Agenda - Council Work Session - 01/10/2012

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LEASE AGREEMENT THIS LEASE AGREEMENT, dated this day of January, 2012, (this "Lease") by and between the CITY OF RAMSEY, 7550 Sunwood Drive NW, Ramsey, MN 55303, a Minnesota municipal corporation ("Landlord") and INDEPENDENT AUTO SERVICE, INC., a Minnesota corporation, 18140 Zane Street NW, Elk River, Minnesota 55330, a Minnesota Limited Liability Company (hereinafter referred to as "Tenant"). DEFINITIONS: PROPERTY. The leased property is 5,930 s.f. of a building located on that real property legally described as Lot 2, Block 2, DEAL INDUSTRIAL PARK, Anoka County, Minnesota, and is commonly known as 6745 Highway 10 NW, Ramsey, Minnesota (the "Site"). The Property consists generally of 1,000 s.f. of office space, 1,030 s.f. of small service bays and 3,900 s.f. of three large bays and mechanical area (the "Property") and the common parking as shown on attached Exhibit B and 25 parking spaces within the fenced in area of the Site. The Property DOES NOT include the RV/Cold Storage portion of the building in which it is located. RECITALS: 1. TERM: a. Lease Term. For and in consideration of the rents, additional rents, terms, provisions and covenants herein contained, Landlord hereby lets, leases and demises to Tenant the Property for the term of seventy two (72) months commencing on the first day of February, 2012, or thirty days after Landlord tenders possession to Tenant, whichever is later (sometimes called "the Commencement Date") and expiring on the 31 st day of January, 2018 (sometimes called "Expiration Date"), unless sooner terminated as hereinafter provided b. Option to Renew. Tenant shall notify Landlord, in writing, at least sixty (60) days before the Expiration Date of Tenant's intent to renew the Lease Term for an additional thirty-six (36) months ("Option Period"). Monthly rent in the Option Period shall be equal to the monthly rent in the last year of the initial lease term. c. Landlord's Notice to Quit. Notwithstanding the Lease Term or the Option to Renew, in the event Landlord determines, in its sole discretion, that the Property or any part thereof is required for the improvement of U.S. Highway 10, upon giving one year's prior written notification to Tenant, the Landlord may terminate this Lease. Landlord is not obligated to provide this one year notice to quit in the event of any default by Tenant of the terms of this Lease. 2. BASE RENT: Tenant shall pay Landlord, a total rent payment in advance without offset, deduction or demand, in equal monthly installments commencing on the Commencement Date and continuing on the first day of each and every month thereafter for the next succeeding 72 months, during the balance of the term based on the following schedule: