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6. Reimbursement of a Portion of Rental Payments for Old St. Hubert's Church CITYOF _ 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 1 Y` (612) 937-1900 MEMORANDUM 1 TO: Mayor and City Council 1 FROM: Don Ashworth, City Manager DATE: May 8 , 1989 1 SUBJ: Reimbursement of Rental Payments, Family of Christ Lutheran Church The Constitution requires separation of church and state. I do not think anyone can accuse the City of not upholding this 1 principal. The $70,000 assessment against the Catholic Church and $46,000 assessment against the Lutheran Church of the Living Christ, not only created a separation; it almost created a war. 1 Fortunately, staff was able to work with each of these two groups and reach an agreement which was agreeable to all parties. [Note: The agreement with the Lutheran Church of the Living Christ was reached within the last two weeks and is in the pro- cess of being formalized. ] Unfortunately, we have not done as good of a job with the Family of Christ Lutheran Church. Fortunately, the amount of difference between the staff position and the church' s is almost nothing in comparison to problems faced by St. Hubert' s and the Lutheran Church of the Living Christ. The issue is also ludicrous if placed in a larger perspective, i .e. the church' s net lease cost was 9 /sq. ft. ver- sus their position of 6 /sq. ft. I would like to state that neogitations with the church have been very professional and positions of both sides have been respected. I would expect that 1 we will walk away from this issue all being friends regardless of what decision is made. 1 The position of Family of Christ Lutheran Church is very well presented in their letter of April 27, 1989 , i.e. they are requesting reimbursement of rental payments of 60% of the total amount paid during the sub-lease of the church - $15, 000 x 60% 1 [ see Lease Agreement Section 2. 02( b) ] equalling $9 , 000. The position of this office is shown in my letter of October 26 , 1 1988, i .e. amount remaining in special account ( $10 , 084 ) x 60% = $6 , 050. 1 1 Mayor and City Council May 8 , 1989 Page 2 The Council should also note Bob Lindall' s letter (Holmes and Graven) of January 30, 1989 . In that letter, Bob refers to a compromise position offered by this office in which I would agree that the monies paid by the church for capital repairs of the facility should have been submitted to City Hall and if they were of a capital nature, this office would pay them. Mr. Weiberg was going to look through those receipts and make a determination as to whether to submit them to me or not. As of the date of this writing, I have not received verification of the $2, 100 paid by the church during their rental period. If received, a check would be made out to the church from the spe- cial account. The special account balance would then be $7, 984 x 60% equals $4, 790. That $4 , 800 + the $2,100 being reimbursed would bring the total reimbursement to approximately $7 , 000 . I have asked the City Auditors to review the language under the lease agreement and to advise me as to whether staff had any additional negotiating authority over that alluded to above. Their position was that I did not. Recommendation This office would recommend that the Council request that the church submit any capital bills which they believe to be unpaid and that the Manager, after verification of purpose and amount, is to issue a check to Family of Christ Lutheran Church in such amount. In addition, the Manager is to prepare a check in the amount of 60% of the then remaining balance in the special account and forward such to the Family of Christ Lutheran Church. I Lif/ 1 I I I 1 1 1 City of Chanhassen, Minnesota IManagement Report, Page 34 ISouth Lotus Lake Boat Access This fund was created in 1985 to account for expenditures related to the development of South ILotus Lake Park. This project is being financed by a LAWCON grant and a cash transfer from the Park and Acquisition Fund. The project was complete at December 31, 1987. We recommend that Ithe City close this fund in 1989. Community Development Block Grant IThe transactions to date in this fund have been as follows: I Prior Years 1988 Total Revenue/transfers in: I CDBG $167,041 _ $0 $167,041 Transfer from General Fund 0 14.500 14.500 Total revenue/transfers $167,041 $14,500 181.541 1 Expenditures/transfers out: Program administration $2,705 2,705 Land acquisition 119,589 119,589 I Comp plan implementation 27,415 27,415 Housing needs assessment 428 428 Downtown project marketing plan 9,953 9,953 I Comp plan update 10.559 S 10.350 20.909 Total expenditures/transfers $170,649 $10,350 180.999 Fund balance-December 31, 1988 5542 1 Old St. Hubert's Church _ This fund was established to account for the transactions related to the lease and sub-lease of a building. The fund balance of this fund was$10,886 at December 31, 1988. We recommend that Ithe City continue to monitor the balance of this fund. IOld Village Hall This fund was established in 1988 by a cash transfer of$48,700 from the HRA Downtown ITax Increment Fund. This fund will account for I I 1 CITY OF C HANHASSEN, MINNESOTA I Statement 20 Page 2 of 3 11 I Chanhassen Tax Increment District#2 HRA Community Old Old Lakes Economic Downtown Development St.Huberts Village Business Lake Lucy Development McGlynn Tax Rosemount Block Grant Church Hall Park Road District Project Increment Project IS542 $10,886 $48,700 $882,735 $802,761 $573,326 $109,022 9,478 ' $5,082 220,792 66,696 I I 159,294 I $542 $10,886 $48,700 SO $882,735 $114,104 $802,761 $1,029,586 SO I I S55.681 $119,004 $28,607 i $3,482 49 $12 $217,604 $8,188 I 482,000 21,330 1,702 I $0 SO SO 55,681 485.482 5.082 220.792 124,135 1,714 459,726 36,795 I 1 542 10,886 48,700 397,253 801,047 569,860 (36,795) I (55.681) (10.031) 1 542 10,886 48,700 (55.681) 397.253 (10.031) 801.047 569 860 (36,795) I $542 $10,886 $48,700 $0 $882,735 $114,104 $802,761 $1,029,586 SO I I 1 1 The accompanying notes are an integral part of these financial statements. I ' ' FAMILY OF CHRIST LUTHERAN CHURCH 275 Lake Drive East, P.O.Box 388 Church Phone Nate Castens, Pastor I Chanhassen, Minnesota 55317 (612)934-5659 At Home 934-7870 i ( 1 Thursday, April 27, 1989 I City Council Members City of Chanhassen IDear Friend: I Family of Christ Lutheran Church and city manager Don Ashworth have a difference of opinion regarding the amount of money to be returned to us following our lease of old St. Hubert's church building. IIOur attorney believes our interpretation of the lease and of the accounting is correct and has suggested we approach the Chanhassen City Council before taking any further steps to resolve the matter. I1 . Between 1980 and the end of 1983 we leased old St. Hubert's church. During that time a new furnace was installed in the build- ' ing. The cost of that improvement was not entirely covered by our lease payments, leaving the account with a balance of $-3859. 2. A new lease was negotiated and signed, beginning in 1984. I It allowed for a disbursement of surplus funds (if any) at the end of the lease period: 40% to the city of Chanhassen, 60% to Family of Christ. II3. From the beginning of 1984 to the end of 1988 Family of Christ paid $15,000 in funds. (In addition, we incurred $6200 in repairs II and remodeling costs, and $21 ,260 in costs for heat and electricity, as well as fully insuring the building. ) 4. We believe the 40% of the lease fund belonging to the city II - more than covers the deficit incurred at the end of 1983. $15,000 total lease payments, 1984-1988 x 40% II $ 6,000 retained by the City of Chanhassen - 3,859 deficit due to furnace repaid I $ 2,141 balance 1 1 ______ ___ _ _ ___ J f City Council Members April 27, 1989 We believe Mr. Ashworth is incorrect in his interpretation that the $3859 should be subtracted from monies to be returned to Family of Christ, and our attorney agrees with us. , The spirit of both leases (1980-1983 and 1984-1988) was that lease payments would cover capital repairs to old St. Huberts and that neither Family of Christ nor the City of Chanhassen would gain or lose. We think the numbers show that even with subtracting the furnace ' cost, the city has gained more than $2100. In addition, Family of Christ has repaired and improved the building without request- ing reimbursement. , 5. We believe we are entitled to the full return of 60% of the $15,000 lease payments, totalling $9000. ' I have enclosed copies of correspondence and the lease for your review. I hope that we can discuss this at a City Council meeting in the near future. Cordially, 7 . 6 __Q,6 44'7 Mike Weiberg, `/ president Family of Christ Lutheran Church , • 1 1 1 CITYOF CHANHASSEN �\ 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 April 7 , 1989 Family of Christ Lutheran Church Attn: Mr . Mike Weiberg ' P .O. Box 388 Chanhassen, MN 55317 Dear Mike: 1 Thank you for your letter of March 29, 1989 . You are right, we do have a difference of opinion in regards to rationale and 1 interpretation of the previous leases . For practical purposes , the old St. Hubert' s Church is treated as a separate business and other monies of the City are not intermingled with this account. 1 From my standpoint, I would have had no legal basis nor funds to simply make the -$3,859 go away on December 31, 1983. The pur- pose and intent of the fund was quite clear and the furnace expenditure was exactly why the fund was created. 1 As stated at the beginning, there is a difference in interpreta- tion. Similarly, I agree with Bob Lindall ' s assessment as to the 1 options open to the church. It appears only prudent that the item be presented to the Chanhassen City Council . Our next regular meeting date is April 24 , 1989. I will attempt to place this item early in the agenda; however , it does represent a new ' business item and may accordingly be later in that agenda . If you would call during the week of April 17th, either Karen or myself may be able to give you an idea as to the approximate time 1 that the item would be considered. Thank you again for your patience. ' Sincerely, Don Ashworth 1 City Manager DA:k 1 1 ` 2„ FAMILY OF CHRIST LUTHERAN CHURCH , 275 Lake Drive East, P.O.Box 388 Church Phone Nate Castens. Pastor Chanhassen, Minnesota 55317 (612)934-5659 At Home 934.7870 , ( i I Don Ashworth March 29,1989 CITY OF CHANHASSEN 690 Coulter DR. P.0.21•147 Chanhassen, MN 55317 Dear Don; Thank you for your time in meeting with Bob Lindall and myself on January 20, 1989. It is apparent that we are at what I would call an impass on the amount of money to be returned to Family of Christ. ' YOUR RATIONAL: The fund balance was at -$3,859 on December 31, 1983 due ro the furnace that was installed in 1983 That is correct. You will recall that the old lease was set up to have 25% of the fund paid over to the city, with the I church retaining 75% should the lease not be renewed Both of us were in agreement that the split of the fund was not adequate to cover expenses of maintaining Old St. Hubert's Church, thus we agreed that in the new 5 year lease that was to start in 1984 be changed to 40%/60%. Both your and my intent was that neither parties should have undue hardship placed on them 1 by Family of Christ leasing Old St Hubert's. [The interpert-ation of our existing lease oy our lawyer is that no mention or carry-over tunas - is covered in the current 5 year lease document.) OUR RATIONAL: Family of Christ as leasee of Old St. Hubert's was not to be held responsible for repairs over and above normal day-to-day operation of the building. If you look at it from this point of view, the City of Chanhassen, and St. Hubert's have had no financial outlay for the maintainance and or up-keep of Old St Hubert's In the last 8 years. In fact Don, if you look , pack over the last 8 years and start our 5 year lease with the -$3,859 balance with funds paid to you by us in this 5 year lease of $ 15,000 and apply the 4u%/60% .. . that le-ivec- the City at Ch:rhas�sen 3 $2, 1.41 APR 0 6 198' I PROFIT by leasing Old St Hubert's to u'. over the it 8 year CITY. OE CHANHAS'Ei . f r Don Ashworth, City of Chanhassen March 29, 1989 page -2- r Our Church Council feels very strongly about receiving the full $9,000 or 60% of our fund from the City of Chanhassen based on our last 5 year lease. I will be very frank with you Don, that the new comprehensive building/landscaping guidelines imposed by the City of ' Chanhassen as of 1 -1 -88, were different than the ones that we requested in 1987 when we were planning our building. Thus additional monies not r planned or budgeted for in 1987 added to our cost to construct in 1988 Simply stated Don, with the additional expense placed on us by the City of Chanhassen to build in 1988, we need the money r Bob Lindall, our church attorney gave us two options ' 1. Take the City of Chanhassen to small claims court 2 State our position to the full City of Chanhassen Council ' I would like to resolve this impasse as soon as possible , Don I would like to have you place Family of Christ on the agenda at your next city council ' meeting to explain to them why we are requesting the full $9,000 from the City of Chanhassen. I would like to give each city council member a copy of the lease, all of our correspondence on this subject, and our rational for requesting the $9,000 from the City. Please keep me informed as to when we are to appear before the City Council. rSincerely, Mike Weiberg President r Family of Christ cc; Roger Knutson, City Attorney Fr Barry Schneider, St Hubert's Bob Lindell, Family of Christ Attorney r HOLMES & GRAVEN CHARTERED Attorneys at Law 470 Pillsbury Center,Minneapolis,Minnesota 55402 ROBERT A.ALSOP (612)337-9300 JAMES S.HOI.MES JEFFREY R.BRAUCHLE Rapifax(612)337-9310 DUANE C.JOHNSON MARY J.BRENDEN JOHN R.LARSON ROBERT C.CARL SON JOHN NI.LEFT:VRE.JR. CHRISTINE M.CHAI.E ROBERT J.LIND.ALI. ROBERT L.DAVIDSON MARK A.LIND(;REN ROBERT J.DEIKE LAURA K.MOI.I.ET MARY G.DOBBINS WRITER'S DIRECT DIAL DANIEL.R.NELSON JEFFREY ENG STEFANIE N.GALEY BARBARA L.PORTRTX)U DAVID L.GRAVEN 337-9219 LARR B.M.WERTI JOHN R.GREEN LARRY JI.W ILKINS BONNit.L.N'l1.KIN5 REYNAUD L.HARP January 30, 1989 1 Mr. Michael Weiberg President Family of Christ Lutheran Church 112012 Warner Circle Chaska, Minnesota 55318 Mr . Dean Brown I Chair , Building Committee, Family of Christ Lutheran Church 18737 Clear View Drive Minnetonka, Minnesota 55345 RE: Evaluation of Possible Church Claims Against City Our File No. FA165-1 Gentlemen: This will confirm the results of the meeting which Mike Weiberg and I had with representatives of the City of Chanhassen on January 20 , 1989 , relating to fees charge by the City and requirements imposed by the City in connection with connection to the City sewer , the need for installing a sprinkler and issuance of the building permit . Mike and I were satisfied by the explanations of the City staff involved and concluded that no amounts were charged or requirements imposed by the City which were not consistent with standard City policy. I now have received word from Gary Warren, City Engineer, that the special assessment for which installments are now being charged on the Church' s tax statement (Project No. 2585) relate to improvements for Lake Drive . You had asked that I confirm whether this assessment was for " . . . initial installation of the storm sewer and the street improvements known as cul-de-sac D as noted in a preliminary plan for Hidden Valley approved by the City of Chanhassen City Council on May 20, 1985" . Mr . Warren advised me that it was his opinion that the assessment is not for the matters described in the above quoted language from the contract for deed between New American Homes Corporation and Family of Christ Lutheran Church, dated October 11, 1985 . Therefore, it appears that the duty to pay this amount is upon , I its II , Mr . Michael Weiberg Mr . Dean Brown ' January 30, 1989 Page Two I the Church, as buyer , under the Contract for Deed, rather than New American, as seller . I am enclosing a copy of the Contract . Please note that the Church specifically agreed to pay all other special assessments. ' On January 20, Mike and I also met with Don Ashworth, City Administrator. Ashworth said that he has no problems with the City reimbursing Family of Christ for $6, 000 from the lease ' escrow account relating to your occupancy of old St. Hubert ' s, and that he is willing to approve reimbursement to the Church of an amount in excess of $6, 000 which is equal to amounts incurred ' by the Church during the lease term for maintenance costs other than those which it was required to make under the sublease. I know that Mike is not satisfied with this. However , I recommend that you go through the exercise of determining the amounts of ' this type which you can demonstrate. If they are sufficient to equal $3, 000, we should be able to get back the entire $9 , 000 without any further argument with Ashworth. If they do not equal I $3 , 000, we will need to consider what further collection efforts can be justified financially. Certainly, an appearance by Church representatives before the City Council would be appropriate and would not be costly. I believe that the Church should be able to expect a fair hearing from the City Council. You can also sue the City in conciliation court, without an attorney, for not to exceed $2, 000, if you are prepared to go that far. After you have had an opportunity to examine the amount of such expenditures which the Church has incurred , please give me a call so that we can discuss our next step. ' Please give me a call if you have any questions or concerns about the above. ' Vee t ply/your; tC / 4 ./ Robert J. Lindall ' RJL: kar 1 _ 1 .A1 . r --- at U,J ■,,- t_ '.1, (_ _\ �..'J L.,.� Lvr.,^j _.. ~..`' _.. .-L. „ _ _ _. 2 _ L. ._. ..i i`J J! tr;/1 y ' 1 '1 ryi.�° 9°9 4 �`+Y�,, /7" R ,4.i.i..m y ', w�. f'�� ! 1 Post Office Box 388 �,,_,rcn Phone late Castens. Pastor ` Chanhassen, Minnesota 55317 1 12 934-559 At Home 934-7870 J I, . • Don Ashworth January 11, 1989 1 CITY OF CHANHASSEN 690 Coulter Dr. p.o. .4 147 Chanhassen, MN 55317 , Dear Don; II am in receipt of your letter of October 26, 1988, This letter was your response to my letter and last rent check dated October 17, 1988. I Both of us are well versed on the terms of the lease as we negotiated that lease. The lease was a five year lease to run from: 1 -1-84 to 12-31 -88. Under the terms of the lease for Old St, Huberts, Family of Cnrist Lutheran i 1 Church was to pay the City of Chanhassen rent over the five years totaling 1 $15,000. In addition Family of Christ was to assume all utilities and i I operational costs for the operation of Old St. Huberts. I to recall Don, that during our negotiations I felt that Family of Christ I should not make large outlays of money to make capital repairs on Old St, Huberts which may benefit others or have a life expectancy longer than the ' five year lease. I would like to point out to you Don, that Family of Christ has been a good 1 tenant for the City of Chanhassen to rent to. Over and above we have maintained and repaired at our own expense Old St. Hubert's the best we I could. Over the life span of the lease we have: Paid .... $21,266 in Heat/Electricity Paid .... $2,664 in Repairs , Paid .... $3.542 in Remodeling Costs That's a total of.... $27,472 over and above our $ 15,000 rent paid to the I City of Chanhassen. [we did not seek reimbursment for the $6,206 in repairs and remodeling costs incured over the last five years.] I After you have reviewed the above numbers I think that you would have to agree with me Don, that Family of Christ has taken good care of Old St. JAN 12 1989 j I•iubert's, without putting any undue financial hardship on either the City or St. Hubert's Church, as a result of our leasing the structure. CITY OF CHANHASSEN ../ I i Don Ashworth January 1 1, 1989 ' Page -2- In fact, Don, it has been a WIN-WiN for: The City of Chanhassen St. Huberts Church Family of Christ Church All of us have come out winners by our leasing Old St. Hubert's. The City of Chanhassen and St. Hubert's have not had any expenses related to the operation or repair of Old St. Hubert's during the five year lease period. Our Church Council feels very strongly about requesting from the City of ' Chanhassen 60% of our rent paid over the last five years. That works out to $9,000. As we see it Don we have been good christian neighbors, and in ■ the spirit of good christian neighbors according to our calculations the ■ City of Chanhassen will have left over from the five year lease payments, $6,000. That will be enough money to pay for proposal No.1 by Chapel ' Art Glass Co., Inc. to repair the windows at a cost of $5,920. We feel that this is a nice THANK YOU from Family of Christ to the City of 1 Chanhassen, and St. Hubert's. When can we expect a check for $9.000? Sincerely, / ' Mike Weiberg President Family of Christ cc: Roger Knutson, City Attorney Fr. Barry Schneider, St. Hubert's Church Bob Lindall, Family of Christ Attorney CITY OF R CHANHASSEN • i 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 , October 26 , 1988 Family of Christ Lutheran Church ' Attn: Mr. Mike Weiberg P.O. Box 388 Chanhassen, MN 55317 , Dear Mr. Weiberg: I am in receipt of your letter of October 17, 1988. I would anticipate that the City Attorney will agree with your interpre- tation of Section 2 . 02 and that the City will be required to pay to Family of Christ Lutheran Church the 60% of the special fund retained for receipts/ expenditures associated with old St. Hubert' s Church. During our negotiations, I continuously main- tained the position that the City was not attempting to extract monies from the Family of Christ Lutheran Church for major repairs which may benefit others or have a life expectancy of much longer than the potential one, two or five year period that the Family of Christ occupied the structure. On the other side of the coin, the Family of Christ Lutheran Church should pay its reasonable share for such expenditures . The windows in the church had been re-leaded shortly before the sub-lease to Family of Christ. Attached please find a proposal received outlining costs which will need to be made during the next one, two or three year period. The window over the main entry was "wired up" during this past month as a stop gap measure to insure that such would not fall on one of. the parishioners leaving the church. Todd Gerhardt of our staff informs me that, similarly, the church has known for a significant period that "leaks" were occurring in the roof and that re-shingling was/ will be required. 1 Although I would anticipate that you would disagree, I do not believe that the current request for repayment of the special account monies are in keeping with the spirit and intent of that section when it was drafted. It was my belief that the wordage was established to insure that reasonable capital costs would be paid by the Family of Christ Lutheran Church, without putting an undue hardship on either the City or St. Hubert' s Church as a result of your leasing the structure. Again, I would anticipate Mr. Mike Weiberg October 26 , 1988 Page 2 • that the City Attorney will Y Y 1 take the position that the City and/or St. Hubert' s Church will be the losers . In regards to the special account, payment of the furnace repairs was a known cost by Family of Christ Lutheran Church. ' Accordingly, during those early years , expenditures did occur out of the special account and, in fact, the special account maintained a deficit during that time frame. Attached please find a copy of the annual financial report, as of December 31, 1987, pertaining to said special account. As can be seen, the account had a balance of $6 ,272 as of December 31, 1988 . I am unaware of any expenditures in 1988 with the exceptions of the ' emergency repair of the window over the front doorway. I would anticipate this cost to be less than interest earnings to be received in 1988 and, accordingly, a balance at year end will be approximately $10 ,000 . Should you wish to review the records of the special account, you should contact either Jean Meuwissen or Tom Chaffee on City staff. The audit report referred to was pre- pared by Voto, Tautges and Redpath, CPA. ' As noted above, I will refer the questions posed above to our City Attorney. I will notify you, the City Council, and St. Hubert' s Church of his findings when received. Sincerely, '1(2 Don Ashworth City Manager DA:k cc: Roger Knutson, City Attorney Fr. Barry Schneider , St. Hubert' s Church Enclosures : Letter from Mike Weiberg dated October 17, 1988 ' with enclosures . Annual Financial Report ( Statement 18 , Page 2 of 4 ) , December 31, 1987 . OLD ST. HUBERT'S CHURCH SUBLEASE AGREEMENT CITY OF CHANHASSEN - FAMILY OF CHRIST LUTHERAN CHURCH THIS AGREEMENT, made and entered into as of the first day of November, 1983 , by and between the City of Chanhassen, a Minnesota municipal corporation ( "City") and Family of Christ Lutheran Church of Chanhassen ( "Church") . WITNESSETH, that the City and Church in consideration of the mutual covenants herein contained, hereto recite and agree as follows: SECTION 1 RECITALS I 1 .01 Lease. The City has heretofore under date of December 31 , 1978, leased the premises commonly known as Old St. Hubert' s Church ( "Premises") from the Church of St. Hubert's of Chanhassen for an initial term of five years with a renewal for an additional five year term from December 31, 1983; that a true and correct copy of said lease together with a copy of the proposed 1983 renewal lease are attached hereto as Exhibit A and made a part hereof. 1.02 Sublease. The Family of Christ Lutheran Church of Chanhassen desires to sublease said premises from the City for use as a place of worship, including facilities for church com- mittee meetings, church office space, Sunday school, choir prac- tice and related church activities. 1 .03 Consent of City. The City agrees to the sublease , of the premises upon the following terms and conditions. SECTION 2 SUBLEASE TERMS AND CONDITIONS , 2 .01 Term of Sublease and Rental. The term of the writ- ten sublease shall be for a period of 5 years from December 31, 1983 , to December 31, 1988, the Church paying therefor the rent of One Dollar ($1 . 00 ) per year or fraction thereof, payable in advance on the first day of November of each year of the term of the lease. This lease will be subject to cancellation by the Church upon submission of a written notice of the intent to vacate one year in advance of said action, and the Church shall be responsible for all rental and other obligations contained herein up to and including the actual date the premises are 11 vacated. 2.02 Additional Rental. In addition to the rental hereinabove set forth the Church shall pay additional rental in the following manner: 1984 - $2 ,000 ' 1985 - $2,500 1986 - $3 ,000 1987 $3,500 1988 - $4 ,000 II - The above sums shall be payable in quarterly installments due ' II on the first business day of each quarter. Said quarterly rental installments shall be deposited in a special bank account with the City and shall be used for the making of capital improvements to II the structure as shall be deemed necessary by mutual agreement of the Church and the City. Any funds remaining in said account at the termination or cancellation of this sublease shall be disposed of as follows: I - a. Utilized for such purposes as may be mutually agreed upon between the Church and the City in Ithe event the sublease is renewed, or - b. If the lease is not renewed or is cancelled, then 40% of the fund paid over to the City, and out of • I the remaining 60%, the City shall be paid any and all sums owed by the Church hereunder and still unpaid. The balance of the 60% of the fund, if any, (7/ �A Ishall then be paid over to the Church. E. -- \ Qr h if C h i a \� Any sums due under this Lease not paid within five (5) days of when due shall be considered delinquent and a late I charge of $25 .00 for each delinquent payment shall immediately be due. I 2.03 Additional Terms and Conditions. In addition to the foregoing, the Church agrees to the following terms and conditions: Ii. To assume all utility costs including heat, electri- city, sewer and water, and costs of grounds maintenance including grass cutting and snow removal, which are to be considered also I ‘ part of the rental due under this lease. 2 . To provide office space of no smaller than II square feet for Church of St. Hubert's Youth Activities Director under terms with St. Hubert' s. 3 . To retain the historical value of the sanctuary to I the City and Church of St. Hubert' s, and not to remodel or redecorate the same. I 4. To provide public liability and structural physical damage insurance covering said premises, insuring the interests of the City, the Church, and the Church of St. Hubert' s of Chanhassen for the costs of insurance coverage expended by it in II insuring said premises at full insurable value of said premises; the Church shall furnish evidence of such paid up insurance to the City in advance of every year of the term of this lease. I5 . The Church shall not commit, or allow to be com- mitted, any act that would violate the terms and conditions of I the City' s underlying Lease with the Church of St. Hubert's of Chanhassen as referred to above. -2- i • • J ■ f. ` ` ' • t 6. The Church shall be liable for all damages to the structure or premises due to its negligence or the negligence of II its members and shall indemnify the city from and against all such damages . 2 .04 Agreement of City. In consideration of the I foregoing, the City agrees as follows: 1 . To allow the Church to remodel the interior of the , rectory at its sole expense for use as an office for the Pastor of the Church. 2. To allow the Church to remodel the basement area of I the premises at its sole expense for use as a Sunday school and meeting rooms . SECTION 3 CONSENT OF OWNER. II 3 .01 Consent of Owner. The within sublease shall become effective upon the written consent of the Church of St. Hubert' s 1 of Chanhassen, as owner of the premises, which consent shall be endorsed hereon. r SECTION 4 MISCELLANEOUS 4.01 Right of Entry. The City shall have the right at II all reasonable times during the term of this Sublease to enter the leased premises for the purposes of inspecting the same. 4 .02 Default. If any default is made in the payment of I rent, or if any default is made in the performance of or compliance with any other term or condition hereof, the Sublease, at the option of the City, shall terminate and be forfeited, and II the City may re-enter the premises and remove all persons therefrom. 4.03 Surrender of Premises . Upon termination of this I Sublease, or any renewal thereof, the Church shall quit and surrender the leased premises in as good a state and condition as they were at the commencement of this Sublease, reasonable wear II and use thereof and damages by the elements excepted. 4.04 Underlying Lease. If the underlying Lease dated II December 31, 1983 , referred to above is at any time cancelled or terminated for any reason whatsoever, this Sublease shall be also considered cancelled and terminated. IN TESTIMONY WHEREOF, the City and the Church have II signed, sealed and executed this instrument in triplicate as of the day and year first above written. II CITY OF C- ' 'HASSEN II By m' Attest ( j7 ;, � f II FAMILY OF CHRIST LUTHERAN CHURCH BY %L-&- /-v,/ ' Its • t<Ero�tir And te,L��S 6 Its < eec'r/UY CONSENT Consent is hereby given for the above sublease to Family of Christ Lutheran Church. CHURCH OF ST. HU: RT'S OF CHANHASSEN BY4jr a W: �► Its ' And - �--� ' Its Dated this 41t day of , l9 V. I 1 ' -4- L-C.If(/).12\TLA, 21i7A.11ART(i)12` 1 Post Office Box 388 Church Phone Nate Castens. Pastor Chanhassen, Minnesota 55317 (612) 934-5659 At Home 934-7870 October 17 , 1988 City Of Chanhassen 690 Coulter Dr. P.O. Box 147 Chanhassen, MN 55317 Dear Don; Attached you will find our "LAST" rental payment for Old St . Hubert ' s Church. I have also attached a copy of your letter dated October 21 , 1983 with a copy of our sublease agreement. Please note Section 2 under 2 .02 Additional Rent payable in quarterly installments. Please note also note b. under this sub title: 40% of fund paid over to the city, and 60% of fund retained by the Church in the event the sublease is not renewed. Based on this Don my calculations are that we have paid to the City of Chanhassen over the last 5 years $15, 005 . Based on the 60% retained by us I come up with $9, 003 due to be returned to us . I would like to say a big THANK YOU to the city of Chanhassen , for leasing Old St . Hubert ' s to us . If all goes well with our new building, we will be in it by Christmas . w701F Mike Weiberg President, Family of Christ OCT i 8 198 , 8 CITY OF CI IANhASSEiv I 1 I CITY OF rr 1 ` 111 NANHAssEN 690 COULTER DRIVE • P.O. BOX 147 • CHANHASSEN, MINNESOTA 55317 (612) 937-1900 October 21, 1983 Family of Christ Lutheran Church Attn. Nate Castens, Pastor ' P.O. Box 388 Chanhassen, MN 55317 Dear Pastor Castens: _ Attached please find the proposed sublease agreement between the City of Chanhassen and Family of Christ Lutheran Church. I ' believe it is in accordance with our previous discussions. As you will note by the attached letter, I am also sending a copy of the proposed lease agreement between the City and St. Hubert ' s j Church to Father John. Again, I believe that this lease agreement is in accordance with the desires of Father John and in accordance with the discussions between ourselves. Please feel free to contact me if changes are desired. Additionally, please contact me if it does not appear as though the lease agreement can be consummated by mid-November . Sincerel Don Ashworth City Manager cc: Mike Weiberg It OLD ST. HUBERT 'S CHURCH II SUBLEASE AGREEMENT CITY OF CHANHASSEN - FAMILY OF CHRIST LUTHERAN CHURCH II THIS AGREEMENT, made and entered into as of the first day of November, 1983 , by and between the City of Chanhassen, a II Minnesota municipal corporation ( "City") and Family of Christ Lutheran Church of Chanhassen ( "Church") . WITNESSETH, that the City and Church in consideration of 1 ; , the mutual covenants herein contained, hereto recite and agree as follows: SECTION 1 RECITALS 1.01 Lease. The City has heretofore under date of II i; December 31, 1978, leased the premises commonly known as Old St. (" Hubert 's Church ( "Premises") from the Church of St. Hubert 's of Chanhassen for an initial term of five years with a renewal for an additional five year term from -December 31, 1983; that a true II and correct copy of said lease is attached hereto as Exhibit A and made a part hereof. 1 .02 Sublease. The Family of Christ Lutheran_ Church of II Chanhassen desires to sublease said premises from the City for use as a place of worship, including facilities for church com- mittee meetings, church office space, Sunday school, choir 41/practice and related church activities. 1 .03 Consent of City. The City agrees to the sublease 1 of the premises upon the following terms and conditions. SECTION 2 SUBLEASE TERMS AND CONDITIONS 2.01 Term of Sublease I Rental, The term of the writ- ten sublease shall be for a period of 5 years from December 31 , 1983, to December 31, 1988, the Church paying therefor the rent II of One Dollar ( $1 . 00 ) per year or fraction thereof, payable in advance on the first day of November of each year of the term of the lease. This lease will be subject to cancellation by the II Church upon submission of a written notice of the intent to vacate one year in advance of said action. 2.02 Additional Rental. In addition to the rental II hereinabove set forth the Church shall pay additional rental in the following manner: 1984 - $2,000 II 1985 - $2, 500 1986 - $3, 000 II 1987 - $3, 500 1988 - $4,000 The above sums shall be payable in quarterly installments due on the first business day of each quarter. Said quarterly rental installments shall be deposited in a special bank account with the City and shall be used for the making of capital improvements to 11 the structure as shall be deemed necessary by mutual agreement of the Church and the City. The City shall be furnished with veri- g:z fication of the amount in said account upon request by the City. Any funds remaining in said account at the termination of this ' sublease shall be disposed of as follows: ' a. Utilized for such purposes as may be mutually agreed upon between the Church and the City in the event the sublease is renewed, or b. 40% of fund paid over to the City, and 60% of fund retained by the Church in the event the sublease is not renewed. 2.03 Additional Terms and Conditions. In addition to the foregoing, the Church agrees to the following terms and conditions: 1. To assume all utility costs including city, sewer and water, and grounds maintenance including grassri- ' cutting and snow removal. q grass 2. To provide office space for Church of St. Hubert 's Youth Activities Director, under terms with St. Hubert 's Church. ' 3. To retain the historical the City and Church of St. Hubert 's, and lnot otot remodel tsame. to IliV 4. To provide public liability and structure damage insurance covering said structural physical g r of the City, the Church, and theChurch�ofnSt. Hubert' snofrets ' Chanhassen as their interests appear, or at the election of the Church, to reimburse the Church of St. Hubert 's of Chanhassen for the costs of insurance coverage expended by it in insuring said premises. 2. 04 Agreement of City. In consideration of the ' foregoing, the City agrees as follows: 1. To allow the Church to remodel the rectory at its ' expense for use as an office for the Pastor of the Church. 2. To allow the Church to remodel the basement area at its expense for use as a Sunday school and meeting rooms. 3. The Church shall be liable for all damages to structure or premises due to its negligence or the negligenceeof its members. 4. The Church shall have the option to renew the within sublease for a five-year term commencing January 1, 1989. I SECTION 3 CONSENT OF OWNER. ' 3.01 Consent of Owner. The within sublease shall become effective upon the written consent of the Church of St. Hubert 's • of Chanhassen, as owner of the premises which consent shall be ' endorsed hereon . IN TESTIMONY WHEREOF, the City and the Church have signed, sealed and executed this instrument in triplicate as of the day and year first above written. CITY OF CHANHASSEN By Attest FAMILY OF CHRIST LUTHERAN CHURCH By Its And Its CONSENT Consent is hereby given for the above sublease to Family I of Christ Lutheran Church. CHURCH OF ST. HUBERT 'S OF CHANHASSEN I By Its And 'Its Dated this day of 19_ , I4• W,�4ii■ ff Aid i IP **I P, ' ART CHAPEL CO.,INC. AUGUST 11, 1988 ' PROPOSAL NO. I SUBMITTED TO: ST. HUBERT'S CHURCH 7707 GREAT PLAINS CHANHASSEN, MINNESOTA 55317 I. WORK TO BE DONE: CHAPEL ART GLASS COMPANY, INC. WILL COMPLETE THE REPAIRS ON THE WINDOWS OF YOUR CHURCH IN THE FOLLOWING MANNER: ' ENTRYWAY: . 1. DOOR TRANSOM IN MAIN ENTRYWAY: REMOVE ENTIRE PANEL. ' RELEAD ENTIRE STAINED GLASS PANEL. INSTALL THREE NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. MAIN SANCTUARY, STARTING IN THE REAR NORTHWEST CORNER AND GOING CLOCKWISE AROUND THE CHURCH: ` ' 2. SINGLE LANCET WINDOW FACING WEST: REMOVE VERY BAD BULGE IN BOTTOM SECTION. SET GLASS BACK INTO LEAD CAME. INSTALL THREE NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. 3. SINGLE LANCET WINDOW: REMOVE VERY BAD BULGE IN BOTTOM SECTION. SET GLASS BACK INTO LEAD CAME. INSTALL THREE NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. 4. SINGLE LANCET WINDOW: REMOVE MINOR BULGE IN TOP SECTION. INSTALL ONE NEW FLAT STEEL BRACE. Continued- ALAN P ' 1460 Rice Creek Drive•Fridley,MN. 55432 call collect 612-572-9744 11- PROPOSAL NO. 1, PAGE 2, RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. , 5. SINGLE LANCET WINDOW: REMOVE MINOR BULGE IN TOP SECTION. INSTALL ONE NEW FLAT STEEL BRACE. RESOLDER BROKEN BRACES AND LEAD JOINTS. REPLACE TWO BROKEN SASH CORDS. 6. SINGLE LANCET WINDOW: REMOVE VERY BAD BULGES IN BOTH TOP AND BOTTOM SECTIONS. SET GLASS BACK INTO LEAD CAME. INSTALL FIVE NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND'LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. 7. SINGLE LANCET WINDOW EAST OF DOORWAY: REMOVE VERY BAD BULGE IN BOTTOM SECTION. SET GLASS BACK INTO LEAD CAME. INSTALL THREE NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. ALTAR AREA: 8. SINGLE LANCET WINDOW: t RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. 9. SINGLE LANCET WINDOW: RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. I SOUTH SIDE: 10. FRONT SINGLE LANCET WINDOW: I RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. 11. SINGLE LANCET WINDOW: REMOVE MINOR BULGE IN BOTTOM AND TOP SECTION. INSTALL TWO NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND'LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. 12. SINGLE LANCET WINDOW: ' REMOVE VERY BAD BULGE IN BOTTOM SECTION. SET GLASS BACK INTO LEAD CAME. INSTALL THREE NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND'LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. Continued- ' I I , . PROPOSAL NO. I, PAGE 3, 1 13. SINGLE LANCET WINDOW: ' REMOVE MINOR BULGES IN BOTH TOP AND BOTTOM SECTIONS. INSTALL TWO NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. 14. SOUTH STAIRWAY WINDOW: REMOVE VERY BAD BULGES IN BOTTOM SECTION. SET GLASS BACK INTO LEAD CAME. INSTALL TWO NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. 15. WEST STAIRWAY WINDOW: ' RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. 16. BALCONY WINDOW: REMOVE VERY BAD BULGE IN BOTTOM SECTION. SET GLASS BACK INTO LEAD CAME. SET STAINED GLASS PANEL BACK INTO WOOD FRAME. ' INSTALL THREE NEW FLAT STEEL BRACES. RESOLDER BROKEN BRACES AND LEAD JOINTS. SEAL MINOR CRACKED GLASS WITH CLEAR SILICONE SEALANT. II. INSURANCE: OUR COMPANY IS FULLY INSURED. WE CARRY WORKERS' COMPENSATION AND COMPREHENSIVE GENERAL LIABILITY WHICH ENCOMPASSES PREMISES/OPERATIONS, PRODUCTS/COMPLETED OPERATIONS AND CONTRACTUAL AND MEDICAL INSURANCE. III. WARRANTY: ' WHEN THE JOB IS COMPLETED AND PAYMENT RECEIVED, YOU WILL BE ISSUED A TEN-YEAR WRITTEN WARRANTY COVERING ALL MATERIALS AND WORKMANSHIP. IV. PRICE: THE COST TO COMPLETE THIS WORK WILL BE: 'I FIVE THOUSANDS NINE HUNDRED & TWENTY DOLLARS [$5L920.00]. ' PLEASE NOTE ANY MILL AND SASH WOOD WORK WILL BE PERFORMED ON A TIME AND MATERIAL AT $27.50 PER HOUR.. ' THESE PRICES ARE SUBJECT TO CHANGE SHOULD THE CONTRACT REMAIN UNSIGNED FOR A PERIOD OF SIXTY DAYS FROM THE DATE OF THIS PROPOSAL. ' Continued- 1 . ■• PROPOSAL NO. 1, PAGE 4, _ V. PAYMENT: UPON COMPLETION OF ALL WORK AND APPROVAL OF SAME, A CHECK IN THE , AMOUNT OF THIS PROPOSAL SHALL BE MADE OUT TO CHAPEL ART GLASS COMPANY AND GIVEN TO OUR CREW FOREMAN. VI. CONTRACT ACCEPTANCE: TO ACCEPT THE TERMS OF THIS PROPOSAL, PLEASE SIGN THE COPY AND RETURN IT TO OUR OFFICE. THE ORIGINAL MAY BE RETAINED FOR YOUR RECORDS. IF YOU SHOULD HAVE ANY QUESTIONS, PLEASE CALL US. ACCEPTED FOR THE CHURCH: ' ACCEPTED FOR CHAPEL ART GLASS COMPANY, 11\1„S.: ( / ALAN J. PALMER, CHIEF EXECUTIVE OFFICER • AJP:djp I 9 1 1 I 1 MI LI, I W0 ' ARTS CO.,INC. AUGUST 11, 1988 PROPOSAL NO. 2 SUBMITTED TO: ST. HUBERT'S CHURCH 7707 GREAT PLAIN CHANHASSEN, MINNESOTA 55317 ' I. WORK TO BE DONE: CHAPEL ART GLASS COMPANY, INC. WILL INSTALL PROTECTIVE STORM COVERINGS ' ON THE SIXTEEN LEADED STAINED GLASS WINDOWS IN YOUR CHURCH. THIS INSTALLATION WILL BE COMPLETED IN THE FOLLOWING MANNER: A. REMOVE ALL OLD STORM GLASS. ' B. SCRAPE ALL OLD LOOSE PAINT AND PUTTY FROM AROUND THE PERIMETER OF THE WINDOWS TO BE COVERED. ' C. RECEMENT THE EXTERIOR SURFACES OF THESE WINDOWS BY BRUSHING NEW CEMENT INTO THE LEAD LINES TO SEAL AND HELP SUPPORT THE WINDOWS. D. PAINT THE FRAMES OF THE WINDOWS TO BE COVERED WITH TWO COATS OF QUALITY PAINT. E. THE PLASTIC WILL THEN BE INSTALLED, IN SECTIONS. BRONZE-COLORED ALUMINUM T-BARS ARE USED WHERE IT IS NECESSARY TO DIVIDE. ' F. THE INSTALLATION WILL BE FROM BRICK TO BRICK, COVERING ALL THE WOOD. G. TO ENSURE A PERMANENT, AIR-TIGHT, LEAK-PROOF INSTALLATION, THE OUTSIDE EDGES OF THE PLASTIC WILL BE SEALED WITH CLEAR SILICONE. II. INSURANCE: OUR COMPANY IS FULLY INSURED. WE CARRY WORKERS' COMPENSATION ' AND COMPREHENSIVE GENERAL LIABILITY WHICH ENCOMPASSES PREMISES/OPERATIONS, PRODUCTS/COMPLETED OPERATIONS AND CONTRACTUAL AND MEDICAL INSURANCE. Continued- ALAN PALMER 1460 Rice Cn ek Drive•Fridley,MN 55432 call collect 612-572-9744 • PROPOSAL NO. 2, PAGE 2, III. WARRANTY: I WHEN THE JOB IS COMPLETED AND PAYMENT RECEIVED, YOU WILL BE ISSUED A ' TEN YEAR WRITTEN WARRANTY COVERING ALL MATERIALS AND WORKMANSHIP. IV. PRICE: , THE COST TO COMPLETE THIS WORK WILL BE: USING 1/4-INCH XL SOLAR GRADE LEXAN $12,290.00. USING 3/16-INCH XL SOLAR GRADE LEXAN $10,752.00. USING 1/4-INCH PLEXIGLAS $9,216.00. PLEASE INDICATE WHICH MATERIAL YOU HAVE CHOSEN TO USE. THESE PRICES ARE SUBJECT TO CHANGE SHOULD THE CONTRACT REMAIN UNSIGNED FOR A PERIOD OF SIXTY DAYS FROM THE DATE OF THIS PROPOSAL. V. PAYMENT: UPON COMPLETION OF ALL WORK AND APPROVAL OF SAME, A CHECK IN THE AMOUNT OF THIS PROPOSAL SHALL BE MADE OUT TO CHAPEL ART GLASS COMPANY AND GIVEN TO OUR CREW FOREMAN. VI. CONTRACT ACCEPTANCE: TO ACCEPT THE TERMS OF THIS PROPOSAL, PLEASE SIGN THE COPY AND RETURN IT TO OUR OFFICE. THE ORIGINAL MAY BE RETYIINED FOR YOUR RECORDS. IF YOU SHOULD HAVE ANY QUESTIONS, PLEASE CALL US. I ACCEPTED FOR THE CHURCH: , 1 ACCEPTED FOR CHAPEL ART GLASS COMPANY, INC ALAN J. PALMER, CHIEF EXECUTIVE OFFICER AJP:djp I