HomeMy WebLinkAbout6.f. Community Center Armory Lease Agreement
EXECUTIVE SUMMARY
City Council Regular Meeting: August 16, 2022
AGENDA ITEM: Community Center/Armory Lease
Agreement
AGENDA SECTION:
Consent
PREPARED BY: Dan Schultz, Parks and Recreation
Director AGENDA NO. 6.f.
ATTACHMENTS: Proposed Lease Agreement APPROVED BY: LJM
RECOMMENDED ACTION: Motion to approve the 2022 - 2024 Armory Lease Agreement
with the State of Minnesota’s Department of Military Affairs
BACKGROUND
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.
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.
RECOMMENDATION
Staff recommends approval of the attached lease agreement with the State of Minnesota’s Department of
Military Affairs.
1
AGREEMENT BETWEEN THE STATE OF MINNESOTA,
DEPARTMENT OF MILITARY AFFAIRS AND THE CITY
OF ROSEMOUNT TO LEASE SPACE
The State of Minnesota, Department of Military Affairs (hereinafter referred to as “The State”) does
hereby lease to the City of Rosemount (hereinafter referred to as “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 two years beginning September 1,
2022, and continuing to June 30, 2024, 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 for
any reason at the convenience of the State. No claims for any damage that may result to the City from
any such cancellation shall be asserted or maintained against the State. In the event of cancellation,
the State will provide written notification to the city. The City reserves the right to cancel this lease
for any reason with 30 days written notice to the State.
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: Parties shall be responsible for their own acts subject to any limitation
of liability under Minn. Stat. §3.736. Tort Claims, Minnesota Statutes and other applicable law. The
2
State shall be held harmless from any and all claims or damages arising out of the City’s tenancy or
use of the property.
5. COMPLIANCE WITH LAW: The City agrees to comply with all laws, rules and
regulations of the United States and the State of Minnesota, the rules and regulations of the State for
the government and management of said armory, and all rules and requirements of the Police and Fire
Departments of the City of Rosemount. 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. The State shall not be responsible for the City’s
failure to obtain such permits or licenses, or failure to comply with any other requirement imposed
upon the City.
6. VACATION: The City agrees to vacate the leased premises, remove debris, and
restore same to ordinary cleanliness within one week after termination or cancellation of this lease,
unless a new lease or renewal period is negotiated.
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 upon cancellation.
7. ALLOCATION OF SPACE: The 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 space
designated City as described in Attachment B. The State and 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 this agreement.
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
3
by the City. The City and the State shall cooperate to avoid any conflicts between uses. To the extent
reasonably possible, the State shall provide the City with a written annual schedule of its use of the
armory’s shared facilities one year in advance. The City agrees to immediate terminate any use of
the facility that is determined by the State to interfere with military activities.
9. OPERATING COSTS: Parties agree 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 its pro-rata share of the electric and gas usage on a monthly basis. The State shall be responsible
for 70% of the facility’s electric bill, and 48% of the gas meter bill. The electric meter associated with
the City’s sole use space shall be the full responsibility of the City.
10. REPAIR AND MAINTENANCE: 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, but are not
limited to cleaning and routine maintenance duties for the building, mechanical air handler contract,
chiller contract, janitorial supplies, grounds keeping, and snow and ice removal. Unless otherwise
agreed to in the annual Maintenance Agreement between parties, the following responsibilities apply:
a) MINOR REPAIR AND MAINTENANCE: The State shall be responsible for
maintenance and repair of any specially fenced secure area for military vehicles, any
accessory building utilized to store government equipment, for all areas designated
MNARNG sole-use space as described in Attachment B, and for shared areas incident
to and after use by the National Guard. The City shall be responsible for maintenance
and repair of all City sole-use space as designated in Attachment B, and for shared
areas incident to and after use by the City (or City generated leases) of the building.
The City shall have personnel on the premises at all times during City use or City
4
generated lease of the building,and shall be responsible for securing the building when
personnel are not present.
b) CAPITAL REPAIRS AND NONROUTINE MAINTENANCE: Each party
acknowledges that certain non-routine 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 non-routine maintenance to the
building shall be subject to the following:
i. ROOF REPLACEMENT: The facility contains approximately 114,337
square feet of roof. The parties shall share in the cost of reasonably necessary
roof replacement per their pro-rata share. The city shall be responsible for full
roof replacement costs of roof directly 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.
ii. MECHANICAL REPAIRS: (HVAC/Installed mechanical
equipment) The City shall be responsible for 36% of reasonable repair or
replacement to the HVAC and installed mechanical equipment that services
the entire building. The State shall be responsible for 64% of reasonable repair
or replacement to the HVAC and installed mechanical equipment that services
5
the entire building. The City shall be responsible for any mechanical upgrades
solely beneficial to the designated City space as listed in Attachment B.
iii. 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.
iv. 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 for fifty percent
(50%) of all capital repairs and non-routine maintenance to the
gymnasium/drill hall. The State shall be responsible for all maintenance and
repair of damages directly incident to and after use by the State.
v. OTHER REPAIRS AND MAINTENANCE: Each party will be solely
responsible for any and all damage arising out of its negligent or willful
misconduct, or the negligent or willful misconduct of its invitees. If additional
maintenance and repair needs arise that are not accounted for in the Annual
Maintenance agreement or otherwise in this lease or its attachments hereto,
6
each party shall be responsible for all repairs and maintenance to its sole-use
spaces as designated in Attachment B, and to common spaces incident to that
Party’s use. Parties agree to cooperate and share in other reasonable, agreed
upon maintenance and repair costs pursuant to their pro-rata share.
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: Parties are self-insured pursuant to the Minnesota Tort Claims Act, Minn.
Stat. §3.736.
7
IN TESTIMONY WHEREOF, both parties have hereunto set their hands and seals this _____
day of ________________, 20___.
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