5.g) Amendment to Lease with Scandia Marine Lions Meeting Date: 10/18/2011
Agenda item: �
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City Council Agenda Report
City of Scandia
14727 209th St. North
Scandia, MN 55073 (651) 433-2274
Action Requested: Approve an amendment to the lease with the Scandia Marine Lions
for the Annex (former fire hall.)
Deadline/ Timeline: N/A
Background: • The Lions have used the Annex for storage and for the office for
their charitable gambling activities for several years. The Boy
Scouts also use part of the building,
• During preparation of the 2009 budget, the city proposed reducing
the utility costs for this building as it was not used for any
municipal functions. The Lions agreed to pay the city rent of$100
per month to help offset the utility costs. A lease was signed in
January, 2009.
• Staff recently reviewed utility billings since lease was signed. The
average monthly bills exceeded $100 in 2010, and are projected to
be about $129 per month in 2011.
• The Lion's board and the members have approved an increase in
the rent from $100 to $150 per month, effective November 1.
• The City Attorney has been requested to prepare a lease
amendment which would enact the rent increase.
Recommendation: I recommend that the City Council approve the rent increase from
$100 to $150 per month, and authorize the Mayor and Administrator
to sign a lease amendment on behalf of the city.
Attachments/ • Current Lease Agreement
Materials provided: . Utility Billing History, 2009-2011 YTD
Contact(s): Bruce Swenson, Lions Gambling Manager
(651 433-2619)
Prepared by: Anne Hurlburt, Administrator
(Lions Lease Amendment)
Page 1 of 1
10/14/11
�
LEASE
This Lease is made and entered into this lst day of January, 2009, between the City of
Scandia, 14727 209'h Street, Scandia, MN 55073 ("Landlord") and Scandia Marine Lions Club,
P. O. Box 151, Scandia, MN 55073 ("Tenant").
1. Premises. Landlord hereby demises and Tenant hereby leases the office space in the old
City Fire Hall/Annex.
2. Term of Lease. This Lease is a month to month Lease beginning on January 1,2009.
3. Rent. The rent for the premises is $100.00 per month payable in advance on or before the
first day of each month during the term of the Lease.
4. Use. Tenant shall have the right to use the premises for office uses related to its
charitable gambling activities.
5. Insurance. Tenant shall procure and maintain such policies of public liability insurance as
it may deem appropriate and shall indemnify and hold Landlord harmless from all claims,
damages and liabilities arising out of its use or enjoyment of the premises.
6. Waiver of Subro atg ion. Landlord and Tenant hereby release each other and each other's
officers, directors, employees, stockholders, partners, parent companies, subsidiary
companies and agents from liability or responsibility for any loss or damage to property
covered by valid and collectible fire insurance with standard extended coverage
endorsements. This release shall apply not only to liability and responsibility of the
parties to each other but shall also extend to liability and responsibility for anyone
claiming through or u.nder the parties by way of subrogation or otherwise. This release
shall apply only with respect to loss or damage actually recovered from any insurance
company. Landlord and Tenant shall include this clause or endorsement in their
respective fire and extended coverage insurance policies as long as the same shall be
obtained without extra cost, or if extra cost shall be charged therefrom, so long as the
other party, after notice,pays such extra.cost.
7. Ri t of Entry. Landlord may enter the properiy at reasonable hours upon notice to
Tenant to repair or inspect the properiy and perform any work that Landlord decides is
necessary.
8. Default. If Tenant does not pay the rent or other amounts when due, or if it violates any
agreement in the lease, Landlord may take possession of the property. If Tenant does not
move out, Landlord may bring an eviction action.
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9. Landlord Res�onsibility. Landlord shall provide and pay for electricity and minimum
heat for the premises. Landlord shall not be responsible for any vandalism of, damage to,
or loss of Tenant's property. Landlord shall not be required to provide any maintenance
of the property except as Landlord determines to be in its best interest.
IN WIT'NESS WHEREOF, the Landlord and Tenant have signed this lease this 16th day
of December, 2008.
LANDLORD: � TENANT: - •
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City of Sc ia � Scandia Marine Lions Club
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By: By: �'
Its: Mayor Its: � 1>�
By: ��' � .e��
Its: Administrator � G�'(�
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Utility Costs for the Annex
2009 2010 2011
Gas Electric Gas Electric Gas Electric
Jan $213.33 $35.99 $132.57 $38.80 $210.71 $44.49
Feb $285.40 $53.74 $192.93 $43.48 $237.60 $48.12
Mar $158.04 $37.30 $232.32 $43.20 $167.55 $47.50
Apr $96.58 $37.77 $87.48 $31.84 $135.46 $40.94
May $47.98 $28.63 $41.90 $26.28 $95.42 $40.44
June $25.40 $22.45 $30.01 $22.97 $31.24 $35.34
luly $23.28 $23.07 $25.92 $25.88 $29.53 $28.51
Aug $25.11 $30.00 $27.50 $27.06 $29.56 $37.52
Sept $22.88 $25.26 $26.11 $35.02 $29.58 $42.41
Oct $25.59 $31.88 $25.73 $44.44 $29.39 $43.60
Nov $30.46 $33.66 $25.80 $26.65
Dec $52.95 $30.80 $57.11 $29.35
TOTAL $1,007.00 $390.55 $905.38 $394.97 $996.04 $408.87
2009 $1,397.55 2010 $1,300.35 2011 $1,404.91
Jan-Oct
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AMENDMENT TO LEASE
This Amendment to Lease is made and entered into this day of October, 2011,
between the City of Scandia, 14727 209th Street N., Scandia, MN 55073 ("Landlord") and
Scandia Marine Lions Club, P. O. Box 151, Scandia, MN 55073 ("Tenant").
1. For good and valuable consideration, the Landlord and Tenant agree that Paragraph 3 of
that certain Lease ("Lease") dated January 1, 2009 made and entered into between them
for the rental of the old City Fire Hall/Annex is hereby amended as follows:
3. Rent. Commencing with the rental due November l, 2011, the rent for the
premises shall be $150.00 per month payable in advance on or before the first day
of each month during the term of the Lease.
2. Except as herein amended, all of the terms and conditions of the Lease shall remain in
full force and effect. _
IN WITNESS WHEREOF, the Landlord and Tenant have signed this lease this
day of October, 2011.
LANDLORD: TENANT:
City of Scandia Scandia Marine Lions Club
By: By:
Randall Simonson
Its: Mayor Its:
By: By:
Anne Hurlburt
Its: Administrator Its
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