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HomeMy WebLinkAboutCouncil Packet - 10/27/2014BUILDING & GROUNDS COMMITTFF October 27, 2014 3:50 p.rn. Harold E. Getty Council Chambers Roll Call: Members: Chairperson David Jones Pat Morrissey Steve Schmitt Approval of Agenda, as proposed. NEW BUSINESS 1. Request by American Pattern & Storage for interest in former Food Bank building for future project — Submitted by Noel Anderson, Community Planning & Development Director. 2. Request by Jim Chizek to rent approximately 196 square feet or 14' x 14' square feet of storage space for $140 per month with utilities included located at 1112 Sycamore (former Black Hawk Sprinkler Building) — Submitted by Noel Anderson, Community Planning & Development Director. ADJOURNMENT Suzy Schares, CMC City Clerk/Human Resource Director CITY OF WATERLOO, IOWA COMMUNITY PLANNING AND DEVELOPMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4366 Fax (319) 291-4262 CITY OF WATERLOO Committee Communication Building & Grounds Committee Meeting: October 27, 2014 Prepared: October 22, 2014 Dept. Head Signature: Noel Anderson, Community Planning & Development Director # of Attachments: 2 SUBJECT: Request by American Pattern & Storage for interest in former Food Bank building for future project Submitted by: Noel Anderson, Community Planning & Development Director Recommended City Council Action: We ask that the Building & Grounds Committee recommend the City enter into proposed lease with American Pattern & Storage for site noted above. Summary Statement: As you may recall, the City acquired the former Food Bank building as a part of the overall Human Services Campus development. The City has no immediate plans for the former food bank site, and there is long term planning discussions underway for its future use — residential or commercial/ industrial. Currently the east side of East 11th Street is designated for commercial and industrial, and the west side of East 11th Street is designated for residential. American Pattern & Storage is proposing a 3-year lease of the site for $600/ month to rent the 7,000 sq. ft. of building space. As a part of the agreement, American Pattern & Storage would complete interior demolitions on the 10,000 sq. ft. portions of the building, over that next 2-3 years. American Pattern & Storage would pay all utilities for building, and would be installing a larger overhead door as a part of their use. The lease would also include their first right to rent out the 10,000 sq. ft. portions when demolition is available, and/or buy the site from the City of Waterloo at end of 3-year period or when City would decide to potentially sell the site. Staff believes this to be a good lease agreement for the City of Waterloo. American Pattern & Storage is a growing company in the Waterloo community, so we believe they may be an ideal candidate to located and expand in the Rath area. The 3-year lease arrangement gives both parties the ability to see how they like the site, how the business is working out in this area, and what the future use of the site may be best suited for long term. The $600/month amount would appear fair given the CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer condition of the building, and given that the demolition work to be provided by American Pattern & Storage is estimated at over $45,000. Expenditure Required: NA Source of Funds: NA Policy Issue: Sale of Property/ Economic Development Alternative: NA Background Information: The former Food Bank building is located within the former Rath area. Staff is continuously working to redevelop former industrial and brownfield sites in this general vicinity, and believe this lease arrangement may help to bring a new growing employer to this area of the community. If that does not work, it will at least work to improve the buildings in this area and find out if they can be used for continued industrial warehousing, etc. And the 3-year lease gives the City time to determine the highest and best use of this site. NOEL ANDERSON From: Mike Kuebler <mkuebler13@gmail.com> Sent: Sunday, October 12, 2014 8:02 PM To: NOEL ANDERSON Subject: Food Bank Building 11 Oct 14 To: Noel Anderson City of Waterloo Iowa From: Mike Kuebler American Pattern Storage Subject: Old Food Bank Buildings Noel, After taking a quick tour of the old Food Bank buildings with Craig I would like to run a proposal by you and see if the city would have any interest. While our first choice would have been to purchase a building our current options are limited and we don't want to rush into a purchase that isn't the best fit for our needs. Because of that the renting of the old Food Bank building is something we would like to explore. Initially I would like to see if our proposal is something you would consider and, if so, then we can work out the details and related legal documents later. PROPOSAL: 1 American Pattern Storage would rent the 7000 square foot half of the block wall building for $600 per month. Included in the agreement is that we (American Pattern) would gut and demo the interior portion of the 10,000 square foot side over the next 2-3 years. Upon completion of the demo both halves of the building would basically be an open building. No interior walls, offices, break rooms, etc. American Pattern will provide, at our expense, the labor for the demolition. Included, at our expense, will be electricians, plumbers, and general construction contractors. We would also install a larger overhead door that would allow larger trucks to drive in. This too would be done at our expense. If agreed upon we would want the city to provide a large dumpster on site that could be used throughout the demo project. Once we would fill it we could call and have it emptied and returned so we could repeat the process. We would not require heat in the building for our needs or for the demolition project. Most would be completed during warmer months. We would also want first option on renting the 10,000 square foot portion upon completion of the demo. Finally we would hope that IF, down the road, the city would decide to sell the property that American Pattern Storage would be given the first option to purchase. Details such as length of contract the city is willing to commit to can be discussed later if this is something that might be of interest. We appreciate your considering this offer and look forward to your reply and possible further discussions. Please get back to me with any related questions you might have. Sincerely, Mike Kuebler American Pattern Storage 2 . 319-415-5915 mkuebler134mial.com 3 BUSINESS PROPERTY LEASE This Business Property Lease (the "Lease") is made and entered into as of , 2014, by and between City of Waterloo, Iowa ("Landlord"), whose address for the purpose of this Lease is 715 Mulberry Street, Waterloo, Iowa, 50703, and American Pattern Storage, L.L.C., an Iowa limited liability company (the "Tenant"), whose address for the purpose of this Lease is 606 Fairview Avenue, Waterloo, IA 50703. 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, to wit: Approximately 7,000 square feet (the "Premises") of the building located at 106 E. 11th Street, Waterloo, Iowa, situated upon real estate (the "Property") consisting of portions of Lots 3, 7 and 8, in Auditor's Consolidated Plat of Waterloo, as more particularly described in the deed filed as Doc. No. 2014-2183; with the improvements thereon and all rights, easements, and appurtenances thereto belonging, for a term commencing upon approval of this Lease by the Waterloo City Council and continuing until and including October 31, 2017, upon the condition that the Tenant pays rent therefor, and otherwise performs as provided in this Lease. Tenant shall have shared use of the exterior portions of the Property in common with Landlord and other authorized tenants and users of the Property. 2. RENTAL. (a) RENT. Tenant agrees to pay to Landlord as rental for said term, as follows: $ 600.00 per month, in advance, the first such rent payment becoming on execution of this Lease, and the same amount, per month, in advance, on the 1st day of each month after the first month of the Lease term, during the term of this Lease. If less than a full month, rent for the first month of the Lease term will be prorated. (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 12% 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 Premises only for activities and purposes consistent with and incidental to operation of a pattern and mold production business. 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 the Property 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 Premises for the term of this Lease free from molestation, eviction or disturbance by the Landlord or any other persons or legal entity whatsoever. (But see paragraph 14, below.) Landlord shall have the right to mortgage all of its right, title, interest in the Property at any time without notice, subject to this Lease. 6. CARE AND MAINTENANCE OF PREMISES. Each party shall perform its responsibilities of repair and maintenance to the end that the Premises will be kept in a safe and serviceable condition. Neither party will permit nor allow the Premises to be damaged or depreciated in value by any act, omission, or negligence of itself, its agents or employees. 1 (a) Tenant takes the Premises in their present condition, AS IS, except for such repairs and alterations as may be expressly herein provided. (b) LANDLORD'S DUTY OF CARE AND MAINTENANCE. Landlord purchased the Property for economic or community development purposes, intends to demolish the Premises in aid of such purposes, and intends that Tenant shall not occupy the Premises beyond the lease term. Accordingly, Landlord shall have no duty whatsoever to care for or maintain the Premises or any part thereof. (c) TENANT'S DUTY OF CARE AND MAINTENANCE. Tenant shall, after taking possession of the 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 the Premises in a reasonably safe and serviceable condition consistent with its own needs and pursuant to applicable law, ordinance or regulation. Tenant will furnish its own interior and exterior decorating. 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 Premises and for maintaining the sidewalks and parking areas on and abutting the 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 the 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 government, but this provision shall not be construed as creating any duty by Tenant to members of the general public. If Tenant, by the terms of this Lease is leasing premises on the ground floor, it will not allow trash of any kind to accumulate on the Property, including but not limited to the parking or driving area and yards in front, side or rear thereof, and it will remove same from the Property at its own expense. Tenant also agrees to remove snow and ice and other obstacles from the sidewalk and parking areas on or abutting the Property and to be responsible for all snow removal. (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 Premises. (b) AIR CONDITIONING AND HEATING EQUIPMENT. Tenant takes such equipment as may now be located on or installed in the Premises in its AS -IS condition, and Tenant shall be responsible to maintain, repair, and replace same according to Tenant's needs. (c) JANITOR SERVICE shall be furnished at the expense of Tenant. 8. END OF TERM; OPTION TO RENEW. (a) EXPIRATION; RENEWAL. This Lease shall terminate upon expiration of the original term. Tenant shall have the option to renew this Lease for an additional 3-year term, provided that Tenant has completed the demolition activities described in paragraph 25(b) below. Tenant shall exercise its option by delivery of written notice to Landlord at least sixty (60) days before expiration of the original term. Upon renewal, the Lease shall be deemed amended to include the additional 10,000 square feet of space in the building and to increase the monthly rent to $1,400 per month, but otherwise the terms of this Lease shall continue in effect without modification. (b) SURRENDER OF PREMISES AT END OF TERM. Tenant agrees that upon the termination of this Lease it will surrender, yield up and deliver the 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. [See also 11(a) and 11(e) below] (c) REMOVAL. Tenant may, at the expiration of the term of this Lease, or renewal or renewals thereof or at a reasonable time thereafter, if Tenant is not in default hereunder, remove any equipment which said Tenant has installed in the Premises, providing said Tenant repairs any and all damages caused by removal and leaves the Premises in a condition that is secure from entry by third parties. 2 (d) HOLDING OVER. Tenant shall not continue to occupy the Premises beyond the Lease term without the express prior written consent of Landlord. 9. ASSIGNMENT AND SUBLETTING. Tenant may not assign this Lease or sublet the Premises or any part thereof. Notwithstanding anything to the contrary in this paragraph, Tenant may assign this Lease to the surviving entity in connection with arty corporate merger, consolidation or reorganization to which Tenant is a party, provided that Tenant notifies Landlord of such assignment no later than the effective date of the transaction. 10. PROPERTY TAXES. The parties acknowledge that the Property is currently exempt for property tax purposes but that it shall become taxable by virtue of this Lease. Until actual tax figures are determined in the future, Tenant agrees to make a payment in lieu of taxes to cover the estimated, anticipated tax liability that will accrue hereby. With each monthly payment of rent, Tenant shall remit the sum of $ 211.17 to cover the payment in lieu of taxes. If a property tax statement is issued during the term of this Lease, then such payment shall be adjusted to be an amount equal to one -twelfth (1/12th) of the annual tax. Tenant shall also 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. Tenant shall pay all special assessments that would become delinquent if not paid 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 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 commercial general liability insurance in the amount of not less than $1,000,000 per occurrence and $2,000,000 annual aggregate. 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, naming the Landlord as an additional insured, and providing for thirty (30) days' advance notice to the Landlord before cancellation, shall be delivered to the Landlord within no later than the date that Tenant begins to occupy the 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 Property 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 the Premises and on the building of which the 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. 12. INDEMNITY. Except as to any negligence of the Landlord or its agents in the performance of any obligation of Landlord under this Lease, Tenant will defend, indemnify, and hold harmless the Landlord from and against any and all loss, costs, damage, 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 Property, 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. Prior to occupancy of the Premises hereunder, Tenant 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. 12.1 ENVIRONMENTAL. Tenant represents and agrees as follows: 3 (i) During the Lease term, Tenants use of the Premises will not include the use of any hazardous substances except those identified in Exhibit A attached hereto, or substantially similar substances intended for the same purpose. Tenant generally will not keep an inventory of such substances on the Premises in greater quantities than are stated in such letter and will use same in accordance with manufacturer recommendations or directions. (ii) Tenant, at its sole cost and expense, agrees to remediate, correct, or remove from the Premises any contamination of property caused by any hazardous substances which have been used or permitted by Tenant on the Premises during any term of this Lease. Remediation, correction, or removal shall 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 of contribution from any person, other than Landlord, who is or may be liable for any such cost and expense. (iii) Tenant agrees to indemnify, defend, and hold Landlord harmless from and against all claims, causes of action, damages, loss, costs, expense, penalties, fines, lawsuits, liabilities, attorney fees, and engineering and consulting fees arising out of or in any manner connected with hazardous substances, which are caused or created by Tenant on or about the Property, including but not limited to any diminution in value of the Property that may result from the foregoing. This indemnity shall survive the expiration, abandonment, or termination of this Lease for any reason. 13. FIRE AND CASUALTY. (a) PARTIAL DESTRUCTION OF PREMISES. In the event of a partial destruction or damage of the Premises which causes a business interference by preventing the conduct of a normal business operation, and which damage is reasonably repairable within sixty (60) days after its occurrence, this Lease shall not terminate but the rent for the Premises shall abate during the time of such business interference. In the event of partial destruction, Tenant shall have the option to repair such damages. (b) ZONING. If the zoning ordinance of the municipality in which this property is located makes it impossible for Landlord, 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 the Premises, then such partial destruction shall be treated as a total destruction as provided in the next paragraph. (c) TOTAL DESTRUCTION OF BUSINESS USE. In the event of a destruction or damage of the 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 sixty (60) 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 pro rata only to the date of such destruction. 14. CONDEMNATION. (a) DISPOSITION OF AWARDS. Should the whole or any part of the 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 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; DEFAULTS OF TENANT; OTHER REMEDIES. (a) TERMINATION UPON EXPIRATION OR UPON NOTICE OF DEFAULTS. This Lease shall terminate upon expiration of the demised term. Upon default in payment of rental herein, upon any other default by Tenant in accordance with the terms and provisions of this Lease, or upon Tenant's abandonment of the Premises by failure to engage in its usual and customary business activities on the Premises for more than fifteen (15) consecutive business days, 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. (See paragraph 22 below.] 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. 4 (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 the Premises, all to the extent permitted by applicable law. (c) OTHER REMEDIES. In addition to any remedies set forth in this Section 15 or otherwise available under applicable law, in the event of a default Landlord may exercise any one or more of the following remedies: (i) Declare due, sue for, and receive from Tenant the sum of all payments and other amounts then due and owing under this Lease, plus the accelerated balance of future payments; (ii) Terminate this Lease or any other agreement with Tenant; (iii) Collect from Tenant all other amounts due and owing under this Lease; (iv) Charge interest on all sums due hereunder from and after the date of default at the rate of 18% per annum, compounded monthly, until paid in full, but in no event more than the maximum rate permitted by law; and (v) Charge an administrative late fee of $25.00 for each payment not received within five days of the due date (in addition to any applicable penalty interest). In addition, Landlord may use any other remedies available to it under applicable law. (d) In the circumstances described in paragraphs (a)-(b) above, waiver as to any default shall not constitute a waiver of any other or subsequent default, and no delay in exercising any right or remedy shall operate as a waiver of any right or remedy or modify the terms of this Lease. Remedies will be applied cumulatively, to the extent allowed by law. Tenant agrees to pay Landlord all costs and expenses, including attorneys' fees, incurred by Landlord in exercising or attempting to exercise any of its rights or remedies or in defending against the claims of Tenant. If appropriate in the circumstances, remedies will include those available under UCC Article 9. 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. (e) The parties agree to the jurisdiction and venue of the Iowa District Court for Black Hawk County in any action to construe, interpret, or enforce this Lease. EACH PARTY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY MATTER ARISING OUT OF OR IN ANY WAY RELATED TO THIS LEASE, WHETHER DIRECTLY OR INDIRECTLY. (f) 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 12% per annum from the date of advance. 17. SIGNS. (a) Tenant shall have the right and privilege of attaching, affixing, painting, or exhibiting signs on the 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. (b) Landlord during the last ninety (90) days of this Lease, or extension, 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 the 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 5 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. 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 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. Tenant shall have the right, from time to time during the term of this Lease, to sell or otherwise dispose of any personal property of the Tenant situated on the Premises, when in the judgment of the Tenant it shall have become obsolete, outworn, or unnecessary in connection with the operation of Tenant's business on the 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 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. OTHER. (a) Tenant is authorized to install an overhead door in the location agreed to by Landlord and to install such new electrical systems and components as may be required by Tenant's business needs. All work shall be to a workmanlike standard. (b) During the Lease term, Tenant shall, at its sole cost, demolish and gut the interior of an abutting 10,000 square foot portion of the building so that such portion and the leased premises share one large, open space. Landlord shall provide a large dumpster for disposal of demolition materials and from time to time as needed shall empty the dumpster for Tenant's continued use. Tenant shall comply with all applicable laws and regulations governing the handling and disposal of hazardous wastes and hazardous materials. Tenant shall not dispose of its own business waste in said dumpster. (c) 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 Premises. Landlord shall have no responsibility to incur any cost or expense with respect to the Premises, other than the dumpster referred to in paragraph (b). (d) If during the Lease term Landlord desires to sell the Property, Tenant shall have a right of first refusal to purchase the Property on the same terms as are set forth in a written offer or purchase agreement submitted by Landlord by a third -party unaffiliated with Tenant through common ownership or control. To exercise said right, Tenant must deliver written notice of exercise to Landlord within fourteen (14) days following its receipt of a copy of 6 said purchase agreement. If Landlord otherwise desires to sell the Property, it shall notify Tenant and the parties will attempt in good faith to negotiate a sale of the property to Tenant on mutually acceptable terms. If the parties do not reach agreement, Landlord shall be free to sell the Property to whomever it chooses. (e) This Lease is subject to approval by the Waterloo City Council. 26. 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. 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 TENANT City of Waterloo, Iowa American Pattern Storage, L.L.C. By: By: Ernest G. Clark, Mayor Attest: Suzy Schares, City Clerk Title: PERSONAL GUARANTY. The undersigned holder of the ownership interests of Tenant hereby agrees for himself and his heirs, personal representatives, and assigns, to unconditionally guarantee to Landlord, its successors and assigns, the full and prompt performance by Tenant, its successors and assigns, of all obligations owing by Tenant pursuant to the foregoing Lease and payment when due of all sums owing thereunder. James Chizek 7 Mayor BUCK CLARK COUNCIL MEMBERS DAVID JONES Ward 1 CAROLYN COLE Ward 2 PAT MORRISSEY Ward 3 QUENTIN HART Ward 4 RON WELPER Ward 5 TOM LIND At -Large STEVE SCHMITT At -Large CITY OF WATERLOO, IOWA COMMUNITY PLANNING AND DEVELOPMENT 715 Mulberry Street • Waterloo, IA 50703 • (319) 291-4366 Fax (319) 291-4262 Building and Grounds Communication w . Building and Grounds Meeting: Orto1er 27, 2014 Prepared: October 22, 2014 Dept. Head Signature: # of Attachments: SUBJECT: Request by Jim Chizek to rent approximately 196 square feet or 14' x 14' square feet of storage space for $140 per month utilities included. Submitted by:Noel Anderson- Community Planning & Development Director Recommended City Council Action: As a part of the East River Front Housing project, the city acquired the building that once housed Black Hawk Sprinkler located at 1100-1112 Sycamore Street, as shown on the enclosed aerial photograph. The Building and Grounds Committee just recently approved a request from Mr. Chezik to rent the entire 3, 720 square foot of space for $100 dollars a month plus utilities not to exceed $1,200 per month. Mr. Chezik has revised that request to lease only 196 square feet or 14' x 14' square feet of storage space for $140 per month with utilities included for the purpose of storing a tank with liquid material that must be kept above freezing. Staff looked at similar size climate controlled rental unit prices in Waterloo, and Cedar Rapids and the average price for 196 square feet is $140 dollars per month utilities included. Therefore, staff feels that the revised request is comparable to other rates in the area and is in support the request. Mr. Chizek is also working with staff to eventually move his paint striping business to this location. Staff will bring that request to the council once all of the details have been worked out. Expenditure Required: N/A Source of Funds: N/A Policy Issue: Nuisance abatement Alternative: N/A Background Information: cc: NOEL C. ANDERSON, Community Planning & Development Director CITY WEBSITE: www.cityofwaterlooiowa.com WE'RE WORKING FOR YOU! An Equal Opportunity/Affirmative Action Employer Pictometry Online Page 1 of 1 Reqeust by Jim Chizek to lease a 14' x 14' or 196 Sq. Ft. Print Date: 10/22/2014 Image Date:04/20/2013 Level:Neighborhood http://pol.pictometry.com/en-us/app/print.php?title=Regeust%20by%20Jim%20Chizek%... 10/22/2014