HomeMy WebLinkAbout6.g. Lease Agreement with the 360 Communities for use of the Family Resource Center
EXECUTIVE SUMMARY
City Council Special Meeting: January 21, 2020
AGENDA ITEM: Lease Agreement with the 360
Communities for use of the Family
Resource Center
AGENDA SECTION:
Consent
PREPARED BY: Dan Schultz, Parks and Recreation
Director AGENDA NO. 6.g.
ATTACHMENTS: Proposed Lease Agreement APPROVED BY: LJM
RECOMMENDED ACTION: Motion to recommend the City Council approve the attached
lease agreement with the 360 Communities for their use of the Family Resource Center.
ISSUE
In 1998 and again in 2008, the City of Rosemount agreed to lease the Rosemount Family Resource Center
to the 360 Communities, allowing them to locate their Rosemount office in the building. The two leases
were each for a 10-year period.
City staff have met with the representatives from 360 Communities regarding the lease of the Family
Resource Center. 360 Communities would like to again renew the lease for a 10-year period. The City
does not charge 360 Communities to use the building.
BACKGROUND
In the summer of 1997, the City of Rosemount received a Youth Initiative Grant from the Minnesota
Department of Children, Families and Learning in the amount of $214,900. This grant, along with other
smaller grants and donations, allowed the construction of the Family Resource Center which is
approximately 1,600 square feet in size.
In December of 1998, 360 Communities and the City of Rosemount agreed to have 360 Communities
lease the facility. 360 Communities would then provide their services and also share space and encourage
other service providers to use the facility. The lease states that the facility will be used for serving children
and families in the community through services such as crisis intervention, providing food, clothing,
housing assistance, parenting support, academic support through mentorship, child care assistance,
violence prevention outreach and recreation. The Center officially opened in February of 1999. A new 10-
year lease was agreed to in November of 2008.
In the fall of 2018, City staff worked with our State Senator and Representative to get funding for the
expansion of the Rosemount Family Resource Center in the state bonding bill. The City was successful in
getting $450,000 appropriated in the 2018 state bonding bill. The remaining $450,000 for the project is
identified in the City’s Capital Improvements Program (CIP) budget for 2019. The expansion was started
in 2019 and added 3,320 square feet to the facility.
RECOMMENDATION
Staff finds that 360 Communities has done a great job providing services and managing the center in the
past. Staff is recommending that the City Council approve the attached lease agreement with 360
Communities for use of the Family Resource Center.
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ROSEMOUNT FAMILY RESOURCE CENTER LEASE AGREEMENT
This Agreement, made this ____________day of ____________, 2019, by and between the City
of Rosemount, MN, a Minnesota municipal corporation, (“Lessor”), and 360 Communities
(“360 Communities ”), a Minnesota nonprofit corporation (“Lessee”),
WITNESSETH. That 360 Communities, in consideration of the rents and covenants hereinafter
mentioned, does hereby hire and take from the Lessor, the following described Premises, situated
in the City of Rosemount, the County of Dakota, and the State of Minnesota, solely owned by the
Lessor:
The Rosemount Family Resource Center building and parking lot located on the
following describing property:
The West 205 feet of the North 532 of the Northeast Quarter of the Southeast Quarter,
except the South 212.5 feet thereof, all in Section 30, Township 115, Range 19, Dakota
County, Minnesota (the “Premises”).
1. TO HAVE AND TO HOLD, The Premises just as they are, and, except as detailed
herein without any liability of obligation on the part of Lessor of making alterations,
improvements or repairs of any kind on or about the Premises, for the term of ten (10) years from
December 17, 2019 (“Term”), for the following purposes, to-wit:
Serving children and families in the community through services such as crisis
intervention, providing food, clothing and housing assistance, parenting support,
academic support through mentorship, child care assistance, violence prevention
outreach, recreation, and related activities which 360 Communities will provide to the
community. This Lease, which Lessor is authorized to enter into under Minn. Stat. §
412.211 and 412.221, is entered into for the purpose of providing such services set forth
above as a governmental program, as authorized by Minnesota Statutes sections 299A.73,
in accordance with the Youth Initiative Grant. As consideration for this Lease, 360
Communities will establish, manage, operate, and maintain the government al program
described above and allow, encourage, and support participation from other service
organizations, including but not limited U of M Extension Service - Dakota County,
I.S.D. #196, Dakota County, local churches, City of Rosemount and other local service
providers, to conduct programs jointly with 360 Communities at the Premises. 360
Communities w ill keep and maintain the Premises during the aforesaid term and quit and
deliver up the Premises to said Lessor peaceably and quietly at the end of the aforesaid
term or at any previous termination thereof for any cause, in as good order and condition
and state of repair, reasonable use and wearing thereof and inevitable accidents excepted,
as the sa me now are or may be put into by said Lessor or by said 360 Communities.
2. Under Minn. Stats. Sections 412.211 and 412.221 and specific language contained in
Laws of 2018, Chapter 214, Art. 1, Sec. 21, Subd.22 (the “GO Bonding Legislation”) the State of
Minnesota has allocated $450,000 (the GO Grant”) to be given to the Lessor fo r the public
purpose of designing, constructing, furnishing and equipping an addition to the Lessor’s existing
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Family Resource Center to provide after-school tutoring, a food shelf, and other programs in
order to carry out the intent of the GO Grant.
This lease is being entered into in accordance with the provisions of the GO Bonding
Legislation, Minn. Stats. Section 16A.695, and the rules, regulations, and orders thereto in order
to carry out this public purpose and it is the intent of the parties that the lessee will implement
the goals of the Lessor in serving the public purpose as provide herein.
Lessee acknowledges that Lessor’s interest in the Premises will be subject to the Grant
Agreement, Commissioner’s Order and Declaration, and acknowledges that its rights in the
Premises are subject thereto.
Lessor and Lessee acknowledge that the proceeds of the GO Grant will be made available to the
Lessor pursuant to the terms of a General Obligation Bond Proceeds Grant Agreement
Construction Grant for the Family Resource Center Project (the “Grant Agreement”), a copy of
which has been provided to the Lessee. The following capitalized terms :”Commissioner of
MMB,” “Declaration” and “ Commissioner’s Order” shall have the meanings assigned thereto in
the Grant Agreement. Lessor agrees to comply with all terms and conditions of the Grant
Agreement and Lessee agrees to cooperate fully in so complying.
Any changes, additions, or modifications of this Lease must be agreed to in writing by the parties
and the Commissioner of MMB.
360 Communities agrees to provide the following to satisfy the program oversight requirements
of Minn. Stat. § 16A.695:
a. An initial program implementation plan;
b. Annual program budget showing program revenues and expenses; and
c. Annual program evaluation report.
Lessor shall evaluate the above documentation to determine, in its reasonable judgment,
whether 360 Communities is using the Premises for the approved governmental program. Failure
by 360 Communities to use the Premises for the approved governmental program shall constitute
an event of default, subject to the provisions set forth at Section 9 herein.
3. Lessor and 360 Communities agree that their respective duties toward maintenance of the
Premises shall generally be that 360 Communities will keep and maintain the interior of the
building on the Premises in good order and repair and Lessor shall keep and maintain the exterior
of the Premises and the surrounding grounds and parking lot on the Premises in good order and
repair. Without limiting the foregoing, the parties agree as follows:
a. 360 Communities shall, at its own cost and expense, keep the interior of the
Premises continually in a neat clean, and respectable condition, maintain in good order
and repair all plumbing, toilets, sinks, pipes and drains, remove garbage and refuse, pay
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for all heating, city water, storm and sanitary sewer disposal charge, all insurance
liability, or any other service used on the Premises during the Term of this Lease.
b. 360 Communities shall, at its own cost and expense, keep the sidewalks and
parking areas in front and along the Premises cleared of ice and snow or other
obstructions during the Term of this Lease.
c. Lessor shall, at its own cost and expense, replace all glass now or hereafter broken
on the Premises, mow the grass and replace, seed or maintain the grass as required and
perform necessary repairs to the structure of the Premises. Lessor shall, if necessary,
modify the Premises to the extent required to comply with all applicable Federal, State
and Municipal laws and regulations. Lessor shall furnish at Lessor’s own risk, cost and
expense any additional plumbing, ventilation, fire escapes, fire protection or other
improvements required by State, Municipal or other lawful authorities.
d. In the event 360 Communities fails to fulfill its obligations under this Section 3,
Lessor may, at its sole discretion, perform such work or pay such expenses required to
fulfill said obligations, and charge the full cost of same, including any administrative
expense, to 360 Communities. Failure to pay any such cost within 30 days of receipt of
said charge shall constitute an event of default, subject to the provisions set forth at
Section 9 herein.
4. 360 Communities will not make or suffer any waste on the Premises, and will not assign
or underlet the Premises or any part thereof without the written consent of Lessor, and will not
use the Premises nor any part thereof for any purpose called extra hazardous by insurance
companies. 360 Communities shall prohibit any liquors or beverages to be sold, kept or tolerated
on the Premises.
5. 360 Communities agrees that Lessor shall not be liable for any loss or damage which
may be sustained by the 360 Communities or others by the reason of the freezing, bursting,
overflowing or defect of any water, sewer, gas or steam pipes, closets or sinks, in or about the
Premises, nor for any loss or damage which directly or indirectly may be sustained by water,
sewer, or gas, nor for loss or damage caused by water, ice or snow from roof, skylights, trap-
doors or otherwise, nor for loss or damage by reason of the present or future condition of repair
of the Premises or for loss or damage arising from acts or omissions of 360 Communities.
6. 360 Communities agrees to permit Lessor or Lessor’s Agent, contractors or employees at
the Premises on all reasonable times, to view it or show it to parties wishing to purchase, lease,
or to make repairs, alterations or improvements to the building which is herein leased, and insert
such tools, appliances and pipes as they may deem necessary for the purpose of making repairs,
alterations and improvements, 360 Communities hereby waiving any and all claims and demands
for loss or damage or diminution of rent on account thereof, or on account of any obstruction to
sidewalk, entrance or windows, also permit for rent signs to be put and remain within the
Premises 30 days before the expiration of within terms, without hindrance or molestation.
7. Except for the negligence or intentional misconduct of Lessor, Lessor’s agents, servants
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or employees, 360 Communities shall insure against, and shall indemnify Lessor and hold it
harmless from, any and all liability for any loss, damage or injury to person or property, arising
out of use, occupancy or operations of 360 Communities and occurring in, on or about the
Premises, and 360 Communities hereby releases Lessor from any and all liability for the same.
360 Communities’ obligation to indemnify Lessor hereunder shall include the duty to defend
against any claims asserted by reason of such loss, damage or injury and to pay any judgments,
settlements, costs, fees and expenses, including attorney's fees, incurred in connection therewith.
8. If the buildings on the Premises shall be destroyed, or be so injured by the elements or
any cause, as to be untenantable and unfit for occupancy, then the liability of 360 Communities
for the rent of the Premises thereafter, and all right to the possession thereof, shall at once cease.
9. It shall be an event of default under this Lease if 360 Communities fails to perform any
obligation under this Lease. If such failure continues for thirty (30) days after written notice
from Lessor to 360 Communities, then the Lessor may cancel and annul this Lease at once, and
re-enter and take possession of the Premises immediately, and by force if necessary, without any
prior notice of intention to re-enter, and remove all persons and their property therefrom, and to
use such force and assistance in effecting and perfecting such removal as said Lessor may deem
advisable to recover at once full and exclusive possession of all the Premises, whether in
possession of said 360 Communities or of third persons, or vacant; or said Lessor may at
Lessor’s option at any time after such default or violation of condition or covenant, re-enter and
take possession of the Premises, without such re-entering working a forfeitures of the rents to be
paid and the covenants to be kept by said 360 Communities for the full term of this Lease.
10. This agreement may be terminated without cause upon 60 days written notice by either
party. In the event the governmental program is terminated or there is a change in the
governmental program that no longer allows the Lessor to continue to own or operate the
Premises for the governmental program, this agreement shall be automatically terminated. In the
event of automatic termination, notwithstanding any of the provisions of Section 9 above, Lessor
shall allow 360 Communities a reasonable amount of time to vacate the Premises, but no more
than 30 days.
11. All the covenants, terms and conditions of this Lease shall extend, apply to and firmly
bind the heirs, executors, administrators, successors and assigns of the respective parties hereto
as fully as the respective parties are themselves bound, but this provision shall not authorize the
assignment or underletting of this Lease contrary to the provisions herein contained.
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IN TESTIMONY WHEREOF, the parties have signed, sealed and executed this
instrument in duplicate the day and year first above writt en.
City of Rosemount 360 Communities
By:____________________________ By:____________________________
Title:__________________________ Title:__________________________
Date:__________________________ Date:__________________________
By:____________________________
Title:__________________________
Date:__________________________