8.1. SR 04-18-2016 - Laserfiche WebLink

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386072 2. Improvements. Lessee agrees to construct a building and other improvements for operation and use as a Boys and Girls Club for the purpose of providing recreational and educational opportunities to the youth of the City of Elk River and the surrounding area. Lessee agrees to commence construction of such improvements within thirty (30) days from the date of Lessor's approval of the Construction Plans therefor (as defined in the Ground Lease Agreement), and to achieve Substantial Completion of such improvements (as defined in the Ground Lease Agreement) no later than December 31, 1999, 3. Rentals. The Ground Lease Agreement is a net lease. The base rent for the entire term thereof is One Dollar($1.00). Lessee is responsible for payment, as additional rent, of all costs and expenses of whatever character or kind, general and special, ordinary and extraordinary, foreseeable and unforeseeable, and of every kind and nature whatsoever that may be necessary in or about the operation of the Leasehold Property and improvements. 4. Permitted Uses. The permitted uses of the Leasehold Property are restricted to: a. Construction of the improvements; b. Construction of a parking area on an Easement Area described in that certain Parking and Access Easement dated as of the date of the Ground Lease Agreement between the parties hereto containing sufficient parking spaces and handicap parking facilities, in Lessor's discretion, to provide public access to the improvements; and C. Use of the improvements as a Boys and Girls Club for the education, recreation, and social development of the youth of the City of Elk River and the surrounding area. 5. Covenants Running with the Leasehold Property. The agreements and covenants set forth in the Ground Lease Agreement are binding upon and inure to the benefit of and are enforceable by the Lessor, its successors and assigns, and any successor in interest to the Leasehold Property, or any part thereof, against Lessee, its successors and assigns, and every successor in interest to the Leasehold Property, or any part thereof or any interest therein, and any party in possession or occupancy of the Leasehold Property or any part thereof, for the term of the Ground Lease Agreement, 6. Assignment and Subletting. The Lessor may convey its interest in the Leasehold Property without notice to or approval by Lessee, except as set forth pursuant to a contingent right of first refusal in Lessee to purchase the Leasehold Property which is in effect only in the event that Lessor has entered into a binding agreement to sell all of its right, title and interest in and to the Leasehold Property to a private, for-profit entity or organization or to an individual or individuals, which agreement provides that the sale of the Leasehold Property will be consummated during the term of this Lease Agreement, and the improvements are Substantially Complete. Lessee has no right of first refusal in connection with any offer or agreement regarding a transfer of part, but not all, of Lessor's right, title or interest in and to the Leasehold Property, or any transfer of any part or all of Lessor's right, title or interest in and to the Leasehold Property to a public body or state or federal political subdivision or agency, or any public or private nonprofit organization or entity, or any such BURNIS 586141.2 -2-