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HomeMy WebLinkAbout2021-12-20-I02A Lease Business Property_WCSD_Materials StorageAGENDA ITEM: CITY OF WAUKEE, IOWA CITY COUNCIL MEETING COMMUNICATION MEETING DATE: December 20, 2021 AGENDA ITEM:Consideration of approval of a resolution approving Lease, Business Property between Waukee Community School District and City of Waukee, Iowa [Materials Storage] FORMAT:Resolution SYNOPSIS INCLUDING PRO & CON: City staff have worked with Waukee Community School District (WCSD) staff for a lease of approximately three acres of WCSD property located at 29268 260th St. WCSD currently uses this property as bus overflow parking. The City would utilize the east three acres of the 15-acre parcel for the purpose of storing excess materials often generated as the City Public Works department conducts its day to day operations. These materials for example would be aggregate stockpiles, storm debris collection, broken concrete collection, etc. until those items are either used or disposed of properly. The initial term of the lease is for two years and will automatically renew unless either party provides written notice not to renew the lease. This area will replace the City’s current stock yard located near the current elevated water storage tank, which will no longer be accessible once the extension of University Avenue is constructed from Warrior Lane to 6th Street. FISCAL IMPACT INCLUDING COST/BENEFIT ANALYSIS: $1.00 per year COMMISSION/BOARD/COMMITTEE COMMENT: STAFF REVIEW AND COMMENT: RECOMMENDATION: Approve the Resolution. ATTACHMENTS: I. Resolution II. Lease – Business Property PREPARED BY: Beth Richardson REVIEWED BY: Rudy Koester RK PUBLIC NOTICE INFORMATION – NAME OF PUBLICATION: DATE OF PUBLICATION: I2A THE CITY OF WAUKEE, IOWA RESOLUTION 2021- APPROVING LEASE, BUSINESS PROPERTY BETWEEN WAUKEE COMMUNITY SCHOOL DISTRICT AND THE CITY OF WAUKEE [MATERIALS STORAGE] IN THE NAME AND BY THE AUTHORITY OF THE CITY OF WAUKEE, IOWA WHEREAS, the City of Waukee, Dallas County, State of Iowa, is a duly organized Municipal Organization; AND, WHEREAS, the City staff have worked with Waukee Community School District (WCSD) staff for a lease of approximately three acres of WCSD property located at 29268 260th Street; AND, WHEREAS, the City would utilize the east three acres of the 15-acre parcel for the purpose of storing excess materials generated as the City Public Works department conducts its day to day operations; AND, WHEREAS, the initial term of the lease is for two years and will automatically renew for two- year terms unless either party provides written notice to the other not to renew the lease; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Waukee that the Lease, Business Property between the Waukee Community School District and the City of Waukee [Materials Storage] is hereby approved. Passed by the City Council of the City of Waukee, Iowa, and approved the 20th day of December, 2021. ____________________________ Courtney Clarke, Mayor Attest: ___________________________________ Rebecca D. Schuett, City Clerk RESULTS OF VOTE: AYE NAY ABSENT ABSTAIN Anna Bergman Pierce R. Charles Bottenberg Chris Crone Larry R. Lyon Ben Sinclair ©The Iowa State Bar Association 2021 IowaDocs® Form No. 165, Lease – Business Property – Short Form Revised January 2016 LEASE - BUSINESS PROPERTY - SHORT FORM THIS LEASE, made and entered into this ________ day of ____________________, 2021, by and between Waukee Community School District ("Landlord"), whose address, for the purpose of this lease, is 560 SE University Avenue, Waukee, IA 50263 and City of Waukee, Iowa ("Tenant"), whose address for the purpose of this lease is 230 W. Hickman Road, Waukee, IA 50263. The parties agree as follows: 1.PREMISES AND TERM. Landlord leases to Tenant the following real estate, situated in Dallas County, Iowa: East 3.15 acres of the parcel of land located at 29268 260th Street, Dallas Center, Iowa, starting at the Southeast property corner, West 286 feet, then North 473 feet, then East 286 feet to the Northeast property corner, then South 473 feet back to the point of beginning, and as generally depicted on the attached map, together with all improvements thereon, and all rights, easements and appurtenances thereto situated, for a term beginning on January 1, 2022, and ending on December 31, 2023, upon the condition that Tenant performs as provided in this lease. Upon the expiration of the lease term, the lease shall automatically renew for an additional 2-year term, unless either party provides 6 months written notice to the other of their intention not to renew the lease. 2.RENT. Tenant agrees to pay Landlord as rent $1.00 per year, in advance, commencing on January 1, 2022, and on the 1st January each year thereafter, during the term of this lease. All sums shall be paid at the address of Landlord, or at such other place as Landlord may designate in writing. 3.POSSESSION. Tenant shall be entitled to possession on the first day of the lease term, and shall yield possession to Landlord at the termination of this lease. SHOULD LANDLORD BE UNABLE TO GIVE POSSESSION ON SAID DATE, TENANT'S ONLY DAMAGES SHALL BE A PRO RATA ABATEMENT OF RENT. 4.USE. Tenant shall use the premises only for an outdoor bulk materials storage yard. 5.CARE AND MAINTENANCE. A.Tenant takes the premises as is, except as herein provided. B.Landlord shall not be required to make any repairs, perform any maintenance, or make any replacements to the premises during the term of this lease. C.Tenant shall maintain the premises in a reasonable safe, serviceable, clean, and presentable condition, and shall make all repairs and replacements to the premises during the term. Tenant may install a fence enclosure and access gate on the ©The Iowa State Bar Association 2021 IowaDocs® Form No. 165, Lease – Business Property – Short Form Revised January 2016 property and shall be responsible for removing any snow and ice from the leased premises. Except for the installation of the fence permitted in this subsection 5(C), Tenant shall not make any alterations to the leased premises without Landlord’s prior written permission, which may be withheld or conditioned in Landlord’s sole discretion. 6.UTILITIES AND SERVICES. Tenant shall contract and pay for all utilities and services which may be used on the premises. Landlord shall not be liable for damages for failure to perform as herein provided, or for any stoppage for needed repairs or for improvements or arising from causes beyond the control of Landlord, provided Landlord uses reasonable diligence to resume such services. 7.SURRENDER. Upon the termination of this lease, Tenant will surrender the premises to Landlord in good and clean condition, except for ordinary wear and tear or damage without fault or liability of Tenant. Continued possession, beyond the term of this Lease and the acceptance of rent by Landlord shall constitute a month-to-month extension of this lease on the same terms and conditions stated in this lease, except that rent shall increase to $500 per month. Upon the surrender of the premises any fence enclosure and/or gate installed by Tenant shall be left on the property together with any ground surface installed by Tenant. 8.ASSIGNMENT AND SUBLETTING. No assignment or subletting, either voluntary or by operation of law, shall be effective without the prior written consent of Landlord, which consent shall not unreasonably be withheld. 9.INSURANCE. A.PROPERTY INSURANCE. Landlord and Tenant agree to insure their respective real and personal property for the full insurable value. Such insurance shall cover losses included in the special form causes of loss (formerly all risks coverage). To the extent permitted by their policies the Landlord and Tenant waive all rights of recovery against each other. 10.LIABILITY FOR DAMAGE. All personal property stored on the leased premises by Tenant shall be at the risk of the Tenant only. The Landlord shall not be liable for any damage to such personal property regardless of the cause or fault. 11.INDEMNITY. Tenant will protect, defend, and indemnify Landlord from and against any and all loss, costs, damage and expenses occasioned by, or arising out of, any accident or other occurrence arising out of or related to Tenant’s use of the leased premises. 12.DAMAGE. In the event of damage to the premises, so that Tenant is unable to conduct business on the premises, this lease may be terminated at the option of either party. Such termination shall be effected by notice of one party to the other within 20 days after such notice; and both parties shall thereafter be released from all future obligations hereunder. 13.MECHANICS' LIENS. Neither Tenant, nor anyone claiming by, through, or under Tenant, shall have the right to file any mechanic's lien against the premises. Tenant shall ©The Iowa State Bar Association 2021 IowaDocs® Form No. 165, Lease – Business Property – Short Form Revised January 2016 give notice in advance to all contractors and subcontractors who may furnish, or agree to furnish, any material, service or labor for any improvement on the premises. 14.DEFAULT, NOTICE OF DEFAULT AND REMEDIES. EVENTS OF DEFAULT A.Each of the following shall constitute an event of default by Tenant: (1) Failure to pay rent when due; (2) failure to observe or perform any duties, obligations, agreements, or conditions imposed on Tenant pursuant to the terms of the lease; (3) abandonment of the premises. "Abandonment" means the Tenant has failed to engage in its usual and customary business activities on the premises for more than fifteen (15) consecutive business days; (4) institution of voluntary bankruptcy proceedings by Tenant; institution of involuntary bankruptcy proceedings in which the Tenant thereafter is adjudged a bankruptcy; assignment for the benefit of creditors of the interest of Tenant under this lease agreement; appointment of a receiver for the property or affairs of Tenant, where the receivership is not vacated within ten (10) days after the appointment of the receiver. NOTICE OF DEFAULT B.Landlord shall give Tenant a written notice specifying the default and giving the Tenant ten (10) days in which to correct the default. If there is a default (other than for nonpayment of a monetary obligation of Tenant, including rent) that cannot be remedied in ten (10) days by diligent efforts of the Tenant, Tenant shall propose an additional period of time in which to remedy the default. Consent to additional time shall not be unreasonably withheld by Landlord. Landlord shall not be required to give Tenant any more than three notices for the same default within any 365 day period. REMEDIES C.In the event Tenant has not remedied a default in a timely manner following a Notice of Default, Landlord may proceed with all available remedies at law or in equity, including but not limited to the following: (1) Termination. Landlord may declare this lease to be terminated and shall give Tenant a written notice of such termination. In the event of termination of this lease, Landlord shall be 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 premises and the reletting thereof, including attorney's fees and court costs, crediting against such claim, however, any amount obtained by reason of such reletting; (2) Forfeiture. If a default is not remedied in a timely manner, Landlord may then declare this lease to be forfeited and shall give Tenant a written notice of such forfeiture, and may, at the time, give Tenant the notice to quit provided for in Chapter 648 of the Code of Iowa. 15.SIGNS. Landlord, during the last 30 days of this lease, shall have the right to maintain on the premises either or both a "For Rent" or "For Sale” sign. Tenant will permit prospective tenants or buyers to enter and examine the premises. 16.NOTICES AND DEMANDS. All notices shall be given to the parties hereto at the addresses designated unless either party notifies the other, in writing, of a different address. ©The Iowa State Bar Association 2021 IowaDocs® Form No. 165, Lease – Business Property – Short Form Revised January 2016 Without prejudice to any other method of notifying a party in writing or making a demand or other communication, such notice shall be considered given under the terms of this lease when it is deposited in the U.S. Mail, registered or certified, properly addressed, return receipt requested, and postage prepaid. 17.PROVISIONS BINDING. Each and every covenant and agreement herein contained shall extend to and be binding upon the respective successors, heirs, administrators, executors and assigns of the parties hereto. 18.CERTIFICATION. Tenant certifies that it is not acting, directly or indirectly, for or on behalf of any person, group, entity or nation named by any Executive Order or the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person” or any other banned or blocked person, entity, nation or transaction pursuant to any law, order, rule or regulation that is enforced or administered by the Office of Foreign Assets Control; and it is not engaged in this transaction, directly or indirectly on behalf of, or instigating or facilitating this transaction, directly or indirectly on behalf of, any such person, group, entity or nation. Tenant hereby agrees to defend, indemnify and hold harmless Landlord from and against any and all claims, damages, losses, risks, liabilities and expenses (including attorney’s fees and costs) arising from or related to any breach of the foregoing certification. 19.ADDITIONAL PROVISIONS. This lease is subject to approval by the City Council of the City of Waukee and the Board of the Waukee Community School District. _________________________________ Waukee Community School District, LANDLORD _________________________________ City of Waukee, Iowa, TENANT