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HomeMy WebLinkAboutOrdinances - ORD-11-1560 - 10/03/2011 - PARKING LOT LEASE AGMT NED NEUMANNORDINANCE NO. ORD-11-1560 AN ORDINANCE AUTHORIZING THE EXECUTION OF A PARKING LOT LEASE AND SUBLEASE AGREEMENT BETWEEN THE CITY OF MCRENRY, EDWARD J NEUMANN JIL, AS TRUSTEE, UNDER THE PROVISIONS OF A TRUST AGREEMENT DATED JUNE 15,2007, AND KNOWN AS THE EDWARD J. NEUMANN, JR. TRUST AND 1110 GREEN LLC FOR THE PROPERTY LOCATED AT I Ill N GREEN STREET, IN THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS WHEREAS, the City of McHenry, McHenry County, Illinois, is a home rule municipality as contemplated under Article VII, Section 6, of the Constitution of the State of Illinois, and the passage of this Ordinance constitutes an exercise of the City's home rule powers and functions as granted in the Constitution of the State of Illinois; and WHEREAS, Edward J Neumann Jr. Trustee, record owner ("Lessor") holds title to two parking lots, located on the southerly portion of I I I I N Green Street, McHenry, Illinois; specifically, the lower north lot with access from Green Street and the upper south lot with access from Waukegan Road each respectively identified as Lot I and Lot 2 on the photograph attached hereto as Exhibit A ("Premises"). The Premises lies with PIN 09-26-380-014; and WHEREAS, Lessor desires to lease the Premises to the City of McHenry ("City" or "Lessee") on the one hand, with the fight to manage, operate and maintain a public parking facility thereon and the City desires to sublease part of the Premises as Sublessor ("City" or "Sublessor") to I I 10 Green LLC as Sublessee C'Sublessee") relative to Lot I on the other for use by residents of the Riverplace Luxury Residences, NOW, THEREFORE, BE IT ORDAINED BY THE MAYOR AND CITY COUNCIL OF THE CITY OF MCHENRY, MCHENRY COUNTY, ILLINOIS AS FOLLOWS: SECTION 1: The Parking Lot Lease and Sublease Agreement ("Agreement"), bearing the date of October 3, 2011 between the Lessor and Lessee on the one hand and the City and I I 10 Green LLC as Sublessee relative to Lot I on the other be and the same is hereby approved. A complete and accurate copy of said Agreement is attached to this ordinance and incorporated herein by reference. SECTION 2: The Mayor and City Clerk are hereby authorized to affix their signatures as Mayor and City Clerk to said Agreement for the uses and purposes therein set forth. SECTION 3: All Ordinance or parts thereof in conflict with the terms and provisions hereof are hereby repealed to the extent of such conflict. SECTION 4: This Ordinance shall be published in pamphlet form by and under the authority of the corporate authorities of the City of McHenry, McHenry County, Illinois. SECTION 5: This Ordinance shall be in full force and effect from and after its passage, approval, and publication in pamphlet form as provided by law. PASSED AND APPROVED THIS P DAY OF October, 2011 AYES: SANTI. GLAB, SCHAEFER, WIMMER, PETERSON, CONDON NAYS: NONE ABSTAINED: NONE ABSENT: BLAKE NONE NOT VOTING: MAYOR ATTEST: CITY 7K IAI 17 LEASE and SUBLEASE AGREENMNT Ill I NORTH GREEN STREET, MCHENRY, ILLINOIS This Lease and Sublease Agreement ("Agreement") is entered into as of this P Day of October, 2011, by and between Edward J. Neumann. Jr., as Trustee, under the provisions of a Trust Agreement dated June 15, 2007, and known as the Edward J. Neumann, Jr. Trust, Premises owner ("Lessor") and the City of McHenry, an Illinois municipal corporation ("City" or "Lessee") on the one hand and the City, as Sublessor ("City" or "Sublessor") and I 110 Green LLC, as Sublessee ("Sublessee") relative to Lot 1, referenced below, on the other. RECITALS A. Lessor holds title to two parking lots, located on the southerly portion of I I I I N. Green Street, McHenry, Illinois; specifically, the lower north lot with access from Green Street and the upper south lot with access from Waukegan Road, each respectively identified as Lot I and Lot 2 on the photograph attached hereto as "Exhibit A"("Premises"). The Premises lies with PIN 09-26-380-014. B. Lessor desires to lease to the City the Premises, with the right to manage, operate and maintain a public parking facility thereon. C. The City desires to sublease Lot I to Sublessee. NOW, THEREFORE, for and in consideration of the foregoing Recitals, the mutual covenants and agreements set forth herein, and other good and valuable consideration, the receipt, adequacy and sufficiency of which are hereby acknowledged and accepted by the Parties hereto, the following agreements are made: I . Cancellation of Existing Lease of the Premises. The City and Lessor hereby declare that the written lease agreement relating to the Premises dated August 30, 2010 signed by the City and Lessor ("Former Lease") is hereby cancelled and this Agreement shall be executed as a replacement Lease. The parties shall account to each other for payments due on the Former Lease and payments due hereunder. 2. Fee and Tenn. The City covenants and agrees to pay Lessor the sum of Five Hundred Dollars and No/l 00 ($500) per month for the Premises, payable on a semi-annual basis commencing upon execution of this Agreement. Either party may at any time terminate this Agreement by giving the other party sixty (60) days' prior written notice of its intention to so terminate. 3. Premises "As Is". All of the improvements, including but not limited to; the parking surface, stairs, handrails, sewer grates, light pole and/or lighting fixtures, and walkways are being leased "as is" with no implied warranties or representations. The City will make any modifications or improvements to these elements at its sole expense, only after receiving approval for such modifications from Lessor, the approval of which will not be unreasonably withheld. The Lesssor, at its cost, shall provide the electricity to power the light located between Lots I and 2 at all times. The City acknowledges that ten parking spaces along the west line of Lot I lot will be available exclusively for Landmark School's usage, on school days only when school is in session, and it will be the school district's responsibility to post and control this restriction. 4. Use of Premises. During the term of this Agreement, Lessor shall permit and not interfere with or infringe upon, the use of the parking facility by the general public or the City, its agents, permitees, licensees or employees, subject to ten parking spaces partially reserved in paragraph 2, above. Also, throughout the term of this Agreement, Lessor shall be permitted access to Lot I to park an amphibious DUKW, without restriction, for a ten-day period of Lessor's choosing, each calendar year. The City shall make available parking spots necessary to park such vehicle. 5. Maintenance by Lessee. The City, at its own cost and expense, and at its discretion, shall manage the Premises parking facility and shall be responsible for the performance of "Routine Maintenance" throughout the term of this Agreement. Routine Maintenance shall be limited to snow removal, sweeping, seal coating, re-sLriping and patching pavement associated with the operation of the parking facility. Provided, however, the City has no obligation to other -wise repair or reconstruct the parking facility ore Premises. 6. Sigm. The City may permit signage on the Premises, including, but not limited to one that substantially reads, "Parking for Green Street Businesses Only" and one that designates parking under the Sublease below for use by the tenants of the Riverplace Luxury Residences. 7. Legal and Insurance. The City shall manage, operate, maintain and use the Premises and the parking facility in compliance with the requirements of all local, state and federal ordinances, laws, rules and regulations in effect during the term of this Agreement. The City will provide Lessor with a certificate of general liability insurance covering the Premises naming Lessor as an additional insured. 8. Quiet Enjoymen . Lessor hereby covenants quiet enjoyment of the Premises. Lessor assumes any damages the City may sustain as a result of, or in connection with, any want or failure at any time of LeSSOT'Sgood title to the Premises. 9. Indemnification. To the extent covered by applicable insurance, the City hereby indemnifies and holds harmless Lessor from any and all injuries sustained, including death, to any licensees or permittees who enter onto the Premises for purposes of this Agreement. 10. Taxes. Lessor shall be responsible for payment of all real estate taxes and special assessments, if any, assessed against the Premises, including but not limited to Teat estate taxes assessed. it. Sublease of Lot 1. The City hereby subleases Lot I to Sublessee for purposes of tenant parking related to the Riverplace Luxury Residences. Pursuant to this sublease, Sublessee shall 1) pay to the City the same payment that the City pays to Lessor hereunder for leasing Lots I and 2 hereunder and at the same time the City's payment is due; (2) restore to operating condition the strectlight between Lots I and 2; 3) install necessary signage on Lot I referencing parking for tenants of the Riverplace Luxury Residences; 4) perform all Routine Maintenance obligations of the City on Lots I and 2 set forth in this Agreement and 5) honor Lessor's right to park his DLJKW vehicle on Lot I as referenced above. Provided, however, the City shall retain the right to complete restriping of Lot 2. In the event the Sublessee defaults on its obligation to perform Routine Maintenance the City reserves the right, but not the obligation, to perform said Routine Maintenance and the Sublessee shall reimburse the City upon written request for related expenses. Sublessee hereby indemnifies and holds harmless the City from any and all injuries and property damage sustained, to any person on Lot I during the term of this Sublease. Sublessee shall maintain liability insurance on both Lots I and 2, during the terrn of this lease and the City shall be named an additional insured. The limits of liability shall not be less than $1 million per person and in the aggregate. Evidence of this insurance coverage shall be provided to the City upon execution of this Agreement and thereafter upon reasonable request. The term of this sublease shall be month to month. 12. CONSENT TO SUBLEASE. Lessor hereby consents to the sublease of Lotl pursuant to the terms of this Agreement. 13- NOTICES. All notices sent hereunder shall be sent via first class mail, postage prepaid as follows: City: Lessor: City of McHenry 333 S. Green Street McHenry, Illinois 60050 Attention: City Administrator Edward J. Neumann, Jr., as Trustee, under the provisions of a Trust Agreement dated June 15, 2007, and known as the Edward J. Neumann, Jr. Trust 308 Country Club Dr McHenry, IL 60050 Sublessee: I I 10 Green, LLC Roy Blavvise, Manager 655 W Irving Park Road, Ste. 105 Chicago, IL 60613 Lessee/Sublessor I By— 1L Z ;3;�— Ausan E. Low, May -or Sublessee: I I 10 Green LLC By 'Wo-y 9-lavvise, Manager Lessor: By� Edward J. �umannl Jr., Trustee Exhibit A "Premises" Neumann Parldng Loc Lease Areas (Lot I and Lot 2)