3b. Old Village Hall, Approval of Lease with Seattle Sutton
CITY OF
CHANHASSEN
7700 Market Boulevard
PO Box 147
Chanhassen, MN 55317
Administration
Phone: 952,2271100
Fax: 952,227 1110
Building Inspections
Phone: 952,2271180
Fax: 952.227 1190
Engineering
Phone: 952,2271160
Fax: 952.227 1170
Finance
Phone: 952.2271140
Fax: 952.2271110
Park & Recreation
Phone: 952.2271120
Fax 952,2271110
Recreation Center
2310 Coulter Boulevard
Phone 952,2271400
Fax: 952,227 1404
Planning &
Natural Resources
Phone: 952.2271130
Fax 952.2271110
Public Works
1591 Park Road
Phone: 952,227 1300
Fax 952,2271310
Senior Center
Phone: 952,2271125
Fax 952.227 1110
Web Site
www.ci.chanhassen.mn.us
3b
MEMORANDUM
TO:
Todd Gerhardt, City Manager
Laurie Hokkanen, ASSIstant City Manager JJ)..
FROM:
DATE:
January 3, 2007
o~~.
RE:
Old Village Hall Lease
BACKGROUND
Since the Chanhassen Chamber of Commerce moved out of Old Village Hall
earlier this year, staff has been working to secure a tenant for the space.
Our belief is that a continuous presence in the building is the best method to
ensure that it stays in good condition.
The proposed lease is with Distinctive Ventures LLC. Under Distinctive
Ventures, Mr. Tim Dale operates franchises of Seattle Sutton's Healthy Eating.
He currently has a location in Savage, and Chanhassen will be his second
location.
Seattle Sutton's Healthy Eating (www.seattlesutton.com) offers freshly prepared,
pre-packaged meals. Meals are delivered, fully prepared and sealed, to the store
tWIce a week. The meals are then picked up by the customer. Mr. Dale currently
plans to have the store open on Mondays and Thursdays from 3:00 p.m. to 7:00
p.m.
Highlights of the lease agreement are as follows:
. Term of the lease is for one year, with the option to extend for an
additional year.
. 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. Staff estimates that the City will realize savings of
approximately $5,000.
. 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.
The lease agreement is contmgent on the approval of a rezoning of the property to
Center Business District by the City Council and approval of the accompanying
The City 01 Chanhassen . A growing community with clean lakes, quality schoots, a Charming downtown, thriving businesses, winding trails, and beautiful parks, A great place to live, work, and play,
Comp Plan amendment by the Met CouncIl. Approval of both items was recommended by the
Planning Commission on January 2,2007.
The lease wIll commence on the first on the month followmg approval of the Comp Plan
amendment by the Met Council. The lease is expected to commence between February and
April of 2007 and will be in force for the period of one year following commencement.
RECOMMENDA TION
Staff recommends that the City Council approve the attached lease agreement with Distinctive
Ventures LLC for the Old Village Hall property. Approval of this item requires a majority of the
city council.
G:\Admin\LH\Old Village Hall\Distinctive Ventures Lease Staff Report.doc
LEASE AGREEMENT
THIS LEASE AGREEMENT is made as of the _day of 2007, by and
between the CITY OF CHANHASSEN, a Minnesota mUnIcIpal corporation ("Landlord"), and
Distincl1ve 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 1st day of (February,
March or April), 2007 and ending one year later on , 2008, unless sooner
termmated or extended as herein proVIded. ThIS lease is contingent upon Tenant
receiving approval from the Minnesota Department of Agriculture. Tenant shall
immediately begin the process of obtaining said approval. If the Department of
Agriculture does not approve the Leased Premises for Tenant's business, this lease shall
be deemed null and void if the Tenant notifies the Landlord in writing by April 1st, 2007
that approval has not been obtained."
3. BASE RENT. Tenant agrees, during the Lease Term, to pay Landlord rent at the
annual rate of Five Thousand Four Hundred and No/I00 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/lOO 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.
G:\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
1
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 dunng the term of this
Lease. Landlord shall deliver to Tenant a projected statement m writmg 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
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. OPTION TO EXTEND TERM OF LEASE. Provided this Lease is in good
standing and Tenant is not in default of any provisions herein, Landlord shall grant to
Tenant the one-time option to renew the terms of this lease for one (1) year following the
expiration of the initial term of this Lease, beginning 1,2008. This Option
shall be exercIsed by the Tenant providing Landlord with written notice of his intent to
exercise this option not less than ninety (90) days pnor to the end of the initial term.
Tenant further agrees to execute any required amendments and deliver them to Landlord
not less than sixty (60) days prior to the end of the initial term.
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.
G:\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
2
7. EASEMENT AND PARKING. Tenant shall have the benefit of a nonexclusive
easement for the ingress and egress by vehIcular and pedestnan traffic, but not parking,
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 bamer 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, buildmg 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 mVOIced, for parking lot maintenance and snow removal
G:\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
3
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 mterruption, and any interruption
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 AL TERA TIONS. 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
G:\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
4
requests their removal, be relinquished to Landlord in good condition, with ordinary wear
and tear accepted.
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 winng, 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 l1me. 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 attachmg 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 invesl1gate the validity
thereof, and Tenant shall promptly, upon notice, reimburse Landlord for all sums, costs
G'\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
5
and expenses, including reasonable attorney's fees, mcurred by Landlord in connection
with such lien.
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 givmg 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, secunties, 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
G:\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
6
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
Leased Premises. Landlord agrees that it shall use its best efforts not to
mterfere 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 mtoxicatmg 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 mvitees 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 m 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 nammg 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
G:\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
7
adjoming property and facilities or arising out of the use thereof in a single
limit lIability policy of not less than One Million and No/lOO ($1,000,000.00)
Dollars and including fire legal liability, or such other polIcy for which Tenant
obtains Landlord's wntten 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 aCl1vities, Landlord shall have
the optIOn either to terminate this Lease or to require Tenant to make immediate payment
of the increased insurance premium.
22. INDEMNIFICA TION. 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 resultmg 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 m 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 kmd. 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, indemmfy 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.
G'\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
8
23. SUBROGATION. NotwIthstandmg anythmg m 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
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 arismg 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 herem.
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 herem provided. Any nol1ce 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 proceedmg is commenced by
or against the Tenant for the purpose of subjecting the assets of the Tenant to any law
G:\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
9
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,
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 mstance,
anything herein to the contrary notwithstandmg, and the Tenant hereby expressly waives
the service of any notice in writing of mtentIOn 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 mcurred in enforcing any of the terms of this
Lease.
In the event the Lease is termmated 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 origmal condition pnor 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 anyone or more
instances, upon strict performance of any term, covenant, condition, or option of this
Lease, or to exercise any option herem 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 m any of the terms, covenants, conditions, or options, of any of this
G:\Admin\LH\Old Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
10
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 wnting and sIgned by Landlord.
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
bmd the heirs, executors, admmistrators, 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, INe.
By:
Its President
LANDLORD:
CITY OF CHANHASSEN
By:
Thomas A. Furlong, Mayor
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\OJd Village Hall\Final Lease Agreement - Distinctive Ventures LLC.DOC
11
'j
Distinctive Ventures LLC
Lease Agreement
November 27th, 2006
Exhibit A