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1g. Chamber Lease Agreement CITYOF 7700 Market Boulevard PO Box 147 Chanhassen MN 5531'7 Administration Fax: 952.2271110 Building Inspections Phone: 952227.! 180 Fax 952.2271190 Engineering Phor~e: 952227 1160 Fax: 952 227 1170 Finance P'ane: 9522271140 Fax: 9522271110 Park & Recreation Phone: 9522271120 Fax 952 2271110 Recreation Center 2310 Coulter Boulevard Phone: 9522271400 Fax: 9522271404 Planning & Natural Resources Phone: 952227 1130 Fax: 952 2271110 Public Works 1591 Park Road Phone: 9522271300 Fax: 952 2271310 Senior Center Phone: 9522271125 Fax: 952 227 1110 Web Site ;~.w~': c~ chanhasser~ mn us MEMORANDUM TO: Todd Gerhardt, City Manager FROM: DATE: Justin Miller, Assistant to the City Manager: .t October 29, 2003 RE: Lease agreement with the Chanhassen Chamber of Commerce for Old Village Hall BACKGROUND For several years, the Chanhassen Chamber of Commerce has operated out of the Old Village Hall building, currently located next to Old St. Hubert's Church. This arrangement has always been "unofficial", as there has never been a legally binding lease agreement with the Chamber. While the relationship between the City of Chanhassen and the Chamber has been very good, it is in the best interest of both parties to formalize a lease agreement for the Chamber's use of this building. The terms of the lease are that the Chamber's use of the building shall be limited to officially sanctioned chamber of commerce functions. Rent shall be in the amount of $1, and the term of the lease is month-to-month. A 90 day notice is required by either party wishing to terminate the lease agreement. The tenant will be responsible for maintaining the premises in a neat and orderly fashion, and to prevent any unnecessary waste, loss, or damage to the property. The City is and will continue to be responsible for all structural and mechanical repairs, as well as making sure the parking lot is plowed and sidewalks are shoveled. The City of Chanhassen is fortunate to have a building with the history of Old Village Hall, and is equally fortunate that an organization such as the Chamber of Commerce chooses to use it as their offices. Having a daily presence in the building helps ensure that the structure is maintained and preserved for future generations. RECOMMENDATION Staff recommends that the City Council adopt the attached lease agreement with the Chanhassen Chamber of Commerce for Old Village Hall. This action requires a simple majority of the City Council. lhe Cilt of Chankassen · A growing c;or~lfllumty witls clear! lakes qLla!i~¥ schools LEASE THIS LEASE is made on . ,2003, by and between the City of Chanhassen, a Minnesota municipal corporation ("Landlord"), and the Chanhassen Chamber of Commerce, a Minnesota non-profit corporation ("Tenant"). THE PARTIES AGREE AS FOLLOWS: 1. PREMISES. Landlord does hereby lease to Tenant and Tenant does hereby rent from Landlord the building commonly known as the "Old Town Hall" situated on property to be platted as Outlot B, OLD VILLAGE HALL, Carver County, Minnesota (the "Premises"). 2. TERM. The term of the Lease is month-to-month. 3. RENT. Tenant agrees to pay the sum of One and No/100 Dollars ($1.00) as rent for the Premises. 4. TAXES. Tenant shall pay, before delinquency occurs, real estate taxes and special assessments, if any, on that portion of the Landlord's property comprising the Premises, which become due and payable during the Lease term. 5. USE. Tenant's use of the Premises shall be limited to officially sanctioned chamber of commerce functions. Tenant hereby accepts the Premises on an "as is .... where is" basis without any representations or warranties as to its fitness for a particular purpose. Tenant has the nonexclusive use of the property adjacent to the Premises, for maintenance of Tenant's identification sign. Tenant also has the nonexclusive use of the parking lot located on land to be platted as Lot 1, Block 1, OLD VILLAGE HALL, Carver County, Minnesota, for vehicular and pedestrian access to the Premises, and for vehicular parking. 6. UTILITIES. Landlord shall pay for all utilities associated with operating the Premises. Tenant shall reasonably conserve heat, air conditioning, water and electricity. In the event that utility costs substantially increase as a result of Tenant's consumption, the Landlord may require the Tenant to pay for a portion of the increased costs. 7. COVENANTS BY TENANT. A. Tenant covenants and agrees to maintain the Premises, to keep the Premises neat and orderly, and to prevent any unnecessary waste, loss, or damage to property. Maintenance shall include, but is not limited to, stocking bathrooms with all necessary supplies, washing, mopping and interior painting of the Premises. B. The Tenant shall be responsible for securing and maintaining all City owned property within the Premises. C. The Tenant shall notify the Landlord when the Premises are in need of repair. D. The Tenant shall be responsible for ensuring that the Premises continue to comply with the Uniform Fire Code, provided such compliance does not include any structural changes to the Premises. E. Any repairs, the necessity of which are caused by the actions of the Tenant, shall be the sole responsibility of the Tenant. 8. COVENANTS BY LANDLORD. A. The Landlord is responsible for completing all structural and mechanical repairs to the Premises which shall include, but not be limited to plumbing, heating and electrical repairs. So long as Landlord is the fee owner of the land adjacent to the Premises, to be platted as Lot 1, Block 1, OLD VILLAGE HALL, Carver County, Minnesota, which contains a parking lot and sidewalks, Landlord agrees to keep the parking lot plowed and the sidewalks shoveled. B. Landlord covenants that Tenant, upon paying the rent and performing the covenants, shall peaceably and quietly have, hold and enjoy the leased Premises for the term of the lease. 9. ASSUMPTION OF RISIGINDEMNWlCATION. A. Tenant's Assumption of Risk/Indemnification of Landlord. The Tenant takes possession of the Premises under this Lease subject to the usual hazards of operating a building, and agrees to assume all risk of accidents to Tenant, Tenant's guests, Tenant's invitees, Tenant's employees, and/or agents in furtherance of the use of the Premises. Tenant agrees to hold Landlord harmless, indemnify and defend Landlord against any claims, suits, damages, losses, costs and expenses, resulting exclusively from Tenant's use of the Premises. B. Landlord's Indemnification of Tenant. Landlord agrees to hold Tenant harmless, indemnify and defend Tenant against any claims, suits, damages, losses, costs and expenses, resulting exclusively from Landlord's use of the Premises and/or its actions or inactions in maintaining the Premises and adjacent common areas. 10. INSURANCE BY LANDLORD. Landlord shall procure and maintain a policy or policies of public liability insurance, insuring against injury or death to persons and loss or damage to property. 11. ASSIGNMENT AND SUBLETTING. Tenant shall not assign this Lease, nor sublet the Premises, nor allow any other groups the use of the Premises without first obtaining the written consent of Landlord. 12. SURRENDER OF POSSESSION. Either party may terminate this Lease upon 90 days written notice to the other party. Tenant agrees that at the expiration of the term of this Lease, Tenant will yield up possession of the Premises to the Landlord, in as good order and 2 condition as when same were entered upon by the Tenant, reasonable wear and tear and damage by the elements alone excepted. Tenant shall surrender all improvements to the Premises. Landlord agrees to accept all Tenant improvements not removed in an "as-is .... where-is" condition. 13. MISCELLANEOUS. A. The Landlord covenants that it has full right and lawful authority to enter into this Lease for the full term aforesaid and that it is lawfully seized of the Premises. B. This Lease is governed by the laws of the State of Minnesota. If any term or provision of this Lease is declared invalid or unenforceable, the remainder of this document shall not be affected by such determination and shall continue to be valid and enforceable. C. This agreement contains the entire Lease contract between the parties hereto. D. Nothing contained in this Lease shall be deemed or construed by the parties hereto or by any third party to create the relationship of principal and agent or of partnership or of joint venture or of any association whatsoever between the Tenant and the Landlord, it being expressly understood and agreed that neither the payment of rent nor any act of the parties hereto shall be deemed to create any relationship between the Tenant and the Landlord other than the relationship of tenant and landlord. E. The section titles herein are for convenience only and do not define, limit or construe the contents of any paragraph or provision hereof. Whenever the singular is used, the same shall include the plural. F. All notices and requests which may be given or which are required to be given hereunder shall be sent by United States Mail, postage prepaid, certified with return receipt requested as follows: IF TO LANDLORD 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 IF TO TENANT: 391 W. 78th Street Chanhassen, MN 55317 IN WITNESS WHEREOF, both parties have hereunto set their hands the day and year first above written. LANDLORD: CITY OF CHANHASSEN By: And: Thomas A. Furlong, Mayor Todd Gerhardt, City Manager 3 And: Todd Gerhardt, City Manager This instrument was drafted by: CAMPBELL KNUTSON, P.A. [MJF] 1380 Corporate Center Curve, Suite 317 Eagan, MN 55121 (651) 452-5000