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HomeMy WebLinkAboutResolution #1191a RESOLUTION NO. 1191 A RESOLUTION APPROVING A LEASE AGREEMENT BY AND BETWEEN THE CANTON INDUSTRIAL CORPORATION, LANDLORD, AND RON DELOST PAINTING, TENANT. WHEREAS, the Canton Industrial Corporation wishes to lease a portion of its property located generally at 260 East Elm Street, Canton, Illinois to Ron Delost Painting; and, WHEREAS, various loan agreements and other financing documents previously entered into by and between the City of Canton and the Canton Industrial Corporation require the approval of the City of Canton for the leasing or subleasing of any of said premises; and, WHEREAS, the Canton City Council has determined that it is necessary and in the best interest of the City of Canton to consent to the Lease Agreement attached to this Resolution and made a part hereof as Exhibit A. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF CANTON, Fulton County, Illinois, as follows: 1. That the attached Lease Agreement, Exhibit A, be and the same hereby is, approved by the City Council of the City of Canton, Fulton County, Illinois. 2. That this Resolution shall be in full force and effect immediately upon its passage by the City Council of the City of Canton, Fulton County, Illinois. PASSED by the City Council of the City of Canton, Fulton County, Illinois this _1 ~~h day of Bee•ember ' 19-~-~-' upon a roll call vote as follows: AYES: NAYS: ABSENT: Aldermen Chapman, May, Bohlen, Workman, Sarff, Steck, Zilly, Kovachevich. None. None. Pu~afic~~i~n ln~t~a~ct6®r l~Sf do not publish © Publish in pamphlet form only D Publish in a general circulation newspraper I L~ 11 f~ ~__- -- r~r~~ Q~, Date c" : -~ ~,~~', ~, r Donald E. Edwards, Mayor. ATTEST: nc tes, City Clerk. LEASE AGREEMENT THIS LEASE is made and entered into at Canton, Illinois, as of the ~ day of D.te~r»~_, 1986, by and between THE CANTON INDUSTRIAL CORPORATION, an Ohio corporation ("Landlord") and RON DeLOST PAINTING, an Illinois corporation ("Tenant"). W I T N E S S E T H 1. Premises. The Landlord leases unto the Tenant approximately 32,178 square feet of space located in Building Nos. 105, 106 and 108 on land owned by Landlord and located at 260 East Elm Street, Canton, Illinois, which buildings are outlined in red on Annex A attached hereto and made a part hereof (the "Leased Premises"). 2. Term of Lease. The term of this Lease will be for a period of one (1) month, beginning on the date first above written and renewing automatically at the end of each month unless the Lease is terminated in accordance with the terms hereof. Either party may ter- minate this Lease at any time, with or without cause, upon giving thirty (30) days written notice to the other party. 3. Rent. Tenant shall pay to Landlord, without demand, deduction or set-off,, and in addition to any amounts due pursuant to this Lease Agreement, rent in the amount of SIX HUNDRED DOLLARS ($600.00) per month, throughout the term of this Lease, payable in advance on or before the first day of each month during said term; pro- vided, however, that Landlord may increase the rent at any time upon thirty (30) days written notice to Tenant. In the event that this Lease shall commence on a day other than the first day of a month, then Tenant shall, on or prior to the day this Lease actually commences, pay to Landlord a prorated amount of rent for the initial month based on the actual number of days in the month. Rental payments are to be paid to Landlord at Landlord's offices at 260 East Elm Street, or at such other address as Land- lord may designate from time to time. 4. Security Deposit. Landlord herewith acknowledges the receipt of Six Hundred Dollars ($600.00) ("Security Deposit"), which it is to retain as security for the performance of all of the covenants, conditions, and agreements under this Lease. Landlord may, but is not EXHIBIT A, RESOLUTION N0. 1191 obligated to, apply the Security Deposit to rents or other charges in arrears or as damages for Tenant's failure to perform the covenants, conditions and agreements; and Land- lord's right to the possession of the Leased Premises for non-payment of rent or for any other reason shall not in any event be affected by reason of the fact that Landlord holds this security. To the extent Landlord has not ap- plied the Security Deposit to the payment of rent in arrears or the payment of damages suffered by Landlord by reason of Tenant's breach of the covenants, conditions and agreements of this Lease (including, by way of example and not by lim- itation, any damages suffered by Landlord because Tenant has failed to deliver the Leased Premises in the condition required by this Lease), then the Security Deposit shall be returned to Tenant within ten (10) days after termination of this Lease. 5. Use of Premises. The Leased Premises are to be used by the Tenant for painting and sandblasting and for no other purpose without Landlord's prior written consent, which consent Landlord may withhold in its sole discretion. Tenant shall use and occupy the Leased Prem- ises in a careful, safe, prudent and proper manner, and shall not permit or commit any waste of or to the Leased Premises. Tenant acknowledges and agrees to comply with each of the requirements of Landlord's insurance carrier set forth in Annex B attached hereto and made a part hereof. If tenant fails to comply with such requirements, Tenant shall be responsible for the pay~ent of any increase in Landlord's insurance on account thereof and Landlord may immediately terminate this Lease. 6. Alterations and Improvements. Tenant shall have the right to make at its own expense alterations and/or improvements in or to the Leased Premises provided that (i) Tenant first obtains the prior written consent of Landlord, which consent may be withheld in Landlord's sole discretion, (ii) such alterations and improvements do not render the Leased Premises unsafe or damage or diminish the structural strength thereof, and (iii) such alterations or improvements are made in accordance with applicable law, ordinances and building codes and in a good workmanlike manner. At the termination of the Lease, Tenant shall remove any alteration and/or improvement and shall restore the Leased Premises to their original condition at the commencement of this Lease, ordinary wear and tear and loss by insurable casualty excepted. 7. Surrender of Possession. Upon the ex- piration of the term or earlier termination of this Lease, Tenant shall surrender and deliver possession of the Leased Premises to Landlord in as good condition and repair as at -2- the commencement of the term, excepting only ordinary wear and tear and loss by insurable casualty. If any of Ten- ant's furniture, equipment or other property kept in or about the Leased Premises shall not have been removed prior to the surrender and delivery of possession of the Leased Premises., such furniture, equipment or other property shall, at the option of Landlord, be deemed abandoned by Tenant and ownership of such furniture, equipment or other prop- erty shall, at the option of Landlord, pass to Landlord without payment, notice or credit by Landlord to Tenant. 8. Extention of Steam Line. Landlord agrees to undertake to connect a steam line to the Leased Premises. Tenant agrees to pay to Landlord, as additional rent, Two Thousand Dollars ($2,000.00) upon completion of this improvement. 9. Repairs and Maintenance. (a) Landlord, at its own cost and ex- pense, shall repair damages or defects to the roof, structure, parking areas, sidewalks, sewer and water lines, and other conduits from the lot line to the Leased Premises, and shall pay for upkeep of the e:~terior of the Leased Premises, where the damage has not been caused by reason of Tenant's negligence. Landlord shall not be liable for any damage done or occasioned by or from plumbing, gas, water, steam or other pipes or sewage or the bursting, leaking or running of any cistern, tank, wash stand, water closet or waste pipe, above, upon or about the Leased Prem- ises, nor for damage occasioned by water, snow or ice being upon or coming through the roof or otherwise. (b) Tenant, during the term of this Lease, shall at Tenant's expense keep the inte- rior of the Leased Premises in good condition and repair. Tenant shall at its own cost and expense be responsible for any and all glass repair and replacement. Tenant shall and does indemnify Landlord from any claim, demand, cause of action, mechanic's liens or other liens as a result of Tenant's repairs required herein. Ten- ant shall keep all rubbish and debris safely and neatly stored in metal containers inside of the Leased Premises. 10. Compliance With Laws. Tenant will keep the Leased Premises in a clean, safe and healthy condition -3- according to all applicable laws, ordinances, regulations or other governmental requirements including, without limi- tation, those of the United States Environmental Protection Agency and any and all environmental departments or agencies of the State of Illinois, and the direction of the proper public officials acting in accordance with the laws, ordi- nances, regulations or other governmental requirements at Tenant's own expense, and will not let rubbish, garbage or trash accumulate. Tenant will use and occupy the Leased Premises in a careful, safe and proper manner and will, at Tenant's expense, comply with the direction of the proper public officials as to the use, repair and maintenance of such portions~of the Leased Premises as Tenant is required by this Lease to repair and maintain. Without limiting the first paragraph of this Section, Tenant shall be responsible, at its own cost and expense, for the handling, treatment and disposal of any hazardous or toxic materials that Tenant, its employees, agents, invitees or contractors brings onto or in the Leased Premises or on any adjoining property owned by Land- lord, or that are created, manuf actured, produced or other- wise arise out of the operations or activities of Tenant, its employees, agents, invitees or contractors on or in the Leased Premises or on any adjoining property owned by Land- lord. Tenant shall indemnify, defend and hold harmless Landlord from and against any and all losses, claims, lia- bilities, damages, costs, fines and expenses of whatever kind and nature caused by such hazardous or toxic materials on or in the Leased Premises. The provisions of this para- graph shall survive the termination or expiration of this Lease and the surrender of the Leased Premises by Tenant. 11. Indemnification. Tenant will indemnify, defend, and hold harmless Landlord from and against any and all claims, demands, actions, damages, liability, cost and expense whatsoever, including, without limitation, at- torneys' fees arising out of or connected with the use or occupancy by Tenant of the Leased Premises, or occasioned wholly or in part by any act or omission of Tenant, or Tenant's officers, agents, employees, invitees or contrac- tors. 12. Landlord's Access. Landlord may have free access to the Leased Premises at all reasonable times for the purpose of examining the same or to make any alter- ations or repairs that Landlord may deem necessary to the safety or preservation of the Leased Premises, and also for the purpose of exhibiting the Leased Premises and putting -4- up "T~o Rent" or "For Sale" notices, which notices shall not be removed, obliterated or hidden by Tenant. 13. Tenant's Access. The Leased Premises are located within an area enclosed by a fence, which fence is highlighted on Annex A (the "Enclosed Area"). Tenant, its employees, agents, invitees and contractors will enter the Enclosed Area by foot and will sign in at the front gate located on East Elm Street, and will, except to the extent necessary to gain access to the Leased Premises, remain on tre Leased Premises while within the Enclosed area. Tenant, its employees, agents, invitees and contrac- tors will park all vehicles outside of the Enclosed Area; provided, however, that one truck at a time will be per- mitted to enter the Enclosed Area to make pick-ups and deliveries at the Leased Premises. 14. Insurance. Tenant shall carry adequate property damage insurance against loss or damage to any of Tenant's trade fixtures or personal property located within the Leased Premises. Tenant acknowledges that Landlord shall not maintain or procure insurance against loss or damage to any of Tenant's trade fixtures or personal prop- erty located within the Leased Premises. Tenant shall bear all risk of loss or damage to such trade fixtures or per- sonal property. Tenant agrees to carry at its own expense throughout the term of this Lease public liability insurance covering the Leased Premises and Tenant's use thereof in a form satisfactory to Landlord, with a minimum of $500,000.00 on account of bodily injuries to or death of one or more than one person and property damage as a result of any oc- currence, and to deposit said policy or policies (or certif- icates thereof) with Landlord prior to the date of any use or occupancy of the Premises by Tenant. Said policy or pol- icies shall name Landlord and Tenant as insureds and shall bear endorsements to the effect that the insurer agrees to notify Landlord not less than ten (10) days in advance of any modification or cancellation thereof. Should Tenant fail to carry such public liability insurance, Landlord may at its option (but shall not be required so to do) cause public liability insurance as aforesaid to be issued, and in such event Tenant agrees to pay the premium for such insurance promptly upon Landlord's demand. 15. Utilities. Landlord agrees to pay for all utilities used or consumed on the Leased Premises except that Tenant will be charged Three Dollars ($3.00) per hour for Tenant's use of heat. 16. Assignment and Subletting. Tenant shall not, without the prior written consent of Landlord, -5- (a) assign, convey, mortgage, encumber or otherwise trans- fer this Lease or any interest under this Lease; (b) allow any transfer hereof or any lien upon Tenant's interest under this Lease by operation of law or otherwise; (c) sublet the Leased Premises or any part of the Leased Premises; or (d) permit the use or occupancy of the Leased Premises or any part of the Leased Premises by any person or other entity other than Tenant. Landlord may decline in Landlord's sole discretion to give its consent. 17. Si ns. Tenant covenants and agrees not to permit or cause to be placed on the outside or in- side of or otherwise so as to be visible from outside the Leased Premises, any signs, notices, or other media of advertising, except as may be installed or provided by Landlord or approved in advance by Landlord in writing. 18. Subordination. Landlord shall have the right, at any time, and from time to time, to mortgage the Leased Premises, the land upon which the Building is situ- ated and any underlying leasehold estate, and this Lease and Tenant's interest hereunder shall be subordinate, in all respects, to any such mortgage or mortgages. Tenant shall, and hereby agrees to, execute any appropriate in- strument or release subordinating the within Lease in favor of any such mortgage or mortgages, or any renewals, exten- sions, modifications or replacements thereof. In addition, Landlord may assign this Lease, or the rents reserved here- under, or both, in Lessor's discretion, as additional secu- rity for any such mortgage or otherwise. 19. Default by Tenant. If the Tenant should fail to pay any installment of rent when due, or should fail to perform or observe any of the covenants, agreements or obligations made or assumed by Tenant under the terms of this Lease within five (5) days following written notice from Landlord setting forth the default, then, in any of such events, this Lease may be terminated at the option of Landlord, and Landlord may immediately re-enter and repossess the Leased Premises and remove from the Leased Premises all goods and chattels belonging to Tenant, and expel Tenant and all other persons who may be in possession of the Leased Premises without further demand or notice. Failure on the part of Landlord to exercise its option to terminate this Lease upon any default shall not preclude it from exercising that option in the event of any subsequent default. Landlord may exercise any other remedy available at law or in equity. 20. Damage or Destruction. In the event of any damage to or destruction of the Leased Premises by fire -6- or other casualty beyond the control of Tenant, as a result of which the Leased Premises are made untenantable, Land- lord may elect (a) to terminate this Lease as of the date of such damage or destruction by written notice to Tenant within thirty (30) days thereafter, or (b) to repair and restore the Leased Premises with reasonable dispatch. If Landlord elects to repair and restore the Leased Premises, this Lease shall not terminate, but rent shall be abated entirely in case the entire Leased Premises are untenant- able, and proportionate to the portion thereof rendered untenantable in case only a part thereof is untenantable, until the same shall be restored to a tenantable condition. 21. Eminent Domain. In the event that the Leased Premises or any part of the Leased Premises shall be appropriated or taken by any duly constituted governmental authority for public or quasi-public use or purposes, or shall be condemned by eminent domain under authority of any law, statute, ordinance, rule or regulation of any duly constituted governmental authority, this Lease and the rights of the parties under this Lease shall terminate as of the date when possession shall be so taken, without ap- portionment between Landlord and Tenant of the award made for property taken. In consideration of the making of this Lease, Landlord and Tenant agree that Landlord alone shall be entitled to claim and to receive all compensation and damages for or arising out of such taking or condemnation, without deduction from the amount of the award for or on account of any right, title, interest or estate of Tenant in and to the Leased Premises. 22. Bankruptcy. If Tenant voluntarily files a petition in bankruptcy or a petition or answer seeking a reorganization or arrangement under any federal, state or local law or statute, or makes or attempts to make an assignment for the benefit of its creditors, or finally is adjudicated a bankrupt or insolvent or suffers an order entered approving a petition filed against Tenant seeking reorganization of Tenant under any federal, state or local law or statute, or if Tenant suffers an involuntary peti- tion in bankruptcy or similar pleading seeking any reorgani- zation or arrangement of Tenant relating to bankruptcy or insolvency under any federal, state or local law or statute to be filed against it and remain undismissed for a period of thirty (30) days, or has a receiver or trustee appointed for all or substantially all of its business or assets and the receiver or trustee is not removed within thirty (30) days after appointment, Landlord shall have the right to terminate this Lease upon giving Tenant written notice of its intention to do so. -7- 23. Holding Over. If Tenant shall remain in possession of all or any part of the Leased Premises after the expiration of the term of this Lease, then Tenant shall be deemed a tenant of the Leased Premises from month- to-month, subject to all the terms and conditions of the within Lease except for rent which shall, unless otherwise specified by state law, be one hundred twenty percent (120%) of the rent due and payable hereunder during the month in which the termination of this Lease occurred. Nothing herein contained may be deemed a consent to or approval of, or to excuse, an unauthorized holding over by Tenant. 24. Waiver of Breach. No waiver of any condition or any legal right or remedy shall be implied by the failure to declare a forfeiture or for any other rea- son, and no waiver of any condition or covenant shall be valid unless it is in writing, signed by Landlord. No waiver by Landlord of any covenant or condition shall con- stitute a waiver of any further breach of the same condi- tion or covenant or any other condition or covenant. 25. Quiet Enjoyment. Landlord covenants and agrees, subject to the provisions of this Lease that if Tenant shall promptly and faithfully pay and perform all the obligations, covenants and agreements on Tenant's part to be paid and performed under. this Lease, that Tenant shall have the peaceable and quiet enjoyment and possession of the Leased Premises for and during the term hereof. Sub- ject, however, to (i) utility easements, both recorded and unrecorded, (ii) all applicable zoning ordinances and build- ing codes, (iii) all applicable laws, rules, regulations and directives of governmental entities, agencies and offi- cials having jurisdiction over the Premises, and (iv) such restrictions, conditions, easements and other matters, if any, as are now of record. 26. Memorandum of Lease. This Lease shall not be recorded but, in lieu thereof, the parties hereto shall upon the request of either party, execute and deliver a so-called short form or memorandum of lease containing the statutory requirements and such additional provisions as set forth herein which Landlord and Tenant agree shall be reflected of record. The requesting party shall have the right to file the memorandum of lease in the appropri- ate public records, and the recording expenses shall be paid by such requesting party. 27. Notices. Any notice, request or demand required or appropriate under this Lease shall be deemed to -8- be duly given or served if in writing and IF TO LESSEE, per- sonally delivered or mail by certified or registered mail, return receipt requested, postage prepaid, addressed to Ten- ant at the Leased Premises, and IF TO LESSOR, mailed by cer- tified or registered mail, return receipt requested, postage prepaid, .addressed to Landlord at the address where the last previous rental payment under this Lease was paid or at such other address as Landlord may designate from time to time. 28. Landlord's Liability. Tenant shall look solely to the estate and property of the Landlord in the real property and improvements comprising the Leased Premises for the collection of any judgment or other judi- cial process requiring the payment of money by Landlord in the event of any default or breach by Landlord with respect to any of the terms, covenants, and conditions of this Lease to be observed or performed by Landlord. No other property or assets of Landlord shall be subject to levy, execution or other enforcement procedures for the satis- faction of Tenant's remedies. 29. Miscellaneous. (a) This Lease, and all the provisions of this Lease, shall not be, or be deemed to be, amended or modified, terminated or cancelled, or waived or released by Landlord, other than in strict compliance with the provisions of this Lease, or unless such amendment, modification, termination, cancellation, waiver or release is set forth in writing and'signed by Landlord; notwithstanding Landlord's receipt or acceptance or acquiescence of or to any money paid by or on behalf of Tenant or any act or failure to act on the part of Tenant, or Tenant's officers, agents, employees or contractors. (b) All the covenants, terms, agree- ments and provisions contained in this Lease are and shall be deemed to be covenants running with the land, and shall be binding upon and inure to the benefit of the respective heirs, executors, administrators, personal representatives, succes- sors and permitted assigns of Landlord and Ten- ant, and of all successive lessors and lessees hereunder. (c) Landlord may sell the Leased Prem- ises, assign this Lease, and may grant a mortgage -9- on or otherwise encumber the leasehold interest of Tenant hereunder without notice to, or the consent of Tenant. From and after the date of such sale or assignment, Landlord shall have no further liability or obligation hereunder and the Tenant hereby agrees to attorn to and to recog- nize such purchaser or assignee as the Landlord under this Lease. (d) In the event any provision of this Lease, or the application thereof to any person or circumstances, shall, for any reason and to any extent, be declared or held to be invalid or unenforceable, the remainder of this Lease and the application of such provision to such person or circumstances or to any other person or cir- cumstances shall not be affected thereby, but shall be enforced to the fullest extent, or to the full lesser extent, permitted by law. (e) The headings and captions of the sections and paragraphs of this Lease are for convenience only, and shall not be interpreted as altering, affecting, modifying or aiding in the construction of this Lease or any of the provi- sions of this Lease. (f) This Lease is being delivered and is intended to be performed in the State of Illinois, and shall be construed and enforced in accordance with the laws of the State of Illinois. IN WITNESS WHEREOF, the parties have executed this Lease as of the day and year first above written. Signed and acknowledged in the presence of: THE CANTON INDUSTRIAL CORPORATION (LANDLORD) Q~ ~~.~eo..e, ~~ ~/. r1 ~ ~',Po,.O By : C~ Il Liza o ey, President RON DeLOST PAINTING (TENANT) By: Ron DeLost, State of Illinois, County of Fulton The foregoing instrument was acknowledged before me this ~~ day of Dt~~~,.„ 6Nr 1986, by Ron DeLost, the Uw,~ ~~ of Ron DeLost Painting, an Illinois corporation, on behalf of the corporation. C'~ ~n ~ Title: /' ~ ' State of Illinois, County of Fulton The foregoing instrument was acknowledged before me this L~ day of ,C~~-ten, bNr 1986, by Liza Foley, the President of The Canton Industrial Corporation, an Ohio corporation, on behalf of the corporation. `yh . ~~,i Title: . ' . . ~ I __._J •a~i• ..~~r arr~ '~~~ I r i J~ • .s s+r•~ Y sf .wrw~r ~~~~_~ I 1 i ! s 9; ~z~ N .~~ .. * ~~ ! .~, 1 ~ Y ' I ~t I .I j..~ ~• 7wV ..__..~ I (; : ! I-' ; .. , i e i~ I; '' ~V ..II'7 • ~~ -."""_._ i _ ,, ~~ f I r ! ~~ i ~~ j j 't l ;I ! ~ ,,, a 3 r m .~~,. Ui~awOi _. .~ :: - i ~ ~- I l 1 j E ~ ~ ~ ti< i x ' ~ . ~! I{~~ i I' ~I ~ ~~ ~ -.. ~ ,- .~r.. - - ; ! ~ Q '~~ av. ~- I T I 1 _ ._ 1 I' ~_~ ' _. -.. Cs S"~ 1 I ~ fl '1 11 1 .~ S " 'T'AI _- 1 s pp~ I I I i LJ `~? ~ . ~ .. , 1 I I 1 .. a} I i 7[ ~ •- 1. ~ 1 1 0 , ~ ~ _ -t- ; , I ! 1 ~ ...~.. I 7 ~...._r._.. ; 111 + ~ ~ ^ ~ t ~-. •r.;~.. i t r ~ . ~~: N l . ., lip ~ ~ ;~ ..~. __. ~ ~ ~ ~ f :~ r~'r` •~' --- t - -~ ~ 2 V f ~ h ~ ~ 1 _ ! ~ - - -tom. «-r~ ~ j .1 • i Y l9 ~ 1n ~ " • ~• ' . . 1; ....t.~..v ~ - ~ . ~... . 11 ; ~ ... S ~ ~ 1 .- of u~7 •~v~ ~ 1 -.. .. ...._._ (~- Annex B SAFETY STANDARDS OF ST. PAUL INSURANCE COMPANY St. Paul Insurance Company will accept the occupancy of Ron DeLost Painting (the "Tenant") pursuant to this Lease Agreement only if the following matters can be established or complied with: 1. Tenant shall maintain all flammables outside or in a separate room in containers approved by St. Paul Insurance Company; 2. Tenant shall install a dust collecting system within the Leased Premises to control dust from sandblasting; 3. Tenant shall install explosion proof wiring and lighting where painting is done; 4. Tenant shall establish a daily cleanup pro- cedure to be followed at the end of each work day; and 5. Tenant shall loc th inting a nd- ~-- blasting o tions that of building 108 is wet rinkle ~~ ~ ~ ~~8 Hof .u5 Pct . .