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