HomeMy WebLinkAbout6.t. Irish Dome LLC Lease AgreementCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING: December 16,'2003
AGENDA ITEM: Irish Dome LLC Lease Agreement
AGENDA SECTION:
CONSENT AGENDA
PREPARED BY: Dan Schultz, Parks and Recreation Director
AGENM #611
ATTACHMENTS: Proposed Lease Agreement for Sports Dome
APPROVED BY
Attached is the proposed Sports Dome lease between Irish Sports Dome LLC, Independent School District 196,
and the City of Rosemount. The Department of Natural Resources has stated that because the original
LAWCON grant was awarded as a joint project, the City needed to be included in the lease. City Attorney
LeFevere has discussed this issue with the attorney form ISD 196 and they have come to an agreement on
language that does not in any way tie the City to the activities taking place on the School District's property.
This approval of this lease agreement would be conditional based on the Irish Dome LLC receiving approval of
a Conditional Use Permit from the Rosemount City Council and a building permit for the dome.
ISD 196 has included this item on their School Board meeting agenda for Monday, December 15, 2003.
RECOMMENDED ACTION: Motion to approve the lease agreement between Irish Dome LLC,
Independent School District 196 and the City of Rosemount based on Irish Dome LLC receiving approval of
a Conditional Use Permit by the Rosemount City Council and receiving a building permit for the dome.
COUNCIL ACTION:
1
LEASE
This Lease is made as of ,2003, between ISD #196, as "Landlord ", and
Irish Dome, LLC, as 'Tenant" and the City of Rosemount "City."
FIRST: TERM AND RENT
1.01 Leased Premises. Landlord hereby leases to Tenant and Tenant hereby leases
from Landlord, subject to and with the benefit of the terms and provisions of the Lease, land at
Rosemount High School of approximately 110,500 square feet hereinafter referred to as the
"Leased Premises ". The Leased Premises is more fully identified in the Attached Exhibit A.
1.02 Term and Termination. The term of the Lease shall be for twenty (20) years
commencing on 2003 and terminating, unless extended pursuant to the terms
of this Lease, on the last day of the last month of the twenty year term. Notwithstanding the
commencement date identified above, the Lease is contingent upon the approval of the Irish
Dome project by the Minnesota Department of Natural Resources and the National Park
Service. The Lease shall not become effective until that approval is obtained by the City and
the Landlord.
1.03 Rent. In lieu of cash rent, Tenant shall permit Landlord to use the Irish Dome to be
constructed on the Leased Premises between the hours of 5:30 a.m. to 7:00 a.m. and 2:00 p.m. to
5:30 p.m. Monday through Friday, on any days when school is in session pursuant to the official
school calendar of Rosemount High School. In addition to the above referenced permitted use, the
Landlord will also have use of the Irish Dome during the month of August at the beginning of the fall
athletic activities practice season based on the Minnesota State High School League start date
from 5 :30 a.m. to 5:30 p.m. Monday through Friday. Tenant shall open the Irish Dome during those
times when it is designated for use by Landlord. Tenant further agrees that it shall not rent out or
otherwise allow the Irish Dome to be used on the day annually designated by Rosemount High
School as graduation day.
The parties shall meet at least annually to discuss Landlord's usage, and determine whether
any mutually agreed adjustments in Landlord's usage times are warranted.
SECOND: USE OF PREMISES
2.01 Use of Leased Premises. The Leased Premises shall be used and occupied by
Tenant for construction and operation of a multi- purpose domed recreational facility and for all
other purposes reasonably incidental thereto. The facility to be constructed is more fully
described in Exhibit B. The facility shall be constructed on public property and shall be
operated for public recreation purposes to enhance the outdoor recreational opportunities
available on the Leased Premises in compliance with the provisions of the Land and Water
Conservation Fund Act (L &WCF), implementing guidelines and L &WCF grant agreements
applicable to the Leased Premises.
The multi - purpose domed recreational facility shall be named the Irish Dome. Tenant shall not
rename the Irish Dome without the written approval of Landlord. In the event that the Irish
Dome is renamed, all references in this Lease to the Irish Dome will apply to the renamed
facility.
- awoQ yslai ayl of 6ulpe91 s)lieM9p!s woaJ nnous 10 lenowaJ of pal!wy
sl lenouwaJ nnous col uo s,paolpue� `aanannoH •lenouaaJ nnous pue 6u!nnow `6u!deospuel
6u pnlou! aoueualulew punoa6 aoijelxa Ile ap!noid Ileus paolpue `anoge 9qj 6ulpue lsyl!NON
•paldeoxe jeal pue aeam algeuoseaj `asee eqj jo luawouawwoo
94l le paI!enaad se uoil!puoo pooh se ul 109-191-111-11513 uo!}oaS Wm aouepa000e ul awoQ gsPl aqj
pue sas!wa-ld peseal ayl aapuaaans lleus l! `esea eqj jo. uolleulwaal ao uo!; ea!dxe eqj uodn pue
`Isoo umo sl! le iiedaa pue uoil!puoo `aapio pooh ui awoQ yslal a 6ulpnioul sas !waad p
aql daa� 11egs I! aseag SMjo weal aql 6uunp leyl seei6e lueual •aoueualu!ew 60'E
S311nin aNV NOIlbM31 `33NVN31NIVW :am1H1
•sell!I!oel aleAud jeilwls
ul!m an!I!ledwoo aie leyj seal to luawAed all uodn awoQ gslal ay} Iuai ao asn ol_pamolle
aq Ileys oilgnd eqi •sd!ysaagwaw alenljd aol mole Iou llegs pue sinoq 6ullejado sl!
10 %65 Iseal le asn ollgnd col elgel!ene awoQ yslal aul a)lew !legs lueual (a
•o!Ignd eqj ol. uado Al!l!oej
leuolleaaoei a se lueuej Ag paleaado Alalenud Alp!oel eqj pue paumo Aloilgnd 6ulaq
se sas!waJd pasea ayI AAuap! llegS awoQ ysul 9qj Io 6u!silJ9npe pue'ainlejaiq se IlaM
se `96eu6!s Ild '}ueuej aul Aq 6ull!JM ui panoadde aq llegs 96eu6!s ayl -asn o!lgnd pue
asn lo!jls!p loogos paleu6lsap to smog ogpeds eqj 6ullsil pue awoQ gs!jl eqj 6u!Apjuep!
96eu6ls aoualxe aleudoidde uielu!ew pue lonilsuoo of seei6e lueuej (p
•logoole ao 000egol jo asn eqj 6ullowoad 6u!silaanpe
Aue pwied jo pollos Iueual lilts eseo ou ul - paolpue - 1 to lenoidde Inogl!m awoQ qs!jj eqj
uo Jo u! 6u!s!}Janpe Aue I!wjad Iou (legs lueue 1 •Iueue 1 of algeAed aq llegs 6u!s!laanpe
Bons Aue woaj anuanaa ayl - ulaaayl sa!I!n!Ioe tpm uollounluoo ui pue ewoa gspl
aul aplsui plos aq Aew coeds bu!sipaApe IeWI 99a6e lueue 1 pue paolpuel (o
- seuilap!nb 6ulluawaldwi sj! pue lobs pun- uolle/uesuoo aaleM
V pue eqj 6uipnloui uolleln6ai ao eIna `aoueuipao `mel `Aluogjne leluawua9no6 aaylo
jo leool `alels `lejapal algeoildde Aue }o uolleloin ui ao of Aaealuoo si goigm uo!I!puoo
jo loe Aue I!waad lou Ilegs lueual `ssau!snq s}! to lonpuoo eqj ul (q
•aauuew aadoid pue ales `Injejeo a ui awoQ
qs!j( aul pue sas!waJd paseel ayl Adn000 pue asn llegs pue asuadxe alos s,lueual
le aseal eqj jo wial eqj 6uunp sawn Ile le uolllpuoo Aylleaq pue ales `ueelo a ui
awoQ gslal ayI pue saslwaJd paseal a4l deal pue u!elu!ew Ilegs Iueual (e
•sseulsn8 s jueual }o 13npuo3 ZO - Z
•pion pue llnu awooeq Ilegs esea
a4l `sueld aql anoidde Iou seop paolpuel 11 •lenojdde ualipm s,pjolpue jol piolpueg of sueld
uo!lon.ilsuoo alaldwoo jueseid `asee sigj jo alep 9qj #o sAep 09 u!ul!m `Ilegs jueual `Appel
ayI jo uollonilsuoo 6u!ouawwoo oI 101-ld •sas!waJd pasee eqj of elgeolldde sluaweei6e luej6
=IomVI aul se llaM se sau!lap!n6 6ulluaweldw! pue (jOMV -1) lob pun j uollenaasuoo aaleM
pUe pUe aul pue sluawaa!nbei apoo 6ulppq leool `(joy sall!!!geslQ 4l!m sueo!jawy eqj `loy
uo!lel!I!geg aul to j709 uo!loaS `lod sly6!�l I!n!o ayl 10 In 9 11!1 - .6 , 9) uo!lels!6al Al!l!q!sseooe
`pue sly6u I!n!o Ile of pal!wg lou Inq `6u!pnloul `suo!leln6ai leool pue alels `lejapal luourped
Ile qI!M l ua l s!suoo jauuew a ul paleaado pue palonilsuoo s! AI!Ipej 9qj leul einsse llegs lu eual
1
t _
3.02 Utility Charges. Tenant agrees to pay for all charges for water, sewer, fuel, gas,
electricity, telephone, security and any other utility or service which are either contracted directly
by Tenant or separately metered to the Leased Premises and /or the Irish Dome including all
charges attributable to Landlord's use of the Irish Dome.
3.03 Disruption of Existing Work Tenant acknowledges that construction of the
facility may disrupt underground irrigation or other systems currently'in place. Tenant shall be
responsible for assuring that no disruption occurs to school activities. Tenant shall restore all
impacted systems, to assure their continued operation. Tenant is responsible for rework of the
in -place irrigation system in the area proposed for construction to assure it continues to operate
in a fashion that serves other Landlord needs.
3.04 Taxes, Bonds, Other Governmental Charges and Other Charges Except as
described hereunder, Landlord shall pay, as the same respectively become due, all taxes,
special assessments, and governmental charges of any kind whatsoever that may at any time
be lawfully assessed or levied against or with respect to the Leased Premises. During the term
of this Lease, taxes and assessments, if any, due on the Leased Premises due to the
construction of the Irish Dome, or any furnishings, equipment or other property installed or
brought by Tenant therein or thereon, and all claims for rent, labor, materials, supplies, utilities
and other charges incurred in the operation, maintenance, use occupancy and upkeep of the
Leased Premises, if any, shall be paid by Tenant. Prior to commencing construction of the Irish
Dome, Tenant shall obtain performance and payment bonds guaranteeing faithful performance
of the work and payment of materials and labor suppliers on the Project. The bonds shall be in
the amount of the estimated costs of the Project, and the costs of said bonds shall be paid by
the Tenant. Additionally, Tenant shall make no payments to material or labor suppliers without
obtaining release of mechanics liens and payment bond rights.
FOURTH: INSURANCE AND LIABILITY
4.01 Insurance. During the term of this Lease, Tenant shall at its expense maintain
general public liability insurance for injuries to persons and for damage to property with respect
to the Leased Premises and the business operated by Tenant covering Tenant's business
activities on the Leased Premises. Landlord shall be named as an additional insured. The limits
of public liability for such policy shall be acceptable to Landlord. All insurance policies required
to be obtained by Tenant shall be in the form and with companies approved by Landlord, shall
provide that such insurance shall not be subject to cancellation or change except after ten days'
written notice to Landlord.
Landlord shall endeavor to add the Irish Dome to its Property Insurance Coverage, and, if
necessary, will procure a separate policy insuring the facility against loss. Tenant shall be
responsible for the costs of said insurance, and shall remit the costs to Landlord as additional
rent. Tenant shall be responsible for procuring insurance on the contents of the Irish Dome.
Landlord shall name Tenant as an additional insured on its Liability insurance policy for
purposes of claims brought against Tenant for injuries to persons and for damage to property
arising out of the Landlord's use of the Irish Dome, subject to any exclusions in the School
District's insurance coverage.
4.02 Waiver of Subrogation. To the extent insurance coverage is not compromised,
Landlord and Tenant hereby waive any and all claims of action and rights or recovery against
each other, including the other's agents, contractors, employees, servants, tenants and
concessionaires, for any loss or damage caused by fire or perils insured by extended coverage,
to the extent that any such loss or damage is covered by insurance maintained by the party
sustaining the loss. Landlord and Tenant shall use reasonable efforts to obtain appropriate
clauses in, or endorsements on, their respective policies of fire insurance whereby the
insurance companies waive subrogation consent to a waiver of the right of recovery.
4.03 Liability. Tenant and Landlord shall each be responsible for the acts and
omissions of their own employees, officers and agents and neither party shall be responsible for
the acts and omissions of the other party's employees, officers and agents.
FIFTH: DAMAGE AND CONDEMNATION
5.01 Damage. If the Leased Premises and /or the Irish Dome are either partially or
totally destroyed by fire or other casualty, Tenant shall promptly repair and restore the Leased
Premises and /or the Irish Dome. Tenant's obligation to provide Landlord with use of the Irish
Dome as described in Section 1.03 shall abate during the time that Tenant is repairing and
restoring the Premises.
5.02 Condemnation of All the Leased Premises. If the whole of the Leased
Premises shall be acquired or condemned by eminent domain for any public or quasi- public use
or purpose or conveyed in anticipation or in lieu of such condemnation, or if a partial taking
occurs which makes continued operation of the Irish Dome impractical, then the term of this
Lease shall cease and terminate as of the date of title vesting in such proceeding and all rentals
shall be paid up to that date and Tenant shall have no claim against Landlord nor the
condemning authority for the value of any unexpired term of this Lease and rent shall be
adjusted to the date of such termination. In the event of a partial taking or condemnation which
is not extensive enough to render the Leased Premises unsuitable for the reasonable operation
of the Irish Dome, then this Lease shall continue in full force and effect without any reduction or
abatement of rent.
5.03 Award in Eminent Domain. Except as herein provided, Tenant shall not be
entitled to any portion of the award paid for the condemnation of the Leased Premises and
Landlord is to receive the full amount of such award, Tenant hereby expressly waiving any right
or claim to any portion thereof. Although all damages, whether awarded as compensation for
diminution in value of the lease hold or to the fee of the Leased Premises shall belong to
Landlord, Tenant shall have the right to claim and recover from the condemning authority, but
not from Landlord such compensation as may be separately awarded or recoverable by Tenant
on account of any and all damage to Tenant's business by reason of the taking and for or on
account of any cost or loss to which Tenant might be put in removing its merchandise, furniture,
fixtures, leasehold improvements and equipment.
SIXTH: DEFAULTS
6.01 Events of Default. The following shall be "Events of Default" under this Lease
and the term "Events -of Default" shall mean, whenever used in this Lease, any one or more of
the following events:
a) If Tenant fails to provide the Landlord use of the property pursuant to Section
1.03 hereof, or to make payment of any insurance premium to be paid on or prior to the
dates on which payments are required to be made; or
b) If Tenant shall default in the due and punctual performance of any other
covenants, conditions, agreements and provisions contained in the Lease or in any
instrument supplemental hereto on the part of Tenant to be performed and such default
shall continued for a period of 30 days after written notice, specifying such default and
requiring the same to be remedied, shall have been given to Tenant; or
C) If Tenant allows any Liens to attach to the Leased Premises as a result of
construction, improvement, or maintenance of the Leased Premises; or
d) If Tenant files a petition in bankruptcy, or makes an assignment for the
benefit of creditors, or consents in writing to the appointment of a trustee
or receiver for itself; or
e) If a court of competent jurisdiction shall enter an order, judgment or
decree declaring the Tenant an insolvent, or adjudging it bankrupt, or
appointing a trustee or receiver of Tenant, or approving a petition filed-
against Tenant, or approving a petition filed against Tenant seeking
reorganization of the Tenant under any applicable law or statute of the
United States of America or any state thereof, and such order, judgment
or decree shall not be vacated or set aside or stayed within 60 days from
the date of the entry thereof; or
f) If, under the provisions of any other law for the relief or aid of debtors, any
court or competent jurisdiction shall assume custody or control of Tenant,
and such custody or control shall not be terminated within 90 days from
the date of assumption of such custody or control.
g) If Tenant fails to comply with the applicable terms and provisions of the grant
agreement between Landlord, City and the State of Minnesota, including standards of
maintenance, public use and accessibility requirements. Said failure shall only become
an event of default provided the failure is continued for a period of 30 days after written
notice, specifying the specific failure and requiring the same to be remedied, shall have
been given to Tenant following a periodic review by Landlord of Tenant's compliance
with the terms and provisions of the grant.
6.02 Remedies on Default. - Whenever any Event of Default referred to in Section
6.01 hereof shall have happened and be subsisting, then:
a) Landlord may terminate the Lease Term, exclude Tenant from possession of the
Leased Premises, require Tenant to seasonably remove the dome and any personal
property therein, and require Tenant (at its option) to either return the Leased Premises
to the condition it existed in at the beginning of this Lease or leave the artificial turf
surface in place for the permanent use and possession of the Landlord.
b) Landlord may take whatever action at law or in equity may appear necessary or
desirable to enforce performance and observance of any obligation, agreement or
covenant under this Lease.
C) Landlord may pursue any other legal or equitable rights not described herein,
including but not limited to an action for damages.
SEVENTH: MISCELLANEOUS
7.01 Title and Possession. Tenant shall be responsible for assuring the condition of
title to the Leased Premises is acceptable to Tenant. Landlord covenants and warrants that the
School Board has authorized the School District to enter into this a Lease for the full term
herein granted.
7.02 Waiver. The failure of Landlord to enforce any term, covenant, or condition
herein contained shall not be deemed to be a waiver of such term, covenantor condition herein.
No covenant, term or condition of this Lease shall be deemed to have been waived by Landlord,
unless such waiver is in writing and signed by Landlord.
7.03 Assignment and Subleasing. This Lease may not be assigned in whole or in
part, and the Leased Premises may not be subleased as a whole or in part, by Tenant without
Landlord's prior written approval. This section shall not prohibit the Tenant from renting the
facility to individuals and groups for short-term usage.
7.04 Captions. The captions in the Lease are a matter of convenience and in no way
define, limit, construe or describe the scope or intent of such sections of this Lease.
7.05 Surrender of the Leased Premises. On the last day of the term or the sooner
termination thereof, Tenant shall peaceably surrender the Leased Premises and the Irish Dome
in good order, condition and repair, reasonable wear and tear only excepted.
7.06 Relationship of Landlord and Tenant. By this Lease, Landlord does not
acquire any right, title or interest in or to any property of Tenant except such rights as are
specifically stated in this Lease. Landlord shall not be liable to any creditor of Tenant or to any
claimant against the estate or property of Tenant for any debt, loss, contract, or other obligation
of Tenant. The relationship between Landlord and Tenant is solely that of Landlord and Tenant
and is not that of partners or joint ventures.
7.07 Entire Agreement. This Lease constitutes the entire agreement between the
parties and no earlier statements or -prior written matter shall have any force or effect. Tenant
is not relying on any representations or agreements other than those contained in this Lease.
This Lease shall not be modified or canceled except by written instrument subscribed by both
parties.
7.08 Successors. The terms, conditions and agreements of this Lease and all rights
and obligations herein given to or imposed upon the parties hereto shall bind and inure to the
benefit of the respective heirs, executors, administrators, successors and assigns of the parties
hereto.
EIGHTH: ACQUISITION AT END OF LEASE TERM
8.01 Landlord's Acquisition. At the end of the lease term, Landlord shall acquire
ownership of all improvements constructed on the Leased Property including the Irish Dome
and all related personal property therein, at no cost to Landlord. Such acquisition shall serve as
additional consideration for Landlord under this Lease.
r`
NINTH: NOTICES
9.01 Notices. All notices required under this Lease must be in writing and provided to
the designated contact person for the other party. The parties shall keep each other informed
in writing of any change in the designated contact person. At the time of the execution of this
Lease, the following persons are the designated contacts:
Landlord Contact Tenant Contact
John Currie Jody Otto
Name Name
Superintendent President Irish Dome, I.L.C.
Title Title
14445 Diamond Path West 5886 Blackshire Path
Rosemount Minnesota 55068 Inver Grove Heights, Minnesota 55076
Address Address
(651) 423 -7749 (651) 731 -3100
Phone Phone
TENTH: CONSENT OF CITY
10.01. Consent of City. The Leased Premises is a part of property that has been
improved using grant funds. The granting agencies and the Landlord have requested that the
City execute this lease. However, the City does not assume or accept any rights or
responsibilities under this Lease and has executed this lease solely for the purpose of indicating
its consent thereto.
The undersigned hereby acknowledge that they have read, understand and agree to be bound
by the terms of this Lease and are authorized to enter into this Lease on behalf of the
respective parties.
TENANT: LANDLORD:
By - By
Its Its Chair
By
Its Clerk
CITY:
By
Its