02/13/2012 - 7446FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 '
QIY OF
FkIDLEY
The City of Fridley will not discriminate against or harass anyone in the admission or access to, or treatment, or
employment in its services, programs, or activities because of race, color, creed, religion, national origin, sex, disability,
age, marital status, sexual orientation or status with regard to puhlic assistance. Upon request, accommodation will be
provided to allow individuals with disabilities to participate in any of Fridley's services, programs, and activities. Hearing
impaired persons who need an interpreter or other persons with disabilities who require auxiliary aids should contact
Roberta Collins at 572-3500. (TTD/572-3534)
PLEDGE OF ALLEGIANCE.
�Mk"�� C �` CU'� �, �C�
PRESENTATION: Fridley Fire Department Flames
Auxiliary
APPROVAL OF PROPOSED CONSENT AGENDA:
OLDBUSINESS: al� �������
yGC4'IL6uLlL
1. Second Reading of an Ordinance Amending
Chapter 2, Section 2.06, of the Fridley City
Charter, to Allow for a Vacancy of a Council
Member to be Filled by Appointment . 1- 4
2. Motion to Receive a Donation of Three
Rapid Intervention Team (RIT) Bags
from the Fridley Fire Department Flames
Auxiliary ............................. F
3. Appointment to Appeals Commission 6
4. Claims(154003-154081)
5. Licenses ..............
7-14
ADOPTION OF AGENDA: j� ��GG�
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OPEN FORUM. VISITORS: Consideration of items not
on Agenda — 15 minutes.
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PUBLIC HEARfNGS: �'(,����k ����'� � t P�.(L«�"
6. Preliminary Assessment Hearing for
SVeet Rehabilitation Project No.
ST2012-01 ,,. ............ .,....... . 17 - 18
o�v�c� -S,,u�li� �i�i�m �=sF3
eGas�o �� ��U{;.Si��l�- �.'a�'
7. Cons+der Issuing an On-Sal 32°l0
Mait Liquor and Wine License to
Bombay Palace, Inc., Located at
765 — 53`tl Avenue N.E. (Ward 1) .... 19 - 20
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8. Resolution Approving a Subdivision, Lot Split,
LS #12-01, to Create Two Buildable Lots, Generally
Located at 551 Hugo Street N.E. (Ward 3) (Tabled
February 6, 2012) ............................... 21 - 28
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NEW BUSINESS:
9. Resolution Ordering 2012 Street Rehabilitation
Project No. ST 2012-01, Authorizing Preparation
of Final Plans and Specifications, Authorizing
the Advertisement for Bids, and Authorizing
Preparation of Preliminary Proposed Assessment
Roll for Pending Assessment Reporting
Purposes.................. J....................... 29 - 33
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15 - 16 1�. Resolution Ordering Preparation of a Preliminary
Report and Preliminary Plans and Specifications
for the Oak Glen Creek Improvement Project
No. 384� ..............:..............j............. 34 - 37
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FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13. 2012 PAGE 2
NEW BUSINESS (CONTINUED):
11. Resoiution Setting a Public Hearing for April 9,
2012, to Create Tax Increment Financing
District #20 ...................................... 38 - 41
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Resolution Approving Amendment to
Existing Residential Curbside Recycling
Service Contract with Aflied Waste
Services .......................................... 42 - 45
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13. Reso�ution Approving Residential Curbside
Recyding Service Contract with Allied Waste
Services .......................................... 46 - 63
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14. Resoiution Approving and Authorizing Execution
of Liquor Store Lease Between the City of Fridley
and ZCOF TL Fridley, LLC .......... . 64 - 66
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ADJOURN.
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CffY OF
FRIDLEY
FRIDLEY CITY COUNCIL MEETING
OF FEBRUARY 13, 2012
7:30 p.m. - City Council Chambers
Attendance Sheet
Please nrint name. address and item number vou are interested in.
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CffY OF
FRIDLEY
FRIDLEY CITY COUNCIL MEETING
OF FEBRUARY 13, 2012
7:30 p.m. - City Couacil Chambers
Attendance Sheet
Please print name. address and item number vou are interested in.
Print Name (Clearly) 9ddress Item No.
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CITY COUNCIL MEETING OF FEBRUARY 13, 2012
CRY OF
FRIDLEY
The City of Fridley will not discriminate against or harass anyone in the admission or access to, or
treatment, or employment in its services, programs, or activities because of race, color, creed, religion,
national origin, sex, disability, age, marital status, sexual orientation or status with regard to public
assistance. Upon request, accommodation will be provided to allow individuals with disabilities to
participate in any of Fridley's services, programs, and activities. Hearing impaired persons who need an
interpreter or other persons with disabilities who require auxiliary aids should contact Roberta Collins at
572-3500. (TTDl572-3534)
PLEDGE OF ALLEGIANCE.
PRESENTATION: Fridley Fire Department Flames Auxiliary
APPROVAL OF PROPOSED CONSENT AGENDA:
OLD BUSINESS:
1. Second Reading of an Ordinance Amending
Chapter 2, Section 2.06, of the Fridley City
Charter, to Allow for a Vacancy of a Council
Member to be Filled by Appointment .................................................................. 1- 4
NEW BUSINESS:
2. Motion to Receive a Donation of Three
Rapid Intervention Team (RIT) Bags
from the Fridley Fire Department Flames
Auxiliary....................................................................................................... 5
3. Appointment to Appeals Commission ................................................................ 6
4. Claims (154003 — 154081) ................................................................................. 7- 14
5. Licenses ........................................................................................................ 15 - 16
FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13, 2012 PAGE 2
ADOPTION OF AGENDA:
OPEN FORUM, VISITORS: Consideration of items not on Agenda — 15 minutes.
PUBLIC HEARINGS:
6. Preliminary Assessment Hearing for
Street Rehabilitation Project No.
ST2012-01 ......................................................................................................... 17 - 18
7. Consider Issuing an On-Sale 3.2%
Malt Liquor and Wine License to
Bombay Palace, Inc., Located at
765 — 53rd Avenue N.E. (Ward 1) ...................................................................... 19 - 20
OLD BUSINESS:
8. Resolution Approving a Subdivision, Lot Split,
LS #12-01, to Create Two Buildable Lots, Generally
Located at 551 Hugo Street N.E. (Ward 3) (Tabled
February6, 2012) ............................................................................................. 21 - 28
NEW BUSINESS:
9. Resolution Ordering 2012 Street Rehabilitation
Project No. ST 2012-01, Authorizing Preparation
of Final Plans and Specifications, Authorizing
the Advertisement for Bids, and Authorizing
Preparation of Preliminary Proposed Assessment
Roll for Pending Assessment Reporting Purposes .......................................... 29 - 33
10. Resolution Ordering Preparation of a Preliminary
Report and Preliminary Plans and Specifications
for the Oak Glen Creek Improvement Project No. 380 .................................... 34 - 37
FRIDLEY CITY COUNCIL MEETING OF FEBRUARY 13. 2012 PAGE 3
NEW BUSINESS (CONTINUEDI:
11. Resolution Setting a Pubiic Hearing for April 9,
2012, to Create Tax Increment Financing
District#20 ....................................................................................................... 38 - 41
12. Resolution Approving Amendment to
Existing Residential Curbside Recycling
Service Contract with Allied Waste Services ................................................... 42 - 45
13. Resolution Approving Residential Curbside
Recycling Service Contract with Allied Waste
Services........................................................................................................... 46 - 63
14. Resolution Approving and Authorizing Execution
of Liquor Store Lease Between the City of Fridley
and ZCOF TL Fridley, LLC .............................................................................. 64 - 66
15. Informai Status Report ..................................................................................... 67
ADJOURN.
CITY OF
FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING OF
February 73, 2012
To: William W. Burns, City Manager� �
From: Dazin Nelson, Finance Director �
Debra Skogen, City Clerk �
Date: Februazy 8, 2012
Re: Second Reading on an Ordinance Amending Section 2.06 of the Fridley Charter
Pertaining to Vacancies in the Council
The Minnesota State Legislature adopted new Elections laws in 2010 changing certain time
periods when special elections can be held. This matter was brought to the Charter Commission
for their review. The Charter Commission reviewed other City Charters and proposed an
amendment. The amendment would allow for a councilmember vacancy to be filled by
appointment until the next regulaz election, rather than calling far a special election . The
Commission met with the City Council at a joint conference session on May 16, 2011 for their
input and recommendation.
The Charter Commission met on October 3, 2011 and amended the ordinance based on their
discussions with the City Council. The Charter Commission met on November 7, 2011, and
recommended approval of an ordinance to amend the city charter, as shown in Attachment 1, and
directed staff to forwazd it to the City Counci� for their action.
Chapter 410.12, subd. 7, of the Minnesota Statutes allows an amendment by ordinance upon
recommendation of the Charter Commission. It requires publication of the proposed amendment
at least two weeks before the public hearing before the City Council, and the ordinance must be
adopted within one month of the public hearing requiring a unanimous vote of the City Council.
The public heazing notice and proposed ordinance was published in the Fridley Sun Focus on
January 5, 12 and 19, 2012. The City Council held the public heazing on January 23, 2012, and
the first reading on February 6, 2012. There was no opposition to the amendment.
Staff recommends holding the second reading of an Ordinance Amending Chapter 2, Section
2.06 of the Fridley City Charter to allow for a Vacancy of a Councilmember to be Filled by
Appointment.
1
Attachment 1
CITY OF FRIDLEY MINESOTA
COUNTY OF ANOKA
ORDINANCE NO.
AN ORDINANCE AMENDING CI-IAPTER 2, SECTION 2.06 OF THE FRIDLEY CITY
CHARTER TO ALLOW FOR A VACANCY OF A COUNCILMEMBER TO BE FILLED BY
APPOINTMENT
The City Council of the City of Fridley hereby finds, after review, examination and
recommendation by the Fridley Charter Commission and staff, that the Fridley City Charter be
hereby amended as follows:
FRIDLEY CITY CIIARTER
CHAPTER 2. CITY COUNCIL ORGANIZATION
Section 2.06. VACANCIES IN THE COIJNCIL.
1. A vacancy in the council shall be deemed to exist in case of the failure of any elected
person elected thereto to qualify on ar before the date of the second regulaz meeting of
the new council, or by reason of the death, resignation, removal from office, continuous
absence from the City for more than three (3) months, failure to attend anv council
meetin�s for three (3) consecutive months, or conviction of a felony of any such person
whether before or after their qualification; or by ceasing to be a resident of the city or the
ward from which elected. In each such case, within thirty (30) days the council shall by
resolution declaze a vacancy to exist. (Re£ Ord. 1141)
2. If a vacancy is declared to exist, the Council shall, within 30 days, appoint by majority vote
a qualified person to assume the office until the next eeneral election. If the council cannot
aQree on an apnointment within the required timeframe, the Mayor shall appoint a qualified
person to fill the position. The term of office to be filled at the next general election shall be
for the unexoired nortion of the term or for a full term denendingon the timeframe when the
vacancv has been declared to exist. *^ � -'-� �-° F,:��° r_«,.,. ..e.,. e,e,..:,... ,.r.wo ,.a:,.e
,...t:,,., .. ,.1,...,,a A.e r....«,.:1 ..l..,tt ,.,.lt .. :.,t ote,.ti,.« �.. l.0 1.otA .,,.r to�� r6�., rl,:.e,.
e
i�m .7...... « .. tl...r� ..:..�.. �.,.� /LG\ .7...... �...... kL.e h:...e .. ...1. . .. .7ant�.oa �ri,o
2
Ordinance No. Page 2
• -- • - • . . . . .. - • • - • - - . . . - • - - !t"V-7SfR!�rir�i7l�ilT.ir�Y7.q
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3. 6. If the Mayor s position is declared vacant, the Councilmember-at-Large shall serve as
Mayar until the end of the Mavor's term � f�a. The Councilmember-at-Laree
shall then be declazed vacant and it shall be filled as defined in SecUon 2.06.2 of the Citv
Charter.
4. � If at any time the membership of the Council is reduced to less than three (3) members, the
City Manager sha11 order a special election to be held not less than thirty (30) days nor more
than sixty-five (651 davs from the time the multiple vacancies occurred A neriod of eiQht
(81 to twelve (121 consecutive working davs shall be desie,nated for the purpose of filing
nomination petitions in accordance with Section 4.06. The winner(sZof the special election
3
Ordinance No. _
Page 3
shall be by a nluralitv of votes cast for each of�ice, reeazdless of the number of candidates
and sha11 take office immediately upon certifica6on bv the boazd of canvass and shall fill the
unexpired terms of said offices. .. ..
t, .,. �...: we ....e..,w.,....w:.. ,.F.we r,.....,.:i .., r,. f..e ic� inoF c..o,.:��to,.+:,,�, zi�ci�c
- .., .,....b ..,� """'.,....,...t, .,_ ,...� �.,...•'•• »r •.. -- •' ��r �-'--• "r---"' ------"-- -' --' ' -,
n�a ��� n_a oc� n..a in�n�
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5. � If the position of City Manager is vacant, the Ciry Clerk shall order such an election. If the
position of City Clerk is also vacant, the Chief Judge of District Court of the State of
Minnesota within whose jurisdiction the corporate offices of the City of Fridley lie shall
order such an election. (Re£ Ord. 1034)
PASSED AND ADOPTED BY THE CITY COUNCIL OF TI� CITY OF FRIDLEY THIS _
DAY OF , 20 .
Attest:
Debra A. Skogen, CiTy Clerk
Public Hearing:
First Reading:
Second Reading:
Publication Date:
January 23, 2012
February 6, 2012
February 13, 2012
February 23,2012
n
Scott J. Lund, Mayor
'= AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 13, 2012
CRY OF
FRIDLEY
To: William Burns, City Manager��°
From: John Berg, Fire Chief
Re: Flames Donation
Date: February 10, 2012
Since the Fridley Fire Department Flames Auxiliary incorporated in 2010 they have worked very
hard to contribute to the community by collecting food for SACA, raking leaves for seniors,
making blankets and booties for patients and raising money for projects. They also deliver much
appreciated food and beverages to the firefighters at emergency scenes and organize social
events for the firefighter's families.
This past fall they approached the Fire Depar[ment and offered to buy a piece of equipment. It
was suggested that they look at the cost of puichasing a Rapid Intervention Team (RIT) bag. A
RIT bag carries an air supply and essential tools for rescuing a firefighter that needs assistance.
The Flames axe coming to the Februazy 13 council meeting to donate not only one but three RIT
bags that will be placed on apparatus in each of the three fire starions.
I cannot express my appreciation enough for this group of people who have shown their care for
our community and this Fire Department over and ovex again. I thank them for their genexous
donation ofthe three RIT bags.
5
CfiY OF
FRIDLEY
AGENDA ITEM
COUNCIL MEETING OF FEBRUARY 13, 2072
APPOINTMENT TO COMMISSION
Appeals Commission
David Ostwald Term Expires: April 1, 2015
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CITY OF
FRIDLEY
AGENDA ITEM
COUNCIL MEETING OF FEBRUARY 13, 2012
CLAIMS
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154003 - 154081
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an oF
FRIDLEY
CITY COUNCIL MEETING OF FEBRUARY 13, 2012
LICENSES
TYPE OF LICENSE: APPLICANT: - APPROVED BY:
LAWFUL GAMBLING FRIDLEY HISTORICAL PUBLIC SAFETY
SOCIETY CITY CLERK
MARY S. MEYERS
15
'= AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 13, 2012
°'YOF LICENSES
FRIDLEY
16
'�
CfiY OF
FRIDLEY
TO:
FROM:
DATE
AGENDAITEM
CITY COUNCIL MEETING OF FEBRUARY 13, 2012
William W. Burns, City Manager A1C�`
�l`1
James Kosluchar. Public Works Director
February 8, 2012
PW 12-018
SUBJECT: Preliminary Assessment Hearing on Street Rehabilitation Project No. ST2012-01
Pursuant to discussion and direction of the City Council, a feasibility report has been prepared by
the City of Fridley Public Works Department with reference to the 2012 Street Rehabilitation
Project No. ST2012-01. On December 12, 2011, this report was presented to the City Council.
The Ciry Council set a date for a public hearing on assessments for January 23, 2012 at 7:30 P.M.
Staff was informed on January 23 by the Ciry Attorney that the published notice was technically
flawed in that it did not provide the total estimated cost of the project. The City Council
rescheduled the public hearing on assessments for February 13, 2012 at 7:30 P.M.
Staff worked with the City Attorney carefully in order to follow all proper procedures for publishing
a revised notice of advertisement and re-mailed notice. Staff was able to advertise with a
corrected publication in accordance with statutory requirements, with publication on January 26
and February 2, 2012 in the official newspaper. Affected property owners subject to assessment
were mailed notice of the public hearing on January 26`h, 2012.
The residential portion of this project includes the Rice Creek Terrace neighborhood. The
commercial portion of the project includes Fourmies Avenue and TH65 West Service Road. Two-
hundred and twenty (220) properties are subject to residential assessment and twelve (12)
properties are subject to commercial assessment on the project, in conformance with the City of
Fridley's Roadway Major Maintenance Financing Policy (see attached project map).
Staff also invited 274 neighboring property owners to a project open house held on November 16,
2012. At the open house, staff presented project construction information, including project scope
and tentative schedule. Approximately 72 property owners and Council Members attended the
open house. Staft was available to address questions and concerns from attendees. After the
first meeting, Monroe Street from 67�h to Rice Creek Terrace was eliminated from the project upon
additional review by staff.
Staff requests that the City Council open the preliminary assessment hearing on Street
Rehabilitation Project No. ST2012-01 and hear all those who desire to address the Council.
JPK:jpk � 7
Attachments
�_
r.� �
�,
��'�
;�
��,���
. .�r�
l- ��
� �
�•
�
(7TY OF
FRIDLEY
To:
From:
Date
AGENDA ITEM
CITY COUNCIL MEETING OF
February 73, 2012
William W. Bums, Ciry Manager�ql°
Darin R. Nelson, Finance Director �
Debra A. Skogen, City Clerk�
February 8, 2012
Re: Public Heazing for 3.2% Malt Liquor and Wine License Applications for Naveen
Shrestha, President, Shrestha Group Inc dba Bombay Palace , located at 765 53`a
Avenue NE, Fridley, MN
Naveen Shrestha has applied for a 3.2% malt liquor license and a wine license to operate a business
known as Shrestha Crroup Inc., dba Bombay Palace, located at 765 53rd Avenue NE (Formerly
Himalayan Restaurant II). The lease for the Himalayan Restaurant II was for the period of one year.
Mr. Shrestha decided not to continue that business, terminated the lease and returned the liquor
license to staff.
Mr. Shrestha has joined with the owner of the building Joginder Cheema and a new chef Manjit
Singh to open the new business Bombay Palace. Each individual will have ownership of 33 1/3%
towards the new business.
Section 603.07 of the Fridley City Code requires a public heazing be held to consider the approval
of an on-sale intoxicating liquor license. The City Code also requires that the license can not be
approved during the same meeting. The Notice of Public Hearing, Attachment A, was published in
the Fridley Sun Focus on Februazy 2, 2012 with the ten day advance notice requirement.
The Police Department has conducted a background investigation on all Uuee owners and has found
no reason to deny the application at this time. The three owners have no criminal history or
chazacter issues which would make them ineligible to hold the license.
A wine license requires a minimum seating capacity of 50 persons. Bombay Palace has a seating
capacity for 96 persons.
Staff recommends holding a public hearing for an intoxicating liquor license.
19
Attachment 1
CITY OF FRIDLEY
PUBLIC HEARING BEFORE THE
CITY COUNCIL
(Legal Notice)
Notice is hereby given that the Fridley City Council will hold a public hearing at the City Municipal
Center, 6431 University Avenue NE in Fridley, Minnesota, on Monday, February 13, 2012, at 7:30
pm. The purpose of the meeting is on the question of issuing an on-sale 3.2% Malt Liquor and Wine
License to Bombay Palace Ina, located at 765 53rd Avenue NE. The officers of the Corporation aze
Naueen Shrestha (Himalayan Restaurant), Joginder Cheema (India House) and Manjit Singh.
Hearing impaired persons planning to attend who need an interpreter or other persons with
disabilities who require aiixiliary aids should contact Roberta Collins at 572-3500 no later than
February 8, 2013.
Anyone having an interest in this matter should make their interest known at this public hearing.
/s/ Debra A. Skogen, City Clerk
Published: Febn�ary 2, 2012 in the Fridley Sun Focus
2�
AGENDA ITEM
C1TY COUNCIL MEETING OF FEBRUARY 13, 2012
arr oF
FRIDLEY
Date: Fehruary 8, 2012
To: William Burns, City Manager ��"
From: Scott Hickok, Community Development Director
Julie Jones, Planning Manager
Stacy Stromberg, Planner
Suhject: Lot Split Request, LS #12-01, Housing and Redevelopment Authority in and for the City of
Fridley
INTRODUCTION
Paul Bolin, Assistant Executive Director of the
City's Housing and Redevelopment Authority
(HRA) is seeking a lot split, to sub-divide the lot
at 551 Hugo Street, to create two single family
lots, for the HRA's Housing Replacement
Program (HRP). Sub-dividing this large tot will
allow for the construction of two new single
family homes.
PREVIOUS CITY COUNCIL ACTION
At the February 6, 2012 City Council meeting
some questions came up about the history of
approving subdivisions with minor code
deficiencies and how the proposed subdivision
relates to that.
The Council may recall, in 2003, the
"Theilmann Estates" plat was approved to
create 8 new single family lots, which was
generally located at 1540 Rice Creek Road.
When that subdivision was approved, the City
recognized that 7 of the lots were deficient is
meeting the lot width requirement by 2 ft. The
petitioner for this request had articulated to
staff that years ago, Outlots A and B, which
were part of 1540 Rice Creek Road, were given
to his parents in exchange for right-of-way
along Briardale Road. The intent of the
exchange was that by providing Outlots A and B to the petitioners parents, the property could one day
be spilt. However, the 15.53 ft. Outlots that were ey�hanged for the right-of-way, were short of being
L7
sub dividable to current code standards. As a result, staff further reviewed the Subdivision ordinance
and determined that there is a section within that ordinance that states if the Planning Commission or
City Council upon finding any regulations or requirements of the Code that cannot be met by a
particular subdivision, may grant approval of a subdivision with minor variances provided the variation
isn't contrary to the intent and purpose of the regulation.
The proposed subdivision complies with lot width requirements, but is short in meeting the lot size
requirements by 750 sq. ft. When Riverview Terrace was platted in 1922, all of the lots were platted
with a 110 ft. lot depth and a 25 ft. lot width for interior lots and 30 ft. lot width for corner lots. The
proposed lots will be 75 ft. wide and 110 ft. deep,
therefore meeting the intent of the plat that was
originally approved in 1922. Instead of leaving one
large lot in the middle of 50 ft. wide lots, this
subdivision will create the opportunity for the
construction of 2 single family lots on 75 ft. wide
lots, which is actually larger than the majority of
neighboring lots.
The Council will recall, that in 2000 the O-6,
Overlay District that was approved allows small
lots to be considered conforming which then
allows property owners to expansion and re-invest
in their homes. The 0-6 Overlay District required
substandard lots to be recorded prior to
December 29, 1955; as a result, the proposed
subdivision isn't covered under the O-6 Overlay. However, approving the proposed subdivision would
be consistent with the Riverview Terrance neighborhood, which isn't contrary to the intent and purpose
of the code regulation.
PLANNING COMMISSION RECOMMENDATION
At the January 18, 2012, Planning Commission meeting, a public hearing was held for LSfi12-Ol. After a
brief discussion, the Planning Commission recommended approval of the lot split request, LS #12-01,
with the stipulations as presented.
THE MOTION CARRIED UNANIMOUSLY.
PLANNING STAFF RECOMMNEDATION
City Staff recommends concurrence with the Planning Commission.
STIPULATIONS
1. Al! necessary permits sha!! be obtained prior to construction.
2. Grading and drainage plan to be approved by City's engineering staff prior to the issuance of any
building permits, in order to minimize impacts to the surrounding properties.
3. Property owner ot trme of building permit applicaYian shall provide proof that any existing wells
or individua! sewage treatment systems located on the site are properly capped or removed.
4. Property owner at time of building permit application for the construction of each single family
home shal! pay $750.00 required pprk dedicotion fee.
5. Property owner at time of burlding permit application for the construcYion of each single family
home sha0 pay all water and sewer connection fees.
22
City of Fridley Land Use Application
LS #12-03 January 18, 2012
GENERAL INFORMATION
Applicant:
City of Fridley — HRA
Paul Bolin
6431 University Avenue NE
Fridlev MN 55432
Requested Action:
Lot S�lit
Purpose:
To create an additional single-family lot
Existing Zoning:
R-1 (Singie Family Residential)
Location:
551 Hu�o Street
Size
16,500 sq. ft. .37 acres
Existing Land Use:
Vacant land
Surrounding Land Use & Zoning:
N: Single Family & R-1
E: Single Family & R-1
S: Single Family & R-1
W: Single Family & R-1
Comprehensive Plan Conformance:
Consistent with Plan
Zoning Ordinance Conformance:
Section 205.07 requires a minimum lot size
of 9,000 sq. ft. and a minimum lot width of
75 ft.
The proposed lots are substandard in lot
size requirement; however they meet the
lot width requirement. Recognition of the
substandard can be done through the lot
split process
Zoning History:
• 1922 — Lot is platted.
• House built prior to 1949.
• 1966 — Detached garage constructed.
• 1995—Additiontohome.
• 2011— Home and garage demolished.
Legal Description of Property:
Lots 19 thru 24, Block G, Riverview Heights
SPECIAL INFORMATION
Public Utilities:
Water and sewer services are available in the street
Transportation:
Hugo Street will provide access to both newly
created parcels
Physical Characteristics:
lot with a few trees
SUMMARY OF PROJECT
Paul Bolin on behalf of the City's HRA is seeking a
lot split, to sub-divide the lot at 551 Hugo Street, to
create two single family lots, for the HRA's housing
replacement program. Sub-dividing this large lot
will allow for the construction of two new single
familv homes.
SUMMARY OF ANALY515
City Stoff recommends approval of this lot split
request.
• Provides additional homeownership
opportunities within the City.
CITY COUNCIL ACTION/60 DAY DATE
City Council — February 6, 2012
23
Subject Property
Staff Report Prepared by: Stacy Stromberg
LAND USE APPLICATION
LOT SPLIT #12-01
ANALY515
Paul Bolin, Assistant Executive Director of the City's Housing and Redevelopment Authority (HRA) is
seeking a lot split, to sub-divide the lot at 551 Hugo Street, to create two single family lots, for the
HRA's Housing Replacement Program (HRP). Sub-dividing this large lot will allow for the construction of
two new single family homes. `°' "' � �
The original home on this lot was constructed
prior to 1949, with a detached garage
constructed in 1966. An addition to the home
was constructed in 1995. The HRA acquired the
property in 2011 and both the home and garage
were torn down as a result of extensive water
damage.
The property is zoned R-1 Single Family as are all
surrounding praperties. Fridley City Code
requires that single-family lots in the R-1 zoning
district be a minimum of 75 ft. in width with a
minimum total lot area of 9,000 sq. ft. Both of
the proposed lots, "Parcel A" and "Parcel B" will
be 75 ft. in width and 110 ft. deep, which is 8,250 sq. ft. in size. As a result, both lots will be
substandard in meeting the lot size requirement by 750 sq. ft.
Section 211 of the Subdivision ordinance states that if the Planning Commission or City Council find that
any regulations or requirements of the Code cannot be met by a particular subdivision, they may grant
approval of a lot split request with minor variances. Recognizing minor code deficiencies through the
platting process is not intended to set precedence for future variance requests.
It should be noted that when Riverview Terrace was platted in 1922, all of the lots were platted with a
110 ft. lot depth and a 25 ft. lot width for interior lots and 30 ft. lot width for corner lots. A majority of
the lots have been combined to meet the 50 ft. Iot width requirement; however the lot depth is still 110
ft. These lots are consider conforming as a result of the 0-6, Overlay District that was approved in 2000
to permit expansion and new construction on lots created and recorded prior to December 29, 1955,
that are between 5,000 and 7,499 square feet in size.
The proposed lot split meets the intention of the Riverview Terrace plat and will be consistent with the
size of the majority of the lots in this area. The creation of two lots versus one large lot will also allow
the HRA to meet the goals of the HRP by providing additionai housing opportunities and reinvestment
in this neighborhood.
The City hasn't heard from any neighboring property owners.
STAFF RECOMMENDATION
City Staff recommends approval of this lot spfrt request, with stipulations.
. Provide additional homeownership opportunities.
24
STIULATIONS
City Staff recammends that if the lot split is granted, the following stipulations be attached.
1. All necessary permits sho/l be obtoined prior to constructian.
2. Grading and drarnage plan to be approved by City's engineering staff prior to ihe issuance of any
building permits, in order ta minimize impacts to the surrounding propertres.
3. Property owner at time of building permit application shall provide proof thot any exisfing wells
or individuol sewage treatment systems located on the site ore properly capped or removed.
4. Property owner at Yime of building permif applrcation for the construction of each single family
home shall pay $750.00 required park dedication /ee.
5. Property owner at time of building permit application for the construction of each single family
home shall pay al! water and sewer connection fees.
25
RESOLUTION NO.
A RESOLUTION APPROVING A SUBDIVISION, LOT SPLIT, LS #12-01,
TO CREATE TWO BUILDABLE LOTS, GENERALLY LOCATED AT 551 HUGO
STREET
WHEREAS, the Planning Commission held a public hearing on the Lot Split, LS #12-01,
on January 18, 2012 and recommended approval; and
WHEREAS, the City Council at the February 12, 2012 meeting approved the Lot Split
request; and
WHEREAS, such approval was to create two buildable single family home lots, based
on new legal descriptions which read as follows:
Proposed Parcel "A". Lots 19, 20 and 21, Block G, RIVERVIEW HEIGHTS,
Anoka County, Minnesota,
Proposed Tract "B": Lots 22, 23, and 24, Block G, RIVERVIEW HEIGHTS, Anoka
County, Minnesota; and
WHEREAS, the configuration of Lot Split LS #12-01 matching the legal descriptions
above has been attached as Exhibit B; and
WHEREAS, the City has received the required Certificate of Survey from the petitioner;
and
WHEREAS, a variance is granted through this lot split process with respect to minimum
lot size;
WHEREAS, the City has approved Lot Split, LS #12-01 with 5 stipulations as outlined in
Exhibit A; and
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley
directs the petitioner to record this Lot Split at Anoka County within six (6) months or
said approval shall become null and void.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF FRIDLEY THIS
12TH DAY OF FEBRUARY 2012.
ATTEST:
DEBRA A. SKOGEN - CITY CLERK
SCOTT J. LUND - MAYOR
26
EXHIBIT A
STIPULATIONS
City Staff recommends that if the lot split is granted, the fol/owing stipulations be attached.
1. AI! necessary permits shal! be obtained prior to construction.
2. Grading and drainage plon to be approved by City's engineering staff prior to the issuance of any
bui/ding permits, in order to minimize impacts to the surrounding properties.
3. Property owner at time of building permit application shall provide proof that any existing wells
or individual sewage treatment systems located on the site are properly capped or removed.
4. Property owner at time of building permit applicafion for the construction of eoch single family
home shall pay $750.00 required park dedication fee.
S. Property owner at time of building permit applicotion for the construction of each single fomily
home shall pay a!I water ond sewer connection fees.
2%
'�
QiY OF
FRIDLEY
TO:
FROM:
DATE:
AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 13, 2012
William W. Burns, City Manager ��
James P. Kosluchar, Public Works Director
Layne R. Otteson, Assistant Public Works Director
February 8, 2012
PW12-019
SUBJECT: Street Rehabilitation Project ST2012-01 - Resolution Directing Preparation of Final
Plans and Ordering Advertisement for Bids
The attached resolution directs preparation of final plans and specifications and authorizes the
advertisement for bids for the 2012 Street Rehabilitation Project No. ST2012-01. The City's annual
street rehabilitation program includes a residential neighborhood and two commercial streets in close
proximity. The total project length is approximately 3.6 miles (19,800 centerline feet) of which there
are 3.4 miles of residential streets and 0.2 miles of commercial streets. Street work will include
pavement rehabilitation, drainage improvement, and curb replacement. Utility work will include
approximately 1,850 feet of water main replacement and miscellaneous utility upgrades.
The residential portion of this project includes the Rfce Creek Terrace nelghborhood. The
neighborhood is bordered by Highway 65 to the east, University Avenue to the west, Rice Creek to
the north, and Mississippi Street to the south. The streets were constructed between 1968 and 1974.
The low pavement condition rating and increased maintenance by the street division staff supports
rehabilitation. Subsurface investigation has found that the existing pavement has minimal aggregate
base support throughout the neighborhood. The reclaiming process will grind and blend the pavement
into the underlying sand and produce a stronger base upon which to pave. The improved base
aggregate will be shaped and topped with a new 2" asphalt pavement.
Neighborhood utility upgrades include targeted water main replacement on Washington Street and Rice
Creek Terrace along with hydrant replacement. Several storm sewer structures have been identified
for rehabilitation as well as spot repairs to the sanitary sewer system. Staff wilf pursue opportunities
to install rain gardens with those interested residents. Staff has and will continue to communicate with
residents to discuss any service line maintenance or repairs to be coordinated with the project.
The commercial portion of the project includes Fourmies Avenue and TH65 West Service Road. Both
commercial streets will be rehabilitated using the same process as residential, but the commercial
street section will be rehabilitated with added thickness of asphalt and gravel base enhancements. The
improved base aggregate will be shaped and topped with a new 3" asphalt pavement. Opportunities
for drainage improvements will be pursued as determined feasible.
Fourmies Avenue extends from University Avenue East Service Drive to Sth Street. The street was
constructed in 1983. Subsurface investigation found the underlying aggregate base to be substandard
for a commercial street. The condition of the pavement is severely distressed and the Street Division
has spent a disproportionate amount of time an2c�ost to maintain the pavement.
TH 65 West Service Road extends southerly from 73rd Avenue and terminates approximately 500'
south of the Minnesota Transfer Railway railroad tracks. The Service Road was built over two-year
duration (1969 and 1970). Portions of the pavement exhibit significant distress which required
excessive maintenance by the Street Division. Subsurface investigation has found that the existing
pavement has no aggregate base support throughout the segment.
The street rehabilitation work is funded using special assessments and MSAS funds. Water, sanitary
sewer, and stormwater costs are funded by their respective utilities.
A Public Hearing on special assessments for this project is scheduled for the February 13, 2012, City
Council meeting.
Staff recommends that aRer the public hearing, the City Council adopi the attached resolution to
prepare final plans and specifications and call for bids for the work.
JPK:Iro
Attachment
30
RESOLUTION NO. 2012 -
A RESOLUTION ORDERING 2012 ST1tEET REHABILITATION PROJECT NO. ST 2012-01,
AUTHORIZINU PREPARATION OF FINAL PLANS AND SPECIFICATIONS,
AUTHORIZING THE ADVERTISEMENT FOR BIDS, AND
AUTHORIZING PREPARATION OF PRELIMINARY PROPOSED ASSESSMENT ROLL FOR
PENDING ASSESSMENT REPORTING PURPOSES
WHEREAS, on October 24, 201 I, the City Council passed Resolution 201 I-56 calling for the City's
Public Works Engineering Division to prepare a feasibility study and prepare preliminary plans and
specifications for Street Rehabilitation Project No. ST 2012-01 (`2012 STREET REHABILITATION
PROJECT NO. ST 2012-0 l°); and
WHEREAS, on December 12, 201 I, the City Council passed Resolution No. 201 I-70 which received
the feasibility study recommendations of the Public Works Director prepared pursuant to Minn. Stat. §
429.031, Subd. 1(b); and called for a public improvement hearing on the matter of the construction of
certain improvements listed in the leasibiliry study conceming 2012 S 1REE"i' REHABILI"fATION
PROJECT NO. S"C 2012-01 to be noticed pursuant to Minn. Stat. § 429.021, Subd. 1(a); and
WHEREAS, the City noticed a public hearing on 2012 STREET KEt�ABILITATION PROJECT NO.
ST 2012-01 for January 23, 2012. A Notice of Public Hearing was published by the City's official
newspaper on January 5, 2012 and January 12, 2012 and was mailed to affected property owners on or
about January 10, 2012, pursuant to Minn. Stat. § 429.031, Subd. 1(a); and
WHEREAS, the Notice of Publie Hearing for the public hearing on such proposed improvement on
January 23, 2012 was flawed in that it did not list the estimated costs of improvement; and
WHEREAS, at the January 23, 2012 public hearing, the hearing was caneelled due to the publication
flaw and a new public hearing on 2012 STREET REHABILITATION PROJECT NO. ST 2012-01 ��as
ordered for February 13, 2012; and
WHEREAS, a Notice of P�iblic Hearing was published by the City's official newspaper on January 26,
2012 and February 2, 2012 and was mailed to affected property owners on or about January 26, 2012,
pursuantto Minn. Stat. §429.031, Subd. 1(a); and
WHEREAS, the public hearing regarding said improvements was held thereon on February 13, 2012 at
wfiich all persons desiring to be heard were given an opportunity to be heard thereon; and
WHEREAS, 2012 S'I"KEE'f RF�HABILITAT[ON PRQJECT NQ. ST 2012-01was not initiated by a
petition that had been signed by the required percentage of owners of property affected thereby; and
therefore this Resolution ordering 2012 Street Rehabilitation Project No. S'1' 2012-01 must be adopted by
at least a four-fifths vote of al I members of the Council pursuant to §429.031, Subd. 1(�;
31
NOW THEKEFORE, BE IT RESOLVEll BY THE CITY COUNCIL OF THE CITY OF
FRIDLEY, MINNESOTA:
l. 2012 STRF.ET REHABILITATION PROJEC'I' NO. ST 2012-01 is necessary, cost-
effective, and feasible as detailed in the feasibility report.
2. That the improvements and design features proposed in the feasibility reporl for 2012
STREET REHABILITATION PROJEC"1' NO. S I' 2012-01 are hereby ordered to be
effected and completed as soon as reasonably possible, to-wit:
Street improvements, including pavement reclamation, bituminous paving and ancillary
work, including water main reconstruction and utility repairs associated with these
improvements, to be constructed on the following streets:
4�' Street
6`h Street
7`� Street
66�' Avenue
67`h Avenue
68�' Avenue
Clover Place
Jefferson Street
Monroe Streei
Rice Creek Terrace
Universiry Ave East Service Road
Washington Street
Oakley Street
Fourmies Avenue
TH 65 West Service Road
67`� Avenue to Rice Creek Terrace
67`� Avenue to Rice Creek Terrace
Mississippi Street to 480' N of 68`� Avenue
University Service Road to East Cul-de-sac
University Avenue East Service Road to Monroe Street
Rice Creek l'errace to W ashington Street
Monroe Street to Jackson Street
67`h Avenue to approximately �90'north
Mississippi Street to 67`� Avenue
University Avenue to 68`h Avenue
66`h Avenue to 67�' Avenue
67`h Avenue to approximately 500' north of 68�' Avenue
Mississippi Street to 620' north
University Avenue East Service Road to 5`h Street
73`d Avenue to 2000' south
3. That the work be incorporated in the 2012 STREE"T REHABILITATION PROJECT NO.
ST2012—01.
4. 'Chat 2012 STREF,T RF.HABILITATION PROJECT NO. S"I'2012-01 is hereby ordered
by this Resolution in conformance with Minnesota Statutes, Chapter 429.
5. That the work be performed under this project may be performed under one or more
contracts as may be deemed advisablc upon receipt of bids.
6. "Chat the Director of Public Works, James P. Kosluchar, is hereby designated as the
engineer for this improvement. He shall o��ersee the preparation of plans, specifications
and estimates of'cc�sts thereof for making of such improvements.
7. That final plans, specifieations, and estimates in substantial conformance with the design
features desired and approved by the City Council at the February 13, 2012 public
hearing are prepared by the Public Works Department and prov ided to the City Council as
they are completed.
8. That the Public Works Department is hereby authorized to call and advertise for bids in
order that project award and construction can be considered.
32
9. That the construction contract shall be ledawarded no later than two years after the
adoption of this Resolution pursuant to Minn. Stat. §429.041.
10. That the Ciry staCf and Ciry Public Works Department are hereby authorized to prepare a
"preliminary" proposed assessment roll for all affected properties. Said "preliminary"
proposed assessment roll shall be used for pending assessment reporting purposes.
PASSED AND ADOPTEll BY THE CTTY COUNCIL OF THE CITY OF FRIDLEY THIS 13�h DAY
OF FERUARY 2012.
ATTEST:
DEBRA A. SKOGEN - CI'I'Y CLERK
33
SCOTT J. L[1ND — MAYOR
� oF
FRIDLEY
TO
3Zi7�p
DATE:
AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 13, 2012
William W. Burns, City Manager �'��
James Kosluchar, Public Works Director
February 9, 2012
SUBJECT: Initiate Oak Glen Creek Improvement Project No. 380
PW 12-020
In recent years, the banks of Oak Glen Creek have been progressively eroding due to a
combination offactors, including land use, vegetative cover, and stabilizing coverduring peak
discharge flow events. This segment of Oak Glen Creek is located on private property and
easements are not established that enable City maintenance. The City of Fridley has been
working with the Anoka Conservation District (ACD) to develop a plan for mitigation of this
erosion. Public meetings have been held with adjacent properties during development of this
plan.
On July 20, 2010, a public meeting was held and a design proposal was discussed with the
residents. The City indicated that the participation of adjacent property owners was vital to any
project going forward. During discussion, the residents generally indicated favor for a project
initiated by the City and the ACD that would seek out additional outside sources of funding to
reduce the cost to both residents and the City.
On September 12, 2011, the City Council passed a resolution that authorized the City to work
with ACD to apply for a Clean Water Fund Competitive Grant from the State of Minnesota. The
application was successful, and the project was awarded $339,700, which is $13,700 more
than we initially proposed with no increase in the $85,000 local match.
In addition, we applied for and received an in-kind services grant from the Minnesota & lowa
Conservation Corps. We will have 30 days of crew time with their personnel to work on this
project.
The project includes construction of check dams, and stabilization with riprap and live stakes to
reduce down cutting of the stream. The project also includes removal of a large number of
trees to remove canopy that inhibits growth of plants that root and would naturally stabilize the
stream's banks. An alternative to pipe the creek was discussed, but found to be cost
prohibitive and unlikely to receive approval of permitting authorities.
The next step to move the project ahead under the special assessment process is preparation
of a feasibility report. This report will address the scope of the work for the project.
Preparation of the feasibility report will allow staff to refine construction costs and determine
whether the work needed can take place within the CIP budget. The feasibility report will
provide a recommendation to the City Council on construction permitting, funding, and the
timing of the improvements.
.K�'
KESOLUTION NO. 2012 -
A RESOLUTION OIiDERING PREPARATION OF A PRELIMINARY REPORT AND
PRELIMINAI2Y PLANS AND SPECIFICATIONS FOR TAE OAK GLEN CREEK
IMPROVEMENT PROJECT NO. 380
WHEREAS, in recent years, several properties along Oak Glen Creek have experienced severe erosion of
their banks with Oak Glen Creek,
AND WHEREAS, the banks of Oak Glen Creek have been progressively eroding due to a combination of
factors, including land use, vegetative cover, and stabilizing cover during peak discharge flow events,
AND WHEREAS, it is in the interest of the Ciry of Fridley, and ils residents and property owners to perform
bank stabilization and other improvements on the properties adjacent to Oak Glen Creek and prevent further
erosion and adverse impact to the banks of Oak Glen Cmek,
AND WHEREAS, City staff has held meetings with the Anoka Conservation District (ACD) on the matter
with adjacent residents to review alternatives for initigation ofthis erosion,
AND WHEKEAS, on July 20, 2010, the City of Fridley, the ACD, and the adjacent property owners met to
discuss design proposals developed by the ACD,
AND WHEREAS, the residen[s at said meeting generally indicated favor for a project initiated by the City
and the ACD that would seek funding to make the cost of such a project Ceasible,
AND WI�REAS, the project has been awarded funding of $339,700 through the Clean Water Fund
Competitive Grant program, and an in-kind grant of30 crew days from the Conservatio� Corps Minnesota &
lowa,
NOW, THEREFORE, BE IT RESOLVED, by the City Counci] of the City of Fridley as follows:
1. That it appeacs in the interests of the City and of the property owners affeeted that there be
constructed certain improvements to-wit:
Erosion control and other improvements along the north and south banks and channel of Oak Glen
Creek from East River Road to the Mississippi River, including construction of check dams,
stabilizatian with riprap and live stakes, and tree removal.
"fhat the wark involved in said improvements listed above shall hereafter be designated as:
CITY OF FRIDLEY PROJECT NO. 380
2. That the Public Works Director, James P. Kosluchar, Ciry Hall, Pridley, MN, is hereby authorized
and directed to draw the preliminary plans and specifications and to tabufate the results of his
estimates of the costs of completion and all fees and expenses incurred (or to be incurred) in
preliminary report of his finding stating therein whether said improvements are Ceasible and whether
they can best be made as proposed, or in connection with some other improvements (and the
estimated costs as recommended), including also a description of the lands or area as may receive
benefits there from and as may be proposed to be assessed.
3. That said preliminary report ofthe Public Warks Director shall be fumished to the City Council.
�
i=
CffY OF
FRIDLEY
Date:
To:
From:
AGENDA ITEM
CITY COUNCIL MEETING
FEBRUARY 13, 2012
February 7, 2012 �p�
1� F'
William Burns, City Manager qn
Paul Bolin, Asst. Executive HRA Director
Subject: Resolution Setting Public Hearing to Create TIF district #20
Real Estate Recycling (RER) has a purchase agreement for the 135 acres
located at 4800 East River Road. In November, RER approached the Housing &
Redevelopment Authority to investigate the potential for assistance with the clean
up and future redevelopment of the property occupied by BAE. The Authority
approved an interim agreement with RER to allow for the exploration of the
feasibility of redeveloping the site.
The Interim Agreement required Real Estate Recycling to pay for all studies and
50% of the Authorities Development Counsel's time. The agreement called out a
series of action steps that must be met to continue exploring the potential of
assistance from the Authority. One of the first steps was to conduct a blight
analysis and determine if the property met TIF statutory requirements for
"substandard" properties.
The engineering firm of LHB conducted the blight analysis and found the building
to far exceed the minimum standards for "substandard" properties. LHB
determined the property at 4800 East River Road is substandard because of the
substantial cost needed to renovate the building to meet modern building code
standards. To construct a building the size of BAE, meeting modern standards,
would cost $179,000,000. To correct the deficiencies in the existing building and
bring it up to modern standards would cost $40,000,000, roughly 23% of the cost
to build new. By TIF statute, anytime the cost of corrections exceeds 15% of
building new, the property is considered blighted.
The existing BAE site is comprised of one large mass of building constructed
over a number of years dating back to the late 30's. Because of the time and
way the site developed, the roof structures are inadequate for snow load, for
reroofing and forfire rating. The HVAC system has been piecemealed together
as the site has expanded. Fire protection and egress are inadequate throughoi�t
�
the building and there are portions that have been badly damaged by water leaks
and mold.
A number of other tasks have been ongoing as RER moves forward in its due
diligence for the purchase. RER has been focused on refining their estimates for
redevelopment costs, identifying different grant programs to assist in the cost of
the project and working with the buildings existing tenants.
Recommendation:
The attached resolution calls for setting the date of April 9, 2012 for the Council
to hold the public hearing needed to create TIF District #20. TIF District #20 is
necessary RER to move forward with redeveloping the site located at 4800 East
River Road.
Staff recommends that the Council approve the resolution setting April 9, 2012 as
the date to hold the public hearing for the creation of TIF District #20.
39
RESOLUTION NO. 2012-
A RE50LUTION CALLING FOR A PUBLIC HEARING ON MODIFICATIONS TO THE
REDEVELOPMENT PLAN FOR REDEVELOPMENT PROJECT NO. 1 AND THE TAX
INCREMENT FINANCING PLANS FOR TAX INCREMENT FINANCING DISTKICTS
NOS. 6-7, 9, 11-13 AND 16-19, CREATION OF TAX INCREMENT FINANCING
DISTRICT NO. 20 AND APPROVAL AND ADOPTION OF A TAX INCREMENT
FINANCING PLAN RELATING THERETO AND THE CREATION OF HAZARDOUS
SUBSTANCE SUBDISTRICT NO. 20A AND THE ADOPTION OF A TAX INCREMENT
FINANCING PLAN RELATING THERETO.
BE IT RESOLVED by the City Council (the "Council") of the City of Fridley, Minnesota (the
"City"), as follows:
Section 1. Public Hearing.
1.01. Tl�is Council shall meet ot� Monday, Apnl 9, 2012, commencing at approximately 7:30
o'clock p.m. at City Hall, 6431 University Avenue N.E., Fridley, Miruiesota, to hold a public
heu-ing on the following: (a) modification of the Redevelopment Plan for Redevelopment Project
No. 1(the "Project Area") to reflect increased project costs and increased bonding authority within
the Project Area; (b) modificarion of the Tax Increment Financing Plans for Tax Increment
Financing Distncts Nos. 6-7, 9, 11-13 and 16-19 (the "Existing TIF Distncts") to reflect increased
project costs and increased bonding authority within the Project Area; (c) areation of Tax Increment
Finaucing Disri-ict No. 20 (the "Tax Increment DistricY� and approval and adoption of a Tax
Increment Financing Plan relating thereto; and (d) creation of Hazardous Substance Subdistrict No.
20A (the "Subdistrict") and the adoption of a tax incxement financing plan relating thereYo, all
pursuant to and in accordance with Minnesota Statutes, Sections 469.001 to 469.047 and 469.174 to
469.1799, inclusive, as amended and supplemented.
Section 2. Notice of Hearing; Filing of Plans.
2.41. The City Clerk is authorized and directed to cause notice of the public hearing, substantially
in the farm attached hereto as Exhibit A, to be published as required by law, to place a copy of the
Redevelopment Plan and proposed Tax Inerement Financing Plans (collectively the "Plans") on ftle
in the City Clerk's office and to make such Plans available for inspection by the public.
PASSED AND ADOPTED BY THE CITY COUNCIL OFTHE CITY OF FRIDLEY.
MiNNESOTA THIS 13TH DAY OF FEBRUARY 2012.
ATTEST:
DEBRA A. SKOGEN, CITY CLERK
I, �
SCOTT .T. LUND, MAYOR
EXHIBIT A
NOTICE OF PUBLIC HEARING
CITY OF FRIDLEY
COUNTY OF ANOKA
STATE OF MINNESOTA
NOTICE IS HEREBY GIVEN THAT the City Council (the "Council") of the City of Fridley,
Minnesota, will hold a public hearing on Monday, April 9, 2012, commencing at approximaCely
730 o'clock p.m. at City Hall, 6431 University Avenue N.E., Fridley, Minnesota, to hold a public
hearin� on the following: (a) modification of the Redevelopment Plan for Redevelopment Project
No. 1(the "ProjecY Area'� to reflect increased project costs and increased bonding authoritywithin
thc Project Area; (b) modification of the Tax Increment Financing Plans for Tax Increment
Financing Districts Nos. 6-7, 9, 11-13 and 16-19 to reflect increased project costs and increased
bonding authority wiChin the Project Area; (c) creation of Tax Increment Financing District No. 20
(the "Tax Increment DistricY') and approval and adoption of a Tax Increment Financing Plan
relating thereto; and (d) creation of Haaardous Substance Subdistrict No. 20A (the "Subdistrict")
and the adoplion of a tax increment financing plan relating thereto, all pursuant to uid in
accardance with Minnesota Statutes, Sections 469.001 to 469.047 and 469174 to 469.1799,
inclusive, as amended and supplemented. Copies of the documentation relating to the above
proposed actions will be on file and available for public inspection in the office of the City Clerk.
The property proposed to be included in Taac Increment District No. and the Subdisfrict include the
following PINs and all roads, right of way and easements located adjacent to or as part of the PINs:
27-30-24-13-0002 27-30-24-42-0002 27-30-24-43-0002.
The property is generally located at 4800 E. River Road NE.
The attached inap shows the boundaries of the proposed Tax Increment District and the Subdistnct
which are coterminous and is the area from which tax increment revenues may be generated, and
the botmdaries of Redevelopment Project No. 1, the azea in which the tax increment revenues may
be expended.
All interested persons may appear at the heanng and present their views orally or in wnting.
BY ORDER OF THE CITY COUNCIL
/s/ William W. Bums, CityManager
41
QTY OF
FRIDLEY
Date:
To:
From:
Subject:
AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 13, 2012
February 1, 2012
William Burns, City Manager
� ��
Scott Hickok, Community Development Director
Julie Jones, Planning Manager
Resolution to Extend Existing Curbside Recycling Contract
Background
On ]anuary 23, the City Council accepted a recycling proposal from Allied Waste Services and directed staff
to negotiate a contract. Our existing contract for curbside recycling services with Allied expires March 31,
2012. Since it is doubtful that Aliied can receive delivery of the wheeled carts from their supplier for the new
single-sort service in time to start the new service by April 1, staff has negotiated a new contract to begin
May 7, the first Monday in May 2012. Allied has verbally agreed to continue the existing 2-sort service
contract until May 7, but staff recommends that we formalize that agreement in writing.
The attached resolution to approve the approximately one-month extension and contract amendment and the
amendment itself have been reviewed and approved by the City's legal counsel.
Recommendation
Staff recommends that the City Council approve the attached resolution that authorizes the appropriate
parties to execute the contract amendment.
42
RESOLUTION NO. 2012-
A RESOLUTION APPROVING AMENDMENT TO EXISTING RESIDENTIAL
CURBSIDE RECYCLING SERVICE CONTRACT WITH ALLIED WASTE
SERVICES
WHEREAS, Minnesota Statutes 115A.552 requires that Minnesota residents be
given the opportunity to recycle; and
WHEREAS, the City of Fridley (the "City") and Allied Waste Services
("Allied") are parCies to an Agreement for Curbside Recycling Services, dated February
22, 1999 (the "1999 Contract"), pursuant to which Contractor provides dual sort
recycling service to the City's single family through 12-unit multiple dwellings; and
WHEREAS, by mutual agreement, the parties have previously extended and
modified the 1999 Contract in June 2001, October 2004, and October 2009 (collectively
the "Amendments"); and
WHEREAS, the parties further amended the Contract through "rhe Amendment
to the Contract for Curbside Recycling with Allied Waste Services, dated August 9, 2010,
(the "2010 Amendment) extended the 1999 Agreement to March 31, 2012 and provided
that the City and Contractor could, by mutual agreement, extend the 1999 Contract for an
additional year beyond March 31, 2�12; and
WHEREAS, the City recently completed a Request for Proposal ("RFP") for
recycling services;
WHEREAS, the City evaluated the RFP responses and selected Allied Waste's
submission for single sort recycling as the best value f'or the City; and
WHEREAS, a new single sort recycling services agreement between the City and
Allied Waste is anticipated to commence on May 7, 2012; and
WHEREAS, in order to provide City residents continuous dual sort recycling
services until the new single sort service begins on May 7, 2012 pursuant to the new
recyeling services agreement between the parties, Allied Waste and the City mutually
agree to continue the existing dual-sort contract approximately one additional month
through May 6, 2012;
43
Page 2
1VOW, THEREFORE BE IT RESOLVED, that the Ciry Council oFthe City of Fridley
hereby approves the contract amendment for curbside recycling services attached as
Attachment A and authorizes the Mayor and City Manager to execute such document on
behalf of the City.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
FRIDLEY THIS DAY OF , 2012.
ATTEST:
Debra A. Skogen, City Clerk
..
Scott J. Lund, Mayor
Curbside Recycling Contract Amendment
This agreement is made on the day of , 2012 between the City of Fridley,
Fridley, Minnesota, (`°City") and Allied Waste Systems ("Contractor").
WHEREAS, Contractor is in the business of collecting recyclables; and
WHEREAS, Contractor and City are parties to an Agreement for Curbside Recycling Services,
dated February 22, 1999 (the "1999 ContracY'), pursuant to which Contractor collects recyclables
from the City's single family ttuough 12-unit multiple dwellings; and
WHEREAS, by mutual agreement, the parties have previously extended and modified the 1999
Contract in June 2001, October 2004, October 2009, and August 2010 (collectively the
"Amendments"); and
WHEREAS, The Amendment to the Contract for Curbside Recycling with Allied Waste
Services, dated August 9, 2010, extended the 1999 Agreement to March 31, 2012 and provided
that Ciry and Contractor could, by mutual agreement, extend the 1999 Contract for an additional
year beyond March 31, 2012; and
WHEREAS, both City and Contractor have mutually agreed to extend the Contract for
approximately one month, from April 1, 2012, to May 6, 2o12; and
NOW, THEREFORE, the City and Contractor agree as follows:
1. The following paragraph in the 1999 Contract shall be replaced as follows:
28. Term. The term of this Agreement shall be extended to May 6, 2012, the date of
the signature by the parties notwithstanding.
All other terms and conditions as previously negotiated and memorialized in the 1999
Agreement and as further amended and memorialized in the Amendments shall be in full
force and effect, including but not limited to revenue sharing of 60% to the Contractor
and 40% to the Ciry, as well as tbe residential dwelling rate of $2.73 per household per
month and $1.92 per household per month per multiple dwelling household.
Executed as of the day and year first above written.
CITY OF FRIDLF,Y
By
Mayor
By
City Manager
45
ALLIED WASTE SERVICES
By
Its
i
I
CffY OF
FRIDLEY
Date:
To:
From:
Subject:
AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 13, 2012
February 1, 2012
William Burns, City Manager ��
Scott Hickok, Community Development Director
Julie Jones, Planning Manager
Resolution to Approve New Single-Sort Cu�bside Recycling Contract
Background
On January 23, [he City Council accepted a recycling proposal from Allied Waste Services and directed staff
to nego[iate a contract. A contract has been developed, based upon the language in the request for proposals.
The attached resolution to approve the seven-year contract and the agreement itself have been reviewed and
approved by the City's legal counsel.
Recommendation
Staff recommends that the City Council approve the attached resolution that authorizes the appropriate
parties to execute the new seven-year curbside recycling contract with Allied Waste Systems.
' •.
RESOLUTION NO. 2012-
A RESOLUTIOI�T APPROVING RESIDENTIAL CURBSIDE RECYCLING
SERVICE CONTRACT WITH ALLIED WASTE SERVICES
WHEREAS, Minnesota Statutes 1 ISA.552 requires that Minnesota residents be given
the opportunity to recycle; and
WHEREAS, the City of Fridley has committed to Anoka County by agreement to
provide basic recycling services to Fridley residents in exchange For State SCORE funds;
and
WHEREAS, the City of Fridley solicited proposals from licensed recycling contractors
for curbside recycling services; and
WHEREAS, two proposals were received by the deadline and the proposal from Allied
Waste Services was determined by the City Council to offer the best level of service for
the price; and
WHEREAS, accepting the Proposal from Allied Waste should allow the City of Fridley
to sustain residential recycling services for the next seven years;
NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Fridley
hereby approves the contract for curbside recycling services attached as Attachment A
and authorizes the Mayor and City Manager to execute such document on behalf of the
City.
PASSED AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF
FRIDLEY THIS DAY OF , 2012.
ATTEST:
Debra A. Skogen, City Clerk
47
Scott J. Lund, Mayor
Page 2
Revocation of SP #08-07 for Exterior Storage
at 7865 Beech Street NE, Fridley, MN 55432
Exhibit A
Lots 20 & 21, Block 2, Onaway Addition, generally ]ocated at 7865-69 Beech Street
.;
Fridley Curbside Recycling Service Agreement
This Agreement is made on the 13`h day of February, 2012, between the City of Fridley, a
municipal corporation organized and existing under the laws of the State of Minnesota,
hereinafter called the "City" and Allied Waste Services of North America, LLC, a Delaware
limited liability company, d/b/a Allied Waste Services of the Twin Cities-Blaine, herein called
the "Contractor".
1 Purpose of Agreement
The purpose of this Agreement is to define the requirements of the City af Fridley's Curbside
Recycling Program to all residential Certified Dwelling Units, which includes single and multi-
unit dwellings up to and including buildings containin� 12 dwelling units. The goal of both
parties is to provide quality, convenient recycling service to Fridley residents that will aid the
City's goal of achieving maximum participation in the recycling program. As of January, 2012,
City utility billing records list 9,202 residential dwelling units that qualify to receive recycling
service under this contract Agreement. This unit count does not include additional municipal
facilities that need to be serviced under this Agreement, which aze listed under Section 6.
2 Definitions
Minnesota Statute definitions shall be the primary legal basis for all contract definitions. Other
definitions included herein are for purposes of ease of communication. However, if a contract
definition is in conflict with the Minnesota Statutes, the Minnesota Statutes shall take
precedence.
Collection District: means a specific geographic area of the City established for the purpose of
having Curbside Recycling collection for all DU's and other City designated recycling collection
stops in the district on the same day.
Colleetion Route: means a contiguous geographic area within a Collection District determined
by the Contractor that will be serviced by one collection vehicle and which may be used to
measure collection progress. These routes and changes to the routes must be approved by the
City.
Dwelling Unit (DU): means a single family home and each residential unit in a building up to a
twelve-plex, mobile home park, or townhouse complex. Residential units in structures (other
than townhouses) containing more than twelve dwelling units, may be designated as DU's upon
mutual agreement by the City and the Contractor. Two mobile home parks are included in the
municipal service contract. One townhouse complex, Black Farest, is not included in the
municipal service contract.
Fridley Recycling Service Agr2l�nt Page 1 of 13
Education Tag: means an inforraation tag notifying residents about unacceptable materials set
out for collection. The tag will also contain information regarding preparation requirements.
The tag must be left at the residence (piaced between the recycling cart top and lid) if any portion
of the recycling set out is not taken.
Material Recovery Facility (MRF): Specialized plant that receives, separates and prepares
recyclable materials for marketing to end-user manufacturers.
Multi-Family Dwelling (MFD): Households in lazger multi-family buildings generally with
five (5) units or more per structare. These households of 5-12 dwelling units per building are
provided the same type of wheeled carts as single family homes unless mutually agreed upon by
the City, the Contractor, and the property owner.
Recycling Materials Report: A monthly report supplied by Contractor with the monthly
invoice for recycling services which ouUines the recyclable materials collected by commodity
and the rates of participation citywide each collection week.
Residuals: Materials collected and delivered to the MRF facility, and removed from the
recyclable materials for composting, incineration or land fill disposal prior to or dwing
processing.
Single Stream Recycling: Rigid containers and fibers collected and processed together.
3 Compensation to Contractor
3.1 PER DU PRICE
The City shall pay the Contractor the following rates over the seven year term of the contract:
$235 per DU per month, May I, 2012 through April 30, 2013
$239 per DU per month, May 1, 2013 through April 30, 2014
$2.43 per DU per month, May 1, 2014 through April 30, 2015
$2.47 per DU per month, May 1, 2015 through Apri130, 2016
$2.51 per DU per month, May 1, 2016 through April 30, 2�17
$2.56 per DU per month, May 1, 2017 through April 3Q 2018
$2.6] per DU per month, May 1, 201 S through April 30, 2019
3.2 METHOD OF PAYMENT
The Contractoi shall submit monthly itemized invoices to the City. Invoices so submitted shall
be paid within thirty (30) days of receipt by City.
Fridley Recycling Service Agre5rr�ent Page 2 of 13
u
3.3 CERTIFIED DWELLING UNIT (DU) COUNT AND SET OUT RATE
The Contractor may request that the City re-certify the number of DUs existing in the City of
Fridley at any time throughout the term of this Agreement. Likewise, the City may request that
the number of DUs serviced be adjusted within 3� days of notification to the Contractor in the
event that housing units are added or removed from the City.
3.4 COLLECTION DAYS FOR CURBSIDE RESIDENTIAL RECYCLING
Contractor must collect recyclables according to the existing collection districts on Monday,
Tuesday, Wednesday, and Thursday per the Residential Curbside Recycling Collection Map
contained in Exhibit A. The parties of this Agreement may mutually agree to change the
collection districts with the initiating party bearing the cost of direct mail notification to all
property owners and residents of the changed district.
3.5 FREQUENCY
The collection frequency will be every other week with the first week of collection beginning
Monday, May 7, 2012.
3.6 CURRENT CONTAINERS
The Contractor will coordinate with the City to staff and provide containers for a one-day drop
off location on a Saturday in May 2012 for the collection of the City-supplied, City-owned 18-
gallon blue bins currently used for residential recycling collection, after the new wheeled carts
are in use. The Contractor will be responsible for removing the Contractor-supplied,
Contractor-owned wheeled carts currently used for recycling collection by all 5-12 DU
households currently serviced by the City contract. Recycling and reuse options for old bins
and carts will be pursued and documented by the Contractor. Evidence of the weight of any
containers recycled will be supplied to the City before the end of the 2012 calendar year,
allowing the City to receive tonnage credit for the containers recycled.
3.7 PROPOSED CONTAINERS
The Contractor will purchase, own, provide, inventory, and distribute, sturdy curbside 65-
gallon wheeled carts to each property in Fridley serviced by this Agreement. Thereafter,
during the entire term of the Agreement, Contractor shall maintain and replace carts as
necessary. The carts shall be uniform and consistent in color and design. Each DU wili be
provided one 65-gallon cart or alternate size upon request by the resident following initial
distribution. Cart distribution will occur at least two weeks prior to the first week of single sort
collection. The Contractor shall maintain sufScient cart inventory of the proper size and color
to meet supply and demand needs for the entire term of the Agreement.
The proposer shall be prepared to deliver all service containers to households upon request
within two weeks of a request.
Fridley Recycling Service Agr�rr�,ent Page 3 of 13
7
3.8 CURBSIDE RECYCLING COLLECTION TIMES
ConYracYor must not begin residential recycling collection service prior to 7:OOa.m. Collection
routes must be complete by 830 p.m.
3.9 HOLIDAY SCHEDULE
During a week when the holidays listed fall on a collection day (Monday — Thursday),
recycling collection will be one day late. The six holidays where this will occur are: New
Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, and Christmas Day.
3.10 SEVERE WEATHER
Except as otherwise provided herein, recycling collecrion may be postponed due to severe
weather at the sole discretion of the City. The Contractor shall consult with the City before
postponing collection. Collection will be postponed to a day mutually agreed upon. Recycling
collection may be postponed by the Contractor if the temperature in Fridley at 6 a.m. is minus
20 degrees Fahrenheit or colder without the wind-chill factor.
3.11 POINT OF COLLECTION
Single family through three-unit DUs will be serviced curbside unless noted in Exhibit B, the
map of DUs accessible by alley, as qualifying for alleyside collection. The curbside point of
collection is at the edge of the curb along the respective public or private street from which the
DU gains its access, or such other location as may be specified by the City.
Apartment buildings four (4)-twelve (12) DU in size will be supplied an adequate number of
wheeled carts that w�ll be emptied by the Contractor every other week. Carts at these buildings
will not be required to be placed curbside. Contractor will service carts at 4-12 unit multi-
famiiy buildings where they are stored, typically next to garbage enclosures. Contractor and
City may mutually agree upon alternate collection arrangements for multi-unit buildings where
space constraints or other limitations to normal servicing methods exist.
3.72 WALK-UP SERVICE
The Contractor at the start of this Agreement has certified to the City that fourteen (14) DU's
have been receiving walk-up service in the curbside recycling collection program. The walk-
up service is doorside collection of recyclables at designated DU's upon request from the City
or upon request from the resident for anyone who is unable to convey recyclables to the curb.
Up to 20 walk-up service accounts may exist on the Contractor's list without additional
financial compensation to the Contractor from the City.
4 Liquidated Damages
The City shall send a formal written letter or electronic notice outlining the issue and notifying
the Contractor of the violation. Afrer such notice, the Contractor shall be liable, and the City
Fridley Recycling Service Agregr�ent Page 4 of 13
5L
shall charge the Contractor accordingly, for liquidated damages at the following rates, upon a
determination by the City that performance has not occurred consistent with the provisions of
the Agreement.
4.1 MISSED COLLECTION
The penalty is five hundred dollars ($500) per individual occurrence for missed collections in
any collection district not picked up by 5 p.m. the next business day. Either the City or a
resident shall provide notice by noon the same scheduled day of the missed collection. The
resident shall have stated thattheir recyclable maYerials were properly placed atthe curb by
7:00 a.m. on collection day.
4.10.1 Missing Entire Block or Neighborhood
The penalty will be one thousand dollars ($1,000) per each incident. A missed block is
defined as a block where residents from at least three households within two intersections
of that block or cul-de-sac report that their recycling bin and material was set out before
7:0� a.m., the material was not picked up the following business day by 5 pm. and the
addresses did not appear on the driver's records as unacceptable setouts.
4.10.2 District-wide Collection Not Completed
The penalty shall be Ywo thousand dollars ($2,000) per incident of failure to complete
collection on the scheduled collection day when the City did not, or does not
retroactively, approve an extension of collection hours.
4.10.3 Failure to Complete a Majority (50%) of the Collection District
The penalty shall be three thousand dollars ($3,000) per occurrence of failure to complete
a majority (50% or more) of collections within the Collection District on the scheduled
collection day without following proper notification procedure.
4.10.4 Exceptions
If City staff approves a delay prior to 4 p.m. on the scheduled collection day, the
Contractor shall be deemed not liable for damages where the Contractor's inability to
perform recycling collection service is the result of conditions beyond its control such as
acts of God or severe weather, civil disorder, significant road construction, changes in
statutes, regulations and ordinances and other acts beyond the control of the Contractor.
When the City and the Contractor have mutually agreed that the Contractor may safely
return to the City, the Go�tractor shall have five (5) days (excluding Saturdays, Sundays,
and holidays) to provide such service. In the event of a continuing failure beyond said
period, the Contractor shall not be entitled to payment for any DU not serviced. In the
event that the City has approved a delay beyond the five (5) days the Contractor will not
be assessed penalties as specified above.
Fridley Recycling Service Agre�14gnt Page 5 of 13
�.i
5 Customer Service
The Contractor shall provide customer service and an office equipped with phone, email access
and a web site to receive calls and emails beriveen the hours of 7:30 a.m. and 5:00 p.m. on
weekdays, except holidays as listed in Section 3.9. The Contractor shall make the telephone
number, web site address and eniail address readily available and known to City residents in
education materials. The Company name and a truck number shall be printed in large print on
the collection vehicles.
5.1 24 HOUR SERVICE
The Contractor shall have a 24 hour answering service or voice mail system available to
Fridley customers and the City.
5.2 MONTHLY REPORT
The Contractor shall keep a customer service log of all contacts, including type of
contact, subject matter, date and the time received, the vendor's response, and the date
and time of response. The Contractor shall provide the City verbal reports of recorded
customer service conYacts and written documentation upon request.
6 Municipal Facilities and Other Sites
The Contractor will provide every other week recycling collection of the same recyclable
maCerials noted for collection in Section 8.2 at designated municipal facilities at no additional
cost. The municipal facilities cunently requiring every other week recycling service aze: the
Fridley Municipal Center, Springbrook Nature Center, the Fridley Public Works Garage, and the
two municipal liquor stores. Other facilities may be added upon mutual consent of both parties.
7 Publicity, Promotion, Education
The Contractor shall provide the following education, publicity and promotion services without
additional compensation unless specified:
a. Printing or embossing of recycling content and preparation instructions to customer
on each wheeled cart
b. Printing and mailing of an informationa] postcazd or brochure at least once per year,
including recycling instructions and collection calendar, including each household i❑
the MFD, with the Ciry providing the electronic mailing list.
c. Provision of a sample collection cart upon request for the City to use at special events
to promote the recycling single sort service.
d. Provision of informational sign and up to 2000 copies of extra informatio�al print
material to distribute at special City events.
e. Provision of one daytime, staffed tour of the Contractor's Materiai Kecovery Facility
per year on a weekday with date and time agreed upon by the City and Contractor
with the City coordinating reservations and providing transportation far city residents.
Fridley Recycling Service Agre��nt Page 6 of 13
f. Contractor will cooperate with City staff to create television interviews the promote
recycling in the community upon request.
g. Contractor will work with City staff to participate in other special City events
(particularly during the first year of the contract), such as the 49ers Day parade,
Safety Camp, and Nite to Unite, for the purpose of promoting recycling and public
safety around Contractor's trucks.
The City staff will be permitted review Contractor's promotional materials prior to distribution
to customers and be permitted to request changes prior to distribution.
8 Collection and Processing
Once the Contractor's recycling collection and processing methods have been accepted and
approved by the City, the Contractor shall inform the City of any changes to the agreed upon
collection and processing methods. It will be the City's right to refuse changes to the agreed
upon collection or processing methods. A collection or processing method cannot be changed
without the written approval of the City.
8.1 WEIGHING LOADS
The Contractor shall weigh and report the City's collected residential 1-12 unit recyclable
material weights separately from other material. These weight slips must be made available to
the City upon request. It is recognized that the Contractor may use some means of calculating
estimated tonnage amounts based upon test weights conducted in similar situations.
8.2 RECYCLABLE MATERIAL REQUIREMENTS
The Contractor shall collect, at a minimum, the material listed 6.2.1 through 6.2.5, which is
collected currently in the City's curbside and drop-off center recycling collection program.
Other materials may be added if mutually agreed upon by both the City and the Contractor.
8.2.1 Cartons
Cartons includes: Carton packaging such as milk, soup, broth, wine cartons and aseptic
juice boxes.
8.2.2 Paper
Paper includes: office and school paper, mail, magazines and catalogs, old newspapers
and inserts, phone books, paperback books, shredded paper in closed paper bags, old
conugated cardboard, and boxboard.
8.2.3 Plastic
Plastic bottles and containers with resin type 1-7, plastic caps on plastic bottles, and
plastic shopping bags.
8.2.4 Metal
Metal includes food and beverage cans.
Fridley Recycling Service Agre�nt Page 7 of 13
8.2.5 Glass
Glass includes containers such as bottles and jars used for food and beverages.
9 Clean Up Litter
The Contractor shall make reasonable attempt to clean up any material spilled or blown during
the course of collection and or hauling operations and any material that is scattered around the
recycling container. All collection vehicles shall be equipped with at least one broom and one
shovel fox use in cleaning up material spills. Designated recyclable materials shall be
transported in a covered, properly sealed vehicle so that the materials do not drop or blow
during transport.
10 Estimating Materials Composition
The Contractor shall provide the City with documentation of a recent scientific commodity
composition study of collected residential recyclables collected in a comparable community
upon request.
10.1 OWNERSHIP OF MATERIALS
All materials in the recycling container shall remain in the ownership and responsibility of the
resident, property owner, tenant ar government establishment until emptied into the truck by
the Contractor at which point it becomes the responsibility and ownership of the Contractor.
10.2 PROCESS FACILITIES, MATERIALS PROCESSING, MARKETING
The City expects the Contractor to market collected recyclables to fhe highest and best use of
the recyclable materials (glass to glass bottles and jars, aluminum cans to aluminum cans).
Adequate recyclable material processing capaciYy must be provided for material collected. The
Contractor shall enswe that the percentage of collected residuals does not exceed the
percentage permissible by State Statute of material (by weight) processed in the Contractor's
MRF in a given month.
The Contractor shall provide written ootice to the City at least sixTy (60) days in advance of
any substantial change in these or subsequent plans for receiving and processing recyclable
materials collected from the City. Upon collection, the Contractor shall deliver the designated
recyclable materials to a recyclable material processing center, an end market for sale or reuse,
or to an intermediate collection center for later delivery to a processing center or end market,
according to Minnesota Statutes (M.S. 115A.95).
10.3 END MARKET CERTIFICATION
Upon request by the City, the Contractor shall provide written certification to the City that all
recyclable commodities identified will continuously be recycled and not disposed. Upon
request, the Contractor shall provide the City with adequate documentation of end markets for
each recyclable commodity.
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5b
11 Reports
The Contractor will provide the City with monthly reports, in a mutually agreed upon format, on
participation rates and weight of material collected by commodity.
11.1 MONTHLY REPORTS
These reports shall be submitted monthly by the 15`h day of the following month. Reports
may be submitted electronically, but invoices must be submiCted in paper form.
a. Monthly reports must include weekly participation rates by route and date.
b. Monthly reports must include total weight of recyclables collected monthly for all
customers serviced and a calculation of average weight per stop.
c. Monthly reports must include an estimated weight breakdown per recycling
commodity.
d. Monthly reports must include a calculatio� of residual percentage for the month.
e. Invoices shall be submitted monthly, be complete and unabbreviated.
f. The monthly report shall alert the City to any pending conditions that may affect the
City's recycling programs.
11.2 ANNUAL REPORTS
The Contractor is encouraged to provide the City with an annual report that includes some of
the following information:
a. Trends in recovery rates and participation.
b. Efforts the Contractor has made to expand recyclable mazkets.
a Summary of mazket trends in prices, teehnology advancements, specifications, and
implications for municipal curbside recyding programs.
d. Review Contractor's performance based on feedback from residents to City staff.
e. Review Contractor's recommendations for improvement in the City's recycling
program, including enhanced public education and other opportunities for expansion.
£ Review staff recommendations for improving Contractor's service.
g. Opportunities for improvement with the remaining years under the current Agreement.
12 Meetings
The City and the Contractor shall meet as needed to review edueational and promotional
materials, the recycling program, collection and customer service issues, reports and other items
as necessary. The City may call meetings as needed to coordinate planning, development and
implementation of new or changing program elements. The Contractor may request meetings as
needed to help provide for more expeditiously resolution of program implementation issues.
Fridley Recycling Service Agre�nt Page 9 of 13
13 Term of Agreement
The term of this seven (7) year Agreement shall be from May 7, 2012 Yhrough April 30, 2019,
the date of signature by the parties notwithstandiog. This Agreement is renewable, upon the
written mutual consent of the parties.
14 Insurance
Prior to the commencement of any agreement, the Contractor shall submit certificates of
insurance required on a form approved by the City Clerk, signed by an authorized representative
of the insurance carrier, stating that all provisions of the specified requirements are satisfied.
The certificates shall be submitted directly to the City for review and approval by the City
Attorney. The Contxactor shall not begin any work until the City has reviewed and approved the
insurance certificates and has so notified the Contractor directly in writing. Any notice to
proceed that is issued shall be subject to such approval by the City. The Contractor shall provide
the City thirty (30) days written notice in the event the Contractor changes insurance. The City's
acceptance of the insurance provided by the Contractor does not in any way relieve or decrease
the liabiliTy of the Contractor hereunder,
The liability insurance policy or policies shall be a standard form policy provided by a canier
authorized to do business in the State of Minnesota and shall not contain any exclusion that will
restrict coverage on any operations performed by the Contractor or any subcontractors thereof.
The policy or policies shall afford contractual liabiliTy coverage to provide coverage for the
specified indemnification requirements contained herein.
14.1 COMPREHENSIVE / GENERAL INSURANCE
The Contractor shall provide comprehensive general liability insurance including premises-
operations coverage, completed operations coverage, independent Contractor's coverage and
contractual liability coverage meeting the indemnification requirements specified in Section
16. Indemnification, with limits not less than $5,000,000 combined single limit, including
personal injury liability, bodily injury liability and property damage liability.
14.2 WORKERS' COMPENSATION AND EMPLOYER'S LIABILITY
The Contractor shall provide warkers' compensation insurance and employers' liability
insurance as required by law, with limits of at least $5,000,000 for any claim.
14.3 AUTO, BODILY INJURY, AND PROPERTY
The Contractoc shall provide automobile, bodily injury and property damage liability
insurance, including coverage for all owned, hired, vehicles and employers' non-ownership
liability coverages. Limits of liability should be for not less than $5,000,000 combined single
limit for bodily injury and property damage liability. The policy or policies shall provide full
insurance to cover all of the Contractor's operating exposure including but not limited to the
picking up of the materials and the operation of vehicles.
Fridley Recycling Service Agre��nt Page 10 of 13
All responsibility for maintaining property insurance on any premises or structures owned or
operated by the Contractor remains solely with the Contractor, who may at its option insure
against any perils, and such responsibility shall remain with the Contractor until such time as
this Agreement is terminated.
74.4 ERRORS AND OMISSIONS
The Contractor shall have in force for any coverage provided by this Agreement an Errors and
Omissions Coverage with limits of not less than $1,�00,000 per occunence and $4,SOQ000
aggregate.
74.5 CITY AS ADDITIONAL INSURED
The Comprehensive/General, Auto, Bodily Injury and Property Insurance policies shall
provide for the City as an additional insured party.
14.6 NOTICE OF CANCELLATION OR NON-RENEWAL
All insurance policies shall provide that the Ciry shall be given at least thirty (30) days prior
written notice of any cancellation, termination or material modification of the required
coverage. In no event shall the Contractor operate within the City without all i�surance
required by the City. The City reserves the right to cancel the Agreement upon ten (10) days
written notice, in the event the Contractor is unable to secure insurance as required by the City.
14.7 DEDUCTIBLES
All responsibility for payment of any sums resulting from any deductible provisions of self-
insured retention conditions of the policy or policies shall remain with the Contractor.
15 Assignment
Neither party shall assign this Agreement, nor any interest azising herein, without the written
consent of the other party.
15.1 SUBCONTRACTOR
The Contractor shall not enter into subcontracts for any of the services provided for in this
Agreement without the express written consent of the City.
15.2 INDEPENDENT CONTRACTOR
At all times and foi all purposes hereunder, the Contractor is an independent contractor and not
an employee of the City. No statement herein shall be construed so as to find Gontractor an
Fridley Recycling Service Agre�gnt Page 11 of 13
5:1
employee of the City.
16 Indemnification
The Contractor shall indemnify and hold harmless the City, its employees and agents, for all
claims, damages, losses, and expenses, including, but not limited to, attomeys' fees, which they
may suffer or for which they may be held liable, as a result of negligence or fraud of the
Contractor, Contractor's employees, or subcontractors in the performance of this Agreement.
17 Employment and Nondiscrimination
The proposer must agree to comply with all of the provisions of Minnesota Statute Section
181.59, which relate to civil rights and discrimination and all State and Federal Statutes
regarding employment and discrimination. Service shall be provided without regard to race,
color, creed, religion, national ocigin, and without regard to sex, age, disability, public assistance
status, or sexual orientation.
The proposer must agree to comply with employment practices whereby no applicant for
employment or employee hired shall be discriminated against �vith respect to that person's hire,
tenure, compensation, terms, upgrading, conditions, facilities, or privileges of employment by
reason of race, color, creed, religion, national origin, age, sex, disability, public assistance status,
or sexual orientation, except as may be based upon bona fide occupational qualifications.
18 Entire Agreement
The entire Agreement of the parties is contained therein. This Agreement supersedes all oral
agreements and negotiations between the parties relating to the subject matter hereof as well as
any previous agreement presently in effect between the parties relating to the subject matter
hereo£ Any alterations, amendments, deletions, or waivers of the provisions of this Agreement
shall be valid only when expressed in writing and duly signed by the parties, unless otherwise
provided herein.
Executed as of the day and year first above written.
CITY OF FRIDLEY ALLIED WASTE SYSTEMS
By By
Fridley Recycling Service Agrep�gnt Page 12 of 13
nV
Exhibit A: Fridley Residential Curbside Recycling
Collection Map
Mor
Fridley Recycling Service Agreg�rjgnt Page 14 of 13
l�L
nesday
Exhibit B: Map of Alley Collection Sites
Fridley Recycling Service Agre�nt Page 15 of 13
CfiY OF
FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING OF
February 13, 2012
To: William W. Bums, City Manager ��,� 1
*��, I��,
From: Dazin R. Nelson, Finance Director �-
Kyle Birkholz, Liquor Store Manager
Date: Februazy 8, 2012
Re: Liquar Stare Lease Renewal
Background
The City of Fridley has an existing lease for its wazehouse liquor store with ZCOF TL Fridley, LLC
a.k.a. Tri-Land Developments, Inc. of Westchester, Illinois. Tri-Land Developments is in the
process of finalizing redevelopment plans for the shopping center that currently houses both the
City's liquor store and Cub Foods. The proposed redevelopment will change the layout, size, and
location of the existing liquor store. The original lease dates back to 1999, and with significant
changes to the store itself, it's prudent to create a new lease rather than amend the existing lease.
The proposed redevelopment moves the north wall of the existing premises to the south by
approximately forty feet. As a result, a majority of the existing liquor store footprint will be
demolished. Our new footprint will resemble a more traditional strip mall size and shape with a
narrower storefront width accompanied by a deeper depth. Our new space will occupy
approximately 10,540 squaze feet, whereas our current location is over 13,300. A reduced store size
will allow for more efficient operations including a more controlled flow of customers through one
entrance rather than the two current entrances.
The terms of the lease aze very similaz to our existing lease. We will have a guazanteed lease
through October 31, 2018 with the option of two additional five-yeaz terms that include fixed rent
adjustments.
Commencement Date thru 10/31/2013
11/1/2013 thru 10/31/2018
Option Terms
11/1/2018 thru 10/31/2023
11/1/2023 thru 10/31/2028
� '.
$109,980.75/annually
$126,777.81 /annually
$145, 841.14/annual ly
$167,703.98/annually
The liquor store has experienced a decrease in sales since Gander Mountain vacated the space next
to the liquor store. In order for the liquor store to regain those lost sales, we need to have additional
tenants occupying the shopping center. Our next rent increase is scheduled to occur in November
2013. Fortunately, we were able to negotiate a rent rebate into the lease, which will help insulate
ourselves against this rent increase if the shopping center does not achieve 75°/a occupancy. The
rent rebate is in effect for the five-yeaz term from 2013 to 2018, and allows for a$1,000 monthly
rebate if the shopping center is less than 75% leased.
The new lease also calls for a$50,000 renovation allowance. We aze expecting some major costs to
relocate the cooler and the associated condensers, which will be paid for with this allowance.
Signage and decorating will also be reimbursed from this allowance. Preliminary estimates indicate
that signage purchases along with moving and setting up of the cooler and condensers will be
$25,000-30,000. The remaining allowance will be used for decorating including furnishing and
painting. We will be reusing our existing shelving, but new checkout counters will likely need to be
purchased.
Common azea maintenance services will also be changing with the new lease. Cub Foods will no
longer be performing the common azea maintenance services. Tri-Land Developments will now be
performing this function. We are optimistic that this will be a positive change, in that maintenance
will now be done more timely and to a higher standazd. As with the current lease, the liquor store is
only responsible for its prorated shaze of the shopping center in regazds to CAM chazges.
This lease is contingent upon Cub Foods signing a new lease. Without Cub Foods in this shopping
center, our liquor store operation at the current location is likely unsustainable. As of the date of
this memo, Cub Foods has not signed a new lease agreement. I have been told by the developer that
Cub Foods is anticipated to sign their lease agreement within the next couple weeks. In order to not
delay the construction of this project, I am recommending Council approve the lease agreement
with the stipulation that the signed lease not be delivered to the landlord until evidence of a new
Cub Foods lease is received.
The City Attorney and an associate of hers, Ken Rohlf, have each reviewed the lease and aze both
comfortable with the language. A number of their suggestions have been negotiated into this lease,
which substantially strengthened the City's position.
Recommendation
Staff recommends Council pass a resolution approving the liquor store lease between the City of
Fridley and ZCOF TL Fridley, LLC, with the stipulation that the lease not be delivered to the
landlord until evidence of a new Cub Foods lease is received.
��
RESOLUTTON NO. 2012 -
A RESOLUTION APPROVING AND AUTHORIZING EXECUTION OF LIQUOR STORE LEASE
BETWEEN CITY OF FRIDLEY AND ZCOF TL FRIDLEY, LLC
WIIEREAS, the City of Fridley has an existing lease for its warehouse liquor store with ZCOF TL
Fridley, LLC, a.k.a. Tri-Land Developments, Inc. of Westchester, Illinois located at 248 57th Avenue NE,
Fridley, Minnesota; and
WHEREAS, Tri-Land Developments is in the process of finalizing redevelopment plans for the shopping
center which currently bouses the City's liquor store and Cub Foods; and
WHEREAS, the redevelopment plans will change the location, layout and size of the liquor store. The
new footprint will resemble a more traditional strip mall size and shape by providing a nattower
storefront width and a deeper store depth. The new liquor store will be approximately 2,760 feet smaller
allowing for more efficient operations and a more controlled flow of customers through one entrance
rather than the current two entrances; and
WHEREAS, the tertns of the Iease are similar to the existing lease and provides for the current annual
lease rate of $109,980.75 through October 31, 2013, and an additional five-year lease beginning
November 1, 2013 through October 31, 2018 at an annual rate of $126,777.81, with the option of two
additional five-year terms that include fixed rent adjustments; and
WHEREAS, the liquor store experienced a decrease in sales since Gander Mountain vacated the space
next to the liquor store, the redevelopment plan provides for additional tenants which should help the
liquor store regain lost sales; and
WHEREAS, the City was able to negotiate a monthly $1,000 rent rebate into the lease to help insulate the
City against the rent increase if the shopping center does not achieve its anticipated 75% occupancy for
the first five-year term from 2013 to 2018; and
WIIEREAS, the new lease provides for a$50,000 renovation allowance for relocating the cooler and
associated condensers, signage and decorating expenses; and
WHEREAS, the common area maintenance services will be provided by Tri-Land Development and the
liquor store shall only be responsible for its prorated share of the shopping center, and
WHEREAS, the lease is contingent upon Cub Foods signing a new lease.
NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Fridley hereby approves
the liquor store lease between the City of Fridley and ZCOF TL Fridley, LLC, located at the new address
of 264 57th Avenue NE, Fridley, Minnesota, authorizes the execution of the lease by the Mayor with the
stipulation that the lease not be delivered to the landlord until evidence of a new Cub Foods lease is
received.
PASSED AND ADOPTED BY TTIE CITY COUNCIL OF THE CITY OF FRIDLEY THIS _ DAY
OF 2012.
Scott J. Lund, Mayor
ATTEST:
Debra A. Skogen, City Clerk
ss
qTY OF
FRIDLEY
AGENDA ITEM
CITY COUNCIL MEETING OF FEBRUARY 13, 2012
INFORMAL STATUS REPORTS
67
MoGed intc� IZecord 02; 13i2012
��r�-���� �.��: ����
Jan 23, 2012
Hon. Scott Lund
City of Fridley, Mayar
Dear Mr. Mayar
This letter reflects my concems regarding the propased repair af Oakley St NE as
it pertains to the driveway and garking lat at the MSUS Unitarian Church lacated
at 6565 Oakiey. I apalagize far nat being in attendance at the Jan 23 meeting, I
had a previous appaintment.
At a recent informational meeting regarding this subject I painted aut to the
project coardinator that the church has far years been cancerned abaut runaff
water from Oakley. (Oakley is graded toward the north thus a prepanderance of
the runoff ends up at the dead end barricade} The barricade is usualiy dammed by
snow piaw berms thus the winter runoff drains inta aur parking lat and exits thru
aur lat's drainage system ta the pand just NW of the dead end barricade. Summer
runoff alsa ends up an our lot hawever there is obviausty no freezing prablem.
Oakley is crowned in the center so that runaff is directed to the west and east
curbs. The west curb praperiy diracts this water to the pond, (unless biocked
by snow} however most af the east curb water runs dawn our driveway, narth thru
the parking Iat and if there is enaugh, exits thru aur drainage system to the pond.
Depending an temperatures, this runaff can and daes freeze creating a very
dangeraus situatian. Yaur caardinatar responded that he wauld taak at the
situatian and get back ta me. In a subsequent phane conversatian he indicated that
the understands the problem and that it wouid be taken care of by re-grading
during the course af the re-surfacing projece. I suggested that perha�s a curb catch
basin cauId be installed just befare aur driveway and he respanded that they would
not be doing that. I suggested a meeting and he indicated it wasn't necessary, he
wauid take care af the probiem.
My cancern is that if this problem is just "saived" by placing a talier hump (ar
curb} at the start af the driveway that this wi11 get broken down (Iike has happened
with the existing hump} by the heavy traffic that our driveway and parking lot
experiences. Not anly are there lots af cars that use aur lat but alsa many large
delivery trucks, garbage hauiers, postal delivery trucks and even city of Fridley
trucks, including snow plows that use our lot as a turnaround. We have been good
neighbors and permitted this use of our lot but are concerned that if it continues
and we have icy conditions, we may have a liability issue.
I would respectfully propose that you ask the project coordinator to re-visit this
situation and consider other possibilities. These could include but not limited to,
adding a turnaround at the north end of Oakley, drainage catch basins, removing
the center crown and replacing it with a crown on the east curb, extending the
paved part of Oakley north far enough to permit proper drainage and a place for
snow storage, providing a different sotution for plowed snow. I am willing to meet
with your representative to discuss this situation and these or other options.
Also, at the afore mentioned informational meeting I asked if some consideration
could be given to the project timing. Our church is very active daily thru June,
followed by itinerant activity in the July, August time frame. If it is possible to
economically schedule the project during these months it would help us and also
reduce the number of cars that will be driving back and forth thru the construction
site.
Respectfully,
Kate Kemper Chair Facilities and land committee MSUS Church
CC: Chad Snyder, President MSUS board of trustees.
Ann Bolkcom
Robert Barnette
James Saefke
Delores Varichak
Bill Burns
I'dIc�ce�i into Records 02'"13 2012
LEASE FOR
FRIDLEY MARKET
FRII3LEY, MINNESQTA
ARTICLE I. BAS[C LEASE PROVISIdI�iS AND ENUMERATIdN QF EXFIIBITS.
Section l,t. Basic Lease Peovisions.
EFFECTIVE DATE:
LANDLORD: ZCQF TL Fridiey LLC, a Delaware limited liability camgany.
ABBRESS dF LANDLQRI}: c(o Tri-Land I}evelapments, Ine., dne ``
Suite 520, VJestchester, lllinois 60154-5764.
With a capy of atl notices to c!o EGI Properties, L.L.C., Twa`. ��
Chicago, Illinois 6d6Q6 Attn: Leasing Coordinator. �
TENANT: City of Fridley, a Minnesota municipa[ corporatian.
NOTiCE ADDRESS dF TENAN'I`: 6431 University Ave. NE., Fridley, R, �ota 55432-4384
Attentian: DirectorafFinance.
TENANT`S T'R�1DE NAME: Fridley Liquars.
°r,
LEASED PREMISES: The space designated and crass-hatched an E�ibit A, cammanly kno�vn as
26d 57�' Avenue N.E., Fridley, Minnesota 5542t.
FLOOR AREA: 1d,546 square feet, treing the deemed rentabte area of the Leased Premises, as
out3ined in E�i6it A, subject ta re-measurement as provided in Section 3.l belaw.
LEASE TERM: Approximateiy six (6) Lease Years (plus a Partiai Lease Year, priar ta the first
Lease Yeaz).
FIXEI} MINIMUM RENT:
Lease YearCPeriod
1, ine[uding Partiai I.ease Year preceding
first Lease Year (Commencement
Date — IQ(31(2013}
2 through 6(I 1(It�013 — 16(31(2Q18}
05342t0076719 t 6d SA.10
Annaal Fixed Minimum Rent
$164,48Q.75
$126,777.81
Lease Yeaz/Period
(Option Terms)
7 through 11 (I 1/1/2018 —10/31/2023)
12 iluough 16 (l lJl/2023 —] 0/31/2028)
PERMITTED USES: A municipal liquor store
covenants and conrlitions set forih in this Lease
forth in Article VIII.
SECURI'fY DEPOSIT: None.
Annual Fixed Minunum Rent
$145,841.14
$167,703.98
and no other uses, subject to all of the terms,
including, without limitation, the covenants set
Section 12. Enumeration of Exhibits. The e�ibiu enumerated in this Section 1.2 and
attached to ttus Lease are incorporated in this Lease by this reference.
Exhibit A. Site Plan of Fridley Mazket.
Exhibit B. Depiction of Existing Premises.
Eachibit C. Descrip6on of Landlord's Work.
Exhibit D. Description of TenanPs Work.
Eachibit E. Sign Criteria.
E�ibit F. Rules and Regulations.
E�ibit G. Depiction of Designated Spaces.
Exhibit H. Depicrion of Loading Area.
ARTICLE II. LEASED PREMISES AND TERM
Section 2.1. Shoppin C� enter. Landlord is the owner of the tract of land located in the
Ciry of Fridley, Minnesota, commonly known as "Fridley Mazket" (°Landlord's Tract").
Landlord's Tract is depicted on Exhibit A. Landlord's Tract and any improvements and
appur[enances constructed thereon from time to time aze sometimes hereinafter referred to as the
"Shopping Center." Landlord reserves the right from time to time during the Lease Term to
make changes to the Shopping Center including the size and location of the buildings and
Common Areas, to construct kiosks, enclosed malls or courts, and to redesign or redecorate any
or all of the Shopping Center.
5ection 2.2. Leased Premises. Landlord hereby leases and demises to Tenant, and
Tenant hereby leases from Landlord, subject to and with the benefit of the provisions of this
Lease,the Leased Premises.
as3vz�oo�o��oasa.io
Section 2.3. Commencement of the Term. The Lease Term, and the obligations of the
Tenant to pay Rent hereunder and to commence retail operaiions in the Leased Premises, shalt
commence and accrue on the eazlier of (a) the date that Tenant first opens for business to the
public fully fixtured, stocked and staffed in the Leased Premises, or (b) the sixtieth (60'� day
following the date on which Landlord delivers possession of the Leased Premises to Tenant with
those portions of Landlord's �Vork more particularly described in Sections 1 through 5 of E�chibit
C substantially complete (the "Delivery Date"). Such date of commencement of the I,ease Term
as hereinabove provided, is referred to as the "Commencement Date." Tenant shall perform
diligendy such of its obligations contained in E�ibit D as aze to be performed by it prior to the
Lease Term, and sha11 complete its work not later than the Commencement Date.
Section 2.4. E�tistin Lease. Landlord and Tenant aze currently parties to that certain
Shopping Center Sublease dated as of June 14, 1999, as amended by that certain Fust
Amendment to Lease dated as of September 21, 2006 (collectively referred to herein as the
"Existing Lease"), for certain premises consisting of approximately 13,331 square feet, including
the Leased Premises and additional premises referred to herein as the "Surrender Premises", as
depicted on Ea�hibit B attached hereto (the Leased Premises and the Surrender Premises aze
collectively referred to herein as the "Existing Premises"). Prior to the Commencement Date,
Tenant shall continue to occupy the Existing Premises subject to the terms, covenants and
conditions of the Existing Lease, except as otherwise expressly provided in this Lease. Tenant
shall relocate Tenant's operations from the Existing Premises to the Leased Premises, as more
particulazly described in Exhibit C and Exhibit D, and open for business to the public in the
Leased Premises on the Commencement Date. Effective as of the Commencement Date, the
Existing Lease sha11 temilnate and shall be of no fiuther force or effect, and thereafter Tenant
shall be deemed to have surrendered possession of the Surrender Premises to Landlord, shall
have no right to possession of the Surrender Premises, and shall have no right to conduct
operations therein; provided, however, Landlord will allow Tenant to store its trade fixtures,
equipment and personal property located in the Surrender Premises immediately prior to the
Commencement Date in the Surrender Premises for a period of fourteen (14) days following the
Commencement Date, following which Landlord shal] have right to remove and dispose of same
without liabiliry to Tenant therefor. Until such time as Tenant has removed all of its trade
fixtures, equipment and personal propetty from the Surrender Premises, Tenant shall: (i)
continue to maintain (a) properly insurance covering a12 of TenanYs personal property located in
the Surrender Premises and (b) liabiliry insurance covering any entry onto the Surrender Premises
by Tenant and anyone holding under Tenant, including but not lnnited to TenanYs agents,
con�actors and employees; and (ii) sava Landlord, Landlord's beneficiaries and agents, their
respective officers, employees, shazeholders, directors, partners, managers and members and their
respective successors and assigns, harmless and indemnified from all injury, loss, claims or
damage to any person or property while on the Surrender Premises occasioned by an act or
omission of Tenant, or of anyone claiming by, through or under Tenant, and any injury or
damage to any person or property occuning in, on or about the Surrender Premises or any part
thereof.
Section 2.5. Term of Lease. The Lease Term shall be for the period specified in Secrion
1.1 supra, unless otherwise terminated or extended as provided herein.
05392\0070T910454.10 3
Section 2.6. Definifion of Lease Yeaz. The term "Lease Yeaz" means a period of twelve
(12) consecutive calendaz months, provided, however, that prior to the first Lease Yeaz there
shall be a"Partial Lease Yeaz" which shaii commence on the Commencement Date and shall end
on October 31, 2012. The first Lease Yeaz shall commence on November 1, 2012 and shall end
on October 31, 2013, and each succeeding Lease Year shall commence upon the anniversary date
of the first full Lease Yeaz.
Section 2.7. E�ctension Options. Provided Tenant is not otherwise in default hereunder
beyond any applicable notice and cure period and is continuously operating in the Leased
Premises for the Pernutted Uses at the time of TenanYs delivery of the First Eactension Notice
(defined herein), Tenant shall have the option ("First Extension Option") to extend the Lease
Term for one (1) period of five (5) additional Lease Years (the "First Option Term"), subject to
the terms, conditions, covenants and provisions of this Lease. Tenant shall exercise the First
Eatension Op6on by giving Landlord written notice thereof ("First Extension Notice") at least
three hundred thirty-five (335) days prior to the expiration of the initial Lease Term. If Tenant
shail fail to timely deliver the First Extension Notice to Landlord, or if Tenant shall be in default
beyond any applicable notice and cure period at the time of TenanYs delivery of the Fust
Extension Notice, the First E�ctension Option shall immediately become null and void.
In addition, provided Tenant has properly exercised the First Extension Option and
further provided Tenant is not otherwise in default hereunder and is continuously operating in the
Leased Premises for the Pernutted Uses beyond any applicable notice and cure period at the time
of Tenant's delivery of the Second Extension Notice (defined herein), Tenant shall have the
option ("Second E�ension Option") to extend the Lease Term for one (1) period of five (5)
addiUonal Lease Yeazs (the "Second Option Term"), subject to the terms, conditions, covenants
and provisions of this Lease. Tenant shall exercise the Second Extension Option by giving
Landlord written notice thereof ("Second Extension No6ce") at least at least ttuee hundred thirty-
five (335) days prior to the expirafion of the First Option Term. If Tenant shall fail to timely
deliver the Second Extension Nofice to Landloid, ar if Tenant shall be in defauIt beyond any
applicable notice and cure period at the time of Tenant's delivery of the Second Extension
Notice, the Second Extension Opfion shall immediately become null and void.
Section 2.8. Fridley 1498 L.L.C. Lease. It shall be an express condition precedent for
both Landlord and Tenant that Landlord and Fridley 1998 L.L.C. ("Cub") enter into a new lease
to reconfigure Cub's current premises in the Shopping Center (the 'New Cub Lease"). Landlord
shall notify Tenant in writing upon the execution of the New Cub Lease and verify the New Cub
Lease by showing Tenant the face page and the signature page of the I3ew Cub Lease.
ARTICLE III. CONSTRUCTION.
Section 3.1. Construction bv Landlord. Landlord will perform work in the Existing
Premises and the Leased Premises substantially in accordance with the oufline specifications
described in the schedule entitled Description of Landlord's Work and attached hereto as Eac�ibit
C. Not later than the Commencement Date, Landlord's azchitect will calculate the actual Floor
Area of the Leased Premises. If, pursuant to said calculation, the actual Floor Area of the Leased
Premises is less than or greater than that stated herein, then all applicable references to the Floor
Area of the Leased Premises shall be amended in accordance with said calculation; provided,
05392100707V10454.10
however, that if the squaze footage for the Leased Premises is equal to or greater than 10,300
squaze feet, then the Fixed Minimum Rent payable by Tenant under this Lease shall not be
affected. If the square footage for the Leased Premises less than 10,300 then the Fixed Minimum
Rent shall be amended to be $10.43 multiplied by the actual number of square feet for the Leased
Premises. In determin;ng the Floor Area of the Leased Premises, measurement shall be taken
from the outside surface of exterior walls and the center of interior dividing or demising walls.
Section 3.2. Construction bv Tenant. All work to be perFormed by Tenant prior to the
Commencement Date shall be governed by Exhibit D attached hereto and made a part hereof.
Any work to 6e performed by Tenant following the Commencement Date shall be governed by
Section 8.1.I of this Lease.
Section 33. Renovation Allowance. Provided Tenant is not otherwise in default beyond
any applicable no6ce and cure period, Landlord will reimburse Tenant for a portion of the costs
incurred by Tenant in relocating or replacing or adding fixtures, equipment and merchandise to
the Leased Premises in the amount of up to Fifty Thousand and No/100 Dollazs ($50,000.00) (the
"Renovation Allowance"), which amount shall be payable within forty-five (45) days following
the later to occur of (i) the Commencement Date and (ii) the date Tenant submits to Landlord a
written statement requesting such payment accompanied by paid invoices covering all costs
incurred by Tenant in connection with such work, certifies that the Shopping Center is free and
cleaz of all mechanics' liens and other encumbrances relating to such work by submitting a
commercially reasonable form reasonably acceptable to Landlord and Tenant, and provides to
Landlord waivers, affidavits and releases of lien from all of Tenant's contractors and material
suppliers relating to such work in form and substance reasonably satisfactory to Landlord
ARTICLE IV. METHOD OF RENT PAYMENT.
Section 4.1. Fixed Minunum Rent. Tenant agrees to pay to Landlord, or to such other
persons as Landlord may direct, without demand, at the Address of Landlord or such place as
Landlord may by notice in writing to Tenant from time to Ume direct, Fixed Minimum Rent in
the amount specified in Section 1.1, payable in United States Dollars in advance in equal
successive monthly installments commencing on the fust day of the Lease Term for the first
month of the Lease Term and thereafrer on the first day of each calendar month of the Lease
Term. If the Lease Term commences on a day other than the first day of the month, the monthly
rent payment for the first month shall be prorated on the basis of one-thirtieth (1/30th) of said
mont}ily payment for each day of said month that is included in the Lease Term. Until notified
to the contrary by Landlord, Tenant shall pay all amounts payable under this Lease to Tri-Land
Developments, Inc., One Westbrook Corporate Centei, Suite 520, Westchester, I1linois 60154-
5764.
Section 4.2. Delinquencv Chaz¢e For Late Rent Pavment -- Retumed Check Charge. To
the extent permitted by law, to each and every payment of Rent which is not received by
Landlord when due, there shall be added a delinquency chazge equal to ten percent (10%) of said
installment, payable immediately without the necessity of notice or demand by Landlord as
additional Rent hereunder. In addition, Tenant shall pay Landlord as additional Rent the sum of
Twenty Five Dollazs ($25.00) for each check given to Landlord by or on behalf of Tenant that is
retumed unpaid due to insufficient funds or otherwise.
oss9z�oo�o�ioasa.�o g
Section 43. Definition of Rent. The term "RenY' means all amounts due Landlord from
Tenant under or pursuant to this Lease, including, without limitation, Fixed Minimum Rent,
amounts due on account of real estate taaces, Operating Costs and insurance premiums.
Section 4.4. Fixed Minimum Rent Rebate. Provided that Tenant is not otherwise in
default under any provision of this Lease beyond any applicable notice and cure period, Tenant
shall be entitled to a partial rebate of Fixed Minimum Rent (the "Rent Rebate"), calculated on a
daily basis, during the period connmencing on November 1, 2013 through October 31, 2018
("Rent Rebate Period"). During the Rent Rebate Period, the Rent Rebate shall be equal to One
Thousand and No/100 Dollazs ($1,000.00) per month for each calendaz month (pro-rated for any
partial month) following November 1, 2013 during which less than seventy-five percent (75%) of
the total floor azea of the remaining existing building of the Shopping Center is leased and
occupied. The total Rent Rebate £or each calendaz yeaz shall be calculated and paid to Tenant
within sixty (60) days following the end of such calendaz yeaz. Landlord shall give Tenant
written notice of the fust date on which seventy-five percent (75%) or more of the total floor azea
of the Shopping Center is leased and occupied (the "Minimum Occupancy Date"), following
which Minimum Occupancy Date Tenant shall have no fiut6er right to the Rent Rebate;
provided, however, if at any time following the Minimum Occupancy Date and prior to October
31, 2018 the total floor azea of the Shopping Center which is leased and occupied is again less
than seventy-five percent (75%), Landlard shall give Tenant prompt written notice thereof,
whereupon Tenant shall again be entitled to the Rent Rebate effective as of the date on which
less thau seventy-five percent (75%) of the Shopping Center is leased and occupied until the
eazlier to occur of (a) the date on wlrich Landlord gives Tenant written notice of the first date on
which seventy-five percent (75%) or more of the total floor area of the Shopping Center is again
leased and occupied, and (b) October 31, 2018. Norivithstanding anything set forth herein to the
contrary, the Rent Rebate shall terminate and be of no further force or effect following October
31, 2018.
ARTICLE V. OPERATION OF THE SHOPPING CENTER
Section 5.1. Common Areas and Facilities. Landlord shall make available from time to
time such azeas and facIlities of ihe Shopping Center for the common benefit of the tenants and
occupanu of the Landlord's Tract as Landlord shall deem appropriate. Landlord shall, subject to
the other provisions of this Lease, operate, manage, equip, heat, ventilate, cool, light, insure,
secure, repair and maintain such common areas and facilities of the Shopping Center for their
intended purposes in such manner as Landlord shall in its sole discretion determine, and may
from Gme to time change the size, location, use and nature of any common azea and facility, sell
or lease any portion thereof, or assign the exclusive use tfiereof to one or more tenants; and may
make installations therein and move and remove such installations, including the installation of
kiosks, enclosed malls or courts. Landlord shall designate a Landlord representative with whom
Tenant may communicate regarding Tenant's maintenance needs with respect to the Common
Areas. Tenant shall not be required to look to Cub or any other tenant of the Shopping Center for
pecformance of any required maintenance or repairs in the Common Areas which aze Landlord's
obligations under this Lease.
Section 5.2. Use of Common Areas. Tenant and its permitted concessionaires, officers,
employees, agents, customers and invitees shall have the non-exclusive right, in common with
0539210070T910454. I0
Landlord and all others to whom Landlord has or may hereafter grant rights, to use such portions
of the common areas as designated from time to time by Landlord, subject to such reasonable
regulations as Landlord may from time to time impose including the designation of specific azeas
in which cars owned by Tenant, its pernutted concessionaires, officers, employees and agents
must be pazked. Tenant agrees to abide by such regulations and to use its best efforts to cause its
petmitted concessioaaires, officers, employees, agents, customers and invitees to conform
thereto. Landlord may at any time close temporarily any common azea to make repairs or
changes to prevent the acquisirion of public rights in such area or to discourage noncustomer
pazking; and may do such other acts in and to the common azeas as in its judgment may be
desirable to improve the convenience thereof. Tenant sha11 upon request fumish to Landlord the
license numbers and description of the cars operated by Tenant and its permitted concessionaires,
officers, employees, and agents. Tenant shall not at any time interfere with the rights of Landlord
and other tenants, and their pernnitted concessionaires, officers, employees, agents, customers and
invitees, to use any part of the parking areas and other common azeas. Landlord reserves the
right to grant to other tenants and third persons such exclusive and non-exclusive rights in the
common azeas as from time to time the Landlord deems appropriate.
Secrion 53. Operaring Cost Payment During each Landlord Fiscat Year (or portion
thereo� during the Lease Term following the Commencement Date, Tenant shall pay to Landlord
on account of Tenani's obligation under Section 5.4, the Operating Cost Payment which shall be
payable in equal monthly installments on the first day of every calendar month during the Lease
Term and a pro-rata sum for the partial month, if any, at the beginning of the Lease Term,
payable on the Commencement Date. The Operating Cost Payment shall be equal to one-twelfth
(1/12�') of the total annual Operating Costs, as estimated by Landlord, plus an Administrative
Charge equal to twelve and one-half percent (12.5%) of the foregoing. Following each Landlord
Fiscal Year, the Operating Cost Payment shall be adjusted upwards or downwards based on
Landlord's estimate of what the actual costs for the current Landlord Fiscal Yeaz will be, as
defined in Section 5.4 hereof, including the appropriate Adrninistrative Chazges as herein
provided, which shall be payable retroactively to the first day of such Landlord Fiscal Year.
"Landlord Fiscal Year" shall mean the fiscal yeaz established by Landlord in its sole discretion.
Section 5.4. Landlord's O�perating Costs. Tenant shall pay as additional Rent "Tenant's
Pro-Rata Shaze" (as such term is defined in Section 11.1 of this Lease) of all reasonable costs and
expenses paid or incurred by Landlord dwing the Lease Term in operating, equipping, policing
(if and to the extent provided by Landlord), protecting, insuring, heating, cooling, lighting,
painting, cleaning, ventilating, repairing, replacing and maintaining the Shopping Center.
Operafing Costs shall include, but not be timited to: (i) maintaining the enclosed Common Areas
including the service comdors and utility rooms that serve multiple tenants; (ii) traffic control
including signage repairs and replacements, line painting, and temporary staffed h�affic control
personne(; (iii) cleaning; repairing and maintaining foundations, wa11s, roofs, gutters,
downspouts, fascias, soffits, canopies; (iv) security, including security service personnel, security
camera and fire alarm systems, fire hydrants, sprinkler systems and other fue protecUon devices
and equipment; (v) repair of water and sewer lines outside tenant spaces, including periodic
video line inspections and jetting; (vi) removai of rubbish and other refuse, not including the
removal of individual tenant trash pickup; (vii) pedestrian traffic direction and control; (viii)
exterior illumination of buildings and Common Areas; (viii) illumination and maintenance of
0539210070T910454.10
Shopping Center signs; (ix) dirt, debris, snow and ice cleazance; (x) planting, maintaining,
replanting and replacing flowers and other landscaping; (xi) water and sewage chazges; (xii) the
costs associated with the operation of a maintenance shop including electricity, gas, telephone,
water and sewer chazges; (xiii) premiums for mischief, vandalism, workers compensation,
employees' liability, property damage, casualty, liability and other insurance; (xiv) wages,
salaries and other personnel costs including wsts of uniforms; wage, unemployment and social
security taxes for persons directly engaged in perfomvng on-site maintenance and repair of the
Common Areas; (xv) required licenses and permits; supplies and hand tools; (xvi) all charges for
utility services, including maintaining lighting fixtures (including the cost of light bulbs and
electric cutrent); (�ii) all costs, expenses, chazges, oY other impositions or assessments incurred
by Landlord in connection with environmental protecrion legislation or regulation or imposed on
the Shopping Center or any part thereof with regazd thereto; and (xviii) reasonable depreciation
of or rents paid for the leasing of equipment used in the operation of the 5hopping Center. The
following costs shall be excluded: (a) costs of equipment properly chargeable to Landlord's
capital account and depreciation of the original cost of constructing the Shopping Center as well
as the depreciation of all costs associated with the remodeling of the Shopping Center scheduled
to begin in 2012; and (b) costs incurred in maintaining the roof and structure of the premises
leased by Cub. In the event that any Operating Costs are incurred or increased as a result of the
particular needs of Tenant, Landlord reserves the right to chazge Tenant for the full amount of
any Operating Costs incurred or increased as a result of Tenant's particular needs. Any Operating
Cost which is incurred or increased as a result of the requirements of more than one tenant tnay
be allocated among such tenants in a manner deemed equitable by Landlord. Landlord may, in
its sole and absolute disaretion but subject to the provisions of Section 5.5 below, defer billing to
Tenant, all or any portion of any Operating Cost incurred in one Landlord Fiscal Yeaz to future
Landlord Fiscal Yeazs. In the event tUat any Operating Costs aze incurred or increased as a zesult
of the par[iculaz needs of Tenant, Landlord reserves the right to chazge Tenant for the full amount
of any Operating Costs incurred or increased as a result of TenanYs particular needs. Any
Operating Cost which is incurred or increased as a result of the requirements of more than one
tenant may be allocated among such tenants in a manner deemed equitable by Landlord.
In the event Operating Costs relating to outdoor azeas and facilities aze not sepazately
incurred for the Shopping Center but aze incurred together with other azeas within the vicinity of
the Shopping Center, then the cost allocable to the Shopping Center shall be an amount equal to
the product of such total cost multiplied by a fraction, the numerator of which shall be the squaze
footage of the outdoor azea within the Shopping Center and the denominator of which shall be
the sum of the square footage of the outdoor azea within the Shopping Center plus the squate
footage of other outdoor azeas outside the Shopping Center for which expenses have been
incurred and included within such total cost.
Section 5.5. Annual O�eratine Cost Budget; Landlord's Statement. Prior to the
Commencement Date and not later than December 1 of each Landlord Fiscal Yeaz thereafter,
Landlord shall prepaze and deliver to Tenant Landlord's budget for Operating Costs for the
immediately following calendar yeaz (the "Annual Operating Cost BudgeY') which Annual
Operating Cost Budget shall represent Landlord's good faith estimate of Operating Costs by
category line item, based upon (except for the first full Landlord Fiscal Yeaz and the Partial
05392\007071910454.10 g
Lease Yeaz) the actual Operating Costs for the Shopping Center for the prior Landlord Fiscal
Yeaz.
In the event any Annual Operating Cost Budget includes a budgeted expenditure for a single
line item repair or replacement estimated to cost in excess of (a) $25,000.00 during the initial Lease
Term, (b) $30,000.00 in the First Option Term, or (c) $35,000.00 during the Second Option Term,
Landlord shall provide Tenant with evidence of the need for such repair or replacement. In the
event that Tenant, in good faith, shall reasonably dispute Landlord's conclusion of the need for such
repair or replacement, Tenant shall notify the Landiord of such objection in wtiting within fif4een
(15) business days following Tenant's receipt of the Annual Operating Cost Budget ("TenanYs
Objection Notice"). Upon Landlord's receipt of TenanYs notice, Landlord shall have the option to:
(i) delete such line item form the Annual Operating Cost Budget (ii) amend the Annual Operating
Cost Budget to accommodate the rationale set forth in TenanPs Objection Nolice; or (iii) provide
the Tenant with a professional evaluation of the condition and the recommendalion for the repair or
replacement accompanied by an estimated cost to perform same, which evaluation and
recommendation shall be conclusive. In the event that Landlord fails to provide Tenant with the
aforementioned professional evaluarion and recommendation within fifteen (15) days after
Landlord's receipt of Tenant's Objection Notice, the repair or replacement, as the case may he, shall
not be included in Operating Costs.
Notwithstanding anything set for[h in Section 5.4 to the contrary, in the event any item of
repau or maintenance is to be performed over a period of Landlord Fiscal Years, the Annual
Operating Cost Budget for the first Landlord Fiscal Yeaz in which such repair or maintenance is to
be performed shall sepazately idenfify the anticipated cost, timiug and area of such work for each
Landlord Fiscal Yeaz sepazately and the total for all Landlord Fiscal Yeazs in such period.
In each Lease Yeaz after the end of Landlard's Fiscal Yeaz, and after the end of Landlord's
Fiscal Yeaz following expiration or termination of the Lease Term, Landlord shall furnish Tenant
a statement, in reasonable detail, of (i) Landlord's actual Operating Costs paid or incurred by
Landlord, and thereupon there shall be an adjustrnent between Landlord and Tenant with
payment to or repayment by Landlord, as the case may be, to the end that Landlord shall receive
the entire amovnt of TenanYs Pro-Rata Shate of Operating Costs plus twelve and one-half
percent (12.5%) of the foregoing as the Administrative Chazge. Any amount due from Tenant
shall be payable within ten (1�) days following the rendition of Landlord's statement therefor.
Any amount due from Landlord shall be credited towazd Tenant's next due Operating Cost
Payment; or at the temunation of the Lease Term, payable to Tenant within ten (10) days
following the rendition of Landlord's statement described in this paragraph. The obligation of
Landlord or Tenant hereunder shall survive the expiration or eazlier termination of the Lease
Term.
ARTICLE VI. UTILITY SERVICE
Section 6.1. Utilities. Tenant agrees that throughout the L,ease Term it will pay for and
pmvide its own water meter, water meter pit, and other meters, heat, air conditioning, water, gas,
electricity and all other utilities, and Tenant finther agrees that it will pay all water and sewage
chazges imposed by govemment authoriTy or otherwise. Tenant will not install or use any
053921007071910454.10 [�
equipment on the I,eased Premises which may exceed the capacity of any u61iry facilities serving
the Leased Premises.
ARTICLE VII. Lf1NDLORD'S ADDITIONAL COVENANTS.
Section 7.1. Repairs by Landlord. Landlord covenants to keep the foundations of the
Leased Premises and the structural soundness of the roof, concrete floors and exterior walls
thereof, in good order, repair and condition, unless any necessary work is required because of
damage caused by any act, omission or negligence of Tenant, any pemutted concessionaire or
their respective employees, agents, invitees, licensees or contractors. Landlord shall not be
required to commence any such repair until a reasonable time after rvritten notice from Tenant
that the same is necessary. The provisions of this Section 7.1 shall not apply in the case of
damage or destruction by fire or other casualty or a taking under the power of eminent domain, in
which events the obligations of Landlord shaIl be controlled by Article IX. Except as provided in
this Section 7.1, Landlord shall not be obligated to make repairs, replacements or improvements
of any kind upon the Leased Premises, or any equipment, facilities or fixtures contained therein,
which shall be the responsibIlity of Tenant as provided in Article VIII, Subsections 8.1 F and G.
Section 7.2. Quiet Eniovment. Landlord covenants that Tenant on paying the Rent and
perfomung Tenant's obligations in this Lease shall peacefully and quietly have, hold and enjoy
the Leased Premises tluoughout the Lease Term or unlil it is terminated as in this Lease
provided.
ARTICLE VIII. TENANT'S ADDITIONAL COVENANTS.
Section 8.1. Covenanis. Tenant covenants at its expense at all times during the Lease
Term and during any other time that Tenant enters upon the Leased Premises, including any
period prior to the Commencement Date:
A. To perForm promptly all of the obligations of Tenant set forth in this
Lease, and to pay when due the Rent without notice and without any set offs whatsoever.
B. To operate in the Leased Premises only under Tenant's Trade Name for the
Permitted Uses; to refrain &om conducting any "going out of business", or bankruptcy or
sunilaz distress sales.
C. To record and report all Gross Sales as provided herein:
(i) Within fifteen (IS) days after the end of each fiscal quarter, or portion
thereof, in the Lease Term, Tenant shall fiunish Landlord a statement, certified by
Tenant's Director of Finance, of TenanYs Gtoss Sales during such quarter or portion
thereof. As used herein, "Gross Sales" shall mean the total amount in dollars of the
actual sales price of all sales or rentals of inerchandise (including gift certificates sold in
or from the Leased Premises) and services, and all other receipu of business conducted
in or from the I,eased Premises, including sales by any sublessee, concessionaire,
licensee and any other person or persons doing business in or from the Leased Premises.
05392\00707VI0454.I0 10
(ii) In the event any sublessee, concessionaire, licensee or other person or
persons shall do business in or from the Leased Premises, Tenant is responsible for
ens»ring that such par[ies' records and statements conform to the requirements in this
Article N. The failure of any such party to maintain records and statements as required
hereunder, or to correctly report gross sales, shall be deemed a failure on the part of
Tenant to conform to the requirements of this Article and shall subject Tenant to the
temedies set forth in the Lease.
D. To fizlly perform Tenant's Work in accordance with the terms set forth in
this Lease and E�ibit D and open for business to the public in the Leased Premises fully
fixttu�ed, stocked and staffed on the Commencement Date for one (1) day; unless Tenant
has properly exercised its option to Go Dazk as provided herein, to use and continuously
operate for a minimum of at least eight (8) hours per day for six days per week (excluding
therefrom (i) legal holidays, (ii) other days where the sale is prohibited by Minnesota Law
and (iii) days on which Tenant is prevented from operating the Leased Premises due to
Force Majeure (defined herein)) for retail sales purposes all of the Leased Premises other
than such minor portions thereof as aze reasonabty required for storage and office
purposes, except when and to the eartent thaT ihe Leased Premises aze untenantable by
reason of damage by fire or other casualry, to identify the Leased Premises with signage
in accordance with the terms of this Lease; to open for business and remain open duting
the entire Lease Term; and to light its signs and its display windows, if any, during the
hours the Leased Premises aze open for business. As used herein, "Force Majeure" shall
mean casualty or delays caused by any govemmental or quasi-govemmental entity;
shortages of materiats, natural resources or labor; fire; catastrophe; labor strikes; civil
commotion; riots; waz; acts of God; govemmental prohibitions or regulations; or any and
all other extraordinary causes (but not including financial inabiliry.)
Tenant shall have the option to cease operations and/or vacate the Leased
Premises ("Go Dazk") by giving Landlord not less than sixry (60) days prior written
notice of the date on which Tenant shall Go Dazk (the "Go Dazk NoUCe"). In the event
that Tenant delivers a Go Dark Nouce, following the ninetieth (90�') consecutive day that
the Leased Premises aze closed for business (except for periods during which the Leased
Premises are untenantable by reason of damage by fire or other casualty, or periods of
remodeling not to exceed thirty (30) consecutive days), Landlord shatl have the right to
terminate the Lease and recaptvre the Leased Premises by giving Tenant written nouce
thereof ("Landlord's Temvnation NoGce"), whereupon the Lease shall terminate effective
as of the date specified in Landlord's Termination Notice. In the event Tenant elects to
Go Dazk as provided in ttus Section 8.1.D, Tenant shall remain fully liable to perform all
of its obligations under this Lease, including but not limited to Tenant's obligafion to pay
Rent and all other cktarges due hereunder until the eazlier of (a) the expiration of the then
current L,ease Term or (b) the date set forth in Landlord's TernunaUon Notice, in the event
Landlord elects to terminate the Lease as provided herein. In the event that Landlord
terminates the Lease as provided herein, Tenant shall surrender the Leased Premises in
the condition required pursuant to Section 8.1.M of this Lease not later than the date
specified in Landlord's Termination Notice.
053921007071910454.10 11
E. To store all trash and refuse in adequate containers within the Leased
Premises which Tenant shall maintain in a neat and clean condition and so as not to be
visibie to members of the public shopping at the Shopping Center and so as not to create
any health or fire hazazd, and to attend to the daily disposal thereof in the manner
designated by Landlord; to comply with any recycling program; to keep all drains inside
the Leased Premises clean; to receive and deliver goods and merchandise only in the
manner and at such times and in such azeas as may be designated by Landlord; and to
conform to all rules and regulations as set forth in Exhibit F hereto and to all reasonable
and nondiscriminatory rules and regulations which Landlord may make.
F.
(i) To maintain in good order, condition and repair, the Leased Premises,
including the store front or store fronts, plate glass, window cases, or window frames,
doors or door frames, and the pipes, plumbing, glass, store-fronts, elechic wiring, air
conditioning and heating equipment, boilers, motors, engines, tanks, machinery,
fixtures, appliances and appurtenances belonging thereto installed for use in
wnnection with the Leased Premises, including the repair, maintenance and periodic
cleaning of TenanYs fascia and undercanopy or soffit signs, and the maintenance and
repau of any sewer ejection system serving the Leased Premises whether located
withiu or outside of the Leased Premises, and to refrain from overloading the floors; to
take reasonable measLUes to prevent mold conditions from occurring and to take
reasonable acGons to remediate any mold conditions that occur as a result of TenanYs
acts or omissions; to refrain from bringing, or disposing of, any Hazazdous Substances
(the term "Hazazdous Substances" shall include any hazardous or toxic substance,
material or waste which is declazed to be "toxid' or "hazazdous [or words of similaz
import], or is otherwise regulated as such under any law, ordinance or regularion now
or hereafter enacted or promulgated by any lawful authority) into or at the Leased
Premises or the Shopping Center (and to prohibit their agents, employees and
contractors from doing so), other than de minimis amounts, and to remediate any
Hazardous Substances introduced into the Leased Premises or the Shopping Center by
Tenant (or its agents, employees or contractors); to make as and when needed by
contractors or mechanics approved by Landlord, ail repairs in or about the Leased
Premises and in and to all such equipment, fixtures, appliances and appurtenances
necessary to keep the same in good order and operating condition. Tenant shall give
Landlord prior written notification of any repair work to be performed on the Leased
Premises. All repairs made by Tenant shall be equal in quality and class to the original
work, and shail be performed and completed in accocdance with all applicable statutes,
ordinances, regulations and wdes, including those goveming the handling, caze and
removal of any materials involved in or affected by such repairs. When used in this
Lease the term "repairs" shall include all replacements, renewals, alterafions, additions
and betterments.
(ii) To keep in effect, at its sole cost and expense, a maintenance agreement
with a reputable and qualified contractor approved by Landlord providing for periodic
(at least semi-annual) servicing and repair of the heating, ventilating and air
0539210070'N10454.10 12
conditioning ("HVAC") system serving the Leased Premises. Tenant shall provide
Landlord with semi-annual reports not later than October 15 and April 15 of each
Lease Yeaz on the condition and maintenance report form provitded by Landlord to
Tenant, summatizing the condition of the HVAC, the maintenance performed on the
HVAC during the period since the last report and the recommendations for the
maintenance to be performed for the succeeding six month period.
G. To promptly comply with all present and future laws, ordinances, orders,
rules, regulafions, and requirements (collectively hereinafter referred to as "Orders") of all
federal, state, municipal and local governments, departments, commissions, boazds and
officers, and all Orders of Landlord's and TenanYs insurance carriers whether foreseen or
unforeseen, ordinary as well as extraordinary, which may be applicable to the Leased
Premises or Tenant's use thereof.
H. To exterminate all insects ot vermin, if the same infest the Leased
Premises and to employ such exterminators and such exterminaung company or
companies as shall be approved by Landlord.
L To refrain from making any alterations to the Leased Premises, or any
penetrations to the roof or floor slab of the Leased Premises, without the Landlard's prior
consent and compliance with the following requirements of the Lease and subject to any
of Landlord's conditions to ganting such consent; to pay promptly when due the entire
cost of any work in the Leased Premises undertaken by Tenant so that the Leased
Premises, including Tenant's leasehold estate shall at all times be free of liens for labor
and materials; to procure and provide copies to Landlord of a11 necessary permits before
undertaking such work; to do all of such work in a good and workmanlike manner,
employing only new materials and new fixtures of good quality; to procure Builder's Risk
insurance whenever appropriate in amounts and with companies satisfactory to Landlord;
to perform such work only with contractors, plans and specifications previously approved
in writing by Landlord and to comply with the requirements of Eachibits D and E; to
perform and complete such work in accordance with all applicable statutes, ordinances,
regulations and codes, including those governing the handling, care and removal of any
materials involved in or affected by such work; and to defend and save Landlord and
Landlord's beneficiaries and agents hazmless and indemnified from all utjury, loss, claims
or damage to any person or property occasioned by or growing out of such work.
J. Except for injury, loss, clairrts or damage resulting from the negligence or
intentional misconduct of Landlord, to defend and save Landlord, Landlord's beneficiaries
and agents, their respective officers, employees, shazeholders, directors, partners,
managers and members and their respective successors and assigns, harmless and
indemnified from all injury, loss, claims or damage to any person or property while on the
Leased Premises or any other part of the Shopping Center occasioned by an act or
omission of Tenant, or of anyone claiming by, through or under Tenant, and any injury or
damage to any person or property occurring in, on or about the Leased Premises or any
part thereof and any injury, loss, claims or damage arising from Tenant's breach of this
Lease; to observe and comply with the requirements of all policies of public liabiliry, fue
oss9z�aa�o�uiaasa.io 13
and all other policies of insurance at any time in force with respect to the Shopping
Center or any part thereof; to maintain the following insurance:
(i) Commercial general liability ("CGL") insurance written on an
occurrence basis, including suck endorsements as Landlord may require, covering the
Leased Premises and all operations of Tenant in or about the Leased Premises and
anywhere upon Landiord's Tract, against claims for bodily injury, property damage and
product liability and to include contractual liability coverage insuring Tenant's
indemnification obligations under this Lease, to be in combined single lunits of not
less than $1;000,000 each occurrence for bodily injury and property damage,
$1,000,000 for products/completed operations aggregate, $1,000,000 for personal
injuty, and to have general aggregate limits of not less than $2,000,000 (per location)
and Umhrella Liability Insurance in an amount noi less than $1,000,0�0 for each
policy yeaz. The general aggregate limits under the CGL insurance policy or policies
shall apply separately to the Leased Premises and to TenanYs use thereof (and not to
any other location or use of Tenant) and such policy shall contain an endorsement to
that effect. Landlord shall have the right to direct Tenant to increase said amounts
whenever it considers them inadequate;
(ii) Property insurance with "Special Form Causes of Loss" coverage
adequate to cover the replacement cost of all of TenanYs stock in trade, fixtures,
furniture, fiunishings, floor coverings and equipment in the Leased Premises, with a
deductible not exceeding $5,000.00 per occmrence and with the insurer's waiver of any
coinsurance provisions, and plate glass insurance covering all exterior plate glass in
the Leased Premises.
(iii) Workers' compensation insurance coverage covering all persons directly
employed by Tenant and with respect to which death or injury claims could be asserted
against Tenant, Landlord or the Shopping Center or any interest therein, with limits not
less than as required by applicable law and regulations, together with an employers
liability limit of not less than $500,000 per accident/disease/policy.
All of said insurance shall be in form and in responsible companies satisfactory
to Landlord with an A.M. Best Rating or its equivalent of A-VIII or better and shall
provide that it will not be subject to cancellation, terminarion or change except after at
least thirty (30) days prior written notice to Landlord. The policies ar duly executed
certificates for the same (which certificates shall evidence the insurer's waiver of
subrogation) together with a copy of an additional insured endorsement (except with
respect to the workers' wmpensation coverage) naming Landlord, Landlord's
mortgagees, beneficiaries and agents, as their interests may appeaz, and satisfactory
evidence of the payment of premiums thereon, shall be deposited with Landlord no
later than the day Tenant begins Tenant's Work, and upon renewals of such policies,
not less than thirty (30) days priar to the expiration of the term of such coverage. If
Tenant fails to comply with such requirements, Landlord may obtain such inswance
and keep the same in effect and Tenant shall pay Landlord the premium cost thereof
upon demand. Each such payment shall constitute additional rent payable by Tenant
under this Lease.
053925007071910454.10 14
In the avent Tenant's occupancy or operation causes any increase of premium
for the fire and extended coverage and/or casualty rates on the Leased Premises or
Shopping Center or any part thereof above the rate for the least hazazdous type of
occupancy legally permitted in the Leased Premises, or pretnium for the rent insurance
policy that may be carried by Landlord, Tenant shall pay the additional premiwn on the
fire, boiler and/or casualty insurance policies by reason thereof within ten (10) days
following the billing thereof as additional rent.
K. To waive all clauns for damage to TenanYs business or person or property
sustained by Tenant or any person claiming through Tenant resulting from any accident or
occurrence in or upon the Leased Premises or the building of which they shall be a part,
or any other part of the Shopping Center, to waive all claims for damage attributable to
any act, omission or negligence by other tenants of the Shopping Center.
L. To permit Landlord, Landlord's mortgagee and their agents to enter the
Leased Premises at reasonable fvnes after providing notice to Tenant for the purpose of
inspecting same, making repairs, additions or alterations thereto or to the building in
which the same aze located and showing the Leased Premises to prospective purchasers,
lenders and tenants. Upon the failure of Tenant to operate in the Leased Premises for a
period of forty-eight consecutive hours, and provided Tenant has vacated the Leased
Premises, in wfioIe or in part, during such period, Tenant hereby authorizes Landlord to
enter the Leased Premises and to take such action as Landlord deems necessary or
prudent to secure the Leased Premises. The parties hereby acknowledge that Landlord's
entry hereunder shall not affect Landlord's other rights and remedies in this Lease nor are
the rights herein granted to Landlord intended to abridge any requirements of applicable
law far Landlord to gain possession of fhe Leased Premises by process of law; it being the
intention of the parties that Landlord have this limited right of access to assist Tenant
with respect to TenanYs obligation to secure, protect and preserve the Leased Premises.
LU�
(i) To surrender, at the terminafion of this Lease, the Leased Premises in a
broom-clean condition, free of debris and in the same condition (subject to the
removals hereinafter required) as the Leased Premises were on the date Tenant opened
the Leased Premises for business to the public, reasonable wear and tear excepted,
with all holes in walls patched, taped and sanded ready far paint, and to surrender all
keys for the Leased Premises to Landlord at the place then fixed for the payment of
rent, and to inform Landlord of all combinations on locks, safes and vaults, if any, in
the Leased Premises; to remove, during the last tlurty (30) days of the Lease Term, all
of TenanYs trade fixtures, and to the extent required by Landlord by written ttotice, any
other installa$ons, alterations, improvements, wall coverings or floor coverings (and
any adhesives relating thereto) before surrendering the Leased Premises as aforesaid
and to repair any damage to the Leased Premises or the Shopping Center caused
thereby. Any alterations, changes, addirions and improvements (specifically including,
by way of example, light fixtures and heating and air conditioning equipment) shall
immediately upon the termination of this Lease, at Landlord's option, become
Landlord's property, be considered part of the Leased Premises, and shall not be
0539210070T910454.10 ] j
removed at or prior to the end of the Lease Term without Landlord's written consent
unless Landlord requests Tenant to remove same. If Tenant fails to remove any
shelving, decorations, equipment, trade fixtures or personal property from the Leased
Premises upon the end of the Lease Term, at Landlord's option they shall become
Landlord's property and Tenant shall pay for the repair of any damage done to the
Leased Premises or Shopping Center and ttte costs incurred resalting from the removal
of the same.
(ii) To remove, at the termination of tius Lease, Tenant's sign from the
fascia above the storefront of the Leased Premises, and any other signs Landlord may
have pernutted Tenant to �x to any wall surface in the Shopping Center, and to
reimburse Landford for the cost incurred by Landlord to repair, restore, repaint and/or
re-stain the fascia necessitated by the removal of such signs. The under canopy soffit
sign (other than Tenant's removable name panels) shall remain and upon termination
of the Lease shall become the property of Landlord.
N. Recognizing that this Lease and the rights and interests of Tenant under
this Lease aze and shall be subject and subordinate to any mortgages or trust deeds which
Landlord has placed or may place upon the Landlord's Tract and the Leased Premises,
and to any advances made thereunder, and to the interest thereon, and all extensions
theLeof, to execute and deliver whatever inst��uments may be requited to evidence same.
In the event Tenant fails to execute and deliver such instruments evidencing that this
Lease is subordinate within ten (10) days after demand in writing, Tenant does hereby
make, constitute and irrevocably appoint Landlord as its attorney in fact and in its name,
place and stead so to do without prejudice to Landlord's remedies under this Lease which
are cumulative. Tenant acknowledges and agrees that this Lease is subject and
subordinate to any such future or existing mortgages or trust deeds, and to any advances
made thereunder, and to the interest thereon, and all extensions thereof, without the need
for a separate instrument evidencing same. If any foreclosure or power of sale
proceedings aze initiated by the holder of any such mortgage oz the trustee under any such
trust deed, or a deed in lieu is granted, Tenant agrees, upon written request of any such
holder or trustee, or purchaser at such sale, to attorn and pay Rent to such party and to
execute and delivet any instrvinents necessary or appropriate to evidence or effectuate
such attomment. In the event of attomment, no holder of any such mortgage or
beneficiary under any such trust deed, or purchaser at such sale shall be: (i) tiable for any
act or omission of Landlord, or subject to any offsets or defenses which Tenant might
have against Landlord (prior to such holder, beneficiary or pwchaser becoming Landlord
under such attornment), (ii) liable for any security deposit or bound by any prepaid Rent
not actually received by such holder, beneficiary or purchaser, or (iii) bound by any
modification or amendment of this Lease not consented to by such holder, beneFciary or
purchaser. Tenant agrees to give the holder of any such mortgage or the trustee under any
sUCh trust deed by certified mail; return receipt requested, a copy of any notice of default
served by Tenant upon Landlord, provided that prior to such notice Tenant has been
notified in writing (by way of service on Tenant of a copy of an assignment of leases, or
otherwise) of the name and address of such holder or trustee. Tenant fiirther agrees that if
Landlord shall have faiied to cure such default witlun the time permitted Landlord for
ossvz�omo�ioasa.�o 16
cure under this Lease, any such holder or trustee whose address has been so provided to
Tenant shall have an additional period of thirty (30) days in which to cure (or such
additional time as may be requued due to causes beyond the control of such holdei or
trustee, including time to obtain possession of Landlord's Tract by power of sale or
judicial action). To the extent not expressly prohibited by law, Tenant waives the
provisions of any law now or hereafter adopted which may give or purport to give Tenant
any right ar election to terminate or otherwise adversely affect this Lease ar TenanYs
obligations hereunder if forecIosure or power of sale proceedings are initiated, prosecuted
or completed.
Any mortgagee or trustee may elect also to give the rights and interest of Tenant
under this Lease prioriry over the lien of its mortgage or trust deed. Such election shall be
effective upon written notice to Tenant.
O. To pay to Landlord Tenant's Pro-Rata Shaze of the real estate t�es (to the
extent not paid pursuant to Article V, suura.), during the Lease Term, and any renewal or
extension thereof, including any period during which Tenant shall h�ansact business in the
Leased Premises priar to the Commencement Date. The term "real estate taxes" shall
include all real estate taxes, assessments, levies and other govemmental nnpositions and
chazges which sha11 or may, during the Lease Term, be levied, assessed, imposed, become
due and payable, or liens upon, or arise in connec6on with, the use, occupancy or
possession of the Shopping Centez, including all costs incurred by Landlord in contesting
or negotiating the same before or after assessments with govemmental authorities.
Tenant agrees to pay to the Landlord one-twelfth (1/12) of the "Initial Real Estate
Tar PaymenY' as such term is herein defined) on the first day of each calendaz month
commencing upon the Commencement Date as its estimated payment for real estate taxes
for the first calendar yeaz or portion thereof included in the Lease Tezm. The term "Initial
Real Estate Tax PaymenY' sha11 mean and be equal to an amount estimated by Landlord to
be Tenant's real estate tas liability for the first calendaz year ar portion thereof included in
the Lease Term. For each calendaz yeaz thereafter, Tenant shall pay Landlord monthly
one-twelfrh (1/12th) of the amount estimated by Landlord to be Tenant's real estate tax
liability in respect of each such calendaz yeaz. Any amount paid by Tenant which exceeds
the true amount due shall be credited on the next succeeding payment due pursuant to this
Section. If Tenant has paid less than the amount due, Tenant shail pay the difference
within ten (10) days of receipt of notice from Landlord. This covenant shall survive the
expiration or eazlier termination of the Lease Term. If the Lease Term shall begin or end
other than on the first or last day of a calendaz yeaz, such chazges shall be billed and
adjusted on the basis of such fracrion of a calendar yeaz. Should the taxing authority
include in such real estate ta�ces, machinery, equipment, fixtures, inventory or other
personal property or assets of Tenant, then Tenant shall pay the entire real estate taaces for
such items.
P. To remain fully obligated under this Lease notwithstanding any
assignment or sublease or any indulgence granted by Landlord to Tenant or to any
assi�ee or sublessee, but nothing contained in this su6paragraph shatl be construed to
permit any assignment or sublease by Tenant.
oss9zwo�o�ns� oasa.� 0 1 �
Q. Intentionally Omitted.
R. To refrain from assigning, selling, mortgaging, pledging, or in any manner
transferring this Lease or any interest therein, by operation of law or otherwise; to re$ain
from subletting the Leased Premises or any portion or portions thereof; to refrain from
permitting occupancy by anyone with, through or under it.
S. Not to suffer any mechanic's lien to be filed against the Leased Premises or
the Shopping Center by reason of any work, labor, services or materials performed at or
furnished to the Leased Premises, to Tenant, or to anyone holding the Leased Premises
through or under the Tenant. If any such mechanids lien shall at any time be filed,
Tenant shall forthwith cause the same to be discharged of record by payment or order of a
court of competent jurisdiction or otherwise, but Tenant shall have the right to contest any
and alI such liens, provided security satisfactory to Landlord is deposited with Landlord
within fifteen (15) days after the filing of such lien. If Tenant shall fail to cause such a
lien to be dischazged within thirry (30) days after the filing thereof and before judgment
or sale thereunder, then, in addition to any other right or remedy of Landlord, Landlord
may, but shall not be obligated to, discharge the same by paying the amount claimed to be
due or by bonding or other proceeding deemed appropriate by Landlord in Landlord's
absolute discretion, and the amount so paid by Landlord and all costs and expenses
incurred by Landlord in procuring the dischazge ar bonding of such iien, shall be deemed
to be addiUOnat rent and together with interest thereon at the Lease Interest Rate from
date of payment shall be due and payable by Tenant to Landlord within ten (10) days of
the rendition of Landlord's statement therefor. "Lease Interest Rate" shall mean interest at
the lesser of (i) the rate per annum equal to two (2) percentage points above the rate of
interest then most recently publicly announced by JPMorgan Chase Bank, N.A. (or its
successor) as its "prune rate" ar"base rate" (the "Prime Rate"), as the case may be, and
(ii) the maximum legal rate. Nothing herein shall be construed as a consent on the part of
Landlord to subject Landlord's estate in the Leased Premises to any lien or liability under
the mechanids fien law of Minnesota.
T. To pay on demand Landlord's costs, chazges and expenses, including
reasonable attomeys' fees, expenses and administrative chazges (which shall also include,
without limitation, time chazges of attomeys and pazalegal administrators who may be
employees of Landlord or its managing agent), wluch may be imposed on, incurred by, or
asserted heazing and court costs incurred either d'uecdy or indirectly in any negoriafions
or transactions in which Landlord, without its fault, becomes involved or concerned by
reason of this Lease, in enfarcing any obligation of Tenant under this Lease, in curing any
default by Tenant, in connection with appearing, defending or otherwise participating in
any acUOn or proceeding arising from the filing, imposition, contesting, discharging or
satisfaction of any lien or claim for lien, in defending or otherwise participating in any
legal proceedings initiated by or on behalf of Tenant wherein Landlord is not adjudicated
to be in default under this Lease, or otherwise arising from or incurred because of
Tenant's failure to comply with any provisions of this Lease or in connection with any
investigation or review of any conditions or documents in the event Tenant requests
0539210070T910454.10 1 g
Landlord's approval or consent to any action of Tenant which may be desued by Tenant
or required of Tenant hereunder.
U. To refrain from recording this Lease.
ARTICLE IX. DAMAGE OR TAKING t1ND RESTORATION.
Section 9.1. Fire. Expiosion or Other Casualtv. In the event the Leased Premises aze
damaged by fire, explosion or any other casualty to an e�ctent which is less than twenty five
percent (25%) of the insurable value of the Leased Premises, the damage shall be promptly
repaired by Landlord at Landlord's expense upon receipt by Landlord of insurance proceeds for
such damage; provided that Landlord shall not be obligated to e�tpend for such repair an amount
in excess of the insurance proceeds recovered as a result of such damage and that in no event
shall Landlord be required to repair or replace Tenant's stock in trade, fixtures, fiuniture,
furnishings, floor coverings and equipment. In the event of any such damage and (a) Landlord is
not required to repair as hereinabove provided or (b) the Leased Premises shall be damaged to the
extent of twenty-five percent (25%) or more of the insurable value, or (c) the building which the
Leased Premises are a part is damaged to the extent of twenty-five percent (25%) or more of the
insurable value, or (d) the buildings (taken in the aggregate) in the Shopping Center shall be
damaged to the extent of twenty-five percent (25°/a) or more of the aggregate insurable value,
Landlord may elect either to repair or rebuIld Uie Leased Premises or the buIlding or buildings, or
to terminate this Lease upon giving no4ce of such election in writing to Tenant within ninety (90)
days after the occurrence of the event causing the damage. In the event Landlord temunates this
Lease as provided in the preceding sentence, TenanYs obligation to pay Fixed Minimum Rent or
Tenant's Pro-Rata Shaze of Operating Costs shall cease as of the date when the damage occurred.
If the casualty, repairing ar rebuilding shall render the Leased Premises untenantable, in whole or
in part, and the damage shall not have been due to the default or neglect of Tenant, a pro-
portionate abatement of the Fixed Minimum Rent and Tenant's Pro-Rata Share of Operating
Costs shall be allowed from the date when the damage occurred until the date Landlord
completes its work, said proration to be computed on the basis of the relarion which the gross
squaze foot azea of the space rendered untenantable beazs to the Floor Area. No abatement of
rent, proportionate or otherwise, pursvant to this Section 91 shall have any effect upon or be
viewed as a waiver by either party of any rental value insurance maintained by such party relative
to this Lease. If Landlord is required or elects to repair the Leased Premises as herein provided,
Tenant shall repair or replace its stock in trade, fixtures, fitrniture, furnishings, floor coverings
and equipment, and if Tenant has closed, Tenant sha11 promptly reopen for business.
Section 9.2. Eminent Domain. If the whole of the Leased Premises shall be taken by any
public authority under the power of etninent damain, the Lease Term shall cease as of the day
possession shall be taken by such public authority, and Tenant shall pay rent up to that date with
an appropriate refund by Landlord of such rent as may have been paid in advance for any period
subsequent to the date possession is taken.
ARTICLE X. DEFAULTS BY TENANT AND REMEDIES.
Section 10.1. Defaults bv Tenant. If (i) Tenant vacates or abandons the Leased Premises
or permits the same to remain vacant or unoccupied or fails to be continuously open for business
053921007071910454.10 19
for a period of five (5) days, or (ii) Rent or any part thereof shall be unpaid foi five (5) days after
written notice thereof to Tenant, or (iii) default shall be made in the prompt and full performance
of any covenant, condition or agreement of this Lease to be kept or performed by Tenant and
such default or breach of perfonnance shall confinue twenty (20) days (unless the default
involves a hazardous condition, wIuch shall be cured immediately) after written notice to Tenant,
specifying such default or breach of perForn�ance, or (iv) any proceedings shall be commenced to
declaze Tenant or any Guazantor bankrupt or insolvent or to obtain relief under any chapter or
provision of any bankruptcy or debtor relief law or act or to reduce or modify the debts or
obligations of Tenant or any Guarantor or to delay or extend the payment thereof, or if any
assignment of the property of Tenant or any Guarantor be made for the benefit of creditors, or if a
receiver or trustee be appointed for Tenant or a Guarantor or the property or business of Tenant
or a Guazantor, or (v) any Gvazantor shall die, then Landlord may treat the occurrence of any one
or more of the foregoing events as a breach of this Lease and thereupon at its option, without
further notice or demand of any kind to Tenant or any other person, may have, in addition to all
other legal or equitable remedies, the following described remedies:
A. Landlord may elect to terminate this Lease and the Lease Term created hereby
in which event Landlord forthwith may repossess the Leased Premises and Tenant shall
pay at once to Landlord as liquidated and final damages, a lump sum of money equal to
the discounted present rental value of the Rent fox the balance of the stated teim of this
Lease less the fair rental value of the Leased Premises for said period.
B. Landlord may elect to terminate TenanYs right of possession without
ternunating this Lease or releasing Tenant in whole or in part from TenanPs obligations
under this Lease, in which event Tenant agrees to surrender possession and vacate the
Leased Premises immediately and deliver possession thereof to Landlord, and Tenant
hereby grants to Landlord full and free license to enter into and upon the Leased
Premises, in whole or in part, with or without process of law and to repossess Landlord of
the Leased Premises. In any such case, Landlord shall, to the extent required by
applicable law, if any, attempt to relet the Leased Premises and Tenant shall pay to
Landlord each month, any deficiency between (a) the Fixed Minunum Rent and additions
thereto calculated based on the then current Operating Costs, insurance and teal estate t�
payments, for the residue of the Lease Term plus any other sums then due hereunder,
without prejudice to Landlard's rights to collect additional sums which may hereafter
become due including without limitation TenanYs Pro Rata Shaze of Operating Costs and
insurance expenses and real estate ta�ces for the balance of the Lease Term and (b) the
payments, if any, received by Landlord from any reletting of the Leased Premises
Tenant hereby expzessty waives the service of any notice of any election made by
Landlord under this Secrion 10.1, demand for payment of Rent or for possession, except
the particulaz demands and notices as may in this Lease be specified.
Upon and after entry into possession without terminating the Lease, Landlord
shall, to the extent required by applicable law, if any, attempt to relet all or any part of the
Leased Premises for the account of Tenant for such rent and upon such terms and to such
person, firm or corporation and for such period or periods as Landlord in Landlord's sole
discretion shall determine. If the consideration collected by Landlord upon any such
0539210070T910454.10 20
reletting for Tenant's account is not sufficient to pay the Rent reserved in this Lease plus
the cost of repaixs, alterations, additions, redecorating and Landlord's other expenses,
Tenant ag�ees to pay to Landlord the deficiency upon demand.
The Landlord may collect and receive any Rent due from Tenant and the payment
hereof shall not constitute a waiver of any existing default by Tenant or affect any notice
or demand given, suit instituted or judgment obtained by Landlord, or be held to waive,
affect, change, modify or aker the rights or remedies which Landlord has in equity or at
law or by virtue of this Lease. Payment by Tenant or receipt by Landlord of a lesser
amount than any installment or payment due shall be deemed on account of, but not
satisfaction of, the amount due, and no endorsement or statement on any check or any
transmittal docuxnent accompanying any check or payment of any amount due shall be
deemed an accord and satisfaction. Landlard may accept such check or payment without
prejudice to Landlord's right to recover the balance of any amount due or pursue any other
remedies available to Landlord.
Section 10.2. Holdover by Tenant. Fn the event Tenant remains in possession of the
Leased Premises after the expiration of the tenancy created hereunder, and without the execution
of a new lease, Tenant, at the oprion of Landlord, shall be deemed to be occupying the Leased
Premises as a tenant from month-to-month, at twice the monthly Rent (i.e. Fixed Minimum Rent
and chazges for real estate ta�ces, Operating Costs and insurance charges), subject to all the other
conditions, provisions and obligations of this Lease insofaz as the same aze applicable to a
month-to-month tenancy. Additionally, and regazdless of whether Landlord exercises the option
set forth in the immediately preceding sentence, Tenant shall be liable for any consequential
damages, including attomeys' fees, incurred by Landlord as a result of Tenant's failure to
surrender possession o£ the Leased Premises upon expixation of the Lease Term.
Section 103. Landtord's Ri2ht to Cure. Landlord may, but shall not be obligated to,
cure, at any time, without notice, any failure by Tenant to perform any obligation under this
Lease; and whenever Landlord so elects, all costs and expenses incurred by Landlord, including,
without limitation reasonable attomeys' fees together with interest on the amount of costs and ex-
penses so incurred at the Lease Intecest Rate shall be paid by Tenant to Landlord on demand.
Section 10.4. Effect of Waivers of Default. No consent or waiver, express or impiied, by
Landlord to or of any breach of any covenant, wndition or duty of Tenant shall be construed as a
consent or waiver to or of any other breach of ihe same or any other wvenant, condition or duty.
Section 10.5. Intentionally Omitted
ARTICLE XI. MISCELLANEOUS PROVISIONS.
Section 11.1. Calculation of Pro-Rata Shazes.
A. "Tenant's Pro-Rata Shaze" of Operating Costs shall be equal to the product of
(a) the amount of said Operating Costs, and (b) a fraction, the numerator of which is the
Floor Area of the Leased Premises and the denominator of which is the total floor area in
the Shopping Center contributing to such Operating Costs, Notwithstanding the
05392\OOJOT910454.10 21
foregoing to the contrary, to the extent that Landlord performs any maintenance, repair or
replacement that serves Tenant and fewer than all of the tenants at the Shopping Center,
Tenant's Pro-Rata Share with respect to said maintenance, repair or replacement shall be
shall be based on a fraction, the numerator of which is the Floor Area of the Leased
Premises and the denominator of which is the total floor azea of the premises served by
such maintenance, repair or replacement.
B. "Tenant's Pro-Rata Shaze" of real estate taxes shall be equal to the product of
(a) the amount of said real estate tvices, and (b) a fraction, the numerator of which is the
Floor Area of the Leased Premises and the denominator of which is the total floor area of
the buildings comprising the ta�c pazcel of which the Leased Premises are a part.
Section 11.2. Mutual Waiver of Subrogation. Whenever (a) any loss, cost, damage or
expense resulting from fire, explosion or any other casualty or occurrence is incurred by either of
the parties to this Lease or any party claiming by through or under Landlord or Tenant, as the
case may be, their respective properry, their respective businesses, the Shoppmg Center or the
Leased Premises or any addition or improvements thereto, or any contents therein, and (b) such
pariy is then required under the terms of this Lease to maintain insurance with respect to such
loss, cost, damage or expense, then the party required to be so insured herebq releases the other
party from any liabflity it may have on account of such loss, cost, damage, or expense to the
extent of any amount that is, or, if such required insurance was not in effect, that would have
been recoverable, by reason of such insurance and waives any right of subrogation which might
othenvise exist in or accrue to any person on account thereof, provided that such release of
liability and waiver of the right of subrogation shall not be operative in any case where the effect
thereof is to invalidate such insurance coverage or increase the cost thereof. Each par[y shall also
be responsible for the payment of any deductible amounts required to be paid under the insurance
referred to in this Section 11.2.
Section 113. Adiacent Excavation-Shorine. If an excavation shall be made upon land
adjacent to the Leased Premises, or shall be authorized to be made, Tenant shall permit Landlord
to enter upon the Leased Premises to perform proper shoring.
Section 11.4. Tenant's Authority. Tenant hereby covenants, warrants and represents that
it has authority to enter into this Lease.
Section 11.5. Notices. Any noUce or demand from Landlord to Tenant or from Tenant to
Landlord shall be in wriring and mailed, postage prepaid, by certified mail or by commercial
overnight delivery service for next business day delivery, freight prepaid, or delivered by
personal delivery, addressed, if to Tenant, at the Notice F.ddress of Tenant or such other address
as Tenant shall have last designated by notice in writing to Landlord, and, if Yo i,andlord, to
Tri-Land Developments, Inc., One Westbrook Corporate Center, Suite 520, Westchester, Illinois
60154-5764, or such other address as Landlord shall have last designated by notice in writing to
Tenant. The customary receipt signed or refused by the party to whom notice is directed shall be
conclusive evidence of such service. NoUce shall be deemed given when delivered, if given by
personal delivery, otherwise on the second business day a$er being mailed by certified mail or on
ihe next business day after being posted with the commercial overnight delivery service, as
applicable.
osa9z�oo�aT9ioasa.�o ZZ
Section 11.6. Brokeraee. Tenant wazrants that it has had no dealings with any broker or
agent in connection with this Lease other than Landlord's broker, and covenants to pay, hold
hannless and indemnify Landlord from and against any and all cost, expense or liability for any
compensation, commissions and chazges claimed by any other broker or other agent with respect
to this Lease or the negotiation thereof.
Section 11.7. Votine Control of Tenant. In the event that Tenant is a corporation or
entity other than an individual, any transfer of a majority or controlling interest in Tenant
(whether by stock transfer, merger, operation of law ar otherwise) shall be considered an
assignment of this Lease subject to the provisions of Section 8.1.R. hereof.
Section 11.8. Fstonnel Certificates. Tenant shall, within ten (10) days following request
in writing from Landlord or any existing or prospective mortgagee or purchaser of Landlord,
execute, aclrnowledge and deliver to Landlord a statement in writing certifying: (i) that this Lease
is ttnmodi&ed and in full force and effect (or if there have been modifications, that the same is in
full force and effect as modified and stating the modifications); (ii) the date of commencement of
the Lease Term; (iii) that Rent is paid currently without any offset or deduction thereto; (iv) the
dates to which the Fixed Minimum Rent and other chazges have been paid, and the amount of
Fixed Minimum Rent and other chazges, if any, paid in advance; (v) the amount of any security
deposit, (vi) that Tenant has accepted the Leased Premises and all of Landlord's Work has been
completed, (vii) whether or not there is then e�sting any claim of Landlord's default hereunder
and, if so, specifying the nature thereof; and (viii) any other matters reasonably requested by
Landlord, or any existing or prospective mortgagee or purchaser of Landlord. Any such
statement may be relied upon by Landlord or any existing or prospective mortgagee or pwchasec
of Landlord. If Tenant shall fail to execute and retum such statement within the time required
herein, Tenant shall be deemed to have agreed with the matters set forth therein, and Landlord
acting in good faith shall be authorized as TenanYs attorney-in-fact to execute such statement on
behalf of Tenant (which shall not be in limitation of Landlord's other remedies therefor).
Section 11.9. A�plicable Law and Construction. The laws of the State of Minnesota
shall govern the validity, performance and enforcement of this Lease. The invalidity or
unenforceability of any provision of this Lease shaIi not affect or impair any other provision.
The headings of the several articles contained herein aze for convenience only and do not define,
limit or constnte the cotttents of such articles.
Sec6on l 1.10. $inding Effect of Lease. The covenants, agreements and obligations
herein contained except as herein otherwise specitically provided, shall extend to, bind and inure
to the benefit of the parties hereto and their respective personal representatives, heirs, successors
and assigns. Landlord, at any time and from time to time, may make an assignment of its interest
in this Lease, and, in the event of such assignment and the assumption by the assignee of the
covenants and agreement to be performed by Landlord herein, Landlord and its successors and
assigns (other ihan the assignee of this Lease) shall be released from any and all liability
hereunder. All negotiations, considerations, representations and vnderstandings between
Landlord and Tenant are inwrporated herein and this Lease represents the entire agreement
between the parties.
053921007071910454.10 23
Section 11.11. Landlord and Landlord's Agents. LVherever in this Lease Landlord is
granted any right, including but not limYted to the right to enforce any provision of this Lease or
to exercise any remedies of Landlord, either specifically provided for herein or at law or equity,
such right shall also be exercisable by Landlord's manager, its members or any agent of Landlord
or Landlord's manager or members, in their own name, along or in conjunction with Landlord or
any of the foregoing parties.
Section 11.12. Intentionallv Omitted
Section 11.13. Obiection to Statements. TenanYs failure to object to any statement,
invoice or billing rendered by Landlord within a period of thirty (30) days after receipt thereof
shall constitute Tenant's acquiescence with respect thereto and shall render such statement,
invoice or billing an account stated between Landlord and Tenant.
Section 1114. Executive Order 13224. Tenant represents and warrants to Landlord that
neither Tenant, nor any of the entities or individuals orvning or controlling Tenant, have been
designated as a blocked person pursuant to Executive Order 13224. Tenant shall update the
foregoing representation by written notice to Landlord if the foregoing representation should ever
become false during the Term. Any failure to update the foregoing representation shall constitute
a default by Tenant under this Lease and Landlord may immediately (rvithout delivering any prior
notice to Tenant or affording Tenant any opportunity to cure) exercise any and all rights and
remedies pernutted in this Lease. Furthermore, if Tenant or any of the entities or individuals
owning or controlling Tenant either now or in the future is designated as a blocked person
pursuant to Executive Order 13224, such circumstance shall constitute a default by Tenant under
this Lease and Landlord may immediately (without delivering any prior notice to Tenant or
affording Tenant any opportunity to cure) exercise any and all rights and remedies permitted in
this Lease. Tenant shall, within ten (10) days after receipt of written request from Landlord,
certify to Landlord in writing the identity of all enrities and individuals owning or controlling
Tenant.
Section 11.15. Jurv Waiver. THE PARTIES HERETO SHAI,L, AND THEY HEREBY
DO, WAIVE TRIAL BY NRY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER ON ANY
MATTERS VJIIATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH
THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, TENANT'S USE OR
OCCUPANCY OF THE LEASED PREMISES AND/OR ANY CLAIM FOR INJiJRY OR
DAMAGE.
Section 11.16. Exculpation. It is specifically understood and agreed that there shall be
no personal liability of the Landlord, or any member, manager or beneficial owner thereof, in
respect of any of the covenants, conditions and provisions of the Lease; in the event of a breach
or a default by Landlord of any of its obligations under this Lease, as such Lease may be
amended from time to time, Tenant shall look solely to the equity of Landlord in the Shopping
Center for satisfaction of TenanYs remedies.
05392\0070T9104i4.10 24
Section 11.17. Survival. Unless otherwise expressly stated, all of Tenant's obligations
under this Lease shall survive the expiration or earlier termination of the Lease Tenn, as the same
may be extended from rime to rime.
Section 11.18. EntiUements. If at any time any part of the Shopping Center is sub}ect to
any taac allocation subsidy or any other govemmental subsidy or entitlement ("Entiflement"),
Tenant will provide to Landlord and at such intervals as may be required, all information relating
to sales taxes and other taaces attributable to TenanYs activifies at the Shopping Center required to
he provided by or on behalf of Landlord or the 5hopping Center in connection with such
Entitlement. Tenant shall deliver such information in such form and substance as Landlard, the
City of Fridley or other governmental authorities shall request. Tenant shall, upon Landlord's
request, provide such information, or an additional copy thereof, directly to such governmental
authorities as Landlard may request in connection with Landlord's compliance with the terms of
any such Entitlement.
ARTICLE XIL PARKING SIGNS.
Section 12.1. TenanYs Customer Pazkin Siens. Landlord hereby grants Tenant the right
to install, at Tenant's sole cost and expense, professionally-made signs reading °Fridley Liquors
Customer Pazking Only" ("Tenant's Customer Parking Signs") in front of the pazking spaces
designated on Exhibit G(the "Designated Spaces"). Tenant shall be obligated, at TenanPs sole
cost and expense, to clean, maintain in good condition and repair, and replace or remove as
necessary, Tenant's Customer Pazking Si�s. Landlord and Tenant hereby aclmowledge that the
Designated Spaces are in the common azeas, are and shall remain under Landlord's exclusive
control, and are not reserved or leased by Tenant. Landlord shali have no responsibility or
obligation to Tenant to poiice or enforce pazking in the Designated Spaces, nor shali Tenant be
permitted to take any action to do so.
ARTICLE XIII. EXCLUSIVITY OF USE.
Section 13.1. Tenant's Exclusive Use. As a material inducement to Tenant to enter into
ttus Lease, without which inducement Tenant would not have entered into this Lease, Landlord
agrees that during the Lease Term, provided that Tenant is continuously operaGng for the
Pemutted Uses in the Leased Premises and has not exercised its option to Go Dazk, Landlord
shall not lease any space in the Shopping Center (or approve any assignment of a lease or
sublease) to another tenant or occupant whose use includes the sale of liquor, beer, wine or other
spirits or alcoholic beverages for off=premises consumption ("Tenant's Exclusive Use").
Section 13.2. Exceptions to Tenant's Exclusive Use. Notwithstanding anythiug set forth
in this Ar[icie XIII to the contrary, Landlord and Tenant acknowledge and agree that:
A. Cub shall have the right to sell, for off-premises consumption, beer that
contains 32% (or less) alcohol by weight.
B. The sale of beer or wine for off-premises consumption by tenants or occupants
operating restaurants at the Shopping Center shall not be a violation of Tenant's Exclusive
ossn�oo�o�ioasa.�o 25
Use, provided such use is ancillary (comprising 5% or less of the gross revenues of each
such tenant or occupant) to any such tenant's or occupant's primary use.
C. The sale for on-premises consumption of liquor, beer, wine or other spirits or
alcoholic beverages for on-premises consumprion by other tenants or occupants of the
Shopping Center shaIl not be a violation of Tenant's Exclusive Use.
Section 133. Notice to Other Tenants. During the term of this Lease, Landlord shall
notify all current and future tenants of TenanYs Exclusive Use. Provided that Tenant is
continuously operating for the Permitted Uses in the Leased Premises and has not exercised its
option to Go Dazk, Landlord agrees to use commercially reasonable efforts to enforce Tenant's
Exclusive Use against other tenants and occupants of the Shopping Center. In the event a tenant
in the Shopping Center violates TenanYs Exclusive Use, Landlord shall, within five (5) business
days after Landlord receives written notice from Tenant of a violation of Tenant's Exclusive Use,
demand in writing that the offending tenant immediately cease engaging in the TenanYs
Exclusive Use. Landlord shall diligently pursue the prevention of the Exclvsive Use vioIation by
an ofFending tenant, which diligent pwsuit shall include, but not be limited to, filing for
injunctive relief against the offending tenant if the violation of Tenant's Exclusive Use continues
for a period of thirry (30) days after Landlord delivers written notice to the offending tenant
ARTICLE XIV. LOADING AREA.
Section 14.1. Loadin Ar�ea. The loading azea for the Leased Premises shall be the area
depicted on Eachibit H, attached hereto and incorporated herein by reference.
[SIGNATURE PAGE FOLLOWS]
ossvawo�o�n9�oasa.io 26
IN WITNESS WHEREOF, Landlord and Tenant have executed this I,ease the day and
yeaz first above written.
TENANT:
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CITY OF FRLDLEY, a Minnesota municipal ZCOF TL FRIDLEY LLC, a Delaware limited
corporation
By: _
Name:
Its:
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liability company,
By: ZCOF TRI-LAND, L.L.C., a Delawaze
limited liability company, managing
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Exhibit'A'
Legal Description of Shoppine Center
Real Propertv in the Citv of Fridlev, Countv of Anoka, State of Minnesota, described as follows:
Parcel 1:
Lot 2, Block l, Holiday North 2nd Addiuon, according to the piat on file in the office of the
Registrar of Titles, Anoka County, Minnesota.
Parcel 2:
Access easement for the benefit of Pazcel 1 as created by and described in Easement and
Restriction Agreement dated October 18, 2006, filed October 23, 20�6, as Document No.
489456.005.
Pazce13:
Ingress and egress easement for the benefit of Pazcel 1 as created by and described in Easement
and Maintenance Agreement dated April 29, 1983, filed May 12, 1983, as Document No.
126502.
oss9z�oo�o��oasa.�o A_2
EXHIBIT C
DESCRIPTION OF LANDLORD'S WORK
The following work shall be done by the Landlord prior to the Delivery Date, escept as otherwise
specified, in accordance with the schedule set forth below.
1. Construct a temporary enclosure wall sepazating the Existing Premises from the Leased
Premises and protect the east customer entry area, as shown on E�ibit G2 attached hereto.
2. Construct new demising partition as shown on E�ibit C-3 attached hereto.
3. Construct new north storefront including masonry and glass as shown on E�ibit C-4
attached hereto and substantially as shown on the elevation attached hereto as Exhibit G4-
1.
4. Build out Leased Premises to vanilla box finish, as depicted on the plans attached hereto as
Exhibit GS and made a part hereof ("Landlord's Plans") and/or as provided herein:
a. Gypsum wallboard partitions in sales area of
painted.
b. 2'x4' acoustical tile ceiling with lay-in fluore
square feet of sales floor area) in the sales are•
above the finished floor leveL StocK ar
fixtures mounted to structure.
Premises, taped, sanded and
�q�nt light fixtures (1 fia�ture per 80
�and office area at approximately 10'
will have exposed fluorescent tube
c. 1/8' nominal vinyl floor tile and baseboar s in sales area.
HVAC — 350 squaze feet per ton.
7 watts per square foot to a circuit bre er panel — electrical outlets shall be installed
p Landlord's Plans.
Drai lines for refrigerated cases in ocations per Landlord's Plans.
Male female restrooms with ndicap hardware.
Single cus er enhy vestibule ith automatic entry doors going east and north.
Overhead deli door in loc on shown on Exhibits GS and H.
Roof hatch for ac s to HV and other roof-mounted eauivment in location to be
determined by Landlo
Curtain wall from cei
shown on E�ibit G5.
Office in a size and
consisting of four (4) v,
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top of cooler at location of cooler as approximately
:ion be mutually agreed upon by the parties and
one (1) ' dow into the sales area and one (1) door.
Itis theintent ofthe Landfo d and Tenantthat,to extentthe description contained herein
conflicts with the depictio of the Leased Premises se rth on Exhibit G5, the descriptions
provided herein In Exh' it C# 4(a) through (1) shal ontrol. Landlord shall perform
Landlord's Work as des ibed in this Exhibit C at its expense d none of the improvements
contained herein shall subject to or deducted from Tenant's Re ation Allowance as set
C-1
05392\00707\910454.10
forth in Section 33 of the Lease.
The following work shafl be done by the Landlord following the Delivery Date, except as othenvise
specified, in accordance with the schedule set forth below.
5. Renovate east exterior wall of the Leased Premises as shown on Exhibit G4-1 attached
hereto.
6. RenovaYe east parking azea as generally shown on Exhibit C-9 attached hereto.
7. Decommission and demolish portion of Existing Premises not included in the Leased
Premises as shown on Eshibit C-10 attached hereto.
8. Renovate north parking lot as shown on E.Yhibit C-11 attached hereto.
Landlord shall have the right to run drainage lines, utiliry lines, pipes, duct work or any other
component parts of all mechanical and electrical systems, where necessary or desirable, as
determined by the Landlord, through attic spaces, column spaces or other parts of the Leased
Premises, and to repair, alter, replace or remove the same, and to require the Tenant to install and
maintain proper access panels thereto.
05392\00707\910453.10 C_2
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E�EHIBIT C-5
,
EXHIBIT D
DESCRIPTION OF TENANTS WORK
All work required to complete and place the Leased Premises in finished condition for
opening for business, except work to be done by the Landlord described in E�ibit C, is to be
done by the Tenant, at the TenanYs expense, and in accordance with this Eachibit, Exhibit E, and
the Lease to which this E�chibit is attached.
I. TENANT'S WORK includes, but is not limited to, the following:
1.1 Relocate a portion of Tenant's lazge beer cooler from the Exisring Fcemises to
temporary vacant space (where Landlord shall store same at Landlord's cost) as shown on E�ibit
D-1 attached heretn. Landiord shall give Tenant not less than thirty (30) days prior notice of the
date on which Tenant shall relocate TenanPs cooler and products, whereupon Tenant shall
paztition Tenant's cooler to prepaze for the partial relocation.
1.2 Purchasing and installing new equipment and fixtures or reinstalling the shelving
in the Existing Premises and other interior fixtures and equipment, including all refrigerated
coolers and cases and remote compressors.
13 Relocating or disposing of all trade fixhues and fumishings in the Existing
Premises.
1.4 Relocating all of Tenant's merchandise from the Existing Premises to the Leased
Premises.
1.5 Install storefront display platforms or backgrounds.
1.6 Purchasing and installing new signage consistent with Tenant's sign plans as
illustrated in E�chibit G4-1 and as approved by Landlord.
1.7 Purchasing and installing any new or relocated interior decor package.
1.8 Obtaining all pernuts and inspections associated with Tenant's Work.
II. CHANGES & ALTERATIONS
Landlord reserves the right to require changes in Tenant's Work when necessary by
reason of code requirements, or building facility necessity, or d'uectives of governmental
authorities having jurisdiction over the Leased Premises, or directives of Landlord's insurance
underwriters.
III. GENERAL PROVISIONS
All work done by Tenant shall be governed in all respect by, and be subject to, the
following:
D-1
05392\00707V10454.10
3.1 Plans. All work other than that to be performed by Landlord, if any, is to be done
by Tenant, by reputable contractors approved by Landlord, at Tenant's expense and in strict
accordance with the outline descriprion set forth in this Exhibit D, the Sign Criteria set forth in
Exhibit E and the fixture layout to be provided by Tenant which shall be subject to Landlord's
approval. Tenant agrees to submit to Landlord, within fifreen (15) days following receipt of
noGce from Landlord that TenanPs Plans aze due ("Plan Notice"), plans covering Tenant's Work
("Tenant's Plans"). Within a reasonable time following Landlord's receipt of TenanYs Plans,
Landlord shail either appmve TenanYs Plans as submitted or conditionally approve TenanYs
Plans by noting required revisions thereon ("Landlord's Notes"). Landlord's Notes shall be
incorporated by reference into and be deemed to modify Tenant's Plans as though originalIy set
forth therein. Tenant's Plans, as revised by Landlord's Notes, shall collecrively constitute the
"Approved Tenant Plans." The technical review of TenanPs Plans for the purpose of securing
Landlord's approval shall be performed by Landlord's pmject azchitect at Landlord's cost. In the
event that Tenant fails to make timely submission of TenanYs Plans or Tenant's Additional Plans
as provided in this Lease, then Landlord shall have the right, but not the obligation, to proceed
with Landiord's Work pursuant to plans prepared by or otherwise approved by Landlord.
3.2 Prosecution of Tenant Work.
A. In addition to the requirements set forth in 31 above, not less than five (5)
days prior to ihe date on which Tenant is obligated to commence performance of TenanYs
Work, and before de]ivery of any materials into the Leased Premises or the Shopping
Center, Tenant shall fumish to Landlord for approval evidence satisfactory to Landlord
that the insurance coverage described in Section 8.1J of the Lease is in effect; the names
and addresses of all contractors; copies of atl contracts, necessary permits and licenses;
certificates of insurance and instruments o£ indemnification; and waivers of lien against
any and all wsts, claims, expenses, damages and liahilities which may arise in connection
with such work, all in such form and amount as is satisfactory to Landlord.
B. Tenant shall, following the Delivery Date, commence Tenant's Work and
thereafter diligently prosecute such work to completion not later than the Commencement
Date. Tenant shall not commence any work upon or within the Leased Premises or be
entided to possession thereof until (a) Landlord has approved Tenant's Plans and (b)
Landlord has received and approved all items described in Section 3.2.A above. Tenant's
failwe to provide all items described in Section 32.A within the time required shall not
excuse TenanPs delay in commencing TenanYs Work. Upon completion of Tenant's
Work, Tenant shall furnish Landlord with contractor's affidavits accompanied by full and
final waivers of lien, receipted bills covering all labor and materials expended aztd used in
connection with such work and copies of all permits which aze required to evidence the
proper completion of such work, including a certificate of occupancy evidencing that
Tenant has satisfied all local governmental requirements necessary to conduct TenanPs
business in the Leased Premises. All of Tenant's Work shall be performed in strict
compliance with the Approved Tenant Plans and comply with all insurance requirements
and with all laws, ordinances, rules and regulations of all govemmental authorities and all
occupancy permits applicable to the Leased Premises.
assgz�oo�ot�vioasa.io D_Z
33 Landlord agrees to notify Tenant within a reasonable time in advance of the day
when Tenant must commence Tenant's Work and Tenant agrees that Landlord may require
Tenant to commence work, subject to such notice to commence Tenant's Work before Landlord's
Work has been fully completed, provided that the Leased Premises and the building of which the
Leased Premises aze a part aze completed to the extent that it is practicable for Tenant to
commence Tenant's Work. Tenant's Work shall be coordinated with the work being done by the
Landlord and/or other tenants of Landlord to such a degree that such work will not interfere with
or delay the completion of work by Landlord and/or other tenants of Landlord.
3.4 TenanPs Work shall be performed in a first-class workmanlike manner using good
grades of new materials and without interfering with other tenants' operations and shall be in
good and usable condition at the date of comple6on thereof. The materials to be used by Tenant
for floor and wall coverings, countertops, lighting fixtures and other fixtures and decor items
installed by Tenant shall be new and of good quality. Tenant shall require any party performing
any such work to guarantee the same to be free from any and all defects in workmanship and
materials for one (1) yeaz from the date of completion thereo£ Tenant shall also require any such
party to be responsible for the replacement or repair without additional charge of any and all
work done or fiunished by or through such pariy which shall become defective within one (1)
year after substantial completion of the work. The correction of such work shall include, without
charge, alI expenses and damages in connection with such removal, teplacement, or repair of any
part of the work which may be damaged or disturbed thereby. All watranties or guarantees as to
materials or workmanship on or with respect to Tenant's Work shall be contained in the contract
or subcontract which shall be so written that such guazantees or warranties shall inure to the
benefit of both Landlord and Tenant, as their respective interests appeaz, and can be diiectly
enforced by either. Tenant covenants and agrees to give Landlord any assignment or other
assurances necessary to effect the same.
3.5 Landlord shall have the right (but shall not be obligated) to perform by its own
contractor or subcontractor, on behalf of and for the account of Tenant, any of TenanYs Work
which Landlord deternunes should be so performed. Generally, such work shall be work which
affects any structural or roofing components, or work of other tenants of, or the general utility
systems for, the building in which the Leased Premises aze located. If Landlord so determines, it
shall so notify Tenant prior to the commencement of such work. Tenant shall promptly, on
demand, reimburse Landlord for all costs of planning and performing such work when and as
incurred by Landlord, and for all pernuts in connection therewifh.
3.6 Compliance with Laws: All TenanYs Work shall conform to applicable statutes,
ordinances, regulations, codes and the requirements of Landlord's fire underwriter. Tenant shall
obtain and convey to Landlord copies of all permits, certifications and approvals indicating
compliance.
3.7 Approvals: No approvals by Landlord shall be deemed valid unless the same shall
be in writing signed by the Landlord.
as3rz�omoTVioasa.to D-3
�:Ii�01�
SIGN CRITERIA
I. GENERAL
1.1 This exhibit shall govern the design, construction and vnstallation of all signs to be
installed by the Tenant at any time in conjunction with the provisions of the Tenant's Lease. The
Landiord shall make a11 fmai and conrtolling determinations conceming any questions of
interpretation of this sign policy.
1.2 It is intended that the signing of stores in Fridley Market shall be designed and
executed in a manner to result in an attractive and coordinated total effect. Letterirtg shall be well
proportioned, and its design, spacing and legibility shall be a major criterion for approval.
1.3 Tenant shall be iequired to identify its premises by erecting signs which shall be
attached respectively direcUy to the building fascia as described hereinafter. Where the Leased
Premises is a comer store, Tenant may install a fascia sign on each fascia when the pazallel lease
frontage exceeds fifteen (15) feet, and the criteria shall govem each frontage respectively. In no
event shall the preceding sentence be construed to permit the installation of fascia signage on sides
of a building lacking fascia. Landlord hereby approves TenanYs sign rendering attached hereto as
Exhibit C-4-1. The parties agree that Tenant's building signs shall be prepared and installed in the
size and locations shown on E�ibit C-4-1.
1.4 Landlord shall supply and instalI a uniform identification sign on the Tenant's service
door at the Tenant's expense. Tenant shall not post any additional signs in the service area.
1 S The content of Tenant identification signs shall be limited to the store name and shall
not include crests, shields, logos or names of items for sale.
1.6 All lines of lettering shall run horizontally.
1.7 All lettering shatl be upper case or lower case block type letters or combinations
thereof. Script shall not be allowed, except as the Landlord shall othenvise deternune.
1.8 Moving, rotaUng, flashing, noise-making or odot-ptoducing signs shall not be
allowed.
1.9 The names, stamps or decals of manufacturers or installers shall not be visible except
for technical data (if any) required by goveming authorities.
110 Tenant shall not be permitted to open for business without approved required signs in
place. Failure to open for this reason shall not excuse Tenant from the performance of its
obligations under the Lease.
05392\0070T910454.10
E-1
II. CRITERIA FOR BUILDING FASCIA SIGNS
2.1 Letters shall be individual and individually mounted to the fascia material with
minunum practical sized, noncorrosive, concealed fastenings, weathersealed at point of fascia
penetration.
2.2 Length of signs shall be limited to 70% of the leased frontage. The assigned position
for each Tenant sign is as illustrated on Exhibit C-4-1, or as otherwise approved by Landlord.
23 The principal base of all sign letters shall be aligned on a base line located as
determined by the Landlord for each Tenant sign.
2.4 T'he m�imuzn height of upper case letters, lower case letters and ascenders and
descenders of lower case letters shall be limited as shown in the following chart.
LEASE FRONTAGE UPPER CASE
Less than 20' 24"
20' to less than 30' 30"
30' to tess than 50' 36"
50` to less than 80' 42"
80' and over 48"
LOWER CASE
16"
20"
24"
28"
32"
ASCENDER/
8��
10"
12"
14"
16"
2.5 Letters shall be of minimum practical depth. Maximum depth shall be 5".
2.6 Letters shall be formed of steel or aluxninum back and sides with white porcelain or
baked enamel or anodized aluminum exterior finish. Sides and trim caps (if any) shall be white in
color. Open end of the channel shall be glazed with acrylic plastic facing of color selected by the
Tenant.
2.7 Sign letters shall be self-illuminated. Internal illumination shall be provided by
neon-rype tubing with wiring and transformers concealed behind the fascia construction. Electrical
penetrations of the fascia shall be of minimum practical size and number, non-corrosive, concealed
and weathersealed at point of fascia penetration.
2.8 Tenant shall install any blocking behind the canopy fascia that may be necessary to
properly support the individual letters. Minimum blocking shall be insialled in a manner that will
not damage the canopy structure of the fascia.
III. CRITERIA FOR CANOPY SOFFIT SIGNS
31 Landlord may establish a design for a standard canopy soffit or "blade" sign with
space for Tenant identification of standard size and color. Letter style shall match Tenant's fascia
sign.
E-2
05392\007071910454.10
c
3.2 All canopy soffit or "blade" signs shall be fabricated and installed by a sign company
selected by Landlord. Tenant shall order said signs(s) from and make payment directly to the
Landlord.
33 Signs shall be mounted and located as determined by the Landlord.
N. CRITERIA FOR STOREFRONT SIGNS
4.1 Tenant may install not more than a total of two identification signs on the doors,
windows or sidewall returns of the storefront. Signs shall be non-illuminated, shall not exceed 2" in
height and letters shall be either painted, or cut from self-adhering vinyl fabric of 1/4" thick wood,
metal or plastic.
42 Tenant shall not apply any other signs to the interior or exterior face of the storefront
glass or other material.
V. APPROVAL OF LOCAL GOVERNMENT AUTHORiTIES
5.1 Tenant shall be responsible for complying with the regulations and ordinances
goveming the installation and maintenance of signs with ihe Ciry of Fridley, Minnesota.
Application for necessary permits and the payment of fees shall be directed to the appropriate City
Department.
VI. PROCEDURE AND SCHEDULE FOR COMPLETION OF SIGN DRAWINGS
6.1 Prior to awarding a contract for fabrication and installation, Tenant shall submit
drawings and specification, in quadruplicate, including samples of materials and colors, for all its
proposed building fascia, canopy soffit and storefront sign work. The drawings shall clearly show
location of sign and indicate graphics, color, materials, construction and attachznent details.
Landlord shall retum one (1) set to Tenant with its required modifications and/or approval.
E-3
053921OD7071910454.10
EXHIBIT F
RULES AND REGULATIONS
Tenant covenants and agrees to abide with the following Rules and Regulations for the
Shopping Center:
1. No sign, advertisement, display, notice, or other lettering shall be exhibited,
inscribed, painted or affixed on any part of the outside of the Leased Premises or inside, if visible
from the outside, or outside the building of which they form a part, and no symbol, design, mazk,
or insignia adopted by Landlord for the Shopping Center or the tenants therein shall he used in
connection with the conduct of Tenant's business in the Leased Premises or elsewhere without, in
each instance, the prior written consent of Landlord. All such signs, displays, advertisements,
and notices of Tenant so approved by Landlord shall be maintained by Tenant in good and
attractive condition at Tenant's expense and risk. The distribution of handbills, leaflets or other
printed materials including but not limited to the use of handbills for advertising, shall be
prohibited at the Shopping Center.
Z. No awning or other projections shall be attached to the outside watls of the Lease@
Premises or the building of which they form a pazt without, in each instance, the prior written
consent of Landlord.
3. All loading and unloading of goods shail be done only at such times, in the areas
and through the entrances designated for such purpose by Landlord.
4. All gazbage and refuse shall be kept in the kind of container specified by
Landlord, and prepazed for collection in the manner and at the times and pIaces specified by
Landlord if Landlord sha11 provide or designate a service for picking up refuse and gazbage,
Tenant shall use same at Tenant's cost, provided such cost shall be competitive to any similaz
service available to Tenant. Tenant will not install or cause to be installed any automatic garbage
disposal equipment without the prior written consent of Landlord.
5. No radio or television or other similaz device shall be installed, and no aerial shall
be erected on the roof or exterior walls of the Leased Premises, or on the grounds without, in
each instance, the prior written consent of Landlord. Any aerial so installed without such written
consent shall be subject to removal without notice at Tenant's expense at any time.
6. No loud speakers, television sets, phonographs, radios or other devices shall be
used in a manner so as to be heard or seen outside of the Leased Premises without the prior
written consent of Landtord.
7. No auction, fire, bankniptcy or selling-out sales shall be conducted on or about the
Leased Premises without the prior written consent of Landlord, which may be withheld in
Landlord's sole and absolute discretion.
8. Tanant shall keep Tenant's display windows illuminated and the signs and exterior
lights lighted each and every day of the term hereof during the hours designated by Landlord.
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9. Tenant shall keep the Leased Premises at a temperature sufficiently high to
prevent freezing of water in pipes and fixtures.
10. The outside azeas immediately adjouring the Leased Premises shall be kept clean
by the Tenant and Tenant shall not place or pemut any obstructions or merchandise in such areas
or in the service corridors.
11. Tenant and Tenant's employees shall pazk their cazs only in those portions of the
pazking azea designated for employee pazking by Landlord, and Tenant shall pay Landlord a
chazge of $10 per day for each caz of Tenant and Tenant's employees which park on Landlord's
Tract outside the designated area. Tenant shall fiirnish Landlord the automobile license numbers
assigned to TenanYs cars and the cars of Tenant's employees within five days after taking
possession of the Leased Premises and shall thereafter notify the Landlord of any changes within
five days a8er such changes occur.
12. Tenant shatl not make or permit any noise or odor which Landlard deems
objectionable to emanate from the Leased Ptemises and no person shatl use the Leased Premises
as sleeping quarters, sleeping aparlments or lodging rooms.
13. Tenant shall obtain all permits and ]icenses necessary to conduct its business.
14. Tenant shall not operate any coin or token operated vending machine or similaz
device for the sale of any goods, wazes, merchandise, food, beverages, or services, including but
not limited to, pay telephones, pay lockers, pay toilets, scales, amusement devices and machines
for the sale of beverages, foods, chewing gum, candy, cigazettes or other commodities ar any
moving sign or fixture of any kind without the prior written consent of Landlord.
The foregoing covenants and agreements of this E�ibit P shall be refened to as "Rules and
Regulations."
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X= DESIGNATED SPACES � C �� v
� Ef� SEC�YION 12.1