE OF MINNESOTA AMENDMENT OF LEASE Amendment No. 2 to Lease No. I-6390 THIS AMENDMENT No. 2 to Lease No. I-6390 is made by and between the State of Minnesota, Department of Administration, hereinafter referred to as Landlord (previously referred to as LESSOR), acting for the benefit of the Minnesota Department of Veterans Affairs, and the City of Hastings, hereinafter referred to as Tenant (previously referred to as LESSEE). WHEREAS, Landlord and Tenant entered into Lease No. I-6390, dated November 13, 1981, providing for the rental of a tract of land approximately forty eight (48) acres located in the part of the South half of the Northeast quarter and the North half of the Southeast quarter (South half of the NE ¼ and in the North ½ of the SE ¼) of Section 34, Township 115 North, Range 17 West, in the City of Hastings, County of Dakota, Minnesota (“Leased Premises”); WHEREAS, the parties to this Lease deem certain additional terms and conditions necessary for the effective continuation of said Lease; NOW THEREFORE, Landlord and Tenant agree to substitution and/or addition of the following terms and conditions which shall become a part of this Lease No. I-6390 effective as of the date set forth herein. 1.HOURS OF OPERATION 1.1 Deletion Section 1 of the Amendment No. 1 to the Lease is hereby deleted in its entirety and is replaced with the following Section 1.2. 1.2 Hours of Operation/Use Landlord and Tenant hereby agree that recreational activities shall occur between 6:00 a.m. to 11:00 p.m. on any day of the Lease Term. 2.INTOXICATING AND NONINTOXICATING LIQUOR AND CANNABIS BEVERAGES 2.1 Deletion Section 15 of the Lease is hereby deleted and of no further force of effect and is replaced with Section 3 below. 3.PARK RULES Tenant shall comply with the City of Hastings policy(ies), rules, regulations and ordinances pertaining to use of park property in the Leased Premises. VIII-16 I-6390 Amend 2-EXE (002).docx Page 2 of 5 4.LIABILITY INSURANCE 4.1 Deletion Section 9 of the Lease is hereby deleted in its entirety and of no further force or effect and is replaced with the following Section 4.2. 4.2 Liability Insurance a.Tenant agrees to acquire and maintain, at its sole expense, during the term of this Lease and any extension thereof, commercial general liability insurance (or comparable coverage under a program of self-insurance), as follows: (i)Minimum Liability Limits: 1.$500,000.00 per claimant. 2.$1,500,000.00 per occurrence. (ii)Umbrella of Excess Liability Policy An umbrella or excess liability insurance policy may be used to supplement the Tenant’s policy limits to satisfy the full policy limits required by this Lease. (iii)Required Coverage: 1.Bodily injury. 2.Property damage. 3.Personal injury. 4.Blanket contractual. 5.Fire legal. 6.Automobile. b.Other Commercial General Liability Insurance Requirements: (i)Name the following as additional insured: State of Minnesota c/o Department of Administration -Real Estate and Construction Services 50 Sherburne Avenue, Room #309 St. Paul, MN 55155 c.If Tenant receives a cancellation notice from an insurance carrier affording VIII-16 I-6390 Amend 2-EXE (002).docx Page 3 of 5 coverage herein, Tenant agrees to notify the Landlord within five (5) business days with a copy of the cancellation notice, unless Tenant’s policy(ies) contain a provision that coverage afforded under the policy(ies) will not be cancelled without at least thirty (30) days advance written notice to the Landlord. d.Tenant shall provide Landlord with a certificate of insurance or a statement of self-insurance that proves the required coverage is in force and that includes a reference to the address of the Leased Premises. e.In the event that Minn. Stat. § 3.736 is amended for the purpose of changing the amount of state’s total liability for the required coverage above, Landlord and Tenant hereby agree that Tenant, upon written notification by Landlord, shall obtain the required liability coverage within fifteen (15)days after said notification to conform to the new requirements. 5.NOTICES 5.1 Deletion Section 23 of the Lease is hereby deleted and of no further force or effect and is replaced with the following Sections 5.2 and 5.3 below. 5.2 Notices All notices or communications between Landlord and Tenant shall be in writing and deemed to have been given upon the occurrence of one of the following methods of delivery to the address noted in Section 5.3 below. a.when personally delivered to the addressee, or b.on the second business day after sender has deposited the registered or certified mailing with the US Postal Service, or c.when delivered via electronic mail from Tenant to Landlord to: Chris Jenkins (cjenkins@hastingsmn.gov)(provided such delivery or attempted delivery is confirmed), or d.one (1)business day after deposited with an overnight courier service. 5.3 Mailing Addresses: Landlord: City of Hastings 920 West 10th Street Hastings, MN 55033 Attn: Chris Jenkins cjenkins@hastingsmn.gov Tenant: Department of Administration Real Estate and Construction Services 50 Sherburne Ave, Room 309 St Paul,MN 55155 Attn: Lease Supervisor VIII-16 I-6390 Amend 2-EXE (002).docx Page 4 of 5 6.EXECUTION IN COUNTERPARTS; ELECTRONIC SIGNATURES This Amendment may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which counterparts of this Amendment taken together shall constitute but one and the same Amendment. The parties further agree that this Amendment may be executed by electronic signature and that said electronic signature shall be binding upon the party providing such signature as if it were the party’s original signature. Delivery of an executed counterpart of this Amendment by facsimile or email or a PDF file shall be equally as effective as delivery of an original executed counterpart of this Amendment. 7.Except as modified by the provisions of this Amendment, said Lease is ratified and confirmed as originally written. All capitalized terms used but not defined herein shall have the meanings assigned to them as set forth in the Lease, unless otherwise stated. NO ATTACHMENTS VIII-16 I-6390 Amend 2-EXE (002).docx Page 5 of 5 IN WITNESS WHEREOF, the parties have set their hands on the date(s) indicated below intending to be bound thereby. TENANT: CITY OF HASTINGS Lessee certifies that the appropriate person(s) have executed this Amendment to the Lease on behalf of Lessee as required by applicable articles, bylaws, resolutions or ordinances. By Title Date By Title Date LANDLORD: STATE OF MINNESOTA DEPARTMENT OF ADMINISTRATION COMMISSIONER By Real Estate and Construction Services Date APPROVED: STATE OF MINNESOTA DEPARTMENT OF VETERANS AFFAIRS By Title Date VIII-16