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HomeMy WebLinkAboutRobert Klingenberg-11/14/2011BUSINESS PROPERTY LEASE This Business Property Lease (the "Lease") is made and entered into as of December 1, 2011, by and between City of Waterloo, Iowa (the "Landlord"), whose address for the purpose of this Lease is 715 Mulberry Street, Waterloo, Iowa, 50703, and Robert Klinqenberg (the "Tenant"), whose address for the purpose of this Lease is 1111 Bourland Street, Waterloo, Iowa, 50702. 1. PREMISES AND TERM. The Landlord, in consideration of the rents herein reserved and of the agreements and conditions herein contained, on the part of the Tenant to be kept and performed, leases unto the Tenant and Tenant hereby rents and leases from Landlord, according to the terms and provisions herein, the following described real estate, situated in Black Hawk County, Iowa: Land and building 1100 Sycamore Street, Waterloo, Iowa with the improvements thereon and all rights, easements, and appurtenances thereto belonging, for a term of one (1) year, commencing on the first day of the Lease term, which shall be on the 1st day of December, 2011 , and ending at midnight on the last day of the Lease term, which shall be on the 1st day of December, 2012 , upon the condition that the Tenant pays rent therefor, and otherwise performs as in this Lease provided. 2. RENTAL. (a) RENT. Tenant agrees to pay to Landlord as rental for said term, as follows: $ 1.00 per year, in advance, the first such rent payment becoming due on December 1, 2011, and the same amount, per year, in advance, on the 1st day of each month after the first month of the Lease term, during the term of this Lease. (b) SECURITY DEPOSIT. In addition to the above monthly rentals, Tenant shall also pay a security deposit in the amount of $ 0 , due and payable upon execution of this Lease. (c) OTHER. All sums shall be paid at the address of Landlord, as above designated, or at such other place as the Landlord may, from time to time, previously designate in writing. Delinquent payments shall draw interest at 18% per annum, compounded monthly, from the due date, until paid. 3. POSSESSION. Tenant shall be entitled to possession on the first day of the term of this Lease, and shall yield possession to the Landlord at the time and date of the close of this Lease term, except as herein otherwise expressly provided. Should Landlord be unable to give possession on said date, Tenant's only damages shall be a rebating of the pro rata rental. 4. USE OF PREMISES. Tenant covenants and agrees during the term of this Lease to use and to occupy the leased premises only for general office and commercial purposes consistent with Tenant's pre -Lease activities on the premises, or such other lawful use as Landlord may permit. Landlord has not reviewed zoning or other applicable legal requirements or limitations imposed by any local, state, or federal governmental authority that may affect Tenant's use of the premises, and Landlord makes no representation or warranty that the premises is suitable for Tenant's intended use. Tenant shall conduct its own review of applicable law and shall be solely responsible for meeting all legal requirements, including but not limited to building permits, licensure, or governmental approval. 5. QUIET ENJOYMENT. Landlord covenants that its estate in said premises is fee simple and that the Tenant on paying the rent herein reserved and performing all the agreements by the Tenant to be performed as provided in this Lease, shall and may peaceably have, hold and enjoy the demised premises for the term of this Lease free from molestation, eviction or disturbance by the Landlord or any other persons or legal entity whatsoever. Landlord shall have the right to mortgage all of its right, title, interest in said premises at any time without notice, subject to this Lease. 6. CARE AND MAINTENANCE OF PREMISES. (a) Tenant takes said premises in their present condition except for such repairs and alterations as may be expressly herein provided. (b) LANDLORD'S DUTY OF CARE AND MAINTENANCE. Landlord will not replace and repair any part of the building or any part of the leased premises. (c) TENANT'S DUTY OF CARE AND MAINTENANCE. Tenant shall, after taking possession of said premises and until the termination of this Lease and the actual removal from the premises, at its own expense, care for, maintain, and repair the exterior and interior parts of said premises, in a reasonably safe and serviceable condition consistent with its own needs and pursuant to applicable law, ordinance or regulation. Tenant will fumish its own interior and exterior decorating. Tenant will not permit or allow said premises to be damaged or depreciated in value by any act or negligence of the Tenant, its agents or employees. Landlord shall have the right to approve any contractors hired by Tenant to maintain or repair the premises and to approve any work done by such contractors, which right shall not be unreasonably exercised. Tenant agrees to keep faucets closed so as to prevent waste of water and flooding of premises. Tenant agrees to maintain adequate heat to prevent freezing of pipes. Tenant at its own expense may install floor covering and will maintain such floor covering in good condition. Tenant will be responsible for the plate glass in the windows of the leased premises. Tenant shall make no structural alterations or improvements without the Landlord's prior written approval of the plans and specifications therefor. (d) Tenant will make no unlawful use of said premises and agrees to comply with all valid regulations of the Board of Health, municipal ordinances, the laws of the State of Iowa and the federal govemment, but this provision shall not be construed as creating any duty by Tenant to members of the general public. Tenant will not allow trash or debris of any kind to accumulate on said premises in, on, or about the premises, and it will remove same from the premises at its own expense. Tenant also agrees to timely remove snow and ice and other obstacles from the sidewalk, paved areas, and parking areas on or abutting the premises. The provisions of this paragraph shall not be construed as creating any duty by Tenant to members of the general public, but only as a duty by Tenant to and for the sole benefit of Landlord. (e) Tenant shall have responsibility for and perform all acts necessary for compliance with the Americans with Disabilities Act. 7. FACILITY SERVICES. (a) UTILITIES AND SERVICES. Tenant, during the term of this Lease, shall pay before delinquency all charges for use of telephone, water, sewer, gas, electricity, power, garbage or trash disposal, and all other utilities or services of whatever kind and nature which may be used in or upon the leased premises. (b) AIR CONDITIONING AND HEATING equipment shall be furnished initially at the expense of Landlord, and the cost of maintenance or replacement thereof shall be as set forth in paragraph 6(c) above. (c) JANITOR SERVICE shall be furnished at the expense of Tenant. 8. END OF TERM. (a)SURRENDER OF PREMISES. Tenant agrees that upon the termination of this Lease it will surrender, yield up 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 not covered by insurance. (b) REMOVAL OF PROPERTY. Tenant may, at the expiration of the term of this Lease, if Tenant is not in default hereunder, remove any equipment and trade fixtures which said Tenant has installed in the leased premises, providing said Tenant repairs any and all damages caused by removal. For purposes of this Lease, sinks, toilets, and other plumbing fixtures do not constitute trade fixtures. Any and all leasehold improvements made by Tenant shall remain on the premises as the property of Landlord. (c) HOLDING OVER. Continued possession beyond the expiratory date of the term of this Lease by the Tenant, coupled with the receipt and acceptance of the specified rental by the Landlord (and absent a written agreement by both parties for an extension of this Lease, or for a new lease) shall constitute a month-to-month extension of this Lease. 9. ASSIGNMENT AND SUBLETTING. Tenant may not assign this Lease or sublet the premises or any part thereof without the Landlord's written permission. 10. PROPERTY TAXES. Tenant shall pay all real estate taxes and special assessments with respect to the premises, if any. Tenant shall pay to Landlord, concurrently with rent and as additional rent, an amount equal to one - twelfth (1/12th) of annual real estate taxes, if any. Tenant shall timely pay all taxes, assessments, or other public charges levied or assessed by lawful authority against its personal property on the premises during the term of this Lease. Each party reserves the right to protest any assessment of taxes. 11. INSURANCE. (a) Landlord and Tenant will each keep its respective property interests in the premises and its liability in regard thereto, and the personal property on the premises, reasonably insured against hazards and casualties: that is, fire and those items usually covered by extended coverage; and Tenant will procure and deliver to 2 Landlord a certification from the respective insurance companies to that effect. Such insurance shall be made payable to the parties hereto as their interests may appear, except that Tenant's share of such insurance proceeds are hereby assigned and made payable to the Landlord to secure rent or other obligations then due and owing by Tenant to Landlord. To the extent permitted by their policies, Landlord and Tenant waive all rights of recovery against each other. (b) Tenant further covenants and agrees that it will at its own expense procure and maintain combined single limit liability, bodily injury, and property damage insurance in the amount of not less than $1,000,000. Such insurance shall cover liability arising from premises operations, independent contractors, personal injury, products, and completed operations and liability assumed under an insured contract, including but not limited to the activities of Tenant, its employees and agents. Certificates or copies of said policies, including Landlord as an additional insured, and providing for thirty (30) days' advance notice to the Landlord before cancellation, shall be delivered to the Landlord no later than the date that Tenant begins to occupy the leased premises. A renewal certificate shall be provided to Landlord prior to expiration of any policy. (c) Tenant will not do or omit the doing of any act which would vitiate any insurance, or increase the insurance rates in force upon the real estate improvements on the premises or upon any personal property of the Tenant upon which the Landlord by law or by the terms of this Lease, has or shall have a lien. (d) 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 premises are a part, due to increased risks or hazards resulting from Tenant's use of the premises otherwise than as herein contemplated and agreed. (f) INSURANCE PROCEEDS. Landlord shall settle and adjust any claim against any insurance company under its said policies of insurance for the premises, and said insurance monies shall be paid to and held by the Landlord to be used in payment for cost of repairs or restoration of damaged building, if the destruction is only partial. 12. INDEMNITY. Except as to any negligence of the Landlord or its agents in the performance of any obligation of Landlord under this Lease, and to the extent not covered by insurance maintained by Landlord or Tenant, Tenant will protect, indemnify, and save harmless the Landlord from and against any and all Toss, costs, damage, and expenses of any kind whatsoever, including but not limited to attorneys' fees and expenses, occasioned by, or arising out of, any accident or other occurrence causing or inflicting injury and/or damage to any person or property, happening or done in, upon, or about the leased premises, or due directly or indirectly to the tenancy, use, or occupancy thereof, or any part thereof by the Tenant or any person claiming through or under the Tenant, including but not limited to suppliers and patrons or Tenant or persons who suffer injury, loss, or damage directly or indirectly by the acts or omissions of such persons. Prior to the commencement date of this Lease, Tenant has occupied the premises as a tenant and has had the opportunity to test the premises for toxic or hazardous substances, mold, and other environmental matters, and Tenant agrees that the indemnities set forth in this paragraph shall include but not be limited to any claims, demands, losses, or causes of action arising from or relating to such matters. The provisions of this paragraph shall survive the expiration, abandonment, or termination of this Lease. 13. FIRE AND CASUALTY. (a) PARTIAL DESTRUCTION OF PREMISES. In the event of a partial destruction or damage of the leased premises which causes a business interference by preventing the conduct of a normal business operation, and which damage is reasonably repairable within thirty (30) days after its occurrence, this Lease shall not terminate but the rent for the leased premises shall abate during the time of such business interference. (b) ZONING. If the zoning ordinance of the municipality in which this property is located makes it impossible for Tenant, using diligent and timely effort, to obtain necessary permits and to repair and/or rebuild so that Tenant is able to conduct its business on these premises, then such partial destruction shall be treated as a total destruction as in the next paragraph provided. (c) TOTAL DESTRUCTION OF BUSINESS USE. In the event of a destruction or damage of the leased premises, including the parking area (if a parking area is a part of the subject matter of this Lease), so that Tenant is not able to conduct its business on the premises, and which damages cannot be repaired within thirty (30) days, this Lease may be terminated at the option of either the Landlord or Tenant. Such termination in such event shall be effected by written notice of one party to the other, within twenty (20) days after such destruction. Tenant shall surrender possession within ten (10) days after such notice issues and, each party shall be released from all future obligations hereunder, Tenant paying rental and triple net charges pro rata only to the date of such destruction. In 3 the event of such termination of this Lease, Landlord at its option may rebuild or not, according to its own wishes and needs. 13.1 LOSS OF NON-PROFIT STATUS. If Tenant fails to obtain, renew, or keep in force for any reason whatsoever, including but not limited to the suspension, revocation, or non -renewal by governing authority, any govemmental license or authorization necessary to operate its Program on the premises, then Tenant's duties under this Lease shall be unaffected thereby and Tenant shall be obligated to continue its performance hereunder. 14. CONDEMNATION. (a) DISPOSITION OF AWARDS. Should the whole or any part of the demised premises be condemned or taken by a competent authority for any public or quasi -public use or purpose, each party shall be 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. (b) DATE OF LEASE TERMINATION. If the whole of the demised premises shall be so condemned or taken, the Landlord shall not be liable to the Tenant except and as its rights are preserved as in paragraph 14(a) above. 15. TERMINATION OF LEASE AND DEFAULTS OF TENANT. (a) TERMINATION UPON EXPIRATION OR UPON NOTICE OF DEFAULTS. This Lease shall terminate upon expiration of the demised term. Tenant shall be in default of this Lease if (i) Tenant fails to make any payment of rental herein when such payment becomes due, (ii) Tenant breaches any other terms or provision of this Lease, (iii) Tenant abandons the premises by failure to engage in its usual and customary business activities on the premises for more than fifteen (15) consecutive business days, or (iv) police are called to the leased premises more than three times in any one-week period or more than eight times in any one-month period. Upon default in payment of rental herein or upon any other default by Tenant in accordance with the terms and provisions of this Lease, this Lease may at the option of the Landlord be canceled and forfeited, provided, however, before any such cancellation and forfeiture except as provided in 15(b) below, Landlord shall give Tenant a written notice specifying the default, or defaults, and stating that this Lease will be canceled and forfeited ten (10) days after the giving of such notice, unless such default, or defaults, are remedied within such grace period. As an additional optional procedure or as an alternative to the foregoing (and neither being exclusive of the other), Landlord may proceed as provided in paragraph 21 below. (b) BANKRUPTCY OR INSOLVENCY OF TENANT. In the event Tenant is adjudicated a bankrupt or in the event of a judicial sale or other transfer of Tenant's leasehold interest by reason by any bankruptcy or insolvency proceedings or by other operation of law, but not by death, and such bankruptcy, judicial sale, or transfer has not been vacated or set aside within ten (10) days from the giving of notice thereof by Landlord to Tenant, then and in any such events Landlord may, at its option, immediately terminate this Lease and, upon giving of ten (10) days' written notice by Landlord to Tenant, re-enter said premises, all to the extent permitted by applicable law. (c) In (a) and (b) above, waiver as to any default shall not constitute a waiver of any other or subsequent default. (d) Acceptance of keys, advertising, and re -renting by the Landlord upon the Tenant's default shall be construed only as an effort to mitigate damages by the Landlord, and not as an agreement to terminate this Lease. 16. RIGHT OF EITHER PARTY TO MAKE GOOD ANY DEFAULT OF THE OTHER. If default shall be made by either party in the performance of, or compliance with, any of the terms, covenants, or conditions of this Lease, and such default shall have continued 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, covenant, or condition, or make good such default, and any amount advanced shall be repaid forthwith on demand, together with interest at the rate of 10% per annum from the date of advance. 17. SIGNS. (a) Tenant shall have the right and privilege, at its sole expense, of attaching, affixing, painting, or exhibiting signs on the leased premises, provided only (1) that any and all signs shall comply with the ordinances of the municipality in which the property is located and with the laws of the State of Iowa; (2) such signs shall not change the structure of the building; (3) such signs if and when taken down shall not damage the building; and (4) such signs shall be subject to the prior written approval of the Landlord, which approval shall not be unreasonably withheld. Landlord hereby approves Tenant's current signage on the premises. 4 (b) Landlord shall have the right to maintain in the windows or on the building or on the premises either or both a "For Rent" or "For Sale" sign and Tenant will permit, at such time, prospective tenants or buyers to enter and examine the premises. 18. MECHANIC'S LIENS. Neither the Tenant nor anyone claiming by, through, or under the Tenant, shall have the right to file or place any mechanic's lien or other lien of any kind or character whatsoever upon said premises or upon any building or improvement thereon, or upon the leasehold interest of the Tenant therein, and notice is hereby given that no contractor, subcontractor, or anyone else who may furnish any material, service, or labor for any building, improvements, alteration, repairs or any part thereof, shall at any time be or become entitled to any lien thereon, and for the further security of the Landlord, the Tenant covenants and agrees to give actual notice thereof in advance to any and all contractors and subcontractors who may furnish or agree to furnish any such material, service, or labor. 19. LANDLORD'S LIEN AND SECURITY INTEREST. Said Landlord shall have, in addition to the lien given by law, a security interest as provided by the Uniform Commercial Code as codified in the State of Iowa upon all personal property, and all substitutions, replacements, accessories, and accessions thereto and thereof, kept and used on the leased premises by Tenant. Landlord may proceed at law or in equity with any remedy provided by law or by this Lease for the recovery of rent or for termination of this Lease because of Tenant's default in its performance. 20. SUBSTITUTION OF EQUIPMENT, MERCHANDISE. ETC. The Tenant shall have the right, from time to time during the term of this Lease or renewal thereof, to sell or otherwise dispose of any personal property of the Tenant situated on the leased premises, when in the judgment of the Tenant it shall have become obsolete, outwom, or unnecessary in connection with the operation of Tenant's business on the leased premises; provided, however, that the Tenant shall, in such instance and at its own expense, substitute for such items of personal property so sold or otherwise disposed of, a new or other item in substitution thereof, in like or greater value and adopted to the affixed operation of the business upon the leased premises (unless no substituted article or item is necessary). 21. RIGHTS CUMULATIVE. The various rights, powers, options, elections, and remedies of either party as provided in this Lease shall 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 shall 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. 22. NOTICES AND DEMANDS. Notices as provided for in this Lease shall be given to the respective parties hereto at the respective addresses designated on page one of this Lease unless either party notifies the other, in writing, of a different address. Without prejudice to any other method of notifying a party in writing or making a demand or other communication, such message shall be considered given under the terms of this Lease when sent, addressed as above designated, postage prepaid, by registered or certified mail, return receipt requested, by the United States mail and so deposited in a United States mail box. 23. BINDING EFFECT. Each and every covenant and agreement herein contained shall extend to and be binding upon the respective heirs, personal representatives, successors, and assigns of the parties hereto; except that if any part of this Lease is held in joint tenancy, the successor in interest shall be the surviving joint tenant. 24. CHANGES TO BE IN WRITING. None of the covenants, provisions, terms, or conditions of this Lease to be kept or performed by Landlord or Tenant shall be in any manner modified, waived, or abandoned, except by a written instrument duly signed by the parties and delivered to the Landlord and Tenant. This Lease contains the entire agreement of the parties and supersedes any and all discussions, negotiations, understandings, or agreements pertaining to the subject matter hereof. 25. CONSTRUCTION. Words and phrases herein, including acknowledgment hereof, shall be construed as in the singular or plural number, and as masculine, feminine, or neuter, according to the context. 26. OTHER. (a) Notwithstanding any terms of this Lease to the contrary, Tenant shall be responsible for all cost and expense of repair, upkeep, maintenance, and restoration of the leased premises. Landlord shall have no responsibility to incur any cost or expense with respect to the leased premises. (b) This Lease is subject to approval by the Waterloo City Council. 5 IN WITNESS WHEREOF, the parties hereto have executed this Business Property Lease by their duly authorized representatives as of the date first written above. LANDLORD City of Waterloo, Iowa By: ck Clark, ayor 6 TENANT