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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