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HomeMy WebLinkAboutGradle II/FIRE/15600/storage unitLEASE AGREEMENT THIS LEASE dated this 1S1 day of July, 2015, by and between The Grad/es II, 211 E. Palm Drive, Syracuse, Indiana 46567, jointly as "Lessor", and City of Carmel Fire Department, the "Lessee", WITNESSETH: ARTICLE I Description Of Premises Lessor does hereby lease and demise to the Lessee the following: Premises known as and located at 248 Gradle Drive, Carmel, Hamilton County, Indiana 46032, and described as follows: Containing approximately One Thousand Nine Hundred Twenty Five (1,925) Square Feet in Building No. 2 of Lessor's warehouse development. Lessee shall have the right to use, in common with others, the driveway areas serving said Cradle Warehouse Tract located in Building No. 1, the building at 904-998 Third Avenue, S.W.. Lessee shall have the right to use, in common with others, the parking area existing on the west side of Building No. 1; if the Leased Premises are located in Building No. 2, the building at 202-296 Gradle Drive, Lessee shall have the right to use, in common with others, the parking area existing on the east side of Building No. 2. Notwithstanding any of the foregoing which might be construed to the contrary, the paved area between Building No. 1 and Building No. 2 shall not be used for parking and/or storage purposes, but shall be used only for vehicular delivery and pick-up activities of Lessee. ARTICLE II Use Of Premises Lessee shall use the Leased Premises for general office warehouse and no other use. ARTICLE III Term The term for which the Leased Premises shall be leased is one (1) year, beginning August 1, 2015 and expiring July 31, 2016. ARTICLE IV Rent 1. Base Rental Rate. Rental of Fifteen Thousand Six Hundred and 00/100 Dollars ($15,600.00) per year. which shall be paid as follows: One Thousand Three Hundred and 00/100 Dollars ($1,300.00) per month in advance on the first (1st) day of each and every month during the term of this Lease. If either Lessor or Lessee desires to terminate said occupancy at the end of any month after the end of the term of this Lease, the party so desiring to terminate shall give the other party at least thirty (30) days written notice to that effect. However, the Lessor shall not be required to give any such notice if Lessee has failed to pay the rent in advance when due. Failure to give 3 such notice on the part of Lessee shall obligate it to pay rent for an additional calendar month following the month in which the Lessee vacates the premises. 2. Additional Rent. As additional rent and provided that the term of this Lease, together with any extensions or renewals exceeds one year, then effective at the beginning of the thirteenth (13th) month of the Lease term and annually thereafter, the monthly rent shall be increased over the Base Rent set forth above by the percentage increase in the Consumer Price Index, as published by the Bureau of Labor Statistics of the U.S. Department of Labor, national, all items, ("Index") from the level of the Index published in the calendar month in which the term of this Lease commences to the level of the Index published in the month immediately preceding said thirteenth (13th) month and the month(s) immediately preceding the subsequent annual periods. Lessee agrees to pay as additional rent its proportionate share of the amount by which the real estate taxes and insurance premiums with respect to the Leased Premises are increased for any reason whatsoever during the term of this Lease, or any extension thereof, over those real estate taxes and insurance premiums with respect to the Leased Premises which are payable in the year of execution of this Lease ("Additional Rent"). This proportionate share shall be a percentage based upon the proportion that the square footage of the Leased Premises bears to the total square footage of the Building area of which the Leased Premises are a part. Lessor shall submit to Lessee, within a reasonable time after payment of the real estate taxes and insurance premiums, a statement of the amount owed by Lessee pursuant to the terms of this section, and Lessee shall thereafter pay such amounts to Lessor. It is not intended, however, that Lessee be required to pay its share of any increased tax assessments resulting from additional improvements constructed on the real estate after the build ng on which the Leased Premises are a part has been fully completed and assessed. Lessee further agrees to pay to Lessor any increase in fire or liability insurance premium payable by Lessor resulting from the business use conducted by Lessee on the Leased Premises. ARTICLE V Covenants, Terms And Conditions The parties hereto further covenant with each other as follows: 1. Vacation of Premises. The Lessee will pay the rent at the times and in the manner aforesaid, and at the expiration of the term will peacefully yield up to the Lessor said Leased Premises in as good order as when delivered to him. damage by fire, casualty, war or insurrection, riot or public disorder, or act upon the part of government authority, ordinary wear and tear, and damage by the elements excepted. Lessee, if it is not in default, may at the expiration of the term hereof; remove all trade fixtures installed by Lessee; provided that Lessee repairs any damage occasioned by such removal. 2. Use and Occupancy. Lessee agrees to accept the Leased Premises in their present "as -is" condition. The Lessee covenants that no waste or damage shall be committed upon or to the Leased Premises; 4 that the Leased Premises shall be used for the purpose hereinabove stated, and shall not be used or permitted to be used for any other purposes; that said Leased Premises shall not be used for any unlawful purpose and violations of law or ordinance shall not be committed thereon; that nothing shall be done or suffered or any substance kept on said Leased Premises which will operate to increase the fire hazard or to cause the insurance rates thereon to be increased; that he will not make or permit any alterations therein or additions thereto or affix or cause to be affixed to any part of the building any sign, advertisement or notice, without the consent of the Lessor first had and obtained; and that any additions or improvements placed upon the Premises by either party during the term, except the unattached and movable property of the Lessee, shall be the sole property of the Lessor. 3. Assignment and Sub -Letting. This Lease shall not be assigned, or the Leased Premises underlet, without the prior written consent of Lessor hereon and endorsed, and such consent having been given, the Lessee shall, nevertheless, remain primarily liable to perform all covenants and conditions hereof and to guarantee such performance by this assignee and subtenant. 4. Abandonment. If Lessee shall abandon or vacate said Premises before the end of the term or any other event shall occur entitling Lessor to take possession thereof, Lessor may take possession, relet same without such action being deemed an acceptance of a surrender of this Lease, or in any way terminating the Lessee's liability hereunder, and Lessee shall remain liable to pay the rent herein reserved, less the net amount realized from such reletting, after deduction of any expenses incident to such repossession and reletting, including attorney's fees and costs of collection. 5. Fire and Unsafe Building Clause. A. If the Leased Premises shall be so damaged by fire or other casualty as to be substantially destroyed, or if any authority having jurisdiction shall order the demolition or removal of any building herein leased, then this Lease shall cease and come to an end and any unearned rent paid in advance by the Lessee shall be refunded to him. B. If the Leased Premises shall be partially destroyed by fire or other casualty or be declared unsafe by any authority having jurisdiction, the rent shall forthwith abate according to the extent to which the Premises have been rendered untenable or declared unsafe, and if they are not restored and put in proper condition for use and occupancy within one hundred twenty (120) days of the event, then the Lessee may cancel this Lease and thereupon any unearned rent paid in advance shall be refunded to him. 6. Transfer by Operation of Law. In the event said Leased Premises or any part thereof come into possession of any receiver, assignee, trustee in bankruptcy, sheriff or other officer, by and through a court process, or by operation of law, Lessor may at his option terminate this Lease at any time thereafter by notice to said Lessee, and may accept rent from such receiver, trustee, assignee or officer, without affecting or impairing his rights to so terminate this Lease at any time thereafter or impairing any other right of Lessor under this Lease. 7. Alterations. No major alterations, changes in, or improvements to the Leased Premises shall be made by the Lessee without the written consent of the Lessor thereto. The Lessor reserves the right, before approving any such changes, additions, or alterations, to require the Lessee to furnish him a good and sufficient bond, conditioned that it will save Lessor harmless from the payment of any claims, either by way of damages or liens. All of such changes, additions, or alterations, shall be made solely at the expense of the Lessee; and the Lessee agrees to protect, indemnify and save harmless the Lessor on account of any injury to third persons or property, by reason of any such changes, additions, or alterations, and to protect, indemnify and save harmless the Lessor from the payment of any claim of any kind or character on account of bills for labor or material in connection therewith. 8. Inspection. The Lessor may, during the term at reasonable times and during usual business hours, enter to view the Leased Premises, and may show the said Leased Premises to others and, except in case of renewal, may at any time within two months next preceding the expiration of the said term affix to any suitable part of said Leased Premises a notice for letting the Premises, and keep the same affixed without hindrance or molestation. Lessor shall have the right from time to time to enter the Leased Premises to examine or make any repairs, alterations or additions which Lessor shall deem necessary for the safety, preservation or improvement of said Leased Premises or said Building; Lessor shall also have the richt to make additional improvements in the building of which the Leased Premises form a part, and Lessor agrees to use reasonable construction methods in making same. Lessee shall not be entitled to maintain any set-off counterclaim, or claim for damages against Lessor by reason of prosecution of any such work by Lessor, the prosecution of such work shall not constitute an eviction of Lessee, constructive or otherwise. 9. Rights on Default. If the Lessee shall neglect or fail to perform or observe any of the covenants contained herein, on his part to be observed and performed, for ten (10) days after notice by the Lessor of such breach, then the Lessor may lawfully enter into and upon the Leased Premises, or any part thereof, in the name of the whole, and repossess the same, and expel the Lessee and those claiming under and through him and remove his effects, without being deemed guilty of any manner of trespass and upon entry of aforesaid, this Lease shall at the option of Lessor terminate and wholly expire, and the Lessee covenants that in case of such entry he will indemnify the Lessor against all loss of rent which the Lessor may incur during the residue of the term above specified. Lessor shall have a lien to secure the payment and performance of all obligations by Lessee to be performed under this Lease, on all personal property, including merchandise, which is or may be placed by Lessee on the Leased Premises. In case of any default by Lessee hereunder, Lessee shall not remove any of said property from the Leased Premises until such default has been fully satisfied, and this lien may be enforced by the taking and sale of said property by Lessor as in the case of sale under a chattel mortgage, or in any other manner selected by Lessor. The proceeds, after the expense of the sale, shall be applied in satisfaction of the obligations so in default. Lessee hereby authorizes Lessor to execute and file on behalf of Lessee a U.C.C. financing statement in the applicable public offices. 10. Holdover. It is agreed that a holding over beyond the expiration of the term herein specified shall operate as an extension of this Lease from month to month only, at a rent equal to double the rent that would otherwise have been in effect. 6 11. Light and Air. It is agreed that this Lease does not grant a continuance of light and air over any property adjoining the Leased Premises. 12. Landlord's Non -Liability and Insurance. Lessor or its agents shall not be liable for any damage or loss to property of Lessee, regardless of the nature of such loss. Lessee shall indemnify and save Lessor and/or its agents and employees harmless from and against any and all liability, damages, expenses, fees, penalties, actions, causes of actions, suits, costs, claims or judgments arising from injury during the Lease Term to persons or property within the Leased Premises, upon the real estate, or within the building, occasioned wholly or in part by any act or acts, omission or omissions, of Lessee, its agents, servants, contractors, employees, visitors or licensees. Lessee shall keep in full force and effect during the Lease Term a policy of public liability and property damage insurance with respect to the Leased Premises and the business operated by Lessee on the Leased Premises, to have limits of not less than $300,000.00 for injury to or death of one person, $500,000.00 for one accident or occurrence, and $50,000.00 for injury to property. The policies shall name Lessor, any person, firms or corporation designated by Lessor, and Lessee as insureds. Lessee shall carry such insurance against loss of its property in the Leased Premises by fire and other hazards including water damage as Lessee deems necessary. Lessor shall not be liable for any damage to Lessee's property in the Leased Premises caused by fire or other insurable hazards including water damage, regardless of the nature or cause of such fire or other casualty, and regardless of whether any negligence of Lessor or Lessor's employees, agents or licensees, or other tenants, contributed thereto, and Lessee expressly releases Lessor of and from all liability for any such damage. Lessee shall not be liable for any damage to the real estate or building caused by fire or other insurable hazards, regardless of the nature or cause of such fire or other casualty, and regardless of whether any negligence of Lessee's employees, agents, licensees, or invitees contributed thereto, and Lessor expressly releases Lessee of and from all liability for any such damage. 13. Waive/ of Subrogation. Lessee and Lessor agree that insurance carried by either of them against the loss or damage by fire or other casualty shall contain a clause whereby the insurer waives its right to subrogation against the other party. Upon request, each party agrees to furnish evidence of such waiver to the other party. 14. Condition and Maintenance. Except as herein contained, no representations have been made as to the condition of the Leased Premises, and it is agreed that the cost of maintenance and repairs shall be borne, respectively, by the Lessor or the Lessee as follows: A. Lessor shall keep the roof, gutters, downspouts, exterior walls, driveways and parking areas in repair at Lessor's cost and expense; provided, however, that if damage (other than by ordinary wear and tear) is caused to any such items by; the acts of the Lessee, its employees, agents, licensees or invitees, such damage shall be repaired and restored by Lessee at Lessee's expense. 7 PROVIDED, FURTHER, that Lessor's obligations to repair do not include the repair of windows and doors. it being understood and agreed that Lessee shall keep the windows and doors in a proper state of repair. B. Lessee shall make all other repairs to the Leased Premises at Lessee's expense. C. Lessee also agrees to keep in repair the air conditioning and heating equipment and appurtenances pertaining to the Leased Premises, and to cause same to be serviced on a regular basis in accordance with good usage practices. In furtherance of the foregoing obligation, Lessee shall employ a professional maintenance company on a regular basis to service said equipment; said company and the contract to be subject to Lessor's approval. If Lessee performs a program of preventative maintenance as described above, Lessor shall be responsible for any major repairs or replacement of the HVAC system unless such major repair or replacement is due to Lessee or Lessee's agent's negligence. Major repairs or replacement shall be defined as repair to or replacement that costs in excess of Five Hundred and 00/100 Dollars ($500.00) per repair or replacement. 15. Service and Utilities. Lessee agrees to pay for all utility services rendered or furnished to the Leased Premises during the term hereof, including, but not limited to; heat, gas, and electric. Lessor agrees to pay water and sewage charges for sanitary and drinking use only. 16. Signs. Lessee may erect signs provided the type and location are approved in writing by Lessor prior to erection, and provided further that Lessee has at his expense obtained necessary approvals of the zoning authorities of Carmel, Indiana. 17. Security Deposit. In lieu of a security deposit, Lessee promises to immediately pay in full for any repairs to the property caused by Lessee and/or Lessee's invitees, aside from normal wear and tear. 18. Notices. All notices to be given hereunder by either party shall be in writing and given by personal delivery to the Lessor or the Lessee, or shall be sent by registered mail addressed to the party intended to be notified at the post office address of such party last known to the party giving such notice, and notice given as aforesaid shall be sufficient service thereof and shall be deemed given as of the date when deposited in any post office, or in any post office box regularly maintained by the Federal Government. If to Lessee: Home Address: Home Phone: Office Address: Office Phone: Fax: City of Carmel Fire Department c/o Bob Vanvoorst n/a n/a 2 Civic Square, Carmel, Indiana 46032 (317) 664-0958 n/a 8 Pager Number: Cellular Number: E -Mail Address: If to Lessor: n/a n/a bvanvoorst@carrnel.in.gov Mr. John O. Gradle 211 E. Palm Drive Syracuse. Indiana 46567 19. Construction. It is understood that the tent Lessor and Lessee, used herein. shall be construed to mean Lessors and Lessees where there is more than one. and the necessary grammatical changes required to make the provisions hereof apply either to corporations or individuals, men or women, shall in all cases he assumed as though fully expressed. 20. Conclusion. The Lessor covenants that the Lessee on paying the rent and performing the covenants aforesaid. shall and may peacefully and quietly have, hold and enjoy the Leased Premises for the term aforesaid. The covenants and agreements contained in the foregoing Lease are binding upon the parties hereto and their respective heirs, executors, administrators, successors, legal representatives and assigns. WITNESS the signatures and seals of the above parties the day and year first written. Approved and Adopted this /-5dav of LESSEE CITY OF CARMEL, INDIANA By and through its Board of Public Works and Safety BY: Date: Brainard, Presiding Officer /S�/) LESSOR The Gradles 11 BY: , ( John to. Gradl 1 Date. \ — t 115 Mary At 3urke, Member �_Jr Date: 9 Lori S. Watsdrt,PGlember _ Date: •7 1 , 5 / 1 S ATTEST: .4_'5 Dila Cordray, 1MCA, Cle Date: -iS-/ 10 GENERAL OFFICE POLICIES OF HOKANSON COMPANIES, INC. REGARDING AGENCY RELATIONSHIPS Pursuant to Indiana Code § 25-34.1-10-13, Hokanson Companies, Inc. ("Hokanson") states its general office policies regarding agency relationships, as follows: GENERAL OFFICE POLICIES Hokanson will represent owners in the sale or lease of their real estate and purchasers/tenants in the purchase or lease of real estate. Hokanson will practice disclosed limited agency in the sale or lease of in-house listings. Hokanson will make full disclosure to and obtain the informed consent of the owner and purchaser/tenant to limited agency at the time of entering into a brokerage relationship. Hokanson will cooperate with all licensees operating as agents or buyers or tenants, and will offer compensation to licensees acting in any of those agency capacities. LIMITED AGENCY AUTHORIZATION If the broker or salesperson employed by the owner or by the purchaser/tenant is also the broker or salesperson employed by the purchaser/tenant or owner, then a limited agency exists with duties to both parties and those duties or interests may be different or even adverse, Indiana Code § 25-34.1-10-12 permits such broker or salesperson to act as a limited agent if he/she obtains the parties' consent and provides the parties the following statements: "A limited agent shall not disclose the following without the informed consent, in writing, of the parties to the real estate transaction: (A) Any material or confidential information, except adverse material facts or risks actually known by the licensee concerning the physical condition of the property and facts required by statute, rule, or regulation to be disclosed and that could not be discovered by a reasonable and timely inspection of the property by the parties. (B) That a buyer or tenant will pay more than the offered purchase price or offered lease rate for the property. (C) That a seller or landlord will accept less than the listed price or lease rate for the property. (D) What motivates a party to buy, sell, or lease the property. (E) Other terms that would create a contractual advantage for one (1) party over another party. There will be no imputation of knowledge or information between any party and the limited agent from other brokers within Hokanson. You do not have to consent to any of the brokers or salespersons of Hokanson acting as a limited agent. You hereby give informed consent to Hokanson and its brokers and salespersons serving as limited agent voluntarily after reading and fully understanding this section of this agreement relating to limited agency, and waive any claim you may have now or in the future against such broker of salesperson for acting as a limited agent. 11 Implementation of Policies To implement the above -stated general office policies, Hokanson will take the following steps 1. When listing real estate, the Hokanson agent will (a) provide the owner with a copy of Hokanson's general office policies regarding agency; (b) describe to the owner the different agency relationships and the duties of each; (c) disclose to the owner the likely potential for limited agency where a broker or salesperson of Hokanson is representing both the purchaser/tenant and the owner of the real estate; and (d) obtain the owner's informed consent to Hokanson's acting as a limited agent in writing containing the elements set forth in Indiana Code § 25-34.1-10-12. 2. When entering into a brokerage relationship with a purchase/tenant, the Hokanson agent will (a) provide the purchase/tenant with a copy of Hokanson's general office policies regarding agency; (b) describe to the purchaser/tenant the duties of Hokanson as a buyer's agent; (c) disclose to the purchaser/tenant the likely potential of limited agency if the purchaser/tenant enters into a brokerage relationship with a broker or salesperson of Hokanson as a buyer's agent and the purchaser/tenant is interested in a property listed by a Hokanson broker or salesperson; and (d) obtain the purchaser's/tenant's informed consent to Hokanson's acting as a limited agent in a writing containing the elements set forth in Indiana Code § 25- 34.1-10-12. 3. At the beginning of the agency relationship and before the disclosure by the potential seller, landlord, buyer, or tenant of any confidential information specific to that potential seller, landlord, buyer, or tenant, Hokanson shall disclose in writing to the potential seller, landlord, buyer, or tenant this written office policy. 4. Hokanson will offer compensation to other principal broker(s) who may represent other parties to the transaction whose interests are different or even adverse. 5. Before the earlier of a showing of non-Hokanson listed property to a purchaser/tenant or a request for proposal on behalf of a purchaser/tenant, Hokanson will give to the owner or owner's agent written notice identifying Hokanson as a buyer's agent. 6. Before the earlier of a showing of Hokanson-listed property to or a request for proposal on behalf of a purchaser/tenant not represented by Hokanson, Hokanson will give such purchaser/tenant written notice identifying Hokanson as the owner's agent. READ AND ACKNOWLEDGED this day of 2015. By: Title: 12 Article TABLE OF CONTENTS Title Page I. DESCRIPTION OF PREMISES IL USE OF PREMISES Ill. TERM IV. RENT 3 3 3 1. BASE. RENTAL RATE. 3 2. ADDITIONAL RENT. 4 V. COVENANTS, TERMS AND CONDITIONS 4 1 . VACATION OF PREMISES. 4 2. USE AND OCCUPANCY. 5 3. ASSIGNMENT AND SUB -LETTING. 5 4. ABANDONMENT. 5 5. FIRE AND UNSAFE BUILDING CLAUSE. 5 6. TRANSFER BY OPERATION OF LAW. 5 7. ALTERATIONS. 6 8. INSPECTION. 6 9. RIGHTS ON DEFAULT. 6 10. HOLDOVER. 7 1 I . ATTORNEYS' EELS AND LATE FEES. 7 12. LIGHT AND AIR. 7 13. LANDLORD'S NON -LIABILITY AND INSURANCE. 7 14. WAIVER OF SUBROGATION. 8 15. CONDITION AND MAINTENANCE. 8 16. SERVICE AND UTILITIES. 8 17. SIGNS. 9 18. SECURITY DEPOSIT. 9 19. NOTICES. 9 20. CONSTRUCTION. 9 21. CONCLUSION. 10