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D-4. Approve Lease Assignment For Old Village Hall0 CITY OF CHANHASSEN 7700 Market Boulevard PO Box 147 Chanhassen, MN 55317 Administration Phone: 952.227.1100 Fax: 952.227.1110 Building Inspections Phone: 952.227.1180 Fax: 952.227.1190 Engineering Phone: 952.227.1160 Fax: 952.227.1170 Finance Phone: 952.227.1140 Fax: 952.227.1110 Park & Recreation Phone: 952.227.1120 Fax: 952.227.1110 Recreation Center 2310 Coulter Boulevard Phone: 952.227.1400 Fax: 952.227.1404 Planning & Natural Resources Phone: 952.227.1130 Fax: 952.227.1110 Public Works 7901 Park Place Phone: 952.227.1300 Fax: 952.227.1310 Senior Center Phone: 952.227.1125 Fax: 952.227.1110 Website www.ci.chanhassen.mn.us MEMORANDUM TO: Todd Gerhardt, City Manager FROM: Chelsea Petersen, Assistant City Manager DATE: February 22, 2016 0 k5/ RE: Old Village Hall Lease PROPOSED MOTION "The City Council adopts the resolution approving the assignment of the current lease agreement with Distinctive Ventures, LLC for the Old Village Hall property to Seattle Sutton's Healthy Eating, LLC." Approval requires a simple majority vote of the council. BACKGROUND Under Distinctive Ventures, LLC, Mr. Tim Dale has been operating a franchise of Seattle Sutton's Healthy Eating out of Chanhassen's Old Village Hall since 2007. Mr. Dale recently sold this franchise location, along with his locations in Savage and Bloomington, to Seattle Sutton's Heathy Eating South Metro, LLC, which is operated by Ms. Tracy Haelterman. Ms. Haelterman owned five franchises previously and with the purchase of all of Mr. Dale's locations now owns and operates a total of eight Seattle Sutton's Healthy Eating locations in the metro. Seattle Sutton's Healthy Eating (www.seattlesutton.com) offers freshly prepared, pre- packaged meals. Meals are delivered to the franchise locations, fully prepared and sealed, twice a week. The meals are then picked up by the customer. In the past Mr. Dale has had the Old Village Hall location open on Mondays and Thursdays from 3:00 p.m. to 7:00 p.m. Ms. Haelterman plans to keep this same schedule. Highlights of the lease agreement are as follows: • Term of the lease is for five years, beginning January 1, 2012 and ending December 31, 2016. • The annual rent is $5,400 ($450 per month) or $9.81/sq. ft. • Tenant shall pay all utilities, taxes, and snow removal charges associated with the property. • The lease authorizes the building to be used as a retail outlet for the sale and distribution of prepared meals. No food preparation or service will be allowed under this lease. • Either party can terminate the lease at any time with 90 days written notice. • The tenant may not sublease the property without consent of the City. • While the City provides insurance for the property, the tenant shall also carry general liability insurance naming the City as an additional insured. Chanhassen is a Community for Life - Providing for Today and Planning for Tomorrow Todd Gerhardt Old Village Lease Assignment February 22, 2016 Page 2 References from other current landlords were provided by Ms. Haelterman per staff request. Staff has been able to contact three of the four references provided and all have spoken highly of Ms. Haelterman and her business operations. RECOMMENDATION Staff recommends that the City Council approve the attached resolution assigning the current lease agreement with Distinctive Ventures, LLC for the Old Village Hall property to Seattle Sutton's Healthy Eating, LLC. Approval of this item requires a simple majority of the City Council. ATTACHMENTS 1. Resolution. 2. Lease Agreement. g:\admin\cp\old village hall\lease assignment to sshe south metro staff report.docx CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: February 22, 2016 RESOLUTION NO: 2016 - MOTION BY: SECONDED BY: RESOLUTION APPROVING ASSIGNMENT OF LEASE WHEREAS, Distinctive Ventures, Inc., a Minnesota corporation, ("Distinctive Ventures") entered into a lease agreement with the City of Chanhassen ("City") dated December 12, 2011 ("Lease Agreement") to lease a portion of a building owned by the City commonly known as Old Town Hall located at 391 West 78th Street, Chanhassen Minnesota 55317 ("Premises"), where Distinctive Ventures operated a Seattle Sutton Healthy Eating business; WHEREAS, the term of the Lease Agreement ends on December 31, 2016; WHEREAS, Distinctive Ventures entered into an Asset Purchase Agreement with Seattle Sutton's Healthy Eating South Metro, LLC, a Minnesota limited liability company ("SSHE South Metro") dated January 22, 2016 ("Asset Purchase Agreement") whereby Distinctive Ventures agreed to convey its business located at the Premises together with its business operations located in Savage and West Bloomington to SSHE South Metro effective January 22, 2016; WHEREAS, the terms of the Asset Purchase Agreement included an assignment of the Lease Agreement; WHEREAS, the Lease Agreement requires approval of Distinctive Ventures' assignment of the lease by the City; WHEREAS, SSHE South Metro has provided the certificate of insurance required under the Lease Agreement; WHEREAS, the shareholders of SSHE South Metro successfully operate seven additional Seattle Sutton businesses in the metro area; WHEREAS, staff has reviewed SSHE South Metro's request and has reviewed the documents provided by SSHE South Metro; WHEREAS, staff recommends approval of the assignment. 185673v1 NOW, THEREFORE, BE IT HEREBY RESOLVED BY THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA, that the assignment of the Lease Agreement by Distinctive Ventures to SSHE South Metro is hereby approved. Passed and adopted by the Chanhassen City Council this 22nd day of February, 2016. ATTEST: Todd Gerhardt, City Manager Denny Laufenburger, Mayor YES NO ABSENT gAadmin\•eso1\2016\seatt1e sutton lease.docx 185673vl RECEIVED VIS* � �f �� MAR 1 201Z LEASE AGREEMENT 0CITY (IF CHp!lIHASSEN THIS LEASE AGREEMENT is made as of the 12th day of December, 2011, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("Landlord"), and Distinctive Ventures, Inc., a Minnesota corporation, whose address is 6001 Egan Drive, Suite 170, Savage, MN 55378 ("Tenant"). THE PARTIES AGREE AS FOLLOWS: 1. LEASED PREMISES. Subject to the terms and conditions of this Lease, 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 platted as Outlot B, OLD VILLAGE HALL, Carver County, Minnesota, as shown on Exhibit A attached hereto (the "Leased Premises") 2. TERM. Tenant takes the Leased Premise from Landlord, upon the terms and conditions herein contained, to have and to hold for the term, hereinafter referred to as the "Lease Term" of one (1) year, commencing on the 1" day of January, 2012 and ending five years later on December 31, 2016, unless sooner terminated or extended as herein provided. 3. BASE RENT. Tenant agrees, during the Lease Term, to pay Landlord rent at the annual rate of Five Thousand Four Hundred and No/100 Dollars ($5,400.00), payable in either a lump sum of this amount on or before the first day of the lease, or payable in equal monthly installments of Four Hundred Fifty and No/100 Dollars ($450.00) on or before the first day of each calendar month during the term hereof. All payments shall be made at the office of the Landlord at 7700 Market Boulevard, Post Office Box 147, Chanhassen, Minnesota 55317, or to such other place or address as Landlord may from time to time designate by written notice to Tenant. 4. ADDITIONAL RENT AND TAXES. In addition to the Base Rent, Tenant shall pay, as additional rent and taxes, monthly estimated property taxes and operating expenses, if any, incurred with respect to the Leased Premises during the term of this Lease. Landlord shall deliver to Tenant a projected statement in writing setting forth any such additional expenses incurred each month with respect to the Leased Premises, and payment of such additional expenses shall be made by Tenant within thirty (30) days following receipt of such statement. Any additional rent expenses will include all real estate taxes and assessments, special or otherwise, levied or assessed upon or with respect GAAdmin\LH\Old Village Hall\Distinctive Ventures LLC Lease 12-16.doe to the Leased Premises, and any and all governmental charges, general and special, ordinary and extraordinary, foreseen as well as unforeseen, of any kind and nature whatsoever that are attributable to any period of time during the term of this Lease. In the event the Lease Term expires or is terminated prior to the date upon which the property taxes are due and payable, Tenant shall remain liable for Tenant's proportionate share of said property taxes provided herein. 5. SECURITY DEPOSIT. Tenant concurrently with its execution of this Lease shall deposit with Landlord a Security Deposit of $450.00 to be held to guarantee the faithful performance by Tenant of all of its obligations under this Lease. The Landlord is not required to hold the deposit in a segregated account. Any interest earned thereon shall be the property of the Landlord. If Tenant defaults with respect to any provision of this Lease, Landlord may, but is not obligated to, use the whole or any part of the Security Deposit to cure such default. If any portion or all of the Security Deposit is so used, Tenant shall, within five (5) days after demand therefore, deposit cash with Landlord in an amount sufficient to restore the Security Deposit to its original amount and failure to do so shall be a breach of this Lease. If Tenant shall not default under this Lease, the Security Deposit shall be returned to Tenant at the end of the Term; provided that Landlord may retain the Security Deposit until such time as all amounts due from Tenant hereunder have been paid in full. 6. SURRENDER OF POSSESSION. Notwithstanding anything in this Lease to the contrary, each party may terminate this Lease upon ninety (90) days written notice to the other party. Tenant agrees that, subject to Tenant's option to renew, at the expiration of the term of this Lease, Tenant will yield up possession of the Leased Premises to the Landlord, in as good order and 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 Leased Premises. Landlord agrees to accept all Tenant improvements not removed in an "as -is" "where -is" condition. If Tenant has prepaid rent and Landlord terminates this lease in accordance with this section, rental payments for any months left outstanding under this Lease will be refunded to Tenant by Landlord on a pro -rata basis. 7. EASEMENT AND PARKING. Tenant shall have the benefit of a nonexclusive easement for the ingress and egress by vehicular and pedestrian traffic, but not parking, G:\Admin\LH\Old Village Hall\Distinctive Ventures LLC Lease 12-16.doc upon, over and across the parking areas, driveways, curb cuts and sidewalks (collectively "Parking and Access Facilities") from time to time located on Lot 1, Block 1, OLD VILLAGE HALL ADDITION. No fence or other barrier which would prevent or obstruct the passage of a pedestrian or vehicular travel shall be erected within or across the Parking and Access Facilities. Tenant shall have the benefit of an exclusive easement for motor vehicle parking upon, over and across the four (4) parking spaces located on the Parking and Access Facilities and identified by cross -hatch markings on Exhibit A ("Tenant Parking"). 8. LEASEHOLD IMPROVEMENTS. Any additional improvements, specified by the Tenant and agreed by the parties, shall be constructed by or cause to be constructed by the Tenant and Tenant's sole cost and expense, with no right of reimbursement from Landlord. Tenant, or his contractors or agents, shall complete construction of any and all improvements in a good and workmanlike manner, utilizing new and first grade material, in conformity with all applicable federal, state, and local laws, ordinances, rules, regulations, building codes, fire regulations, and applicable insurance requirements. 9. USE. Tenant will use and occupy the Leased Premises solely as a health food and related products distributor and for no other purpose without the express prior written consent of Landlord. Tenant shall not overload, damage, or deface the Leased Premises. The following uses of the Leased Premises are expressly prohibited: the sale of liquor, on and off sale; convenience store; auto service center; restaurant or fast food establishment. No part of the Leased Premises shall be used for any purpose that is illegal, immoral, offensive, termed extra hazardous by insurance companies, or which may make void or voidable any fire insurance on the building or which may increase the premium therefore. Tenant hereby accepts the Leased 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 Leased Premises, for maintenance of Tenant's identification sign. 10. UTILITIES. Tenant shall pay for all utilities associated with operating the Leased Premises, including but not limited to gas, electricity, water and sewer, telephone service, and refuse service during the term of this Lease. In addition, Tenant shall pay, within thirty (30) days of being invoiced, for parking lot maintenance and snow removal services provided by the owner of the Leased Premises. Landlord does not warrant that any of the services referred to above will be free from interruption, and any interruption G:\Admin\LH\Old Village liall\Distinctive Ventures LLC Lease 12-16.doc of these services shall never be deemed an eviction or disturbance of Tenant's use and possession of the Leased Premises, or render Landlord liable to Tenant for any damages, consequential or otherwise, by abatement of rent or otherwise, or relieve Tenant from performance of Tenant's obligations under this Lease. 11. REPAIRS. Tenant will, at Tenant's own expense, keep the interior of the Leased Premises, including all window glass, in the same order, repair and condition at all times during the term as when Tenant takes possession of the Leased Premises, and Tenant shall promptly and adequately repair all damages to the interior of the Leased Premises and repair or replace all broken glass or damaged fixtures or appurtenances, subject to the approval of the Landlord. If the Tenant does not do so, Landlord may, at its option, make such repairs and replacements, and Tenant shall pay Landlord the cost thereof. Landlord may, but shall not be required to, enter the Leased Premises at all reasonable times to make such repairs, alterations, improvements and additions to the Leased Premises or to any equipment located in the Leased Premises as Landlord shall desire or deem necessary or as Landlord may be required. to do by governmental or quasi -governmental authority or court order or decree. 12. ADDITIONS AND ALTERATIONS. Tenant shall not, without the prior written consent of Landlord, make any alterations, improvements or additions to the Leased Premises. The work necessary to make any alterations, improvements or additions to the Leased Premises shall be done at Tenant's expense by employees of or contractors hired by Landlord except to the extent Landlord gives its prior written consent to Tenant's hiring contractors. Tenant shall promptly pay to Landlord or the Tenant's contractors, as the case may be, when due the cost of all such work and of all repairs to the building required by reason thereof. Upon completion of such work, Tenant shall deliver to Landlord, if payment is made directly to contractors, evidence of payment, contractor's affidavits and full and final waivers of all liens for labor, services or materials. Tenant shall defend and hold Landlord harmless from all costs, damages, liens and expenses related to such work. All alterations, improvements and additions to the Leased Premises, whether temporary or permanent in character, made or paid for by Landlord or Tenant shall without compensation to Tenant become Landlord's property at the termination of this Lease by lapse of time or otherwise and shall, unless Landlord requests their removal, be relinquished to Landlord in good condition, with ordinary wear and tear accepted. G:\Admin\LH\Old Village Hall\Distinctive Ventures LLC Lease 12-16.doc 13. LANDLORD'S PROPERTY; TENANT'S PROPERTY. Tenant acknowledges hereby that all improvements affixed to the Leased Premises; and all fixtures, including but not limited to, heating, and air-conditioning equipment, plumbing and electrical pipes, wiring, connections and fittings, which are necessary to the mechanical, plumbing and electrical operation and maintenance of the Leased Premises, and all leasehold improvements installed by 'Tenant shall become immediately and remain the property of the Landlord, without compensation to Tenant, whether owned by Landlord at the commencement of the term, subsequently purchased or constructed by Landlord, or purchased or constructed by Tenant in accordance with any of Tenant's obligations under the terms of this Lease. Except as provided above, all furniture, trade fixtures, power poles, flexible under carpet wiring, movable fixtures, including temporary partitions, equipment, and other movable personal property put in at the expense of Tenant, shall be and remain the property of Tenant, and may :be removed by Tenant at any time. All of Tenant's equipment and personal property used in the operation of his business shall remain the property of the Tenant. All the property removable pursuant to this paragraph shall be removed on or before the last day of the Lease Term hereof, or upon the earlier termination of the Lease Term, and all property not so removed shall be deemed abandoned by Tenant to Landlord. To the extent Tenant's property is removed pursuant to this paragraph, Tenant at Tenant's cost and expense shall repair any damage done to the Leased Premises by such removal. If Tenant chooses not to remove his property, Landlord may require Tenant, at Tenant's cost and expense, to remove his property. 14. COVENANT AGAINST LIENS. Tenant covenants and agrees not to suffer or permit any lien of mechanics or materialmen or others to be placed against the Leased Premises with respect to work or services claimed to have been performed or materials claimed to have been furnished to Tenant or the Leased Premises, and, in case of any such lien attaching or notice of any lien, Tenant covenants and agrees to cause it to be immediately released and removed of record. In the event that such lien is not immediately released and removed, Landlord, at its sole option, may take all action necessary to release and remove such lien, without any duty to investigate the validity thereof, and Tenant shall promptly, upon notice, reimburse Landlord for all sums, costs and expenses, including reasonable attorney's fees, incurred by Landlord in connection with such lien. GAAdmin\LH\Old Village Hall\Distinctive Ventures LLC Lease 12-16.doc 15. ACCEPTANCE OF LEASED PREMISES. The taking possession of the Leased Premises by Tenant shall constitute an acknowledgment by Tenant that the Leased Premises were delivered to Tenant in good repair, in good, clean and tenantable condition and shall be conclusive evidence that the Leased Premises are in the condition called for by this Lease and that Landlord has performed all work with respect thereto. 16. HOLDING OVER. If Tenant remains in possession of the Leased Premises after the expiration of the term of this lease, and without the execution of a new written lease, or a written extension agreement, Tenant shall be deemed to be occupying the Leased Premises as Tenant from month to month, terminable on thirty (30) days' notice given by either party to the other, at a monthly rental equal to One Hundred Fifty (150%) percent of the monthly and additional rent payable during the last preceding full calendar month of this lease, and otherwise subject to all the conditions and obligations of this lease insofar as applicable to a month to month tenancy. Tenant shall not interpose any counterclaim or counterclaims in a summary proceeding or his action based on holdover. 17. TENANT'S CARE OF LEASED PREMISES. Tenant shall keep the Leased Premises .in .a neat, clean, orderly and sanitary condition and shall not commit any nuisance or waste on the Leased Premises. 18. CERTAIN RIGHTS RESERVED BY LANDLORD. Landlord reserves the following rights exercisable without notice and without liability to Tenant and without affecting an eviction, constructive or actual, or disturbance of Tenant's use or possession, or giving rise to any claim for setoff of abatement of rent: (A) To retain at all times and to use in appropriate instances keys to all doors within and into the Leased Premises. No locks shall be changed without the prior written consent of Landlord. This provision shall not apply to Tenant's safe, or other areas maintained by Tenant for the safety and security of monies, securities, negotiable instruments or like items. Provided Landlord shall not enter the Leased Premises without giving Tenant reasonable notice except in the event of an emergency. (B) To make repairs, alterations, additions, or improvements, whether structural or otherwise, in and about the Leased Premises or any part thereof, and for such purpose to enter upon the Leased Premises and during the continuation of any of said work, to temporarily close doors, entry ways, and other spaces in the GAAdmin\LH\01d Village Hall\Distinctive Ventures LLC Lease 12-16.doc Leased Premises. Landlord agrees that it shall use its best efforts not to interfere with the operation of Tenant's business. (C)No coin operated vending or dispensing machines of any kind shall be placed anywhere along the exterior of the Leased Premises without the prior written consent of Landlord. (D) No intoxicating liquors shall be sold in the Leased Premises. 19. RULES AND REGULATIONS. Tenant shall use the Leased Premises in accordance with such rules and regulations as may, from time to time, be made by the Landlord, and shall cause Tenant's customers, employees, and invitees to abide by such rules and regulations. 20. ASSIGNMENT AND SUBLETTING. Tenant shall not assign this Lease nor sublet all or any portion of the Leased Premises nor permit any other person, either jointly with Tenant or otherwise, to occupy the Leased Premises or any part thereof without first obtaining on each occasion the written consent of Landlord which consent shall not be unreasonably withheld. Neither this Lease nor any interest therein nor any estate created thereby, shall pass to any trustee or receiver in bankruptcy, or any assignee for the benefit of creditors, or by operation of law. 21. INSURANCE. Without limiting Tenant's liability under this Lease, 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. Without limiting Tenant's liability under this Lease, Tenant at Tenant's expense shall provide and keep in force during the term of this Lease, with an insurance company licensed to do business in the State of Minnesota, the following insurance: (A) Such fire insurance as Tenant shall deem necessary or desirable covering Tenant's stock in trade, fixtures, furniture, files, documents, computers, equipment, signs and all other installations, improvements, and betterments made by or for Tenant, on or about the Leased Premises which insurance shall provide for allowance of complete waiver of subrogation. (B) Comprehensive general liability insurance naming Landlord as an additional insured, which insurance shall protect Landlord and Tenant from liability with respect to accidents occurring on or about the Leased Premises and any adjoining property and facilities or arising out of the use thereof in a single limit liability policy of not less than One Million and No/100 ($1,000,000.00) G:\Admin\LH\Old Village Hall\Distinctive Ventures LLC Lease 12-16.doc Dollars and including fire legal liability, or such other policy for which Tenant obtains Landlord's written approval. Such policy limits shall not limit Tenant's liability hereunder. Said insurance requirements pursuant to the provisions of this paragraph shall provide for at least thirty (30) days' notice to Landlord before cancellation, termination, non -renewal or change of such insurance. Evidence of said insurance, and any renewals thereof, shall be delivered to Landlord, upon Landlord's request. Tenant shall not make any use of the Leased Premises that will in any way impair or invalidate the obligation of any policy of insurance carried by Landlord or which will increase the premiums payable by Landlord for such insurance. If any such insurance coverage is jeopardized or insurance premiums are increased as a result of Tenant's activities, Landlord shall have the option either to terminate this Lease or to require Tenant to make immediate payment of the increased insurance premium. 22. INDEMNIFICATION. To the extent permitted by law and excepting incidents in the event of negligence on behalf of the Landlord, Tenant agrees to indemnify and to hold Landlord, its agents, servants and employees harmless from and waives all claims for any damage either to person or property or resulting from the loss of use thereof sustained by Tenant or by other persons claiming through Tenant due to the Leased Premises or any part thereof of any appurtenances thereof becoming out of repair, or due to any accident or event in or about the Leased Premises or of any other person. This provision shall apply particularly, but not exclusively, to damage caused by gas, electricity, snow, frost, sewage, sewer gas or odors, fire, water or by the bursting or leaking of pipes, faucets, sprinklers, plumbing fixtures and windows, and shall apply without distinction as to the person whose act or neglect was responsible for the damage and whether the damage was due to any of the causes specifically enumerated above or to some other cause of an entirely different kind. Tenant further agrees that all personal property upon the Leased Premises shall be at the risk of Tenant only, and that Landlord shall not be liable for any loss or damaged thereto or theft thereof. Tenant agrees to defend, protect, indemnify and hold Landlord harmless from and against all liability to third parties arising out of the acts of Tenant and his servants, agents, employees, contractors, suppliers, workmen and invitees. 23. SUBROGATION. Notwithstanding anything in this Lease to the contrary, if the Leased Premises is damaged or destroyed by fire or an extended coverage risk, the Tenant, his agents, employees, representatives and invitees are hereby released from O:\Admin\LH\Old Village HallUstinctive Ventures LLC Lease 12-16.doc liability by reason thereof to the extent of insurance proceeds realized by the Landlord as a result of such damage or destruction. 24. EMINENT DOMAIN. If the Leased Premises is taken by eminent domain, this Lease shall automatically terminate as of the date of taking. 25. SALE BY LESSOR. Landlord shall have the right to sell or transfer the Leased Premises, or any portion thereof subject to all provisions of this Lease. In the event of the sale of the Leased Premises, Landlord shall be and hereby is relieved of all of the covenants and obligations created hereby other than obligations arising for the period prior to the date of sale. Such sale shall result automatically in the purchaser assuming and agreeing to carry out all the covenants and obligations of Landlord herein. 26. TITLE AND QUIET POSSESSION. Landlord represents and warrants that it has full right and authority to enter into this Lease, and that upon making the rental payments provided for herein, and upon performing the covenants and agreements of this Lease to be performed by Tenant, Tenant will have, hold, and enjoy the quiet possession of the Leased Premises. 27. NOTICES. Any bill, statement, notice, or communication which Landlord desires, or is required, to give to Tenant, including any notice of termination, shall be deemed sufficiently given or rendered if in writing, delivered to Tenant personally, or sent by registered or certified mail, addressed to Tenant at the Leased Premises and the time of rendition or giving shall be deemed to be at the time when the same is delivered to Tenant, or mailed or left at the Leased Premises, as herein provided. Any notice by Tenant to Landlord must be served by registered or certified mail addressed to Landlord at 7700 Market Boulevard, P.O. Box 147, Chanhassen, Minnesota, 55317 or, upon written notice given to Tenant, at such other place as Landlord designates. 28. DEFAULT OF TENANT. If Tenant shall default in the payment of any installment of rent, or in the observance or performance of any of the Tenant's other covenants, agreements, or obligations hereunder, or if any proceeding is commenced by or against the Tenant for the purpose of subjecting the assets of the Tenant to any law relating to bankruptcy or insolvency or for an appointment of a receiver of the Tenant or of any of the Tenant's assets, or if Tenant makes a general assignment of Tenant's assets for the benefit of creditors, then, in any such event, the Landlord may, without process, G:\Admin\LH\Old Village Hall\Distinctive Ventures LLC Lease 12-I6.doc re-enter immediately into the Leased Premises and remove all persons and property therefrom, and at its option, annul and cancel this Lease as to all future rights of the Tenant and have, regain, repossess, and enjoy the Leased Premises as in the first instance, anything herein to the contrary notwithstanding, and the Tenant hereby expressly waives the service of any notice in writing of intention to re-enter as aforesaid, and also all right of restoration to possession of the Leased Premises after re-entry or after judgment for possession thereof. In case of any such termination, Tenant will be liable for and will indemnify the Landlord against all loss of rents and other damage which Landlord may incur by reason of such termination during the residue of the Lease Term, and also against all attorney's fees and expenses incurred in enforcing any of the terms of this Lease. In the event the Lease is terminated prior to the expiration of the Lease Term, such termination being caused by Tenant's default as described above, or by an unlawful detainer action instituted by Landlord against Tenant, Tenant shall be liable for and shall indemnify Landlord for the cost of all leasehold improvements provided at Landlord's cost and expense for the benefit of Tenant, as well as the cost of returning the Leased Premises to its original condition prior to the construction of any such leasehold improvements, additions, or alterations. All .rights and remedies of Landlord hereunder shall not be exclusive but shall be cumulative. 29. DEFAULT OF LANDLORD. Landlord shall not be deemed to be in default under this Lease until Tenant has given Landlord written notice specifying the nature of the default and Landlord does not cure such default within thirty (30) days after receipt of such notice of within such reasonable time thereafter as may be necessary to cure such default where such default is of such a character as to reasonably require more than thirty (30) days to cure. 30. WAIVER OF COVENANTS. Failure of Landlord to insist, in any one or more instances, upon strict performance of any term, covenant, condition, or option of this Lease, or to exercise any option herein contained, shall not be construed as a waiver, or a relinquishment for the future, of such term, covenant, condition, or option, but the same shall continue and remain in full force and effect. The receipt by Landlord of rents with knowledge of breach in any of the terms, covenants, conditions, or options, of any of this Lease to be kept or performed by Tenant shall not be deemed a waiver of such breach, and Landlord, shall not be deemed to have waived any provision of this Lease unless expressed in writing and signed by Landlord. GAAdmin\LH\Old Village HalMistinctive Ventures LLC Lease 12-16.doc 31. GENERAL. There are no understandings or agreements not incorporated in this Lease. This is a Minnesota contract and shall be construed according to the laws of the State of Minnesota. The captions in this Lease are for convenience only and are not a part of this Lease. The covenants and agreements hereof shall as fully and completely bind the heirs, executors, administrators, legal representatives, successors, and assigns of the parties hereto as if they had been specifically mentioned in each of said covenants and agreements. IN WITNESS WHEREOF, the parties have hereunto set their hands the day and year first above written. TENANT: DISTINCTIVE VENTURES INC. By: Its President LANDLORD: CITY OF CHANHASSEN By: 6 4—Z Th m;as Furlon Ma And: �. Todd Gerhardt, City Manager This instrument was drafted by: CAMPBELL KNUTSON, P.A. [CRM] 1380 Corporate Center Curve, Suite 317 Eagan, MN 55121 (651) 452-5000 G:\Admin\LH\Old Village Ha1RDistinctive Ventures LLC Lease 12-16.doc