HomeMy WebLinkAboutResolution #2077
RESOLUTION NO. 2077
A RESOLUTION APPROVING A LEASE AGREEI'~TP BETWEE[d THE CANTOiN
INDUS'ZRTAT• OORPORATION AS LESSOR AND R. W. HEINZE COP4PANY, INC. AS
i ESSEE, AND, ALSO, APPROVING A FIRST AI~NI)1++~1T TfiQ2E'1'O
WHEREAS, the Community and Industrial Development Committee
has determined that it is necessary and in the best interest of
the City of Canton to approve a certain lease agreement (as
amended) and a first amendment thereto previously entered into by
the Canton Industrial Corporation, Lessor, and the R. W. Heinze
Company, Inc., Lessee; and,
WHEREAS, the Canton City Council has made a similar
determination.
NOW, TfiEREE'ORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF CAN7.'ON, Fulton County, Illinois, as follows:
1. That the Canton City Council hereby finds the foregoing
recitals to be fact.
2. That the lease agreement dated July 21, 1989, entered
into by the Canton Industrial Corporation, Lessor, and the R. P1.
Heinze Company, Inc., Lessee, is hereby approved, as amended.
Further, that the first amendment to said agreement dated August
10, 1989, is hereby approved.
3. That the amendment to the lease agreement dated July 21,
1989, shall consist of the deletion of the last full sentence
found at numerical paragraph 14 of said agreement; deletion by
striking through and initialing such delition by the parties shall
be sufficient.
4. That the foregoing approval is made contingent upon
amendment of the lease agreement as aforesaid and to the
satisfaction of the Canton City Attorney.
5. Contingent upon the foregoing amendment, in the event
that the property which is the subject of the aforesaid lease and
first amendment, during the initial four (4) year term of said
lease and amendment, comes to be under the lawful possession or
control of the City of Canton, the City of Canton hereby agrees
with the R. W. Heinze Company, Inc., as follows:
a. That the City of Canton will not unreasonably
withhold access and possession of the subject property from the R.
P1. Heinze Company, Inc.;
b. That the City of Canton will give the R. ~^1. Heinze
Company, Inc., not less than 180 days notice to vacate the demised
premises, excepting that no such notice shall be required of the
City of Canton with respect to the termination of said lease
agreement and first amendment at the end of its four year term;
c. That the City of Canton agrees that the R. ~^J. Heinze
Company, Inc., shall have a right or claim for reimbursement for
fixtures supplied to the demised premises by said company to the
extent that such fixtures enhance the value of the demised
premises. This provision shall not, however, be operative against
the City of Canton, unless the City is in possession as the result
of foreclosure or deed-in-lieu of foreclosure. In such event, the
City's aggregate liability shall not exceed $7,500.00.
The agreement made by the City of Canton at this numerical
paragraph 5 shall not be transferrable evithout the prior written
consent of the City of Canton upon prior approval by the Canton
City Council.
6. 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, and approval by the tiayor
thereof .
PASSID by the City Council of the City of Canton, Fulton
County, Illinois at a regular meeting this 19th. day of
~ptemb er , 1989, upon a roll call vote as follows:
AYES: Aldermen Chapman, May. Meade, Steck, Zilly.
NAYS: Alderman Sarff.
ABSENT: Aldermen Bohler, Kovachevich.
APPROVED:
Donald E. Ecwards, T~Zayor.
ATTEST:
"~,
~ ~~'~
T`lancy ,~Thi s, City Clerk.
Pu~licaiion Instructions
~ Do not publish
a Publish in pamphlet form only
~ Publish in a general circulation newspa~r
~ ~~~
Cfty A __ ~....__._ date
LEASE AGREEMENT
THIS AGREEMENT i s made by and bet weEn CAI~TON I NC~USTF: I AL
CORPORATION+ an Ohio corporation, hereafter called CIC; and
F:. W. HEINZE C0~IPANY+ INC. + an I 11 inois cor,porat ion,
hereafter called HEINZE and involv~•s the leasing of certain
industrial space in the City of Canton, Illinois.
For and in consideration of the covenants and agreements
herein contained, the parties agree as follows:
1. PREMISES: CIC agr•aes to lease to HEINZE tree
prernises described and known as tuildings 1u5, l~:~e
and ir:~8 and located generally on the land occuNicd
by CIC between Second Avenue and tfie Rur^ 1 ington
Northern Railroad tracks in the City of Canton.
2. TEf:M: The 1 ease per• i od sha 1 1 be f or•~ an i n i t i a l
period of two years beginning ~~~~~ S i, t ~, 1989,
and ter•minat ing on 1-'~UC~ L1 S i ~ Qr , 1991 .
HEINZE, as Lessee. shall have tha option to r•cnBw
this lease and all of its terrns, including rent, fo:•
an additional two years by notifying CIC of its
intent to do so not less than ninety (9C~) days pr•ior•
to the end of the initial two year lease par•iod.
3:" HOLD OVER: If, after e:cpirat ion of the lease. the
~'
Lessee shall retain possession of the pr•erni~e~, th~°
~ ... .~a~.. .~. .•• .-~..r-...._.•• - . .ter.... ---w-+.+^r-~.. _._.-._. ~.......----- - -.._ _. ~.... ~. ~ --•• - ~ - .. ..__ .. __ _~
. ~ lease shall continue in force and effect on a month
to month basis until Lessee's occupancy is
terminated. Sent shall be paid monthly in arrears
on a prorated basis. Notwithstanding any other
provision, hold over rent will ba at the rate of one
and one-hal f (1 1 /~) t imes the nor•rnal r•Ent
hereinafter.
4. RENT: As Lessee, HEINZE agrees to pay to CIC as
Lessor, the sum of NINE HUNDF:EG TWELVE DOLLAF:S AND
FIFTY CEIJTS (~912.Str) per month beginning on
~y~;~J~ ~,4- , 1989, and on the L day of each
month thereafter. Fayrnents shall be made to CIC nt
its address of 26~ East Elm Street, Canton. Illinois
unless written notice is given to HEINZE to pay such
rent to another address.
5. CASE AND MAINTENANCE: HEINZE shall td1:E the
premises in the present condition, building code
violations e::cepted. HEINZE acknowled3es that tree
premises have been inspected and it is agreed treat
the same are accepted in an "as is" condition and
CIC has not agreed to remodel or rnodi fy sar~~e in any
way.
CIC shall provide and pay all costs related to
provision of the following:
A. Maintain existing fixtures for water and
electricity. Lessee will provide at its
expense any additional fixtures for• water
and electricity which it desires and will
maintain and repair same.
B. Maintain er.isting sewer. HEINZE will
arrange for its own water, gas and
electricity to be connected to the fi::tures
of the building.
C. Compliance with all applicable building,
fire and safety codes associated with
Lessee's intended use of the premises.
Lessee's intended use of the buildings is
for nail packaging and shipping.
D. Snow removal will be provided when and as
CIC accomplishes removal for itself.
6. LEASEHOLD IMFFOVEMENTS: CIC grants general
permission to HEINZE to make irnprovernents in the
premises demised herein. Any irnpr•overnents which may
be r.ernoved at the ter•rnination of this least without
substantial damage to the premises may be removed by
HEINZE. In the event of bankruptcy, insolvent~c,
receivership or• other transfer of owner ship of CIC,
HEINZE shall have the absolute right to enter upon
the leased premises and remove any or all of its
materials. machinery, and equipment from the
premises and upon completing said removal, shall be
responsible for no further rent hereunder.
7. MAINTENANCE: HEINZE shall be responsible for all
maintenance of the leased premises, including roof,
exterior walls, foundation and structural portions
of the premises..
8. TAXES: CIC shall pay all real estate property ta::es
levied and assessed against the pr•ernises.
9. UTILITIES: HEINZE agrees to ar•r•ange fur sapar•ate
metering to be billed to HEINZE and to pay for all
utility charges for service rEnder•ed to its lei+sed
port ion of the premises. '
10. ~ INSUFANCE: HEINZE agrees to maintain public
liability insurance in an amount not less than
X300,000.00 combined limits and to provide evidence
of said coverage to CIC. All contants insurance
shall be the responsibility of HEINZE. CIC shall
maintain fire and casualty in~ur•ance on the
structures.
11. ASSIGNMENT: This lease may be assigned or sublet by
HEINZE with the written consent of CIC provided that
at the time of the assignment, all rent has bean
paid to date. Consent by CIC shall not be
unreasonably withheld. CIC shall have the right to
mortgage+ pledge or encumber the demised premises at
any time during the term of this lease but such
pledging+ mortgaging or encurnbering shall be subject
to this lease.
12. LESTf,UCTION OF pf;Et1ISES: In the event the leased
prernises shall be wholly destroyed by fir-e or- other
casualty+ the lease shall terrninate as of t•he date
of such destruction. In the event the prernises
shal 1 be partially destr-oyed by fire cr otr~er
casualty. HEINZE shall have the opt ion to tar-rninate
this lease by giving to CIC wr-ittcn notice ~f such
election within fifteen i15) days after such fire or-
casualty.
13. CONDEMNATION: In the event any or all of the leased
prernises are condernned under an exercise of the
power of erninent dornain, then the entry of ~,n order
of condernnation, whether- after trial or by
agr•eernent+ shall serve to terrninate the lease.
Claims for darnages to the leasehold shall inure to
the benefit of Lessee to the a>:tent of its interest.
14. QUIET ENJOYMENT: CIC covenants that it has full
right and power to execute and per-for-rn this lease
and that as a torpor-ation, this lease has been
~, ~ authorized by action of its board of directors:
HEINZE will have full use of the premises free fr•orn
harassment. disturbance or eviction by CIC or any
person or entity. If CIC has given a mortgage on
the .premises. CIC shal ide that default or
eclosure will not affect the lease.
15. UNTENANTAHILITY: If the premises becomes unusable
for the intended purposes because of casualty or
CIC~s act or neglect, HEINZE may declare the lease
terminated and may vacate if the problem is not
cured by CIC within a reasonable time. HEINZE may
choose to remain in possession after tar~rninating the
lease. paying at the monthly rate, until suitable
substitute premises ar•e available.
16. bFEACH: Failure of CIC to comply with this leases,
to complete irnprovernents in accordance with
specifications or failure to make or complete in a
reasonable time necessary repairs is a brEach of the
lease. This will allow HEINZE the option of having
the work done and deducting actual costs plus a
reasonable administrative fee from rental payments
or terminate the lease. If the lease is terminated,
HEINZE may remain in possession. making payments at
the monthly rate, until suitable substitute premises
are available.
l/ .~L
• 17. NOTICES: Notices to CIC shall be sent to ?60 East
• Elm Street. Canton, Illinois 61520. Notices to
HEINZE shall be sent. to 405 East Linn Street.
Canton, Illinois 61520. All notices will be
effective upon posting in the U. -S. Mail.
IN WITNESS WHEkEOF, the parties have affixed their
signatures on this ~ day of ~ , 1969.
F. W. HEINZE COMF'ANY~ INC.
F esid~nt _
y~ n
ATTES ~~~ ` L G '{~c
~ Secretary
CAt~TON I NUUSTF I AL CORF'OF:AT I
8Y• i ~ ~ r7
~' ~ resident ~
/ ~ I/
ATTEST: ~• _~/ ~"%ii~. ~,~~- ;. ~; ~ ~/G
7.
Secr^etar•y`
AMENDMENT TO LEASE AGREEMENT
This amendment is made by and between Canton Industrial
Corporation and R. W. Heinze Company, Inc.
For and in consideration of amending lease agreement section
4, titled "Rent" and replacing section 20, titled "Insurance."
4. RENT: As Lessee, HEINZE agrees to pay to CIC as Lessor,
the sum of NINE HUNDRED SIXTY TWO DQLLARS AND FIFTY
CENTS ($962.50) per month beginning on ~,~~,r ,y ,
1989, and on the ~_ day of each month thereafter.
It is agreed that Fifty Dollars ($50.00) of the monthly
rent is required to defray increased costs to CIC on
its commercial general liability insurance. Payments
shall be made to CIC at its address of 260 East Elm
Street, Canton, Illinois, unless written notice is
given to HEINZE to pay such rent to another address.
10. 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
property located within the Leased Premises. Tenant
shall bear all risk of loss or damage to such trade
fixtures or personal 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 $1,000,000.00 on account
of bodily injuries to or death of one or mare than
one person and property damage as a result of any
occurrence, and to deposit said policy or policies
(or certificates thereof) with Landlord prior to the
date of any use or occupancy of the Premises by Tenant.
Said policy or policies shall name Landlord and Tenant
as insureds and Shall bear endorsements to the effect
that•th® insurer agrees to notify Landlord not Less
than twenty (20) 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 to do so) 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.
IN WITNESS WH~REOF, the parties have affixed their sign-
atures on this ~ day of /Yuusst _ 1989.
R. W. H E OM ANY, INC.
BY:
r ident
ATTEST: ~~. (,~j~~
Secretary
CANTON INDUSTRIAL CORPO
BY:
EX, V P ident /~ /
_ ~;f ~ •1~i'~' ~
ATTEST• /, ~i,,''',y/-~Ti,-(_•!'i~iG)'./,•L
cretary