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2023-13RESOLUTION NO. 2023-13 COUNCIL MEMBER HAFER INTRODUCED THE FOLLOWING RESOLUTION: WHEREAS, the City previously approved a bid for the construction of a police storage garage by Harsin Construction at 1730 Lincoln Street on February 14, 2023. WHEREAS, the City and Joseph's Coat, Inc., d/b/a Joseph's Coat desire to enter into a lease agreement wherein the non-profit organization will occupy the west bay of the Police Department Garage being constructed at 1730 Lincoln Street and Joseph's Coat is willing to financially contribute in the form of rent to assist with the additional costs associated with constructing a larger storage garage at 1730 Lincoln Street for its non- profit purposes of operating a thrift store which provides assistance to low-income families and financial assistance to the Washington County Food Bank. WHEREAS, the Mayor and City Council were previously presented with a Lease Agreement between Joseph's Coat, Inc., d/b/a Joseph's Coat for leasing a bay at a storage garage being built by the City of Blair. WHEREAS, said Lease Agreement is on file with the City Clerk and is acceptable to the City of Blair. NOW, THEREFORE, BE IT RESOLVED that the Lease Agreement between the City of Blair and Joseph's Coat, Inc, d/b/a Joseph's Coat, is hereby adopted and approved by the municipality and the Mayor and City Clerk of the City of Blair are hereby authorized and directed to execute the same on behalf of the municipality. COUNCIL MEMBER SCHANK MOVED THAT THE RESOLUTION BE ADOPTED AS READ, WHICH SAID MOTION WAS SECONDED BY COUNCIL MEMBER HAFER. UPON ROLL CALL, COUNCIL MEMBERS HIGHFILL, FERRARI, SANDVOLD, WILLIS, WOLFF, SCHANK AND HAFER VOTING "AYE" AND COUNCIL MEMBERS NONE VOTING `NAY", THE MAYOR DECLARED THE FOREGOING RESOLUTION PASSED AND APPROVED THIS 25TH DAY OF APRIL 2023. CITY OF BLAIR, NEBRAS ATTEST; EELER, CITY LERK M S ATED� �RASKA ) ) ss COUNTY OF WASHINGTON ) BRENDA WHEELER, hereby certifies that she is the duly appointed, qualified and acting City Cleric of the City of Blair, Nebraska, and that the above and foregoing Resolution was passed at a regular meeting of the Mayor and City Council of said City held on the 25th day of April, 2023. BRENDA WHEELER, CITY CLERK CITY OF BLAIR LEASE WITH JOSEPH'S COAT INC. THIS LEASE is made and entered into this day of , 2023, by and between City of Blair (hereinafter collectively referred to as "CITY"), and Joseph's Coat, Inc. d/b/a Joseph's Coat (hereinafter referred to as "TENANT"). WITNESSETH: WHEREAS, CITY is the owner of a certain tract of land more particularly described hereinafter, which tract is located at the Blair Police Department located in at 1730 Lincoln Street, Blair, Washington County, Nebraska (sometimes hereinafter referred to as the "POLICE STATION"); and WHEREAS, CITY desires to build a police garage (hereinafter referred to as "BUILDING") for the use of the Blair Police Department for its official duties. The CITY took bids for the building of a storage garage for the Blair Police Department, which bids were opened and a bid was accepted by Harsin Construction in the amount of $131,245.00 on February 14, 2023. WHEREAS, TENANT, is a current non-profit organization which qualifies as a 501(c)(3) organization. TENANT has a current address of 1737 Washington Street, Blair, Nebraska and operates a non-profit thrift store that benefits low-income person(s) and offers goods for resale at a below market value. The TENANT does not own or lease any building in which its use is for financial gain or profit to either the TENANT or user. WHEREAS, TENANT approached CITY about renting space at the BUILDING due to needing additional space to store the resale items for its thrift store. The TENANT will not utilize the PREMISES for financial gain or profit to the TENANT or any user. WHEREAS, CITY desires to lease a separate storage bay to TENANT and TENANT desires to undertake the lease of said storage bay under the terms and conditions hereinafter set forth for the purpose of constructing thereon a 15' by 36' Bay at the West end of the BUILDING, (hereinafter referred to as "PREMISES"). WHEREAS, TENANT UNDERSTANDS and DESIRES to assist in the additional costs of the project, which increased the accepted bid to a total amount of $193,770.00 to add the PREMISES to the BUILDING. NOW, THEREFORE, for and in consideration of the premises and the mutual promises, covenants and obligations hereinafter stated, the parties mutually agree as follows, to -wit: ARTICLE I - TERM OF LEASE 1.1 ORIGINAL LEASE TERM. The term of this Lease shall be for a period of Twenty - Five (25) years commencing on that date (referred to herein as the "Commencement Date") which is the first day of the first month in which the tenant takes occupancy of the premises 1.2 RENEWAL LEASE TERMS. TENANT and CITY may mutually agree to renew this Lease for up to two (2) additional five (5) year terms by submitting a written notice of intent to exercise renewal at least ninety (90) days prior to the end of the then current lease term. Rent shall be determined in accordance with Paragraph 2.2 below. ARTICLE II - RENT 2.1 INITIAL RENTAL PAYMENTS. Commencing on July 1, 2023 or when the TENANT takes occupancy of the premises, whichever is sooner. The TENANT shall pay the sum of Sixty Two Thousand Five Hundred twenty-five Dollars ($62,525.00) to the CITY which is the additional costs due to adding on the PREMISES to the BUILDING for the TENANT. That amount shall be considered rent for the TENANT for the first Twenty-five (25) years of this lease, which is considerably less than fair market value for like storage facilities in the Washington County area. 2.2 RENT MODIFICATION. IF the TENANT renews the lease after the first Twenty - Five (25) years of this Lease under one or both of the options outlined in paragraph 1.2 above, TENANT'S rent shall be the sum of One Dollar ($1.00) per month for the term(s) of the First and Second Options. 2.3 INSURANCE. TENANT shall secure its own renter's insurance for any contents it stores on the property, liability insurance, and any workman's compensation insurance. TENANT agrees to indemnify and hold harmless the CITY from any claims or causes of action that arise from TENANT'S use and/or occupancy of the Bay, BUILDING, and/or PROPERTY. TENANT shall name the CITY as an additional insured and/or beneficiary to any policy and provide written copies of proof of coverage to the City on a yearly basis. TENANT agrees to furnish releases to any and all insurance companies of any cancellation of an insurance policy. 2.4 REAL ESTATE TAXES. TENANT, as additional rent, shall pay and discharge all such real estate taxes and assessments, and all such other charges and payments of any kind and nature whatsoever, extraordinary, as well as ordinary, and whether or not now within the contemplation of the parties, imposed by any governmental or public authority as shall, during the Term herein granted, be imposed or become a lien in respect of the Premises or any part thereof or upon any building or appurtenance thereto, or any part thereof, or which may become due and payable with respect thereto, during the Term hereof, but only to the extent that such taxes, assessments and charges are directly attributable to the Premises. TENANT shall also pay and discharge, as additional rent, all taxes and assessments which shall or may during the term of this lease be charged, laid, levied, assessed or imposed upon, or become a lien upon the personal property of TENANT in the operation of the Premises or in connection with TENANT'S business conducted on the Premises. TENANT shall be deemed to have complied with the foregoing covenants of this article if payment of any such taxes, assessments, rents and charges, and other governmental impositions, duties and charges is made by TENANT within the period during which payment is permitted without penalty or interest, and TENANT shall immediately upon payment produce and exhibit to CITY satisfactory evidence of such payment. TENANT may contest, in good faith, by appropriate proceedings, at TENANT'S expense, any such taxes, assessments, charges or similar items, provided that TENANT shall deposit with CITY a sum which shall be at least equal to the amount of the item so contested. CITY may upon reasonable notice to TENANT pay such contested item or items out of any sums so deposited in case of undue delay in the prosecution of such proceedings, or if the protection of the property or of CITY'S interest therein shall, in the reasonable judgment of CITY, require such payment; or at its option, where such procedure is provided for by law, TENANT may pay such items under protest or make proper deposit in court. When any such contested items have been paid or canceled, any sums deposited to cover them, and not applied by CITY as aforesaid, shall be repaid to TENANT. Any documents required to enable TENANT to affect the foregoing shall be executed and delivered by CITY on reasonable demand and in default thereof TENANT may execute the same as attorney-in-fact of CITY. ARTICLE III - DESCRIPTION OF PREMISES 3.1 PREMISES. Subject to the terms and conditions herein expressed, CITY hereby leases to TENANT and TENANT leases from CITY to have and to hold, as 15' x 36' Bay on the West end of the BUILDING, located at 1730 Lincoln Street, situated in the County of Washington, State of Nebraska and more particularly described in Exhibit "A", which is attached hereto and made a part hereof by reference (referred to throughout this Lease as the "Premises"), which consists of (540) square feet, more or less, located at 1730 Lincoln Street. 3 ARTICLE IV - USE AND OWNERSHIP 4.1 USE. The Premises are to be used for a non-profit storage facility for TENANT'S business uses incidental thereto as permitted under applicable laws and regulations. Under no circumstances shall the premises be used for any profit and/or financial gain of the TENANT and/or the users. If the TENANT moves from 1737 Washington Street and/or loses its non-profit 501(c)(3) status, then the Premises shall be vacated within thirty (30) days of vacating 1737 Washington Street and/or losing its non-profit 501(c)(3) status. 4.2 ASSIGNMENT. The TENANT may not assign, transfer, or sublet any portion of the PREMISES. 4.3 RIGHTS AND OBLIGATIONS ON DEFAULT. In the event of any default, the premises shall be vacated by the TENANT within thirty (30) days. 4.4 OWNERSHIP. At all times during the term of any Lease of the PREMISES, the TENANT acknowledges that the PROPERTY, BUILDING, and PREMISES, are the exclusive property of the CITY and the TENANT shall have no ownership rights, control, or interest any of title of the PROPERTY or BUILDING, or PREMISES. ARTICLE V — IMPROVEMENTS 5.1 TENANT'S IMPROVEMENTS. Prior to construction of any improvements and/or fixtures TENANT must comply with all CITY rules and regulations, Statutes of the United States and State of Nebraska, and obtain the written permission of the CITY before construction of any Improvement on the Premises. Upon termination of this lease for any cause whatsoever, all buildings, improvements, and fixtures constructed by TENANT on the Premises and all fixtures appurtenant to such buildings and improvements shall be and become the property of CITY. 5.2 IMPROVEMENT MAINTENANCE. TENANT shall, throughout the Term of this Lease, at its own cost, and without any expense to CITY, keep and maintain the Premises, including all buildings and improvements of every kind which may be now or hereafter constructed, in good, sanitary and neat order. Subject to Section 5.5 below, TENANT shall restore and rehabilitate all TENANT'S improvements which may be destroyed or damaged by fire, flood, casualty or any other cause whatsoever. CITY shall not be obligated to make any repairs or replacements of any kind, nature or description, to TENANT'S improvements. 4 ARTICLE SIX — NO DISCRIMINATION 6.1 NO DISCRIMINATION. TENANT, as apart of the consideration hereof, does hereby agree that: (1) no person on the grounds of sex, race, religion, age, disability, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subjected to discrimination in the use of said facilities, (2) that in the construction of any improvements on, over, or under such land and the furnishing of services thereon, no person on the grounds of sex, race, religion, age, disability, color, or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination. ARTICLE VII - UTILITIES TAXES AND INSURANCE 7.1 TAXES AND ASSESSMENTS. TENANT shall pay all property taxes and assessments of any nature levied on the Premises, only to the extent attributable to the Premises, by an authorized governmental agency and shall provide written proof of payment to the CITY. 7.2 UTILITIES. CITY shall pay all charges incurred for utility services supplied to the Premises, including but not limited to charges for water, gas, electricity, and sewer. TENANT shall pay for any telephone and/or internet utilities. 7.3 GENERAL LIABILITY INSURANCE. TENANT shall maintain in effect throughout the Term of this Lease commercial general liability insurance with a combined single limit not less than $2,000,000 per occurrence, covering bodily injury and property damage. Such insurance shall insure both TENANT and CITY and shall be so endorsed as to create the same liability on the part of the insurer as though separate policies had been written for TENANT and CITY but will not expand the limits of coverage by reason of such endorsement. TENANT shall provide the CITY with an updated Certificate of Insurance on an annual basis. The Certificate shall indicate CITY as additional insured. TENANT shall increase the limits of liability if required by the State of Nebraska or other regulatory entity. ARTICLE VIII - GENERAL PROVISIONS 8.1 RIGHT OF INSPECTION. CITY shall have the right, subject to the restrictions set forth in this Section 11. 1, at all reasonable times during the Term of this Lease after reasonable notice to TENANT to enter upon the Premises for the following purposes: A. To inspect the Premises and all buildings and improvements thereon; B. To effect compliance with any law, order or regulation of any lawful authority; R C. To make or supervise major repairs, alterations or additions; (This sub -paragraph shall not be interpreted to impose any duty upon CITY to make or supervise any such major repairs, alterations or additions); D. To exhibit the Premises to prospective tenants, purchasers or other persons after receipt from TENANT of TENANT'S intent not to renew this Lease; or at any time during the six-month period prior to the date of expiration of the last renewal term of this Lease; and 8.2 REDELIVERY OF PREMISES. TENANT shall pay the rent and all other sums required to be paid by TENANT hereunder in the amounts, at the times, and in the manner herein provided, and shall keep and perform all the terms and conditions hereof on its part to be kept and performed, and, at the expiration or termination of this Lease, peaceably and quietly quit and surrender to CITY the Premises in good order and condition subject to reasonable wear and tear and the other provisions of this Lease. In the event of the non- performance by TENANT of any of the covenants of TENANT undertaken herein after expiration of all cure periods, this Lease may be terminated as herein provided. 8.3 REMEDIES CUMULATIVE. All remedies hereinbefore and hereafter conferred on CITY shall be deemed cumulative and no one exclusive of the other, or of any other remedy conferred by law. 8.4 WAIVING. Any failure of CITY to insist on performance of any of the terms of this Lease shall not be construed as a waiver of such terms and the same shall remain in full force and effect for the Term. 8.5 ACTS OF GOD. Except as otherwise provided herein, neither CITY nor TENANT shall be liable for delays or defaults in the performance of this Lease due to Acts of God or the public enemy, riots, strikes, floods, fires, explosions, accidents, governmental action of any kind or any other causes of a similar character beyond the control and without the fault or negligence of either party. 8.6 WHOLE CONTRACT. This document contains the entire agreement between the parties and cannot be amended orally, but only by an instrument in writing signed by both parties. 8.7 NOTICE. Any notice, invoice or communication provided herein, shall be in writing and considered completed and received seventy-two (72) hours after said notice, invoice or communication is deposited in the United States mail by certified mail, return receipt requested, 6 addressed to TENANT, at 1737 Washington Street, Blair, Nebraska 68008 and to CITY, c/o City Clerk, 218 South 16th Street, Blair Nebraska 68008. 8.6 INDEMNIFICATION AGAINST ALL CLAIMS. TENANT shall indemnify, defend and hold harmless CITY against any and all claims, damages, suits, and causes of action for damages arising after the commencement of the Term hereof and against any order, decrees and judgments which may be entered thereon, brought for damages or alleged damages resulting from any injury or alleged injury to person or property or for loss of life alleged to have been sustained in or about the Premises whenever any said alleged liability arises because of any action or inaction of TENANT, its agents, contractors or subcontractors, but only to the extent attributable to any action or inaction of TENANT or its agents, contractors or subcontractors. TENANT'S indemnification obligations shall include but not be limited to payment of all CITY'S reasonable attorney fees, consultant fees, and expert fees involved in defending such claims, damages, suits and causes of action. TENANT'S indemnification of CITY shall not be limited or restricted. 8.7 VENUE AND CHOICE OF LAW. In the event that any actions or proceedings are initiated with respect to this Lease, TENANT and CITY agree that the venue for any such dispute shall be the district court system of Washington County, and that this Lease shall be governed by the laws of the State of Nebraska. 8.8 SEVERABILITY. If any term, covenant or condition of this Lease or the application thereof to any person or circumstances shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or condition of this Lease shall be valid and be enforced to the fullest extent permitted by law. 8.9 HOLDING OVER BY TENANT. TENANT shall not acquire any right or interest in the Premises by remaining in possession after termination of this Lease. During any such period of holding over, TENANT shall be a tenant at will subject to all the obligations imposed upon it by this Lease. 8.10 WITHHOLDING REQUIRED APPROVALS. Whenever the approval of CITY or TENANT is required herein, no such approval shall be unreasonably requested, withheld, conditioned or delayed. 7 ARTICLE IX - TERMINATION 9.1 DEFAULT — BY TENANT. If TENANT shall fail to perform, keep and observe any of the terms, covenants, conditions, or agreements herein contained on the part of TENANT to be performed, kept and observed, including payment of rent or charges, TENANT shall be in default. CITY may give TENANT written notice to correct or cure such default which notice shall set forth in detail the facts alleged to constitute said default. If any such default shall continue for thirty (30) days after receipt of such notice by TENANT, CITY may either: 1) file a complaint for restitution of the premises pursuant to the Nebraska Forcible Entry and Detainer Act, Neb. Rev. Stat. § 25,21,219 et seq., or, 2) give TENANT written notice of termination which notice shall specify the date of termination which shall not be earlier than thirty (30) days after the receipt by TENANT of such written notice of termination. After receipt of such written notice of termination by TENANT, TENANT shall have the further right to correct or cure any default specified by TENANT within such thirty (30) day period. If such default is not corrected or cured prior to the termination date specified in such notice, this Lease shall then terminate on such date as if it were the day herein definitely fixed for the end and expiration of this Lease and the Term thereof. TENANT shall not be deemed to be in default, if prior to the date specified in any notice it takes action to correct the specified default and in good faith diligently proceeds therewith to completion even though said default may not be fully corrected within the time specified in the notice. Notwithstanding anything herein to the contrary, if TENANT fails to pay rent or charges on the date said rent or charges are due, said failure shall constitute default. If said charges and rents, plus interest hereinafter specified, are not received within thirty (30) days after TENANT'S receipt of notice from CITY stating that the rent and charges are delinquent, then CITY may, subject to the mortgagee's rights under paragraph 4.3, terminate this Lease for said default. 9.2 REMEDIES FOR DEFAULT. In the event that CITY shall at any time terminate this Lease for any default, all title to TENANT'S improvements (but not TENANT'S personal property) shall pass to CITY upon the date of termination of this Lease. Furthermore, in addition to any other remedy it may have, CITY may recover from TENANT all damages incurred by reason of such default, including, but not limited to the cost of recovering the Premises and amount of rent and charges owed to CITY for the remainder of the Term (not including any renewals thereof which have not been exercised by TENANT), all of which amounts shall be immediately due and payable from TENANT to CITY. 8 IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written. DATED this day of Z62 r, t ( , 2023. Date J elle Maras, President of Joseph' Coat, Inc. d / oseph's Coat 1-/f1 Date STATE OF NEBRASKA ) ss. COUNTY OF WASHINGTON ) P linda Rump, Cit)��OB`14 Mayor On this d day of r r 2023, before me appeared , Joellen Maras, President of Joseph's Coat, Inc. d/b/a Joseph's Coat, to me personally known, who, being duly sworn, did say that she is authorized to execute the foregoing instrument on behalf of said entity and acknowledged to me that she executed the same for the purposes therein stated. IN TESTIMONY WHEREOF, I have hereunto set myy hand and affixed my official seal in the County and State aforesaid, the day and year first above written. Ffl GENERAL NOTARY - State of Nebraska BRENDA R WHEELER � zT My Comm. r V Jnne 20, 2024 My commission expires Notary Public STATE OF NEBRASKA ) ) ss. COUNTY OF WASHINGTON ) On this 2-5 day of r k 1 , 2023, before me appeared Melinda Rump, Mayor of City of Blair, to me personally known, who, being duly sworn, did say that she is authorized to execute the foregoing instrument on behalf of said entity and acknowledged to me that she executed the same for the purposes therein stated. IN TESTIMONY WHEREOF, I have hereunto set my hand and affixed my official seal in the County and State aforesaid, the day and year first above written. GENLRAL NOTARY - State of Nebraska BRENDA R WHEELER r My Comm. Exp, June 20, 2024 My commission expires 10 r Notary Public EXHIBIT A 1730 Lincoln Street, Blair (Tax Exempt), Nebraska, 68008 Legal Description: BC LOTS 20-30 BLK 45 114 PC 10 CITY POLICE DEPARTMENT 11 EXHIBIT B EQUAL OPPORTUNITY CLAUSE ATTACHMENT During the performance of this contract, the contractor agrees as follows: 1) The contractor shall not discriminate against any employee applicant for employment because of race, religion, color, sex, age, sexual orientation, gender identity, disability, or national origin. The contractor shall ensure that applicants are employed and that employees are treated during employment without regard to their race, religion, color, sex, age, sexual orientation, gender identity, disability, or national origin. As used herein, the word "treated" shall mean and include, without limitation, the following: recruited, whether by advertising or by other means; compensated; selected for training, including apprenticeship; promoted; upgraded; demoted; downgraded; transferred; laid off; and terminated. The contractor agrees to and shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officers setting forth the provisions of this nondiscrimination clause. 2) The contractor shall, in all solicitations or advertisements for employees placed by or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sex, sexual orientation, gender identity or national origin, age, disability. 3) The contractor shall send to each representative of workers with which he has a collective bargaining agreement or other contract or understanding a notice advising the labor union or worker's representative of the contractor's commitments under the equal employment opportunity clause of the city and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 4) The contractor shall furnish to the human rights and relations director all federal forms containing the information and reports required by the federal government for federal contracts under federal rules and regulations, including the information required, and shall permit reasonable access to his records. Records accessible to the human rights and relations director shall be those which are related to paragraphs (1) through (7) of this subsection and only after reasonable notice is given the contractor. The purpose of this provision is to provide for investigation to ascertain compliance with the program provided for herein. 5) The contractor shall take such actions with respect to any subcontractor as the city may direct as a means of enforcing the provisions of paragraphs (1) through (7) herein, including penalties and sanctions for noncompliance; however, in the event the contractor becomes involved in or is threatened with litigation as the result of such directions by the city, the city will enter into such litigation as is necessary to protect the interests of the city and to effectuate these provisions of this division; and in the case of contracts receiving federal assistance, the contractor or the city may request the United States to enter into such litigation to protect the interests of the United States. 12 6) The contractor shall file and shall cause his subcontractors, if any to file compliance reports with the contractor in the same form and to the same extent as required by the federal government for federal contracts under federal rules and regulations. Such compliance reports shall be filed with the human rights and relations director. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the contractor and his subcontractors. 7) The contractor shall include the provisions of paragraphs (1) through (7) of this section, "Equal employment opportunity clause," in every subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. 13