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Date: Item No.
KENRICK LIQUOR STORE
LEASE AGREEMENT SECOND AMENDMENT
Proposed Action
Staff recommends adoption of the following motion: Move to approve a second amendment to
the Kenrick Liquor Store lease located at 16179 Kenrick Avenue, Lakeville, Minnesota.
Overview
Driessen Development has recently completed the construction of the additional retail spaces
adjacent to the Kenrick Liquor store. In finalizing the project Driessen completed a final as-built
survey of our lease space and the new adjacent tenant spaces. The final actual square footage of
our liquor store space was 9,705 square feet which was 89 square feet more than what was
previously indicated via county records and indicated in the original lease. Therefore, the attached
lease amendment has been prepared to reflect the correct square footage of lease space and the
revised lease payment. Staff recommends approval of the lease amendment as attached.
Primary Issues to Consider
• What is the impact on the lease payment.
The original monthly lease payment was $15,225.33. The revised monthly lease payment is
15,366.25. A difference of $141.00 per month. The increase in square footage will also be reflected
in a minor increase in our portion of the Common Area Maintenance (CAM) charge that we share
with the other two tenants of the site. The Liquor Operations budget will be revised to reflect this
minor change in the lease payment and CAM charges.
Supporting Information
• Lease Agreement Second Amendment
Financial Impact: $ Budgeted: Y☐ N☐ Source:
Related Documents: (CIP, ERP, etc.):
Envision Lakeville Community Values: Good Value for Public Services
Report Completed by: (Allyn G. Kuennen, Assistant City Administrator)
February 4, 2019
N/A n/a
245638
SECOND AMENDMENT TO LEASE AGREEMENT
THIS SECOND AMENDMENT TO LEASE (the “Agreement”) is made and entered
into as of ______________________, 2019, by and between LAKE 46 I, LLC, a Minnesota
limited liability company, and LAKE 46 II, LLC, a Minnesota limited liability company
(collectively, “Landlord”) and CITY OF LAKEVILLE, a Minnesota municipal corporation
(“Tenant”).
WHEREAS, Landlord and Tenant entered into that certain Lease dated April 10, 2018
(erroneously dated 2017), which Lease was amended by that certain First Amendment to Lease
Agreement dated as of May 21, 2018, for a portion (once construction expanding said building is
completed) of 16179 Kenrick Avenue, Lakeville (hereinafter called the “Demised Premises”);
and
WHEREAS, construction of the Building expansion is complete and the square footage
of the Demised Premises and Building have been measured; and
WHEREAS, Landlord and Tenant desire to amend the Lease as set forth herein.
NOW, THEREFORE, in consideration of the mutual agreements made hereinafter, and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
1. The square footage of the Demised Premises is agreed to be 9,705 square feet and
Item 3(a) of the Lease Data Sheet is amended accordingly. The square footage of the Building is
agreed to be 13,143 square feet and Tenant’s Proportionate Share is agreed to be 73.84%.
2. Effective with the installment of Base Rent due January 1, 2019, the Base Rent
chart set forth in Item 11 of the Lease Data Sheet is amended and restated in its entirety as
follows:
Initial Term:
YEAR P.S.F.
RENT
ANNUAL MONTHLY
1 to 5 $19.00 $184,395.00 $15,366.25
6 to 10 $20.33 $197,302.65 $16,441.89
11 to 15 $21.75 $211,083.75 $17,590.31
16 to 20 $23.27 $225,835.35 $18,819.61
245638 2
Renewal Terms:
YEAR P.S.F.
RENT
ANNUAL MONTHLY
21 to 25 $24.90 $241,654.50 $20,137.88
26 to 30 $26.64 $258,541.20 $21,545.10
31 to 35 $28.50 $276,592.50 $23,049.38
36 to 40 $30.50 $296,002.50 $24,666.88
3. Landlord and Tenant agree that (i) neither is in default under the Lease, (ii) there
are no defenses to performance by either party to performance under the Lease, and (iii)
the Lease remains in full force and effect and unmodified (other than as expressly set
forth herein).
IN WITNESS WHEREOF, Landlord and Tenant have signed this Lease as of the date set
forth above.
LAKE 46 I, LLC CITY OF LAKEVILLE
By By
Vincent J. Driessen, President Douglas P. Anderson, its Mayor
LAKE 46 II, LLC
And By:
Charlene Friedges, Its City Clerk
By:
Paul A. Stearns, President