Report to the School Board Lease Renewal between Hopkins Public Schools and JMM Properties LLC, 2012-2015 January 19, 2012 Report Prepared by Katie Williams and Mark Etzell Overview The Facility Use office has negotiated a three-year lease renewal agreement with JMM Properties LLC, for the use of spaces located at 915 Main Street, Hopkins, MN. The leased spaces are used for the ResourceWest and Teens Alone programs and offices. The lease will commence on February 1, 2012 and end on January 31, 2015. Primary Issues to Consider Acceptance of the negotiated terms of the proposed three (3) year lease. Lease cost increase at a rate of 0.0007% year one, 0.0037 year two, and 0.0029 year three. Supporting Documents 1. Three-year Lease Agreement between JMM Properties LLC, and Hopkins Public Schools. Excellence. Every School. Every Student. Every Day.
LEASE AGREEMENT PARTIES PREMISES hereby lease, premises, State of THIS LEASE, made this 1st day of February 2012, between JMM PROPERTIES, LLC, hereinafter called LESSOR and Hopkins School District No.270, hereinafter called LESSEE. The LESSOR, in consideration of the covenants, conditions, agreements and stipulations hereinafter expressed, does demise and let to the LESSEE the following described situated in the City of Hopkins, County of Hennepin, and Minnesota, known and described as follows: Store premises at 915 Main Street, Hopkins, Minnesota 55343, consisting of Main Floor, Suites- #101, #102, #103 and Lower Level Suite #107. TERM & USE To have and to hold the same for a term of three years from the 1st day of February 2012. Such premises to be used by the LESSEE for the following purposes: General Program use for Resource West, Teens Alone and other units approved by the LESSEE who will share facilities and space and all other purposes incidental to Program use that are legal and proper. RENTAL LESSOR In consideration of the premises, the LESSEE agrees to pay a monthly rental of: 1st Year 2/1/2012-1/31/2013 $6,815.00 2nd Year 2/1/2013-1/31/2014 $6,840.00 3rd Year 2/1/2014-1/31/2015 $6,865.00 Commencing February 1, 2012, LESSOR agrees to pay proportionate share of heat, air conditioning CAM charges (CAM charges include Real Estate Taxes and Assessments, Insurance, Utilities, Dumpster, Maintenance, and Miscellaneous items necessary/incurred) for the lease period which will paid directly by LESSOR on a timely basis throughout the lease term. LESSEE has opted to
contract their janitorial services directly rather than through LESSOR. These services will also be paid by LESSOR. REAL ESTATE TAXES SIGNAGE INSURANCE BILLING MAINTENANCE Commencing February 1, 2012, LESSOR will pay all of the premises real estate taxes and installments of special assessments that are due and payable in the year 2012 and subsequent years of this lease or any extension thereof. Real Estate taxes will be paid directly by LESSOR in a timely manner. The LESSEE has the right to use 30% of the existing sign space on the front and rear of the building. All signs must comply with the guidelines negotiated with the City of Hopkins and the LESSOR. Lessee's sign insert is at Lessee's expense. The LESSEE shall provide for its own public liability insurance and insurance for its property on said premises. The LESSEE agrees to furnish a certificate of insurance to LESSOR and name the LESSOR as an additional insured party. The LESSEE agrees to pay all of the premises property insurance of the LESSOR and shall be paid directly by LESSEE in a timely manner. All CAM charges paid by the LESSOR are estimated and included in the monthly rent. LESSOR and LESSEE agree that this estimate will be evaluated on four-month intervals, May 1 st, September 1 st and January 1 st. In the event that there is a surplus LESSOR agrees to pay LESSEE the difference. In the event of a shortage LESSEE agrees to pay LESSOR the difference. (CAM charges are estimated at $3,345.00 Per Month). The LESSOR agrees to maintain the roof and external structure of the building. The LESSOR agrees to replace and maintain all mechanical systems including toilets and electrical. The LESSEE agrees to maintain all interior areas including replacement of bulbs and florescent tubes, plumbing, if located within the premises, and trash removal to dumpster on site. LESSEE wishes to clean common
areas themselves. Maintenance expenses will be paid directly by LESSOR in a timely manner. QUIET ENJOYMENT ALTERATIONS & SURRENDER OF PREMISES FIXTURES & PERSONAL PROPERTY UTILITIES The LESSOR covenants that he is lawfully seized of the premises hereby demised and has good right and lawful authority to enter into this lease for the full term aforesaid, the LESSOR will put the LESSEE in actual possession of the hereby demised premises at the beginning of the term aforesaid, and that LESSEE, on paying the said rent and performing the covenants herein agrees by it to be performed, shall and may peaceably and quietly have, hold, and enjoy the demised premises for the said term. The LESSEE will make no structural or major change to the premises without first obtaining LESSOR'S consent, nor will it in any manner deface or injure said premises or any part thereof, normal wear and tear excepted. Any trade fixtures, equipment and other property installed in or attached to the demised premises by or at the expense of the LESSEE shall remain the property of the LESSEE and the LESSOR agrees that the LESSEE shall have the right at any time and from time to time to remove any and all of its trade fixtures, equipment and other which it may have stored upon or affixed to the demised premises; provided however, that in the event of such removal LESSEE shall restore the premises to substantially the same condition in which the premises were at the time LESSEE took possession. The LESSOR agrees to sign and pay for electrical service for lighting and wall outlets, for the premises in its entirety. Charges for other utilities including heat, electricity, and water and sewer will be paid directly be LESSOR in a timely manner. ASSIGNING & SUBLETTING The LESSEE herein has the right to sublet a portion of the leased premises to other tenants that complement or parallel the usage of the property with the consent of LESSOR, and
such consent shall not be unreasonably withheld. FIRE The parties hereto mutually agree that if the demised premises are partially or totally destroyed or damaged by fire or other hazard, then LESSOR shall repair and restore the demised premises as soon as is reasonably practicable to substantially the same condition in which the demised premises were before such damage. Provided, however, that in the event the demised premises are completely destroyed or so badly damaged as not to be usable by the LESSEE for the purposes herein provided, then this lease shall be terminated by either party hereto by serving written notice upon the other; and provided, further, that in any event if repairs have not been commenced within thirty (30) days from the date of said damage and thereafter completed within a reasonable time, in no case to exceed three (3) months, this lease may be immediately terminated by the LESSEE by serving written notice upon the LESSOR. In the event the demised premises are completely destroyed or so damaged by fire or other hazard that it cannot reasonably be used by the LESSEE for the purposes herein provided, and this lease is not terminated as above provided, then there shall be a total abatement of rent until said premises are made usable. In the event the premises are partially destroyed or damaged by fire or other hazard to that it can only be partially used by the LESSEE for the purposes herein provided, then there shall be a partial abatement in the rent corresponding to the time and extent to which said premises cannot be used by the LESSEE. The parties agree that any taking by public authority shall be treated as destruction or damage by fire for purposes of this lease. The LESSOR and LESSEE each hereby release the other from any and all liability or responsibility for any loss, injury or damage to the premises, its contents, or any third party caused by fire or any other casualty or accident during
the term of this agreement, even if such fire, casualty or accident may have been caused by the negligence of the other party of one for whom such party may be responsible. LESSEE'S DEFAULT NOTICES If the LESSEE shall make default in any covenant or agreement to be performed by it and if after written notice from LESSOR to LESSEE, such default shall continue for a period of ten (10) days or if the leasehold interest of the LESSEE shall be taken on execution or other process of law or if the LESSEE shall petition to be or be declared bankrupt or insolvent according to law, then, and in any of said cases, the LESSOR may immediately or at any time thereafter, without further notice or demand, enter into and upon said premises or any part thereof and take absolute possession of the same fully and absolutely without such reentry automatically working a forfeiture of the rents to be paid and the covenants to be performed by the LESSEE for the full term of this lease and at the LESSOR'S election; LESSOR may either lease or sublet such premises or any part thereof on such terms and conditions and for such rents and for such time as the LESSOR may reasonably elect and after crediting the rent actually collected by the LESSOR from such subletting on the rentals stipulated to be paid under this lease by the LESSEE, collect from the LESSEE any balance remaining due on the rent reserved under this lease, or LESSOR may declare this lease forfeited and may take full and absolute possession of said premises free from any subsequent rights or obligations of the LESSEE. Wherever in this lease it shall be required or permitted that notice or demand be given or served by either part to this lease to or on the other, such notice or demand shall be given or served and shall not be deemed to have been given or served unless in writing and forwarded by mail addresses as follows:
To the LESSOR at: JMM PROPERTIES, LLC 901 Fourth Street North Hopkins, MN 55343 To the LESSEE at: Hopkins School District No. 270 1001 Highway # 7 Hopkins, MN 55305 Such addresses may be changed from time to time by either party by serving notices as provided. OBLIGATIONS OF SUCCESSORS The LESSOR and the LESSEE agree that all the provisions hereof are to be construed as covenants and agreements as though the words imparting such covenants and agreements were used in each separate paragraph hereof and that all the provisions hereof shall bind and inure to the benefit of the parties hereto, their respective heirs, legal representatives, successors and assigns. IN WITNESS WHEREOF, the LESSOR and LESSEE have used their respective names to be subscribed to this lease, the execution and delivery thereof having been duly authorized. LESSOR: JMM PROPERTIES, LLC By Thomas H. Mason DATE: LESSEE: HOPKINS SCHOOL DISTRICT NO. 270 By School Board of Education DATE: