1p2 Land Lease with US West I
iii.,.0 C ITYOF --
1 CHANHASSEN
690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317
1 (612) 937 -1900 • FAX (612) 937 -5739
MEMORA "I i• UM
1 TO: Don Ashworth, City Manager
1 FROM: Todd Gerhardt, Assistant City Manager 1 G.
DATE: June 10, 1993
1 SUBJ: Land Lease Agreement with U.S. West Corporation
1 Attached for the City Council's consideration is a land lease agreement with U.S. West
Corporation for the placement of a 16' x 19' building at the South Lotus Lake well house site
1 (see Attachment #1). The terms included in the lease are as follows:
1. 16' x 19' building = 360 sq. ft. x $20.00 = $7,200 annual rent ($600 monthly).
I 2. The rent shall be increased annually by an amount equal to the increase in the
Consumer Price Index, but not to exceed 5% per year.
I 3. The term of the lease shall be five ears. and the lessee shall have the right to
Y g
I extend the lease for four additional five -year terms.
4. Lessee shall not have the right to assign or sub -lease the building to anyone else.
1 5. The city will retain all capital improvements made to the property if the lessee
does not renew or walk away from the lease.
1 6. Gift of ten portable phones.
1 Recommendation
Staff would recommend approval of the proposed terms and conditions of the land lease
1 agreement between the City of Chanhassen and U.S. West Corporation as outlined above.
Attachments
I 1. Proposed Lease Agreement
2. Location map.
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1 t f PRINTED ON RECYCLED PAPER
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LEASE AGREEMENT
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BETWEEN
THE CITY OF CHANHASSEN COA
AND
1 U S WEST COMMUNICATIONS,
a Colorado Corporation
THIS LEASE, made this day of , 1993 by
and between the CITY OF CHANHASSEN, a Minnesota municipal corporation
(hereinafter called "Lessor ") and U 8 WEST COMMUNICATIONS, a Colorado
corporation (hereinafter called "Tenant ").
' W I T N E S S E T H;
In consideration of the covenants, conditions and promises
hereby mutually taken to be kept and performed by the parties, Lessor
' hereby demises and leases unto Tenant and Tenant hereby hires and
takes from Lessor the following premises (hereinafter "leased premis-
es") located in the city of Chanhassen, County of Carver, State of
1 Minnesota, described as follows:
That area indicated on Exhibit A attached hereto and made a
' part hereof, containing approximately 304 square feet, such
leased premises being located at Chanhassen Pump House No.
6 east of Chan View and West 77th Street and north of
Highway 101.
' TO HAVE AND TO HOLD the same for a period of five (5) years
commencing on July 1, 1993 and ending on the 30th day of June, 1998,
' with options to renew as provided by Paragraph 17 herein.
1. RENT. Tenant agrees to pay Lessor rent of Seven Thousand
Two Hundred and no /100 ($7,200.00) Dollars per year, payable in equal
monthly installments of Six Hundred and no /100 ($600.00) Dollars, in
advance, on the first day of each and every month throughout the term
of this Lease. The rent specified above shall remain fixed for the
' first year of the lease term. The lease rate will then be adjusted
every year starting with the second year of the lease term. The rate
will be adjusted accordingly by the increase in the Consumer Price
' Index "Minneapolis /St. Paul Region, All Items" published by the U. S.
Bureau of Labor Statistics from the date of commencement of the
initial lease term to the date of commencement of the first adjust-
, ment year, and so forth for each adjustment period. The minimum
adjustment, however, shall be a five (5 %) percent increase per year.
If the United States Department of Labor, Bureau of Labor Statistics,
ceases to publish the Consumer Price Index, the index that will most
' nearly accomplish the purpose and use intended by the parties hereto
with respect to the adjustment of rent shall be used in lieu of said
Consumer Price Index.
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2. USE. The leased premises shall be used by Tenant for
operating telephone equipment. Tenant shall not store any items of a
hazardous nature, including without limitation flammable or explosive
substances, nor shall Tenant use the leased premises for any purpose
which may cause the cancellation of any insurance policy covering the
building or which may increase the premium therefor, or which will
interfere with the general safety, comfort and convenience of Lessor,
occupants and other tenants of the building. Tenant shall be respon-
sible for obtaining all governmental licenses, permits and other
governmental requirements as may be necessary to the exercise of
Tenant's rights hereunder.
3. MAINTENANCE. Tenant shall maintain the leased premises in a
neat and clean condition at all times during the term hereof.
4. CQNSTRUCTION ANb_ACCE8S. Lessor will provide for twenty-
four (24) hour access by Tenant. Tenant, at Tenant's sole expense,
will construct the partitions, ceilings and doors necessary to
enclosed the leased premises. Plans and specifications will first be
submitted to Lessor for approval, which will not be unreasonably
withheld.
5. MECHANIC'ag LIENS. Tenant will not at any time permit any
mechanic's, laborer's or materialmen's liens to stand against the
leased premises for any labor or material furnished to Tenant or
claimed to have been furnished to Tenant or to Tenant's agents,
contractors or sublessees in connection with work or character
performed or claimed to have been performed on the leased premises by
or at the direction or sufferance of Tenant.
6. SPECIFIC RIf3HT OF ENTRY RESERVED BY LEg80R. Lessor reserves
the right and power to enter upon the leased premises for the purpos-
es of inspecting and investigating the leased premises.
7. INDEMNIFICATION. Lessor shall hold the Tenant harmless and,
at Lessor's expense, defend any question of title raised against
Lessor's property. Tenant agrees to defend, indemnify and hold
harmless the Lessor and the Lessor's employees from and against all
claims, suits, liabilities, judgments, costs, damages and expenses
which may accrue against, be charged to or recovered from Lessor or
Lessor's employees by reason of or on account of any personal injury
or property damage arising from Tenant's use or occupancy of the
leased premises. It is clearly understood and agreed that the
foregoing indemnification and hold harmless agreement does not impose
an obligation on the part of the Tenant to defend Lessor from its own
negligence or failure to act or that of its employees.
8. CONDEMNATION. If the leased premises shall be taken or
condemned for any public purpose to such extent as to render the
leased premises untenantable, this Lease shall, at the option of
either party, forthwith cease and terminate. All proceeds from any
taking or condemnation of the leased premises shall be awarded to the
Lessor.
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S. CASUALTY. In the event of a fire or other casualty affect-
"' ing the leased premises, Tenant shall immediately give notice thereof
to Lessor. If the leased premises, through no fault of Tenant, its
agents, employees, invitees or visitors, shall be partially destroyed
by fire or other casualty so as to render the leased premises unten-
antable, the rental herein shall, abate thereafter until such time as
the leased premises are made tenantable by Lessor. In the event of
' the total destruction of the leased premises without default or
neglect of Tenant, its agents, employees, invitees or visitors, or if
from such cause the same shall be so damaged that Lessor shall decide
not to rebuild, then all rent owed up to the time of such destruction
' or termination shall be paid by Tenant and thenceforth this Lease
shall cease and come to an end.
' 10. ASSIGNMENT. Tenant shall have the right to assign this
Lease to any U S West subsidiary without the prior written consent of
Lessor.
11. SURRENDER. Whenever the term herein demised shall be
terminated, whether by lapse of time, forfeiture or in any other way,
Tenant covenants and agrees that it will at once surrender and
' deliver the ].eased premises to Lessor in as good condition as when
Tenant took possession, ordinary wear and tear excepted, and if
Tenant shall holdover after any termination of this Lease, the same
1 shall create not more than a month -to- -month tenancy at the rent and
in all other applicable conditions herein provided.
12. DEPAtILT BY TENANT. If default shall be made in the payment
of any sum to be paid by Tenant under this Lease and default shall
continue for ten (10) days or if default should be made in the
performance of any other covenants or conditions in which Tenant is
:, required to observe and perform hereunder and such default shall
continue for twenty (20) days, Lessor may (i) terminate this Lease
and forthwith repossess the leased premises and remove all persons
and property therefrom and be entitled to recover damages or seek
equitable relief in accordance with the laws of the State of Minneso-
ta; or (ii) Lessor may terminate Tenant's right of possession (but
not the Lease) and may repossess the leased premises without demand
' or notice of any kind to Tenant and without terminating this Lease,
in which event Lessor may, but shall be under no obligation to, relet
the same for the account of Tenant for such rent and upon such terms
' as shall be satisfactory to Lessor, and Tenant shall remain liable
for rents payable under the Lease. Provided, however, that any rents
received from a reletting of the leased premises by Lessor shall be
' credited to the account of Tenant after deduction for costs of
recovering possession and all costs and expenses sustained by Lessor
in reletting the leased premises.
' 13. NQTICES. All bills, statements, notices or communications
which Lessor may desire or be required to give to Tenant shall be
deemed sufficiently given or rendered if in writing and either
' delivered to Tenant personally or sent by registered or certified
mail addressed to Tenant at the address shown below. The time of
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rendition thereof or the giving of such notice or communication shall
be deemed to be the time when the same is delivered to Tenant or
deposited in the mail as herein provided. Any notice by Tenant to
Lessor must be served by registered or certified mail addressed to
Lessor at the address whether the last previous rental hereunder was
payable, or in case of subsequent change upon notice given, to the
address furnished. The address of Tenant is as follows: U S West
Communications, Room 350, 2800 Wayzata Boulevard, Minneapolis,
Minnesota 55405, Attention: Real Estate Department. The address of
the Lessor is as follows: City of Chanhassen, P. O. Box 147, Chan-
hassen, Minnesota 55317, Attention: City Manager.
14. TERMINATION. Tenant may terminate this Lease by giving six
(6) months' written notice prior to termination.
15. ELECTRIC USE. Tenant will install an electric meter at its
cost and pay for all electric usage.
16. COVDUIT EASEMENT. See attached Exhibit B for telephone
conduit easement from street to leased space.
17. LEASE EXTENSION. Tenant will have two (2) five (5) year 1
options to renew this Lease with six (6) months' written notice under
the same terms and conditions as the original term.
18. 1UCCESSORS AND ASSIGNS. The terms and provisions of this
Agreement shall be binding upon the parties hereto and their respec-
tive successors and assigns.
19. SEVERRBILITY. In the event that any provision of this
Lease shall be held invalid or unenforceable, no other provisions of
this Lease shall be affected by such holding, and all of the remain-
ing provisions of this Lease shall continue in full force and effect
pursuant to the terms hereof.
20. MINNESOTA LAW TO GOVERN. This Lease shall be governed by
and construed under the laws of the State of Minnesota.
21. ENTIRN AGREEMENT. This Lease is the entire agreement of
the parties.
22. ENVIRONMENTAL. Tenant shall not conduct any activity or
keep or have on the leased premises any article or thing of a danger-
ous, inflammable or explosive nature that might unreasonably increase
the chance of fire or that might be considered hazardous or extra-
hazardous by any responsible insurance company.
23. QUIET ENJOYMENT. Lessor covenants and agrees with Tenant
that upon Tenant paying the rent under the Lease and observing the
other terms, covenants and conditions of the Lease, Tenant shall be
entitled to peaceably and quietly enjoy the leased premises.
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24. CASgALTI. Notwithstanding the provisions of Paragraph 9 of
this Lease, if, through no fault of Tenant, its agents, employees,
invitees or visitors, the leased premises shall be partially de-
stroyed by fire or other casualty so as to render the leased premises
' untenantable, Lessor shall determine, in good faith, whether the
leased premises can be made tenantable within ninety (90) days of the
casualty. Lessor shall notify Tenant, in writing, as to such deter-
mination with thirty (30) days after the casualty. If lessor shall
determine that the leased premises cannot be made tenantable within
such ninety (90) day period, Tenant shall be entitled to terminate
the Lease as of the date of the casualty by delivering written notice
' of termination to Lessor within thirty (30) days after receipt of
Lessor's determination.
' 25. SURRENDER. Notwithstanding the provisions of Paragraph 11
of this Lease, Tenant shall not be required to surrender the leased
premises to Lessor at the end of the term in as good condition as
when Tenant took possession in the event of casualty.
26. MISCELLATF US PROVISIONS. Tenant shall comply with the
following provisions:
A. Tenant shall landscape the leased premises and sur-
rounding area in accordance with a landscaping plan
' prepared by Tenant and approved by the Lessor. Tenant
shall be responsible for maintaining the landscaping
during the term of this Lease and replacing in kind any
dead, damaged or diseased landscaping materials.
B. Tenant shall, at its own cost, extend public sewer and
water to the leased premises and pay all applicable
' fees.
C. Tenant shall pay all special assessments, taxes and
' utility fees on the leased premises.
D. Tenant shall comply with the requirements established
by the Chanhassen City Council for site plan approval.
' E. On the commencement date of this Lease, the Tenant
agrees to provide to the Lessor ten (10) cellular
' telephones, the model to be selected by Tenant, all of
which are at the cost and expense of the Tenant. AT
the commencement of each renewal term as designated
' above, Tenant shall exchange, at Tenant's cost, the
above - described ten (10) telephones with ten (10)
similar and cost effective telephones of comparable
value.
1 F. Upon termination of this Lease, the building addition
shall become the property of Lessor.
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IN WITNESS WHEREOF, the parties hereto have executed this
Agreement the day and year first above written. II
LESSOR: I
CITY OF CHANHASSEN
II
BY:
bonald J. Chmiel, Mayor I
(SEAL)
AND
Don Ashworth, City Manager
TENANT: 1
U S WEST COMMUNICATIONS, a II Colorado corporation
By: U S WEST Business Resources,
Inc., Authorized Agent
II
BY:
Its 1
STATE OF MINNESOTA) II
(SS
COUNTY OF )
II
The foregoing instrument was acknowledged before me this
day of , 1993, by Donald J. Chmiel, Mayor, and Don I
Ashworth, City Manager, of the City of Chanhassen, a Minnesota
municipal corporation, on behalf of said municipal corporation.
Notary Public 1
II
STATE OF MINNESOTA) II (SS
COUNTY OF )
The foregoing instrument was acknowledged before me this 1
day of , 1993, by , ,
II
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the of U S West Business Resources, Inc.,
Authorized Agent for U S West Communications, a Colorado corporation,
on behalf of said corporation.
Notary Public
THIS INSTRUMENT WAS DRAFTED BY:
Campbell, Knutson, Scott &
Fuchs, P.A.
317 Eagandale Office Center
1380 Corporate Center Curve
' Eagan, Minnesota 55121
612/452 -5000
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CAMPBELL, KNUTSON, SCOTT & FUCHS, P.A Jun 10,93 14:43 No.005 P.09
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EXHIBIT B
I Telephone Conduit Easemer_t
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