HomeMy WebLinkAboutContract 2122
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 o2 rj~ay of ~ , 2008, between the
City of Columbia Heights, a Minnesota muiucipal 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 between 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 Terry 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 Terry Evenson's interest in the Management Agreement/Lease is referred
to herein as the "Redeveloper."
ARTICLE I.
TERM
L 1) Term. The term of this Agreement shall commence on the date of this Agreement
and shall hereafter coincide with the team (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 August 1, 1982, (ii) the initial twenty (20)-year term of
the Management Agreement/Lease ended July 31, 2002, and (iii) Part II of the Management
Agreement/Lease is now in the first ten (10)-year renewal option, which will continue until ,
July 31, 2012, and will then automatically renew tluough July 31, 2022, 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 July 31, 2012,
and shall automatically renew for an additional ten (10) years, through July 31, 2022, 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 July 31, 2012. 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 gild 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, ilcluding the
Parking Ramp itself.
2.2) Intentionally left blank
2.
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 teens 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 Operator 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 making 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, barricades, ticket spitters, etc.
(e) Maintain the premises in a clean, presentable condition and not allow du-t, paper,
or trash of any kind to accumulate upon the premises; and remove snow, ice and other
obstructions from the property and from driveways aizd 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
3.
does not result in the innninent 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 aild 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 incurred 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 fore 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
fmancial 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 determines. 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 terns 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 arulual 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
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.
4.
2.8) Operating Expenses. All of the Operator's costs and expenses of operation and
maintenance of the Parlcing 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 Rainp
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 Ra1np. 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 contractual 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 fully set forth herein.
3.3) Personnel Regulations. The Operator further agrees:
(a) To use good faith efforts to furnish prompt, safe, efficient and courteous service
adequate to meet all demands for its service at the Parking Ramp.
(b) To furnish said service on a fair, equal, and non-discriminatory basis to all users
thereof.
5.
(c) To use cormnercially 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 acid 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.
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
6.
negligence or willful misconduct of the Operator or any servant, agent, or employee of the
Operator in connection with the operation of the Parking Raanp 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 aild 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 comlection 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 ni 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 Mimzesota. 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 surrender and hu-n 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 performance
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
the federal, state, or city govermnent; 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 terns or provisions in this Agreement to the contrary notwithstanding,
7.
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
cormnences 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
590 40t~' Avenue NE
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 ternls and provisions of this
Agreement.
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) Assi ng ability by Operator. 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
8.
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) Assi ng abilit~y City. 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 personnel.
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 coimection with any consent or approval, a reasonableness
standard shall be deemed to apply, and neither parry shall unreasonably withhold, condition or
delay its consent or approval, nor exercise discretion in an arbitrary or unreasonable manner.
8.10) Entire Agieement. This Agreement is the entire agreement between the City and
the Operator regarding the subject matter hereof. This Agreement shall not be modified or
annended except in writing, signed by the City and the Operator. The City represents that the
Agreement Between the City of Columbia Heights acid Zaidan Holdings Inc. for the Operation of
the Parking Ramp dated June 30, 1988 expired acid is of no force or effect.
9.
i
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 COI~6J,~VIBIA HF~GHTS
B
Its: for- Gary Y,: Peterson
By:
Its: City Manager- alter R. Fehst
STADIUM VILLAGE PROPERTIES, LLC
By:
STATE OF MINNESOTA )
ss.
COUNTY OF ANOKA )
The foregoing instrument was acknowledged before me this ~~` day of
2008, by CfxS-~tv 1.,. P~.~'So ~ and
~,~ol~etr (~. ~eOtS f ,the Mayor and City anager of the City of Columbia
Heights, a Minnesota municipal corporation.
Notary Public
STATE OF MINNESOTA )
ss.
COUNTY OF HENNEPIN )
clan a eaa~N
ROTARY PUBttC - MINt~SOL1
AAYCOMMISSION F](PIRES~I/31p201s
The foregoing instrument was acknowledged before me this ~ day of
2008, by ,~i9~~t'j~,/i9 ~ ,the (~ _il= /11g;Q1~ of
Vi aierties, LLC, a Mimnesota limited liability.
~~~, P - -
1177963.3 ANGENOLA INILLIAlhG8
_ NOTARY PUBLIC - MINNEb4~iM
my Commission Expires Jan. 91,
10.
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