Hoffmann Schneider Lease Agree
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MEMORANDUM
April 12,2004
TO:
The Honorable Mayor and City Council Members
FROM:
Michael C. Van Milligen, City Manager
SUBJECT: Lease Agreement with Hoffmann Schneider Funeral Home
Jim Schneider contacted City staff to discuss the possibility of expanding the driveway
south of the Hoffmann Schneider Funeral Home to allow for expanding parking for the
business. With most of the on-street parking 'taken by people that live and work in the
area, they are having trouble providing enough parking when they have wakes and
funerals.
In working with Mr. Schneider on what he needed and what City staff felt would have a
limited impact on Jackson Park, it was agreed that if Hoffmann Schneider Funeral
Home went twenty-two feet into the park, and the length of its property, it would be
acceptable. This will provide thirty additional parking spaces for the home. The lease
provides the need for expanded parking, but protects the City's long-term interest in
Jackson Park.
The lease payment is $800 per year. The spaces may be used by the public when no
funeral or wake is scheduled.
Leisure Services Manager Gil Spence recommends setting a public hearing for May 3,
2004 to consider entering into a lease agreement with Hoffmann Schneider Funeral
Home for a section of Jackson Park.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
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Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Gil D. Spence, Leisure Services Manager
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CITY OF DUBUQUE, IOWA
MEMORANDUM
April 12,2004
TO: Michael C. Van Milligen, City Manager
FROM: Gil D. Spence, Leisure Services Manager
SUBJECT: Lease Agreement with Hoffmann Schneider Funeral Home
INTRODUCTION
The purpose of this memorandum is to request that the City Council schedule a public
hearing on May 3, 2004 to consider entering into a lease agreement with Hoffmann
Schneider Funeral Home for a section of Jackson Park.
DISCUSSION
Jim Schneider contacted me to discuss the possibility of expanding the driveway south
of the Hoffmann Schneider Funeral Home to allow for expanding parking for the
business. With most of the on-street parking taken by people that live and work in the
area, they are having trouble providing enough parking when they have wakes and
funerals.
Mr. Schneider first asked to purchase a section of Jackson Park to expand parking on
the south side of the home. In working with Mr. Schneider on what he needed and what
we felt would have a limited impact on Jackson Park, we agreed that if he went twenty-
two feet into the park, the length of his property, it would be acceptable. This will
provide thirty additional parking spaces for the home.
I was opposed to the sale of this section of the park because I wanted the property back
if the building ever stops functioning as a funeral home. It also seemed easier and less
costly for Mr. Schneider to simply lease the property, so we agreed to the attached
lease. The lease provides the need for expanded parking, protects the City's long-term
interest in Jackson Park, and is less expensive in the long run for Mr. Schneider.
Construction of the parking will require relocation of a piece of the park sidewalk and
removal of one light fixture. Mr. Schneider will do this at his cost.
ACTION STEP
The action requested is that the City Council set a public hearing for May 3, 2004 to
consider entering into a lease agreement with Hoffmann Schneider Funeral Home for a
section of Jackson Park.
GDS:et
attachment
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
HOFFMANN SCHNEIDER FUNERAL HOME
THIS AGREEMENT, made and entered into this 3rd day of May, 2004, by and
between the City of Dubuque (City), whose address, for the purpose of this Lease, is 50
W. 13th Street, Dubuque, lA, 52001 and Hoffmann Schneider Funeral Home, whose
address for the purpose of this Lease is 1640 Main Street, Dubuque, lA, 52001.
The parties agree as follows:
1. PREMISES AND TERM. City leases to Hoffmann Schneider Funeral Home
the following real estate, situated in Dubuque County, Iowa:
A 22' x 128' section of Jackson Park, adjacent
to Hoffmann Schneider Funeral Home
together with all improvements thereon, and all rights, easements and appurtenances
thereto belonging, for a term beginning on the 1st day of May, 2004, and ending on the
30th day of April, 2014, with two ten-year extensions, if both parties agree.
2. RENT. Hoffmann Schneider Funeral Home agrees to pay City as rent
$800.00 per year for the term of the Lease beginning on May 1, 2004.
3. POSSESSION. Hoffmann Schneider Funeral Home shall be entitled to
possession on the first day of the Lease term, or such earlier date as the parties may
agree, and shall yield possession to City at the termination of this Lease.
4. USE. Hoffmann Schneider Funeral Home shall use and maintain the
premises only for expansion of parking for the funeral home. Hoffmann Schneider
Funeral Home agrees that parking spaces on this leased area may be used for public
parking, when there is not wake or funeral services scheduled. No vehicle may be
parked in this area for longer than a 24-hour period.
5. CARE AND MAINTENANCE.
(a) Hoffmann Schneider Funeral Home takes the premises as is.
(b) Hoffmann Schneider Funeral Home shall maintain the premises in a
reasonable safe, clean and presentable condition, including the screening around the
parking lot. Hoffmann Schneider Funeral Home shall not erect any structure of any kind
on the premises without the prior written consent of City.
6. UTILITIES AND SERVICES. Hoffmann Schneider Funeral Home shall pay
for all utilities and services which may be used on the premises.
7. SURRENDER. Upon the termination of this Lease, Hoffmann Schneider
Funeral Home will surrender the premises to City in good and clean condition. If the
building stops serving as a funeral home, this lease is terminated.
8. ASSIGNMENT AND SUBLETTING. Hoffmann Schneider Funeral Home
shall not assign, sublet or otherwise transfer the premises or any part thereof, and any
attempted assignment, subletting or transfer shall work an automatic forfeiture and
termination of this Lease.
9. INSURANCE. Hoffmann Schneider Funeral Home shall obtain general
liability insurance as set forth in the City's Insurance Schedule for Lessee's of City
Property as such schedule may from time to time be amended. A copy of the current
schedule is attached here to.
10. INDEMNITY. Hoffmann Schneider Funeral Home will protect, defend, and
indemnify City from and against any and all loss, costs, damage and expenses
occasioned by, or arising out of, any accident or other occurrence causing or inflicting
injury or damage to any person or property, happening or done in, upon or about the
premises, or due directly or indirectly to the tenancy, use or occupancy thereof, or any
part thereof by Hoffmann Schneider Funeral Home or any person claiming through or
under Hoffmann Schneider Funeral Home.
11. MECHANICS' LIENS. Neither Hoffmann Schneider Funeral Home, nor
anyone claiming by, through, or under Hoffmann Schneider Funeral Home, shall have
the right to file any mechanic's lien against the premises.
12. DEFAULT, NOTICE OF DEFAULT AND REMEDIES.
A. The following shall constitute an event of default by Hoffmann Schneider
Funeral Home: Failure to observe or perform any duties, obligations, agreements, or
conditions imposed on Hoffmann Schneider Funeral Home pursuant to the terms of the
Lease.
B. City shall give Hoffmann Schneider Funeral Home a written notice specifying
the default and giving Hoffmann Schneider Funeral Home ten (10) days in which to
correct the default. If there is a default that cannot be remedied in ten (10) days by
diligent efforts of Hoffmann Schneider Funeral Home, Hoffmann Schneider Funeral
Home shall propose an additional period of time in which to remedy the default.
Consent to additional time shall not be unreasonably withheld by City. City shall not be
required to give Hoffmann Schneider Funeral Home any more than three notices for the
same default within any 365 day period.
C. In the event Hoffmann Schneider Funeral Home has not remedied a default in
a timely manner following a Notice of Default, City may declare this Lease to be
terminated and shall give Hoffmann Schneider Funeral Home a written notice of such
termination. In the event of termination of this Lease, City shall be entitled to prove
claim for and obtain judgment against Hoffmann Schneider Funeral Home for the
reasonable expenses of the City in regaining possession of the premises, including
attorney's fees and court costs.
D. In the event of termination of this Lease, Hoffmann Schneider Funeral Home
shall be entitled to a pro rata abatement of rent.
13. NOTICES AND DEMANDS. All notices shall be given to the parties hereto
at the addresses designated unless either party notifies the other, in writing, of a
different address. Without prejudice to any other method of notifying a party in writing or
making a demand or other communication, such notice shall be considered given under
the terms of this Lease when it is deposited in the U.S. Mail, registered or certified,
properly addressed, return receipt requested, and postage prepaid.
14. PROVISIONS BINDING. Each and every covenant and agreement herein
contained shall extend to and be binding upon the respective successors, heirs,
administrators, executors and assigns of the parties hereto.
CITYOF DUBUQUE, IOWA
By
Terrance M. Duggan, Mayor
Attest:
Jeanne F. Schneider, City Clerk
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STATE OF IOWA
: 55:
DUBUQUE COUNTY
On this c!!?J day of /j),.f;¿j f/ 2004, before me, a Notary Public in
and for the State of Iowa, in and for said county, personally appeared James
Schneider for Hoffmann Schneider Funeral Home, to me personally known, who
acknowledged the execution of this instrument to be his voluntary act and deed.
STATE OF IOWA
: 55:
DUBUQUE COUNTY
/
On this ~ day of ,2004, , before me, a Notary Public in and for
the State of Iowa, in and for said county, personally appeared Terrance M. Duggan and
Jeanne F. Schneider, to me personally known, who being by me duly sworn did say that
they are the Mayor and City Clerk, respectively of the City of Dubuque, a Municipal
Corporation, created and existing under the laws of the State of Iowa, and that the seal
affixed to said instrument is the seal of said Municipal Corporation and that said
instrument was signed and sealed on behalf of said Municipal corporation by authority
and resolution of its City Council and said Mayor and City Clerk acknowledged said
instrurnent to be the free act and deed of said Municipal Corporation by it voluntarily
executed.
Notary Public, State of Iowa
INSURANCE SCHEDULE A
INSURANCE REQUIREMENTS FOR TENANTS AND LESSEES OF CITY PROPERTY
OR VENDORS (SUPPLIERS, SERVICE PROVIDERS) TO THE CITY OF DUBUQUE
1. All policies of insurance required hereunder shall be with an insurer authorized to do
business in Iowa. All insurers shall have a rating of A of better in the current AM. Best
Rating Guide.
2. All policies of insurance shall be endorsed to provide a thirty (30) day advance notice of
cancellation to the City of Dubuque if cancellation is prior to the expiration date. This
endorsement supersedes the standard cancellation statement on the Certificate of
Insurance.
3. Hoffmann Schneider Funeral Home shall furnish a Certificate of Insurance to the City of
Dubuque, Iowa for the coverage required in Paragraph 6 below. Such certificates shall
include copies of the following policy endorsements:
a) Thirty day notice of cancellation to the City of Dubuque.
b) Commercial General Liability policy is primary and non-contributing.
c) Commercial General Liability additional insured endorsement.
d) Governmental Immunity Endorsements.
e) Waiver of recovery under workers compensation.
4. Each certificate shall be submitted to the contracting department of the City of Dubuque.
5. Failure to provide minimum coverage shall not be deemed a waiver of these
requirements by the City of Dubuque. Failure to obtain or maintain the required
insurance shall be considered a material breach of this agreement.
6. Hoffmann Schneider Funeral Home shall be required to carry the following minimum
coverage/limits or greater if required by law or other legal agreement:
a) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit
Products-Completed Operations Aggregate Limit
Personal and Advertising Injury Limit
Each Occurrence Limit
Fire Damage Limit (anyone occurrence)
Medical Payments
$2,000,000
$1,000,000
$1,000,000
$1,000,000
$ 50,000
$ 5,000
This coverage shall be written on an occurrence, not claims made, form per
location. All deviations or exclusions from the standard ISO commercial general
liability form CG 0001 or Business owners form BP 0002 shall be clearly
identified.
Governmental Immunity Endorsement identical or equivalent to form attached.
An additional insured endorsement identical or equivalent to ISO Form CG 2026
or CG 2011 and include as additional insureds: "The City of Dubuque, including
all its elected and appointed officials, all its employees and volunteers, all its
boards, commissions and/or authorities and their board members, employees,
and volunteers."
POLICY NUMBER
COMMERCIAL GENERAL LIABILITY
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
ADDITIONAL INSURED- DESIGNATED PERSON OR
ORGANIZATION
This endorsement modifies Insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART.
SCHEDULE
Name of Person Or Organization:
The City of Dubuque, including all its elected and appointed officials, all its employees and volunteers, all
its boards. commissions and/or authorities and their board members, employees, and volunteers.
(If no entry appears above, information required to complete this endorsement will be shown in the
Declarations as applicable to this endorsement)
WHO IS AN INSURED (Section II) is amended to include as an insured the person or organization shown
in the Schedule as an insured but only with respect to liability arising out of your operations or premises
owned by or rented to you.
CopvriQht Insurance Services Office. Inc. 1994
CG 20 2611 85
CITY OF DUBUQUE, IOWA
GOVERNMENTAL IMMUNITIES ENDORSEMENT
1.
Nonwaiver of Governmentallmmunitv. The insurance carrier expressly agrees and
states that the purchase of this policy and the including of the City of Dubuque, Iowa
as an Additional Insured does not waive any of the defenses of governmental
immunity available to the City of Dubuque, Iowa under Code of Iowa Section 670.4
as it is now exists and as it may be amended from time to time.
2.
Claims Coveraqe. The insurance carrier further agrees that this policy of insurance
shall cover only those claims not subject to the defense of governmental immunity
under the Code of Iowa Section 670.4 as it now exists and as it may be amended
from time to time. Those claims not subject to Code of Iowa Section 670.4 shall be
covered by the terms and conditions of this insurance policy.
3.
Assertion of Government Immunity. The City of Dubuque, Iowa shall be responsible
for asserting any defense of governmental immunity, and may do so at any time and
shall do so upon the timely written request of the insurance carrier.
4.
Non-Denial of Coveraqe. The insurance carrier shall not deny coverage under this
policy and the insurance carrier shall not deny any of the rights and benefits
accruing to the City of Dubuque, Iowa under this policy for reasons of governmental
immunity unless and until a court of competent jurisdiction has ruled in favor of the
defense(s) of governmental immunity asserted by the City of Dubuque, Iowa.
No Other Chanqe in Policy. The above preservation of governmental immunities shall
not otherwise change or alter the coverage available under the policy.