United States Postal Service LeaseTHE CITY Or ~~
DUB E MEMORANDUM
Mczstc rpiece cm the Mississippi
September 25, 2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: United States Postal Service Lease
The United States Postal Service Lease in the Historic Federal Building expires on
October 1, 2007. Economic Development Director Dave Heiar has negotiated a new
lease with the Postal Service. The major provisions of the proposed lease are as
follows:
• The lobby area is considered joint use. The United States Postal Service agrees
to pay for a portion of the lobby area.
• The City and its tenants in the Historic Federal Building will have access to the
loading docks.
• The United States Postal Service will be responsible for cleaning their exclusive
space.
• The United States Postal Service will reduce the amount of space needed. They
will no longer lease any space in the basement.
• Although the total exclusive leased space will decrease, the annual lease
payments will increase from $190,418 per year to $198,500 per year.
• The lease price is fixed for five years with the option to renew for another five-
yearterm at $218,350 per year.
• The United States Postal Service will reimburse the City for apro-rated share of
property taxes.
• The United States Postal Service will continue to lease 12 parking spaces along
the building at a cost of $32.00 per month, per stall.
I respectfully recommend Mayor and City Council approval of this lease.
~~C~
Michael C. Van Milligen
MCVM/jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
David J. Heiar, Economic Development Director
THE CITY OF
DUB E MEMORANDUM
Masterpiece on the Mississippi
September 24, 2007
TO: Michael Van Milligen, City Manager
FROM: David J. Heiar, Economic Development Director
SUBJECT: United States Postal Service Lease
INTRODUCTION
When the City accepted the Federal Building from the GSA on July 1, 2006, we also
agreed to honor existing lease agreements. The current United States Postal Service
lease expires on October 1, 2007.
BACKGROUND
The current GSA lease with the United States Postal Service has several provisions that
the City does not plan to include in future leases. A specific example of one of these
provisions is janitorial services. Under the current terms, the Lessor is responsible for
cleaning the entire building including the leased spaces. It is the City's intent to provide
these services for the common areas, but not for the leased areas. In addition, current
leases do not require payments for such expenses as utilities, or property taxes, we
intend that future leases will be triple net leases.
Another concern specific to the United States Postal Service lease is that none of the
lobby area was factored into the lease price. Although it is true that the lobby is not
exclusive to the USPS, all postal customers must use the lobby to do any type of
transaction with the USPS. In fact, the USPS has displays and tables set in the lobby for
business purposes. In addition, all United States Postal Service boxes are located in the
main lobby of the Federal Building. Therefore, it is reasonable that a portion of this
space would be included in calculating a lease price.
During the past 15 months, City staff has had discussions and been in negotiations with
Mike Ward, a United States Postal Service property management officer, located in
Denver, Colorado, to modify many of the provisions in the current lease format.
The major provisions of the proposed lease (see attached) are as follows:
• The lobby area is considered joint use. The United States Postal Service
agrees to pay for a portion of the lobby area.
• The City and its tenants will have access to the loading docks.
• The United States Postal Service will be responsible for cleaning their
exclusive space.
• The United States Postal Service will reduce the amount of space needed.
They will no longer lease any space in the basement.
• Although the total exclusive leased space will decrease, the annual lease
cost will increase from $190,418 to $198,500.
• The lease price is fixed for five years with the option to renew for another
5 year term at $218,350 per year.
• The United States Postal Service will reimburse the City for apro-rated
share of property taxes.
• The United States Postal Service will continue to lease 12 parking spaces
along the building. They may wish to amend this portion of the lease when
the carriers are relocated to the West end location. Parking spaces are
calculated at $32.00 per month, per stall. The City will have the right to
temporarily relocate parking if needed during building renovation projects.
The lease price includes utilities.
Iowa law requires that the City hold a public hearing prior to leasing public property for
longer than 3 years. Since this lease is proposed for 5 years with a 5 year option to
renew, the City Council set a public hearing for October 1, 2007.
RECOMMENDATION/ACTION STEP
Following the Public Hearing, I recommend that the City Council approve the proposed
renewal of the lease with the United States Postal Service for space in the Historic
Federal Building as specified in this memo, and as further detailed in the attached
lease.
Attachments
F:IUSERS\DHeiar\Federal Building\Post Office lease Council Memo 2.doc
Prepared by David J Heiar 50 W 13"' Street Dubuque IA 52001 563 589-4393
RESOLUTION NO. 503-07
RESOLUTION APPROVING THE DISPOSAL OF AN INTEREST IN REAL
PROPERTY OWNED BY THE CITY OF DUBUQUE BY LEASE BETWEEN THE CITY
OF DUBUQUE, IOWA AND THE UNITED STATES POSTAL SERVICE
WHEREAS, the City of Dubuque, Iowa (City) owns the real property described as the
Historic Federal Building, located at X350 West 6~' Street in the City of Dubuque, Iowa;
and
WHEREAS, City and United States Postal Service have negotiated a 5 year Lease
Agreement, with a 5 year option, for space in the Historic Federal Building, a copy of which
is attached; and
WHEREAS, the City Council believes it is in the best interests of the City of Dubuque
to approve the Lease Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The Lease Agreement between City and United States Postal Service is
hereby approved and the City Manager is authorized to execute said lease on behalf of the
City of Dubuque.
Passed, approved and adopted this 1st day of October, 2007.
~~
Roy D. Buol, Mayor
Attest
Jeanne F. Schneider, City Clerk
r=:\USERS\DHeiar\Federal Building\Disposing of RBI Estate by Lease USPS.doc
UtttfTED STl~TES
t~QS T11 L SE'f2 VtC",E ~,
Lease
DUBUQUE -MAIN OFFICE (182610-001)
350 W 6TH ST STE 109, DUBUQUE, IA 52001-9998
UNITEDST/.fTES
POST/1L SERVKE_
STATE OF Iowa
COUNTY OF Dubuque
Form of Acknowledgment
for Corporations
Personally appeared before me, a Notary Public in and for the County and State aforesaid,
Roy D. Buo1 and Jeanne F
(Name of authorized officers} signing (ease)
who isJare known to me to be the Mayor and
City Clerk
(titles of officer(s) signing lease)
of the Cites of Dubuque, Iowa and
(Name of Corporation)
to be the same person(s) who executed the foregoing lease, who depose(s) and say that said person(s) know(s) the seal
of the said corporation, that the seal affixed to the above instrument is the seal of said corporation, and that it was affixed,
and that said person(s) signed this lease by the authority of the said corporation, for the purposes set forth, and as said
person(s) own #ree and voluntary act.
Done at Dubuque
this 1 s t
in the County and State aforesaid,
day of October 2007.
NOTARIAL
SEAL
`_ `e~ SUSAN M. WINTER
COMMISSION NO,tg327,~
~~ ' MY COMMISSION ~'P/AES
~ow~ E/14/08
Schneider
Notary ubr~c
My commission expires ~---T U
NOTE: 1f the corporation is without a seal, that portion of the acknowledgment referr~g to a seal should be stricken out, and
on the blank line following this statement should be made; "and that the said corporation has no corporate seal."
UNITED ST/1TES
,~ POST/SL SERVICE Lease
Facility Name/Location
DUBUQUE -MAIN OFFICE (182610-001) County:Dubuque
350 W 6TH ST STE 109, DUBUQUE, IA 52001-9998 Project:E18543
This Lease made and entered into by and between CITY OF DUBUQUE FINANCE DEPT hereinafter called the
Landlord, and the United States Postal Service, hereinafter called the Postal Service:
In consideration of the mutual promises set forth and for other good and valuable consideration, the sufficiency of which
is hereby acknowledged, the parties covenant and agree as follows:
1. The Landlord hereby leases to the Postal Service and the Postal Service leases from the Landlord the following
premises, hereinafter legally described in paragraph 7, in accordance with the terms and conditions described herein
and contained in the `General Conditions to U.S. Postal Service Lease,' attached hereto and made a part hereof.
Upon which is a Three Story, multi-tenant building and which property contains areas, spaces, improvements, and
appurtenances as follows:
AREA SQ. FEET COMMON/JOINT USE AREA SQ. FEET
Net Interior Floor Space 17,034 Jt-use Park & Maneuvering Spac 7,018
Exterior, Platform and Ramp 1,056
Exterior Parking, USPS 2,400
Gross Rentable SF of Building 57,968
USPS Occupies 31.74%
Exterior Parking consists of 12 vehicle spaces, circulation and maneuvering for dock access.
Total Site Area:
27,508.00
2. TO HAVE AND TO HOLD the said premises with their appurtenances for the following term:
FIXED TERM: The term becomes effective October 01, 2007 with an expiration date of September 30, 2012, for a total
of 5 Years.
3. RENTAL: The Postal Service will pay the Landlord an annual rental of: $198,500.00 (One Hundred Ninety Eight
Thousand Five Hundred and 00/100 Dollars) payable in equal installments at the end of each calendar month. Rent
for a part of a month will be prorated.
Rent checks shall be payable to:
CITY OF DUBUQUE FINANCE DEPT
CITY HALL
50 W 13TH STREET
DUBUQUE, IA 52001-4662
unless the Contracting Officer is notified, in writing by Landlord, of any change in payee or address at least sixty (60)
days before the effective date of the change.
February 2004
UNITED ST/~TES
POST/~L SERVICE_ Lease
4. RENEWAL OPTIONS: The Lease may be renewed at the option of the Postal Service, for the following separate and
consecutive terms and at the following annual rentals:
EFFECTIVE DATE
10/01 /2012
EXPIRATION DATE
09/30/2017
PER ANNUM RENTAL
$218,350.00
provided that notice is sent, in writing, to the Landlord at least 60 days before the end of the original lease term and
each renewal term. All other terms and conditions of this Lease will remain the same during any renewal term unless
stated otherwise herein.
5. OTHER PROVISIONS: The following additional provisions, modifications, riders, layouts, and/or forms were agreed
upon prior to execution and made a part hereof:
Utilities Services & Equipment Rider, Maintenance Rider -Landlord Responsibility, Percentage Reimbursement of
Paid Taxes Rider, Mortgagee's Agreement.
6. TERMINATION:
None, except as specified elsewhere in this Lease.
7. LEGAL DESCRIPTION:
A rectangular shaped parcel approximately 259 feet (wide) X 183.5 feet (long), described as Lots 139, 140, 101, 102,
the North 54.5 Feet of Lot 138, the North 54.5 feet of Lot 103, City Lots. The site is located in the North East 1/4 of
the South East 1/4, Section 25, Township 89 North, Range 2 East, Dubuque County, Iowa and contains
approximately 47,546.5 square feet or 1.09 Acres more or less.
February 2004
~~' UNITEDST/JTES Addendum
~AOSTI~L SERVICE
Facility NamelLocation
DUBUQUE -MAIN OFFICE (182610-001) County: Dubuque
350 W 6TH ST STE 109, DUBUQUE, IA 52001-9998 Project: E18543
The parties agree that the City of Dubuque and any contractors employed by the City may have building
access via, the dock leased to the USPS only between the hours of 9:00 A.M. and 1:00 P.M., Monday though
Friday not inclusive of any Federal Holiday, or at other times approved by the Postmaster, upon providing
not less than a 24-hour advance notice to the Postmaster. The City, its employees and/or contractors may
not use any of the dock area for storage of materials beyond the access time herein authorized and the use of
the dock shall not interefere with the USPS mail operations.
In addition to the spaces specifically demised on page 1 under Area and Square Feet, the parties agree that
the USPS shall have joint use of building support and common use areas including but not necessarily
limited to all points of common building ingress and egress, elevator lobbies and hallways on all floors
of the building.
Net Interior Floor Space shown at item 1. on page 1, includes 351 square feet of Second Floor Office
Space for use by the Office of Inspector General.
During periods of building rennovation/construction, the City of Dubuque may, for periods not to exceed
a cummulative total of 60-days in any calendar year, provide alternative parking in the lot located
immediately West of this building at the corner of 5th Street and Bluff Street. There will be no
adjustment in rent, nor will the USPS incur any additional parking expense for these periods. Not less
than 72 hours advance notice to the Postmaster is required to facilitate USPS move to the altenate parking
location.
February 2004
~'' UNITED ST/~TES Lease
~POSTIIL SERVICE_
EXECUTED BY LANDLORD this 1st day of October 2007
CORPORATION
By executing this Lease, Landlord certifies that Landlord is not a USPS employee or contract employee (or an
immediate family member of either), or a business organization substantially owned or controlled by a USPS employee
or contract employee (or an immediate family member of either).
Name of Corp ti : Ci of Dubuque
~~
Name itle:, oy~~ ayor Name & Title:
me & Title: Jeanne Schneider, City Clerk Name & Title:
Landlord's Address: CITY HALL 50 W 13TH STREET
DUBUQUE, IA 52001-4662
Telephone No.: (563) 589 - 4121 Fax No.: (563) 589 - 0890 Tax ID: ~-XX-4596
E-mail Address: jschne.id@cityofdubuque.org
Witness Witness
a. Where the Landlord is a corporation, leases and lease agreements entered into must have the corporate seal
affixed, or in place thereof, the statement that the corporation has no seal.
b. Where the Landlord is a corporation, municipal corporation, non-profit organization, or fraternal order or society, the
Lease must be accompanied by documentary evidence affirming the authority of the agent, or agents, to execute
the Lease to bind the corporation, municipal corporation, non-profit organization, or fratemal order or society for
which he (or they) purports to act. The usual evidence required to establish such authority is in the form of extracts
from the articles of incorporation, or bylaws, or the minutes of the board of directors duly certified by the custodian
of such records, under the corporate seal. Such resolutions, when required, must contain the essential stipulations
embodied in the Lease. The names and official titles of the officers who are authorized to sign the Lease must
appear in the document.
c. Any notice to Landlord provided under this Lease or under any law or regulation must be in writing and submitted to
Landlord at the address specified above, or at an address that Landlord has otherwise appropriately directed in
writing. Any notice to the Postal Service provided under this Lease or under any law or regulation must be in writing
and submitted to "Contracting Officer, U.S. Postal Service" at the address specified below, or at an address that the
Postal Service has otherwise directed in writing.
ACCEPTANCE BY THE POSTAL SERVICE
Vance Bennett
Date Contracting Officer Signature of Contracting Officer
Western FSO 160 INVERNESS DRIVE WEST SUITE 400, ENGLEWOOD, CO 80112-5005
Address of Contracting Officer
February 2004
4
~+ UNITEDSTLITES
POST/1L SERVICE_
STATE OF
COUNTY OF
Form of Acknowledgment
for Corporations
Personally appeared before me, a Notary Public in and for the County and State aforesaid,
who is/are known to me to be the
of the
(Name of Corporation)
and
(titles of officer(s) signing lease)
and
to be the same person(s) who executed the foregoing lease, who depose(s) and say that said person(s) know(s) the seal
of the said corporation, that the seal affixed to the above instrument is the seal of said corporation, and that it was affixed,
and that said person(s) signed this lease by the authority of the said corporation, for the purposes set forth, and as said
person(s) own free and voluntary act.
Done at , in the County and State aforesaid,
this
day of ,
NOTARIAL
SEAL
Notary Public
My commission expires
NOTE: If the corporation is without a seal, that portion of the acknowledgment referring to a seal should be stricken out, and
on the blank line following this statement should be made: "and that the said corporation has no corporate seal."
and
(Name of authorized officer(s) signing lease)
REACKC (Nov s7, v2.o, P)
UNITED ST4TES
POST/~L SERVICE
STATE OF
COUNTY OF
Form of Acknowledgment
for Contracting Officer
Personally appeared before me, a Notary Public in and for the County and State aforesaid,
Vance Bennett
(name of Contracting Officer)
known to be a Contracting Officer of the United States Postal Service, and whose address is:
Western FSO
160 INVERNESS DRIVE WEST SUITE 400
ENGLEWOOD, CO 80112-5005
and to be the same person who executed the foregoing Lease, who deposes and says that (s)he signed his/her name
thereto by authority of said Postal Service, for the purposes set forth, and as his/her own free and voluntary act.
Witness my hand and notarial seal, in the County and State aforesaid, this day of
20
NOTARIAL
SEAL
Notary Public
My commission expires
February 2004
UNITED ST/~TES
POST/1L SERVICE.
1. CHOICE OF LAW
This Lease shall be governed by federal law.
2. RECORDING
General Conditions to USPS Lease
This Lease or a memorandum thereof, with the commencement date and all other necessary dates inserted, must be recorded by the Landlord at its
sole expense. Such expense includes all fees required for or incident to recording. If the Landlord fails to record the Lease, or a memorandum thereof,
the Postal Service may record the Lease or a memorandum thereof, and deduct all costs associated therewith from future rents.
3. MORTGAGEE'S AGREEMENT
If there is now or will be a mortgage on the property which is or will be recorded prior to the recording of the Lease, the Landlord must notify the
contracting officer of the facts concerning such mortgage and, unless in his sole discretion the contracting officer waives the requirement, the Landlord
must furnish a Mortgagee's Agreement, which will consent to this Lease and shall provide that, in the event of foreclosure, mortgagee, successors,
and assigns shall cause such foreclosures to be subject to the Lease.
4. ASSIGNMENTS
a. The terms and provisions of this Lease and the conditions herein are binding on the Landlord and the Postal Service, and all heirs, executors,
administrators, successors, and assigns.
b. If this contract providesfor payments aggregating $10,000 or more, claims for monies due or to become due from the Postal Service under it may
be assigned to a bank, trust company, or other financing institution, including any federal lending agency, and may thereafter be further assigned and
reassigned to any such institution. Any assignment or reassignment must cover all amounts payable and must not be made to more than one party,
except that assignment or reassignment may be made to one party as agent or trustee for two or more parties participating in financing this contract.
No assignment or reassignment will be recognized as valid and binding upon the Postal Service unless a written notice of the assignment or
reassignment, together with a true copy of the instrument of assignment, is filed with:
1. the contracting officer; and
2. the surety or sureties upon any bond.
c. Assignment of this contract or any interest in this contract other than in accordance with the provisions of this clause will be grounds for termination
of the contract for default at the option of the Postal Service.
d. Nothing contained herein shall be construed so as to prohibit transfer of ownership of the demised premises, provided that:
1. such transfer is subject to this Lease agreement; and
2. both the original Landlord and the successor Landlord execute the standard Certifrcate of Transferof Tdle to Leased Property and Lease
Assignment and Assumption form to be provided by the USPS Contracting Officer; and in the case of new leased space projects, the lease may only
be assigned or ownership of the property transferred following commencement of the fixed term, unless prior written consent is obtained from the
Postal Service.
5. APPLICABLE CODES AND ORDINANCES
The Landlord, as part of the rental consideration, agrees to comply with all codes and ordinances applicable to the ownership and operation of the
building in which the rented space is situated and to obtain all necessary permits and related items at no cost to the Postal Service. When the Postal
Service or one of its contractors (other than the Landlord) is performing work at the premises, the Postal Service will be responsible for obtaining all
necessary and applicable permits, related items, and associated costs.
6. SUBLEASE
The Postal Service may sublet all or any part of the premises or assign this lease but shall not be relieved from any obligation under this lease by
reason of any subletting or assignment.
7. RESTORATION AND ALTERATIONS
a. Upon written notification by Landlord within 30 days of the expiration or termination of this Lease, the Postal Service shall restore the premises to a
"broom clean" and usable condition, excepting the following: reasonable and ordinary wear and tear; and damages by the elements or by
circumstances over which the Postal Service has no control. If Landlord provides the above notice, the Postal Service and Landlord shall negotiate
and reach agreement on necessary items of restoration and the reasonable cost for restoration; the Postal Service shall pay Landlord this agreed-
upon amount and shall have no further restoration duties under this Lease.
b. The Postal Service shall have the right to make alterations, attach fixtures and erect additions, structures or signs in or upon the premises hereby
leased (provided such alterations, additions, structures, or signs shall not be detrimental to or inconsistent with the rights granted to other tenants on
the property or in the building in which said premises are located); which fixtures, additions o- structures so placed in, upon or attached to the said
premises shall be and remain the property of the Postal Service and may be removed or otherwise disposed of by the Postal Service.
gencona vct zuuti oc-1
UN/TEDST/,lTES General Conditions to USPS Lease
POST/~L SERVICE.
8. CLAIMS AND DISPUTES
a. This contract is subject to the Contract Disputes Act of 1978 (41 U.S.C. 601-613) ("the Act").
b. Except as provided in the Act, all disputes arising under or relating to this contract must be resolved under this clause.
c. "Claim," as used in this clause, means a written demand or written assertion by one of the contracting parties seeking, as a matter of right, the
payment of money in a sum certain, the adjustment or interpretation of contract terms, or other relief arising under or relating to this contract.
However, a written demand orwritten assertion by the Landlord seeking the payment of money exceeding $100,000 is not a claim under the Act until
certified as required by subparagraph d below. A voucher, invoice, or other routine request for payment that is not in dispute when submitted is not a
claim under the Act. The submission may be converted to a claim under the Act by complying with the submission and certification requirements of
this clause, if it is disputed either as to liability or amount or is not acted upon in a reasonable time.
d. A c-aim by the Landlord must be made in writing and submitted to the contracting officer for a written decision. A claim by the Postal Service
against the Landlord is subject to a written decision by the contracting officer. For Landlord claims exceeding $100,000, the Landlord must submit
with the claim the following certification:
"I certify that the claim is made in good faith, that the supporting data are accurate and complete to the best of my knowledge and belief, that
the amount requested accurately reflects the contract adjustment for which the Landlord believes the Postal Service is liable, and that I am
duly authorized to certify the claim on behalf of the Landlord."
The certification may be executed by any person duly authorized to bind the Landlord with respect to the claim
e. For Landlord claims of $100,000 or less, the contracting officer must, if requested in writing by the Landlord, render a decision within 60 days of the
request. For Landlord-certified claims over $100,000, the contracting officer must, within 60 days, decide the claim or notify the Landlord of the date
by which the decision will be made.
f. The contracting officer's decision is final unless the Landlord appeals or files a suit as provided in the Act
g. When a claim is submitted by or against a Landlord, the parties by mutual consent may agree to use an alternative dispute resolution (ADR)
process to assist in resolving the claim. A certification as described in subparagraph d of this clause must be provided for any claim, regardless of
dollar amount, before ADR is used.
h. The Postal Service will pay interest on the amount found due and unpaid from
1. the date the contracting officer receives the claim (properly certified if required); or
2. the date payment otherwise would be due, if that date is later, until the date of payment.
Simple interest on claims will be paid at a rate determined in accordance with the Act
j. The Landlord must proceed diligently with performance of this contract, pending final resolution of any request for relief, claim, appeal, or action
arising under the contract, and comply with any decision of the contracting officer.
9. HAZARDOUSITOXIC CONDITIONS CLAUSE
"Asbestos containing building material" (ACBM) means any material containing more than 1 % asbestos as determined by using the method specified
in 40 CFR Part 763, Subpart E, Appendix E. "Friable asbestos material" means any ACBM that when dry, can be crumbled, pulverized, or reduced to
powder by hand pressure.
The Landlord must identify and disclose the presence, location and quantity of all ACBM or presumed asbestos containing material (PACM) which
includes all thermal system insulation, sprayed on and troweled on surfacing materials, and asphalt and vinyl flooring material unless such material
has been tested and identified as non-ACBM. The Landlord agrees to disclose, to the best of its knowledge, any information concerning the presence
of lead-based paint, radon above 4 pCi/L, and lead piping or solder in drinking water systems in the building, to the Postal Service.
Sites cannot have any contaminated soil or water above applicable federal, state or local action levels or undisclosed underground storage tanks.
Unless due to the act or negligence of the Postal Service, 'rf contaminated soil, water, underground storage tanks or piping or friable asbestos material
or any other hazardousttoxic materials or substances as defined by applicable Local, State or Federal law are subsequently identified on fie
premises, the Landlord agrees to remove such materials or substances upon notification by the Postal Service at Landlord's sole cost and expense in
accordance with EPA andlor State guidelines; prior to accomplishing this task, Landlord must seek written approval by the USPS Contracting Officer
of the contractor and scope of work, such approval not to be unreasonably withheld. If ACBM is subsequently found in the building which reasonably
should have been determined, identified, or known to the Landlord, the Landlord agrees to conduct, at Landlord's sole expense, an asbestos survey
pursuant to the standards of the Asbestos Hazard Emergency Response Act (AHERA), establish an Operations and Maintenance (O&M) plan for
asbestos management, and provide the survey report and plan to the Postal Service. If the Landlord fails to remove any friable asbestos or
hazardousttoxic materials or substances, or fails to complete an AHERA asbestos survey and O&M plan, the Postal Service has the right to
accomplish the work and deduct the cost plus administrative costs, from future rent payments or recover these costs from Landlord by other means,
or may, at its sole option, cancel this Lease. In addition, the Postal Service may proportionally abate the rent for any period the premises, or any part
thereof, are determined by the Postal Service to have been rendered unavailable to it by reason of such condition.
gencona c~ct zuuti cc-2
UNITED ST/.ITES
POSTdL SERVICE.
General Conditions to USPS Lease
The Landlord hereby indemnifies and holds harmless the Postal Service and its officers, agents, representatives, and employees from all claims, loss,
damage, actions, causes of action, expense, fees andlor liability resulting from, brought for, or on account of any violation of this clause.
The remainder of this clause applies if this Lease is for premises not previously occupied by the Postal Service.
By execution of this Lease the Landlord certifies:
a. that the property and improvements are free of all contamination from petroleum products or any hazardous/toxic or unhealthy materials or
substances, including f ruble asbestos materials, as defined by applicable State or Federal law;
b. that there are no undisclosed underground storage tanks or associated piping, ACBM, radon, lead-based paint, or lead piping or solder in drinking
water systems, on the property; and
c. it has not received, nor is it aware of, any notification or other communication from any governmental or regulatory entity concerning any
environmental condition, or violation or potential violation of any local, state, or federal environmental statute or regulation, existing at or adjacent to
the property.
10. FACILITIES NONDISCRIMINATION
a. By executing this Lease, the Landlord certifies that it does not and will not maintain or provide for its employees any segregated facilities at any of
its establishments, and that it does not and will not permit its employees to perform services at any location under its control where segregated
facilities are maintained.
b. The Landlord will insert this clause in all contracts or purchase orders under this Lease unless exempted by Secretary of Labor rules, regulations,
or orders issued under Executive Order 11246.
11. CLAUSES REQUIRED TO IMPLEMENT POLICIES, STATUTES, OR EXECUTIVE ORDERS
The following clauses are incorporated in this Lease by reference. The text of incorporated terms may be found in the Postal Service's Supplying
Principles and Practices, accessible atwww.usos.com/oublications.
Clause 1-5, Gratuities or Gifts (March 2006)
Clause 1-6, Contingent Fees (March 2006)
Clause 9-3, Davis-BaconAct(March 2006)'
Clause 9-7, Equa/Opportunity(March 2006
Clause 9-13, Affirmative Action for Handicapped Workers (March 2006)3
Clause 9-14, Affirmative Action for Disabled Veterans and Veterans of the
Clause B-25, Advertising of ContractAwarrJs (March 2006)
Note: For purposes of applying the above standard clauses to this Lease,
"Landlord," and the term "contract" is synonymous with "Lease."
Vietnam Era (March 2006)°
the terms "supplier," "contractor," and "lessor" are synonymous with
' For premises with net interior space in excess of 6,500 SF and involving construction work over $2,000.
z For leases aggregating payments of $10,000 or more.
3 For leases aggregating payments of $10,000 or more.
For leases aggregating payments of $25,000 or more.
yenwnu vc~ cvvo cc-3
UNITEDST/~TES Tax Rider
r~POST/lLSERVICE. Percentage Reimbursement of Paid Taxes
All notices required under this paragraph must be delivered or mailed, using certified mail with a return receipt or
other verified method of delivery, within ten (10) days from the receipt thereof by the Landlord to:
CONTRACTING OFFICER
Western FSO
160 INVERNESS DRIVE WEST SUITE 400
ENGLEWOOD, CO 80112-5005
or to such other office as the Postal Service may later direct in writing.
e. The Postal Service may contest the validity of any valuation for Real Property Tax purposes or of any levy or
assessment of any Real Property Taxes by appropriate proceedings either in the name of the Postal Service or of
the Landlord or in the names of both. Notwithstanding any contest of valuation, Property Tax Rate, levy or
assessment, Landlord must pay under protest the Real Property Taxes involved when requested to do so by the
Postal Service. The Landlord, upon reasonable notice and request by the Postal Service, must join in any
proceedings, must cooperate with the Postal Service, and must execute and file any documents or pleadings as the
Postal Service may require for such proceeding, provided the Landlord is reasonably satisfied that the facts and
data contained therein are accurate. Landlord will not be responsible for the payment of penalties, costs, or legal
expenses in connection with any protest or appeal proceedings brought by the Postal Service, and the Postal
Service will indemnify and save harmless the Landlord from any such penalties, costs, or expenses. Landlord
hereby authorizes the Postal Service as its agent to represent its interest in any appeal or protest proceeding
authorized under this paragraph.
Landlord shall promptly notify the Postal Service of any appeal or other action it takes or initiates to adjust any
valuation of the property, Property Tax Rate, or lery or assessment of Real Property Taxes. The Postal Service is
entitled to Tenant's Share of any and all monies obtained through such actions or any other refunds or remissions
of Real Property Taxes paid in any year subsequent to the commencement of the lease. If any such refunded or
remitted monies are paid or delivered to Landlord, Landlord must immediately forward them to the Postal Service. If
Landlord is informed that he is entitled to a refund or remission of monies paid as Real Property Taxes upon the
submission of an application, Landlord will promptly make and file such application, and upon receipt of such refund
or remission, immediately forward it to the Postal Service. The Postal Service reserves the right to offset Tenant's
Share of refund and remission payments not so obtained or forwarded, against rental or other payments due the
Landlord.
g. The Postal Service is entitled to the benefits of all tax exemptions or abatements authorized by law or regulation
that may be available with respect to the demised premises. Landlord shall take all necessary steps to obtain such
exemptions or abatements. The Postal Service reserves the right to offset against rental or other payments due the
Landlord the amount or value of any abatement or exemption that would have been available if Landlord had
properly applied for it, and any amount for which the Postal Service is not to be responsible under paragraph (d),
above.
h. Nothing herein contained shall operate to waive or deprive the Postal Service of any rights, privileges or immunities
it enjoys under law.
i. The Tenant's Share, shown in paragraph (c) above, is based on the percentage of the building that the Postal
Service occupies in relation to all of the leasable areas, and was computed as follows:
USPS occupies 31.74% of the building as shown on page 1 of the lease.
j. In the event that the site is enlarged or decreased, or the building is altered in any way that may affect the
assessment value of the total property, the percentage shown in paragraph c. above, shall be recomputed to reflect
the correct proportion of the value of the demised premises to the relative value of the total property.
February 2004 T-2
UNITED ST/STES
;; ~AOST/1L SERVICE.
Maintenance Rider
Landlord Responsibility
1. The Landlord shall, except as otherwise specified herein and except for damage resulting from the act or negligence
of Postal Service agents or employees, maintain the demised premises, including the building and any and all
equipment, fixtures, systems, and appurtenances, whether severable or non-severable, furnished by the Landlord
under this Lease, in good repair and tenantable condition, during the continuance of the Lease. Landlord's duties
include repair and replacement as necessary.
~~
• Landlord will be responsible for regular cleaning of
any other gutters, downspouts, troughs, scuppers, roof drains, etc.
For the purpose of so maintaining said premises and property, the Landlord may, at reasonable times, and upon
reasonable notice to the facility manager, enter and inspect the same and make any necessary repairs thereto.
2. Landlord is responsible for inspection, prevention and eradication of termites and any other wood-eating insects and
for repairs of any damage resulting therefrom during the continuance of the Lease.
3. Landlord shall paint all interior and exterior previously painted surfaces as follows: no later than six (6) months
following the start of the lease, and at least once every five (5) years during the continuance of the lease unless
required more often because of damage from fire or other casualty, or unless the time period is specifically modified
in writing by the Contracting Officer. Landlord is required to apply only one coat of paint. USPS will be responsible
for cost of additional coats of paint, including application costs. USPS will be responsible for movi ng furniture and
equipment away from walls as required.
4. Any heating system furnished by Landlord must be properly sized for the facility, must be in good working order,
and must be maintained and, if necessary, replaced by Landlord to ensure proper operation during the continuance
of the Lease and in accordance with this Maintenance Rider; such system must be capable of providing a uniform
temperature of at least 65 degrees Fahrenheit (ti5°F.) in all enclosed portions of the demised premises (excluding
the rear vestibule) at all times. Regardless of whether Landlord is required by the Lease to provide fuel for a
heating system, any investigative or remediation cost associated with a release of fuel from the system, including
any fuel tank, shall be the responsibility of the Landlord, unless the release is caused by the act or negligence of the
Postal Service or its agents. The Postal Service shall be responsible for regular replacement of filters.
Boilers (heating and hot water supply) and unfired pressure vessels provided by the Landlord as part of the leased
premises shall be maintained and, if necessary, replaced by the Landlord in accordance with ASME Boiler and
Pressure Vessel Code, Sections IV, VI, and VIII; National Fire Prevention Association (NFPA}70, National Electric
Code; and/or ASME Safety Code No. CSD-1, Controls and Safety Devises for Automatically Fired Boilers; ASME
A18.1, Safety Standard for Platform Lifts and Chairlifts; NFPA-54, National Fuel Gas Code; and NFPA-31, Oil
Burning Equipment Code, as applicable, or as required by local ordinances. Current safety certificates issued by an
organization recognized by the National Board of Boiler and Pressure Vessel Inspectors or a federal, state or
municipal authority which has adopted the American National Standard Institute/American Society of Mechanical
Engineers (ASME) Boiler and Vessel Code, must be provided by the Landlord for boilers and unfired pressure
vessels. In the event local jurisdictions do not require periodic inspection of such equipment, the Postal Service
shall have the right to conduct inspections in accordance with the aforesaid codes, and may issue safety
certificates, as appropriate.
5. Any elevators, escalators and dumbwaiters provided by the Landlord as part of the leased premises shall be
maintained, and, if necessary, replaced by the Landlord during the continuance of the Lease in accordance with
ASME A17.1, Safety Code for Elevators, Escalators, Dumbwaiters, and Moving Walks; ASME A17.2, Elevator
Inspectors Manual; ASME A17.3 Safety Code for Existing Elevators and Escalators; ASME A17.4, Emergency
Evacuation Procedures for Elevators; and ASME A17.5, Elevator and Escalator Electrical Equipment. Landlord
must ensure that current safety certificates for elevators, dumbwaiters and escalators are issued by an organization
authorized to inspect in accordance with the ANSI/ASME Code for Elevators, Dumbwaiters and Escalators or
appropriate federal, state or municipal authority. In the event local jurisdictions do not require periodic inspection of
such equipment, the Postal Service shall have the right to conduct inspections in accordance with the aforesaid
codes, and may issue safety certificates, as appropriate.
Landlordm ainl 0612006.
uN~rEn srarEs
AOSr/JL SERVICE.
Maintenance Rider
Landlord Responsibility
6. Any air-conditioning equipment furnished by Landlord must be properly sized for the facility, must be in good
working order, and must be maintained and, if necessary, replaced by Landlord to ensure proper operation during
the continuance of the Lease and in accordance with this Maintenance Rider; air-conditioning must be capable of
providing a uniform temperature of no greater than 78 degrees Fahrenheit (78°F.) in all enclosed portions of the
demised premises at all times. Landlord shall be responsible for servicing of the air-conditioning equipment during
the continuance of the Lease, including, refrigerant as required for proper operation of the equipment. The Postal
Service shall be responsible for regular replacement of filters.
7. Any electrical/power system furnished by Landlord must be properly sized for the facility, must be in good working
order, and must be maintained and, if necessary, replaced by Landlord to ensure proper operation during the
continuance of the Lease and in accordance with this Maintenance Rider.
8. Any wiring, including, but not limited to, wiring for the Electronic Security and Surveillance Equipment (ESS), Closed
Circuit Television (CCTV), Very Small Aperture Terminal (VSAT), Criminal Investigation System (CIS), Intrusion
Detection System (IDS), etc., installed by the Landlord shall be maintained, and if necessary, replaced by the
Landlord during the continuance of the Lease. However, the Landlord shall not attempt any maintenance of, or
repair of, or interfere with, the actual security, telephone, or telecommunications equipment, such as cameras,
consoles, monitors, satellite dishes, telephone handsets, and Point-of-Service (POS) equipment.
9. Whether public or private water or sewer systems are provided, said systems are to be maintained and replaced by
the Landlord during the continuance of the Lease, including any inspections that may be required.
10. If the demised premises or any portion thereof are damaged or destroyed by fire or other casualty, Acts of God, of a
public enemy, riot or insurrection, vandalism, or are otherwise determined by the Postal Service to be unfit for use
and occupancy, or whenever there is a need for maintenance, repair, or replacement which is the Landlord's
obligation under this Maintenance Rider, the Postal Service will require the Landlord to rebuild or repair the
premises as necessary to restore them to tenantable condition to the satisfaction of the Postal Service. The Postal
Service will, except in emergencies, provide the Landlord with written notice stating a reasonable time period for
completion of all necessary repairs. (A copy of any such notice shall be sent to the Landlord's mortgagee and any
assignee of monies due or to become due under this Lease whose names and addresses have been furnished to
the Postal Service by the Landlord. Failure to give such written notice to the Landlord or to the mortgagee or
assignee shall not affect the Postal Service's rights to recover expended costs under this provision, provided that
the costs expended by the Postal Service are reasonable in amount.) The Postal Service, acting through the
Contracting Officer, may proportionately abate the rent for any period the premises, or any part thereof, are
determined by the Postal Service to have been rendered untenantable, or unfit for use and occupancy, by reason of
such condition.
If the Landlord (or the mortgagee or assignee, on behalf of the Landlord) fails to prosecute the work with such
diligence as will ensure its completion within the time specified in the notice (or any extension thereof as may be
granted at the sole discretion of the Postal Service), or fails to complete the work within said time, the Postal
Service shall have the right to perform the work (by contract or otherwise), and withhold the cost plus any
administrative cost and/or interest, from rental payments due or to become due under this Lease. Alternatively, the
Contracting Officer may, if the demised premises are determined to be untenantable or unfit for use or occupancy,
with reasonable discretion, cancel this Lease in its entirety, without liability.
The remedies provided in this section are non-exclusive and are in addition to any remedies available to the Postal
Service under applicable law.
11. The Landlord must:
a. comply with applicable Occupational Safety and Health Standards, title 29 Code of Federal Regulations
(CFR) (including but not limited to Parts 1910 and 1926), promulgated pursuant to the authority of the
Occupational Safety and Health Act of 1970 (OSHA); and
La nd t o ni m a f n 1 06!2006.
unrtreosr~rFs
~AQST/1L SERVICE.
Maintenance Rider
Landlord Responsibility
b. comply with any other applicable federal, state, or local regulation governing workplace safety to the extent
they are not in conflict with a; and
c. take all other proper precautions to protect the health and safety of:
(1) any laborer or mechanic employed by the Landlord in performance of this agreement; and
(2) Postal Service employees; and
(3) the public.
The Landlord must include this clause in all subcontracts hereunder and require its inclusion in all subcontracts of a
lower tier. The term "Landlord" as used in this clause in any subcontract must be deemed to refer to the
subcontractor.
La n tl I o rtl m a I n 1 06120 D6.
UN/TEDSTLITES Tax Rider
~POST4LSERVICE_ Percentage Reimbursement of Paid Taxes
Facility Name/Location
DUBUQUE -MAIN OFFICE (182610-001) County: Dubuque
350 W 6TH ST STE 109, DUBUQUE, IA 52001-9998 Project: E18543
Assessor's Parcel Number: 1025211001
a. Definitions
Ad Valorem means according to the value of the property.
Property Tax Rate is an amount expressed as dollars and cents per $100.00 or per $1,000.00 of assessed value
or as mills per $1.00 of assessed value as set by authorities for tax jurisdictions, which is applied to the value of
the land, improvements on the land, or both, to determine some kinds of Real Property Taxes.
Real Property Taxes, as used in this clause, shall mean those taxes, including Ad Valorem taxes, special
assessments, fees and charges, that are assessed against any or all taxable real property appearing on the
assessment roll or list in a taxing authority's jurisdiction and that are identified by a taxing authority for the support
of government activities within its jurisdiction, whether such activities are general or specifically identified. Real
Property Taxes also include administrative charges or fees imposed by a taxing authority, including those for the
support of its assessment and collection activities.
b. The Landlord agrees to pay all taxes of any kind, including Real Property Taxes, and fees of every kind and nature
levied on the demised premises.
c. The Postal Service will reimburse Landlord 31.74 % ("Tenant's Share") of the total paid Real Property Taxes, as
defined above, only under the following terms:
1. Landlord may submit not more than one request for reimbursement in any calendar year, irrespective of the
number of taxing authorities included; and reimbursement will be made not more than one time annually by
the Postal Service.
2. No reimbursement will be made for fines, penalties, interest or costs imposed for late payment.
3. Reimbursement will be made only for net paid taxes, less Tenant's Share of the maximum discount allowed
by the taxing authority for prompt or early payment, regardless of whether Landlord actually received any such
discount.
4. Reimbursement will be made only for taxes levied for periods of time within the term of this lease.
5. In order to qualify for reimbursement, the tax bill as issued by the taxing authority must include the demised
premises.
6. Landlord must provide copies of the front and back of the complete tax bill issued by the taxing
authority, along with satisfactory proof of payment. Satisfactory proof of payment shall be (i) a receipt for
payment shown on the face of the tax bill, (ii) a copy of the front and back of the canceled payment check, (iii)
a statement from a lender verifying payment of the tax, or (iv) other documentation satisfactory to the Postal
Service.
7. Incomplete or improper requests for reimbursement will be returned to Landlord without payment.
8. Landlord agrees to submit a request for reimbursement of taxes within 18 months after the close of
the tax year. In the event Landlord fails to submit its request for reimbursement within that time
period, the USPS is not required to reimburse paid taxes.
d. The Landlord must promptly furnish to the Postal Service copies of all notices that may affect the valuation of the
demised premises for Real Property Tax purposes or that may affect the levy or assessment of Real Property
Taxes thereon. If Landlord does not timely furnish such notices relating to valuation changes or the levy or
assessment of taxes or fails to meet any legal prerequisite for appeal and the Postal Service loses the right to
contest the validity or the amount of the taxes, then the Postal Service shall be responsible to reimburse Landlord
for only 75% of Tenant's Share of the reimbursable taxes due for the year involved.
February 2004 T-1
UNITEDST/1TES Tax Rider
~POSTdLSERVICE_ Percentage Reimbursement of Paid Taxes
All notices required under this paragraph must be delivered or mailed, using certified mail with a return receipt or
other verified method of delivery, within ten (10) days from the receipt thereof by the Landlord to:
CONTRACTING OFFICER
Western FSO
160 INVERNESS DRIVE WEST SUITE 400
ENGLEWOOD, CO 80112-5005
or to such other office as the Postal Service may later direct in writing.
The Postal Service may contest the validity of any valuation for Real Property Tax purposes or of any levy or
assessment of any Real Property Taxes by appropriate proceedings either in the name of the Postal Service or of
the Landlord or in the names of both. Notwithstanding any contest of valuation, Property Tax Rate, levy or
assessment, Landlord must pay under protest the Real Property Taxes involved when requested to do so by the
Postal Service. The Landlord, upon reasonable notice and request by the Postal Service, must join in any
proceedings, must cooperate with the Postal Service, and must execute and file any documents or pleadings as the
Postal Service may require for such proceeding, provided the Landlord is reasonably satisfied that the facts and
data contained therein are accurate. Landlord will not be responsible for the payment of penalties, costs, or legal
expenses in connection with any protest or appeal proceedings brought by the Postal Service, and the Postal
Service will indemnify and save harmless the Landlord from any such penalties, costs, or expenses. Landlord
hereby authorizes the Postal Service as its agent to represent its interest in any appeal or protest proceeding
authorized under this paragraph.
Landlord shall promptly notify the Postal Service of any appeal or other action it takes or initiates to adjust any
valuation of the property, Property Tax Rate, or levy or assessment of Real Property Taxes. The Postal Service is
entitled to Tenant's Share of any and all monies obtained through such actions or any other refunds or remissions
of Real Property Taxes paid in any year subsequent to the commencement of the lease. If any such refunded or
remitted monies are paid or delivered to Landlord, Landlord must immediately forward them to the Postal Service. If
Landlord is informed that he is entitled to a refund or remission of monies paid as Real Property Taxes upon the
submission of an application, Landlord will promptly make and file such application, and upon receipt of such refund
or remission, immediately forward it to the Postal Service. The Postal Service reserves the right to offset Tenant's
Share of refund and remission payments not so obtained or forwarded, against rental or other payments due the
Landlord.
g. The Postal Service is entitled to the benefits of all tax exemptions or abatements authorized by law or regulation
that may be available with respect to the demised premises. Landlord shall take all necessary steps to obtain such
exemptions or abatements. The Postal Service reserves the right to offset against rental or other payments due the
Landlord the amount or value of any abatement or exemption that would have been available if Landlord had
properly applied for it, and any amount for which the Postal Service is not to be responsible under paragraph (d),
above.
h. Nothing herein contained shall operate to waive or deprive the Postal Service of any rights, privileges or immunities
it enjoys under law.
i. The Tenant's Share, shown in paragraph (c) above, is based on the percentage of the building that the Postal
Service occupies in relation to all of the leasable areas, and was computed as follows:
USPS occupies 31.74% of the building as shown on page 1 of the lease.
j. In the event that the site is enlarged or decreased, or the building is altered in any way that may affect the
assessment value of the total property, the percentage shown in paragraph c. above, shall be recomputed to reflect
the correct proportion of the value of the demised premises to the relative value of the total property.
February 2004 I -1
UN/TEDST/~TES
AOSTLI L SERVICE.
Facility Name/Location
DUBUQUE -MAIN OFFICE (182610-001)
350 W 6TH ST STE 109, DUBUQUE, IA 52001-9998
1. HEAT
Utilities, Services, & Equipment Rider
County: Dubuque
Project: E18543
Landlord must furnish heating system in good working order, together with all fuel required for proper
operation of the system, in accordance with the Maintenance Rider, during the continuance of the Lease.
Any investigative or remediation cost associated with a release of fuel from the system, including any fuel
tank, shall be the responsibility of the Landlord, unless the release is caused by the act or negligence of the
Postal Service or its agents.
2. AIR CONDITIONING
Landlord must furnish air-conditioning equipment in good working order, together with all power required for
proper operation of the equipment, in accordance with the Maintenance Rider, during the continuance of the
Lease.
3. ELECTRICITY
Landlord must furnish an electrical system in good working order, in accordance with the Maintenance Rider,
and pay for all recurring electric bills, during the continuance of the Lease.
4. LIGHT
Landlord must provide light fixtures in good working order, in accordance with the Maintenance Rider, during
the continuance of the lease. Landlord is not responsible for replacement of light bulbs.
February 2004 U-1
~~' UNITED ST/1TES
~POST4L SERVICE
Utilities, Services, & Equipment Rider
5. WATER
Landlord must furnish a potable water system in good working order, in accordance with the Maintenance
Rider, and pay for all recurring water bills, during the continuance of the Lease.
SEWER
Landlord must furnish a sewer system in good working order, in accordance with the Maintenance Rider, and
pay for all recurring sewer bills, during the continuance of the Lease.
7. TRASH
The Postal Service agrees to furnish and pay for all trash removal for the demised premises during the
continuance of the Lease.
8. SNOW
The Landlord agrees to furnish and pay for the snow removal from the roof and the sidewalks, driveway,
parking and maneuvering areas, and any other areas providing access to the postal facility for use by postal
employees, contractors, or the public (including, but not limited to, stairs, handicap access ramps, carrier
ramps, etc.) during the continuance of the Lease.
February 2004 U"2
f
UNITED ST/JTES
~POST/~! SERVICE
Facility Name/Location
DUBUQUE -MAIN OFFICE (182610-001)
350 W 6TH ST STE 109, DUBUQUE, IA 52001-9998
County: Dubuque
Project: E18543
The undersigned, Holder(s) of a mortgage (or similar encumbrance, such as a Deed of Trust), in the sum of
on the property situated at:
hereby consent(s) to the leasing of said property to the U.S. Postal Service and agree(s) for itself, its successors,
executors, administrators, and assigns that in the event it should become necessary to:
a) foreclose said mortgage or similar encumbrance, the Mortgagee will cause the sale of said premises to be made
subject to said lease; or, '
b) take any other action terminating the mortgage or transferring title, the Mortgagee will cause such action to be
made subject to said lease.
MORTGAGEE
Name of Mortgage Company
By:
Witness Signature of Mortgagee's Officer
,, ~
~ ~ Its:
•~ Title of Mortgagee's Officer
U
r
~ Street Address
City, State and ZIP+4
County, State of
this day of
Subscribed and Sworn to before me, a notary public, in and for
Notary Public
My commission expires
February 2004
M-1
Mortgagee's Agreement
(To be executed and attached to lease)