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HomeMy WebLinkAboutParking Lot Lease – Re-Entering into Five (5) Year Lease Agreement - Mary Coyne Investments, LLC  ELIZABETH A. MARADIK JOSEPH R. MOLNAR GARY A. GILOT JORDAN V. GATHERS MURRAY L. MILLER 1316 COUNTY-CITY BUILDING 227 W. JEFFERSON BOULEVARD SOUTH BEND, INDIANA 46601-1830 PHONE 574/ 235-9251 FAX 574/ 235-9171 CITY OF SOUTH BEND JAMES MUELLER, MAYOR BOARD OF PUBLIC WORKS April 26, 2022 Mr. Michael F. Coyne Mary Coyne Investments, LLC 1428 Hamilton Ave. Cleveland, OH 44114 RE: Parking Lot Lease Dear Mr. Coyne: At its April 26, 2022 meeting, the Board of Public Works approved the above referenced lease for re-entering into a five (5) year lease agreement starting May 1, 2022 in the amount of $1,622.98 per month. Enclosed please find a copy of the lease for your records. If you have any further questions, please call this office at (574) 235-9251. Sincerely, /s/ Theresa Heffner Theresa Heffner, Clerk Enclosures TH/lh Santiago Garces, Executive Director Memorandum April 19, 2022 TO: Board of Public Works FROM: Andrew Netter, Department of Community Investment SUBJECT: Parking Lot Lease Agreement, 214 – 226 W. Wayne St. The City is interested in re-entering into a lease agreement with Mary Coyne Investments, LLC., for use of 214 – 226 W. Wayne St., commonly known as the City employee parking lot at the southeast corner of W. Wayne St. and S. Lafayette Blvd. The terms of the lease are as follows: - Five (5) year lease commencing on May 1, 2022 - Lease payments will be paid in monthly installments, starting at $1,622.98/month for the first year with an annual fixed rate increase of 3% each subsequent year - The City will be responsible for snow and debris removal of the leased property - The City may terminate the lease for any reason upon a sixty (60) day written notice to the lessor Page 1 of 4 PARKING LOT LEASE This Lease (the “Lease”) is made April ___, 2022, between The City of South Bend, Indiana, acting by and through its Board of Public Works (“Lessee) and Mary Coyne Investments, LLC. (“Lessor”). 1.Leased Premises. Lessor hereby leases to Lessee and Lessee hereby leases from Lessor real estate and all improvements and all appurtenances which consist of the entire parking facility located at 214-226 W. Wayne Street, South Bend, Indiana 46601 (parcel number 018-3008-0251) (the “Leased Premises”). 2.Lease Term. The term of this Lease shall be for an initial term of five years (5), commencing on May 1, 2022, subject to the Termination provisions below. 3.Rent. In consideration hereof, the Lessee covenants and agrees to pay to Lessor, at the address set forth in Paragraph 14 or such other place as Lessor may from time-to-time designate in writing, rent for the Leased Premises in the following manner: a.Fixed Rent. Before the first (1st) day of each month during the initial one-year term of this Lease, Lessee agrees to pay Lessor a fixed monthly rent of one thousand six hundred twenty-two and 98/100 dollars ($1,622.98) for the Leased Premises. Rent in subsequent years will follow the payment schedule attached hereto as Exhibit A. As reflected in Exhibit A, Lessee agrees to pay an increase in rent of 3% per year following the first year. 4.Use. The Leased Premises shall be used for vehicle parking and related purposes and such other purposes as may be incidental thereto. Lessee shall have the right to install or erect at its expense, signage suitable for advertising purposes in or adjacent to the Leased Premises and any personal property or trade fixtures Lessee deems necessary for conducting business upon the Leased Premises in accordance with the uses and purposes provided herein. 5.Indemnification. Lessee shall indemnify and hold harmless Lessor from any and all loss, costs (including reasonable attorney’s fees), and liability on account of any damages, injuries, claims and demands to the extent caused by negligent errors, omissions or misconduct of Lessee, its agents or employees but only to the extent that same are caused by the negligence, misconduct or other fault of Lessee. Lessor shall indemnify and hold harmless Lessee from all loss, costs (including reasonable attorney’s fees), and liability on account of any damages, injuries, claims and demands to the extent caused by the negligent errors, omissions or misconduct of Lessor, its agents or employees. Lessee shall not be liable for any loss or liability caused by or arising from: (a) any structural defect on or about the Leased Premises; (b) the design of the Leased Premises or any acts or omissions of the Lessor, Lessor's agents, employees, licensees, or invitees. 6.Insurance. The parties hereto acknowledge that Lessee is self-insured under Indiana law. Lessor shall, at its own cost and expense, insure its obligations hereunder and keep in effect for the Leased Premises: commercial general liability, and fire Insurance with additional coverage commonly known as supplemental contract or extended coverage, covering interests of the Lessor and the Lessee in amounts sufficient to pay, in full, all losses to the Leased Premises. 7.Utilities and Services. To the extent applicable, Lessor shall pay all utility and service charges relating to the Leased Premises. 8.Taxes and Assessments. Lessor shall pay all taxes and assessments levied upon or assessed against the Leased Premises. 9.Permits and Licenses. Lessor warrants that it shall maintain any and all permits and licenses necessary for the Leased Premises to operate as a parking facility in South Bend, Indiana. 10.Duties of Lessee. Lessee shall keep the Leased Premises and adjacent sidewalk clean and free of snow and debris. 11.Peaceable Possession. a.Lessor and Lessee warrant that they have the authority to enter into this Lease, and Lessor warrants that no law, ordinance or regulation prohibits the use of the Leased Premises for any vehicle parking business. Lessor shall execute or procure any necessary assurances of title that may reasonably be required for the protection 26 Page 2 of 4 of Lessee. Lessor covenants that Lessee may peacefully hold and enjoy the Leased Premises during the lease term without any interruption by Lessor, its successors or assigns, or any other person or entity. b.Lessor and its authorized representatives shall have the right to examine and inspect the Leased Premises from time to time during usual business hours. c.Lessor represents and warrants that it has received no notice or knowledge of claimed violations of any law, ordinance or regulation relating to the Leased Premises. 12.Termination. In the event that either party breaches any covenant or obligation in this lease, the non-breaching party shall give the breaching party written notice of any intent to terminate this lease for such breach and of the cause therefore. If the breaching party does not correct the breach specified within thirty (30) days (or, in the event the breach is of a nature that cannot be reasonably remedied within thirty (30) days, fails to commence to remedy such breach within thirty (30) days and continue with reasonable diligence to correct same) this Lease may then be terminated by thirty (30) days written notice by the non-breaching party to the breaching party for such uncured cause. Upon cancellation or termination of this Lease, Lessee shall be released from any further obligation under the terms of this Lease arising after the date of such termination. Lessee may terminate the lease for any reason upon sixty (60) days written notice to Lessor. 13.Surrender. Upon the termination of this Lease by lapse of time or otherwise, Lessee agrees that it will surrender and deliver to Lessor possession of the Leased Premises. Lessee shall have the right to remove any and all of Lessee's personal property and trade fixtures prior to such surrender and delivery. 14.Notices. Any notices or communications required or requested to be given under the terms of this lease shall be deemed properly given if mailed by United States mail, registered and with postage prepaid, if to: to Lessor at: to Lessee at: Mary Coyne Investments, LLC 1428 Hamilton Avenue Cleveland, Ohio 44114 ATTN: Michael F. Coyne, Esq. City Controller Department of Administration and Finance City of South Bend 227 W. Jefferson Blvd., 1200N South Bend, Indiana 46601 With a copy to: Corporation Counsel Department of Law City of South Bend 227 W. Jefferson Blvd., 1200S South Bend, Indiana 46601 Addresses for notices may be changed by delivery notice of such change in the manner provided above. 15.Brokers. Lessor and Lessee each represent and warrant that they have not obligated the other to compensate any agent, attorney, broker or finder or their intermediary in connection with the negotiation, preparation or execution of this Lease. 16.Severability. If any provisions of this Lease shall be invalid or unenforceable, the remainder hereof shall nevertheless continue in full force and effect. 17.Waiver. Neither the failure nor any delay on the part of a party to exercise any right, remedy, power or privilege under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right, remedy, power or privilege preclude any other or further exercise of the same or of any right, remedy, power or privilege, nor shall any waiver of any right, remedy, power or privilege with respect to any occurrence be construed as a waiver of such right, remedy, power or privilege with respect to any other occurrence. No waiver shall be effective unless it is in writing and is signed by the party asserted to have granted such waiver. Page 3 of 4 18.Counterparts; Signatures. This Agreement may be separately executed in counterparts by the parties, and the same, when taken together, will be regarded as one original Agreement. Electronically transmitted signatures will be regarded as original signatures. 19.Authority. Each undersigned person signing on behalf of his or her respective party certifies that he or she is duly authorized to bind his or her respective party to the terms of this Agreement. 20.Governing Law. This Agreement will be governed by and construed in accordance with the laws of the State of Indiana. 21.Entire Agreement. The Lease contains the entire agreement and understanding between the parties hereto and may not be amended or changed except by agreement in writing executed by the parties. 22.Successors and Assigns. This Lease shall be binding upon and shall inure to the benefit of the parties hereto, their respective successors and assigns. Signature Page Follows Page 4 of 4 IN WITNESS HEREOF, duly authorized representatives of Lessor and Lessee have executed this Agreement as of the date first written above. Lessor: Mary Coyne Investments, LLC. By: _______________________________________ Name: ____________________________________ Title: ___________________________________ Lessee: April 26, 2022 EXHIBIT A Lease Period Monthly Rent May 1, 2022 – April 30, 2023 $1,622.98 May 1, 2023 – April 30, 2024 $1,671.67 May 1, 2024 – April 30, 2025 $1,721.82 May 1, 2025 – April 30, 2026 $1,773.47 May 1, 2026 – April 30, 2027 $1,826.68 BOARD OF PUBLIC WORKS AGENDA ITEM REVIEW REQUEST FORM Date 04/19/2022 Name Andrew Netter Department DCI BPW Date 04/26/2022 Phone Extension 5931 Review and Approval Required Prior to Submittal to Board Diversity Compliance and Inclusion Officer Officer Name BPW Attorney Attorney Name Clara McDaniels Dept. Attorney Attorney Name Jenna Throw Purchasing Maricela Juarez Check the Appropriate Item Type – Required for All Submissions Professional Services Agreement Contract Proposal Open Market Contract Amendment/Addendum Special Purchase, QPA Bid Opening Bid Award Req. to Advertise Title Sheet Quote Opening Quote Award Reject Bids/Quotes Proposal Opening C/O & PCA No. PCA Chg. Order, No. Traffic Control Resolution Other: Lease Agreement Ease./Encroach Required Information Company or Vendor Name Mary Coyne Investments, LLC. New Vendor Yes If Yes, Approved by Purchasing No MBE/WBE Contractor MBE WBE Completed E-Verify Form Attached Yes No Project Name Lease Agreement for City Staff Parking Lot Project Number Funding Source 404-04-040-040-437005 Account No. Amount $1,622.98/month Terms of Contract 5-year lease Purpose/Description Re-entering into lease agreement with Mary Coyne Investment, LLC. 5-yr. lease paid monthly. Starts May 1, 2022. Annual rate increase of 3%. For Change Orders Only Amount of Increase Decrease $ ($ ) Previous Amount $ Current Percent of Change: Increase Decrease % ( %) New Amount $ Total Percent of Change: Increase Decrease % ( %) Time Extension Amount: New Completion Date: