Lease with DALMC for Federal Building Space 2017-2019 I
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Dubuque Economic Development
THE CITY OF hilkid
Department
STB E �IIII
a 1.1r 50 West 13th Street
Dubuque, Iowa 52001-4864
Masterpiece on the Mississippi 2007.2012.2013 Office (563) 589-4393
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Lease execution — Federal Building
DATE: March 1, 2017
DISCUSSION
Location:
681 sq. feet, second floor Federal Building, located at 350 West Gtr' Street,
Dubuque, IA, 52001, Rooms 236 and 237.
Lease Term:
Mar 2017 — Feb 2019
Lease Revenue [updated lease amounts in section 2 (3% escalator)]:
2.1 Lessee will pay to Lessor as monthly rent for the Leased Premises the sum of
Seven Hundred One and 43/100 dollars ($701.43) (the Base Rent) commencing on
March 1, 2017 and on the 1St day of each month thereafter during the first year of the
Initial Term of this lease. All sums must be paid to the Finance Department at the
address of the Landlord, as above designated, or at such other place in Iowa, or
elsewhere, as Landlord may, from time to time, designate In writing. Delinquent
payments will draw interest at 9% per annum from the due date, until paid.
2.2 Beginning March 1, 2018, the Base Rent will be Seven Hundred Twenty-Two and
47/100 ($722.47) and paid to the Lessor on the 1 st day of each month thereafter.
Change:
...new language in section 8.1 which would allow the City to terminate early if it was
determined necessary
RECOMMENDATION/ ACTION STEP
I am respectfully requesting your signature on the attached lease.
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LEASE AGREEMENT
BETWEEN
TIME CITY OF DUBUQUE, IOWA
AND
DUBUQUE AREA LABOR-MANAGEMENT COUNCIL
This Lease Agreement (the "Lease"), dated for reference purposes the day of March
1, 2017, is entered into by and between the City of Dubuque, Iowa ("Landlord") whose
address for the purpose of this Lease is 50 West 131h Street, Dubuque IA 52001, and
Dubuque Area Labor-Management Council ("Tenant")whose address for the purpose of
this Lease is P.O. Box 14, Dubuque, IA 52004-0014.
SECTION 1. PREMISES AND TERM. Landlord, in consideration of the rents,
agreements, and conditions herein contained, leases to Tenant and Tenant leases from
Landlord, according to the terms of this Lease, the following described premises (the
"Leased Premises")situated in Dubuque County, Iowa:
681 sq. feet, second floor Federal Building, located at 350 West 6t" Street,
Dubuque, IA, 52001, Rooms 236 and 237.
with the improvements thereon, and all rights, easements and appurtenances, which,
more particularly, includes the space and premises as may be shown on attached
"Exhibit A,", for a term of two (2) years (the "Term"), commencing March 1, 2017, and
ending at 11:59 on February 28, 2019, upon the condition that Tenant pays rent
therefor, and otherwise performs as in this Lease provided.
SECTION 2. RENTAL. Tenant agrees to pay to Landlord as rental for the Term, as
follows:
2.1 Lessee will pay to Lessor as monthly rent for the Leased Premises the sum of
Seven Hundred One and 43/100 dollars ($701.43) (the Base Rent) commencing on
March 1, 2017 and on the I` day of each month thereafter during the first year of the
Initial Term of this lease. All sums must be paid to the Finance Department at the
address of the Landlord, as above designated, or at such other place in Iowa, or
elsewhere, as Landlord may, from time to time, designate in writing. Delinquent
payments will draw interest at 9% per annum from the due date, until paid.
2.2 Beginning March 1, 2018, the Base Rent will be Seven Hundred Twenty-Two and
47/100 ($722.47) and paid to the Lessor on the 15t day of each month thereafter.
SECTION 3. POSSESSION. Tenant will be entitled to possession on the first day of
the Term of this Lease, and must yield possession to Landlord at the end of the Term,
except as herein otherwise expressly provided. Should Landlord be unable to give
possession on said date, Tenant's only damages will be a rebating of the pro rata rental.
SECTION 4. USE OF PREMISES. Tenant covenants and agrees during the Term of
this Lease to use and to occupy the Leased Premises only for business use.
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SECTION 5. QUIET ENJOYMENT. Landlord covenants that its estate in said Leased
Premises is in fee simple and that Tenant, if not in default, will peaceably have, hold
and enjoy the Leased Premises for the Term' of this Lease. Landlord has the right to
mortgage all of its right, title, and interest in the Leased Premises at any time without
notice, subject to this Lease.
SECTION 6. EQUIPMENT, DECORATING, REPLACEMENT, REPAIR AND
MAINTENANCE.
6.1 Definitions.
(1) "Maintain" means to clean and keep in good condition.
(2) "Repair" means to fix and restore to good condition after damage,
deterioration or partial destruction.
6.2 Conditions of Premises.
(1) Tenant takes the Leased Premises in its present condition, except for
such repairs and alterations as may be expressly otherwise provided in this
Lease.
6.3 Repairs and Maintenance.
(1) Landlord must replace and repair the structural parts of the building. For
purposes of this Lease, the structural parts of the building are the foundation,
exterior walls, load bearing components of interior floors and walls, the roof and
all sewers, pipes, wiring and electrical fixtures outside of the structure.
(2) Landlord is responsible for maintenance of all common area under
Landlord's control, Tenant is responsible for all maintenance within the Leased
Premises.
(3) Each party must perform its responsibilities of repair and maintenance to
the end that the Leased Premises will be kept in a safe and serviceable
condition. Neither party will permit nor allow the Leased Premises to be
damaged or depreciated in value by any act, omission to act, or negligence of
itself, its agents or employees.
6.4 Equipment, DqggEgjjng and Alterations.
(1) The space shall be used as an office. Landlord will replace the window
coverings 41hterne'Ll'i Landlord will also put
Tenant's name on the office door in the [eased space.
(2) Any equipment, furnishings or fixtures to be supplied by Tenant shall be
subject to Landlord's prior written approval as to quality and method of
installation. Tenant will provide all trade equipment, furnishings and fixtures used
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in connection with the operation of its business, such as telephones, computers,
desks, chairs, shelving and similar items.
(3) Tenant is responsible for all interior decorating. Tenant will make no
structural alterations or improvements without the prior written consent of the
Landlord.
6.5 Americans With C)isabilities Act.
Tenant will make no unlawful use of the Leased Premises and agrees to comply
with all valid regulations of the Board of Health, City Ordinances, the laws of the
State of Iowa and the federal government, but this provision may not be
construed as creating any duty by Tenant to members of the general public,
provided, however, responsibility for compliance with the Americans with
Disabilities Act will be performed and paid for by the parties as follows:
Common areas Landlord: 100%
Tenant's area:
Initial compliance (specify) Landlord: 100%
Future compliance Landlord: 100%
SECTION 7. UTILITIES, SERVICES, PROPERTY TAXES. Utilities and services will
be furnished and paid for by the parties as follows:
PROVIDED BY: PAID BY:
% Landlord % Tenant
Electricity Landlord 100 0
Gas Landlord 100 0
Water and Sewer Landlord 100 0
Garbage/Trash Landlord 100 0
Phone access' Landlord 100 0
Property Taxes Tenant 0 100
Janitor/Cleaning Tenant 0 100
Common areas Landlord 100 0
Other: Tenant 0 100
"Tenant buys phones and email system.
SECTION 8. TERMINATION, SURRENDER OF PREMISES AT END OF TERM --
REMOVAL OF FIXTURES.
8.1 Termination. City may terminate this Lease any time after giving the DALMC
thirty (30) days written notice. In such event of early termination, Tenant will be
relocated at Landlord's expense for actual expenditures up to $8,500.00.
8.2 Surrender. Tenant agrees that upon termination of this Lease it will surrender
and deliver the Leased Premises in good and clean condition, except the effects of
ordinary wear and tear and depreciation arising from lapse of time, or damage without
fault or liability of Tenant.
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8.3 Holding Over. Continued possession by Tenant, beyond the expiration of its
tenancy, coupled with the receipt of the specified rental by Landlord (and absent a
written agreement by both parties for an extension of this Lease, or for a new lease) will
constitute a month to month extension of this Lease.
8.4 Removal of Fixtures. Tenant may, at the expiration of its tenancy, if Tenant is not
in default, remove any fixtures or equipment which Tenant has installed in the Leased
Premises, providing Tenant repairs any and all damages caused by removal.
SECTION 9 ASSIGNMENT AND SUBLETTING. Any assignment of this Lease or
subletting of the Leased Premises or any part thereof, without the Landlord's written
permission will, at the option of Landlord, make the rental for the balance of the Lease
Term due and payable at once. Such written permission may not be unreasonably
withheld.
SECTION 10. INSURANCE.
10.9 Property Insurance. Landlord and Tenant agree to insure their respective real
and personal property for the full insurable value. Such insurance must cover losses
included in the Insurance Services Official Broad Form Causes of Loss (formerly fire
and extended coverage).
10.2 Liability Insurance. Tenant must at all times during the term of this Lease provide
insurance as described in the attached Insurance Schedule as such schedule may from
time to time be revised by Landlord.
10.3 Certificates of Insurance. Prior to the time this Lease takes effect Tenant will
provide Landlord with a certificate of insurance with these property and liability
insurance requirements. A renewal certificate shall be provided prior to expiration of the
current policies.
10.4 Acts By Tenant. Tenant will not do or omit doing of any act which would
invalidate any insurance, or increase the insurance rates in force on the Leased
Premises.
10.5 Recommendations - Iowa Insurance Services Office. Tenant further agrees to
comply with recommendations of Iowa Insurance Services Office and to be liable for
and to promptly pay, as if current rental, any increase in insurance rates on said
premises and on the building of which said Leased Premises are a part, due to
increased risks or hazards resulting from Tenant's use of the Leased Premises
otherwise than as herein contemplated and agreed.
10.6 Copy of Lease to Insurer. Landlord and Tenant must each provide a copy of this
Lease to their respective insurers.
SECTION 11. LIABILITY FOR DAMAGE. Each party agrees it is liable to the other
for all damage to the property of the other negligently, recklessly or intentionally caused
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by that party, or their agents, employees or invitees).
SECTION 12. INDEMNITY. Tenant agrees to indemnify and hold harmless
Landlord, its officers and employees, from and against any and all claims of any kind
arising out of or related to Tenant's performance of its obligations in this Lease.
SECTION 13. FIRE AND CASUALTY.
13.1 'Partial Destruction of Premises. In the event of a partial destruction or damage
of the Leased Premises, which is a business interference which prevents the conducting
of a normal business operation and which damage I I s repairable within 60 days after its
occurrences, this Lease will not terminate but the rent for the Leased Premises will be
abated during the time of such business interference. In the event of a partial
destruction, Landlord will repair such damages within 60 days of its occurrence unless
prevented from doing so by acts of God, government regulations, or other causes
beyond Landlord's reasonable control.
13.2 Zoning. Should the zoning ordinance of the municipality in which this property is
located make it impossible for Landlord to repair or rebuild so that Tenant is not able to
conduct its business on the Leased Premises, then such partial destruction will be
treated as a total destruction as provided in the next paragraph.
13.3 Total Destruction of Business Use. In the event of a destruction or damage of
the Leased Premises that is not the fault of Tenant including the parking area (if parking
area is a part of this Lease) so that Tenant is not able to conduct its business on the
Leased Premises or the then current legal use for which the Leased Premises are being
used and which damages cannot be repaired within sixty (60) days, this Lease may be
terminated at the option of either Landlord or Tenant. Such termination in such event
will be effected by written notice of one party to the other, within 20 days after such
destruction. Tenant must surrender possession within 10 days after such notice issues
and each party will be released from all future obligations, and Tenant must pay rent pro
rata only to the date of such destruction. In the event of such termination of this Lease,
Landlord at its option, may rebuild or not, at its discretion.
SECTION 14. CONDEMNATION.
14.1 Disposition of Awards. Should the whole or any part of the Leased Premises be
condemned or taken for any public or quasi-public purpose, each party is entitled to
retain, as its own property, any award payable to it. Or in the event that a single entire
award is made on account of the condemnation, each party will then be entitled to take
such proportion of said award as may be fair and reasonable.
14.2 Date of Lease Termination. If the whole of the Leased Premises shall be
condemned or taken, Landlord will not be liable to Tenant except and as its rights are
preserved in paragraph 13.1 above.
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SECTION 15. DEFAULT, NOTICE OF DEFAULT AND REMEDIES.
15.1 Events of Default.
Each of the following constitutes an event of default by Tenant:
(1) Failure to pay rent when due.
(2) Failure to observe or perform any duties, obligations, agreements
or conditions imposed on Tenant pursuant to terms of the Lease.
(3) Abandonment of the Leased Premises. "Abandonment" means
Tenant has failed to engage in its usual and customary business activities
on the Leased Premises for more than fifteen (15) consecutive business
days.
(4) Institution of voluntary bankruptcy proceedings in which the Court
orders relief against Tenant as a debtor; assignment for the benefit of
creditors of the interest of Tenant under this Lease agreement;
appointment of a receiver for the property or affairs of Tenant, where the
receivership is not vacated within ten (10) days after the appointment of
the receiver.
15.2 Notice of Default. Landlord must give Tenant a written notice specifying the
default and giving Tenant ten (10) days in which to correct the default. If there is a
default (other than for nonpayment of a monetary obligation of Tenant, including rent)
that cannot be remedied in ten (10) days by diligent efforts of Tenant, Tenant must
propose an additional period of time in which to remedy the default. Consent to
additional time may not be unreasonably withheld by Landlord. Landlord is not required
to give Tenant any more than three notices,for the same default within any 365-day
period.
15.3 Remedies. In the event Tenant has not remedied a default in a timely manner
following a Notice of Default, Landlord may proceed with all available remedies at law or
in equity, including but not limited to the following:
(1) Termination. Landlord may declare this Lease to be terminated and must
give Tenant a written notice of such termination. In the event of termination of
this Lease, Landlord is entitled to prove claim for and obtain judgment against
Tenant for the balance of the rent agreed to be paid for the Term herein
provided, plus all expenses of Landlord in regaining possession of the Leased
Premises and the reletting thereof, including attorney's fees and court costs,
crediting against such claim, however, any amount obtained by reason of such
reletting.
(2) Forfeiture. If a default is not remedied in a timely manner, Landlord may
then declare this Lease to be forfeited and must give Tenant a written notice of
such forfeiture, and may, at the time, give Tenant the notice to quit provided for in
Chapter 648 of the Code of Iowa.
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SECTION 1 . DIGHT OF EITHER PARTY TO MAKEG l ANY DEFAULT OF
THE OTHER. If default is made by either party in the performance of, or compliance
with, any of the terms or conditions of this Lease, and such default continues for thirty
(30) days after written notice thereof from one party to the other, the person aggrieved,
in addition to all other remedies now or hereafter provided by law, may, but need not,
perform such term or condition, or make good such default and any amount advanced
will be repaid forthwith on demand, together with interest at the rate of 9% per annum,
from date of advance.
SECTION 17. SIGNS. Tenant may not attach, paint or exhibit any signs on the
Leased Premises. The landlord will place name on the office door(Dubuque Area Labor
Management) and will add tenants name to marquee in the building lobby.
SECTION 18. MECHANIC'S LIENS. Neither Tenant nor anyone claiming by,
through, or under Tenant, may file or place any mechanic's liens or other lien of any
kind or character whatsoever, upon said Leased Premises or upon any building or
improvement thereon, or upon the leasehold interest of Tenant, and notice is hereby
given that no contractor, sub-contractor, or anyone else who may furnish any material,
service or labor for any building, improvements, alteration, repairs or any part thereof,
may at any time be or become entitled to any lien on the Leased Premises, and for the
further security of Landlord, Tenant covenants and agrees to give actual notice thereof
in advance, to any and all contractors and sub-contractors who may furnish or agree to
furnish any such material, service or labor.
SECTION 1 . LANDLORD'S LIEN AND SECURITY INTEREST.
19.9 Landlord's Lien. Landlord will have, in addition to any lien given by law, a security
interest as provided by the Uniform Commercial Code of Iowa, upon all personal
property and all substitutions thereof, kept and used on said Leased Premises by
Tenant. Landlord may proceed at law or in equity with any remedy provided by law or
by this Lease for the recovery of rent, or for termination of this Lease because of
Tenant's default in its performance.
SECTION 20. ENVIRONMENTAL.
20.1 Landlord. To the best of Landlord's knowledge to date:
(1) Neither Landlord nor Landlord's former or present tenants are subject to
any investigation concerning the Leased Premises by any governmental authority
under any applicable federal, state, or local codes, rules and regulations
pertaining to air and water quality, the handling, transportation, storage,
treatment, usage, or disposal of toxic or hazardous substances, air emissions,
other environmental matters, and all zoning and other land use matters.
(2) Any handling, transportation, storage, treatment, or use of toxic or
hazardous substances that has occurred on the Leased Premises has been in
compliance with all applicable federal, state and local codes, rules and
regulations.
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(3) No leak, spill release, discharge, emission or disposal of toxic or
hazardous substances has occurred on the Leased Premises.
(4) The soil, groundwater, and soil vapor on or under the Leased Premises is
free of toxic or hazardous substances.
(5) Landlord assumes liability and will indemnify and hold Tenant harmless
against all liability or expense arising from any condition which existed, whether
known or unknown, at the time of execution of the Lease which condition is not a
result of actions of Tenant or which condition arises after date of execution but
which is not a result of actions of Tenant.
20.2 Tenant. Tenant expressly represents and agrees:
(1) During the Lease Term, Tenant's use of the Leased Premises will not
include the use of any hazardous substance without Tenant first obtaining the
written consent of Landlord. Tenant understands and agrees that Landlord's
consent is at Landlord's sole option and complete discretion and that such
consent may be withheld or may be granted with any conditions or requirements
that Landlord deems appropriate;
(2) During the Lease Term, Tenant will be fully liable for all costs and
expenses related to the use, storage, removal and disposal of hazardous
substances used or kept on the Leased Premises by Tenant, and Tenant must
give immediate notice to Landlord of any violation or any potential violation of any
environmental regulation, rule, statute or ordinance relating to the use, storage or
disposal of any hazardous substance;
(3) Tenant, at its sole cost and expense, agrees to remediate, correct or
remove from the Leased Premises any contamination of the property caused by
any hazardous substances which have been used or permitted by Tenant on the
Leased Premises during any term of this Lease. Remediation, correction or
removal must be in a safe and reasonable manner, and in conformance with all
applicable laws, rules and regulations. Tenant reserves all rights allowed by law
to seek indemnity or contribution from any person, other than Landlord, who is or
may be liable for any such cost and expense.
(4) Tenant agrees to indemnify and hold Landlord harmless from and against
all claims, causes of action, damages, loss, costs, expense, penalties, fines,
lawsuits, liabilities, attorney fees, engineering and consulting fees, arising out of
or in any manner connected with hazardous substances, which are caused or
created by Tenant on or after the date of this Lease and during any term of this
Lease, including, but not limited to, injury or death to persons or damage to
property, and including any diminution of the value of any Leased Premises
which may result from the foregoing. This indemnity shall will the cessation,
termination, abandonment or expiration of this Lease.
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SECTION 21. SUBSTITUTION OF EQUIPMENT, MERCHANDISE. ETC,
21.1 Tenant's Property. During its tenancy, Tenant has the right to sell or otherwise
dispose of any personal property of Tenant situated on the Leased Premises, when in
the judgment of Tenant it has become obsolete, outworn or unnecessary in connection
with the operation of the business on the Leased Premises; provided, however, that
Tenant must, in such instance (unless no substituted article or item is necessary) at its
own expense, substitute for such items a new or other item in substitution thereof, in like
or greater value.
21.2 Inventory. Nothing herein contained shall be construed as denying to Tenant the
right to dispose of inventoried merchandise in the ordinary course of Tenant's trade or
business.
SECTION 22. RIGHTS CUMULATIVE. The various rights, powers, options, elections
and remedies of either party, provided in this Lease, will be construed as cumulative
and no one of them as exclusive of the others, or exclusive of any rights, remedies or
priorities allowed either party by law, and may in no way affect or impair the right of
either party to pursue any other equitable or legal remedy to which either party may be
entitled as long as any default remains in any way unremedied, unsatisfied or
undischarged.
SECTION 23. NOTICES AND DEMANDS. All notices, demands, or other writings in
this Lease provided to be given or made or sent, or that may be given or made or sent,
by either party to the other, will be deemed to have been fully given or made or sent
when made in writing and deemed to have been fully given or made or sent when made
in writing and deposited in the United States mail, registered, and postage prepaid, and
addressed as follows:
TO LANDLORD: City of Dubuque, Iowa
c/o City Manager
City Hall
50 West 13th Street
Dubuque, Iowa 52001
TO TENANT: Dubuque Area Labor Management Council
c/o Kelly Cooper
PO Box 14
Dubuque, Iowa 52004-0014
SECTION 24. CONSTRUCTION. Words and phrases herein, including
acknowledgment hereof, will be construed as in the singular or plural number, and as
masculine, feminine or neuter gender according to the context.
SECTION 25. COMPLIIANCE WITH LAW. During the term of this Lease, Tenant
must comply with all laws applicable to Tenant's use of the Leased Premises.
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SECTION 26, MISCELLANEOUS.
26.1 Governing Law. It is agreed that this Lease will be governed by, construed, and
enforced in accordance with the laws of the State of Iowa.
26.2 Paragraph Headings. The titles to the paragraphs of this Lease are solely for the
convenience of the parties and will not be used to explain, modify, simplify, or aid in the
interpretation of the provisions of this Lease.
26.3 Modification of Agreement. Any modification of this Lease or additional
obligation assumed by either party in connection with this Lease will be binding only if
evidenced in writing signed by each party or an authorized representative of each party.
26.4 Parties Bound. This Lease binds and inures to the benefit of and applies to the
respective successors and assigns of Landlord and Tenant. All references in this Lease
to "Landlord" or "Tenant' will be deemed to refer to and included successors and
assigns of Landlord or Tenant without specific mention of such successors or assigns.
SECTION 27. FORCE MAJEURE. In the event that either party hereto will be
delayed or hindered in or prevented from the performance of any act required I
hereunder by reason of strikes, lockouts, labor troubles, unavailability of construction
materials, unavailability or excessive price of fuel, power failure, riots, insurrection, war,
terrorist activities, explosions, hazardous conditions, fire, flood, weather or acts of God,
or by reason of any other cause beyond the exclusive and reasonable control of the
party delayed in performing work or doing acts required under the terms of this Lease
(collectively Force Majeure), then performance of such act will be excused for the period
of the delay and the period for the performance of any such act will be extended for a
period equivalent to the period of such delay.
CITY OF DUBUQUE, DUBUQUE AREA LABOR-
LANDLORD MANAGMEMENT COUNCIL,
TENANT
By. .
Michael Van Milligan Kelly C pc r
City Manager Executiv Director
1d