2008-02-26PLEASE TURN OFF CELL PHONES & PAGERS IN COUNCIL CHAMBERS. ~ \\~
AGENDA ~~~~-I
Oi1SING~ & REAEVI;;L()PMENT AUTI~ORITY
~UND H .
VIO
REGU~I~AFi;1VIE~`I~INC~-.:.
TUESD AYt'F~BRUAR~ 26,;2008 ~ 7:00'PM
C '~IO~LTND C~I'TI' C{O~UNCIL CHr~M~BERS i
Pa e
Open meeting.
Action approving agenda, with any amendments
Action approving minutes: February 12, 2008
Indian Knoll Manor Manager's Monthly Report
Mound Redevelopment Update
Consideration/Action on Resolution Ratifying
Purchase Agreement for Property at 5555 Shoreline
Drive
Consideration/Action on Resolution Ratifying
Purchase Agreement for Property at 5545 Shoreline
Drive
Consideration/Action on lease for property at 5555
Shoreline Drive
Adjourn
1
2-14
15
16
17-3 3
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
FEBRUARY 12, 2008
The Housing and Redevelopment Authority in and for the City of Mound, Minnesota, met
in regular session on Tuesday, February 12, 2008, at 7:00 p.m. in the council chambers
of city hall.
Members present: Chairman Mark Hanus, Commissioners David Osmek, Mike Specht,
John Beise and Greg Skinner
Others present: City Attorney John Dean, Executive Director Kandis Hanson, City Clerk
Bonnie Ritter, Community Development Director Sarah Smith, Ken Perbix, Amanda
Schwarze.
1. Open meeting
Chair Hanus called the meeting to order at 7:00 p.m
2. Approve agenda
MOTION by Osmek, seconded by Specht to approve the agenda. All voted in favor.
Motion carried.
3. Approve minutes
MOTION by Beise, seconded by Skinner to approve the minutes of January 22, 2008.
The following voted in favor: Beise, Skinner, and Hanus. The following voted against:
None. Osmek and Specht abstained from voting because they were absent from that
~~' meeting. Motion carried.
4. Redevelopment financing and proiects
At 7:04 p.m., John Dean explained that the HRA will meet in closed session for an
update on the status of offers to purchase four properties: 5545, 5555, 5567 and 5575
Shoreline Drive.
The HRA reconvened at 7:30 and John Dean stated that at the closed session the four
properties were discussed and legal counsel received direction from the HRA on how to
proceed.
5. Adiourn
MOTION by Specht, seconded by Osmek to adjourn at 7:31 p.m. All voted in favor.
Motion carried.
Chair Mark Hanus
Attest: Bonnie Ritter, City Clerk
,--.
,r
-1-
MOUND HRA
INDIAN KNOLL APARTMENTS
PROPERTY MANAGER'S MONTHLY REPORT
February 26, 2008
Manager's Agenda
• January Bank Statements
• January Income Statement -
• Review of bills paid
^ December bills not in January packet
^ January bills
• Managers Report
-2-
n
1
WELLS FARGO BANK, N.A.
.-tt(DGEDALE OFFICE
SST OFFICE 80X B 514
' .~NNEAPOLIS, MN 55479
Page 1 of 3
1-2 11 ~8
Account Number:
Statement Period:
C0300)
33530
Jan 1, 2008-
Jan 31, 2008
31
,I,i„I,I„~II~~11,~~I,~I~~~II,II,,,,I,11„~I~I„i~~~ll~ll~,
HOUSING & REDEVELOPMENT AUTHORITY
SPECIAL ACCOUNT
CITY OF MOUND
FINANCE DIRECTOR
5341 MAYWOOD RD
MOUND MN 55364-1627
Image Count:
If you have any questions about this. statement or your accounts, call: 800-225-5935 (1-800-CALL-WELLS).
Your Accounts at a Glance
Account Beginning Deposits/ Withdrawals/ Ending
Type Balance Credits Debits Balance
Basic Business Checking with Interest 47,915.27 16,094.38 - 26,227.53 37,782.12
000-0033'530
Vews from Wells Fargo
3~'Business Checking with interest 000-0033530
Housing & Redevelopmenf Authority
Special Account
Dec 31 Beginning Balance
47,915.27
Jan 31 Ending Balance 37,782.12
Deposits and Credlts ---------------------------_--_------------------------------------------------------------------------------
Posted
Date Transaction Detail Amount
Jan 04 Deposit 3,774.00"
Jan 04 Deposit 2,364.10`
Jan 04 Deposit 61.00 ~'
Jan 09 Hud Treas 303 Misc Pay 010908 410962421860103
d MN0740
F
ti
********
*
*
/
354
00
5
un
hud Opera
ng
099182356
RMT
VV .
,
;
Jan 17 Deposit 3,806.00 ~'
Jan 17 Deposit 730.ODc,-~
Jan 31 Interest Payment 528
Checks Pald --------------------------------------------------------------------------------------------------------------------------------
Check # Date Amount
2842 Jan 11 1,756.00
2843 i- Jan 08 300.00
2844 Jan 08 826.55
2845 Jan 08 138.65
2846 Jan 07 209.81
2847 Jan 08 1,018.36
2848 -+- Jan 07 95.02
!`"^ 2849 + Jan 04 1,913.09
* Gap in Check Sequence
+ Item converted to substitute check
Check # Date Amount
2850 + Jan 07 850.00-
2851 + Jan 07 850.00
2852 Jan 23 47.92
2853 Jan 23 103.00
2854 Jan 11 1,305.95
2855 Jan 23 2,403.00
2856 Jan 23 480.00
2857 Jan 24 367.33
:ontinued on next page
-3-
Page 2 of 3
1119
Housing & Redevelopment Authority Account Number: 000-0033530
Special Account Statement End Date: 01/31/08
Checks Pafd ------------------------------------------------------------------------------------------
Check # - -- Date Amount
2858 Jan 22 152.57
2859 + Jan 30 45.00
2860 Jan 29 1,743.67
2861 + Jan 17 2,314.64
2863 Jan 31 625.00
2865 Jan 30 439.75
2867 Jan 30 209.81
2868 Jan 30 34.50
Gap in Check Sequence
+ Item converted to substitute check
Check # Date Amount
2869 Jan 31 275.87
2870 ~ + Jan' 28 107.04
2871 + Jan 30 5,000.00
2873 Jan 31 57.53
2874 Jan 31 139.90
2875 + Jan 28 120.46
2876 + Jan 28 2,297.11
Dally Balance Summary -------------=-------------------------------------------------------=---------------------------------------------
Date Balance Date Balance
Dec 31 47,915.27 Jan 22 ~~ ____________ 52,273.73
Jan 04 52,209.28 Jan 23 49,239.81
Jan 07 50,196.45 Jan 24 48,872.48
Jan 08 47,912.89 Jan 28 46,347.87
Jan 09 53,265.89 Jan 29 44,604.20
Jan 11 50,204.94 Jan 30 38,875.14
Jan 17 52,426.30 Jan 31 37,782.12
Average Collected Balance $ 49,038.69
Interest Summary ------------------------------------------------------------------------------------------------
Annual Percentage Yield Earned This Period 0.13%
Interest Earned During .This Period 5.28
Year fo Date -nterest and Bonuses Paid 5.28
Total Interest and Bonuses Earned /n 2007 51.45
For Your !nterest
Thank you for banking with Wells Fargo.
-4-
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-6-
Mound MN Housins~ Authority
2020 Commerce Blvd
Mound, MN 55364-1577
As OF
January 31, 2008
BALANCE SHEET
ASSETS
11.4101 -.Cash General Fund
11.1700 - Petty Cash
112200 - Tenants Accounts Receivable
112900 --'-City of Mound
116200 - General Fund Investments
121100 - Prepaid Insurance
129000_- Deferred Charges
140002 - Development Cost
140003 - -Development Cost Contra
140005 - Accumlated Depreciation
140007. - Buildings
140008 - Furniture,Equipment,Machines-Dwelling
140009 - Furniture,Equipment,Machines-Admin
140016 -_ Land Improvements
140017 - Building Improvements
140055 - Mod Cost Complete
140095 -Mod Cost Uncomplete
150600 -Mod Cost Uncomplete Contra
A,-1.
TOTAL ASSETS
SURPLUS AND LIABILITIES .
211100 -Accounts Payable Vendors & Contractors
211400 - Tenants Security Deposits
211410 -Tenants Pet Deposits
211499 - Security Deposit Interest
212900 - Notes Pay Levy Fund
213700 - Payment in Lieu of Taxes
213701 -PILOT Current Year
280200 -Investments in Fixed Assets -Net
280600 -Unrestricted Net Assets
Current Year Net Activity
TOTAL SURPLUS AND LIABILITIES
..--~.
36,641.22
100.00
2,144.90
910.11
1,867.81
5,019.32
(42.15)
1,505,904.64
(2, 335, 815.55)
(2,031,043.28)
1,642,970.53
37,373.95
17,493:01
30,440.04
704,454.45
829,910.91
42, 567.67
(10,846.81)
(129.64)
(9,883.00)
(4, 500.00)
(604.96)
(40, 000.00)
(3,490.53)
(1,447.30)
(420, 606.87)
38,457.96
(37,846.43)
~,
-7-
Mound MN Housins~ Authority
2020 Commerce Blvd
Mound, MN 55364-1577
As Of
January 31, 2008
Statement of Operating Receipts & Expenditures
YTD Over .
_ ~ Current * YTD * Prorated ~** (Under)
Act- ivity Balance Budget ~ Budget
311000 - Dwelling Rental
312000 - Excess Utilities
Total Rental Income
(44,610.00) (44,610.00) (11,036.67) 33,573.33
(41.55} (41.55) (63.33) (21.78)
(44,651.55) (44,651.55) (11,100.00) (33,551.55)
361000 - Investment Interest/General Funds
369000 - Other Income
802000 - Operating Subsidy
Total Other Operating Receipts
Total Receipts
Expenses
411000 -Westport Payroll & Benefits
411045 -Employee Benefits Administrative
411200 -Manager Payroll
41000--Legal Expense
414000 - Staff Training
415000 - Travel
417000 -Accounting Fees
417100 - Auditing Fees
419000 - Sundry-Administrative
419500 - Outside Management.
Total Administrative Expense
422000 - Tenant Services
Total Tenant Services Expense
431000 - Water
432000 - Electricity
433000- Gas
439000 - Other Utility Expense
439100 - Garbage Removal
Total Utilities Expense
441000 - Maintenance Labor
441045 -Employee Benefits Maintenance
442000 - Materials
443000 - Contract Costs _
Total Maintenance.Expense
(18.55) (18.55) (4.17) 14.38
(943.04) (943.04) (333.33) 609.71
(28,427.86) (28,427.86) (7,553.92) 20,873.94
(29,389.45) (29,389.45) (7,891.42) (21,498.03)
(74,041.00) (74,041.00) (18,991.42 (55,049.58)
2,278.55 2,278.55 0.00 2,278.55
347.88 347.88 640.83 (292.95)
6,089.00 6,089.00 2,708.33 3,380.67
0.00 0.00 83.33 (83.33)
0.00 0.00 41.67 (41.67)
47.59 47.59 33.33 14.26
1, 377.76 1, 377.76 208.33 1,169.43
5,000.00 5,000.00 625.00 4,375.00
2,494.43 2,494.43 2,229.17 265.26
4,250.00 4,250.00 850.00 3,400.00
21, 885.21. 21, 8 85.21 7,419.99 14, 465.22
0.00 0.00 16.67 (16.67)
0.00 0.00 16.67 (16.67)
489.29 489.29 266.67 222.62
4,576.74 4,576.74 1,629.17 2,947.57
7,209.00 7,209.00 2,351.67 4,857.33
2,528.69 2,528.69 1,159.17 1,369.52
901.86 901.86 450.00 451.86
15,705.58 15,705.58 5,856.68 9,848..90
3, 978.33 3, 978.33 2, 833.33 1,145.00
891.09 891.09 670.00 221.09
1,190.68 1,190.68 650.00 540.68
6,636.30 6,636.30 1,350.83 5,285.47
12,696.40 12,696.40 5,504.16 7,192.24
* Current Activity aid YTD Balance represent October 1, 2007 through January 31, 2008
**YTD Prorated Budget represents 1/12th of 2008 Budget
HUD has agreed to change our year end from 9/30 to 12/31. Actuals will reflect the
15 month period (10:/1/(37 - 12/31/08). Theydid not require;'a 15 month budget to be
submitted, So we need to make `allowances .Fiuring this transition period..
__ - _-
_ _$_
1
'" Mound MN Housin~t Authority
2020 Commerce Blvd
Mound, MN 55364-1577
As Of
January 31, 2008
Statement of Operating Receipts- & Expenditures
451000 - Insurance
452000 - Pmts In Lieu Of Taxes
457000 - Collection Loss
Total General Expense
Total Routine Expense
Total Nonroutine Expense
Total Expense
I
YTD Over
Current YTD Prorated ~ (Under)
Activi Balance Budget Budget
2,826.19 2,826.19 1,016.67 1,809.52
1,447.30 1,447.30 262.17 1,185.13
(142.67) (142.67} 0.00 (142.67)
4,130.82 4,130.82 1,278.84 2,851.98
54,418.01 54,418.01 20,076.34 34,341.67
0.00 0.00 0.00 0.00
54,418.01 54,418.01 20,076.34 34,341.67
2
-9-
INDIAN KNOLL MANOR
2020 COMMERCE BLVD
MOUND, MN 55369
PAID INVOICES SORTED BY VENDOR
~...-...-- ~..,...r..~.._.-....._-..--
FROM December 1, 2007 THROUGH December 31, 20077
February 19, 2008
PAGE: 1
'JENDOR VENDOR CHECK ACCTG CHECK M _ INVOICE INVOICE CUMULATIVE
NUMBER NAME DATE DATE NUMBER S NUMBER AMOUNT TOTAL
3 PROGRAMMED MANAGEMENT CORP 12-OS-2007 DEC2007 2836 S 7031'066 47.92
TOTAL PAID 47,92 47.92
6 WESTPORT PROPERTIES INC 12-19-.2007 DEC2007 2848 S 8/9/10 RC 95.02
6 WESTPORT PROPERTIES INC 12-03-2007 NOV2007 2826 S 11/07 mgmt fee 850.00
6 WESTPORT PROPERTIES INC 12-31-2007 DEC2007 2850 S 12/07 mgmt fee 850.00
TOTAL PAID 1795.02 1842.94
7 WESTPORT PROPERTIES PAYROLL 12-21-2007 DEC2007 2849 S 12/31 payroll 1913.09
7 WESTPORT PROPERTIES PAYROLL 12-10-2007 DEC2007 2841 S 12/15/07 payroll 1939.61
TOTAL PAID 3652.70 5695.69
----------------------------------------------------------------------------------------------------------------------------------
20 XCEL ENERGY 12-OS-2007 DEC2007 2839 S 122007 1442.37
TOTAL PAID 1442,37 7138.01
39 HOME DEPOT CREDIT SERV-MOUND 12-05-2007 DEC2007 2832 S 121507 288.86
TOTAL PAID 288.86 7426.87
36 STS FLOORING INC 12-19-2007 DEC2007 2847 S 53133 1018.36
TOTAL PAID 1018.36 8445.23
40 HOME DEPOT SUPPLY 12-OS-2007 DEC2007 2833 S 40927673 182.31
TOTAL PAID 182.31 8627.54
54 RENTAL RESEARCH SERVICES, INC.12-OS-2007 DEC2007 2837 6 113007 49.00
TOTAL PAID 49.00 8676.54
56 CenterPoint Energy 12-05-2007 DEC2007 2831 S 121807 598.00
56 CenterPoint Energy 12-05-2007 DEC2007 2831 S 121607-2 1805.00
TOTAL PAID 2403.00 11079.54
99 MINNESOTA ELEVATOR INC 12-19-2007 DEC2007 2846 S 129391 209.01
TOTAL PAID 209.81 11289.35
_10_
1
INDIAN KNOLL MANOR PAID INVOICES SORTED BY VENDOR
2020 COMMERCE BLVD FROM December 1, 2007 THROUGH December 31, 2007
MOUND, MN 55369 February 19, 2008
/"'~ PAGE : 2
VENDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE
NUMBER NAME DATE DATE NUMBER S' NUMBER AMOUNT TOTAL
101 C NABER and ASSOCIATES 12-OS-2007 DEC2007 2829 S 41037 103.00
101 C NABER and ASSOCIATES 12-19-2007 DEC2007 2843 S 41247 300.00
TOTAL PAID 403.00 11692.35
102 MOUND TRUE VALUE HARDWARE 12-OS-2007 DEC2007 2835 S 113007 56.47
TOTAL PAID 56.47 11748.82
103 ADAMS PEST CONTROL INC 12-OS-2007 DEC2007 2827 S 419472 59.77
TOTAL PAID 59,77 11808.59
104 CITY OF MOUND 12-OS-2007 DEC2007 2830 S 121007 1342.75
TOTAL PAID 1342.75 13151.34
125 IKON FINANCIAL SERVICE - LEASEI2-19-2007 DEC2007 2545 S 74945540 138.65
-------- ------- ------TOTAL PAID 138.65 13289.99
~ Hoeft Appliance Center 12-19-2007 DEC2007 2844 S C96427 438.34
202 Hoeft Appliance Center 12-19-2007 DEC2007 2844 S C96483 388.21
TOTAL PAID 826.55 14116.54
90010 WASTE TECHNOLOGY INC 12-OS-2007 DEC2007 2838 S 114894 275.87
TOTAL PAID 275.87 14392.41
90015 JESSICA SHEPHERD 12-05-2007 DEC2007 2834 S petty cash 44.25
TOTAL PAID 44.25 14436.66
90052 Bruce Nelson Plumbing 12-OS-2007 DEC2007 2828 S 53185 715.20
90052 Bruce Nelson Plumping 12-19-2007 DEC2007 2842 S 53278 1756.00
TOTAL PAID 2471.20 16907.86
•-------------------------------------------------------'------------------'------------------'--------" -------------------------
90055 Jaime Borgerding Construction 12-10-2007 DEC2007 2840 S 100 2935.00
TOTAL PAID 2935,00 19642.86
,F^
_11_
INDIAN KNOLL MANOR
2020 COMMERCE BLVD
MOUND, MN 55364
PAID INVOICES SORTED HY VENDOR
~~~ FAOM January 1, 2008 THROUGH January 31, 2008
~ February 19, 2008
PAGE: 1
VENDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE
NUMBER NAME DATE DATE NUMBER S NUMBER AMOUNT TOTAL
3 PROGRAMMED MANAGEMENT CORP 01-09-2008 JAN2008 2852 S 7031148 47,92
TOTAL PAID 47.92 47.92
--------
6 ----------------------
WESTPORT PROPERTIES ---------
INC ------------
01-24-2008 ------------
JAN2008 -----------
2875 -------
S ----------------------
5413 ------------
60.23 ---------------
6 WESTPORT PROPERTIES INC 01-22-2008 JAN2008 2870 S dec rc 34.05
6 WESTPORT PROPERTIES INC 01-22-2008 JAN2008 2870 S jan rc 36.21
6 WESTPORT PROPERTIES INC 01-22-2008 JAN2008 2670 S nov rc 36.78
6 WESTPORT PROPERTIES INC 01-24-2008 JAN2008 2675 S jan phone 60.23
6 WESTPORT PROPERTIES INC 01-02-2008 DEC2007 2651 S AUG07 MGMT FEE 850.00
TOTAL PAID 1077.50 1125.42
7 WESTPORT PROPERTIES PAYROLL 01-11-2008 JAN2008 2861 S 1/15 payroll 2314.64
7 WESTPORT PROPERTIES PAYROLL 01-24-2008 JAN2008 2876 S payroll 1/31 2297.11
TOTAL PAID 4611.75 5737,17
20 XCEL ENERGY ~ _ 01-07-2008 JAN2008 2860 S 012308 1743.67
---
---
-
-
- TOTAL PAID 1743.67 7480.84
-----
34 ----
---
-
-
----------------
HOME DEPOT CREDIT SERV-MOUND ------------
01-07-2008 ------------
JAN2008 -----------
2857 -------
S ----------------------
011408 ------------
367.33 ---------------
TOTAL PAID 367.33 7846.17
40 HOME DEPOT SUPPLY 01-07-2008 JAN2008 2858 S 4129686b 47.94
40 HOME DEPOT SUPPLY 01-24-2008 JAN2008 2873 S 41750782 57.53
40 HOME DEPOT SUPPLY 01-07-2008 JAN2008 2858 S 41296860a 21.31
40 HOME DEPOT SUPPLY 01-07-2008 JAN2008 2858 S 41304134a 24.00
40 HOME DEPOT SUPPLY 01-07-2008 JAN2008 2858 S 41304134b 59.32
TOTAL PAID 210.10 6058.27
--------
54 -------------------------------
RENTAL RESEARCH SERVICES, INC ------------
.O1-22-2008 ------------
JAN2008 -----------
2868 -------
S ----------------------
011508 ------------
34.50 ---------------
TOTAL PAID 34.50 8092.77
56 CenterPoint Energy 01-07-2008 JAN2008 2855 S 011908 1805.00
56 CenterPoint Energy 01-07-2008 JAN2008 2855 S 011908-2 598.00
TOTAL PAID 2403.00 10495.77
92 CULLIGAN 01-22-2008 JAN2008 2864 S 101X19076309 221.57
--------
----------------------
---------
------------
------------
-----------
------- TOTAL PAID
---------------------- 221.57
------------ 10717.34
---------------
-~2-
1
NDIAN KNOLL MANOR PAID INVOICES SORTED BY VENDOR
020 COMMERCE BLVD FROM January 1, 2008 THROUGH January 31, 2008
~Ol1ND, MN 55364 February 19, 2008
~--., PAGE : 2
j
rNDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE
(UMBER NAME DATE DATE NUMBER S NUMBER AMOUNT TOTAL
99 MINNESOTA ELEVATOR INC 01-22-2008 JAN2008 2867 S 131048 209.81
TOTAL PAID 209.81 10927.15
101 C NABER and ASSOCIATES 01-07-2008 JAN2008 2853 S 91322 103.00
101 C NABER and ASSOCIATES 01-22-2008 JAN2008 2863 S 91523 625.00
TOTAL PAID 728.00 11655.15
104 CITY OF MOUND 01-07-2008 JAN2008 2854 S 011508 1305.95
TOTAL PAID 1305.95 12961.10
108 Abdo, Eick, & Meyers LLP 01-24-2008 JAN2008 2871 S 236579 5000.00
TOTAL PAID 5000.00 17961.10
------------------------------ - --------------------------------------------------------------------------------------------------
125 IKON FINANCIAL 6ERVICE - LEASE01-22-2008 JAN2008 2866 S 75211874 138.65
TOTAL PAID 138.65 18099.75
-------------------------------------------------------------------
i:v Concept Landscaping 01-07-2006 JAN2008 2856 6 4847 480.00
TOTAL PAID 480.00 16579.75
167 PERSONAL CONCEPTS 01-29-2008 JAN2008 2874 8 2937707 139,90
TOTAL PAID 139.90 18719.65
90010 WASTE TECHNOLOGY INC 01-22-2008 JAN20D8 2869 S 116026 275.87
TOTAL PAID 275.87 18995.52
90012 JRS APPLIANCE DISPOSAL INC 01-07-2008 JAN2008 2859 S 59250 45.00
TOTAL PAID 45.00 19040.52
90021 A LITTLE OFF THE TOP LAWN CARE01-22-2008 JAN2008, 2862 3 nov 07 153.00
TOTAL PAID 153.00 19193.52
90051 Dalco Roofing 01-22-2008 JAN2008 2865 S 031042 439.75
90051 Dalco Roofing 01-24-2008 JAN2008 2872 8 031175 443.68
-13-
INDIAN KNOLL MANOR
2020 COMMERCE BLVD
MOUND, MN 55364
PAID INVOICES SORTED BY VENDOR
FROM January 1, 2008 THROUGH January 31, 2008
February 19, 2008
PAGE: 3
VENDOR VENDOR CHECK ACCTG CHECK M INVOICE INVOICE CUMULATIVE
NUMBER NAME DATE DATE NUMBER S NUMBER AMOUNT TOTAL
TOTAL PAID 663.43 20076.95
-14-
,^. MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION NO. OS- H
RESOLUTION RATIFYING PURCHASE AGREEMENT FOR PROPERTY AT 5555
SHORELINE DRIVE
WHEREAS, the Mound Housing and Redevelopment Authority (HRA), in closed session
on December 11, 2007, authorized a Purchase Agreement for the properly located at
5555 Shoreline Drive which is to be purchased by the Mound HRA.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Mound, Minnesota hereby approves the Purchase Agreement by and
between the Mound Housing and Redevelopment Authority and the owner(s) of the
property located at 5555 Shoreline Drive, and ratifies all actions of the Chair and Executive
Director, and hereby authorizes the Executive Director and her designees to undertake
any and all activities associated necessary to close the transaction.
Adopted by the HRA this 26th day of February 2008.
Chairperson Mark Hanus
Attest: Bonnie Ritter, City Clerk
-15-
MOUND HOUSING AND REDEVELOPMENT AUTHORITY
RESOLUTION N0.08- H
RESOLUTION RATIFYING PURCHASE AGREEMENT FOR PROPERTY AT 5545
SHORELINE DRIVE
WHEREAS, the Mound Housing and Redevelopment Authority (HRA), in closed session
on February 12, 2008, authorized a Purchase Agreement for the property located at 5545
Shoreline Drive which is to be purchased by the Mound HRA.
NOW THEREFORE, BE IT RESOLVED by the Housing and Redevelopment Authority in
and for the City of Mound, Minnesota hereby approves the Purchase Agreement by and
between the Mound Housing and Redevelopment Authority and the owner(s) of the
property located at 5545 Shoreline Drive, and ratifies all actions of the Chair and Executive
Director, and hereby authorizes the Executive Director and her designees to undertake
any and all activities associated necessary to close the transaction.
Adopted by the HRA this 26th day of February 2008.
Chairperson Mark Hanus
Attest: Kandis Hanson, Executive Director
-16-
LEASE
2/21/08
THIS INDENTURE made and entered into as of this day of February, 2008, by and
between the Housing and Redevelopment authority in and for the City of Mound, Minnesota, a
public body corporate and politic under Minnesota law, whose address is 5341 Maywood Road,
Mound, Minnesota 55364 (hereinafter referred to as "LANDLORD") and Fi Min Moy, dba House
of Moy, whose address is 5555 Shoreline Drive, Mound, Minnesota 55364 (hereinafter referred to
as "TENANT").
WITNESSETK
ARTICLE I -GRANT, TERM, AND RENEWALS
1.1 DEMISED PREMISES. In consideration of the rents, covenants and agreements
herein reserved and contained on the part of TENANT to be performed, LANDLORD does hereby
lease to TENANT the real estate located at 5555 Shoreline Drive; Mound, Minnesota 55364
containing approximately square feet of gross building area which is located upon the
land which is legally described as:
~.., Lots 2 and 3, Auditor's Subdivision Number 170, EXCEPT the east 5 feet front
~ and rear of Lot 3.
(hereinafter referred to as the "Demised Premises").
1.2 TERM. The term of this Lease and TENANT'S obligation to pay rent hereunder
shall commence on the date hereof and, unless sooner terminated, the term of this Lease shall expire
on February 28, 2011. Either TENANT or LANDLORD may terminate this Lease at any time upon
120 days' prior written notice to the other party.
ARTICLE II -RENT
2.1 RENT. During the term hereof TENANT agrees to pay to LANDLORD at 5341
Maywood Road, Mound, Minnesota 55364, or at such other place as LANDLORD may from time
to time designate in writing, "monthly rent" for the Demised Premises the amount of $2,500,
payable in advance with the payments for (i) the remainder of February 2008 in the amount of
$86.20 and (ii) March 2008 in the amount of $2,500 both due and payable upon the execution of
this Lease and, thereafter, the amount of $2,500 on the first day of April, 2008, and on the first day
of each month thereafter so long as the TENANT shall occupy the Demised Premises, without
deduction or set-off. For any month during the term of this Lease that the TENANT does not make
the rent payment by the due date, the LANDLORD shall use the escrowed funds as further
described in Section in Article VI to make such payment; and may do so without notice to
TENANT. LANDLORD will, however keep a proper accounting of all such payments made by
application of the escrowed funds.
329335v1 JBD MU195-28
-17-
- 2.2 ADDITIONAL RENT. Any other charges to be paid by TENANT pursuant to the
provisions of any other sections of this Lease shall be designated as "additional rent". Failure of
TENANT to pay "additional rent" _ shall give LANDLORD the right to draw upon the Fund as
described in Article VI to make such payments without notice to TENANT, but subject to the
accounting obligation contained in section 2.1. .
329335v1 JBD MU195-28
-~$-
2.3 [BLANK)
ARTICLE III -TAXES
3.1. TAXES. LANDLORD shall be responsible for the payment of all real estate taxes
and installments of special assessments due and payable during the term of this Lease.
ARTICLE IV -USE OF PREMISES
4.1 TENANTS USE. During the term of this Lease, the Demised Premises shall be
used solely for restaurant purposes and for no other purpose without prior written consent of
LANDLORD. It is specifically acknowledged that if the TENANT wishes to obtain licenses to
permit the sale of alcoholic beverages, it must first seek the consent of LANDLORD; and
LANDLORD may condition such consent by such requirements as, LANDLORD may deem
desirable; in its judgment.
4.2 COMPLIANCE WITH LAWS AND REGULATIONS.
(a) TENANT covenants and agrees that at all times during the term hereof it will
maintain and conduct its business insofar as the same relates to the occupancy of the Demised
Premises in such a manner and under such regulations as to be in strict compliance with any and an
applicable governmental and/or quasi-governmental laws, rules,~egulations and orders, as well as
any and all applicable provisions of insurance underwriters at the Demised Premises, including but
~' not limited to the conditions and requirements of the licenses issued by the City of Mound to
TENANT and the laws and regulations of the State of Minnesota in relation thereto. TENANT
hereby indemnifies and agrees to hold harmless LANDLORD, LANDLORD's insurer, and the
property of LANDLORD against any and all claims or losses or actions or causes of action resulting
from TENANT's failure to comply with said laws, rules, regulations and orders and underwriting
provisions.
(b) TENANT hereby agrees to maintain the Demised Premises and operate its business
in accordance with the Americans With Disabilities Act (ADA), codified at 42 U.S. §§ 12101 et
se .) Failure to do so shall operate as an event of default and a breach of the Lease. Among other
requirements that may apply to the Demised Premises, Title III of the ADA requires owners and
tenants of "public accommodations" to remove barriers in order to allow access by disabled persons
and to provide auxiliary aids and services for hearing, vision or speech impaired persons. Detailed
regulations can be found at 28 D.R.F. Part 36
4.3 AFFIRMATIVE COVENANTS OF TENANT. Without in any way limiting or
restricting other covenants of TENANT elsewhere in this Lease contained, TENANT affirmatively
covenants and agrees as follows:
(a) TENANT shall neither permit, suffer or conduct noise, odor or other nuisances in,
on or about said Demised Premises which may annoy or disturb any persons occupying adjacent
premises or common areas;
329335v1 JBD MU195-28
-19-
(b) TENANT shall keep the Demised Premises, including all service and/or loading
areas for the Demised Premises, free from all litter, dirt and obstructions;
(c) TENANT shall arrange for and- accept deliveries only at such times, in the areas, and
through the entrances designated for such purpose by LANDLORD;
(d) TENANT shall keep .said Demised Premises clean and in the sanitary condition
required by ordinance and regulations of any governmental or quasi-governmental unit having
jurisdiction;
(e) TENANT shall neither permit nor suffer the Demised Premises, or the walls,
ceilings or floors thereof to be endangered by overloading;
(f) TENANT shall properly maintain the heating, ventilation and air conditioning
(HVAC) system in the Demised Premises;
(g) TENANT shall not use or permit the Demised Premises to be used for any purpose
or purposes other than that set forth in Section 4.1 hereof;
(h) TENANT will control its patrons to prevent unruly or obnoxious behavior.
ARTICLE V - MAINTENANCE AND REPAIRS
5.1 TENANT'S MAINTENANCE AND REPAIRS. TENANT agrees that, from and
after the date that possession of the Demised Premises is delivered to TENANT, and until the end of
the term hereof it will be responsible for all repairs, maintenance and replacements to the Demised
Premises including, but not limited to: the roof, the interior and exterior portions of all doors,
windows, plate glass, locks, frames, hardware, bars, fixtures and showcases surrounding and
incorporated into the Demised Premises; the mechanical plumbing, heating, air conditioning and/or
cooling, all building foundations and exterior walls, ventilating and electrical equipment and
systems; partitions, and all other fixtures, appliances and facilities furnished by LANDLORD or
TENANT. TENANT shall be required to pay for any structural repairs or alterations which may be
required by governmental rules, orders or regulations as a result of TENANT'S use and or
occupancy of the Demised Premises. During reasonable business hours, LANDLORD may inspect
the Demised Premises to insure TENANT's compliance with the above and foregoing requirements.
TENANT accepts the Demised Premises "as-is" "where-is" and in their current order, condition and
repair, and subject to any defects and flaws whether known or unknown.
5.2 SURRENDER OF PREMISES. At the expiration or termination of this Lease,
TENANT shall surrender the Demised Premises. Except as provided in Section 5.3,
the Demised Premises shall be surrendered in the same condition as existed on the
commencement date of this Lease, ordinary wear and tear excepted. Further, within
ninety (90) days prior to the expiration of the term, LANDLORD shall during
reasonable business hours, have the right to show the Demised Premises to third
parties for the purposes of preparing bids for demolition of the Demised Premises.
329335v1 JBD MU195-28
_20_
,,--. 5.3 RIGIgT OF REMOVAL. Prior to tie expiration or termination of this Lease, but
upon: not less than 15-days advance written notice to LANDLORD, the TENANT
may remove from the Demised Premises, at its sole cost and expense: (i) any or all
of the items contained in the attached. Exhibit A; .and (ii) any other equipment, or
materials located on the Demised Premises and not owned by or subject to liens in
favor of third parties. All such removals must be made in compliance with all
applicable local regulations and license and permitting requirements. No removal
may be done if such removal would, in LANDLORD'S sole judgment, render the
Demised Premises unsafe or open to trespass or damage.
ARTICLE VI -Escrowed and Deferred Funds.
6.1 FUND CREATED. Pursuant to that separate agreement between the parties entitled
Purchase Agreement and dated December 21, 2007 (the "Purchase Agreement") the
TENANT has deposited into escrow at Closing the amount of $90,000, and has
further agreed to defer the payment to it TENANT of an additional amount of
$50,000 while TENANT remains in possession of the Demised Premises. The
escrowed funds and the deferred. funds are collectively referred to as the "Fund".
6.2 KEEPING AND USE. The escrowed fund will be held by the Finance Director and
deposited in interest-bearing account or accounts. The escrow funds will be
available for uses as described in Section 19 of the Purchase Agreement. The
deferred funds will be available for uses as described in Section 18 of the Purchase
,,._, Agreement; and will also first be available for uses as described in Section 6.3 of
~ this Lease.
6.3 FIRST USE OF DEFERED FUNDS. Pursuant to the Purchase Agreement, the
TENANT is responsible for reimbursement to the LANDLORD for certain
estimated costs and expenditures related to the presence of contamination that is
known or suspected. to be present on the Demised Premises. Based on site
investigations conducted by environmental consultants retained by LANDLORD,
the parties have concluded that the probable estimated costs for such work is up to
$25,000 for the abatement of asbestos and regulated waste (the "Abatement Work").
Prior to making any payment of the deferred funds to the TENANT, the
LANDLORD will be entitled to use such funds to reimburse it for the Abatement
Work.
6.4 THE ABATEMENT WORK. Not later than 60 days prior to the expiration of this
Lease, the LANDLORD will commence the process to enter into contracts with
qualified contractors for the Abatement Work, which may or may not include the
demolition of the Demised Premises. Upon receipt of the bids, and before a contract
is awarded for the work, the TENANT shall be given an opportunity to review the
bids to determine if it will elect to do the Abatement Work before the expiration of
the Lease. If it elects to do so, the LANDLORD will extend the Lease term by not
-more than 60 additional days to allow for the TENANT to .undertake and complete
such work. Abatement Work activities undertaken by the TENANT must meet all
of the requirements imposed on the doing of such work by law. Upon the
completion and acceptance of the Abatement Work by TENANT, the deferred funds
~-,. will be released to TENANT.
329335v1 JBD MU195-28
-21-
If the Abatement Work is done by a contractor retained by the LANDLORD through
the bidding/quote process, the deferred funds will first be applied to payment forthat
work and any unexpended balance along with any accrued interest will be paid to
TENANT.
ARTICLE VII - [Blank)
ARTICLE VIII -UTILITIES
8.1 CHARGES. TENANT shall pay for all utility services including gas, electricity,
domestic water, sewer, hot water for heating and ventilating, chilled water for cooling and
ventilating the Demised Premises and all other utility services furnished TENANT for use in the
Demised Premises or to operate any of TENANT's signs. TENANT shall pay for all telephone and
janitorial services and snow removal services to and for the Demised Premises.
8.2 SUPPLY OF UTILITY SERVICES. LANDLORD shall not be liable in any way to
TENANT for any failure or defect in the supply or character of electricity, water, sewer, or gas
furnished by reason of any change, requirement, act, neglect or omission of the public utility serving
the Demised Premises or for any reason not attributed ta-bANBLORD.
8.3 INTERRUPTION OR DISCONTINUANCE OF LANDLORD'S SERVICE.
TENANT agrees that , to the extent LANDLORD is responsible for supplying any service to
TENANT, LANDLORD shall not be liable for failure to supply any service when LANDLORD
uses reasonable diligence to supply the same, it being understood that LANDLORD reserves the
right to temporarily discontinue such services, or any of them, at such times as may be necessary by
reason of accident, unavailability of employees, failure of supply, repairs, alterations or
improvements, or by reason of fire, strikes, flood, lockouts, riots, acts of God or any other
happening beyond the reasonable control of LANDLORD. When LANDLORD causes services to
be rendered by independent third parties, LANDLORD shall have no liability for the performance
thereof or liability therefor.
8.4 GARBAGE AND REFUSE COLLECTION. All garbage and refuse shall be kept
in containers and shall be placed outside of the Demised Premises prepared for processing and/or
collection in accordance with the requirements of the City of Mound. The TENANT will be
responsible for contracting for such services, and for the full and prompt payment therefore.
329335v 1 JBD MU 195-28
6
-22-
ARTICLE IX -ALTERATIONS
9.1 ALTERATIONS. TENANT may, from time to time during the term, make, at its
own cost and expense, any alterations or changes in the interior or exteriorof the Demised Premises
in good and workmanlike manner in compliance with all applicable requirements of law, provided
TENANT follows the notice procedure and obtains LANDLORD's consent where required, all in
accordance with this Article. LANDLORD agrees to cooperate with TENANT for the purpose of
securing necessary permits for any changes, alterations, or additions permitted under this section
without expense to LANDLORD. Upon completion of such alterations, TENANT shall present to
LANDLORD a copy of the endorsement to TENANT's fire and extended coverage insurance policy
which endorsement shall incorporate said alterations into the policy. All costs of any such work
shall be paid promptly by TENANT so as to prevent the assertion of any liens for labor or materials.
TENANT agrees to advise LANDLORD in writing of the date upon which such alterations will
commence in order to permit LANDLORD to post notice ofnon-responsibility.
9.2 NOTICE TO LANDLORD. Prior to the initiation of any alterations, TENANT shall
give LANDLORD written notice thereof and specify the work to be performed in reasonable detail
and include the names of the contractors and materialmen to be utilized. After receipt of said
notice, LANDLORD shall have a reasonable period of time during which it shall make a
determination, in its sole discretion, as to whether or not the proposed work would create a
structural or design change at the Demised Premises. Upon request, TENANT hall provide
LANDLORD with any further information reasonably necessary for such. determination by
LANDLORD and TENANT shall not commence work or accept materials prior to receiving written
notice of LANDLORD'S determination. If LANDLORD determines that the proposed work would
create a structural or design change, then the same must be approved in writing by LANDLORD
prior to the commencement of any work or the delivery of any materials therefor.
ARTICLE X -INSURANCE
10.1 TENANT'S INSURANCE. TENANT shall during the entire term hereof keep in
full force and effect a policy or policies of public liability and property damage insurance with
respect to the Demised Premises, and the business operated by TENANT in which the limits of
public liability shall not be less than $1,000,000 per person and $1,000,000 per accident and in
which the property .damage liability shall not be less than $500,000. The policy shall name
LANDLORD as additional insured and shall contain clauses that losses shall be payable
notwithstanding any act or negligence of the insured which might otherwise result in forfeiture of
said insurance, and that the insurer will not cancel or change the insurance without first giving
LANDLORD thirty (30) days prior written notice. The insurance shall be with an insurance
company approved to do business in Minnesota and reasonably acceptable to LANDLORD.
TENANT shall deliver a copy of the policy or a certificate of insurance to LANDLORD prior to
taking possession of the Demised Premises, and a renewal certificate at least thirty (30) days prior to
the expiration of any policy term.
.10.2 INDEMNIFICATION. Except for claims arising out of the willful or negligent act
of the other party or its representatives, each party shall indemnify and defend the other party
329335v1 JBDMU195-28
-23-
against all claims, expenses and liabilities incurred, including reasonable attorneys' fees, in
conrtecfion with -loss of life, .personal injury, and/or damage to property arising out of any
occurrence- in, upon or at the Demised Premises, or-the occupancy or use thereof by said party, or
occasioned wholly or in part by any actor omission of said party, its agents, employees, contractors,
sublessees, concessionaires or licensees.
ARTICLE XI - DESTRUCTIONAND RESTORATION
11.1 DAMAGE. If the Demised Premises shall be damaged or shall be damaged by
any uninsured .casualty, LANDLORD shall have no obligation to repair or rebuild. TENANT shall
have the option to repair or rebuild. If it so elects, the provisions of Article IX will be applicable. If
the TENANT does not elect to repair or rebuild and the damage has rendered the Demised Premises
unfit for continued use, then either party may terminate this Lease immediately upon the giving of
written notice to the other party.
11.2 TENANT'S INSURANCE COVERAGE. TENANT shall carry insurance against
fire and such other risks as are from time to time included in standard extended coverage insurance
for the full insurable value of the Demised Premises. TENANT shall also carry said insurance for
the full insurable value of TENANT'S merchandise, trade fixtures, furnishings, wall covering,
carpeting, drapes, equipment and all other items of personal property of LANDLORD and
TENANT located on or within the Demised Premises. Any insurance_polic~es required to be carried
pursuant to this paragraph shall name LANDLORD and the City of St. Louis Park as additional
insureds, and TENANT shall furnish LANDLORD evidence of such insurance coverage. Such
insurance policies may not be modified or terminated without thirty (30) days advance notice to
LANDLORD.
11.3 INDEMNIFICATION. Each party hereto ("Releasing Party") hereby releases the
other ("Released Party") from any liability which the Released Party would, but for this paragraph,
have had to the Releasing Party arising out of or in connection with any accident or occurrence or
casualty:
(a) which is or would be covered by a fire and extended coverage policy (with
vandalism and malicious mischief endorsement attached) or by a sprinkler leakage
or water damage policy in the state in which the Demised Premises is located
regardless of whether or not such coverage is being carried by the Releasing Party,
and
(b) to the extent of recovery under any other casualty or property damage
insurance being carried by the Releasing Party at the time of such accident or
occurrence or casualty, which accident or occurrence or casualty may have resulted
in whole or in part from the act or neglect of the Released Party, its officers, agents
or employees, provided, however, the release hereinabove set forth shall become
inoperative and null and void if the Releasing Parry contracts for the insurance
required to be carried under the terms of this Lease with an insurance company
which:
329335v1 JBD MU195-28
8
-24-
(1) Takes the position that the existence of such release vitiates
or would adversely affect any policy so insuring the Releasing Party in a
substantial manner and notice thereof is given to the Released Parry, or
(2) Requires the payment of a higher premium by reason of the
existence of such release, unless in the latter case the Released Party within
ten (10) days after notice thereof from the Releasing Party pays such
increase in premium.
11.4 PROTECTION FROM SUBROGATION. Anything in this Lease to the contrary
notwithstanding, neither LANDLORD nor TENANT shall be liable to the other for any business
interruption or any loss or damage to property or injury to or death of persons occurring on the
Demised Premises or the adjoining properties, sidewalks, streets or alleys, or in any manner
growing out of or connected with TENANT's use and occupation of the Demised Premises, or the
condition thereof or of sidewalks, streets or alleys adjoining, caused by the negligence or other fault
of LANDLORD or TENANT or of their respective agents, employees, licensees or assignees to-the
extent that such business interruption or loss or damage to property or injury to or death of a person
is covered by or indemnified by proceeds received from insurance carried by the other party
(regardless of whether such insurance is payable to or protects LANDLORD or TENANT or both)
or for which such party is otherwise reimbursed; and LANDLORD and TENANT each hereby
respectively waive all rights of recovery against the other, its agents, employees, licensees and
,...., assignees; for any such loss or damage to property or injury to or death of persons to the extent the
same is covered or indemnified by proceeds received from any such insurance, or for which
reimbursement is otherwise received. LANDLORD's and TENANT's respective policies of
insurance shall each contain a waiver of subrogation provision incorporating the above covenant
and providing that the insurance shall not be invalidated by the insured's written waiver prior to a
loss of any or all right of recovery against any party for any insured loss. It is expressly understood
that LANDLORD shall not be liable to TENANT for any damages incurred by the latter as a result
of the above and foregoing events; save and except as to any such damages caused by the willful or
wanton conduct of LANDLORD, its agents or employees, provided such damages are not
recoverable by TENANT pursuant to the insurance policies required to be provided by TENANT
under this Lease or otherwise.
11.5 ADDITIONAL HAZARDS. TENANT covenants and agrees that it will not do or
permit anything to be done in or upon the Demised Premises or bring in anything or keep anything
therein which shall cause the cancellation of TENANT's insurance policies, or increase the rate of
insurance on the Demised Premises, above the standard rate on said premises and buildings.
TENANT further agrees that in the event it shall do anything to so increase the insurance rate,
TENANT shall promptly pay to LANDLORD on demand any such increase resulting therefrom,
which shall be due and payable as "additional rent" hereunder. At TENANT's request,
LANDLORD shall make available for TENANT's inspection during regular business hours, all
documents pertaining to LANDLORD'S calculation of TENANT'S "additional rent" required under
this section. Said "additional rent" shall be due and payable as billed by LANDLORD.
329335v1 JBDMU195-28
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11.6 NOTICE. TENANT shall give immediate written notice to LANDLORD of any
damage -caused to the Demised Premises by fire or other casualty; or of any cancellation or
reduction of TENANT'S insurance coverage required pursuant to this Lease.
ARTICLE XII -EMINENT DOMAIN
12:1 PARTIAL OR TOTAL CONDEMNATION. If the whole or any part of the
Demised Premises or the structure encompassing same shall be taken by any public authority under
the power of eminent domain, TENANT shall have no claim to, nor shall TENANT be entitled to,
any portion of any award, for damages or otherwise. In the event. only a portion of the Demised
Premises are taken, the Lease shall terminate as to the part taken, and the rent and other charges
herein reserved shall be adjusted for the remainder of the Demised Premises so that TENANT shall
be required"to pay for the balance of the term that portion of the rent reserved which the value of the
part of the Demised Premises remaining after condemnation bears to the value of the Demised
Premises immediately prior to the date of condemnation. The rental and other charges shall be
apportioned as aforesaid by agreement between the parties or by arbitration or legal proceedings,
but pending such determination, TENANT shall pay at the time and in the manner .above provided
the rental herein reserved and all other charges herein required to be paid by TENANT, without
deduction, and upon such determination, TENANT shall be entitled to credit for any excess rentals
paid. If, however, by reason of the condemnation, there is not sufficient space left in the Demised
Premises for TENANT to reasonably conduct business; then, in such event, the Lease shall
terminate. Although all damages in the event of condemnation belong to LANDLORD, whether
awarded as compensation for diminution in value of the leasehold or to the fee of the leased
premises, nothing herein shall be construed to prevent TENANT from claiming and recovering
from the condemning authority such compensation as may be separately awarded or recoverable by
TENANT in TENANT's own right for its leasehold interest.
ARTICLE XIII -ASSIGNMENT AND SUBLETTING
13.1 CONSENT REQUIRED. TENANT may not assign this Lease and/or sublet the
Demised Premises, or any part thereof without in each instance obtaining the prior written consent
of LANDLORD. The consent by LANDLORD to any assignment or subletting shall not constitute
a waiver of the necessity for such consent to any subsequent assignment or subletting. This
prohibition against assigning or subletting shall be construed to include a prohibition against any
assignment or subletting by operation of law. If this Lease be assigned, or if the Demised Premises
or any part thereof be underlet or occupied by anybody other than TENANT, LANDLORD may
collect rent from the assignee, under-TENANT or occupant, and apply the net amount collected to
the rent herein reserved, but no such assignment, under-letting, occupancy or collection shall be
deemed a waiver of this covenant, or the acceptance of the assignee, under-TENANT or occupancy
as TENANT, or a release of TENANT from the further performance by TENANT of covenants on
the part of TENANT herein contained. Notwithstanding any assignment or sublease, TENANT
shall remain fully liable on this Lease and shall not be released from performing any of the terms,
covenants, and conditions of this Lease. TENANT shall pay to LANDLORD any reasonable costs
and expenses (including legal fees) incurred -by LANDLORD iri connection with such assignment
or subletting.
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ARTICLE XIV -TENANT'S DEFAULT
14.1 EVENTS OF DEFAULT. The following events shall be deemed to be events of
default by TENANT under this Lease:
(a) If TENANT shall fail to pay when due any installment of rent, or other
charges provided herein, or any portion thereof (unless the LANDLORD has
deducted such amount from the Escrow Fund) and the same shall remain unpaid for
a period often (10) days after the same has become due; or
(b) If TENANT shall for reasons other than those specifically permitted in this
Lease, cease to conduct its normal business operations in the Demised Premises or
shall vacate or abandon the Demised Premises. TENANT will be deemed to have
vacated, closed or abandoned the Demised Premises if it fails to conduct its business
on the Demised Premises during regular working hours for a period or more than ten
(10) consecutive business days; or
(c) If TENANT shall do or permit to be done anything which creates a lien upon
the Demised Premises; and does not cause said. lien as to LANDLORD'S interest in
the property to be released within ten (l0) days after written notice from
LANDLORD; or
.---, (d) If any representation or warranty made in writing to LANDLORD in this
Lease or in connection with the making of this Lease, by TENANT or any
guarantor, shall prove at any time to have been incorrect in any material respect
when made or becomes incorrect; or
(e) If TENANT or any guarantor shall make an assignment for the benefit of
creditors, file a petition in bankruptcy, be adjudicated insolvent or bankrupt or admit
in writing the inability to pay debts as they mature, petition or apply to any tribunal
for the appointment of a receiver, trustee or similar officer for TENANT or any
guarantor or a substantial part of the assets of TENANT or any guarantor, or shall
commence any proceeding under any bankruptcy, reorganization, arrangement,
readjustment of debt, dissolution or liquidation law or statute of any jurisdiction,
whether now or hereafter in effect; or if there shall have been filed any such petition
or application, or any such proceeding shall have been commenced against
TENANT or any guarantor, which remains undismissed for a period of thirty (30)
days or more; or TENANT or any guarantor by any act or omission shall indicate
their consent to, approval of or acquiescence in any such petition, application or
proceeding; or the appointment of a receiver of or any trustee or similar officer for
TENANT or any guarantor or any substantial part of any of the properties of
TENANT or any guarantor, or shall suffer any such receivership or trusteeship to
continue undischarged for a period of thirty (30) days or more; or any judgment,
writ, lien, warrant, attachment or execution or similar process shall be issued or
levied against a substantial part of the property of TENANT or any guarantor and
329335v1 JBD MU195-28
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such judgment, writ, lien, or similar process shall not be released, vacated or fully
bonded within thirty. (30) days after-its issue or levy; or
(f) If TENANT shall have failed to comply with any other provisions of this
Lease and shall not cure any failure within thirty (30) days, or such longer period of
time as may be reasonably required to cure such default, after LANDLORD, by
written notice, has informed TENANT of such noncompliance.
14.2 LANDLORD'S REMEDIES. Upon the occurrence of any of the above-lettered
events of default, LANDLORD may .elect to either (1) terminate this Lease; or (2) terminate
TENANT's right to possession only without terminating this Lease, hereinafter referred to as re-
entry; or (3) pursue any other remedy available at law or in equity. LANDLORD shall have all
remedies provided in the Lease and under governing law. All of the remedies given to
LANDLORD in this Lease or by law shall be cumulative, and the exercise of one right or remedy
by LANDLORD shall not impair its right to exercise any other right or remedy.
In the event of election under (2) above to terminate TENANT's right to possession only,
LANDLORD may, at LANDLORD'S option, proceed to demand possession by notice and
proceeding under the Unlawful Detainer Law of Minnesota and take and hold possession thereof
without such proceeding or entry into .possession terminating this Lease or releasing TENANT in
whole or in part from TENANT's obligation to pay the rent hereunder for the full term. Upon
re-entry LANDLORD may remove all personal property from the Demised Premises anti such
property may be removed and stored in a public warehouse or elsewhere at the cost of and for the
account of TENANT, all without service of notice or resort to legal process and without being
deemed guilty of trespass, or becoming liable for any loss or damage which may be occasioned
thereby: Upon and after entry into possession without termination of the Lease, LANDLORD shall
use reasonable efforts to relet the Demised Premises, or any part thereof for the account of
TENANT, to any other person, firm or corporation, for such rent and other charges for such time
and upon such terms as LANDLORD, in LANDLORD'S sole subjective discretion shall determine,
but LANDLORD shall not be required to accept any potential TENANT offered by TENANT or to
observe any instruction given by TENANT about such releaing. LANDLORD may make repairs or
redecorate the Demised Premises to the extent deemed by LANDLORD necessary or commercially
reasonable. Notwithstanding any action of possession or re-entry into the Demised Premises by
LANDLORD as permitted in this Article, or termination of this Lease as permitted under Article
XIV, it is stipulated and agreed that TENANT shall remain liable to LANDLORD for damages for
breach of this Lease and of TENANT'S covenants hereunder in an amount equal to the total of the
following: _
(a) All fixed minimum rent, additional rent, late charges, additional rent payable
for taxes and otherwise, and any and all other charges payable by TENANT
hereunder or under other agreements with LANDLORD due for the period prior to
the date of termination of this Lease or re-entry but unpaid, together with additional
late charges from due date until paid; PLUS
(b) All costs and expenses incurred by LANDLORD in connection with re-entry
and repossession of the Demised Premises, the repair, renovation, remodeling, or
329335v1 JBD MU195-28
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.-~ redecoration- thereof to the state required by this Lease upon termination or as may
be necessary for reletting, and any broker's commissions, attorneys' fees, and other
charges incurred in connection therewith or in connection with reletting the Demised
Premises, including attorneys' fees, expended in the collection of an Rents; PLUS
,^.
(c) A sum equal to the present value of all Rents which would have been
payable hereunder after the date of termination or re-entry for the balance of the
term of the Lease had the Lease- not been terminated or re-entry made, together with
interest thereon at the highest rate permitted by law from due date until paid,
PROVIDED THAT, in the event the Demised Premises are relet (which reletting
shall in no event relieve or release TENANT of or from liability for damages
hereunder) for all or any part of the balance of the original term hereof then, for each
month during such reletting for which LANDLORD receives net avails of such
reletting, TENANT shall be entitled to a credit against its liability to LANDLORD
for such month in an amount equal to such net avails, and PROVIDED FURTHER
that, in lieu of damages as set forth in the foregoing provisions of this Section,
LANDLORD may waive such foregoing provisions and elect, by written notice to
TENANT within ninety (90) days after termination or re-entry, to receive forthwith
as liquidated damages for such breach, in addition to the amounts specified above, a
sum equal to fifteen percent (15%) of the Rents which would have been due and
payable for the portion of the balance of the term of the Lease from the date of early
termination or re-entry through the final lease year.
14.3 COSTS, EXPENSES AND ATTORNEYS FEES. If one party is required to seek
legal counsel for collection or to commence litigation or arbitration in order to enforce the
covenants and agreements in this Lease, the party prevailing in such collection, litigation or
arbitration shall have the right to reimbursement from the other party of all reasonable costs,
expenses and attorney's fees.
ARTICLE XV-RECORDATION
15.1 RECORDATION. This Lease shall not be recorded without the prior consent of
LANDLORD. Upon the request of LANDLORD, TENANT shall execute a short form of this
Lease which maybe recorded in LANDLORD'S sole discretion.
ARTICLE XVI -LANDLORD DEFAULT
16.1 DEFAULT NOTICE TO LANDLORD. Should LANDLORD default in the
performance of any of the covenants on the part of LANDLORD to be kept or performed and such
default shall continue for thirty (30) days after written notice to LANDLORD from TENANT
:-~ specifying such default, or should any warranty. or representation made by LANDLORD be untrue
and remain untrue after thirty (30) days after written notice from TENANT specifying such untruth,
329335v1 JBD MU195-28
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_29_
then and only in such event, shall termination of this Lease be effected or action taken or remedy
pursued. If the default or untruth is of such character so as to require more than thirty (30) days to
remedy, LANDLORD shall have a reasonable period in which to remedy the same, provided
LANDLORD is proceeding diligently. TENANT waives its right to make repairs at LANDLORD's
expense. -
ARTICLE XVII -MISCELLANEOUS PROVISIONS
17.1 HOLDING OVER. In the event that TENANT shall continue to occupy the
Demised Premises after the expiration of the term of this Lease or written extension of the term
hereof without entering a new Lease or written extension of the term hereof said tenancy shall be
construed to be a "tenancy from month to month" upon all of the other terms and conditions herein
contained, except where same are not applicable, and except that the rental during such holdover
period shall be the then current "minimum rent" plus fifty percent (50%) thereof and all "additional
rent" shall continue to be paid by TENANT.
17.2 NO PARTNERSHIP. It is expressly understood that LANDLORD and TENANT
are not partners or co-venturers, and that LANDLORD has no right, title or interest in and to the
business of TENANT, and that TENANT has no right to represent or bind LANDLORD in any
respect whatsoever, and that nothing herein contained shall be deemed, held or construed as making
LANDLORD a partner or associate of TENANT, or as rendering LANDLORD liable for any debts,
liabilities or obligations incurred by TENANT; it being expressly understood that the relationship ~ -
between the parties hereto is, and shall at all times remain, that of LANDLORD and TENANT.
17.3 WAIVER. Failure on the part of LANDLORD to complain of any action or nonaction
on the part of TENANT, no matter how long the same may continue, and no matter what other
action or non-action by TENANT that LANDLORD has already complained of shall never be
deemed to be a waiver by LANDLORD of any of its rights hereunder. Further, it is covenanted and
agreed that no waiver at any time of any of the provisions hereof by LANDLORD, shall be
construed as a waiver of any of the other provisions hereof and that a waiver at any time of any of
the provisions hereof shall not be construed as a waiver at any subsequent time of the same
provisions. The consent or approval of LANDLORD to or of any action by TENANT requiring
LANDLORD'S consent or approval shall not be deemed to waive or render unnecessary
LANDLORD's consent or approval to or of any subsequent similar act by TENANT.
No payment by TENANT, or acceptance by LANDLORD, of a lesser amount than shall be
due from TENANT to LANDLORD, even after demand by LANDLORD for rent pursuant to
TENANT'S rent default shall be treated otherwise than a payment on account. The acceptance by
LANDLORD of a check for a lesser amount with an endorsement or statement thereon, or upon any
letter accompanying such check; that said lesser amount is payment in full shall be given no effect,
and LANDLORD may accept such check without prejudice to any further rights or remedies which
LANDLORD may have against TENANT. Further, failure of LANDLORD to bill timely for taxes
or other additional rent as heretofore required shall not be deemed a waiver of TENANT'S liability
to pay same.
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,.~.. 17.4 .COVENANT OF QUIET ENJOYMENT. Subject to the terms and provisions of
this Lease, on .payment of the rent and observing, keeping and performing all of the terms. and
provisions of this Lease on its part- to be observed, kept and performed, TENANT shall lawfully,
peaceably and quietly haue, hold occupy and enjoy the Demised Premises during the term hereof _
without hindrance or objection by any persons lawfully claiming under LANDLORD.
17.5 ENTIRE AGREEMENT. This Lease is executed in identical counterparts, each of
which, when bearing original initials of the parties on each page and at each change in the text
hereof as well as original signatures at the end of each document, shall constitute an original for all
purposes. All previous agreements, whether oral or written, are superseded by and merged with this
Lease. Subsequent change shall not be binding unless reduced to writing and signed by the parties
hereto
17.6 INVALIDATION OF PARTICULAR PROVISIONS. If any clause, term or
provision of this Lease, or the application thereof to any person or circumstance shall to any extent,
be invalid or unenforceable, the remainder of this Lease, or the application of such term or provision
to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not
be affected thereby, and each term and provision of this Lease shall be valid and be enforced to the
fullest extent permitted by law. It is the intention of the parties hereto that in lieu of each clause,
term or provision of this Lease that is illegal, invalid or unenforceable, there be added as part of this
Lease a clause, term or provision similar to such illegal invalid or unenforceable clause, term or
provision as may be possible and which would be legally valid and enforceable. --
,,..~..
17.7 PROVISIONS BINDING, ETC. Except as herein otherwise expressly provided, the
terms hereof shall be binding upon and shall inure to the benefit of the heirs, successors, assigns and
legally appointed representatives, respectively, of LANDLORD and TENANT. Each term and each
provision of this Lease to be performed by TENANT shall be construed to be both a covenant and a
condition. -
17.8 GOVERNING LAW. The laws of the State of Minnesota shall govern the
interpretation, validity, performance and enforcement of this Lease.
17.9 NOTICES. Any notice which is required under this Lease shall be deemed "given"
upon hand delivery or three (3) days after prepaid posting in the U. S. Mail whichever shall first
occur. Notice shall be addressed to the addresses listed at the beginning of this Lease or to any other
address as shall be designated by written notice.
Where in this Lease a certain number of days from date of notice to a given action is
specified, unless the specific provision otherwise states, the days shall be counted as follows: The
first calendar day shall be excluded and the last day shall be included, unless the last day is a
Saturday, Sunday, or legal holiday, in which event the period shall be extended to include the next
day which is not a Saturday, Sunday or legal holiday.
17.10 HEADINGS. The heading, section numbers and article numbers appearing in this
Lease are not intended in any manner to define, limit or describe the scope of any such section or
'~ article and are solely inserted for ready reference purposes.
329335v1 JBD MU195-28
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17.11 PRONOUNS. As utilized in this Lease, the "singular" pronouns shall include the
plural", and the "masculine" shall include the "feminine" and the "neuter", and vice versa, unless a
contrary intent specificallyappears.
17.12 AS IS. TENANT accepts the Demised Premises in an "as is" condition and
LANDLORD shall have no obligation to construct any improvements or alterations to the condition
of the Premises.
IN WITNESS WHEREOF, the parties hereto have affixed their signatures the day and year
first above written.
329335v1 JBD MU195-28
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1
.--
LANDLORD: Housing and Redevelopment Authority in and for the City of
Mound, Minnesota
BY:
Kandis M. Hanson
ITS: Executive Director
TENANT: Fi Yin Moy, dba House of Moy
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