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HomeMy WebLinkAbout04-09-07 Item 7A, Sheehy Tennis Court Lease Agreement ~ ~HILLS Request for Council Action Prepared By: DepL: Council Mtg. Date: Final Action Needed By: Michelle Olson ~rilt!) Public Works April 9, 2007 April 9, 2007 Agenda Item: 7A Budgeted Amount Actual Amount Funding Source: G6uriciJAcliqnR~quest: Motion to approve a temporary restated and amended lease agreement dated April 9, 2007 allowing Arden Hills Association #3 to have exclusive use of the Sheehy Tennis Court from April 9, 2007 through December 31,2007. Staff Recommendation: Staff requests time to further evaluate all potential uses of this site. Therefore, staff recommends a motion to approve a temporary, restated and amended lease agreement dated April 9, 2007, allowing Arden Hills Association #3 to have exclusive use of the Sheehy Tennis Court from April 9, 2007 through December 31, 2007. ~upporting.poc;ulTl!:n~: (att(3c;h!:cl) X Memo/Letter: Resolution No.: Ordinance No.: Engineering Recommendation: Attorney Recommendation: Dated 4/4/07 from Michelle Olson, Parks and Recreation Manager X Other: Expired Lease Agreement, Photos of Tennis Court, Location Maps, Letter from Arden Hills Association #3, Proposed Temporary, Restated and Amended Lease Agreement, Council Minutes and ~llPportingMern()s fr()rnIerlni~c:oUrttlist()ry. AdministratorlStaff Comments: Staff will bring back. a comprehel1si've report on the Sheehy property to a future meeting for further discussion. \\~vlelro.iIlCl,US\jrJellhills\PR&PW\pjrks\~'lcmos\Counci1 ACLiolls\..';heehy Tennis Coun Lease AgrecrnenL07.doc ~ ~~HILLS MEMORANDUM DATE: April 4, 2007 Agenda Item: 7 A TO: Honorable Mayor and City Council Michelle Wolfe; City Administrator FROM: Michelle Olson, Parks and Recreation Manager "il1Cr; SUBJECT: Sheehy Tennis COlui Lease Agreement Backf!/'olllld In March 2006, City staff received a phone call from a resident inquiring why the tennis court located at 3168 Ridgewood Road was locked and posted as operated by Arden Hills #3 Association. At that time, due to the questions regarding why the Association was using this cOUli exclusively, the City placed a lock on the court and posted a sign that stated, for more info1111ation about this court, please contact the City of Arden Hills. Staff was then contacted by Todd Albertson, Board Member of the Arden Hills #3 Association. He stated that the association had a lease agreement to have exclusive use of the courts and asked for the courts to be unlocked. The City Attorney and the Arden Hills #3 Association both forwarded to staff a copy of a lease agreement that had been approved by the Arden Hills City Council on October 3, 1996. Under the tenns of the agreement, the Association was to pay the City of Arden Hills S I 0.00 annually to rent the facility. The lease agreement was for a term of five years, renewable for an additional five years per language stating that unless either party gave written notice of cancellation at least twelve months prior to termination of the initial five year lease, it automatically renewed. The Association was responsible for the maintenance of the facility and all improvement costs would be their responsibility. In addition, the Association was required to maintain comprehensive general liability coverage in an amount not less than S600,000 for each occurrence and S600,000 for personal injury. A copy of the expired lease is included for your reVIew. Further research discovered that the S I 0.00 annual fee had never been paid and the City did not have any record of the required insurance from the previous ten years. Mr. Todd Albertson does assure the City that the association did carry the required insurance and each year, submitted this to the City. Staff has been unable to locate this documentation. Association #3 did submit a check on April 10, 2006 for S 1 00 for the past due amount in the lease agreement and provided updated proof of insurance. The City unlocked the court at that time until October, 2006, when \\Metro-inet.us\ardenhills\PR&PW\Parks\Memos\Council Memos\Sheehy Tennis Court Lease Agreement.doc City Council Sheehy Tennis Court Lease Agreement 2 the lease expired. At that time, staff infol111ed the Association to write a letter requesting their intentions for the court. The Arden Hills Association #3 is interested in a renewal of the lease agreement. A copy of the lease extension request is included for your review. Staff has researched the history of this tennis court and does have reservations about entering into another long tel111 lease agreement with the Association. Staff has concel11S about the maintenance of the court and the idea of a City owned court being offered for use exclusively by a private group. The Association states that they do a spring and fall cleanup of the court and have a pm1 time staff member clean the court once a week during the summer months. The coul1 is not level and appears to have several areas that have sunk due to the unstable base that it was built on. There are trees overhanging the cOUl1, which causes leaves, branches, and debris to lie on the court. This in tUl11 hurts the quality of the surface. Cracks have begun to run the length of the court. There are four light poles wired across the court that are not operational. Photos of the court have been included for your review. The following is the background of how the City acquired this tennis court and discussions that took place at that time regarding future use of this land. Also, staff memos and City Council minutes regarding this have been included for your review. In.January 1994, the City received a notice from Mr. .James C. Shacker and Mr. C.E. Sheehy of an interest to donate approximately 8.57 acres of property to the City of Arden Hills. The property was made up of primarily Type III and/or Type IV wetland. The area consisted of a swamp/pond, cat tails, and scrub trees. A tennis court was constructed in 1974/1975 in the SW corner of the property. All required pel111its (Rice Creek Watershed, Department of Natural Resources, City Building Permit) were obtained prior to the filling of the area and the construction of the tennis court. Although the Parks and Recreation Department and Public Works Depm1ment found very little park or recreational use for the Sheehy property, the City Council accepted the donation in November 1994. It was found that the development of the area was limited due to the wetland delineation. The courts were in disrepair and in need of maintenance. The Parks and Recreation Department found that the court may need to be removed because the soil conditions present were not providing a stable base. The City was worried about the liability risks involved with use of the tennis court. In 1995, the estimated in-kind labor cost to the City for demolishing the tennis court was estimated at $1,500-$2,000. For safety and liability reasons, the City placed a lock on the court until a decision on the future of the cOUl1 was made. In September 1995, two members of the Arden Hills #3 Home Association requested private usage of the Sheehy tennis court. After discussion of the details, including the cost of the restoration and upkeep of the property, the possibility of selling, and the possibility of leasing, the City Council directed staff to prepare a lease agreement for the property. Staff Recommelldatioll Staff requests time to further evaluate all potential uses of this site. Therefore, staffrecommends approval of a temporary restated and amended lease agreement dated April 9, 2007 allowing City Council Shcehy Tennis Court Lease Agreement 3 Arden Hills Association #3 to have exclusive use of the Sheehy Tennis COUli from April 9, 2007 until December 31, 2007. Staff will bring back a comprehensive report to a future meeting for further discussion. Re({lIested Actioll A motion to approve a temporary restated and amended lease agreement dated April 9, 2007 allowing Arden Hills Association #3 to have exclusive use of the Sheehy Tennis COUli from April 9, 2007 until December 31,2007. Sheehy Tennis Court Attachment 7 A -1 : Expired Lease Agreement dated October 3, 1996 2007 SE\T BY:PETERSON fRAM BERGMAN 9-11-96 :10:06AM :PETERSON fRAM BERGMA~ 612 633 7839:# 2/ 5 LEASE AGREEMENT 1. 0 Parties. This Agreement is dated the-:S rvl day of C; ('''to hp .R. , 1996, and is entered into by and between the city of Arden Hills, a M1nnesota municipal corporation ("city") and the Arden Hills III Association, a Minnesota non-profit corporation herein ("Association"). 2.0 Recitals. A. The City is the fee owner of the follm.ing described property situated in Ramsey County, Minnesota to-wit: Lot 3, Block 8, Arden Hills No.3, except that part described ao follows: Beginning at the Northeast corner of said Lot 3; thence West along the North line of said Lot 3 for 300 feet; thence South at right angles for 300 feet; thence East parallel to the North line of said Lot 3 for 270 feet, more or less, to the East line of said Lot 3; thence North along the East line of said Lot 3 to the point of beginning (herein the "Subject property"). B. The City does not have a short term use for the property. C. The Association wishes to lease a portion of the Subject Property for a tennis court and related facilities. D. The City is willing to allow an interim Use of the Subject Property pursuant to the tenns of this Lease Agreement. 3.0 Terms and Conditions. NOW, THEREFORE, in consideration of the mutual undertakings herein expressed, the City and Association agree as follows: A. Property Subiect to Lease. The City hereby leases to the Association that portion of the Subject Property described on Exhibit A attached hereto, subject to any and all existing easements. 1. Tennis Court Area. (Legal to be included.) 2. Access Area. (Legal to be inclUded.) B. Rent. As consideration for this Lease, the Association shall pay the City rent in the amount of $10.00 per year. The first payment shall be due upon the execution of this Agreement and subsequent rental payments shall be due on the anniversary date of the Agreement. In addition, the Association shall pay the City any taxes or payments in 1 lieu of taxes required as a result of this Lease including any such taxes payable the year following the termination of this Lease if such tax payments cannot be abated. C. Term. This Lease shall be for a term of five (5) years commencing on the 10th day of September, 1996, and shall be automatically renew for an additional five (5) year term unless either party gives written notice of cancellation at least twelve (12) months prior to termination of the initial five (5) year term. D. Improvements. The Association shall pay for all costs relating to improvement of the tennis court or access areas. Plans and specifications for improvements shall be reviewed and approved by the City Administrator. All improvements constructed to the tennis court and access areas shall become the property of the City. E. Maintenance. All modifications to the tennis court area and the access areas and all improvements made for the Association's benefit shall be at the Association' s expense and such improvements shall be maintained in a good state of repair. F. Trespass. Repeated or continuous trespass upon the remalning portions of the City property by members of the Association or their guests shall be an event of default. G. Insurance. The Association must maintain a comprehensive general liability coverage which shall include, but not be limited to, bodily injury, property damage and personal injury. The comprehensive general liability coverage shall be in an amount not less than $600,000 for each occurrence and $600,000 for personal injuries. These limits may be satisfied by the comprehensive general liability coverage or in combination with an umbrella or excess liability policy, provided coverage afforded by the umbrella or excess policy is no less than the underlying comprehensive general liability coverage. The City shall be named as an additional insured on the insurance policy. The Association must keep in force during the term of this Lease a policy covering damages to its property. The amount of coverage shall be sufficient to replace the damaged property, loss of use and comply with any other appropriate City ordinances or regulations. H. Hazardous Materials. The Association will be solely responsible for and will defend, indemnify and hold the City, its agents and employees harmless from and against 2 any and all claims, costs, and liabilities including attorney's fees and costs, arising out of or in connection with the cleanup or restoration of the tennis court area and access area resulting from the Association's use of hazardous materials; provided that the Association shall have no responsibility or liability for any condition existing prior to this Lease or for the removal of any improvements specifically authorized by the City. For purposes of this Agreement, "hazardous materials" shall be interpreted broadly and specifically includes, without limitation, asbestos, fuel, batteries, or any hazardous substance, waste or materials as defined in any federal, state or local environmental or safety law or regulations including but not limited CERCLA. The City represents that it has no knowledge of any hazardous materials on the property. I. Indemnification. The Association agrees to defend, indemnify and hold the City harmless from any and all costs, including reasonable attorney's fees, and claims of liability or loss which arise out of the Association's use and/or maintenance of the property except those which arise from the negligence, willful misconduct or other fault of the City. J. Compliance with Requlations. The Association and its members shall use the tennis court and the access areas in compliance with all of the City's regulations and in a manner that does not create a nuisance for adjoining property owners. K. Default. A violation of terms of this Lease by the Association or its members shall be an event of default. If a default occurs, the City shall provide the Association with a ten (10) day notice to cure such default. Failure to cure the default within the appropriate time shall result in an automatic termination of the Lease. L. Authoritv. Each party represents that they have been authorized to enter into this Lease Agreement. M. Governinq Law. This Lease shall be construed in accordance with the laws of the State of Minnesota. N. Severability. If any term of this Lease is found to be void or invalid, such invalidity shall not affect the remaining terms of this Lease, which shall continue in full force and effect. 3 IN WITNESS WHEREOF, the above-named parties have hereunto set their hands. b/ j/10450921. 001 9/10/96 By: By: ARDEN By: Its: 4 Brian Fritsln r City Administrator HILLS ASSOCIATION q:/J tl (l!lst~-- IrcV~~{Z"~- Sheehy Tennis Court 2007 Attachment 7 A-2: Location Maps ? 5 ~ ~ ~ ~~~~t ~~~~;~ v~'O~~~'" '" ~ "=' ::I tJ ~ '2 ~~a8.s&L~ ;;: . ;; ~ ~ > ~ '" 3! 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J "" '.- ~\{ <:.";' ".,'; (1';' :;: o .~ -;; '5 o c '0 u / ] ~ g g .~%~ E 0 0.2 ".< .=: ~ '" ~e.~ "0- o c..": <.I (J'::; ~ u 5' ~c~ ~~.~ .e e-o 0;.....::: ~,,2~ r~'~ U 0 U ~ u E .;::,l:I E g.: 8 E'- 5 .~-g~ ~ ~g ..;~N CO~ ~~ ~ ~;;::E it. ~ ~ ~.5~ .Den':::: ~.s g "E~ i:l "0 ~I"" C U > ,B....t:: .s ij (J ~ e 0 Co" Co .:!l;::-g "0<.1<': 1::":::- ~ 0 ~ ~-g ~ Co ~ ~ ~ oE., co~ ~- " :::~~ C~~ "0<.88 ~-gN oo~ ~~-t; ~~ ~ r,i-::E ~g8 ti ~o ~.~g e:: V> ~ .~ g ~ / g.'~j E > 0 .".=~ ~"3t- ..<;ic ~.9~ ::E~~ ~ j.g"@ \ ~ ~ \ is \ \ , E 5 u > ~ " :2 '-' 0: " o co Sheehy Tennis Court 2007 Attachment 7A-3: Photos of Sheehy Tennis Court Sheehy Tennis Court 2007 Attachment 7A-4: Historical Background Including: Regular City Council Minutes from June 10, 1974 Memo from City Administrator dated January 10, 1994 City Council Work Session Minutes from January 20, 1994 City Council Work Session Minutes from September 21, 1995 Memo from City Administrator dated September 9, 1996 Minutes of ROQ~lar Coun~11 Meeting Page three June 10. /974 Building Permit" fOI- reconstruction of a garage, as requested by Andrew Hopkins. Pat Sexton, owner of tho property adjacent to and south of the Hopkins property, stated that ho feels the garage reconstruction wi II be a big Improvement, and ha~ no objection to the requested variance. . After review of the plan presented, Wingert moved, seconded by CrIchton, that the Coun~11 approve the variance and Issuance of toe Bui Idlng PermIt, as requested. Motion carried ullaolmQusly. Case No. 74-16, Cyril Sheehy - Tennis Court Bul Idlnq Permit ~ Wingert reviewed the Rice Creek Watershed District stipulation that It approves the 1120 cu. yds. of fill, as proposed, providing that four (4) sq. ft. of open space be dedicated tor every I sq. ft. of filled area (cannoT build 00 open space). After discussion of the proposed tennis court location on the 8-acre site, WIngert moved, seconded by Dlmen, that the Councl I approve issuance of the Bui Idlng Permit and fill, as requested. ~'otlon carried unanimously. Case No. 74-17, McDonald's Corporation Matter deferred to Coul;cll Meeting of June 24, 1974, at request of applicant. Case No. 71-21. Arden M~nor Lighting Change WIngert reported that the PlannIng Commission recommends Council approval of the requested change In lighting In Arden Manor, and moved that the CouncIl .)pprove the substitution of Adjusta-post Manufacturing Company Sphere-lites 82301 with 12 tt. steel posts, In- stead of the originally apprvoed Weyerhauser #15S lights. Motion was seconded by Dlmen and carrIed unanimously. Case No. 73-42, L~m~L AddItion - Preliminary Plat Wingert reported that the Planning Commission does not recommend approval of the amended PrelimInary Plat of Lamettl Addition be- cause: I. Travol lane of -oad has been narrowed to 28 feet (34' required by ordInance). 2. Fire hydrant ha3 not been Indicated mId-way between cul- de-sac and Snel ling Avenue as requested. It was noted that a determination has not been made by Mr. Lamettl as to whether proposed .;treets are to be dedicated or privately ~wned. Clerk Admlnlstr~tor was requested to ask Mr. Lamettl to determine this, and, If streets are to be dedicated, request that the PrelimInary Plat be amended to Incorporate the 34 foot wide travelway requIred; hyd-ant to be indicated, whether or not streets are dedi cated. . I:lussar<j Court Councl I expressed conca~n re the adequacy of the storm sewer spl 11- way, and requested that Engineer Lund Inspect the construction for rnrnnll~nrA wi+h Rrr~ rrRAk WR~Ar~hArl OI5+ric~'s reouirements. . CITY OF ARDEN' HILlS ~ DATE: January 10, 1994 TO: Dorothy Person, City }Irlm;T\; strater l>.~J C:> . f3F" FRCM: Brian Fritsinger, Dan Winkel, Cindy Severtson SOBJECI': Sheehy Property As you 3meM', tbe City received a notice fran Mr. Jarres C. Shacker and Mr. C.E. Sheehy of an interest to donate approximately 8.57 acres of prq;;erty to the City of Arden Hills. Staff has reviewed tbe letter and tbe options available in regards to accepting this donation. . The prq;;erty consists of primarily Type III and/or Type IV ~tland as defined by tbe National Wetlands Irwento:ry. The area ~ists of a swanp/p::md, cat tails and scrub trees. A tennis court was constructed in 1974/1975 in the SW comer of the property. Permits fran Rice Creek Watershed and Depa:rtment of Natural Resources ~re obtained prior to filling the area to construct tbe tennis court. The area has no direct access or linkages with any existing park trails or system. Due to its ~tland delineation, tbe area will rrost likely rerrain open space. The soil conditions present on tbe site make it highly unlikely that a walking trail could l:e built around tbe ponel. Any filling of this area would rrost likely require wetland mitigation at a 2 to 1 ratio. At test, tbe area could l:e used. as a passive cpen area for wildlife viewing. The Sheehy's have stated that the property is unbuildable. They also have stated tr.at water occasionally flems over and under tbe tennis court. nus creates a situation of high maintenance costs on the courts. If acquired, Parks would recaTtrel1d rerroving the tennis courts which \o,Ould l:e an expense to the City. The prq;;erty is valued at $11,200 and pays annual taxes of $280.00. An estimate to derrolish and rerrove materials was prepared by ten Winkel. The tennis CDlLrt fence would l:e considered unsalvageable and would need to l:e disp:lSed of at a steel CCllp3.I1y. The CDSt to tbe City for this project \o,Ould l:e l:et~ $1500-2000. (This includes in-kind laJ:or and equiprent expense.) There WJUld l:e no l::enefit to either public wrks or Plarming/Econanic Developnent for the City to accept this prq;;erty. Parks and Recreation could use the ~tland area as passive open space. Should tbe City Council decide to accept this donation, it needs to l:e approved by Resolution and adopted by 2/3 of ll'elOOers. The resolution should express all terms in full. . BF:to . . . MINUTES CITY OF ARDEN HILLS, MINNESOTA WORKSESSION January 20, 1994 4:30 P.M. - Publio Works Garage CALL TO ORDER/ROLL CALL Pursuant to due call and notice thereof, Mayor Sather called to order the City Council worksession at 4:35 p.m. Present: Councilmembers Beverly Aplikowski, Dale Hicks, Paul Malone and Dennis Probst. Also present were: city Accountant, Terry Post; Community Planning Coordinator, Brian Fritsinger; Public Works Superintendent, Dan Winkel; Park & Recreation Director, Cynthia Severtson; city Administrator, Dorothy Person; Terry Maurer and Greg Stonehouse, City Engineers, and Recording Secretary, Renee Kaulfuss. ADOPT AGENDA MOTION: Probst moved, seconded by Aplikowski, to adopt the January 20, 1994 worksession agenda as submitted. Motion carried unanimously (5-0). DISCUSSION - SHEEHY LAND DONATION OFFER TO CITY Brian Fritsinger informed the Council that Cindy Severtson, Dan Winkel and himself examined the property. Councilmember Probst also visited the site with staff. At this time staff believes the only possible use for this land would be as park space. Ms. Severtson referred to her memo enclosed with the packet and explained that the tennis court appears to be in need of repair. Previously, the Sheehys described the court area as fairly wet and broken up. This property is by definition a wetland area. Future use of the property is limited, but a floating walkway could possibly be constructed to connect the area to a park trail. councilmember Hicks asked when the tennis court was constructed. Ms. Severtson stated it was constructed in 1974 or 1975. Councilmember Hicks questioned whether the neighbors shOUld be contacted to research if the neighborhood would be willing to preserve the tennis court and perhaps assume the cost to preserve the court. Ms. Severtson stated this could be an option if chosen by the Council. ~ . . MINUTES CITY OF ARDEN HILLS, MINNESOTA WORKSESSION SEPTEMBER 21, 1995 4:30 P.M. - CITY HALL, PUBLlC WORKS LUNCHROOM CALL TO ORDERfROLL CALL Pursuant to due call and notice thereof, Mayor Probst called to order the City Council Worksession at 4:35 P.M. Present: Councilmembers Paul Malone; Dale Hicks; City Administrator, Brian Fritsinger; Co=unity Development Director, Kevin Ringwald; Park & Recreation Director, Cynthia Walsh; Public Works Superintendent, Dwayne Stafford; City Attorney; Jerry Filla, Homeowners Association Members; Tom Fabel, Todd Albertson, and Fred Sutter; and Administrative Assistant, Shirley Evenson. Beverly Aplikowski arrived at 4:45 P.M. and Susan Keirn was absent. Adopt Agenda Motion: Mayor Dennis Probst moved and seconded by Councilmember Malone to adopt the September 21, 1995, W orksession Agenda as submitted. Motion carried unanimously (3-0). Agenda Item 3a & b _ Ti\nlliil CoiinJEindevs Triangle Two members of the Homeowners Association requested private usage of the former ~!I~ Tenn;" €Oiili by their neighborhood. After discussion of the details, including the possibility of selling the property, leasing, the cost of the restoration and up-keep of the property, Mayor Probst indicated that because the City has no immediate plans for the property, he would consider a formal request by the representatives for the use of this site. Malone and Hicks concurred. Their proposal will be discussed at a future Council Meeting after Parks and Recreation Director, Cindy Walsh, has had an opportunity for review. Ms. Walsh will also review with Attorney Filla all City parks to resolve ownership and will contact Mr. Kenna to discuss acquiring Fee Title to the Lindeys Triangle and Ridgewood Court park areas. Agenda Item 3c Pawn Shop Licensing Kevin Ringwald, Co=unity Development Director, presented matrices for identifYing the issues associated with an application for pawn shop licensing from several different co=unities. It . . CITY OF ARDEN HILLS MEMORANDUM DATE: September 9, 1996 TO: Brian Fritsinger, City Administrator FROM: C>~ Cindy S. Walsh, Parks & Recreation Director SUBJECT: Finalization of Tennis Court Lease Agreement Uackground The Arden Hills #3 Homeowners Association contacted the City to inquire if the City would lease the tennis court area to the Association. The Association would be responsible for maintenance and use of the area. The City Council received a draft of the lease agreement at the August 19, 1996 Council work session. With the exception of a few minor changes, the lease appeared to be acceptable to the Council. I.ease Agreement The association will pay the City of Arden Hills $10.00 annually to rent the facility. The lease agreement will be for a term oftive years and will automatically renew for an additional five years unless either party gives written notice of cancellation at least 12 months prior to termination of the initial five year lease. The Association will be responsible for the maintenance of the facility. The facility will be leased from the City in its present condition. All improvement costs will be the responsibility of the Association. A copy of the revised lease is enclosed for your review. The Association has had an opportunity to review the lease. Representatives from the Association will be in attendance at the City Council Meeting to answer any questions the Council may have. Recommendation Staff recommends approval of the lease of the former ieiliiis coUrt to the Arden Hills #3 Homeowners Association. Council should direct staff to execute all appropriate documents. Enclosure: I Sheehy Tennis Court 2007 Attachment 7 A-5: Letter from Arden Hills Association #3 requesting new lease agreement dated December 7, 2006 ARDEN HILLS NO.3 ,\SSOCI,\TlON December 7, 2006 Karen Barton Community Development Director City of Arden Hills 1245 West Hi"hwa\' 36 b . ,\rden I-Iills, IVIN 55112-5743 I<.arcn, Per your recommendation, and on behalf of the Arden IIills No. 3 Association I am sending you this letter of intent to enter into a lease agreement for a tennis court and related facilities located on Lot 3, J3lock 8, of the :\rden Hills No.3 subdivision that is currently owned by the City of Arden Hills. For the last IO years we have had a lease agreement for the above listed property with the City of Arden I-Iills. That agreement expired October 3, 2006. \Ve would like to enter into a similar agreement for the next 10 years. A copy of the previous agreement has been attached for your review. Please share this letter with the appropriate city oHicials and advise me of the next steps required for renewing a lease agreement. Respectfully Submitted. {/u~ Todd Albertson Board IVfcmber Arden Hills No.3 Association 1543 GLL.:N HILL RD . ARDEN IllLLSjI\IN . 55112 PHONE (J-IOilJE): 651-6.36-9398 . (WORK): 651-731-5739 Sheehy Tennis Court 2007 Attachment 7A-6: Temporary restated and amended lease agreement dated April 9, 2007 LEASE AGREEMENT 1.0 Parties. This agreement is dated the q10 day of P'pri \ , 2007, and is entered into by and between the City of Arden Hills, a Minnesota municipal corporation ("City") and the Arden Hills III Association, a Minnesota non-profit corporation herein ("Association"). 2.0 Recitals. A. The City is the fee owner of the following described property situated in Ramsey County, Minnesota to-wit: Lot 3, Block 8, Arden Hills No.3, except that part described as follows: Beginning at the Northeast corner of said Lot 3; thence West along the North line of said Lot 3 for 300 feet; thence South at right angles for 300 feet; thence East parallel to the North line of said Lot 3 for 270 feet, more or less, to the Ease line of said Lot 3; thence North along the East line of said Lot 3 to the point of beginning (herein the "Property"). B. A portion of the Property is occupied by a tennis court and fencing; and by an access to the tennis court area all is highlighted on Exhibit A attached and incorporated ("Premises"). C. The Association wishes to lease the Premises from the City. D. Pending its review of the City's park plan and park programs, the City is willing to Lease the Prerryises to the Association. . ,,' . 3.0 Terms and Conditions. NOW THEREFORE, in consideration of the mutual undertakings herein expressed, the City and Association agree as follows: A. Premises. Association Exhibit A. The City hereby leases to the Association and the Leases from the City the Premises as illustrated on B. Rent. The Association shall pay the CityllI0.~ dollars upon execution of this Lease by the parties. C. Term. This Lease shall commence on the date upon which is executed by the parties and shall continue until the day of ,2007. D. Improvements. The Association shall pay for all costs relating to the improvements to the tennis court or access areas. Plans and specifications for the improvements shall be reviewed and approved by the City Administrator. All improvements constructed to the tennis court and access areas shall become the property of the City. E. Maintenance. All modifications to the tennis court area and the access areas and all improvements made for the Association's benefit shall be at the Association's expense and such improvements shall be maintained in a good state of repair. F. Trespass. Repeated or continuous trespass upon the remaining portions of the City property.by members of the Association or their guests shall be an event of default. G. Insurance. The Association must maintain a comprehensive general liability coverage which shall include, but not limited to, bodily harm, property damage and personal injury. The comprehensive general liability coverage shall be in an amount not less than $600,000 for each occurrence and $600,000 for personal injuries. These limits may be satisfied by the comprehensive coverage liability policy, provided coverage umbrella or excess liability policy, provided coverage afforded by the umbrella or excess policy is no less than the underlying comprehensive general liability coverage. The City shall be named as an additional insured on the insurance policy. The Association must keep in force during the term of this Lease a policy covering damages to its property. The amount of coverage shall be sufficient to replace the damaged property, loss of use and comply with any other appropriate City ordinances or regulations. H. Hazardous Materials. The Association will be solely responsible for and will defend, indemnify and hold the City, its agents and employees from and against any and all claims, costs, and liabilities including attorney's fees. .and costs, arising out of or in connection with the cleanup or restoration of the tennis court area and access area resulting from the Association's use of hazardous materials; provided that the Association shall have no responsibility or liability for any condition existing prior to this Lease or for the removal of any improvements specifically authorized by the City. For purposes of this agreement, "hazardous materials" shall be interpreted broadly and specifically includes, without limitation, asbestos, fuel, batteries, or any hazardous substance, waste or ,materials as defined in any federal, state or local environmental or safety law or regulations including but r:ot;liry1ited CERCLA. The City represents that it has no knowledge of any hazardous materials on the property. I. Indemnification. The Association agrees to defend, indemnify and hold the City harmless from any and all costs, including reasonable attorney's fees, and claims of liability or loss which arise out of the Association's use and/or maintenance of the property except those which arise from the negligence, willful misconduct or other fault of the City. As used in the previous sentence the term "Association's Use" means the Association, members of the Association, guests of members of the Association and invitees of members of the Association. J. Compliance with Reoulations. The Association and its members shall use the tennis court and the access areas in compliance with all of the City's regulations and in a manner that does not create a nuisance for adjoining property owners. K. Default. A violation of term~ of this Lease by the Association or its members shall be an evenfof'default. If a default occurs, the City shall provide the Association of a ten (10) day notice to cure such default. Failure to cure the default within the appropriate time shall result in an automatic termination of the Lease. L. Authoritv. Each party represents that they have been authorized to enter into this Lease Agreement. M. Governino Law. This Lease shall be construed in accordance with the laws of the State of Minnesota. N. Severabilitv. If any term of this Lease is found to be void or invalid, such the invalidity shall not affect the remaining terms if this Lease, which shall continue in full force and effect. . ~"i.' 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