HomeMy WebLinkAbout5.a. Sunrise Builders Property AcquisitionCITY OF ROSEMOUNT
EXECUTIVE SUMMARY FOR ACTION
CITY COUNCIL MEETING DATE: JANUARY 21, 1992
AGENDA ITEM: SUNRISE BUILDER'S PROPERTY
ACQUISITION
AGENDA SECTION:
OLD BUSINESS
PREPARED BY: STEPHAN JILK, CITY ADMINISTRATOR
AGENDREM # 5
I --
ATTACHMENTS: PURCHASE/LEASE BACK DOCUMENTS
APP V$D BY:
This item is back on the agenda for reconsideration. Action taken at the
council meeting of January 7, 1992 caused the tabling of any action until
January 21, 1992 allowing discussion to take place with the owner, Mr.
McDonough.
Since that action occurred it will be necessary to reconsider the final
action of:
1. Approving the purchase documents and lease back documents between the
City and Mike McDonough as presented on January 7, 1992 (attached for
your reference); or
2. Take action to not purchase the property.
Motion #1: A motion to approve the completion of the purchase of the
Sunrise Builder Property and the Lease Back of that property
as outlined in the Purchase Documents, "Exhibit All, and the
Lease Agreement, "Exhibit B".
Motion #2: A motion to advise Mr. Mike McDonough that the City is not
interested in the purchase of the Sunrise Builders Property
and does not intend to complete any Purchase Agreement for
that property at this time.
RECOMMENDED ACTION: As decided above.
COUNCIL ACTION:
COX°CRACT FOR DEF.t) Form No. 54 -VI
No delinquent taxes and transfer entered;
Certificate of Real Estate Value
( )filed ( )not required
, 19—
County
County Auditor
By
Deputy
(reserved for mortgage registry tax payment data)
for recording data)
MORTGAGE REGISTRY TAX DUE HEREON:
Date: January 31 -,1992
THIS CONTRACT FOR DEED is made on the above date by
Michael McDonough and Eileen M. McDonough husband and wife
' (marital status)
Seller (whether one or more), and The City of Rosemount
Purchaser (whether one or more).
Seller and Purchaser agree to the following terms:
1. PROPERTY DESCRIPTION. Seller hereby sells, and Purchaser hereby buys, real property in
Dakota County, Minnesota, described as follows:
See Exhibit"A" attached hereto
together with all hereditaments and appurtenances belonging thereto (the Property).
2. TITLE. Seller warrants that title to the Property is, on the date of this contract, subject only to the
following exceptions:
(a) Covenants, conditions, restrictions, declarations and easements of record, if any;
(b) Reservations of minerals or mineral rights by the State of Minnesota, if any;
(c) Building, zoninn and subdivision laws and regulations;
(d) Tho l;P� of —al estate taxes and installments of special assessments which are payable by
Purchaser pursuant to paragraph 6 of this contract; and
(e) The following liens or encumbrances:
Mortgage in favor of First State Bank of Rosemount dated January 31, 1992,
recorded , 1992, as Document No. (the "Mortgage").
3. DELIVERY OF DEED AND EVIDENCE OF TITLE. Upon Purchaser's prompt and full performance
of this contract, Seller shall:
(a) Execute, acknowledge and deliver to Purchaser a Warranty Deed, in
recordable form, conveying marketable title to the Property to Purchaser, subject only to the
following exceptions:
(i) Those exceptions referred to in paragraph 2(a), (b), (c) and (d) of this contract;
(ii) Liens, encumbrances, adverse claims or other matters which Purchaser has created, suffered
or permitted to accrue after the date of this contract; and
viii The following liens or encumbrances:
'lone
;and
(b) Deliver to Purchaser the abstract of title to the Property or, if the title is registered, the owner's
duplicate certificate of title.
4. PURCH SE PRISE urchaser shall to Seller, at
such place as el er may desiaria e
as and for the purchase price for the Property, payable as follows:
$50,000.00 in cash, the receipt of which is hereby acknowledged.
$266,000.00 payable as follows:
$66,000.00, plus interest at the rate of 8% per annum, in monthly
installments of $2,068.20, which payments shall be due and payable
on the first day of each month commencing the first day of March,
1992, and continuing through and including the first day of
February, 1995.
$200,000.00 plus interest at the rate of 9.5% per annum, in monthly
installments of $4,200.37 per month, which payments shall be due and
payable on the first day of each month commencing on the first day
of March, 1992, and continuing through and including the first day
of February, 1997.
Interest shall commence on the day of this Contract. Payments
shall be first applied to accrued and unpaid interest and the
balance to principal.
Seller agrees that Purchaser may, at its option, pay such sums as
may be owed to First State Bank of Rosemount by Seller pursuant to
the Mortgage directly to First State Bank of Rosemount and deduct
that amount from the amount to be paid by Purchaser to Seller.
sum of
5. PREPAYMENT. Unless otherwise provided in this contract, Purchaser shall have the right to fully or
partially prepay this contract at any time without penalty. Any partial prepayment shall be applied
first to payment of amounts then due under this contract, including unpaid accrued interest, and the
balance shall be applied to the principal installments to be paid in the inverse order of their maturity.
Partial prepayment shall not postpone the due date of the installments to be paid pursuant to this
contract or change the amount of such installments.
6. REAL ESTATE TAXES AND ASSESSMENTS. Purchaser shall pay, before penalty accrues, all real
estate taxes and installments of special assessments assessed against the Property which are due and
payable in the year 1•U3 and in all subsequent years. Real estate taxes and installments of special
assessments which are due and payable in the year in which this contract is dated shall be paid as
follows:
pro -rated as of the date of closing.
Seller warrants that the real estate taxes and installments of special assessments which were due and
payable in the years preceding the year in which this contract is dated are paid in full.
7. PROPERTY INSURANCE.
(a) INSURED RISKS AND AMOUNT. Purchaser shall keep all buildings, improvements and
fixtures now or later located on or a part of the Property insured against loss by fire, extended
coverage perils, vandalism, malicio s mischief and, if applicable, steam boiler explosion for at
least the amount of ful l i0spr� a vaIue
If any of the buildings, improvements or fixtures are located in a federally designated flood prone
area, and if flood insurance is available for that area, Purchaser shall procure and maintain flood
insurance in amounts reasonably satisfactory to Seller.
(b) OTHER TERMS. The insurance policy shall contain a loss payable clause in favor of Seller which
provides that Seller's right to recover under the insurance shall not be impaired by any acts or
omissions of Purchaser or Seller, and that Seller shall otherwise be afforded all rights and
privileges customarily provided a mortgagee under the so-called standard mortgage clause.
(c) NOTICE OF DAMAGE. In the event of damage to the Property by fire or other casualty,
Purchaser shall promptly give notice of such damage to Seller and the insurance company.
8. DAMAGE TO THE PROPERTY.
(a) APPLICATION OF INSURANCE PROCEEDS. If the Property is damaged by fire or other
casualty, the insurance proceeds paid on account of such damage shall be applied to payment of
the amounts payable by Purchaser under this contract, even if such amounts are not then due to be
paid, unless Purchaser makes a permitted election described in the next paragraph. Such amounts
shall be first applied to unpaid accrued interest and next to the installments to be paid as provided
in this contract in the inverse order of their maturity. Such payment shall not postpone the due
date of the installments to be paid pursuant to this contract or change the amount of such
installments. The balance of insurance proceeds, if any, shall be the property of Purchaser.
h. Pt- I,(1iASI-1'I, S iiEBUILD. If Purchaser is nut in dvlault under 11 .i, : I
h default. and i f the ni,,rtga ge" in ani' prior mortgages a n d s, -I Ivr- in 1!1.
Est: d,, n t require ut h vr%� ise. Pu rk haler -I,,( t to h a % e t 11, 1: 1- rt 1-r
insurance proceeds necessary to repair, replace or restore the damaged Property (the repair %%,)rk)
deposited in escrow with a bank or title insurance company qualified to do business in the State of
Minnesota, or such other party as may be mutually agreeable toSeller and Purchaser. The election
may only be made by written notice to Seller within sixty days after the damage occurs. Also, the
election will only be permitted if the plans and specifications and contracts for the repair work are
approved by Seller, which approval Seller shall not unreasonably withhold or delay. If such a
permitted election is made by Purchaser, Seller and Purchaser shall jointly deposit, when paid,
such insurance proceeds into such escrow. If such insurance proceeds are insufficient for the
repair work, Purchaser shall, before the commencement of the repair work, deposit into such
escrow sufficient additional money to insure the full payment for the repair work. Even if the
insurance proceeds are unavailable or are insuffficient to pay the cost of the repair work,
Purchaser shall at all times be responsible to pay the full cost of the repair work. All escrowed
funds shall be disbursed by the escrowee in accordance with generally accepted sound
construction disbursement procedures. The costs incurred or to be incurred on account of such
escrow shall be deposited by Purchaser into such escrow before the commencement of the repair
work. Purchaser shall complete the repair work as soon as reasonably possible and in a good and
workmanlike manner, and in any event the repair work shall be completed by Purchaser within
one year after the damage occurs. If, following the completion of and payment for the repair work,
there remain any undisbursed escrow funds, such funds shall be applied to payment of the
amounts payable by Purchaser under this contract in accordance with paragraph 8 (a) above.
9. INJURY OR DAMAGE OCCURRING ON THE PROPERTY.
(a) LIABILITY. Seller shall be free from liability and claims for damages by reason of injuries
occurring on or after the date of this contract to any person or persons or property while on or about
the Property. Purchaser shall defend and indemnify Seller from all liability, loss, costs and
obligations, including reasonable attorneys' fees, on account of or arising out of any such injuries.
However, Purchaser shall have no liability or obligation to Seller for such injuries which are
caused by the negligence or intentional wrongful acts or omissions of Seller.
(b) LIABILITY INSURANCE. Purchaser shall, at Purchaser's own expense, procure and maintain
liability insurance against claims for bodily injury, death and property damage occurring on or
about the Property in amounts reasonably satisfactory to Seller and naming Seller as an
additional insured.
10. INSURANCE, GENERALLY. The insurance which Purchaser is required to procure and maintain
pursuant to paragraphs 7 and 9 of this contract shall beissued byan insurance company or companies
licensed to do business in the State of Minnesota and acceptable to Seller. The insurance shall be
maintained by Purchaser at all times while any amount remains unpaid under this contract. The
7
insurance policies shall provide for not less than ten days written notice to Seller before cancellation,
non -renewal, termination or change in coverage, and Purchaser shall deliver to Seller a duplicate
original or certificate of such insurance policy or policies.
11. CONDEMNATION. If all or any part of the Property is taken in condemnation proceedings instituted
under power oferninent domain oris conveyed in lieu thereof under threat of condemnation, the money
paid pursuant to such condemnation or conveyance in lieu thereof shall be applied to payment of the
amounts payable by Purchaser under this contract, even if such amounts are not then due to be paid.
Such amounts shall be applied first to unpaid accrued interest and next to the installments to be paid
as provided in this contract in the inverse order of their maturity. Such payment shall not postpone the
due date of the installments to be paid pursuant to this contract or change the amount of such
installments. The balance, if any, shall be the property of Purchaser.
12. WASTE, REPAIR AND LIENS. Purchaser shall not remove or demolish any buildings, im-
provements or fixtures now or later located on or a part of the Property, nor shall Purchaser commit or
allow waste of the Property. Purchaser shall maintain the Property in good condition and repair.
Purchaser shall not create or permit to accrue liens or adverse claims against the Property which
constitute a lien or claim against Seller's interest in the Property. Purchaser shall pay to Seller all
amounts, costs and expenses, including reasonable attorneys' fees, incurred by Seller to remove any
such liens or adverse claims.
13. DEED AND MORTGAGE REGISTRY TAXES. Seller shall, upon Purchaser's full performance of this
contract, pay the deed tax due upon the recording or filing of the deed to be delivered by Seller to
Purchaser. The mortgage registry tax due upon the recording or filing of this contract shall be paid by
the party who records or files this contract; however, this provision shall not impair the right of Seller
to collect from Purchaser the amount of such tax actually paid by Seller as provided in the applicable
law governing default and service of notice of termination of this contract.
14. NOTICE OF ASSIGNMENT. If either Seller or Purchaser assigns their interest in the Property, a copy
of such assignment shall promptly be furnished to the non -assigning party.
15. PROTECTION OF INTERESTS. If Purchaser fails to pay any sum of money required under the terms
of this contract or fails to perform any of Purchaser's obligations as set forth in this contract, Seller
may, at Seller's option, pay the same or cause the same to be performed, or both, and the amounts so
paid by Seller and the cost of such performance shall be payable at once, with interest at the rate stated
in paragraph 4 of this contract, as an additional amount due Seller under this contract.
If there now exists, or if Seller hereafter creates, suffers or permits to accrue, any mortgage, contract for
deed, lien or encumbrance against the Property. which is not herein expressly assumed by Purchaser,
and provided Purchaser is not in default under this contract, Seller shall timely pay all amounts due
thereon, and if Seller fails to do so, Purchaser may, at Purchaser's option, pay any such delinquent
amounts and deduct the amounts paid from the installment(s) next coming due under this contract.
16. DEFAULT. The time of performance by Purchaser of the terms of this contract is an essential part of
this contract. Should Purchaser fail to timely perform any of the terms of this contract, Seller may, a'tx
&Jbx'sxotiKKelect to declare this contract cancelled and terminated by notice to Purchaser in
accordance with applicable law. All right, title and interest acquired under this contract by Purchaser
shall then cease and terminate, and all improvements made upon the Property and all payments made
by Purchaser pursuant to this contract shall belong to Seller as liquidated damages for breach of this
contract. Neither the extension of the time for payment of any sum of money to be paid hereunder nor
any waiver by Seller of Seller's rights to declare this contract forfeited by reason of any breach shall in
any manner affect Seller's right to cancel this contract because of defaults subsequently occurring, and
no extension of time shall be valid unless agreed to in writing. After service of notice of default and
failure to cure such default within the period allowed by law, Purchaser shall, upon demand, surrender
possession of the Property to Seller, but Purchaser shall be entitled to possession of the Property until
the expiration of such period.
17. 111 N DING E FFECT. The terms of this contract shall run with the land and bind the parties hereto and
their successors in interest.
... _. i ..\, ,. Ili . :1... :,, 1.... � ... ;Ii', :t, , , I11, :1•. ,
nt,nt„�t�Lic•h p.ua—,r.lpIS.
t,1C\l.:1SSU( 1XI'II)\. l; thc• 11 ..uhlect t,,;1. 1uc,�,,i
prm iiing I'm, a„e„nLents it, be levied against the Property b\ any owners association. \\"hlCh
assessments may become a lien against the Property if not paid, then:
(a) Purchaser shall promptly pay, when due, all assessments imposed by the owners' association or
other governing body as required by the provisions of the declaration or other related documents;
and
(b) So long as the owners' association maintains a master or blanket policy of insurance against fire,
extended coverage perils and such other hazards and in such amounts as are required by this
contract, then:
(i) Purchaser's obligation in this contract to maintain hazard insurance coverage on the
Property is satisfied; and
(ii) The provisions in paragraph 8 of this contract regarding application of insurance proceeds
shall be superceded by the provisions of the declaration or other related documents; and
(iii) In the event of a distribution of insurance proceeds in lieu of restoration or repair following an
insured casualty loss to the Property, any such proceeds payable to Purchaser are hereby
assigned and shall be paid to Seller for application to the sum secured by this contract, with
the excess, if any, paid to Purchaser.
20. ADDITIONAL TERMS:
SELLER(S)
Michael McDonough
Eileen M. McDonough
State of Minnesota
Jf.
County of DAKOTA t
The
by _
was
ah
PURCHASER(S)
THE CITY OF ROSEMOUNT
me this — day of
NOTARIAL. STAMP OR SEAL (OR OTHER TITLE OR RANK)
State of Minnesota
JI.
County of DAKOTA
The foregoing instrument was
THIS INSTRUMENT WAS DRAFTED BY (NAME AND ADDRESSI
Hertos, Fluegel, Sieben, Polk,
Jones & LaVerdiere, P.A.
Eric A. Short
999 Westview Drive
Hastings, MN. 55033
(612) 437-3148
, 19-1
SIGNATURE OF NOTARY PUBLIC OR OTHER OFFICIAL
e municipal
corporation
SIGNATURE. OF NOTARY PUBLIC OR OTHER OFFICIAL
FAILURE TO RECORD OR FILE THIS CONTRACT FOR DEED MAY GIVE OTHER PARTIES
PRIORITY OVER PURCHASER'S INTEREST IN THE PROPERTY.
R, 1!,
(reserved for mortgage registry tax payment data)
MORTGAGE REGISTRY TAX DUE HEREON:
THIS INDENTURE, Made this 31st day of January 19 92
between Michael McDonough and Eileen M. McDonough
husband and wife Mortgagor (whether one or more),
and First State Bank of Rosemount
Mortgagee (whether one or more),
WITNESSETH, That Mortga or, in consideration of the sum of
Two Hundred Thousand and 09/100 ($200,000.00) --------------------------------- DOLLARS,
to Mortgagor in hand paid by Mortgagee, t Dd�Otdpt whereof is hereby acknowledged, does hereby convey unto
Mortgagee, forever, real property in County Minnesota, described as follows:
See Exhibit "A" attached hereto.
together with all hereditaments and appurtenances belonging thereto (the Property).
TO HAVE AND TO HOLD THE SAME, to Mortgagee forever. Mortgagor covenants with Mortgagee as follows: That Mortgagor is
lawfully seized of the Property and has good right to convey the same: that the Property is free from all encumbrances, except as follows:
None
that Mortgagee shall quietly enjoy and possess the same: and that Mortgagor will warrant and defend the title to the same against all lawful
claims not hereinbefore specifically excepted.
P VII ED, N VERTHELESS, T {HI rt y ortgagee the sum of
Two unc�red housantl a'nSd � � � �.��1------------------------------------ nnrreuc
according to thjjerms,pfa promissory note of even date herewith (the Note), the final payment being due and payable on
UeCem er lyyyy// with interest at the rate provided in the Note, and shall repay to Mortgagee, at the times and with interest as
specified, all sums advanced in protecting the lien of this Mortgage, in payment of taxes on the Property and assessments payable therewith,
insurance premiums covering buildings thereon, principal or interest on any prior liens, expenses and attorney's fees herein provided for and
sums ad, anced for any other purpose authorized herein, and shall keep and perform all the covenants and agreements herein contained, then
this Mortgage shall be null and void, and shall be released at Mortgagor's expense.
AND MORTGAGOR covenants with Mortgagee as follows:
1. to pay the principal sum of money and interest as specified in the Note;
2. to pay all taxes and assessments now due or that may hereafter become liens against the Property before penalty attaches thereto;
3. to keep all buildings, improvements and fixtures now or later located on or a part of the Property insured against loss by fire, extended
cT,drfe 1 h SU,y a Tei V G 1%,cious mischief and, if applicable, steam boiler explosion, for at least the amount of
at all times while any amount remains unpaid under this Mortgage. If any of the buildings, improvements or fixtures are located in a
federally designated flood prone area, and if flood insurance is available for that area, Mortgagor shall procure and maintain flood
insurance in amounts reasonably satisfactory to Mortgagee. Each insurance policy shall contain a loss payable clause in favor of
Mortgagee affording all rights and privileges customarily provided underthe so-called standard mortgage clause. In the event of damage
to the Property by fire or othercasualty, Mortgagor shall promptly give notice of such damage to Mortgagee and the insurance company.
The insurance shall be issued by an insurance company or companies licensed to do business in the State of Minnesota and acceptable to
Mortgagee. The insurance policies shall provide for not less than ten days written notice to Mortgagee before cancellation, nonrenewal,
termination, or change in coverage, and Mortgagor shall deliver to Mortgagee a duplicate original or certificate of such insurance
policies;
4. to pay, when due, both principal and interest of all prior liens or encumbrances, if any, and to keep the Property free and clear of all other
prior liens or encumbrances;
5. to commit or permit no waste on the Property and to keep it in good repair;
6. to complete forthwith any improvements which may hereafter be under course of construction on the Property; and
7. to pay any other expenses and attorney's fees incurred by Mortgagee by reason of litigation with any third party for the protection of the
lien of this Mortgage.
In case of failure to pay said taxes and assessments, prior liens or encumbrances, expenses and attorney's fees as above specified, or to
insure said buildings, improvements, and fixtures and deliver the policies as aforesaid, Mortgagee may pay such taxes, assessments, prior
liens, expenses and attorney's fees and interest thereon, or obtain such insurance, and the sums so paid shall bear interest from the date of
such payment at the same rate set forth in the Note. and shall be impressed as an additional lien upon the Property and be immediately due
and payable from Mortgagor to Mortgagee and this Mortgage shall from date thereof secure the repayment of such advances with interest.
In case of default in any of the foregoing covenants, Mortgagor confers upon the Mortgagee the option of declaring the unpaid balance of
the Note and the interest accrued thereon, together with all sums advanced hereunder, immediately due and payable without notice, and
hereby authorizes and empowers Mortgagee to foreclose this Mortgage by judicial proceedings or to sell the Property at public auction and
convey the same to the purchaser in fee simple in accordance with the statute, and out of the moneys arising from such sale to retain all sums
secured hereby, with interest and all.legal costs and charges of such foreclosure and the maximum attorney's fee permitted by law, which
costs, charges and fees Mortgagor agrees to pay.
The terms of this Mortgage shall run with the Property and bind the parties hereto and their successors in interest.
IN TESTIMONY WHEREOF, Mortgagor has hereunto set its hand the day and year first above written.
STATE OF MINNESOTA
IJ.
COUNTY OF DAKOTA
The
by
was ac >a wled ed bbeffore
and i �een I. Mcuonl
Hertogs, Fluegel, Sieben, Polk,
Jones & LaVerdiere, P.A.
Eric A. Short
999 Westview Drive
Hastings, MN. 55033
(612) 437-3148
MORTGAGOR
Michael c onoug
Eileen M. McDonough
day of ,19—,
SIGNATURE OF PERSON TAKING ACKNOWLEDGMENT
NOTARIAL STAMP OR SEAL tOR OTHER TiT[.E OR RANKI
FAILURE TO RECORD OR FILE THIS MORTGAGE
MAY AFFECT THE PRIORIT)' fiF THISMORTGAGE E
xG,1 13,-r fir,
-- z r �-
LEASE AGREEMENT
THIS AGREEMENT is made as of the day of 1992, by and
between THE CITY OF ROSEMOUNT, A MINNESOTA MUNICIPAL CORPORATION, hereinafter
referred to as "Lessor", and SUNRISE BUILDERS, INC.', A MINNESOTA CORPORATION,
hereinafter referred to as "Lessee";
1. LEASED PREMISES. Lessor in consideration of the rents and covenants
hereinafter described, does hereby lease and demise to Lessee the following
described real property, improvements, and use of any common areas in the
building located in the County of Dakota and State of Minnesota, hereinafter
referred to as "the Leased Premises":
See Exhibit A attached hereto.
2. PURPOSE. Lessee shall use the Leased Premises for the purpose of
operating a building supply store or for any other lawful purpose. Lessee shall
permit no hazardous substances as defined in Minn. Stat. §115B.01, et seq. upon
the property.
3. TERM. The term of this Lease shall be three (3) years, and shall
run from January 31, 1992, to January 30, 1995; provided, however, that either
Lessee or Lessor may terminate this Lease Agreement by giving not less than
ninety (90) days notice.
4. RENT. Lessee shall pay to Lessor as rent for the Leased Premises
monthly payments of $750.00 in advance, on or before the first day of every
month during the term of this Lease. The first monthly installment shall be due
Lessor on January 31, 1992. Payments shall be mailed or delivered to Lessor at
2875 145th Street West, Rosemount, MN. 55068, or at such other place as Lessor
1
orderly condition, and shall cause or permit no damage or waste to said premises.
10. LIABILITY. Lessor shall not be liable for injury or damage to the
person or property of Lessee occurring within the Leased Premises.
11. INDEMNITY. Lessee shall indemnify and hold harmless Lessor from
and against any claim, liability, expense, or loss arising out of the injury to
any person or damage to any property occurring on the Leased Premises or public
areas adjacent thereto, including mechanic's liens against the Leased Premises.
12. DESTRUCTION. Should the Leased Premises, without any fault on the
part of Lessee or Lessee's agents, be destroyed or so injured by the elements
or any cause as to be untenantable and unfit for occupancy, this Lease shall
expire and Lessee's obligation to pay rent abate. Upon expiration, all
obligations and rights of both Lessor and Lessee hereunder shall cease, with
rent apportioned to date of expiration.
13. RIGHT OF ENTRY. Lessor shall have the right to enter the Leased
Premises for the purpose of performing Lessor's obligations hereunder, for the
purpose of avoiding damage or injury in circumstances of emergency or other
necessity, for the purpose of inspection of the Leased Premises upon reasonable
belief such inspection is necessary to avoid damage or waste by Lessee, and for
the purpose of preparing, exhibiting, and showing the leased Premises for sale,
lease, financing, or appraisal. Following notice by either party hereto that a
lease term will be terminated, Lessor shall have - the right to post the usual
notices "For Rent" or "For Sale", and shall be allowed, at reasonable times, to
bring prospective tenants or purchasers within the Leased premises for purposes
of showing the property.
14. ABANDONMENT. If at any time during the term of this Lease, the Leased
Premises are abandoned by Lessee, Lessor may, at Lessor's option, enter the
3
Leased Premises and relet the premises as agent for Lessee for any portion of
the unexpired term, collect rent, and hold Lessee liable for any difference in
rent collected due to Lessee's abandonment, and Lessor shall in no case be liable
to Lessee for acts pursuant to exercise of this option.
15. DEFAULT. If any default is made in the payment of rent, or if Lessee
defaults in the performance of any other covenant or provision of this Agreement,
Lessor may, at its option, terminate the Lease, retake possession of the Leased
Premises and remove Lessee. Lessor shall recover from Lessee all reasonable
attorneys' fees and court costs incurred in legal proceedings required to secure
Lessor 's rights hereunder in the case of default by Lessee. If an event of
default occurs, whether or not Lessor elects to terminate this Lease, Lessor may
enter upon and repossess the premises by force, summary proceedings, ejectment,
unlawful detainer or otherwise, and may remove Lessee and all other persons or
property therefrom. No termination of this Lease and no repossession of the
Leased Premises shall relieve Lessee of its liabilities and obligations under
this Lease, all of which shall survive any such termination or repossession.
In the event of any such termination or repossession, whether or not the Leased
Premises shall have been re -let, Lessee shall pay to Lessor the rent and other
sums and charges due to be paid by Lessee up to the time of such termination or
repossession and thereafter Lessee, until the end of what would have been the
term in the absence of such termination or repossession, shall pay to Lessor as
and for liquidated damages and agreed current damages for Lessee's default, the
equivalent of the amount of rent and such other sums and charges which would have
been payable under this Lease Agreement by Lessee, if this Lease Agreement were
still in effect, less the net proceeds, if any, of any re -letting by Lessor,
after deducting all of Lessor's expenses in connection with such re -letting
4
including without limitation all repossession costs, operating expenses and
attorneys' fees.
16... GOVERNING LAW. This Agreement shall be governed by and construed
according to the laws of the State of Minnesota.
17. SEVERABLE PROVISIONS. Each provision, section, sentence, clause,
phrase, and word of this Lease Agreement is intended to be severable. If any
provision, section, sentence, clause, phrase or word hereof is illegal, invalid
or unenforceable for any reason whatsoever, such illegibility, invalidity or
unenforceability shall not affect the validity, legality or enforceability of
the remainder of t])is Lease Agreement.
18. ENTIRE AGREEMENT. This Lease Agreement contains the entire agreement
and understanding between Lessor and Lessee with respect to the Leased Premises,
and can be modified only by subsequent written agreement between the parties
hereto. The covenants, terms and conditions of this Lease Agreement shall bind
and inure to the benefit of the heirs, representatives, successors and permitted
assigns of the parties hereto.
IN WITNESS WHEREOF, Lessor and Lessee have executed this Lease Agreement,
as of the day and year first above written.
Lessor: Lessee:
THE CITY OF ROSEMOUNT, a SUNRISE BUILDERS, INC., a
Minnesota Municipal corporation Minnesota corporation
M.
Its
And
Its
5
Lu -
Its
STATE OF MINNESOTA )
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1992 by and , the
and of the City of Rosemount, a Minnesota
Municipal corporation, on behalf of the municipal corporation.
Notary Public
STATE OF MINNESOTA)
COUNTY OF )
The foregoing instrument was acknowledged before me this day of
1992 by the of Sunrise Builders,
Inc., a Minnesota corporation, on behalf of the corporation.
THIS INSTRUMENT DRAFTED BY:
Eric A. Short
Hertogs, Fluegel, Sieben,
Polk, Jones & LaVerdiere, P.A.
999 Westview Drive
Hastings, MN 55033
Telephone: (612) 437-3148
6
Notary Public