HomeMy WebLinkAbout[08b] Amendment to ISD Lease Agreement
Council Agenda Item 8b
MEETING DATE: June 4, 2018
AGENDA ITEM: Administrator Reports
Amendment to ISD Real Estate Lease
SUBMITTED BY: Administration
BOARD/COMMISSION/COMMITTEE RECOMMENDATION:
PREVIOUS COUNCIL ACTION: June 15, 2015 the City entered into a purchase agreement for Colts Academy
allowing ISD 742 to continue using a portion of the facility through 2017. The Agreement was amended on October
17, 2017 extending the lease of a portion of the facility to July 1, 2018.
BACKGROUND INFORMATION: City staff has met with representatives of ISD 742 to discuss the exit
strategy for ISD 742 as it relates to the condition of the facility and items to remain. ISD 742 has agreed to leave the
playground equipment in lieu of items such as deep cleaning of the facility and restoring the parking area to lawn.
The amendment lease agreement executed on October 17, 2018 extended the time that ISD 742 would occupy a
portion of the building and indicated that the playground equipment would be removed.
BUDGET/FISCAL IMPACT:
ATTACHMENTS: Amendment to the Amended Lease Agreement with ISD 742
REQUESTED COUNCIL ACTION: Authorize the Mayor and Administrator to execute the amendment to the
amended Real Estate Lease Agreement between the City of St. Joseph and ISD 742.
AMENDMENT TO THE REAL ESTATE PURCHASE AGREEMENT
BETWEEN INDEPENDENT SCHOOL DISTRICT #742 AND
THE CITY OF ST. JOSEPH
THIS AMENDMENT TO THE REAL ESTATE PURCHASE AGREEMENT (hereinafter referred to as
the “Agreement”) and made and entered into this day of , 2018 by and between
Independent School District #742 hereinafter referred to as the “Tenant” and the City of St. Joseph
hereinafter referred to as the “Landlord”.
RECITALS
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WHEREAS, the Tenant was the owner of the real property located at 124 1 Ave SE, known as Colts
Academy, hereinafter referred to as the “Facility”; and
WHEREAS, the Tenant and the Landlord entered into a Purchase Agreement on June 15, 2015 which
included a Commercial Lease attached as Exhibit B (the Commercial Lease hereinafter referred to as the
“Lease Agreement”). The Lease Agreement identified the term and conditions of the facility and rights of
the Tenant; and
WHEREAS, the Tenant has leased the property at no cost to allow ISD #742 Early Childhood Program to
remain at the Facility until the new Early Childhood Center was constructed or July 2017, whichever
came first; and
WHEREAS, ISD #742 has re-evaluated their building plans and expressed a desire to remain at the
Facility for an additional 12 months to allow for the construction and completion of the Early Childhood
Center; and
WHEREAS, the Landlord and Tenant executed an amendment to the Agreement extending the lease of
the property to July 1, 2018; and
WHEREAS, Tenant is preparing to vacate the Facility on July 1, 2018 as identified in the amended
agreement; and
WHEREAS, the Landlord and Tenant desire to clarify the terms/requirements for exiting the Facility by
identifying the property that remains with the facility and the expectations for the condition of the
Facility.
NOW THEREFORE, in consideration of the premises and the mutual obligations of the parties hereto,
each of them does hereby covenant and agree with the others as follows:
Section 22.21 (Playground Equipment) in the Lease Agreement shall be amended in its entirety as
follows: Tenant agrees to leave the playground equipment located on the Premises when they vacate the
Premises at the end of the Lease. In exchange for the value of the playground equipment, the Landlord
agrees to the following:
a. The Landlord will be responsible for restoration of the grassed area currently used for
overflow parking (south end of parking lot).
b. The Tenant will remove the controllers from the access control system; the door strikes
and proximity card readers will remain.
c. The Tenant will remove network equipment to include:
i. 2 ICS 6450 48 port switches non POE
ii. Edge device Model ICX7450-24
iii. 1 ICX 6450 24 port POE switch
iv. 2 networked UPSs
v. 18 Brocade 1220 wireless access points
d. The Landlord will retain the following network equipment:
i. 1 ICS 6450 48 port switches non POE
e. The Tenant will perform light cleaning to include picking up debris and vacuuming upon
vacating. Landlord will be responsible for deep cleaning.
f. The Landlord will be responsible for restoration of areas such as nail holes and ceiling
tiles.
g. The Tenant will leave all materials typically used for building repairs. These materials
include but are not limited to ceiling tiles, door hardware, boiler parts, paint, etc.
h. The Tenant will leave two auto scrubbers (currently one is located in the shed and the
other is located in the closet near the office).
IN WITNESS WHEREOF, the Landlord has caused this Amendment to be duly executed in its name and
behalf and the Tenant has caused this Amendment to be duly executed in its name and behalf on or as of
the date first written above.
ATTEST CITY OF ST JOSEPH
By By
Judy Weyrens, Administrator Rick Schultz, Mayor
INDPENDENT DISTRICT 742
By
Amy Skaalerud
Interim Executive Director of
Business Services
STATE OF MINNESOTA )
) ss
COUNTY OF STEARNS )
This instrument was acknowledged before me on , 2018 by Rick Schultz and Judy
Weyrens, the Mayor and Administrator respectively, of the City of St. Joseph, a Minnesota municipal
corporation, on behalf of said City.
NOTARIAL STAMP OR SEAL
(OR OTHER TITLE OR RANK)
SIGNATURE OF NOTARY PUBLIC
OR OTHER OFFICIAL
STATE OF MINNESOTA )
) ss
COUNTY OF STEARNS )
This instrument was acknowledged before me on , 2018 by Amy Skaalerud,
Interim Executive Director of Business Services of Independent School District 742, a public corporation
under the laws of Minnesota.
NOTARIAL STAMP OR SEAL
(OR OTHER TITLE OR RANK)
SIGNATURE OF NOTARY PUBLIC
OR OTHER OFFICIAL