HomeMy WebLinkAboutJuly 7, 2008 Work SessionCITY OF COLUMBIA HEIGHTS ~~.>~
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ADMINISTRATION
NOTICE OF CITY COUNCIL MEETING
to be held in the
CITY OF COLUMBIA HEIGHTS
us follows:
Meeting of: COLUMBIA HEIGHTS CITY COUNCIL
Date of Meeting: JULY 7, 2008
Time of Meeting: 7:00 P.M.
Location of Meeting: CONFERENCE ROOM 1
Purpose of Meeting: WORK SESSION
Honeywell - HVAC study of Murzyn Hall
2. Signs: Garage Sale, Real Estate, temporary signs
NW Bank Building -parking ramp agreement
The City of Columbia Heights does not discriminate on the basis of disability in the admission or access to,
or treatment or employment in, its services, programs, or activities. Upon request, accommodation will be
provided to allow individuals with disabilities to participate in all City of Columbia Heights' services,
programs, and activities. Auxiliary aids for handicapped persons are available upon request when the
request is made at least 96 hours in advance. Please call the City Clerk at 763-706-3611 to make
arrangements. (TDD/706-3692 for deaf or hearing impaired only)
CITY COUNCIL LETTER
Work Session Meeting of: July 7, 2008
AGENDA SECTION: ORIGINATING DEPT.: CITY MANAGER
NO: Recreation APPROVAL
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BY
ITEM: Honeywell presentation on HVAC BY: Keith Win
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recommendations for John P. Murzyn Hall Recreation Director
N (> : DATE: 7/2/08
BACKGROUND
Last November staff contacted Honeywell to conduct an Energy Retrofit Study for Murzyn Hall. Honeywell was
selected to perform this study due to their vast knowledge and experience with Murzyn Hall and the many
successful years in working with them. Honeywell has completed the mechanical, ventilation; building
management system, envelope, and electrical evaluation in addition to analyzing the cost to operate the facility.
Cost estimates have been prepared for the project in order to start implementation in the very near future. Timing
is important due to some equipment failure since the study began.
Murzyn Hall is a beautiful building with continuous activity that requires consistent functionality. Unfortunately,
the majority of mechanical components related to heating and cooling are well beyond their finlctional life. The
building has some moisture damage from interior and exterior penetration and this will only get worse if short-
term fixes are applied. There is a direct relationship between the project components and the life extension of
this city asset.
Honeywell Energy Services is a State approved ESCO (Energy Service Company). They are a supplier agnostic
group serving public entities to enable comprehensive solutions for facilities and infrastructure. Their job is to
deliver cash flow neutral projects that achieve goals and meet state energy reduction guidelines. Murzyn Hall is a
Co-authored project developed with input from city employees and numerous ho>.us of surveying and
engmeenng.
RECOMMENDED MOTION: Direct staff on how to proceed with Jolui P. Murrzyn Hall HVAC.
COUNCIL ACTION:
ADA~tIN\honeywell
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- Introductions
- Project Objectives - Murzyn Hall
- Performance Contracting Overview
- Project Approach
- Facility Observations -Recommendations
- Project Scope of Work
- Cost and Savings Overviews
- Timeline
- Questions/Open Discussion
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/Life extension for an aging "City Gem" facility
/Holistic evaluation -implementation to address critical needs
/Fund the project through energy-operational savings
/ Budget accuracy through predictable solutions
/Provide a good experience for residents and staff
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/ Multiple integrated components designed to operate as
one with peak efficiencies and guaranteed performance
for 15 years.
/ Multiple bids are received for the project and cost is
competitive to a design -spec format. We have delivered
over 4500 of these projects in the United States.
/ Allows for comprehensive solutions to city and facility
improvement without direct indebtedness.
/ The only state requirements are the City Council
approves a Resolution incorporating Stat. 471.345
Hon~yvrell
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On-going
Measurement
& Verification
Evaluate
Opportunity
Design
Solutions
Guaranteed
Results
Provide
Turnkey
Installation
Arrange
Financing &
Self-funding
_ Solution
Honeywell
median remaning planned
year service service work/anticipated
installed age life life failure year
Boiler 1 1938 69 40 0 2009
Boiler System 2 1984 23 24 1 2009
Attic AHU's 1978 29 15 0 2008
Assoc. Electrical 1980 n/a n/a n/a 2008
Doors 1975 32 15 0 2009
Windows 1968 40 20 0 2010
South Wall rebuild 1985 23 n/a n/a 2008
Roofing upgrades 1985 23 20 0 2008
Ceiling Insulation 1985 23 15 n/a 2008
Building Controls n/a n/a n/a n/a 2007
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HoneyvMell
The original steam boiler and modular
hot water boilers have long passed
their useful life. Inefficient by design
these are high energy users and
expensive to maintain. Steam delivery
to attic AHU's is causing considerable
damage to the building.
Solution
/ Boiler Plant Upgrades -Demo steam
and modular hot water boilers, modify
combustion air and boiler room
exhausts, add two new high efficiency
boilers up to 1000MBH each, branch
piping and insulation, pumps and
accessories, hot water return piping for
the attic units, breeching tie-in, pump
replacements and VFDs, plus all
associated electrical and controls.
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Current
/ These steam feed units deliver air to
two zones on the main floor. They are
the main source of interior damage and
exterior roof ice dams. They are failing
right now and require hot water
conversion with total rebuild.
Proposed
/ Attic AHUs Refurbishment -Demo and
salvage existing heating and DX coils
(possible rebuilt/reuse), resurface and
reinforce coil section floor, install
replacement coils, branch piping, fan
motor replacements and VFDs, replace
condensing units associated with the
attic AHUs, balancing and unit casing
repairs for life extension, associated
electrical and controls.
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~ The windows facing the street and north side
of the building have failed and are a source of
outside air penetration. All double doors
around the facility are worn, warped, and
leaking miserably. The windows installed in
1985 are in need of exterior sealing.
~ The south wall in main hall has consistent
interior moisture penetration from steam
humidity generated by attic Ahu's. This
causes annual winter ice dams on the roof and
generates exterior moisture penetration.
~ The roof needs to be replaced and insulation
needs to be added through out the ceilings
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Main Entry -Street Level
South Wall -Main Hall
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/ Window and Door Upgrades -Replace
street level and east side windows with
low E tri pane gas filled glazing, reframe,
insulate, and seal. Reseal all newer
windows on the west and south side.
Replace all double entry doors with steel
framed -glass pane doors, insulate,
seals, and sweeps.
/ Rebuild South main hall wall and soffit,
add insulation where needed and seal
from exterior moisture penetration.
/ Complete new roofing, valleys, vents, and
gutters.
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Honeyvre~
South Ceiling -Main Hall South Wall -Exterior
Honeywell
/ Controls Zoning -add motorized
dampers for the office space vs. Main
Hall south zone 1A& 1B, relocate split
DX office units and branch piping/wiring
to south wall.
/ Upgrade building pneumatic controls to
new DDC system, replace ground level
AHU supply fan motor and VFD,
provide new static pressure sensor for
VFD control.
/ Integrate existing and new equipment
controls to DDC command
station/controller. Web based
programmable interface.
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/ There are vending machines that are
operating 24/7 when they do not need
to be. we will install vending misers to
cycle the machines off when not in use.
/ There is a large heated space near the
fireplace with inadequate air circulation.
we install ceiling fans to distribute the
air more effectively.
/ There are miscellaneous lighting
retrofits that should be done. (ie.
Fluorescent exit light conversions to
LED exit lights) We will upgrade/retrofit
applicable lighting.
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HoneyweN
Control Upgrades
Boiler Replacement
Attic AHU Rebuild
Lower AHU Upgrades
Windows-Doors Replace
and Repair
Wall Rebuild and
Insulation
Single Source
Accountability
Building Automation System
New Roof
Branch Piping
Electrical Upgrades
C02 and Light
Sensors
15 Year Measurement and
Verification
Honeywell
ENER ADJUSTE TOTAL
ANNUAL
ANNUAL
O&M GY D ANNUAL
Simple
ECM COST ENERGY
CAPITAL SAVIN ANNUAL ADJUSTE Payback
SAVINGS
SAVINGS GS ENERGY D
TAKE SAVINGS SAVINGS
N
Boiler Plant Upgrades $33.5,655 $2,475 $30,617 92% $2,277 $32,894 10.2
Attic AHUs
970
$24
Refurbishment $259,053 ,
$2,685 92%
$2,470
$27,440
9.4
Electrical Upg~ ides $52,040 $1,040 $4,816 92% $957 $5,773 9.0
Envelope Upgrades $87,36.5 $842 $8,413 92% $775 $9,188 9.5
Roofing Upgrades $72,289 $1,134 $9,333 92% $1,043 $10,376 7.0
Controls Zoning and
~
$7515
Upgrades $74,750 $233 92% $214 $7,729 9.7
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Base Project Management $68,251 ~ N/A N/A
Base Engineering $38,7.54 N/A N/A
PROJECT TOTAL $988,157 $8,409 $86,664 92% $7,736 $94,400 10.5
Annual
Operational-Maintenance Savings $22,000
(Based on reduction of outsourced costs)
Capital Expense Savings $64,664
(Based on replacing equipment with budget reserves)
UtIIItV SaVIngS (over 20% reduction) $ 7,736
Annual Savings
$94,400
Annual Cost
$91, 634*
Measurement & Verifica~i®~ $ 2,500
Total Annual Cost
$94,143
*estimate based on 15 year 4.4% municipal lease purchase agreement
HoneyvMell
Project Eval~
Honeywell
i\lavor:
Gar~~ L. Peterson
Councilmcmbcis:
Bobbt~ ~~'illimns
"I~anunera L ricson
Bruce Kelzenberg
Bruce Nate rocki
Cite \Ianagcr:
Walter R. 1=chst
COLUMBIA HCIGHTS COMMUNITY D>JVCLOPMFNT DICPARTMENT
DAT1J: July 7, 2008
TO: Columbia Heights City Council, Mayor Peterson
FROM: Jeff Sargent, City Planner
Rl: Garage Sale Regulations
BACKGROUND
The City of Columbia Heights has received some concerns regarding the number of garage sales
that are permitted per property per calendar year. The current zoning codes states, "residential
garage sales shall be limited to a total of 12 days of operation per calendar year at any residential
location''. Staff has realized that this would be very difficult to enforce, and recommends
amending the zoning code to restrict the number of garage sale events per calendar year.
An article has recently been written this issue (attached), and listed the number of garage sale
events allowed in some cities. Staff conducted some research and found regulations for some
other cities not Mentioned in the article. They are:
1. Edina: 1 per year
2. Miimeapolis: 2 per year
3. Maplewood: 2 per year
4. St. Louis Park 2 per year
5. Richfield: 3 per year
RIJCOMMCNDATION
6. New Hope: 3 per year
7. Maple Grove: d per year
g. BlOOllllllgt011: ~l pel' }'eal'
9. Crystal: ~ per year
Staff recommends amending the zoning code to allow for no More than three (3) garage sales per
property per calendar year, with the duration of each garage sale not to exceed three (3)
consecutive days. The purpose of this amendment is for the city to have an easier way to measure
the number of garage sales conducted on a property. The intent is that the enforcement of this
provision would only occur upon complaints being made against the property operating the garage
sale.
Rummage regulations
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lblake@stamibune.rnm lison expects public interest in Minnetonka -has received
.; , the proposed ordinance. "A lot complaints like one e-mailed
How many garage sales is ~ -, of people lave their lawn sales;' by a ;resident to City. Hall in
too many? she said:-` " support. of sale limits. She.
Minnetonka is preparing fo ~. - ' wrote that her neighbors hold
join the circle of cities that set ~ Gom~gilaiabp=empt utinn garage sales throughout the
a limit. ~ 'The ,city's difficulties in .summer, causing traffic and
Edina holds homeowners ~: stopping an .antiques sale at parking problems and stor-
to one per year. Minneapo- , an empty house in z residen- ing unsold items in their drive-
lis, Maplewood and St. Louis till 'neighborhood last year way and yard for the next sale;
Park allow two per householii~ ';led ;to consideration of a ga- "the view from my house is of
Richfield, three. Maple Grove rage sale ordinance this spring, their miscellaneous collections
and Bloomington permit their . ,said Assistant City Attorney of stuff." ' '
residents four per year . Rolf Sponheim -even though CallisonsaidtheMinnetonka
"Garage .sales are certainly. tl~e sale in question technically City Council will set. a limit af-
part of the suburban culture, vya9, not a garage sale. ter hearing residents' com-
and we found that we were one The proposed -ordinance ments. " In_.my mind, ,two _ or
of the few cities that didn't have ,would .require that .proper- three [per. year] is probably
any special requirements or`:;`ty. §old at a garage sale belong reasonable;'.shes~id.
limitations," said Minnetonlc~ , to the homeowner or fiends Minnetonka resident Amy
Community Development Di-' . ~of the homeowner and not Carlson -who held her third
rector Ron Rankin. ' be purchased for resale or re- garage sale 'in 18 years earli-
Garage sales have increased ceived on consignment. ~ er this month - said a limit
in popularity because sellers . ';~~Mu~etonka,theintention of two sales per year sounds
want to make money andshop- : ~.~ a~ in other cities with garage right. "I think if you are do-
pers want to `save money, said ~ sale ordinance's - is to enforce ing~ more you are doing it as a
John Schroeder of Minneapo= the provision if a sale prompts business:'
lis, a garage sale enthusiast and complaints, said Minnetonka Resident Craig Berdan
author of the 2005 book "Ga- -City Manager John Gunyou. would welcome atwo-sale lim-.
rage Sale Fever." Bloomington investigates it in Minnetonka.
He approves of keeping ~a sane o` if a resident com- "Garage sales are disruptive
sales in check to preserve the plains, said Bloomington Plan- events to the neighborhood,"
tradition oflow-cost rummagie, ,~niug Manager Mike Hawbak- Berdan said. They start people
and he doubts that limiting sake ' er."We don't go around keep- milling about early, disturbing
numbers willbe ahardshipbe- ~ing track of how many garage the peace, and "thoughtless
cause people typically have ga- ~ sales people have. We don't li- strangers park on curbs and
rage sales no more frequently cease them, and we don't have lawns, blocking streets, drive-
thanevery other yeas garage sale police." ways, mailboxes, fire hydrants,
But, he said, "This is a way; ; Bµt people do complain, delivery txucks and parking
for people in tough times to ~Iawbaker said. "We have had places for legitimate guests."
make some money, so I would' situations where people have
think the less regulation tl~ie ' had garage 'sales every week- Laurie 6~ake ~ 612.673-1711
better." end,. and that becomes annoy- ~ ~ .
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iVlayor:
Gap' L. Peterson
Comuilmcmbers:
Bobby Williams
Tauunera Ericson
Bruce Kelzenberg
Bruce Nawrocki
City \Ianagcr:
Walter R. Fehst
COLUMBIA HEIGHTS COMMUNITY DEVELOPMENT DEPARTMENT
DATE: July 7, 2008
TO: Columbia Heights City Council, Mayor Peterson
FROM: Jeff Sargent, City Planner
RE: Real Estate Signs
BACKGROUND
The City of Columbia Heights has received some concerns regarding the number and size of
residential real estate signs allowed in the City. Staff conducted a survey of the sizes of various
real estate signs used by different real estate companies. The sizes of signs ranged from 6 square
feet to 14 square feet, depending on the company. Also, it was discovered that no more than one
real estate sign was placed on the property. Two sections of the sign code currently address real
estate signage. The first is at Section 9.106 (P)(5)(i), referring to signs in which the provisions of
the code do not apply. It states as follows:
(i) Temporary on-site signs advertising the sale, lease, or rental of the lot or
premises upon which such signs are situated, provided the combined area of such
signs fronting upon each street which bounds such lot or premises shall not
exceed a ratio of 1 square foot of sign area for each 1,000 square feet. No such
temporary on-site sign shall exceed 8 square feet nor remain past the date of
termination of such offering.
The second reference is at Section 9.106 (P)(5)(n), referring to signs in which the provisions of
the code do not apply. It states as follows:
(n) One temporary on-site baluier or pennant advertising the sale, lease or
rental of the lots or premises on which such a banner or pennant is situated,
provided that the total area of such bawler or pennant shall not exceed the ratio of
1 square foot of signs area for each 1,000 square feet of building area plus 1
square foot of sign area for each 1,000 square feet of lot area. No such banner or
pennant need be less than 32 square feet. No such banner or perulant shall remain
past the date of the offering or be displayed for a period of more than 120,
whichever is shorter. At the end of the display period, the site may not display a
banner or pennant until at least 240 days have elapsed.
Staff feels that these two sections need clarification as to the types of signs allowed, the number of
signs allowed, and for what zoning dish•icts they apply.
RECOMMENDATION
Staff recommends amending the zoning code to allow for no more than one (1) residential real
estate sign per property, not to eYCeed sixteen (16) square feet per sign and sip (6) feet in height.
Staff also recommends that the requirements for commercial and industrial real estate signage be
left unchanged, but clarification of the current ordinance is needed. It is also intended that this
ordinance would be enforced on a complaint basis only. A copy of the current sign code
pertaining to this issue has been attached for review.
G: IConununih~ Develo~mentlCiir Corrncill,lle~uos1200812ea1 Estate Srgnngerloc
Zoning and Land Development 115
(b) Maintenance. All signs, including temporary signs, together with all of their supports,
braces, guys, and anchors, shall be kept in good repair and in proper state of preservation. The display
surfaces of all signs .shall be kept neatly painted or posted. Every sign and the immediate surrounding
premises shall be maintained by the owner or person in charge thereof in a safe, clean, sanitary, and
inoffensive condition, and free and clear of all obnoxious substances, rubbish and weeds.
(c) Inspection. All signs for which a permit is required shall be subject to inspection by the
Zoning Administrator. The Zoning Administrator, or any other official of the municipality who may be
appointed by him is hereby authorized to enter upon any property or premises to ascertain whether the
provisions of this division are being obeyed.
(5) Exempt signs. In all districts, the provisions of this section shall not apply to the following
signs: f --~
(a) Signs of any governmental unit designed for regulatory and safety purposes;
(b) Memorial plaques, cornerstones and historical tablets;
(c) Political signs regulated per state statute;
(d) Direction signs not more than two in number identifying the location and nature of a
building, structure, or use which is not readily visible from the street, serving such building, structure, or
use on lands forming part of the site of such buildings, structure, or uses, provided that each such sign is
not more than ten squaze feet in total area;
(e) Signs not exceeding nine square feet in area located upon private property and directed
toward the prevention of trespassing;
(f) Window signage that does not exceed 25% of the total area of the window on or in which
it is displayed;
(g) Temporary signs pertaining to drives or events of charitable, educational or religious
organizations, provided that such signs shall not be erected or posted for a period, of more than 14 days
prior to the date of the event and shall be removed within 3 days thereafter;
(h) Flags or emblems ofpolitical,civic, philanthropic, educational or religious organizations;
""~;~~ (i) Temporary on-site signs advertising the sale, lease, or rental of the lot or premises upon
which such signs are situated, provided the combined area of such signs fronting upon each street which
bounds such lot orpremises shall not exceed a ratio of 1 square foot of sign area for each 1,000 square feet.
116
Columbia Heights -Land Use
o such temporary on-site sign shall exceed 8 square feet nor remain past the date of termination of such
offering;
(j) One on-site temporary sign advertising a group of lots for sale within a subdivision or
a group of houses for sale within a housing project along each street frontage which bounds such
subdivision or project, provided that the total area of such sign shall not exceed the greater of 64 square
feet with no single dimension in excess of 16 feet or 8 square feet per lot or house for sale. No such on-site
temporary sign shall remain past the date of sale of the last lot within the subdivision or the last house
within the housing project;
(k) Temporary on-site signs indicating the name and nature of a construction or demolition
prof ect, plus the names of the contractors subcontractors, and professional advisors, provided the combined
area of such signs fronting upon each street which abounds such prof ect shall not exceed a ratio of 2 squaze
feet of sign area for each 1,000 square feet of lot area. In no case shall the combined area of such signs
fronting upon each street exceed the greater of 64 square feet with no single dimension in excess of 16 or
8 square feet per house or lot on which such construction or demolition is located. The display of such sign
shall be limited to a period not to exceed the duration f the said construction or demolition prof ect, at which
time such signs shall be removed;
(1) One wall sign per dwelling for permitted home occupations not to exceed two square feet
^Ar surface and limited to one surface;
(m) Time and temperature signs not to exceed 20 square feet per sign and one sign per side
of building;
=~ (n) One temporary on-site banner or pennant advertising the sale, lease or rental of the lots
or premises on which such a banner or pennant is situated, provided that the total area of such banner or
pennant shall not exceed the ratio of 1 square foot of sign azea for each 1,000 square feet of building area
plus 1 square foot of sign area for each 1,000 square feet of lot area. No such banner or pennant need be
less than 32 square feet. No such banner or pennant shall remain past the date of the offering or be
displayed for a period of more than 120, whichever period is shorter. At the end of the display period, the
site may not display a banner or pennant until at least 240 days have elapsed.
(6) Prohibited signs. Signs that are not specifically permitted in this division are hereby
prohibited in all districts unless criteria is presented to allow the Planning Commission to deem that the
sign, design preserves and maintains the community's unique historical and cultural elements. Without
restricting or limiting the generality of the provisions of the foregoing, the following signs are specifically
prohibited:
(a) A balcony sign and a sign mounted or supported on a balcony.
~Ia~'or:
Gar~~ L. Peterson
Councilmembcrs:
E3obb~~ Williams
Tanuncra Ericson
r3ruce KelzenUcrg
Bruce Na~~~rocki
City ~Lrnagcr:
Walter R. ~chst
COLUMBIA HEIGHTS COMMUNITY DEVELOPMENT DEPARTMENT
DATE: July 7, 2008
TO: Columbia Heights City Council, Mayor Peterson
FROM: Jeff Sargent, City Planner
RE: Governmental Temporary Signage
BACKGROUND
The City's sign code currently does clot address temporary signage that a governmental entity
might display to promote citywide events. As currently allowed, the City would have to obtain a
permit and display the sign on a governmental building. Also, the City would only be allowed to
obtain four permits per year. This requirement is restrictive and would not allow the city to
promote activities and events to the general public, as it should.
RECOMMENDATION
Staff recommends amending the zoning code to allow have signage displayed by the city
govertunent be exempt from the sign code provisions. Under this recommendation, the city
would not need a permit to display the sign, and would be able to display as many signs per
calendar year as desired. This is consistent with what other cities allow in their sign codes. The
reason for this recommendation is that the city is a civic fiuiction and does not promote a
commercial agenda. This amendment would only allow for signs that promote events or activities
geared towards the general public, such as promotion of the Jamboree, blood drives, voting
information, etc. The nnulicipal liquor stores would still be subject to the current sign code in
relation to temporary signage.
CITY COUNCIL LIJTTLR
Meeting of: July 7, 2008
AGENDA SECTION: Work Session ORIGINATING DEPT.: CITY MANAGER
NO: Community Development APPROVAL
ITEM: Parking Ramp Agreement with Stadium BY: Sheila Cartney BY: Scott Clark
Vill~~~re I'r~~hel•ti~s. I_.I,C ~~ I)iscus~i~~il DA"hE: July 1, 2008
Background:
In March 2008, the Northeast Bank Building, located at 3989 Central Ave, was sold to
Stadium Village Properties, LLC. The sale has constittrted a new Agreement between the City
and Stadium Village Properties, LLC for the operation of the parking ramp. This agreement is
intended to replace the 1988 agreement and amendments that follow. The proposed agreement
changes the name of the operations company fi•om Zaidan Holdings with Stadium Village
Properties, LLC, and the rest of the agreement remains in effect. The proposed agreement has
a different breakdown and modifies language slightly but doesn't change the terms (hours,
rates, maintenance etc).
The 1991 amendment designates public parking and is not affected by this amendment.
Stadium Village Properties, LLC, plans to address the uses at a later date, which will be
through an amendment to the management portion of the 1991 agreement.
Recommendation:
The agreement that Walker has presented also represents the terms and conditions in the 1988
agreement by replacing the operators name from Zaidan Holdings Inc, to Stadium Village
Properties LLC. Staff supports this amendment. Staff does recommend that public parking
remain part of the management agreement as amended in 1991. Although some modifications
may be necessary since the 60% long-term parking and 40% short term parking technically
doe not leave parking for the office building.
Recommended Motion:
COUNCIL ACTION:
CITY OF COLUMBIA HEIGHTS
590 30th Avenue N.E., Columbia Heights, MN SSa21-3578 (763) 706-3600 TDD (763) 706-3692
Vi.~it Orn Wcbsite ul: ~r<<~r.ci.cnhunbirr-hei,~hts.nrrr.rr.c
~ta~'or:
Guru L. Peterson
Councihncmbcrs:
I3nicc Na~crocki
I3ohbv Vdilliams
"rununera llichm
I3rucc Kclzenbcrg
Cih~ i\lanagcr:
Llrulter R. ~chst
COLUMBIA HEIGHTS COMMUNITY DEVELOPMENT DEPARTMENT
DATE: June 30, 2008
TO: Scott Clark, Community Development Director
FROM: Sheila Cartney, Assistant Community Development Director
RE: Proposed Amendment to Parking Ramp Agreement
In March 2008, the Northeast Bank Building, located at 3989 Central Ave, was sold to
Stadium Village Properties, LLC. The city became involved in this transaction since
the adjoining parking ramp was tied into the real estate h~ansaction by means of a
Management Agreement for Parking Facilities and Lease of the Plaza Property that was
originally passed on July 20, 1982.
The city acted on and signed an estoppel agree>11ent, dated March 3, 2008, which
memorializes all of the past h•ansactions on this property, which include a series of
assigmnents and a number of amendments and/or modification to the original
Agreement. During the review of these past actions it became clear, by both staff and
the new owners that the 26-year history of contract changes has created some points of
contention as to what elactly is in effect. Based on this, Stadium Village Properties,
LLC is proposing a new operations agreement. It is anticipated that a new management
agreement will be submitted at a later date. The purpose of this memorandum is to
review the proposed operations agreement and to discuss any issues with the same.
The original parking agreement eras elecuted on July 20, 1982. This agreement had
two parts: Part I Lease of the Plaza Property and Part II Management Provisions. It
appears the amendments to the Agreement throughout the years mainly affects Part II
Management Provisions and later became it's own document, labeled as "operations.''
The 1982 agreement was amended in 1998 to list Zairian Holdings Inc. as the operato>;
this is the only change in the 1982 operations section of the agreement. The 1988
agreement was Iiu"ther amended in 1990 which (delegating public parking spaces) are
currently in effect.
Walker's proposal amends the 1988 operations agreement replacing Zaidau Holdings
with Stadium Village Properties, LLC, and the rest of the agreement remains in effect.
The proposed agreement has a different breakdown and modifies the language slightly
but doesn't really change the terms (maintenance, hours, rates, etc).
The 1990 amendment designates public parking and is not affected by the proposed
amendment. Stadium Village Properties, LLC, plans to address the uses at a later date,
THE CITY OF COLUMBIA HEIGHTS DOES NOT DISCRIMINATE OfJ THE BASIS OF DISABILITY IN EMPLOYMENT OR THE PROVISION OF SERVICES
EQUAL OPPORTUNITY EMPLOYER
which will be through an amendment to the management portion of the 1990
agreement.
In 1990, an Amendment for the parking facilities established a mutual agreement for
public parking. That agreement established 40% of the parking stalls be dedicated to
public short-term parking not to exceed 4 hours. In 1991, another amendment included
this same language and added that 60% of parking be used for long-term parking for
the public and adjacent office building uses. Again this amendment does not change
this language.
It is Staff s opinion that the 1988 Agreement is the current agreement that affects this
parking ramp along with the amendments to the uses executed in 1990 and 1991
allowing for certain public parking.
Recommendation
The agreement that Walker has presented also represents the terms and conditions in
the 1988 agreement by replacing the operators name from Zaidan Holdings Inc, to
Stadium Village Properties LLC. Staff supports this amendment. Staff does
recommend that public parking remain part of the management agreement as amended
in 1991. Although some modifications may be necessary since the 60% long-term
parking and 40% short term parking technically doe not leave parking for the oflice
building.
AGREEMENT BETWEEN
THE CITY OF COLUMBIA HEIGHTS
AND
STADIUM VILLAGE PROPERTIES, LLC
FOR THE OPERATION OF THE PARKING RAMP
THIS AGREEMENT, made as of the day of , 2008, between the
City of Columbia Heights, a Minnesota municipal corporation (sometimes hereinafter referred to
as the "City"), and Stadium Village Properties, LLC, a Minnesota limited liability company
(sometimes hereinafter referred to as the ``Operator").
WITNESSETH THAT, in consideration of the mutual covenants herein contained, the
parties hereto recite and agree as follows:
RECITALS:
Pursuant to a certain Management Agreement for Public Facilities and Lease of the Plaza
Property by and between the Housing and Redevelopment Authority in and for the City of
Columbia Heights (the "Authority") and Terry Evenson, dated July 20, 1982, as modified by that
certain Agreement for Modification of Management Agreement for Parking Facilities dated
February 11, 1991 beriveen the City and Zaidan Holdings, Inc. (as Terry Evenson's assignee)
(hereinafter collectively referred to as the `'Management Agreement/Lease"), as the Authority's
interest therein has been assigned to the City, the City and Tei7•y Evenson agreed that Terry
Evenson, in exchange for the right to use during certain times the 369-stall parking ramp (the
"Parking Ramp") owned by the City and located at 950 40th Avenue NE, in Columbia Heights,
would be responsible for major repairs, replacements and maintenance, while the City would
operate the Parking Ramp and perform routine maintenance thereof, all subject and pursuant to
the specific terms and provisions of the Management Agreement/Lease.
Pursuant to the Management Agreement/Lease, the Redeveloper is obligated to pay the
costs incurred by the City (as the assignee of the Authority) for the operation and maintenance of
the Parking Ramp. By means of this Agreement, the City (as the assignee of the Authority)
hereby contracts with the Operator for the performance of the City's obligations under the
Management Agreement/Lease for the operation and maintenance of the Parking Ramp, as set
forth hereinbelow.
The holder of Teny Evenson's interest in the Management Agreement/Lease is referred
to herein as the "Redeveloper."
ARTICLE I.
TERM
1.1) Term. The term of this Agreement shall commence on the date of this Agreement
and shall hereafter coincide with the term (and renewal options) set forth in Article V of Part II
of the Management Agreement/Lease, including the renewal options set forth therein. For said
purposes, the City and the Operator agree as follows: (i) the ``Commencement Date" of Part II of
the Management Agreement/Lease was , (ii) the initial twenty (20)-year term
of the Management Agreement/Lease ended , 200_, and (iii) Part II of the
Management Agreement/Lease is now in the first ten (10)-year renewal option, which will
continue until 201_, and will then automatically renew through
202_, unless the Redeveloper delivers notice to the contrary pursuant to
Section 5.02 of Part II of the Management Agreement/Lease. Accordingly, the term of this
Agreement shall continue until , 201_, and shall automatically renew for an
additional ten (10) years, though , 202_, unless the Operator notifies the City
of its intention not to renew this Agreement by delivery of written notice to the City at least
ninety (90) days prior to 201_ Notwithstanding the foregoing, if the
Management Agreement/Lease terminates, then this Agreement shall simultaneously terminate
unless otherwise hereafter agreed by the City and the Operator.
ARTICLE II.
OPERATION
2.1) Operation in General. The Operator agrees to manage and operate the Parking
Ramp in a professional, economical and businesslike manner, satisfactory at all times to the City.
The Operator agrees to accomplish the following, unless otherwise directed by the City:
(a) Provide such operational and maintenance supplies as are reasonably necessary to
operate the Parking Ramp.
(b) Provide bookkeeping and accounting functions, as necessary.
(c) Pay for all utilities, including gas, water and electricity.
(d) Maintain all operating equipment.
(e) Accomplish routine maintenance and repair.
The Operator shall not engage in any other business on the Parking Ramp premises other
than to provide such services as may be required to activate inoperative vehicles as requested by
a customer of the Parking Ramp.
The Operator shall report in writing to the City, within five (5) days after same is
reported to the Operator, any damage or injury sustained to persons or property, including the
Parking Ramp itself.
2.
2.2) Hours. The Operator agrees to operate the Parking Ramp between the hours of
6:00 a.m. and 6:00 p.m., every Monday through Friday excepting state and federal legal
holidays.
2.3) Rates. Between the hours of 6:00 a.m. and 6:00 p.m. the Operator agrees to
charge and collect rates, if any, for parking motor vehicles which from time to time shall be
established pursuant to the terms of the Management Agreement/Lease. Pursuant to the
Management Agreement/Lease, it has been determined that there shall be no charge for parking
at present until the Operator is notified otherwise by both the City and the Redeveloper. The
Operator agrees that the City and the Redeveloper may change parking rates from time to time
and that any new rates established shall become effective on the dates stipulated by the City.
The Operatoi° may recommend to the City changes in parking rates.
Bicycles shall be allowed to be parked free in such racks as are provided by the City.
2.4) Maintenance Obligations of Operator. The Operator agrees to notify the City
prior to snaking any repairs which are subject to the competitive bidding requirements of
Minnesota Statutes, Section 471.345. Given that contracts for repairs will be entered into by the
Operator, rather than the City, the parties do not acknowledge that said competitive bidding
requirements will apply. The Operator agrees to maintain the Parking Ramp, the equipment
provided by the City and all parts thereof, in good condition and repair and in as safe condition
as its operation will reasonably permit; making all repairs thereto, which may be reasonably
necessary for this purpose, including but not limited to the following:
(a) Maintain all pavement markings, bumper guards and wheel blocks.
(b) Supply electric light bulbs and replace worn out bulbs and fuses.
(c) Maintain and care for all plantings.
(d) Maintain all parking equipment including all gates, ban•icades, ticket spitters, etc.
(e) Maintain the premises in a clean, presentable condition and not allow dirt, paper,
or trash of any kind to accumulate upon the premises; and remove snow, ice and other
obstructions from the property and from driveways and sidewalks on the Parking Ramp
premises, all in accordance with reasonable standards. The snow and debris removed
shall not be placed upon the public ways or any portion thereof.
(f) Make minor necessary repairs to the structure, plumbing, lighting and heating
systems.
(g) Maintain and keep in good working order all directional and informational signs
located within or on the exterior of the Parking Ramp.
In the event that the Operator shall fail to comply with any of the aforementioned
obligations, the City may, after five (5) days notice to comply, in addition to other remedies set
forth herein, enter upon such premises and take all steps necessary to insure compliance with the
above obligations; and all work, labor and materials shall be charged to and paid for by the
~.
Operator, plus a reasonable amount for the overhead of the City (which amount shall not exceed
ten percent (10%) of the amount otherwise to be charged to the Operator). Notwithstanding the
foregoing, with respect to any maintenance, repair or other obligations that have not been timely
performed by the Operator and which are not an emergency (i.e. the failure to timely perform
does not result in the imminent threat of injury to persons or substantial damage to property),
then the City shall not enter upon the premises or take steps necessary to ensure such compliance
unless the failure has not been cured by the Operator within thirty (30) days after notice from the
City or such longer period as is reasonably necessary to perform, provided that the Operator
commences performance within said thirty (30) day period and thereafter diligently continues to
prosecute such cure.
2.5) Finance Procedure.
(a) If and when there is a determination made pursuant to the Management
Agreement/Lease to establish fees for parking, the Operator and the City agree to
negotiate in good faith to reach agreement on the procedures for collecting, reporting,
allocating and depositing receipts from parking fees. It is agreed that the fees received
for parking shall belong to the City; provided, however, the City acknowledges that the
Operator will incur additional costs and expenses for on-site personnel needed to operate
the Parking Ramp if parking fees are required, and that the Operator will also incur
additional costs and expenses for administration, accounting and bookkeeping purposes
in that event. The parties agree that the Operator shall be allowed to retain from the
parking receipts the amount needed to cover the Operator's additional expenses and
overhead incun•ed as a result of the parking fee structure.
(b) The Operator agrees to set up and maintain accurate records, books and accounts
in the manner and form approved by the City; and that personnel authorized by the City
shall have the right to audit and examine said records, books and accounts at any time
upon not less than two (2) business days' notice during the regular business hours. The
accounts shall reflect, but not be limited to, daily volume of parking and income (if any)
and expense accounts; and the Operator shall prepare and submit monthly an annual
profit and loss statement, as well as any incidental financial or operating statements, as
deemed necessary by the City or as the normal course of operation shall dictate. All
financial records shall be prepared and made available as provided by City and State
laws. In the event that audits or examinations disclose shortages, or thefts or any type,
the Operator shall reimburse the City for any revenue lost or any customer overcharges,
as the City deterniines. Operator shall prepare an annual budget and submit same to the
City by April 1, for the City's next fiscal year commencing January 1. Notwithstanding
any other terms or provisions of this Agreement, this Section 2.5(b) and Section 2.6 shall
not apply if fees have not been established for parking and if the Redeveloper and the
Operator are the same person or entity.
2.6) Annual Statement and Account. Subject to Section 2.5(b), above, the City may
conduct an annual audit.
2.7) Alterations. The Operator shall make no alterations or additions to said premises
and appurtenances without the prior consent of the City. It is expressly agreed that all
4.
appurtenances, presently or hereafter located in and upon said Parking Ramp, whether affixed
thereto, or not, are and shall. be deemed to be part of the Parking Ramp, and, as such, shall
remain the property of the City.
2.8) Operating Expenses. All of the Operator's costs and expenses of operation and
maintenance of the Parking Ramp, including but not limited to costs and expenses incurred to
comply with Sections 2.1, 2.4, 2.5, 3.1, 5.1 and 6.2 of this Agreement, shall be deemed to be
"Operating Expenses." It is understood that there shall be no rebate to the Operator or its
officers or employees of any portion of any expenditures representing Operating Expenses, by
any person, firm or corporation which has provided goods or services to the Operator, unless
such rebate is approved in writing by the City or unless the Operator and the Redeveloper are
one and the same person or entity.
2.9) City to Contract Limited. No employee or agent of the Operator shall contract
with the Operator, directly or indirectly, either as an owner, employee, or agent, to perform or
provide services outside of his or her duties or scope of employment, except with the prior
written approval of the City.
2.10) Damage by Operator. The Operator shall repair any damage to the Parking Ramp
or equipment therein, caused by the negligence of its employees. Such cost of repair shall not be
a reimbursable Operating Expense.
2.11) Agreement Not a Tenancy. Nothing in this Agreement shall be construed as
creating a tenancy between the City and the Operator; nor shall the Operator be deemed to have
the right of occupancy to the premises or any part thereof pursuant to this Agreement.
ARTICLE III.
PERSONNEL
3.1) Selection. The Operator agrees to secure, furnish, train and pay for all personnel
as are reasonably necessary to be employed in the proper operation of the Parking Ramp. Any
and all employees of the Operator, or other persons while engaged in the performance of any
work or services required by the Operator under this Agreement shall be considered employees
of the Operator only, and not employees of the City or have any conh•actual relationship with the
City; and any and all claims that may or might arise under the Workers' Compensation Act of
the State of Minnesota, or similar act on behalf of said employees or other persons while so
engaged in any work or services provided to be rendered herein, shall be the sole obligation and
responsibility of the Operator.
3.2) Non-Discrimination. The provisions of all applicable federal, state and local laws
and regulations pertaining to discrimination shall be considered a part of this Agreement as if
more frilly set forth herein.
3.3) Personnel Regulations. The Operator further agrees:
(a) To use good faith efforts to fiu•nish prompt, safe, efficient and courteous service
adequate to meet all demands for its service at the Parking Ramp.
5.
(b) To furnish said service on a fair, equal, and non-discriminatory basis to all users
thereof.
(c) To use conunercially reasonable efforts to manage Parking Ramp attendants (if
any) to insure that they shall discharge their duties in a safe, courteous, and efficient
manner to maintain a high standard of safety and service to the public.
(d) If parking fees are charged, not to intentionally divert or cause to be diverted any
business from the facilities.
(e) Unless otherwise expressly authorized by the automobile's owner, neither the
Operator nor its employees shall enter or drive any automobile that does not belong to
them which has been placed upon the premises for the purpose of self-parking, except in
the event of an emergency.
ARTICLE IV.
REPAIR AND REPLACEMENT OBLIGATIONS OF THE REDEVELOPER
4.1) The Operator shall not be responsible for or pay for the following:
(a) Extraordinary repair and maintenance of the Parking Ramp and equipment.
(b) Necessary major repairs to the structure, including the foundation, walls, parking
decks, roof thereof and also including plumbing, elevators, lighting and heating systems,
contained therein.
(c) Repairs or restoration needed due to condemnation, or due to fire or other
casualty. (Insurance on the Parking Ramp shall be maintained by the City at its expense.)
ARTICLE V.
PAYMENTS OF OPERATOR
5.1) Management Fee and Administrative Cost and Expenses. Pursuant to the terms of
the Management Agreement/Lease, the Redeveloper has agreed to pay as they become due any
and all costs incurred by the City pursuant to this Agreement. Accordingly, the Operator shall
look to the Redeveloper for payment of the management fee, administrative costs and expenses
and other Operating Expenses, subject, however, to the terms of Section 2.5(a), above.
The Operator shall keep records of all such fees, costs and expenses and if the Operator
and the Redeveloper are separate entities and are not under common control, then the Operator
shall submit reports detailing the amount and purpose of all such expenditures to the City on
each March. 1, September 1 and December 1 during the term of this Agreement.
6.
ARTICLE VI.
INDEMNITY, BONDS, INSURANCE
6.1) Indemnity. The Operator covenants and agrees to pay, subject to all provisions of
this Agreement, all damages for injuries to real or personal property to the extent caused by the
negligence or willful misconduct of the Operator or any servant, agent, or employee of the
Operator in connection with the operation of the Parking Ramp under this Agreement. The
Operator covenants and agrees to defend, indemnify, save, and keep the City harmless against all
liabilities, losses, costs (including court and stenographic costs and an amount in reimbursement
of attorneys' fees), damages, expenses, causes of action, suits, claims, demands and judgments
incurred by the City to the extent caused by the negligence or willful misconduct of the Operator
or any servant, agent or employees of the Operator in connection with the operation or the
Parking Ramp under this Agreement. In the event any claim arises for which indemnification by
the Operator is required, the City shall tender the claim to the Operator immediately after the
earlier of (i) service of process of any pleading asserting the claim, or (ii) receipt by the City of
written notice of a claim. Upon receipt of such tender, the Operator shall pay such claim or the
Operator may defend any such claim with counsel of the Operator's choice. The Operator shall
have the sole authority to settle any claim in the Operator's sole discretion, provided that any
such settlement shall not require the City to assume or admit liability or to pay money (unless
such amount is paid by the Operator). The City shall not assume or admit any liability or
obligation for any cost, expense, claim, liability or damage that may be deemed to be the
obligation of the Operator. Nothing in this Agreement shall be deemed to restrict the Operator
from disputing; and if necessary, appealing, any claim for which indemnification by the Operator
is required, at the Operator's cost and expense.
6.2) Insurance. The Operator shall procure and maintain continuously in effect, during
the term of this Agreement, insurance of the kind and amount sufficient to cover any liability of
the Operator under the Workers' Compensation Act of Minnesota. Such insurance required in
this section shall be taken out and maintained in responsible insurance companies in the State of
Minnesota. Operator shall furnish the City a policy evidencing such insurance or certificates of
the respective insurers stating that such insurance is in force and effect.
ARTICLE VII.
TERMINATION
7.1) Surrender of Premises. Upon termination of this Agreement by lapse of time or
otherwise, the Operator shall sui•~•ender and turn over possession of the Parking Ramp premises
to the City in the same manner and condition as it received the premises, excepting reasonable
wear and tear and damage by casualty.
7.2) Effect of Default. It is expressly agreed between the parties hereto that in the
event the Parking Ramp is deserted, vacated, or abandoned, or if the Operator shall sell, assign,
or pledge this Agreement (except as permitted hereby); or if default be made in the perfoi7nance
of any of the covenants and agreements to be performed by the Operator; or if the Operator shall
fail to comply with any of the statutes, ordinances, rules, orders, regulations or requirements of
7.
the federal, state, or city government; or if the Operator shall file a petition in bankruptcy; or
make an assignment for the benefit of creditors or take advantage of any insolvency act, the City
may elect to terminate this Agreement and the term hereof; and in the event the City elects to
terminate this Agreement because of a violation of this section, upon such termination, the
Operator shall compensate the City for the loss in revenue, if any, suffered by reason of such
termination. Any other terms or provisions in this Agreement to the contrary notwithstanding,
the City shall not exercise any rights or remedies in connection with any breach or default by the
Operator hereunder until after the City has delivered to the Operator written notice of such
breach or default and the same remains uncured for thirty (30) days thereafter, or beyond such
longer period as is reasonably necessary to cure the default, provided that the Operator
commences cure within said thirty (30) days and thereafter diligently prosecutes cure.
7.3) Optional Termination. The Operator may terminate this Agreement, without
cause, upon thirty (30) days' prior written notice to the City.
ARTICLE VIII.
MISCELLANEOUS
8.1) Rights Cumulative. The rights and remedies hereby created are cumulative, and
the use of one remedy shall not be taken to exclude or waive the right to use of another.
8.2) Notice. In any case where it is desirable for the City to serve upon the Operator
any notice or demand, it shall be sufficient to -send a written notice or demand, by certified mail,
postage prepaid, addressed to:
Stadium Village Properties, LLC
c/o University Technology Centers, Inc.
1313 Fifth Street SE, Suite 100
Minneapolis, Minnesota 55414
Attn: Doug Walker
In any case where it is desirable for the Operator to give or serve upon the City any notice
or demand, it shall be sufficient to send a written notice or demand, by certified mail, postage
prepaid addressed to:
City of Columbia Heights
Columbia Heights, Minnesota 55421
8.3) Compliance with Laws and Ordinances. The Operator agrees to operate said
Parking Ramp in compliance with this Agreement and all laws and ordinances in effect or which
may hereafter be adopted by and for the City of Columbia Heights, provided that laws and
ordinances hereafter adopted are not inconsistent with the terms and provisions of this
Agreement.
8.
8.4) Rules and Regulations. The Operator agrees to abide by rules and regulations
relating to the use of the Parking Ramp as are promulgated by the Redeveloper, pursuant to the
Management Agreement/Lease, which rules and regulations may from time to time be changed.
8.5) Assignability b~perator. The rights, obligations and duties under this
Agreement of the Operator shall not be assigned or transferred in whole or in part without the
prior written permission of the City, except that the rights, obligations and duties under this
Agreement of the Operator may be assigned from time to time to the holder of the interest of
Redeveloper under the Management Agreement/Lease (as said interest may be assigned from
time to time), without the permission of the City.
8.6) Assignability bey. The rights, obligations and duties of the City under this
Agreement at the City's option may be assigned or transferred in whole or in part by the City of
Columbia Heights without the consent of the Operator.
8.7) Damage or Destruction. If during the term of this Agreement, all or any part of
the Parking Ramp shall be destroyed or damaged from any cause, then the obligations of the
Operator shall be suspended with respect to the unusable portion(s) of the Parking Ramp until
the same have been repaired and restored (which repair and restoration is not the obligation of
the Operator).
8.8) Operation and Maintenance After Termination. The Operator agrees that the
City, at its option, may upon the termination of this Agreement extend this Agreement with the
Operator on an negotiated basis, may solicit bids or negotiate with others for such services, or
may operate the Parking Ramp with City persomiel.
The Operator agrees that by entering into this Agreement it obtains no additional rights or
privileges in the future regarding the operation of the Parking Ramp and agrees that the City has
not waived or abrogated any. power or discretion it has regarding the operation of the Parking
Ramp upon termination of this Agreement.
8.9) Reasonableness Standard. Operator's performance obligations under this
Agreement shall be based upon a commercially reasonableness standard under the applicable
circumstances. In addition, at any time that the Operator or the City is entitled to exercise
discretion or judgment, such as in connection with any consent or approval, a reasonableness
standard shall be deemed to apply, and neither party shall unreasonably withhold, condition or
delay its consent or approval, nor exercise discretion in an arbitrary or unreasonable manner.
8.10) Entire Agreement. This Agreement is the entire agreement between the City and
the Operator regarding the subject matter hereof. This Agreement shall not be modified or
amended except in writing, signed by the City and the Operator. The City represents that the
Agreement Between the City of Columbia Heights and Zaidan Holdings Inc. for the Operation of
the Parking Ramp dated June 30, 1988 expired and is of no force or effect.
9.
IN WITNESS WHEREOF, the City and the Operator have caused this Agreement to be
executed in their respective corporate names, as of the date first written above.
CITY OF COLUMBIA HEIGHTS
By:
Its: Mayor
By:
Its: City Manager
STADIUM VILLAGE PROPERTIES, LLC
By:
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
Its:
The foregoing instrument was acknowledged before me this day of
2008, by and
the Mayor and City Manager of the City of Columbia
Heights, a Minnesota municipal corporation.
Notary Public
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
The foregoing instrument was acknowledged before me this day of
2008, by ,the of
Stadium Village Properties, LLC, a Minnesota limited liability .
Notary Public
l 177963.3
10.