Agenda - Council - 01/10/2006 - Laserfiche WebLink

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' LEASE AGREEMENT This Lease Agreement, dated this __ day of Janua~, 2006, (this "Lease") by and between the CITY OF RAMSEY, Anoka County, Minnesota, a Minnesota mumcipal coq~orution ("Landlord) and K and K SHARP, LLC, a Minnesota Limited Liability Company (heremafter referred to as "Tenant '). DEFINITIONS: "Property." Approximately 18,360 square feet of cold storage space located in the building sited on the real property described as Lot 3, Block I, DEAL INDUSTRIAL PARiC, Anoka County, Minnesota, and commonly known as 6701 highway 10 N%V, Rarnsey, Minnesota. The said 18,360 square feet leased is depicted on the attached Exhibit B. Also depicted on said Exhibit B is the coramon area located on the real property which Tenant has the nonexclusive right to use in conjunction with other Tenants of the building located on the real property. WITNESSETH THAT: 1. TERM: Initial 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 seventeen (17) months commencing on the 1st day of February, 2006 (sometimes called "the Commencement Date") and expiring the 30t~ day of June, 2007 (sometimes called "Expiration Date"), ("Initial Term") unless sooner terminated as hereinafter provided. b. Option to Renew. Provided Tenant is not in default hereunder and has performed all of its covenants and obligations hereunder, Tenant may extend the Term of this Lease (hereinafter, the "Option") for five (5) periods of one year each beginning on the fixst day after the expiration of the initial Term hereof (the "Expiration Date") upon the terms and conditions, except for Base Rent and upon the following further terms and conditions set forth in this Section. Tenant shall exercise the Option only by giving written notice to Landlord not later than two (2) months and not earlier than three (3) months prior to the Expiration Date. Rent payable per annum during any Option Period shall be the greater of (i) the Base Rent paid by Tenant during the last twelve (12) full calendar months of the Initial Term, or (ii) the then-current fair rental value of the Property, which shall be established in accordance with the following procedure: For a peri°d of thirty (30) days after receipt o~ written notice of Tenant's exercise of the Option ("Tenant's Exercise Notice"), Landlord and Tenant shall negotiate in good faith to agree upon the then-current fair rental value of the Property. If at the expiration of such 30-day period Landlord and Tenant have not agreed upon the then-current fair rental value of the Property, Tenant may, within ten (10) days thereafter, rescind exercise of the Option by written notice to Landlord, whereupon the Option shall terminate. If Tenant fails to rescind its exercise of the Option, Landlord and Tenant shah each engage the services of a commercial real estate broker agent, or appraiser with at least five (5) years of experience in the leasing of commercial real estate in the Minneapolis-St. Paul metropolitan area (collective, the "Real Estate ReprasantaUve ) hcense in Minnesota each ofwhom shall, within thirty (30) days after such engagement' render a written opinion as to then-current fair rental value of the Property. If the respective opinions of the two Real Estate Representatives are within ten percent (10%) of one another, the then-current fair rental value of the Property shah be deemed to be the average of the two such opinions. If they are not within ten percent (10%) of one another, such Real Estate Representatives shall agree upon a third Real Estate Representative licensed in Minnesota who shall, as soon as reasonably possible thereafter, issue a third opinion as to the then-current fair rental value of the Property. The then-current fair rental value of the Property shall then be the average of the two Real Estate Representative opinions which are closest to one -170- 2