HomeMy WebLinkAbout20100816 - VI-04
To: Mayor Hicks & City Councilmembers
From: Melanie Mesko Lee, Assistant City Administrator
Re: DARTS Sublease
Date: August 10, 2010
Council Action Requested
:
Approve the sublease with DARTS to use two parking stalls for storage of DARTS/TransitLink
vehicles.
Background Information
:
DARTS is the Dakota County provider for the Metropolitan Council TransitLink dial-a-ride
program. Their main offices and garage space are located in West St. Paul. Earlier this year, at
the time the City’s dial-a-ride program transitioned from TRAC to the countywide TransitLink
program, DARTS staff approached the City about temporarily using outdoor space at the Public
Works facility to park two TransitLink vehicles that would be based in Hastings. At that time,
the intent from DARTS was to seek out a long term indoor storage options for those vehicles.
After some review, DARTS staff recently approached City staff and inquired about the
opportunity for City indoor storage space available for lease. The City has indoor, cold storage
available at 415 East Fourth Street (former UBC facility), which fits the needs sought by DARTS.
DARTS reviewed the facility and is interested in leasing two parking stall spaces; this is
approximately 550 square feet. As proposed, the lease amount would be $300 per month.
City Attorney Fluegel has drafted a sublease for this agreement (attached) and staff recommends
approval of the agreement as proposed, with the following conditions:
That the agreement be approved by both HEDRA and DARTS;
That DARTS is charged $150/month for the months of May, June, July and August, 2010 for
the temporary outdoor space used for storage
If you have any questions, please let me know. Thank you.
SUBLEASE AGREEMENT
This sublease agreement was entered into on August ____, 2010, between the City of
th
Hastings, a Minnesota Municipal Corporation, of 101 East 4 Street, Hastings, MN 55033,
referred to as "Lessor," and DARTS, a Minnesota Non-Profit Corporation, with its principal
place of business at 1645 Marthaler Drive, West St. Paul, MN 55118, referred to as "Lessee."
RECITALS
WHEREAS
, Lessor currently leases from the Hastings Economic Development and
Redevelopment Authority, a public body corporate and politic under the laws of the State of
Minnesota (hereinafter “Hastings EDRA”), certain real property located at 412 and 415
Fourth Street East, Hastings, (hereinafter “Total Landlord Premises”) pursuant to a written
Lease dated November 7, 2006 and Assignment of Lease dated July 20, 2009, copies of which
are attached hereto as Exhibit A (hereinafter “the Primary Lease”).
WHEREAS
, the terms of the Primary Lease provide that Lessor is leasing the Total
Landlord Premises on an interim basis; Hastings EDRA has the right to terminate the Primary
Lease at anytime by giving ninety (90) days written notice to Lessor; and Hastings EDRA
must consent to any sublease by the Lessor.
WHEREAS,
Lessor desires to lease a portion of the Total Landlord Premises to
Lessee and Lessee desires to sublease that portion of the property from Lessor, subject to
certain terms, restrictions and requirements including all requirements and restrictions
contained in the Primary Lease.
NOW, THEREFORE,
Lessor and Lessee do hereby agree as follows:
Demised Premises
1.. Lessor, in consideration of the covenants herein contained, to be
kept and performed by the Lessee, does hereby lease to the Lessee and the Lessee does hereby
lease from Lessor that certain portion of the property located at 415 Fourth Street East,
Hastings, MN 55033, including the non-exclusive use of approximately 550 square feet (two –
11’ x 25’ stalls) of garage parking stalls equaling two bus parking stalls, as depicted on the
sketched attached hereto as Exhibit B (hereinafter “Premises”).
Term and Commencement.
2.
Term.
2.1 The term of this Lease shall be from the Commencement Date until
April 30, 2015, unless earlier terminated. Lessor shall have the right to terminate this Lease at
any time during the term hereof by giving ninety (90) days written notice to Lessee upon
which Lessee shall vacate the premises and return possession of the premises to Lessor.
Lessee shall have the right to terminate the Lease at anytime during the term hereof by giving
ninety (90) days written notice to Lessor. The term can be extended by written agreement of
both Lessor and Lessee.
1
Commencement Date
2.2 . The Commencement Date shall be the date the last of
the parties sign this Lease.
ImprovementsAS IS
3.. The Premises is being leased in an “” condition and unless
otherwise authorized by Lessor in writing, Lessee shall not construct any improvements to the
premises.
Use of the Demised Premises
4.. It is agreed that the Premises shall be used by the
Lessee solely for the following purpose: storage of transit vehicles and equipment.
Rent; Taxes and Utilities
5.. Lessee shall be responsible for payment of rent and other
costs associated with the Premises as follows:
Rent
5.1 . During the term of this Lease Lessee shall pay rent to Lessor in the
th
amount of $300.00 per month payable on the 10 day of each month.
Utilities and Assessments
5.2 . Lessor shall be responsible for the payment of all
utility charges applicable to the premises during the term of this Lease, provided, however,
that if Lessee is authorized in writing to install any telephone or internet services in the
premises, the costs of such services shall be billed directly to, and paid by Lessee. It is
currently anticipated Lessee shall not require any electrical utility use in the property but if for
any reason Lessee requires such use, and utility use is authorized by Lessor, Lessee shall not
cause any overload to the electrical utility service of the premises.
Maintenance
6.. Lessor shall have sole responsibility for the maintenance of all aspects
of the Premises, including, without limitation, the roof and structural portions, and will keep it
in reasonable condition, subject to reasonable wear and tear and damage by fire and the
elements excepted. Lessee will keep the premises in an orderly, clean and sanitary condition
as required by the laws and ordinances applicable thereto; and will not do or permit to be done
on the Premises anything in violation of the laws or ordinances applicable thereto. Lessor
shall be responsible for garbage removal costs.
Insurance.
7.
7.1 Lessee shall maintain comprehensive general liability insurance, naming
Lessor and Hastings EDRA as additional insured, with respect to accidents occurring on or
about the Premises or arising out of the use thereof in reasonable amounts, but not less than
$1,000,000.00 for injury or death to any person, $1,000,000.00 for injuries or deaths arising
out of any one accident, and $1,000,000.00 for property damage, with reasonable deductible
clauses, written by companies licensed to do business in the State of Minnesota and will
deliver to Lessor a certification of such insurance providing for fifteen (15) days written
notice to Lessor prior to cancellation thereof.
7.2 Lessor shall keep the Premises insured against loss by fire and extended
coverage perils in the amount of replacement coverage as determined by Lessor. The
insurance shall be written by companies licensed to do business in the State of Minnesota.
2
Lessee shall maintain casualty insurance for all personal property stored by Lessee within the
Premises.
Alterations and Liens
8. .
8.1 Lessee shall not be allowed to alter or remodel the Premises without the prior
written consent of Lessor, which consent may be withheld by Lessor for any reason.
8.2 In the event that a lien is placed against the Premises as a result of any
construction or alteration done by or at the request of Lessee, Lessee shall satisfy or remove
the same within ten (10) days of receipt of notice from Lessor. So long as the laws of this
State shall provide for the filing of a statutory bond to eliminate the attachment of mechanic’s
or materialmen’s liens to real estate, Lessee shall require that its contractor or itself shall take
such steps as are provided by law for the filing of said statutory bond to remove any such lien
in the event Lessee contests the validity of such lien. If the same is not removed within ten
(10) days from the date of written notice from Lessor, Lessor shall have the right at Lessor’s
option of paying the same or any portion thereof and the amounts so paid, including attorney’s
fees and expenses connected therewith, shall be deemed to be additional rent due from Lessee
to Lessor and shall be paid to Lessor immediately upon provision to Lessee of a bill for same.
Lessee shall indemnify and save harmless Lessor from and against all losses, claims,
damages, costs or expenses suffered by Lessor by reason of any repairs, installations or
improvements made by Lessee.
Damage.
9. If the Premises is damaged or destroyed by Lessee or any person under its
control, Lessee shall repair or replace the same to substantially the same condition as existed
immediately prior to such damage or destruction unless Lessor agrees that repair or
replacement is not necessary.
Default
10..
10.1 In the event the Lessee should (a) default in the payment of any of the rentals
within ten (10) days of notice that same is due hereunder or (b) default in the keeping or
performing of any other term or condition of this Lease and fail to remove such default within
thirty (30) days after receipt of notice in writing from the Lessor specifying the nature of such
default, then and in any such event the Lessor is hereby authorized to re-enter said Premises,
to eject the Lessee, and take full possession of said Premises and to terminate this Lease at it’s
option.
3
Condemnation.
11.
11.1 If the whole of the Premises shall be taken by any public authority under the
power of eminent domain, this Lease shall terminate when possession thereof shall be
required by the appropriating or condemning authority, or when legal title to the Premises
shall vest in the appropriating or condemning authority, whichever shall first occur.
Lessors Access to Premises.
12.Lessor has disclosed and Lessee acknowledges that the
Premises must be open for access by employees of Lessor and Lessee agrees to provide access
to all areas of the premises to Lessee’s employees.
Assigning or Subletting
13.. Lessee will not assign this Lease, and not sublet any part of
the Premises without the prior consent in writing of the Lessor.
Indemnity
14..
14.1 The Lessee agrees to indemnify, defend and hold Lessor and Hastings EDRA
and their partners, officers and employees harmless from and against any claim, loss or
expense arising out of injury, death or property loss or damage occurring in the Premises,
except to the extent caused by the negligent act or intentional misconduct of Lessor or
Hastings EDRA or their partners, officers, employees, or invitees.
14.2 The Lessor agrees to indemnify, defend and hold Lessee and its partners,
officers and employees harmless from and against any claim, loss or expense arising out of
injury, death or property loss or damage occurring as a result of Lessor’s or Hastings EDRA’s
acts or omissions, to the extent caused by the negligent act or intentional misconduct of
Lessor or Hastings EDRA or their partners, officers, employees, or invitees.
Mutual Release
15.. Lessor and Lessee hereby release one another and their respective
partners, officers and employees and property manager from any and all liability (to the other
or anyone claiming through or under them by way of subrogation or otherwise) for any loss or
damage covered by property insurance or coverable by a customary policy of insurance even
if such loss or damage shall have been caused by the fault or negligence of the other party, or
anyone for whom such party may be responsible.
Notices
16.. All notices, consents, demands and requests which may be or are required to
be given by either party to the other, shall be in writing, and shall be deemed given or served
when deposited in the United States mail by registered or certified mail, postage prepaid,
addressed as follows:
If to Lessor: City of Hastings
101 Fourth Street East
Hastings, MN 55033
4
If to Lessee: DARTS
1645 Marthaler Drive
West St. Paul, MN 55118
If to Hastings EDRA: Hastings Economic Development and
Redevelopment Authority
101 Fourth Street East
Hastings, MN 55033
Such addresses may be changed from time to time by either party by serving notices as above
provided.
Attorneys Fees
17. . In the event either party hereto institutes legal action or proceedings
arising out of or in any way connected with this Lease, the non-prevailing party shall
reimburse the prevailing party for all reasonable attorney fees and costs incurred in connection
herewith.
All Agreements Included
18. . This Lease embodies all the agreements between the
parties hereto respecting the premises hereby demised. All subsequent changes and
modifications to be valid shall be embodied within a written instrument duly executed by the
parties hereto.
Paragraph Headings.
19. The headings of the several paragraphs contained herein are
for convenience only and do not define, limit, or construe the contents, construction or
meaning of the provisions of this Lease.
Laws of Minnesota
20. . The laws of the State of Minnesota shall govern the validity,
performance and enforcement of this Lease.
Saving Clause
21. . The invalidity or unenforceability of any provision of this Lease shall
not affect or impair the validity of any other provision.
Successors and Assigns
22. . All of the terms, covenants, provisions and conditions of
this Lease shall be binding upon and inure to the benefit of the parties hereto, their respective
successors and assigns.
Consents.
23. Lessor and Lessee covenant and agree that whenever, pursuant to the terms
of this Lease, consent, satisfaction, determination or approval is required or permitted of
Lessor and Lessee, such consent, satisfaction, determination or approval shall not be
unreasonably determined, withheld or delayed.
Hazardous Materials.
24.
24.1 Lessee shall not use, store, manufacture, dispose of or discharge any pollutants,
contaminants, or harmful or hazardous substances in excess of the USDOT reportable
5
quantities for Dangerous Goods and Hazardous Materials from or on the Premises or
otherwise occupy or permit the Premises to be occupied or used in a manner which:
24.1.1 violates any law, regulation, rule or other governmental requirement;
24.1.2 impairs the health, safety or condition of any person or property; or
24.1.3 adversely affects the use, enjoyment or value of the Premises or the
surrounding property.
24.2 Lessee shall promptly notify Lessor of the breach, or the potential or threatened
breach, of any of the provisions of this paragraph. Lessor shall have the right of access to the
Premises to inspect, test and, in Lessor’s sole discretion, remedy any potential environmental
problem. Lessee shall indemnify and hold Lessor and its officers, shareholders, partners,
employees, and agents, harmless from any loss, claim, liability or expense (including, without
limitation, attorneys’ fees, court costs, consultant fees, expert fees, penalties, fines, removal,
clean-up, transportation, disposal, restoration expenses, diminution in value of the Premises,
damages for the loss or restriction on use of rentable or usable space or of any amenity of the
Premises, damages arising from any adverse impact on marketing of space) arising in
connection with Lessee’s failure to comply with the provisions of this paragraph.
24.3Lessee will indemnify, defend, save and hold harmless Lessor and Hastings
EDRA and their officers, directors, shareholders, employees, agents, partners, and their
respective heirs, successors and assigns (collectively “Indemnified Parties”) against and from,
and to reimburse the Indemnified Parties with respect to, any and all damages, claims,
liabilities, loss, costs and expenses (including, without limitation, all attorney’s fees and
expenses, court costs, administrative costs and costs of appeals), incurred by or asserted
against the Indemnified Parties by reason of or arising out of Lessee’s failure to comply with
the provisions of this paragraph.
IN WITNESS WHEREOF
the respective parties hereby have executed this Lease
Agreement on the day and year first above written.
LESSOR:
City of Hastings,
a Minnesota Municipal Corporation
By:
Paul J. Hicks, Mayor
(SEAL)
By:
Melanie Mesko Lee, Assistant
City Administrator/City Clerk
6
LESSEE:
DARTS, a Minnesota Non-Profit
Corporation
By: _
____________________________
It’s: ___________________________
STATE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this _____ day of August, 2010 by
Paul J. Hicks, Mayor of the City of Hastings, a Minnesota municipal corporation, and by
Melanie Mesko Lee, Assistant City Administrator/City Clerk of the City of Hastings, a
Minnesota municipal corporation, on behalf of said corporation.
______________________________
Notary Public
STATE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
The foregoing instrument was acknowledged before me this _____ day of August, 2010 by
_______________________________________, ___________________________________
for DARTS, a Minnesota Non-Profit Corporation, on behalf of the corporation.
______________________________
Notary Public
7
CONSENT TO SUBLEASE
The Hastings Economic Development and Redevelopment Authority hereby consents
to the City of Hastings subleasing a portion of the property at 415 East Fourth Street,
Hastings, Minnesota to DARTS, a Minnesota Non-Profit Corporation, pursuant to the Lease
attached hereto.
Hastings Economic Development and
Redevelopment Authority in and for the
City of Hastings, a Public Body Corporate
and Politic under the Laws of the State of
Minnesota
By:
Kurt Keena
It’s President
8
Exhibit B