HomeMy WebLinkAbout1999-272
RESOLUTION NO. 99-272
AGREEMENT WITH MAX TODO MARINE SERVICES, INC.,
FOR LEASE OF CITY -OWNED PROPERTY
BE IT RESOLVED by the City Council of Stillwater, Minnesota, that the Agreement
between the City of Stillwater and Max Todo Marine Services, Inc., for the lease of City-owned
property, described on the attached Exhibit A, for the term of an initial three year period and two
one-year extension periods in accordance with the Lease Agreement is hereby approved in
concept subject to compliance with the Notice and Hearing procedures contained in the City
Charter with respect to the change in use of City-owned river front property.
Adopted by Council this 21st day of September, 1999.
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ATTEST:
LEASE AGREEMENT
THIS AGREEMENT made this 16th day of December, 1999, between the City of
Stillwater, Washington County, Minnesota, a Home Rule City of the Third Class ("City") and
Max Todo, Marine Services, Inc., a Minnesota corporation, with offices at 16355 - 18th Street
South, Lakeland, Minnesota 55082 ("Max Todo").
1. Recital. The City is the owner of real estate with frontage on the 81. Croix River
("Property"), part of which was formerly rented to Aiple Towing Company who operated a barge
terminal facility from the site.
2. The Property. A portion of this Property is the subject of this Lease and is
described on the attached Exhibit "A", the Property where currently a City owned barge entitled
the "Frank E" is moored along with a City owned vessel known as the "Cayuga", a vessel that is
held by the City for future use as park facility, but that currently is in need of substantial repair.
3. Term. The City is willing to lease the site to Max Todo by this instrument for an
initial three (3) year period and two (2) one-year extension periods on the consideration and
according to the terms set forth in this Lease Agreement.
4. Rent. As and for rent payable to the City during the term of this Agreement, Max
T odo will perform repairs to the Cayuga according to the repair items list schedule attached to
this Agreement as Exhibit "B". The order and timing of the work will be determined by Max
Todo but all work must be completed during the initial three (3) year term of this Agreement. As
additional rent, Max T odo will move the City barge from the Property to Lowell Park for the
Lumberjack Days celebration and return it to its mooring site <?n the Property at no charge to the
City. This provision will not prevent Max Todo from charging private parties for services
rendered to them beyond the actual mooring and spudding down of the barge. Max Todo will
also, at the end of the term of this Agreement, move the Cayuga to its final location, without
charge to the City. Any use of the barge by Max Todo or others will require prior approval of
the City Coordinator.
5. Appearance. Max Todo agrees to maintain the physical appearance of the
Property in its present condition and promises to erect no additional out buildings or structures
on the Property.
EXHIBIT A
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6. Mooring. Max Todo will be allowed to bring to the Property and moor on the
Property a marine crane, tug boat, additional barges, material for the construction of new barges,
welding equipment and additional boats and vehicles as needed to reasonably maintain their
business.
7. Landscaping. Max Todo will also plant shrubs, annual and perennial flowers,
grade the access road, cut and trim brush and weeds, and maintain the Property in a presentable
fashion.
8. Lock Out Gate. Max Todo will construct lock out gates that will be installed to
secure the Property and prevent public access to the Cayuga, the barge and their business
property .
9. Waiver. Max Todo also agrees and waives by this Lease any claim that they
might otherwise have to compensation as a lessee in possession under any state or federal law or
rule should the property be needed to accommodate construction of an interstate bridge, bridge
piers or abutments or other possible bridge construction impacts in the event the Property or any
part of it is needed for bridge construction or bridge construction impacts or is affected by bridge
construction impacts. Max Todo upon ninety (90) days written notice by the City agrees to
accommodate any such construction or impacts. In that event the City agrees to reasonably
explore relocation of Max Todo for the remainder of the Lease period as long as a relocation
does not involve expense or charge to the City and the accommodation can reasonably be made.
If reasonable accommodations can not be made without charge to the City, Max Todo agrees to
vacate the Property leaving it in as good as condition as it is now found, waive any claim for
material or work done to the Cayuga, the barge or the premises and this Agreement will be null
and void. In that event, Max Todo will be relieved from further repairs to the barge or Cayuga.
10. Mooring Visitors. Max Todo also agrees to reasonably accommodate, at the
request of the City, any marine services who are temporarily working on public projects on the
St. Croix River on a temporary basis and who are in need of loading, unloading or mooring
vessels involved in this work. This provision will be operative on a case by case basis and may
not unreasonably disrupt Max Todo's operations, or provide a competitor with an unreasonable
advantage.
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11. Insurance. Max T odo must insure the Property and the Cayuga against all risks
and provide the City with a certificate of insurance evidencing $1,000,000 combined single
limits coverage on their operation, naming the City as an additional insured as their interest may
appear.
12. Prohibition Assignment. This Agreement and the rights granted hereunder may
not be assigned or transferred by Max Todo without the prior written.consent of the City.
13. Conditions Precedent. This Agreement will not be effective unless all City
Charter provisions that pertain to the use of City owned land have been followed and approved
by the City Councilor the voters in the event that a referendum and also the approval of the
United States Army Corps of Engineers and the Minnesota Department of Natural Resources.
IN WITNESS WHEREOF, the parties have set their hands this 16th day of December,
1999.
CITY OF STILL WATER
By:
Jay L. Kimble, Its Mayor
ATTEST:
Modi Weldon, Its City Clerk
MAX TODO,
MARINE SERVICES, INC.
By:
Thomas F. Huninghake
Its: President
By:
Audrey J. Guild
Its: Secretary
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STATE OF MINNESOTA )
) ss
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this 16th day of December, 1999,
by Jay L. Kimble, Mayor and Modi Weldon, Clerk, for the City of Stillwater.
Notary Public
STATE OF MINNESOTA )
) ss
COUNTY OF WASHINGTON )
The foregoing instrument was acknowledged before me this 16th day of December, 1999,
by Thomas F. Huninghake, the President, and Audrey J. Guild, the Secretary, duly authorized
agents for Max Todo, Marine Services, Inc., a Minnesota corporation.
Notary Public
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List of Repair Items
1.) Repair and or replace broken windows.
2.) Repair holes in deck.
3.) Repair roof.
4.) Lock for hatch cover.
5.) Intense inner hull and bilge cleaning.
6.) Removal of any remaining fuel and or lubricants.
7;) Reinforce Collision Bulk Head to be water tight.
8.) Aft Bulk Head to be raised 3' to 4' and reinforced.
9.) Shaft Bulk Head to be raised 3' to 4' and reinforced.
10.) Contain current leaks and future leaks.
11.) Emergency pumps plumbed in and installed.
12.) Paint removal and new paint.
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13.) Permanent repair of Bow Tank..
14.) Level Alarm System.
15.) Removal of any unnecessary pipes, wire, tanks etc.
16.) Lock-Out Gate.
17.) Clean up grounds and plant flowers and shrubs for aesthetics.
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