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HomeMy WebLinkAboutRESOLUTIONS-1999-035-R-99• 6/2/99 35-R-99 A RESOLUTION Authorizing the City Manager to Enter Into a Hotel Parking Lease Agreement BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS: SECTION 1: That the City Manager is hereby authorized and directed to sign, and the City Clerk hereby authorized and directed to attest on behalf of the City of Evanston, a Hotel Parking Lease Agreement by and between the City of Evanston and AHC Evanston L.L.C. Such Agreement shall be in substantial conformity with the Agreement • marked as Exhibit A attached hereto and incorporated herein by reference. SECTION 2: That the City Manager is hereby authorized and directed to negotiate any additional conditions of the lease as may be determined to be in the best interests of the City. SECTION 3 That this Resolution shall be in full force and effect from and after its passage and approval in the manner vided by law. Mayor ATTEST: i C rk Adopted: / , 1999 • HOTEL PARKING LEASE • THIS PARKING LEASE (hereinafter referred to as the "Lease") is made this 24th day of June, 1999, by and between the CITY OF EVANSTON, a municipal corporation (hereinafter referred to as "Landlord") and AHC Evanston LLC, a limited liability company (hereinafter referred to as "Tenant"). WITNESSETH 1. Demise. Landlord, for and in consideration of Ten Dollars ($10.00) and the covenants and agreements set forth herein, does hereby lease to Tenant and Tenant hereby takes from Landlord the number of parking spaces required to comply with the City of Evanston's Zoning Ordinance, as that ordinance may be modified from j time to time it of the Tenant's real estate, as improved and as legally described on Exhibit A and by this reference incorporated herein (the "Hotel Parcel"). The Spaces shall be unassigned and unreserved automobile parking spaces and shall be located at the planned new Public Parking Garage (hereinafter referred to as "Garage") located on the real estate legally described on Exhibit B hereto and by this reference incorporated herein. The Spaces shall be used by the Tenant to provide parking for the Hotel and to maintain compliance with the City of Evanston Zoning Ordinance for the Parcel. Tenant shall have, as appurtenant to the Spaces, rights to use in common: (a) the common lobbies, corridors, stairways, stairwells, escalators, elevators, of the Garage in commo� with others, and (b) common walkways, parking areas and driveways necessary for common ingress and egress to the Garage. The availability of Spaces is the Garage is based upon the Planned Development Ordinance (41-0-99). 2. Term. The term of the Lease (hereinafter referred to as "Term") shall commence on the day the Hotel opens for business as a Hotel (hereinafter referred to as the "Commencement Date") and shall expire on the fortieth anniversary of the Commencement Date. 3. Rent. All Hotel users who park in the Garage shall be charged the parking rate that the City charges the general public for the spaces leased hereunder. 4. Maintenance. Landlord shall maintain the Garage in accordance with the level of maintenance it performs for other comparable Garages in the City of Evanston and shall perform all repairs, restoration and maintenance thereto. In the event Landlord finds it necessary to restrict access to the Garage to perform maintenance required hereunder, it will give reasonable prior written notice of such necessity to Tenant, except in case of emergency, provided however Landlord shall at all times, provide the Spaces. Landlord shall, at its sole cost keep and maintain the Garage and all sidewalks and parking areas, safe, secure, and clean, specifically including, but not 1 by way of limitation, snow and ice clearance, landscaping and removal of waste and • refuse matter. 5. Rules and Regulations. Tenant agrees to abide by the requirements and regulations relating to the use of the Garage promulgated by Landlord upon not less than thirty (30) days' prior written notice thereof, providing said requirements apply to all users. 6. Use. Tenant agrees to limit its use of the Garage to the parking of motorized vehicles for nine (9) passengers or less. 7. Successors and Assigns. The rights and obligations of the parties hereto shall inure to the benefit of the- parties hereto and each of their successors and assigns. The interest and rights of Tenant hereunder shall be assignable subject to Paragraphs 31 and 44 of the Redevelopment Agreement as amended'. .; 8. Changes in Zoning Requirements. In the event the zoning requirements for the Cinema are changed by the action of the Evanston City Council so that the Hotel Parcel is not required to provide the number of spaces leased hereunder, the City may, upon thirty (30) days' written notice decrease the number of Spaces leased hereunder to the number then required. In the event the zoning requirements for the Project are changes by the action of the Evanston City Council so that the Hotel • Parcel is required to provide additional parking spaces in excess of the number of Spaces leased hereunder, the Spaces shall be so increased. 9. Utilities. Landlord agrees to pay all charges for water, gas, electricity and other utilities incurred in connection with the Garage. 10. Mortgages. If Tenant mortgages its leasehold estate created hereby and the mortgagee or holder of the indebtedness secured by the leasehold mortgage or trust deed shall notify Landlord, in the manner provided for the giving of the notice, of the execution of such mortgage or trust deed and name the place for service of notice upon such mortgagee or holder of such indebtedness, then, in such event, Landlord agrees for the benefit of such mortgagee or holder of such indebtedness from time to time, as follows: (i) Landlord agrees to give any such mortgagee or holder of such indebtedness simultaneously with service on the Tenant, a duplicate of any and all notices of default given by Landlord to Tenant. Such notices shall be given in the manner and shall be subject to the terms of the notice provisions of this Lease. 2 (ii) Such mortgagee or the holder of such indebtedness shall have the • right to perform any of Tenant's covenants under this Lease and to cure any default of Tenant pursuant to terms of this Lease. (iii) No liability for the payment of Rent or the performance of any Tenant's covenants and agreements shall attach to or be imposed upon any mortgagee or the holder of such indebtedness unless such mortgagee or holder of such indebtedness forecloses its interest and becomes the successor Tenant under this Lease. (iv) Tenant agrees that any mortgage or security interests it may grant in this leasehold will provide that it is subject to and subordinate to Landlord's estate. 11. Tenant Default. A. The occurrence of the following shall be.an "Event of Default" hereunder: (i) If Tenant fails to observe or perform any of the other terms, conditions, covenants or agreements of this Lease and such failure shall continue for a period of forty-five (45) days after written notice thereof from Landlord specifying such failure; provided, however, that if such failure cannot reasonably be cured within such forty-five (45) day period, no Event of Default shall be deemed to exist so long as Tenant shall • have commenced curing the same within such forty-five (45) day period, and shall thereafter diligently and continuously prosecute the same to completion. B. Upon the occurrence of an Event of Default, by or against Tenant, Landlord shall have the following rights and remedies: (i) Landlord may, at its option, at any time upon fifteen (15) days written notice to Tenant, and upon the date specified in such notice from Landlord to - Tenant recover from Tenant Landlord's damages caused by such Default together with all other sums payable to Landlord hereunder, including reasonable attorneys' fees, costs and expenses. (ii) Landlord may, at its option, but shall not be obligated to, take such action as appropriate to correct or remedy such default (including performing or causing to be performed any of Tenant's obligations hereunder) and all sums expended by Landlord in doing so shall be payable from Tenant to Landlord upon demand. (iii) In the event of any breach by Tenant of any of the covenants, agreements, terms or conditions in this Agreement, Landlord shall, in addition to the rights and remedies provided hereunder, have the right to invoke any right or remedy allowed at law or in equity or by statute or otherwise. 0 3 (iv) Landlord shall not have the remedy of terminating this lease by • any reason of Tenant's default. 12. Notices. All notices herein required shall be in writing and shall be served on the parties, either personally or mailed by certified or registered mail, return receipt requested or by expedited messenger, and all such notices shall be deemed received on receipt or if delivery is refused upon the date of attempted delivery addressed as follows: If to the Landlord: City of Evanston 2100 Ridge Avenue Evanston, Illinois 60201 Attention: City Manager Facsimile: (847) 448-8083 With a` copy to: Burke and Ryan 33 North Dearborn Street, Suite 402 Chicago, IL 60602 Fax: (312) 236-2556 If to the Tenant: Arthur Hill Arthur Hill & Co. LLC • 5 Revere Drive, Suite 300 Northbrook, Illinois 60062 Facsimile: (847) 498-4947 With a copy to: Mark Yates Sonnenschein, Nath & Rosenthal 8000 Sears Tower Chicago, Illinois 60606-6404 Facsimile: (312) 876-7934 Either party may, by notice, change the addresses set forth above. Facsimile transmission is not authorized as a means of notice under this Lease. 13. Option. Tenant shall have the option ("Option") of renewing this lease for an additional fifty-nine (59) years (the "Option Period"). Written notice of the exercise of said Option shall be provided to Landlord no later than ninety (90) days prior to the expiration of the original term thereof. 14. Demolition. Should the Garage deteriorate so that at anytime during the Option Period it is necessary to demolish said structure and build a new parking • structure or to repair said structure in an amount that exceeds Fifty Thousand Dollars 4 ($50,000.00) in any calendar year (hereinafter referred to as the "New or Remodeled • Structure") in order the provide the Spaces, the Tenant agrees to pay to the Landlord its pro rata share (hereinafter referred to as the "Tenant's Share") of the actual out-of- pocket costs incurred by Landlord to construct the New or Remodeled Structure to accommodate the Spaces. The Tenant's Share shall be equal to a percentage equal to the ratio of the number of the spaces divided by the total number of parking spaces to be located in the New or Remodeled Structure. The Tenant's Share shall be paid to the Landlord within thirty (30) days after completion of the New or Remodeled Structure and after presentation to Tenant of evidence reasonably satisfactory to Tenant of all of the actual out-of-pocket costs so incurred by Landlord to construct the New or Remodeled Structure. Notwithstanding anything herein contained, at such time as the Tenant pays the Tenant's Share to the Landlord, the Rent shall be reduced to be an amount equal to the Tenant's Share to the Landlord, the Rent shall be reduced to be an amount equal to the Tenant's percentage of the net amount of annual costs and expenses incurred to operate and maintain the New or Remodeled Structure. 15. Miscellaneous. A. Captions and Attachments. The headings of sections and paragraphs hereof are for convenience only and shall not be deemed to be relevant in resolving any question of interpretation or construction of any paragraph of this lease. Exhibits and addenda attached or affixed hereto are deemed a part of this lease and • are incorporated herein by reference. B. Estoppel Certificates. The City and the Tenant agree that at any time and from time to time, upon not less than ten (10) days' prior notice by the other party, such party will execute, acknowledge and deliver to the other a statement in recordable form certifying that this Lease is unmodified and in full force and effect (or if there have been modifications that the same as so modified are in full force and effect and setting forth such modifications) and the_ date to -which the Rent and other charges and obligations hereunder have been paid in advance, if any, it being intended that any such statement delivered pursuant to this Section may be relied upon by any prospective purchaser, Mortgagee, assignee of any mortgage or assignee of the respective interests under this Lease, made in accordance with the provisions of this Lease. C. Governing Law. The laws of the State of Illinois shall govern the validity, performance and enforcement of this Lease. D. Severability. If any provision of this Lease shall be determined 'by a court of competent jurisdiction to be invalid or unenforceable, the remainder of this Lease shall not be affected thereby, and each term and provision of this Lease shall be • valid and enforceable to the fullest extent permitted by law. 5 •E. Condition of the Premises. Tenant's occupancy of the Garage after the Commencement Date shall constitute an acknowledgment by Tenant that, the Garage was, on the date possession was taken, in good order and satisfactory condition. IN WITNESS WHEREOF, the parties hereto have executed this lease this day and year first above written. TENANT: AHC EVANSTON LLC By: AH ;anagement, Inc., Manager By: - - - -- LANDLORD CITY OF EVANSTON By: ; <1 0 EXHIBIT A . LOT 5 OF THE CHURCH MAPLE RESUBDIVISION BEING A RESUBDIVISION OF PART OF DEMPSTER'S SUBDIVISION OF BLOCK 66 OF THE VILLAGE OF EVANSTON, COOK COUNTY, ILLINOIS; PART OF THE CHICAGO AND NORTHWESTERN RAILROAD RIGHT OF WAY (FORMERLY CHICAGO, MILWAUKEE AND ST. PAUL RAILROAD RIGHT OF WAY); PART OF BLOCK 18 IN THE VILLAGE OF EVANSTON; ALL OF BLOCKS 2 AND 3 IN CIRCUIT COURT SUBDIVISION IN PARTITION OF LOT 22 IN THE COUNTY CLERK'S DIVISION OF UNSUBDIVIDED LANDS; AND PART OF VACATED. CLARK STREET AND EAST RAILROAD AVENUE; BEING IN THE NORTHWEST QUARTER AND THE SOUTHWEST QUARTER OF SECTION 18, TOWNSHIP 41 NORTH, RANGE 14 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS. 11 • EXHIBIT B LOT 4 OF THE CHURCH MAPLE RESUBDIVISION BEING A RESUBDIVISION OF PART OF DEMPSTER'S SUBDIVISION OF BLOCK 66 OF THE VILLAGE OF EVANSTON, COOK COUNTY, ILLINOIS; PART OF THE CHICAGO AND NORTHWESTERN RAILROAD RIGHT OF WAY (FORMERLY CHICAGO, MILWAUKEE AND ST. PAUL RAILROAD RIGHT OF WAY); PART OF BLOCK 18 IN THE VILLAGE OF EVANSTON; ALL OF BLOCKS 2 AND 3 IN CIRCUIT COURT SUBDIVISION IN PARTITION OF LOT 22 IN THE COUNTY CLERK'S DIVISION OF UNSUBDIVIDED LANDS; AND PART OF VACATED CLARK STREET AND EAST RAILROAD AVENUE; BEING IN THE NORTHWEST QUARTER AND THE SOUTHWEST QUARTER OF SECTION 18, TOWNSHIP 41 NORTH, RANGE 14 EAST OF THE THIRD PRINCIPAL MERIDIAN, IN THE CITY OF EVANSTON, COOK COUNTY, ILLINOIS. • •