Lamar Companies Lease AgreementTHE CITY OF
Dui
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Lamar Lease Agreement
DATE: July 31, 2014
Dubuque
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AI -America City
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2007 • 2012 • 2013
In 2008 the City of Dubuque purchased the parking lot to the west of the Bricktown
restaurant. Located on the property is a Lamar owned sign. A lease is required to allow
the sign to remain on City property.
Economic Development Director Maurice Jones recommends City Council approval of a
Renewal Lease Agreement with the Lamar Companies for a term commencing July 1,
2014, and terminating June 30, 2015.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
bat44 .,
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Maurice Jones, Economic Development Director
Masterpiece on the Mississippi
Dubuque
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All -America City
1111
111'
2007 • 2012 • 2013
Economic Development Department
50 West 13th Street
Dubuque, Iowa 52001-4864
Office (563) 589-4393
Fax (563) 589-1733
TTY (563) 690-6678
http://www.cityofdubuque.org
TO: Michael Van Miliigen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Lamar Lease Agreement
DATE: 7/30/14
INTRODUCTION
This memorandum presents for City Council approval of a Renewal Lease Agreement
with the Lamar Companies.
BACKGROUND
In 2008 the City of Dubuque purchased the parking lot to the west of the Bricktown
Restaurant. Located on the property is a Lamar owned sign. A lease is required to
allow the sign to remain on city property.
DISCUSSION
The lease agreement with the Lamar Companies will allow one side-by-side, 12' x 25' 2 -
pole structure along the south property line of the parking lot. In return for this
allowance, Lamar agrees to the following conditions:
• The billboards will be limited to advertising for entities located within the City of
Dubuque.
• Lamar will pay an annual rent of the greater of $2,400 or 20% of the annual gross
revenue from the billboards.
• Payment will occur on July 1, 2014 for the year.
• Lamar will pay for all utilities associated with the sign.
• Lamar will pay any real estate taxes attributable to their use of the property.
RECOMMENDATION/ ACTION STEP
I recommend that the City Council approve the attached Lease Agreement with Lamar
Companies.
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE
AND
THE LAMAR COMPANIES
This Lease Agreement (the "Lease"), dated for reference purposes the 3 day of
—0, 2014, is made and entered into by and between the City of
Dubuque, Iowa, a municipal corporation ("Lessor") and The Lamar Companies
("Lessee").
SECTION 1. DEMISE AND TERM.
1.1 In consideration of the rents hereinafter reserved and the terms, covenants,
conditions, and agreements set forth in this Lease, Lessor hereby leases to Lessee the
real property described as follows:
One (1) side-by-side, 12' x 25' 2 -pole structure located on the south
property line of the parking lot at 280 South Locust Street, Dubuque, Iowa
(the "Demised Premises"), to have and to hold for a term commencing on July 1, 2014,
and terminating at 11:59 p.m. on June 30, 2015, subject to all of the terms, covenants,
conditions, and agreements contained herein.
1.2 Lessee's use of the Demised Premises shall be exclusively for Lessee's current
billboards. The advertising on such billboards shall be limited to advertising for entities
located within the city of Dubuque, Iowa.
1.3 Lessor makes no representations or warranties of any kind as to the condition,
including the environmental condition, of the Demised Premises and Lessee accepts
the Demised Premises as is.
SECTION 2. RENT.
2.1 Lessee shall pay Lessor annual rent for the Demised Premises of the greater of
two thousand four hundred dollars ($2,400.00) or twenty percent (20%) of Lessee's
annual gross revenue (the "Rent") from the billboards. Lessee shall pay two thousand
four hundred dollars ($2,400.00) to Lessor on or before July 1, 2014, at City Hall, c/o
Finance Director. On or before June 30, 2015, Lessee shall pay to Lessor the
difference, if any, between two thousand four hundred dollars ($2,400.00) or twenty
percent (20%) of Lessee's annual gross revenue from the billboards.
2.2 Lessee shall also pay the costs for all utilities serving the Demised Premises.
2.3 Lessee shall also pay any real estate taxes attributable to the Demised Premises
or the Improvements.
06092014ASandMAQ
SECTION 3. IMPROVEMENTS. Lessee shall not construct on the Demised
Premises any improvements, nor alter or enlarge the improvements presently on the
Demised Premises (the "Improvements") except as may be agreed upon in writing by
Lessor and Lessee. Lessor, through its City Manager, shall have the right to approve
the design, appearance, and quality of any such improvements. All improvements
presently on the Demised Premises and all Improvements hereafter constructed on the
Demised Premises are and shall be the property of Lessee during the term of this Lease
and upon any termination of this Lease, by reason of any cause whatsoever, ,Lessee
within thirty (30) days thereafter shall remove all such Improvements and restore the
Demised Premises to the condition it was in immediately prior to the commencement of
the term of this Lease and to the full satisfaction of Lessor.
SECTION 4. ENCUMBRANCE OF LESSEE'S LEASEHOLD INTEREST. Lessee
shall not encumber by mortgage, deed of trust, or other instrument, its leasehold
interest and estate in the Demised Premises, or any Improvements placed by Lessee
on the Demised Premises, as security for any indebtedness of Lessee.
SECTION 5. REPAIRS AND MAINTENANCE. Lessee shall at all times during the
term of this Lease, at Lessee's own costs and expense, keep the Demised Premises
and the Improvements thereon, in superior order, condition, and repair, casualties and
ordinary wear and tear excepted. Lessee shall keep the Demised Premises in such
condition as may be required by law and by the terms of the insurance policies
furnished pursuant to this Lease, whether or not such repair shall be interior or exterior,
and whether or not such repair shall be of a structural nature. Upon reasonable notice
to Lessee, Lessor may, at its discretion, conduct an inspection of the Demised Premises
to determine Lessee's compliance with this Section 5.
SECTION 6. COMPLIANCE WITH LAW. During the term of this Lease, Lessee shall
comply with all laws applicable to Lessee's use of the Demised Premises.
SECTION 7. USE OF DEMISED PREMISES. Lessee shall not use or allow the
Demised Premises to be used or occupied for any unlawful purpose or in violation of
any certificate of occupancy. Lessee shall not suffer any act to be done or any
condition to exist within the Demised Premises or in any Improvement thereon, which
may be dangerous, unless safeguarded as required by law, or which may, in law,
constitute a nuisance, public or private, or which may make void or voidable any
insurance in force with respect thereto.
SECTION 8. INSURANCE. Lessee shall at all times during the term of this Lease
maintain insurance as set forth in the attached Insurance Schedule.
SECTION 9. INDEMNIFICATION. Lessee shall defend, indemnify, and save
harmless Lessor from and against all liabilities, obligations, claims, damages, penalties,
causes of action, costs, and expenses (including without limitation, reasonable
attorneys' fees and expenses) imposed upon or incurred by or asserted against Lessor
by reason of (a) any accident, injury to, or death of persons or loss of or damage to
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property occurring on or about the Demised Premises during the term of this Lease and
resulting from any act or omission of Lessee or anyone claiming by, through, or under
Lessee during the term of the Lease; and (b) any failure on the part of Lessee to
perform or comply with any of the terms of this Lease. In case any action, suit, or
proceeding is brought against Lessor by reason of such occurrence, Lessee shall, at
Lessee's expense, resist and defend such action, suit, or proceeding, or cause the
same to be resisted and defended by counsel approved by Lessor.
SECTION 10. CONDEMNATION. If at any time during the term of this Lease, all or
substantially all of the Demised Premises or the Improvements thereon shall be taken in
the exercise of the power of eminent domain by the State of Iowa or the United States,
then this Lease shall terminate on the date of vesting of title in such taking and any
prepaid rent shall be apportioned as of said date.
SECTION 11. ASSIGNMENT AND SUBLETTING. Lessee shall not assign or transfer
this Lease or sublease the whole or any part of the Demised Premises.
SECTION 12. DEFAULT. If Lessee shall fail or neglect to observe, keep, or perform
any of the covenants, terms, or conditions contained in this Lease on its part to be
observed, kept, or perforated, and the default shall continue for a period of five (5) days
after written notice from Lessor setting forth the nature of Lessee's default, then and in
any such event, Lessor shall have the right at its option, on written i notice to Lessee, to
terminate this Lease, and all rights of Lessee under this Lease shall then cease.
Lessor, without further notice to Lessee, shall have the right immediately to enter and
take possession of the Demised Premises with or without process of law and to remove
all personal property from the Demised Premises and all persons occupying the
Demised Premises and to use all necessary force therefore and in all respects to take
the actual, full, and exclusive possession of the Demised Premises and every part of the
Demised Premises as of Lessor's original estate, without incurring any liability to Lessee
or to any persons occupying or using the Demised Premises for any damage caused or
sustained by reason of such entry on the Demised Premises or the removal of persons
or property from the Demised Premises,
SECTION 13. QUIET ENJOYMENT. Lessor covenants that at all times during the term
of this Lease, so long as Lessee is not in default hereunder, Lessee's quiet enjoyment
of the Demised Premises or any part thereof shall not be disturbed by any act of Lessor,
or of anyone acting by, through, or under Lessor.
SECTION 14. WAIVER. No waiver by Lessor of any breach by Lessee of any term,
covenant, condition, or agreement herein and no failure by Lessor to exercise any right
or remedy in respect of any breach hereunder, shall constitute a waiver or
relinquishment for the future of any such term, covenant, condition, or agreement or of
any subsequent breach of any such term, covenant, condition, or agreement, nor bar
any right or remedy of Lessor in respect of any such subsequent breach, nor shall the
receipt of any rent, or any portion thereof, by Lessor, operate as a waiver of the rights of
Lessor to enforce the payment of any other rent then or thereafter in default, or to
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terminate this Lease, or to recover the Demised Premises, or to invoke any other
appropriate remedy which Lessor may select as herein or by law provided.
SECTION 15. SURRENDER. Lessee shall, on the last day of the term of this Lease or
upon any termination of this Lease hereof, surrender and deliver up the Demised
Premises, into the possession and use of Lessor, without fraud or delay and in good
order, condition, repair, free and clear of all lettings and occupancies, free and clear of
all liens and encumbrances.
SECTION 16. NOTICES. 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, shall be 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 LESSOR:
TO LESSEE:
City of Dubuque, Iowa
c/o City Manager
City Hall
50 W. 13th Street
Dubuque, IA 52001
James P. Schumacher
c/o Lamar Advertising
1690 Elm St
(Dubuque, IA, 52001)
The address to which any notice, demand, or other writing may be given or made or
sent to any party as above provided may be changed by written notice given by the
party as above provided.
SECTION 17. MISCELLANEOUS.
17.1 Time of the Essence. Time is of the essence of this Lease and all of its
provisions.
17.2 Governing Law. It is agreed that this Lease shall be governed by, construed, and
enforced in accordance with the laws of the State of Iowa.
17.3 Paragraph Headings. The titles to the paragraphs of this Lease are solely for the
convenience of the parties and shall not be used to explain, modify, simplify, or aid in
the interpretation of the provisions of this Lease.
17.4 Modification of Agreement. Any modification of this Lease or additional
obligation assumed by either party in connection with this Lease shall be binding only if
evidenced in writing signed by each party or an authorized representative of each party.
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Insurance Schedule A (continued)
Exhibit I
A) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit $2,000,000
Products -Completed Operations Aggregate Limit $1,000,000
Personal and Advertising Injury Limit $1,000,000
Each Occurrence $1,000,000
Fire Damage Limit (any one occurrence) $ 50,000
Medical Payments $ 5,000
a) Coverage shall be written on an occurrence, not claims made, form. All deviations
from the standard ISO commercial general liability form CG 0001, or Business
owners form BP 0002, shall be clearly identified.
b) Include ISO endorsement form CG 25 04 "Designated Location(s) General
Aggregate Limit."
c) Include endorsement indicating that coverage is primary and non-contributory.
d) Include endorsement to preserve Governmental Immunity. (Sample attached).
e) Include an endorsement that deletes any fellow employee exclusion.
f) Include additional insured endorsement for:
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. Use ISO form CG 20 10.
(Ongoing operations).
g) If vendor utilizes Trikkes or Segways in the conduct of business, include an
endorsement reflecting that these vehicles are not excluded from Commercial
General Liability coverage.
B) WORKERS' COMPENSATION & EMPLOYERS LIABILITY
Statutory benefits covering all employees injured on the job by accident or disease as
prescribed by Iowa Code Chapter 85 as amended.
Coverage A Statutory—State of Iowa
Coverage B Employers Liability
Each Accident $100,000
Each Employee -Disease $100,000
Policy Limit -Disease $500,000
Policy shall include an endorsement providing a waiver of subrogation to the City of
Dubuque.
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17.5 Parties Bound. This Lease shall be binding on and shall inure to the benefit of
and shall apply to the respective successors and assigns of Lessor and Lessee. All
references in this Lease to "Lessor" or "Lessee" shall be deemed to refer to and include
successors and assigns of Lessor or Lessee without specific mention of such
successors or assigns.
SECTION 18. FORCE MAJEURE. In the event that either party hereto shall be
delayed or hindered in or prevented from the performance of any act required
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 shall be excused for the
period of the delay and the period for the performance of any such act shall be
extended for a period equivalent to the period of such delay.
LESSOR: LESSEE:
CITY OF DUBUQUE, IOWA
THE LAMAR COMPANIES
By: __ By:
Michael C. Van Milligen es P. Schumacher
City Manager Vice President/General Manager
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Preservation of Governmental Immunities Endorsement
1 Nonwaiver of Governmental Immunity. 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 Coverage. 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 Coverage. 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 Change in Policy. The above preservation of governmental immunities shall not otherwise
change or alter the coverage available under the policy.
CI E'N
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