112502 Liquor Comm AgP
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CITY OF SHOREWOOD
5755 COUNTRY CLUB ROAD
LIQUOR COMMITTEE MEETING
MONDAY, NOVEMBER 25, 2002
5:30 P.M.
AGENDA
1. TONKA BAY STORE TRANSITION
2. SHOREWOOD PLAZA LEASE AMENDMENT PROPOSAL
3. OTHER
4. ADJOURN
Amendment #2
To Lease Dated July 17, 1998 By and Between
Shorewood Village Shopping Center, Inc., as Landlord
And City of Shorewood, a Minnesota municipal corporation, as Tenant
THIS AMENDMENT TO LEASE is entered into and made as of this 18th day of November, 2002, by and between
Shorewood Village Shopping Center, Inc., as Landlord and City of Shorewood, a Minnesota municipal corporation, as
Tenant.
WITNESSETH:
WHEREAS, Landlord and Tenant have heretofore entered into a certain lease dated July 17, 1998 (the "Lease"),
containing approximately 3,990 square feet of certain leased premises at Shorewood Village Shopping Center, located at 23730
Highway 7, Shorewood, Minnesota 55331 (the "Premises"), upon terms and conditions described in said Lease; and
WHEREAS, Landlord and Tenant entered into an Amendment #1 dated November 28, 2001, extending Tenant's
Lease for a period of one year, and:
WHEREAS, Landlord and Tenant desire to amend said Lease as described below:
NOW THEREFORE, in consideration of the rents received and of the covenants and agreements herein set forth, it
is agreed that the Lease be hereby amended from and after the date hereof as follows:
Premises
The premises shall be relocated to 23670 Highway 7 (defined herein) situated as set forth on Exhibit A, containing
approximately 4,210 square feet including any alterations, additions or repairs made thereto.
Term
The Term of the Lease is extended for a period of five (5) years commencing January 1, 2003 and terminating
December 31, 2007.
Minimum Rent
Tenant shall pay Landlord on or before the first day of each month, minimum monthly rent base rent according to the following
schedule:
January 1,2003 - December 31, 2003
January 1, 2004 - December 31, 2004
January 1,2005 - December 31, 2005
January 1,2006 - December 31, 2006
January 1,.2007 - December 31, 2007
Rent
p.s.f.
$12.00
$13.00
$14.00
$15.00
$16.00
Monthly
Rent
$4,210.00
$4,560.83
$4,911.67
$5,262.50
$5,613.33
Annual
Rm!
$40,520.00
$54,730.00
$58,940.00
$63,150.00
$67,360.00
Operatin2 Expenses
Effective January 1,2003, Tenant shall pay its new pro rata share of operating expenses (14.75% - Mall and 5.83% - CAM)
Amendment #2 to Lease
City of Shore wood
1
4:2-
Page Two
Landlord's Work
Landlord shall, at Landlord sole cost and expense, demise the premises to a vanilla shell condition to include:
~ Walls taped, sanded and ready for paint
~ Replace ceiling tiles
~ Standard electrical wiring and lighting fixtures
~ HV AC ductwork
~ Modify sprinkler system to meet code
Tenant Improvements
Construction Allowance for Tenant's Work. Provided Tenant is not in default under any of the terms and conditions
contained herein, Landlord shall reimburse Tenant for a portion of the cost of Tenant's Work within the Premises, in the
amount and manner hereinafter provided. The amount of such reimbursement shall hereinafter be referred to as "Tenant's
Allowance". It is understood and agreed that Tenant's Allowance shall bea reimbursement fora portion of the actual costs
incurred by Tenant to complete Tenant's Work within the Premises as detailed in the plans and specifications therefore to be
approved by Landlord. Tenant's Allowance shall be Twenty-One Thousand Fifty and no/l00ths Dollars ($21,050.00)
Landlord shall pay Tenant's Allowance to Tenant when Tenant has opened for business in the Premises, paid the Minimum
Rent and Additional Rent for the first month of the Term of this Lease and furnished to Landlord the following:
)> Copies of paid invoices documenting the actual cost incurred by Tenant to complete Tenant's Work within the
Premises;
)> The affidavit of the general contractor stating that (i) Tenant's Work has been fully completed in accordance with
the plans and specifications approved by Landlord, subject, however, to Landlord's verification thereof and (ii) all
subcontractors, laborers and material supplies have been paid in full;
)> A wavier of lien, with respect to the Premises, executed by every subcontractor, laborer and material supplier
engaged in or supplying labor or materials; and
)> A certificate of use and occupancy for the Premises issued by the appropriate governmental authority.
Notwithstanding anything to the contrary contained herein, Landlord reserves the right to offset against Tenant's Allowance
any delinquent amounts due to Landlord by Tenant accrued hereunder. In the event this Lease shall be terminated for any
reason prior to the natural expiration of the initial Term of the Lease, Tenant shall pay to Landlord the unamortized portion
of Tenant's Allowance, said amortization to be computed using the "straight-line" method of generally accepted accounting
practices.
Tenant agrees that Tenant's Work within the Premises and all other work undertaken by Tenant in the Premises shall be
performed in a first-class and workmanlike manner and all equipment, fixtures and installation shall be new and in usable
condition on the Commencement Date.
Options
Any and all options added to the Lease, Exhibit or Rider to the Lease, either expressed or implied, will be extinguished with
this amendment.
Amendment #2 to Lease
City of Shorewood
Page Three
2
Execution and Delivery Reauired
This document shall have no binding effect on the parties unless executed by the landlord and the tenant and a fully executed
copy is delivered to the tenant.
Except as is hereinabove set forth, all terms, provisions and covenants of the Lease shall remain unchanged and in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment #2 as of the date and year first
above written.
LANDLORD:
TENANT:
Shorewood Village Shopping Center, Inc.
City of Shorewood
By
By
Its
Its
Date
Date
3