HomeMy WebLinkAbout06.e. Community Center - Armory Lease Agreement
EXECUTIVE SUMMARY
City Council Regular Meeting: May 15, 2018
AGENDA ITEM: Community Center/Armory Lease
Agreement
AGENDA SECTION:
Consent
PREPARED BY: Dan Schultz, Parks and Recreation
Director AGENDA NO. 6.e.
ATTACHMENTS: Proposed Lease Agreement APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve the 2018 - 2021 Armory Lease Agreement
with the State of Minnesota’s Department of Military Affairs.
ISSUE
The City of Rosemount has a lease agreement with the State of Minnesota’s Department of Military
Affairs for use of portions of the National Guard Armory. The lease agreement outlines the portions of
the Armory that the City will have access to. This arrangement has been in place for a number of years and
has worked well for both parties.
In 2015, the State of Minnesota’s Department of Military Affairs asked the City to consider entering into a
new agreement that included a number of large maintenance projects that need to be addressed at the
Armory/Community Center. The maintenance projects are identified in section 11, subsections A – D.
The lease agreement identifies the cost sharing plan for each improvement. Many of the projects were
recently completed but will remain in the agreement for future planning.
As outlined in the lease agreement, the City will pay a monthly lease fee of $1,680 to the MSABC. The
lease payment allows the City access to the gymnasium, auditorium, and multiple classrooms.
SUMMARY
The Parks and Recreation Department staff is recommending approval of the attached lease agreement
with the State of Minnesota’s Department of Military Affairs.
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AGREEMENT BETWEEN THE STATE OF MINNESOTA,
DEPARTMENT OF MILITARY AFFAIRS AND THE CITY
OF ROSEMOUNT TO LEASE SPACE
WHEREAS, the State of Minnesota, Department of Military Affairs, hereinafter referred to
as the State, has constructed an armory in the City of Rosemount; and
WHEREAS, Minn. Stat., Sec. 193.145, Subd. 5, anticipates that portions of such armory
can be leased to other entities as long as such lease does not conflict with the lease to and use of the
armory by the State of Minnesota for military purposes; and
WHEREAS, the City of Rosemount, hereafter referred to as City, desires to utilize a
portion of said armory; and
WHEREAS, the State desires to enter into an agreement with the City for the use of the
armory when it is not being used for military purposes.
NOW, THEREFORE, BE IT AGREED that the State does hereby lease to the City, and
the City does hereby accept lease of, that portion of the armory located in the City of Rosemount,
also known as the Rosemount National Guard Training and Community Center as described on
Attachment A hereto, on the following terms and conditions:
1. TERM: The term of this agreement shall be for three years beginning January 12,
2018 and continuing to January 11, 2021, whereupon this lease shall continue on a month-to-month
basis until canceled or modified in writing. Lessee agrees not to assign this lease or any portion
thereof without first obtaining the written consent of the lessor.
2. CANCELLATION: The State reserves the right to cancel this lease at any time in
the event that an emergency arises that shall make necessary the use of this armory by the military
forces for the State of Minnesota, and that no claims for any damage that may result to the City
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from any such cancellation shall be asserted or maintained against the State. In the event of a
cancelation, the State will provide a written notification to the city.
3. PAYMENT: The City agrees to pay the State the sum of One Thousand Six
Hundred Eighty and no/100 Dollars ($1,680.00) each month. The amount is payable on an annual
basis. All payments are to be made payable to the Rosemount Armory Fund and mailed or delivered
to the Rosemount Armory, 13865 S Robert Trail, Rosemount, MN 55068.
4. LIABILITY: The parties shall be responsible for the acts of their respective
officials, employees and agents, subject to any limitations on liability under Minnesota Statutes and
other applicable law.
5. COMPLIANCE WITH LAW: The City agrees to comply with all of the laws, rules
and regulations of the United States and the State of Minnesota, and the rules and regulations of the
State for the government and management of said armory together with all rules and requirements
of the Police and Fire Departments of the City of Rosemount. Furthermore, the City shall obtain all
permits or licenses required by any provision of law, municipal charter or ordinance for the conduct
of programs and activities organized and managed by the City on the leased premises, and the State
and the State of Minnesota shall not be responsible for the City’s failure to obtain such permits and
licenses or to comply with any other requirement imposed upon the City for the conduct of such
activity.
6. VACATION: The City agrees to vacate the leased premises, remove debris and
restore same to ordinary cleanliness within one week after cancellation of this lease unless a new
lease or renewal period is negotiated.
7. ALLOCATION OF SPACE: State shall have sole control and use of space
designated ARNG as described in Attachment B. The City shall have sole control and use of the
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space designated City as described in Attachment B. State and the City shall cooperatively share the
space designated Shared as described in Attachment B. Operations and control of Shared space
shall be subject to the terms described below in section seven of this agreement labeled schedule of
use.
8. SCHEDULE OF USE: It is agreed and understood that the facility is primarily for
use by the Minnesota National Guard and that military activities must take precedence over any use
by the City. The City and the State shall cooperate to avoid any conflicts between uses. The State
shall provide the City with a written schedule of its use of the armory’s shared facilities one year in
advance. This schedule will become part of the lease. The City will incorporate this schedule into
the City’s schedule. It is understood that the schedule may change from time to time, and the State
shall give reasonable notice to the City in such cases. If, for any reason, the schedule requires
changing by the City, the City shall give reasonable notice to the State.
9. OPERATING COSTS: On the basis of the space and time utilized under this and
future leases with the City, the City will pay water, sewer, electricity, heating and other services and
utilities associated with its use or lease of the facilities. The City will bill the State for electric and
gas usage on a monthly basis. The State shall be responsible for 70% of the electric bill, and 48% of
the gas meter bill. The electric meter associated with the City sole use space shall be the full
responsibility of the City. The City and the State will negotiate a Maintenance Agreement on an
annual basis. The maintenance agreement shall outline respective routine maintenance
responsibilities and costs for the facility. These responsibilities will include cleaning and routine
maintenance duties for the building, mechanical air handler contract, chiller contract, janitorial
supplies, and grounds keeping and snow removal. It is understood by the parties that other
questions may arise during operation of the facility. Both parties pledge their cooperation to make
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this work for the public benefit. The parties agree to cooperate in every reasonable manner operate
a facility that first and foremost shall be considered a military structure for use by the National
Guard and, second, shall be considered a public facility for use by the public.
The City agrees to make no change in the stage, curtains, electric wiring, fixtures or
furnishings of those portions of the armory or shared spaces covered by the lease. The expense of
any agreed upon changes shall be assumed by the City and shall include the cost of restoring the
premises to its former conditions without damage.
10. MINOR REPAIR AND MAINTENANCE: The State shall be responsible for
maintenance of any specially fenced secure area for military vehicles or any accessory building
utilized to store government equipment, for all areas designated MNARNG sole use space as
described in Attachment B, and shall be responsible for maintenance and repair of shared areas
incident to and after use by the National Guard. The City shall be responsible for maintenance of
all City sole use space as designated in Attachment B, and shall be responsible for maintenance and
repair of shared areas incident to and after use by the City or City generated lease of the building.
The City shall have personnel on the premises at all times during City use or City generated lease of
the building and shall be responsible for securing the building when personnel are not present.
11. CAPTIAL REPAIRS AND NON RONROUTINE MAINTENANCE: Each party
acknowledges that certain nonroutine maintenance and capital repairs, including but not limited to
roof repairs, mechanical repairs, and plumbing and wiring repairs will be necessary to maintain the
building in a serviceable and desirable condition. Breakdown contributions for capital repairs and
nonroutine maintenance to the building shall be subject to the following:
a. ROOF REPLACEMENT: The facility contains approximately 114,337 square feet
of roof. The city shall be responsible for full roof replacement costs of roof directly
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associated with City sole use space located in the upper level of the facility. As laid out in
Attachment C, this will be the equivalent to approximately 46,245 square feet, or 39.6% of
the total replacement cost. The State is responsible for full roof replacement costs of roof
directly associated with ARNG and Shared space. As laid out in Attachment C, this will be
the equivalent to approximately 69,092 square feet, or 60.4% of the total replacement cost.
b. MECHANICAL REPAIRS: (HVAC/Installed mechanical equipment) The City
shall be responsible for 36% of repairs to the HVAC and installed mechanical equipment
that services the entire building. The State shall be responsible for 64% of repairs to the
HVAC and installed mechanical equipment that services the entire building. The City shall
be responsible for any mechanical upgrades solely beneficial to the designated City space as
listed in Attachment B.
c. PARKING LOTS: As laid out in Attachment D, the south parking lot is the sole
responsibility of the City, the east parking lot is the sole responsibility of the State, and the
west parking lot is shared responsibility split equally between both parties. The south lot
makes up 43% of the total bituminous parking space, the east lot makes up 33% of the total
bituminous parking space, and the west lot makes up 24% of the total bituminous parking
space. In the event of maintenance on the entire sum of the parking lot surface, the City
shall pay 55% of the total cost of maintenance and the State shall pay 45% of the total cost
of maintenance.
d. DRILL FLOOR/GYNMASIUM: The City shall be responsible for fifty percent
(50%) of all capital repairs and non-routine maintenance to the gymnasium/drill hall. The
City shall be responsible for all maintenance and repair of damages directly incident to and
after use by the City or City generated lease of the building The State shall be responsible
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for fifty percent (50%) of all capital repairs and non-routine maintenance to the
gymnasium/drill hall. The State be responsible for all maintenance and repair of damages
directly incident to and after use by the State use.
Each party acknowledges that besides the aforementioned, there may be other unforeseen
maintenance needs to arise. Both parties pledge their cooperation to resolve any additional needs or
issues that arise with a mutually beneficial solution.
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12. NOTICE: Any notices under this lease may be given to the State by sending to:
Executive Director
Minnesota Department of Military Affairs
Veterans Service Building
20 West 12th Street
St. Paul MN 55155
and to the City by sending to: Rosemount Parks and Recreation Department
Attn: Dan Schultz, Director of Parks and Recreation
13885 South Robert Trail
Rosemount, MN 55068
13. INSURANCE: Each party shall maintain insurance on their property interests in the
facility.
IN TESTIMONY WHEREOF, both parties have hereunto set their hands and seals this
_____ day of ________________, 201___.
CITY OF ROSEMOUNT
By: ____
Its: ____
By: ____
Its: ____
STATE OF MINNESOTA
DEPARTMENT OF MILITARY AFFAIRS
By: ____
Its: ____
By: ____
Its: ____
A
ATTACHMENT A
Schedule of City’s Anticipated
and
Requested Use of Facilities
Schedule of Use:
Area of Building: Dates and Time of Use:
(1) Gymnasium, Gym Storage Sunday thru Saturday from 7:00 a.m. to
NE corner and Locker Room 10:00 p.m. except where it conflicts with
Areas those days scheduled as drill dates
with the City.
(2) Classrooms #204, 206, 208, Same as above
210, 212, 214, 215, 216, 221
and Auditorium and
Auditorium Storage
(3) Kitchen, lower level Same as above
B-1
Attachment B-1
Upper Level
Use Designation
B-2
Attachment B-2
Main Level
Use Designation
B-3
Attachment B-3
Whole Facility
Use Designation - By Square Foot and Percentage
ARNG Use Space
Main Level ARNG Total 32,814 Main Level Full Floor Total 77,390
Upper Level ARNG Total 33,382 Upper Level Full Floor Total 57,947
TOTAL 66,196 TOTAL 135,337
ARNG % of Facility use Space 48.91%
City Use Space
Main Level City Total 33,801 Main Level Full Floor Total 77,390
Upper Level City Total 14,677 Upper Level Full Floor Total 57,947
TOTAL 48,478 TOTAL 135,337
City % of Facility use Space 35.82%
Shared Use Space
Main Level Shared Total 10,775 Main Level Full Floor Total 77,390
Upper Level Shared Total 9,888 Upper Level Full Floor Total 57,947
TOTAL 20,663 TOTAL 135,337
Shared % of Facility use Space 15.27%
C
Attachment C
Roof Replacement Designation
ARNG – Approx. 69,092 Sq.
ft. City – Approx. 45,245 Sq. ft.
D
Attachment D
Parking Lot Designation