Federal Building Lease - Iowa State University Copyright 2014
City of Dubuque Items to be set for Public Hearing # 2.
ITEM TITLE: Federal Building Lease - Iowa State University
SUMMARY: City Manager recommending that a public hearing be set for September
21 , 2015 on the proposal to lease space in the Federal Building to Iowa
State University.
RESOLUTION Intent to dispose of an interest in real property owned by
the City of Dubuque, Iowa by lease between the City and Iowa State
University of Science and Technology
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Adopt Resolution(s), Set Public
Hearing for 9/21/15
ATTACHMENTS:
Description Type
❑ Iowa State University Lease in Federal Building-MVM Memo City Manager Memo
❑ Staff Memo Staff Memo
❑ ISU Lease Draft Supporting Documentation
❑ Site Access Agreement Supporting Documentation
❑ Resolution-Intent to Dispose Resolutions
THE CITY OF Dubuque
UBE I
erica .i
Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Iowa State University Lease in Federal Building
DATE: September 2, 2015
Economic Development Director Maurice Jones recommends the City Council set a
public hearing for September 21, 2015 on the proposal to lease space in the Federal
Building to Iowa State University. Iowa State University has requested a three year
lease with two one-year extensions possible.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
Micliael 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
Dubuque Economic Development Department
THE CITY OF 50 West 13th Street
All-AmericaCitY Dubuque,Iowa 52001-4864
DUB36kE1 ' Office(563)589-4393
TTY(563)690-6678
® http://www.cityofdubuque.org
Masterpiece on the Mississippi 200.2012.2013
TO: Michael Van Milligen, City Manager
FROM: Maurice Jones, Economic Development Director
SUBJECT: Iowa State University Lease in Federal Building
DATE: September 1, 2015
INTRODUCTION
This memorandum presents for City Council review and approval a Lease Agreement
between the City of Dubuque, Iowa and Iowa State University (ISU) in the Federal
Building.
Short term leases (three years or less) can be authorized by the City Manager;
however, Iowa law requires that the City hold a public hearing prior to leasing public
property for longer than 3 years. Since ISU has requested a lease for 3 years, with two
(2) one-year extensions possible, the City Council will need to hold a public hearing
prior to acting on this lease.
BACKGROUND
ISU has leased space in the Roshek Building since 2012 for its offices. Their current
lease terminates October 31, 2015, but they have agreed to quit the premises before
the end of the term, in order to accommodate construction for an incoming tenant on
that same floor. Our department has worked with Dubuque Initiatives and Gronen
Properties (as Property Management for the Roshek Building) to find suitable space for
ISU in the downtown area. Relocating ISU's offices will allow for the addition of jobs in
our downtown, by freeing up space in the Roshek Building for another business's
relocation/expansion.
DISCUSSION
The proposed lease extends from October 1, 2015 to September 30, 2018, with two (2)
possible one-year extensions. The proposed lease has a flat rate for the initial 3-year
term and will increase by 3% each year during any extensions, if exercised.
City Council had approved a lease last month, however it had included a 3% escalator
on the lease rate during the initial term. This lease simply delays the escalator until
after the initial term. I believe it is in the best interest of the City to make this
accommodation in order to encourage job growth in the downtown area overall.
The major terms of the proposed lease are as follows:
1 . Tenant will lease 835 square feet on the 2nd Floor of the Federal Building, located at
350 West 6th Street, Room 234.
2. Tenant is responsible for property taxes and interior cleaning of the space.
3. City is responsible for utilities.
Further details of the proposed lease are included in the attached lease agreement.
The City has executed a site access agreement (attached) with ISU so the contractor,
Gronen Restoration, could begin the needed building improvements. If for any reason
this lease was not consummated, the City would pay the $21 ,612 rehabilitation expense
and have a more marketable space to market to other tenants.
RECOMMENDATION/ ACTION STEP
I recommend that the City Council set September 21 , 2015 as the date for a public
hearing on the proposed lease with ISU for space in the Historic Federal building.
RESOLUTION NO. 304-15
INTENT TO DISPOSE OF AN INTEREST IN REAL PROPERTY OWNED BY THE
CITY OF DUBUQUE, IOWA BY LEASE BETWEEN THE CITY AND IOWA STATE
UNIVERSITY OF SCIENCE AND TECHNOLOGY
WHEREAS, the City of Dubuque, Iowa (City) owns the real property described as the
Historic Federal Building, located at 350 West 6th Street in the City of Dubuque, Iowa;
and
WHEREAS, City and Iowa State University of Science and Technology have negotiated
a proposed Lease Agreement for space in the Historic Federal Building, a copy of which
Lease Agreement is on file at the office of the City Clerk, City Hall, 13th and Central
Avenue, Dubuque, Iowa; and
WHEREAS, the City Council believes it is in the best interests of the City of Dubuque to
approve the proposed Lease Agreement.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
DUBUQUE, IOWA:
Section 1. The City of Dubuque intends to dispose of its interest in the foregoing -
described real property by Lease Agreement between City and Iowa State University of
Science and Technology.
Section 2. The City Clerk is hereby authorized and directed to cause this Resolution
and a notice to be published as prescribed by Iowa Code Section 364.7 of a public hearing
on the City's intent to dispose of the foregoing -described real property, to be held on the
21st day of September, 2015, at 6:30 o'clock p.m. at the Historic Federal Building, Council
Chambers, 350 W. 6th Street, Dubuque, Iowa.
Passed, approved and adopted this 8th day of September, 2f'15
Roy D. B ol, Mayor
Attest:
Kew S. Firnstahl, City Clerk
LEASE AGREEMENT
BETWEEN
THE CITY OF DUBUQUE, IOWA
AND
IOWA STATE UNIVERSITY
This Lease Agreement (the Lease) dated for reference purposes the 1st day of
October, 2015 by the City of Dubuque, Iowa (Landlord) whose address for the purpose
of this Lease is 50 West 13th Street, Dubuque IA 52001 , and Iowa State University of
Science and Technology (Tenant) whose address for the purpose of this Lease is 1350
Beardshear Hall, Ames, Iowa 50011 .
SECTION 1. PREMISES AND TERM.
1 .1 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:
835 sq. feet, second floor Federal Building, Room(s) 234
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 three (3) years (the Initial Term), commencing October 1 , 2015
(the Commencement Date), and ending at 11 :59 p.m. on September 30, 2018, upon the
condition that Tenant pays rent therefor, and otherwise performs as in this Lease
provided.
1 .2 Tenant has the option of renewing this Lease for two (2) one-year terms (the
Renewal Terms) provided Tenant delivers notice of the exercise of such options not
less than 60 days prior to the end of the then current term.
1 .3 During the Term, Tenant is also permitted to use the conference room which is
available to all tenants. Tenant shall also have the right to use, in common with others,
(a) the entrances, lobbies, stairs, elevators and corridors necessary for access to the
Leased Premises, (b) the lavatories in the building; (c) the driveways and walkways
necessary for access to the building, and (d) such other common areas and facilities as
Landlord may designate from time to time ((a) through (d), collectively, the "Common
Areas").
SECTION 2. RENTAL. Tenant agrees to pay to Landlord as rental for the Initial Term
as follows:
2.1 Tenant will pay to Landlord as monthly rent for the Leased Premises the sum of
Eight Hundred Thirty Five and No/100 dollars ($835.00) (the Base Rent) commencing
071415bal
on October 1 , 2015 and on the 15t day of each month thereafter during the Initial Term
of this Lease. All sums must be paid to the Finance Department at the address of
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 the lower of 9% per annum from the due date or the maximum rate permitted
law, until paid.
2.2 If Tenant elects to renew this Lease as set forth in Section 1 .2, then upon the
commencement of each Renewal Term the Base Rent will be increased by three
percent (3%) of the previous year's Base Rent, and paid to 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 Lease
Term, except as herein otherwise expressly provided.
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.
SECTION 6. 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 said Lease 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 Condition of Premises. Tenant takes the Leased Premises in its present
condition, except for such repairs and alterations as may be expressly otherwise
provided in this Lease, or as outlined in Exhibits B and C. As between Landlord and
Tenant, Landlord shall be responsible for ensuring that the repairs and alterations
described in Exhibits B and C are substantially completed prior to October 1 , 2015. If
the repairs and alterations are not substantially completed prior to October 1 , 2015 and
Tenant is unable to take possession of the Leased Premises, then the Commencement
Date of the lease shall be adjusted to such date that the repairs and alterations are
substantially completed and Tenant's obligation to pay rent shall not commence until the
adjusted Commencement Date. If the lease commences after the 15t day of a month
such that the first month of the lease is only a partial month, then Tenant's rent shall be
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pro rated for such first month. If the repairs and improvements are not substantially
completed such that Tenant cannot take possession within thirty days of the original
Commencement Date, then the Landlord shall reimburse Tenant for expenses incurred
by Tenant in locating and using alternative premises during the period of unavailability.
If such unavailability continues for a period of sixty days or more from the original
Commencement Date, Tenant may terminate this Lease upon written notice to Landlord
without further obligations to Landlord. Tenant shall have no liability for the acts or
omissions of the contractor performing the repairs and alterations outlined Exhibits B
and C.
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 (a) the foundation,
exterior walls, load bearing components of interior floors and walls, and the roof;
(b) the mechanical, plumbing, electrical, HVAC and other building systems; and
windows, plate glass 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, Decorating and Alterations.
(1) If Tenant desires for the following items of equipment, furnishings and
fixtures to be replaced, they will be supplied and replaced by the parties as
follows:
Blinds: Tenant
Carpet/Vinyl: Tenant; provided, however, that Landlord shall be
responsible for installing vinyl flooring in the entryway to the
Leased Premises and shall be responsible for having all of
the carpeting in the Leased Premises cleaned. Landlord
shall complete such installation and cleaning prior to Tenant
taking possession
(2) The foregoing equipment, furnishings or fixtures to be supplied by Tenant
are subject to Landlord's prior written approval as to quality and method of
installation. Such approval shall not be unreasonably withheld. Tenant will
provide all trade equipment, furnishings and fixtures used in connection with the
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operation of its business, such as telephones, computers, desks, chairs, shelving
and similar items.
(3) Tenant is be responsible for all interior decorating. Tenant may not make
any structural alterations or improvements without the prior written consent of
Landlord.
6.5 Americans With Disabilities 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 or applicable municipality, the laws of the State of Iowa and the Federal
government, but this provision is not to 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%
Tenants' 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
Property Taxes Tenant 0 100
Janitor/Cleaning Tenant 0 100
Common areas Landlord 100 0
Other: Tenant 0 100
Tenant agrees to reimburse Landlord for the property taxes attributable to the Leased
Premises and paid by Landlord within thirty (30) days after receipt of a statement from
Landlord for such property taxes.
SECTION 8. TERMINATION, SURRENDER OF PREMISES AT END OF TERM --
REMOVAL OF FIXTURES.
8.1 Termination. This Lease will terminate upon expiration of the original Term; or if
this Lease expressly provides for any option to renew, and if any such option is
exercised by Tenant, then this Lease will terminate at the expiration of the option term
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or terms.
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.
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 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.
10.1 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 Self-Insured. Tenant is an agency of the State of Iowa and does not purchase
commercial insurance. In general, Tenant does not purchase commercial liability
insurance because certain statutory protections are provided under Chapter 669 of the
Code of Iowa. Chapter 669 authorizes claims against the State of Iowa on account of
wrongful death, personal injury or property damage incurred by reason of the
negligence of Tenant or its employees. Chapter 669 also sets forth the procedures by
which such claims may be brought. This protection is applicable to all officers,
employees and agents for their negligence while acting within the scope and course of
their activities, in accordance with the statutes. Under Iowa law, coverage is continuous
and does not expire. Worker's compensation coverage for Tenant employees is
provided through provisions of Chapter 85 of the Code of Iowa, Section 85.57 and
85.58, Employees of the State.
10.3 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.
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10.4 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.
10.5 Copy of Lease to Insurer. Landlord must provide a copy of this Lease to its
insurer.
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
by that party, or their agents or employees.
SECTION 12. INDEMNITY. To the extent permitted by Iowa Code Chapter 669 and
other applicable laws, 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 negligent or wrongful acts or omissions in connection with its
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 is 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 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 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
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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 is condemned
or taken, the Lease shall be deemed terminated, each party will be released from all
future obligations and Tenant must pay rent pro rata only to the date of such
termination.
SECTION 15. DEFAULT, NOTICE OF DEFAULT AND REMEDIES.
15.1 Events of Default. Each of the following constitutes an event of default:
(1) Failure of Tenant to pay rent when due.
(2) Failure of a party to observe or perform any duties, obligations,
agreements or conditions imposed pursuant to terms of the Lease.
(3) Abandonment of the Leased Premises, in which "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 a party as a debtor; assignment for the benefit of creditors of the
interest of a party under this Lease; appointment of a receiver for the property or
affairs of a party, where the receivership is not vacated within ten (10) days after
the appointment of the receiver.
15.2 Notice of Default. The aggrieved party must give the defaulting party a written
notice specifying the default and giving the defaulting party 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, the defaulting party must propose an additional period of time in which to
remedy the default. Consent to additional time may not be unreasonably withheld by
the aggrieved party. The aggrieved party is not required to give the defaulting party any
more than three notices for the same default within any 365 day period.
15.3 Remedies. In the event the defaulting party has not remedied a default in a
timely manner following a Notice of Default, the aggrieved party may proceed with all
available remedies at law or in equity, including but not limited to the following:
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(1) Termination. The aggrieved party may declare this Lease to be
terminated and must give the defaulting party a written notice of such
termination. In the event of termination of this Lease due to Tenant's default,
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, crediting against such claim, however, any amount obtained by
reason of such reletting.
(2) Forfeiture. If a default by Tenant 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 Iowa Code if a court determines that
Chapter 648 is applicable to Tenant as a state agency.
SECTION 16. RIGHT OF EITHER PARTY TO MAKE GOOD 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 or the maximum rate permitted law, whichever is less.
SECTION 17. SIGNS. Tenant may not attach, paint or exhibit any signs on the Leased
Premises.
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 19. [Intentionally Omitted].
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
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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.
(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
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may be liable for any such cost and expense.
(4) To the extent permitted by Chapter 669 of the Iowa Code and other
applicable law, 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 will survive the cessation,
termination, abandonment or expiration of this Lease.
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.
21 .2 Inventory. Nothing herein contained will 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: Iowa State University
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c/o Senior Vice President for Business and Finance
1350 Beardshear
Ames, Iowa 50011
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 26. COMPLIANCE WITH LAW. During the term of this Lease, Tenant
must comply with all laws applicable to Tenant's use of the Leased Premises.
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 include 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
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, By:
LANDLORD Michael C. Van Milligen
City Manager
11
IOWA STATE UNIVERSITY,
TENANT
By:
Warren R. Madden
Senior Vice President for
Business and Finance
12
EXHIBITA
THE LEASED PREMISES
/A
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13
EXHIBIT B
GRONEN PROPOSAL- MAY 4,2015
May 4,2015
Mr. Brian Perry
Iowa State University Extension&Outreach Office
700 Locust Street
Suite 210
Dubuque, IA 52001
RE: Iowa State University Extension&Outreach
Federal Building Location
350 W. 6'1'Street I Dubuque, IA 52001
Dear Brian:
On behalf of Gronen Restoration Inc., I would like to express our appreciation for the opportunity to
provide you with this proposal for the above referenced project. The quotation to follow is based on our
inspection of the existing facility,phone conversations with you,and updates that have been performed on
the mechanical systems.
Scope of Work Recommended [Reference Attachment# 1]:
(1) Demo entry"L"shaped wall&patch plaster
(2) Frame, insulate,&drywall partitions for(2)offices—[8'-0"walls]
(3) Paint new office walls,entry wall, &associated millwork
(4) Paint all existing office walls
(5) Install all associated millwork&hardware on new offices
(6) Remove all scrap&debris off-site
(7) Provide&install a fire extinguisher&cabinet
Mechanical Systems:
♦Office walls will be 8' high so existing HVAC&Fire sprinkler can remain unchanged
Electrical Systems:
♦Lighting changes to accommodate new office locations
♦Allowance($2,000)for Data/Phone/Cable&lighting changes to accommodate newly
constructed offices.
♦No changes to any power circuits
♦Electrical service&metering to remain as is
We propose to furnish all labor,material, equipment,taxes and insurance to perform the work as described
above @ 350 W.6"Street,Dubuque,IA for a cost of. $21,612.
Our proposal includes building permit fees associated with the work identified above. Please contact me @
563.581.2094 if you have any questions or require additional information. Thank you.
Sincerely,
GRONEN RESTORATION,Inc.
Shawn J. -filborn
Construction Manager
Enclosure
Cc: Nancy Kann
Mary Gronen
1IPage
PO b0A 1862 DMQUf • I0M 52004-1862 PHOU 563.557.7010 • fHX 563.6901610
gronenproperties.com • gronenrestoration.com
EXHIBIT C
FITPLAN
15
D
16
SITE ACCESS
AGREEMENT BETWEEN j
CITY OF DUBUQUE, IOWA,
IOWA STATE UNIVERSITY,
AND
ROSKEK BUILDING
MASTER TENANT, LLC
This Agreement is made and entered into this 31st day of August, 2015, by and
between the City of Dubuque, Iowa, an Iowa municipal corporation (City), Iowa State
University of Science and Technology, a public institution of higher education (ISU) and
Roshek Building Master Tenant, LLC (Roshek).
WHEREAS, City is the owner of the real estate legally described as:
835 sq. feet, second floor Federal Building, Room(s) 234
350 West 6th Street Dubuque, Iowa
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(the Site); and
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WHEREAS, ISU and Roshek have entered into a Relocation Agreement as of
August 31, 2015, pursuant to which ISU shall vacate its office space currently leased from
Roshek and relocate to the Site;
WHEREAS, City and ISU have tentatively agreed to a Lease Agreement for the
Site commencing October 1, 2015 to facilitate such relocation; and
WHEREAS, the Site requires build-out work in order to accommodate ISU's needs
and Roshek has agreed in the Relocation Agreement to retain Gronen Restoration, Inc.
to complete the build-out work, a copy of which Relocation Agreement is attached hereto;
WHEREAS, ISU and Roshek have requested and City desires to allow ISU and
Roshek and its contractors access to the Site to begin improvements of the Site
prior to commencement of the Lease term; and
WHEREAS, City is willing to allow such access on the terms and conditions set
forth herein.
NOW, THEREFORE., IT IS AGREED BY AND BETWEEN THE PARTIES AS
FOLLOWS:
A. Access to the Site. City hereby grants to Roshek and its contractors access
to the Site and all parts thereof, upon reasonable notice to City, to make
improvements consistent with the proposed Lease Agreement, commencing on
the 1st day of September, 2015 and ending on the 1st day of October, 2015.
Except as provided in Section D below, the expense of making the improvements
shall be the responsibility of Roshek and ISU as set forth in the Relocation
Agreement.
B. Insurance. Roshek agrees to provide insurance at all times while on the {
Site consistent with the attached Insurance Schedule. j
C. Indemnification. Roshek assumes all risk of injury arising from or related
to any condition of the Site and agrees to indemnify and hold harmless City,
its officers, agents, and employees from and against any claim of any kind
arising out of or caused by Roshek's or its contractor's presence on and use of the
Site.
D. Consequences if Lease Disapproved. If the City and ISU do not enter into
the Lease Agreement such that ISU is unable to lease the Site, then the City shall
be obligated to reimburse Roshek for the cost of the build-out work not to exceed
$21,612.00 and ISU shall be fully relieved of such obligation under the
Relocation Agreement. The City and ISU shall each act in good faith in
negotiating and approving the Lease Agreement.
CITY OF DUBUQUE, IOWA IOWA STATE UNIVERSITY OF
SCIENCE AND TECHNOLOGY
By: By:
--c
Michael an Milligen, City Manager Warren R. Madden, Senior Vice
President for Business and Finance
ROSHEK BUILDING MASTER
TENANT, LLC
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By:
City of Dubuque Insurance Requirements for Tenants and Lessees of City Property or
Vendors (Suppliers, Service Providers), and Right of Way Permit Holders
Insurance Schedule A
1. shall furnish a signed Certificate of Insurance(COI)to the City of Dubuque, Iowa for
the coverage required in Exhibit I prior to contract or lease commencement.All lessees of City property
and Right of Way Permit Holders shall submit an updated COI annually. Each Certificate shall be prepared
on the most current ACORD form approved by the Department of Insurance or an equivalent. Each
certificate shall include a statement under Description of Operations as to why issued. Eg, Project
# or Lease of premises at or construction of or right of way
permitted location and description
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2. All policies of insurance required hereunder shall be with a carrier authorized to do business in Iowa and
all carriers shall have a rating of A or better in the current A.M.Best's Rating Guide.
3. Each Certificate shall be furnished to the contracting department of the City of Dubuque.
I
4. 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.
5. All required endorsements to various policies shall be attached to Certificate of insurance.
6. Whenever a specific ISO form is listed,an equivalent form may be substituted subject to the provider
identifying and listing in writing all deviations and exclusions that differ from the ISO form.
7. Provider shall be required to carry the minimum coverage/limits,or greater if required by law or other
legal agreement, in Exhibit I.
8. Whenever an ISO form is referenced the current edition of the form must be used. if provider's limits of
liability are higher than the required minimum limits then the provider's limits shall be this agreement's
required limits.
Page 1 of 3 Schedule A Property Or Vendors July 2015.Doc
City of Dubuque Insurance Requirements for Tenants and Lessees of City Property or
Vendors (Suppliers, Service Providers), and Right of Way Permit Holders
Insurance Schedule A (continued)
Exhibit
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A) COMMERCIAL GENERAL LIABILITY
General Aggregate Limit $2,000,000
Products-Completed Operations Aggregate Limit $1,000,000
I
Personal and Advertising Injury Limit $1,000,000 j
Each Occurrence $1,000,000
I
Fire Damage Limit(any one occurrence) $ 50,000
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Medical Payments $ 5,000
a) Coverage shall be written on an occurrence,not claims made,form.The general liability
coverage shall be written in accord with ISO form CG0001 or business owners form BP0002.
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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Page 2 of 3 Schedule A Property Or Vendors July 2015.Doc
City of Dubuque Insurance Requirements for Tenants and Lessees of City Property or
Vendors (Suppliers, Service Providers), and Right of Way Permit Molders
i
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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 maybe amended from time to time.
I
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 Politer.The above preservation of governmental immunities shall not otherwise
change or alter the coverage available under the policy.
SPECIMEN
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Page 3 of 3 Schedule A Property Or Vendors July 2015.Doc
RELOCATION AGREEMENT
I
This Relocation Agreement is entered into this 31"day of August, 2015 between i
Roshek Building Master Tenant, LLC ("Roshek") and Iowa State University of Science j
and Technology("ISU").
Recitals
A. ISU, as tenant, currently leases office space from Roshek in that building
locally known as the Roshek Building, 700 Locust St., Dubuque, Iowa, and the lease for
such space expires October 31, 2015 ("Roshek Lease");
B. In order to accommodate a large new tenant at the Roshek Building, ISU has
agreed to relocate its offices to the Federal .Building pursuant to a Lease Agreement with the
City of Dubuque, Iowa(the"New Office")prior to expiration of the Roshek Lease;
C. The New Office will require build-out work to accommodate ISU's needs;
D. Roshek is willing to arrange for such a build-out and to otherwise provide
accommodations to ISU for vacating the Roshek Building prior to the expiration of the
Roshek Lease;
E. The parties desire to set forth their agreement regarding such matters in writing;
Therefore, in consideration of the mutual terms and conditions set forth herein, the
parties agree as follows:
1. Build-Out. Roskek shall retain Gronen Restoration, Inc., as Construction
Manager, and shall complete the build-out set forth in a proposal from Gronen
Restoration, Inc.to TSU dated May 4, 2015, a copy of which is attached hereto as Exhibit
A and by this reference made a part hereof(the "Build-Out Obligation"). Roshek shall
substantially complete the Build-Out Obligation by October 1, 2015.
2. Pa moment for Build-Out. Roshek shall pay Gronen Restoration for the work
necessary to complete the Build-out Obligation. TSU shall reimburse Roshek for the cost
of the Build-out Obligation up to a maximum of$21,612.00 ("Build-Out Cost"). After
completion of the Build-Out Obligation,Roshek shall invoice ISU for the Build-Out Cost.
ISU shall pay such invoice within thirty days. If Roshek does not complete the Build-Out
Obligation by November 30, 2015 and ISU tenninates its lease for the New Space
because of such delay, TSU shall have no obligation to pay the Build-Out Cost.
3, Additional Improvements. If the parties mutually agree in writing to have
additional improvements made to the New Space that are outside the scope of the Build-
Out Obligation, then the cost for such additional improvements shall be added to the
Build-Out Cost.
I
4. Relocation. ISU shall relocate its offices from the Roshek Building to the New
Office pursuant to the terms of a separate lease agreement with the City of Dubuque,
I
Iowa (the "New Lease"). TSU shall vacate the Roshek Building after the Build-Out
Obligation has been substantially completed and the landlord for the New Office gives
ISU possession of the New Office.
5. Rent Credit. Roshek shall credit against the Build-Out Cost any rent paid by
ISU pursuant to the Roshek Lease that is attributable to the period after ISU vacates the
Roshek Building (e.g., if ISU pays$1,500.00 as monthly rent under the Roshek Lease on
October 1, 2015 but vacates the Roshek Building on October 15, 2015, ISU shall receive
a credit for the period October 15th to October 31 st in the amount of$800.00 which
would be credited against the Build-Out Cost).
6. Moving Expenses. Roshek shall reimburse ISU for moving expenses ISU incurs
i
in relocating from the Roshek Building to the New Office up to a maximum of$5,000.00
("Moving Expenses"). ISU shall submit to Roshek documentation of the Moving
Expenses. Within 30 days of receipt of the documentation, Roshek shall reimburse ISU
for such documented Moving Expenses.
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7. Roshek Lease. The Roshek Lease shall be deemed terminated as of the date
ISU vacates the Roshek Building, and ISU shall have no further obligations under the
Roshek Lease. If there is any conflict between the Roshek Lease and this Relocation
Agreement,this Relocation Agreement shall control.
I
8. Miscellaneous. This Relocation Agreement shall be governed by and construed
under the laws of the State of Iowa. This Relocation Agreement shall be binding upon the
parties hereto and their successors and assigns. In the event of a breach of this Relocation
Agreement by either party, the non-breaching party shall be entitled to all rights and
remedies available at law or equity.
Roshek Building Master Tenant, LLC
By:�
Iowa State University of Science and Technology
-_? it
By:
Warren R. Madden,
Senior Vice President for
i
Business and Finance
EXHIBIT A
May 4,2015
Mr. Brian Perry
Iowa State University Extension&Outreach Office
700 Locust Street
Suite 210
Dubuque, IA 52001
i
RE: Iowa State University Extension&Outreach j
Federal Building Location
350 W.611'Street I Dubuque,IA 52001
Dear Brian:
i
On behalf of Gronen Restoration Inc., I would like to express our appreciation for the opportunity to
provide you with this proposal for the above referenced project. The quotation to follow is based on our i
inspection of the existing facility,phone conversations with you,and updates that have been performed on
the mechanical systems.
Scope of Work Recommended[Reference Attachment# I]:
(1) Demo entry"L"shaped wall&patch plaster
(2) Frame,insulate,&drywall partitions for(2)offices—[8'-0" walls]
(3) Paint new office walls,entry wall, &associated millwork
(4) Paint all existing office walls
(5) Install all associated millwork&hardware on new offices
(6) Remove all scrap&debris off-site
(7) Provide&install a fire extinguisher&cabinet
Mechanical Systems:
♦Office walls will be 8'high so existing HVAC&Fire sprinkler can remain unchanged
Electrical Systems:
a Lighting changes to accommodate new office locations
♦Allowance($2,000)for Data/Phone/Cable&lighting changes to accommodate newly
constructed offices.
♦No changes to any power circuits
`Electrical service&metering to remain as is
We propose to furnish all labor,material,equipment,taxes and insurance to perform the work as described
above @ 350 W.611 Street, Dubuque,IA for a cost of:$21,612.
Our proposal includes building permit fees associated with the work identified above. Please contact me @
563.581.2094 if you have any questions or require additional information. Thank you.
Sincerely,
GRONEN I•• I�2ATION,Inc.
Shawn J.7lilborn
Construction Manager
Enclosure
I
Cc: Nancy Kann
Mary Gronen
i
i
I I P a g e
PO hon 1862 DOME IOWO 52004-1862 Pllou 563.5577010 fBR 563690-1610
gronenpropertles.com - gronenrestoration.com