HomeMy WebLinkAbout#5287 lease agreement with central cable contractors inc RESOLUTION#5287
A RESOLUTION AUTHORIZING A LEASE AGREEMENT WITH
CENTRAL CABLE CONTRACTORS, INC.
WHEREAS, the Section 11-76-1 of the Illinois Municipal Code provides, in part: "Any
city or village incorporated under any general or special law which acquires or holds any real estate
for any purpose whatsoever, except real estate granted to a municipality as commons by a grant
which has been confirmed by the government of the United States, has the power to lease the real
estate for any term not exceeding 99 years, and to convey the real estate when, in the opinion of
the corporate authorities, the real estate is no longer necessary, appropriate, required for the use
of, profitable to, or for the best interests of the city or village. This power shall be exercised by an
ordinance passed by three-fourths of the corporate authorities of the city or village then holding
office, at any regular meeting or at any special meeting called for that purpose. However, the
corporate authorities have the power to authorize any municipal officer to make leases for terms
not exceeding 2 years in such manner as they may determine." 65 ILCS 5/11-76-1 (West 2020);
WHEREAS,the City of Canton owns property directly south of the intersection of Third
Avenue and Maple Street, near the former International Harvester site (the "City's Property");
WHEREAS, at the time of this Resolutoin, the formal legal description is being finalized
by the City Engineer for the City's Property;
WHEREAS, Central Cable Contractors, Inc., a Wisconsin corporation, desires the lease
some portion of the City's Property for the purposes of storing its equipment, materials and other
supplies utilized in the installation of fiber optic cable;
WHEREAS,the City Council and Mayor of the City of Canton have determined that it is
in the best interest of the City of Canton that it enter into a lease agreement with Central Cable
Contractors, Inc. for the purposes of it storing its equipment,material, and supplies.
NOW, THEREFORE,BE IT ORDAINED by the City Council of the City of Canton,
Fulton County, Illinois, as follows:
1. The City Council finds as facts the recitals hereinabove set forth;
2. The Lease Agreement attached hereto as "Exhibit A" is APPROVED, subject to final
revisions by the Mayor and/or City Attorney;
3. The Mayor is hereby authorized to sign and approve, in his discretion, a Lease
Agreement with Central Cable Contractors, Inc. for a term not to exceed two (2)years;
and
4. This resolution shall be in full force and effect immediately upon the passage hereof.
PASSED THIS 17th day of November, 2020.
AYES: Aldermen Quin Mayhew, John Lovell, Craig West, Angela Hale, Jeff Fritz,
Angela Lingenfelter, Andra Chamberlin
NAYES: None
ABSENT: Alderman Justin Nelson
APPROVED THIS 17th day of November, 2020.
APPROVED: enX � � X�
t A. McDo , Mayor
ATT'
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WA lee — _
Di. : Pavley-Rock, City Clerk
LEASE AGREEMENT
This LEASE AGREEMENT, dated as of December 1, 2020 (this "Lease"), is made
between the CITY OF CANTON, (hereinafter "City" or "Lessor") an Illinois municipal
corporation (hereinafter the "City" or "Lessor") and CENTRAL CABLE CONTRACTORS,
INC.,a Wisconsin corporation (hereinafter"Central"or"Lessee").
RECITALS:
WHEREAS, the City has property located on the south side of the intersection of Third
Avenue and Maple Street, known as the southern part of the former International Harvester site
where the City stores various dirt, rock and other materials;
WHEREAS, Central is installing cable and fiber in the Fulton County area and has
sought a place to store their equipment and materials during installation;
WHEREAS, Central desires to enter into a lease agreement with the City for the
property that is to the immediate south of the Third Avenue/Maple Street intersection located on
the former International Harvester site to provide an area for Central to store equipment and
materials.
WHEREAS, the City's best interests are served by entering into a lease agreement with
Central that would allow Central to lease City-owned property to the south of Third
Avenue/Maple Street;
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
(the "parties")agree as follows:
Section 1. Lease: Upon the Lessee making proper payment to the Lessor in accordance with
this agreement, lessee will be entitled to full use of the property set forth below. Lessee
acknowledges that Lessor will also still be using Leased Premises to store its materials as
described above.
(a) Leased Premises: City-owned property, formerly part of the International
Harvester property, that is located at the south side of the intersection of Third Avenue and
Maple Street,which is legally described as follows:
A part of the Northeast Quarter of Section 34, Township 7 North, Range 4 East of
the Fourth Principal Meridian, Fulton County, Illinois, further described as
follows:
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Being a part of a 28.892 acre tract shown on a Plat of Survey recorded as
Document No. 0927160, Slide 425, Fulton County Recorder's Office, said tract
being in part of the Southeast Quarter of Section 27 and part of the Northeast
Quarter of Section 34 all in Township 7 North, Range 4 East of the Fourth
Principal Meridian, Fulton County, Illinois:
Commencing at an iron rod found marking the southeast corner of said 28.892
acre tract, said corner also being the intersection of the west right of way line of
South Fourth Avenue and the north right of way line of the Toledo, Peoria &
Western Railway Corp., thence North 0°-45'-23"East(bearings based on said Plat
of Survey) along the east line of said 28.892 acre tract, said east line also being
the west right of way line of South Fourth Avenue, 100.02 feet to an iron rod
marking the northeast corner of a 1.292 acre tract shown on a Plat of Survey
recorded as Document No. 1986435, Slide 556, Fulton County Recorder's Office,
said corner also being the Point of Beginning of the Parcel to be described:
From the Point of Beginning, thence South 89°-38'-22" West along the north line
of said 1.292 acre tract 298.49 feet to an iron rod; thence North 0°-20'-40" West
continuing along said north line 23.77 feet to an iron rod; thence South 89°-35'-
37" West continuing along said north line 213.62 feet to an iron rod at the
northwest corner of said L292 acre tract, said northwest corner also being on the
west line of said 28.892 acre tract and on the east right of way line of a 20 foot
wide alley; thence North 0°-32'-28" East along the west line of said 28.892 acre
tract 309.11 feet to the south corner of Maple Street right of way shown on Plat of
Survey recorded May 28, 2009 as Document No, 09-27239 in Slide 426; thence
North 75°-51'-29" East along the southerly right of way line of said Maple Street
106.15 feet; thence continuing along said southerly right of way line along a curve
to the right an arc distance of 82.29 feet, said curve having a radius of 267.00 and
a chord bearing North 81°-41'-15" East 81.96 feet; thence South 89°-29'-00" East
continuing along said southerly right of way line 331.68 feet to an iron rod on said
west right of way line of said South Fourth Avenue; thence South 0°-45'-23"West
along said west right of way line 369.66 feet to the Point of Beginning.
(b) Lease Price; Lessee shall pay Six Hundred and No/100 Dollars ($600.00) per
month ("Base Rent'), with payment due by the 1st of every month. If payment is not made by
the 5m of each month, a late fee of$25 per day will be charged to Lessee. If Lessee retains
possession of the Leased Premises after the expiration of the Tern or termination of this Lease,
Lessee shall pay rent during such holding over at one hundred fifty percent (150%) of the Base
Rent in effect immediately preceding such holding over on a monthly basis for each month or
partial month that Lessee remains in possession, plus any other obligations of Lessee hereunder.
(c) Lease Term: This lease will be in effect for from December 1, 2020 through
November 30, 2021.
(d) Use. The Leased Premises shall be used by Lessee during the term of this Lease,
solely for the purpose of storing its equipment and,inventory. tinder no circumstances shall Lessee
sell, give or distribute any alcoholic beverages on the Leased Premises, without the written consent
of LANDLORD and/or without the existence of a policy of Dram Shop Insurance coverage
acceptable to the Lessor that names Lessor as an insured therein for the maximum amount of
liability possible under the Illinois Dram Shop Act. Lessee shall not introduce or allow the use or
possession of any hazardous materials prohibited by any local, state or federal laws, rules or
regulations on the Leased Premises during its use and occupancy of the Leased Premises under the
terms and conditions of this Lease. In the event that any hazardous materials are introduced by the
Lessee onto the Leased Premises during Lessee's use and occupancy, Lessee agrees to complete the
necessary clean-up of any such hazardous materials at Lessee's sole expense as necessary to satisfy
any state, federal or local regulator having authority over the contamination in question and Lessee
shall hold hanntess and indemnify the Lessor from any and all claims, causes of action, injuries,
damages, or contamination caused by introducing or allowing the use or possession of hazardous
materials on the Leased Premises.
Section 2. Lessee Representations and Warranties.
(a) As of the date hereof, the Lessee hereby represents and warrants to Lessor that:
(i) Organization. Lessee is a Wisconsin corporation, duly organized, validly
existing and in good standing under the laws of the State of Wisconsin.
(ii) Authority and Validity. Lessee has all requisite corporate power and
authority to execute, deliver and perform its obligations under this
Agreement and to consummate the transactions contemplated hereby. The
execution, delivery and performance by Lessee of this Agreement and the
consummation of the transactions contemplated hereby have been duly
and validly authorized by all necessary action required on the part of
Lessee, and no other proceedings on the part of Lessee are necessary to
authorize this Agreement or for Lessee to perform its obligations under
this Agreement. This Agreement constitutes the lawful, valid and legally
binding obligation of Lessee, enforceable in accordance with its terms,
except as the same may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors' rights generally and general equitable principles regardless of
whether such enforceability is considered in a proceeding at law or in
equity.
(iii) No Violation or Conflict. The execution, delivery and performance of this
Agreement and the transactions contemplated hereby do not (A)violate,
conflict with or result in the breach of any provision of the organizational
documents of Lessee, (B) as of the date of this Agreement and conflict
with or violate any law or Governmental Order applicable to Lessee or any
of its assets,properties or businesses.
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(iv) Lien. Lessee will not, and will not create, assume or suffer to exist any
Lien on the Leased Premises.
Section 3. Lessor Reoresentations. Warranties and Covenants.
As of the date hereof, the Lessee hereby represents and warrants to Lessor that:
(i) Organization. The City is an Illinois Municipal Corporation duly
organized and existing under the laws of the State of Illinois.
(ii) Authority and Validity. The City is authorized to lease the Leased
Premises pursuant to 65 ILCS 5/11-76-1. This Agreement constitutes the
lawful, valid and legally binding obligation of Lessor, enforceable in
accordance with its terms,
(iii) No Violation or Conflict. The execution, delivery and performance of this
Agreement and the transactions contemplated hereby do not (A)violate,
conflict with or result in the breach of any provision of the organizational
documents of Lessor, (B)as of the date of this Agreement, conflict with or
violate any law or Governmental Order applicable to Lessor or any of its
assets, properties or municipal businesses, or (C)as of the date of this
Agreement, conflict with, result in any breach of, constitute a default (or
event that with the giving of notice or lapse of time, or both, would
become a default)under, require any consent under, or give to others any
rights of termination, amendment, acceleration, suspension, revocation or
cancellation of, or result in the creation of any Lien on any of the assets or
properties of Lessor, pursuant to, any note, bond, mortgage or indenture,
contract, agreement, lease, sublease, license, permit, franchise or other
instrument or arrangement to which Seller is a party.
(iv) AS I.S. LESSEE ACKNOWLEDGES AND AGREES THAT EXCEPT
AS EXPRESSLY SET FORTH IN THIS LEASE, LESSOR MAKES NO
REPRESENTATIONS OR WARRANTIES, EXPRESS OR IMPLIED,
AS TO THE LEASED PREMISES. TENANT ACKNOWLEDGES
THAT IT IS LEASING THE LEASED PREMISES IN ITS "AS-IS"
CONDITION.
Section 4: Assitrunent;Transfer;Maintenance.
(a) Assignment by Lessee. Lessee shall not assign, delegate, transfer, sell or
otherwise dispose of(collectively, "Transfer"), in whole or in part, any of its rights or obligations
hereunder, to the Leased Premises to any Person or Entity (a "Transferee") without the prior
written consent of Lessor.
(b) Maintenance. Lessee shall maintain the Leased Premises in good condition and
shall maintain and repair the Leased Premises if necessary. Upon expiration or termination of
this Lease, Lessee shall vacate and leave the Leased Premises in the same condition as the
beginning of this Lease, normal wear and tear excepted.
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(c) Lessor's Access to Premises: Except in the case of an emergency where the
Lessor can have access at any time without notice, Landlord may, at reasonable times during
business hours, and on no less than 24-hours advance notice, which notice shall be in writing,
enter upon the Premises, or any part thereof, for the purpose of ascertaining the condition of the
Leased Premises or whether Lessee is observing and performing its obligations under this Lease.
Lessor shall also have the right to enter upon the Premises to make any necessary repairs thereto
and to perform its work as required hereunder or any work necessary by reason of Lessee's
failure to make repairs as required hereunder. Nothing contained herein shall impose or imply
any duty on the part of Lessor to make any such repairs or perform any such work not
specifically required hereunder.
(d) Removal of Lessee's Equipment: Lessee may, at any time during the Term and
upon termination of the Lease or expiration of the Term shall, remove all of Lessee's trade
fixtures, equipment, supplies, inventory, or other personal property ("Lessee's Equipment") and
repair any damage to the Premises caused by such removal, and all Tenant Equipment not so
removed may be removed by Landlord, at Lessee's cost and expense, or may be treated by
Lessor as abandoned property and part of the Premises. Lessee shall pay to Lessor on demand
the reasonable cost incurred by Lessor to repair any damage to the Leased Premises resulting
from Lessor's removal of Lessee's Equipment.
Section 5: Insurance.
(a) Lessee shall provide, annually, with payment of Lease Price, evidence of general
liability on the Leased Premises the City of Canton named as an additional insured, with a
general liability aggregate limit of at least one million dollars ($1,000,000.00) which shall be in
effect, at all times,during the term of this lease.
Section 6: Costs and Expenses;Payments.
(a) Except as provided herein to the contrary, each party shall pay its own costs and
expenses incurred in connection with the exercise of the Lease Agreement.
(b) Tenant shall pay all general real estate taxes and special assessments which are
assessed on the Leased Premises during the term of this Lease,
(c) Lessee shall pay all utilities associated with the use and/or occupancy of the Leased
Premises including, without limitation, all electricity, water, natural gas, telephone, Interact
service, anti cable or satellite TV. Lessee shall obtain all such utility services in its own name and
pay such deposits as may be required. No utility service shall be obtained by the Lessee in the
City's name under any circumstances, without the City's written consent.
Section 7: Termination of Agreement.
(a) This Agreement shall terminate and be of no value upon the earlier to occur of(i)
thirty (30)days' written notice from the Lessor to the Lessee or(ii)the mutual written consent of
all of the parties hereto. In the event Lessor elects to terminate under this Section 6(a),the Lessee
shall vacate the Leased Premises within thirty (30) days and the Lessor shall have no further
obligations under this Lease.
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(b) This Lease shall be terminated upon Lessee being adjudged insolvent, bankrupt or
upon Lessee's making an assigrunent for the benefit of its creditors. Lessor shall, nevertheless, be
able to be entitled to recover or make a claim in bankruptcy for all such amounts due and owing
under the Lease through and including the date of termination.
(c) Lessor may also terminate this Lease upon a default by the Lessee as hereinafter
provided.
Section 8: Default It is expressly agreed that time of payment and the time of performance of
the obligations of the Lessee hereunder are of the essence of this Lease.
(a) If Lessee shall fail to pay rent or any other payment obligation due and owing to the
Lessor promptly on the date when same shall become due and payable hereunder and shall
continue in default for a period of five (5) days after written notice of such failure by the Lessor
sent to the Lessee by Certified U.S. Mail, Return Receipt Requested, then, in such event and is
often as such default may occur, Lessor may declare a default hereunder by written notice of such
default to the Lessee.
(b) If Lessee shall fail to promptly keep and perform any other covenants of this Lease
(other than covenants requiring a payment to the Lessor) and shall continue in default for a period
of thirty (30) days after written notice thereof by the Lessor sent to the Lessee by Certified U.S.
Mail, Return Receipt Requested, then and in such event, and as often as sucl.t event shall occur,
Lessor may declare a default hereunder by written notice of such default to the Lessee.
(c) If Lessee fails to vacate at the end of the Lease Term (Section 1(c)) or Lease has
been transferred other than in accordance with the provisions in Section 4, then Lessor may
immediately declare a default hereunder by written notice of such default to the Lessee.
(d) Upon a declaration of default as hereinabove set forth and the Lessee's failure to
cure such default within the times limited herein (as applicable) or by such notice is given herein,
Lessor may terminate this Lease and take possession of the Leased Property without further notice
to Lessee, change the locks on the doors and entryways to the Leased Property, remove Lessee's
personal property to a storage area at Lessee's sole expense and re-let the Leased Property to
another Lessee or Lessees without such action on the Lessor's part being deemed an acceptance or
surrender of this Lease in any way terminating Lessor's liability to the Lessor hereunder for all
amounts and obligations due and owing to the Lessor. Any and all amounts received by the Lessor
front a lease to a substitute Lessee shall he applied against any liability of the Lessee to the Lessor
for any and all amounts due and owing to the Lessor hereunder.
(e) Lessee shall remain liable for all payments which it is obligated to make hereunder
and all other expenses and charges incident to the Lease and/or such repossession or reletting,
including, but not limited to,reasonable attorney's fees,court costs, expert witness expenses and all
other reasonable costs of suit thereon, less the amounts realized from any such reletting.
(f) Lessor shall also have the right and option, at its election, to terminate and cancel
this Lease together with all rights of the Lessee to possess, use or occupy the Leased Property, or
any part thereof, in the event the Lessee's defaults are not cured in accordance with this paragraph,
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In the event of such cancellation, Lessor shall not be required to lease the Leased Property for the
account of the Lessee and Lessee shall have no further liability for rent accruing on and after the
date possession is delivered to the Lessor. However, Lessee shall remain liable to Lessor for all
sums clue and owing to the Lessor which have accrued on or before the date possession was
delivered to the Lessor.
(g) Lessor is also granted the right by Lessee to dispose of Lessee's personal property
removed from the premises upon written notice to the Lessee of the date and time of said sale by
certified US mail,return receipt requested. Lessor is granted the right by Lessee to apply the funds
from said sale first to the expenses of sale and thereafter to any other sums due and owing to the
Lessor hereunder.
(h) The failure of the Lessor to insist upon strict performance of any one or more
occasion shall not be deemed a waiver of the Lessor's right to demand strict
performance thereafter of each and every covenant contained in this Lease.
Section 9: Notices.
(a) Any notice, request, demand, waiver, consent, approval or other communication
which is required or permitted to be given to any party shall be in writing and shall be deemed
given only if delivered (or delivery is rejected) to the party personally or by next Business Day
delivery by a nationally recognized courier service, or by registered or certified mail (return
receipt requested), with postage and registration or certification fees thereon prepaid, addressed
to the party at its address set forth below:
Lessor:
City of Canton
2 North Main Street
Canton,Illinois 61520
Attention: Mayor
with a copy to:
City of Canton
2 North Main Street
Canton, Illinois 61520
Attention: City Attorney
Lessee:
Central Cable Contractors, Inc.
Attention: Dale Jansen
W7435 County road AW
Waupun, Wl 53963-9706
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or to such other address as such party may from time to time specify by notice given in the
manner provided herein to each other party entitled to receive notice hereunder.
Section 10: Governing;Law:Consent to Jurisdiction.
(a) This Agreement shall be governed by, and construed in accordance with, the laws
of the State of Illinois.
(h) This Lease has been made, executed and delivered in Canton, Illinois. In the
event that any party hereto commences any suit or other legal or administrative proceeding to
enforce any of the terms or conditions of this agreement, each party hereby agrees that the
Circuit Court of the Ninth Judicial Circuit, Fulton County, Illinois, shall be the sole and
exclusive venue and subject matter jurisdiction for the resolution of any disputes hereunder.
Section 11: Waiver of Juiy Trial.
(a) EACH OF TILE PARTIES HERETO IRREVOCABLY WAIVES ALL
RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM
(WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF
OR RELATING TO THIS AGREEMENT.
Section l2: Entire Agreement.
(a) This Agreement constitutes the entire agreement between the parties with respect
to the matters covered hereby and supersedes all prior agreements and understanding with
respect to such matters between the parties.
Section 13: Waiver.
The failure of one party to insist upon strict pertormance by the other party of any of the
covenants or agreements of this Lease shall not be deemed a waiver of any of such party's rights
or remedies and shall not be deemed a waiver of any subsequent breach or default by the other
party in any of the covenants or agreements of this Lease.
Section 14: Amendment; Successors; Counterparts.
(a) The terms of this Agreement shall not be altered, modified, amended, waived or
supplemented in any manner whatsoever except by a written instrument signed by each of the
parties.
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(h) Except as otherwise set forth herein, nothing expressed or implied herein is
intended or shall be construed to confer upon or to give to any Person, other than the parties, any
right, remedy or claim under or by reason of this Agreement or of any term, covenant or
condition Hereof, and all the terms, covenants, conditions, promises and agreements contained
herein shall be for the sole and exclusive benefit of the parties and their successors and permitted
assigns.
(c) This Agreement may he executed in one or more counterparts, each of which,
when executed, shall be deemed an original but all of which, taken together, shall constitute one
and the same Agreement.
Section 15: Indemnity,
(a) Lessee does hereby fully RELEASE, REMISE and forever DISCHARGE the
Lessor, its agencies, and agents from all manner of action and actions, cause and causes of
actions, claims, demands, suits, debts, dues, damages, costs, loss of service, sums of money,
accounts, bonds, bills, specialties, controversies, agreements, promises, variances, immunities,
losses, trespasses, judgments, executions, expenses or compensations on account, whatsoever,
whether known, unknown, foreseen unforeseen, patent or latent, in law or in equity, which
Lessee may have against said Lessor, growing out of or original or arising out of any transaction,
occurrence, event or incident occurring at the Ieased Premises, and do hereby covenant with the
said Lessor to indemnify and save it/him/her harmless for all said claims, demands, costs,
expenses and compensation on account of or in any way arising out of any incident during the
term of this agreement, including, but not limited to injury which is the result of ice and snow
accumulation and further, said Lessee understand and acknowledges the significance and
consequence of such specific intention to release all claim, and hereby assumes full
responsibilities for any injuries, damages or losses it/he/she may incur from entering into this
Lease Agreement, as Lessee uses said parking lot at its/his/her own risk. Lessee will not hold
Lessor liable for any employee injury that may occur on Leased Premises or for any damage that
may result to its equipment and/or materials that are located on Leased Premises, Lessee
understands that.Lessor provides no security to Leased Premises other than standard police patrol
of the area.
Section 16: Severability.
(a) If any term or other provision of this Agreement is invalid, illegal or incapable of
being enforced by any rule of law or public policy, all other conditions and provisions of this
Agreement shall nevertheless remain in full force and effect so long as the economic or legal
substance of the transactions contemplated hereby is not affected in a manner materially adverse
to either party. Upon such determination that any term or other provision is invalid, illegal or
incapable of being enforced, the parties hereto shall negotiate in good faith to modify this
Agreement so as to effect the original intent of the parties as closely as possible in an acceptable
manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.
[SIGNATURE PAGE TO FOLLOW[
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IN WITNESS WHEREOF,the parties hereto have signed this Agreement as of the day
and year fust above written.
CENTRAL CABLE CONTRACTORS,INC.
1
t)al ansen,f'Sit en'
ATTEST:
CENTRAL CABLE CONTRACTORS,INC.
By: °1� c .p, t cP
VSecretniy
CITY OF CANTON
McDowell, ayor
ATTEST:
CITY OF rANTO.'
400tir
By: :.r,,.,�f�..� ,ir,
Diana Pavley-Rock,ty _:Jerk
I0
IN WITNESS WHEREOF, the parties hereto have signed this Agreement as of the day
and year first above written.
CENTRAL CABLE CONTRACTORS,.INC.
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By. �' .
Dal ansen,Prz.it era
ATTEST:
CENTRAL CABLE CONTRACTORS,INC.
I-.74W
Secretaiy
CITY OF CANTON
By: . I {,
e A.M�f'i'cDowell, ayor
ATTEST:
CITY OF V ANTO.k'
By: /..`4/0" 'via/
Diana Pavley-Rock, fly Clerk
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