University of Minnesota s14
Lease Number
LEASE
THIS LEASE AGREEMENT is made and executed on , by and between the Regents of the University of Minnesota (the “Lessor”), a Minnesota constitutional corporation, and (the “Lessee”), .
WITNESSETH:
1. Term and Premises; Renewal Right. That the Lessor, for and in consideration of the covenants hereinafter expressed, and the rents reserved, does by these presents, hereby demise and lease unto the Lessee, for and during the full term of forty (40) years, commencing on , and ending on , that certain lot or parcel of land situated on the lands known as the “University Grove” and being the grounds of the University of Minnesota, in the County of Ramsey, State of Minnesota, and more particularly described as follows (the “Premises”):
See Exhibit A attached hereto.
Lessee shall have the right to renew this Lease, on the same terms and conditions, for an additional term of forty (40) years commencing on the expiration date of this Lease. Any such renewal shall be effective if Lessee shall give written notice to Lessor prior to the expiration of the current term. Lessor shall give written notice to Lessee not less than sixty (60) days prior to the expiration of the term of this Lease of the fact that the Lease will terminate unless renewed. If Lessor shall fail to give such notice, Lessor shall not be permitted to terminate this Lease until it shall give sixty days’ written notice to Lessee of the expiration of the term, during which period Lessee shall be entitled to exercise the renewal right herein contained.
2. Rent. The Lessee covenants and agrees to pay to the Lessor at University of Minnesota Real Estate Office, 424 Donhowe Building, 319-15th Avenue SE, Minneapolis, MN 55455, the annual ground rent or sum of One Hundred Dollars and no/100 ($100.00), payable in advance on the above commencement date and each one-year anniversary of said commencement date thereafter during the term hereby created and during any renewal terms, without demand therefor. If any rental payment is more than fifteen (15) days delinquent, a Twenty-five and no/100 Dollar ($25.00) late fee will be added to the rental account. Rental payments received will be applied first to the late charge, then to the base rent due. A fee of Twenty Dollars and no/100 ($20.00) shall be paid by Lessee for all checks returned by the bank due to insufficient funds, account closed, or for any other reason. If this Lease is terminated prior to the expiration date for any reason other than Lessor’s default, including, without limitation, an Assignment, Lessor shall retain all pre-paid rent, and Lessee shall not be entitled to any refund therefor.
3. Use of Premises. The Lessee further covenants and agrees to and with the Lessor that any building or buildings upon said Premises will be used in compliance with the building and zoning ordinances of the City of Falcon Heights and the State of Minnesota and all other applicable codes and ordinances; and, that the Lessee will use said Premises solely for the construction and use of a single family residence or dwelling and, if desired, a private garage in the rear of or attached to said dwelling and that no apartment house, or flat building, or building for the use of more than one family will be constructed or used without the written consent of the Lessor. The Premises shall be occupied by the Lessee except as provided in sections 7.4 and 7.5 hereof.
4. Approval of Plans and Specifications by Lessor. The Lessee covenants and agrees before the commencement of any exterior improvements to deliver to the Lessor a complete and final set of plans and specifications of all improvements proposed to be erected or made on the Premises, and not to erect or commence work on any of the same until the proposed improvements and their location upon said land shall have been first approved by Lessor. The Lessor shall have the right at all times during the construction of all improvements to examine and inspect the same to see whether they are being constructed in strict accordance with the approved plans and specifications, and, if not being so constructed, the Lessor shall have the right, at its option, to forthwith cancel and annul this Lease and terminate the term hereby created in accordance with paragraph 13 hereof. For purposes of this paragraph 4, “improvements” shall mean any proposed additional structures, constructions, additions, improvements, or modifications to be located on the Premises or changes to the exterior of structures that exist on the Premises at the date hereof and shall include any replacement improvements if the existing improvements shall be destroyed or demolished. All improvements shall be made in conformity to the rules and standards attached hereto as Exhibit B and made a part hereof, or such different rules and standards as may be adopted by Lessor after consultation with the Grove Association. Lessor agrees that, at the request of the Grove Association, it may assign to the Grove Association all rights and obligations to approve plans and specifications and supervise construction as herein provided, and, upon such assignment, Lessor shall have no further rights or obligations under this paragraph 4. The “Grove Association” shall mean an association of Grove Lessees who have identified themselves as the Grove Association by giving written notice to Lessor of their existence and providing to Lessor an address for the giving of notices. If Lessor shall be required to consult with or give notice to the Grove Association under this Lease, it shall initiate such consultation and give such notice in writing addressed to any such Association at the address so furnished. “Grove Lessees” shall mean the lessees named in those certain 103 leases (including this Lease) of the properties known as University Grove, legally described as all of the residential lots within Auditor’s Subdivision 71 and Auditor’s Subdivision 90, as on file in the office of the County Recorder, Ramsey County, Minnesota. Where two or more individuals are named as lessees under a Grove lease, such individuals shall collectively be a single Grove Lessee hereunder. So long as the Lessor is exercising approval rights hereunder, it will do so through a University Grove Committee whose members shall include the Director of Housing & Residential Life (who shall act as secretary) and one Grove Lessee who shall be elected annually by the Grove Lessees.
5. Bond for Protection Against Liens. Every building contract entered into by the Lessee, by recital or by reference to this Lease, shall show the extent of the interest of the Lessee in the Premises, and the Lessee covenants and agrees to hold harmless the Lessor of and from, and protect the Premises against, any and all liens occasioned by the erection of said building or improvements thereon. Before work on any such buildings or improvements is commenced, the Lessor may require that the Lessee and the Contractor or other person erecting the same, or either of them give, and they shall give, a good and sufficient bond protecting the Lessor and the Premises against all mechanic’s and other liens growing out of or incident to the erection or making of such improvement, but the Lessor may waive the giving of such bond or bonds. The Lessor shall have the right at all times during the erection of improvements thereon to post and maintain on said Premises or on the improvements in course or erection thereon such notice or notices of non-liability as it may desire to post thereon.
6. Compensation Insurance. The Lessee shall, before any such building or improvement is commenced, take out and maintain in force and effect builder’s risk, liability and comprehensive insurance with an insurance carrier, covering the liability of the Lessor and/or Lessee to any persons injured during the erection of such building or improvements, or his dependents, under the present or any future acts or laws which shall or may impose liability upon the Lessor for such injuries; and in the event of the Lessee’s failure so to do, the Lessor may take out and maintain such insurance, and in such event the Lessee agrees to repay to Lessor the full amount of premium, which it shall pay to such insurance carrier with interest at the rate of six (6) percent per annum from date of payment thereof by the Lessor until the repayment thereof to the Lessor by the Lessee.
7. Restriction to Assignment of Lease. The Lessee hereby agrees that Lessee will not let, sublet, or underlet the whole or any part of said Premises, nor sell, assign, or transfer (hereinafter collectively referred to as an “Assignment”) this Lease for any part or portion of the term hereby created, or the improvements on said Premises, except for an Assignment expressly permitted under this paragraph 7, and then only with the prior written consent of Lessor. Lessor shall not be required to consent to any Assignment that is not specifically provided for under this paragraph 7, and Lessee acknowledges and agrees that it has no vested right to any Assignment; that any Assignment without first obtaining the prior written consent of Lessor shall be void and a breach of covenant and need not be consented to; and that Lessor shall not be required to consent and shall be free to withhold its consent to any Assignment not permitted by this paragraph 7. Lessor shall not be liable for the failure or refusal to consent to an Assignment not permitted under this paragraph 7, nor shall Lessor be required to purchase any improvements or pay any money to Lessee if Lessor shall not consent to any Assignment not permitted under this paragraph 7. Lessor shall have the right, but not the obligation, to terminate this Lease in accordance with paragraph 13 hereof if Lessee shall attempt an Assignment not permitted under this paragraph 7. Lessor’s response to a request by Lessee for consent to an Assignment shall be in writing, shall be provided to Lessee, and a copy shall be provided to the Grove Association. In case any Assignment shall be consented to, no subsequent Assignment can be made except as herein provided and without again obtaining the prior written consent of the Lessor thereto. The following Assignments or subleases shall be permitted, and Lessor’s consent shall be given and not withheld in the following circumstances:
7.1 an Assignment to an individual who is (i) a member of the academic staff, tenure or tenure track, or administrative staff eligible for the Faculty Retirement Program of the University of Minnesota or a federal retirement plan; (ii) a current civil service or union-represented employee of the University of Minnesota whose employment is at least seventy-five percent (75%) time per year, or academic or contract year, excluding probationary employees or employees normally referred to as “temporary” whose employment is for a non-renewable period; (iii) a retired employee of the University of Minnesota who has been certified as eligible for continued coverage under the retiree provisions of the University of Minnesota health and dental benefits program; (iv) a surviving spouse of an eligible individual; or (v) an individual who has accepted in writing an offer of employment in a position described in subparagraph (a)(i), but has not yet begun that employment (hereafter collectively referred to as “Eligible Lessee”). In the event of an Assignment to an Eligible Lessee, Lessor shall enter into a new lease with such Eligible Lessee on the same terms and conditions as herein provided, and such Eligible Lessee shall agree to be bound by all the conditions and covenants of the new lease. Upon entering into such new lease, this Lease shall terminate without any further obligations to Lessee hereunder;
7.2 an Assignment to a surviving spouse of an Eligible Lessee or an Assignment pursuant to a Decree of Dissolution or legal separation of a marriage;
7.3 an Assignment for the purpose of allowing an existing family or a surviving domestic partner (as recognized by the Employee Benefits Office of Lessor) of an Eligible Lessee to continue in residence;
7.4 an Assignment to a responsible person for a term equal to the period of academic leave, or equivalent absences on the part of an Eligible Lessee, but in any event not more than two years;
7.5 an Assignment to a child of an Eligible Lessee (one generation);
7.6 an Assignment to a current spouse or a domestic partner (as recognized by the Employee Benefits Office of Lessor) of an Eligible Lessee for estate planning purposes;
7.7 an Assignment to qualifying trust(s) created for estate planning purposes, provided, however, that under the terms of the trust(s), an Eligible Lessee or Approved Assignee will reside in the Leased Premises;
7.8 such other Assignment as the Lessor shall determine (after consultation with any Grove Association) to be just, equitable, or appropriate to avoid a hardship and consistent with the spirit of the limitation on Assignment herein provided;
7.9 an Assignment to a Leasehold Mortgagee pursuant to paragraph 18 hereof.
The decision of the Lessor as to whether or not the requirements of 7.1 through 7.9 above have been met shall be in the sole discretion of the Lessor, and the decision of Lessor shall be controlling on all Grove Lessees. This paragraph is for the benefit of Lessor and Lessee and no third party shall be entitled to any rights hereunder. Any individual who acquires an interest pursuant to 7.1 through 7.9 above shall be deemed an “Approved Assignee.”