HomeMy WebLinkAboutResolution 060-18RECORD OF RESOLUTIONS
BARRETT BROTHERS - DAYTON, OHIO
Resolution No. _ 60-18 Passed
A RESOLUTION AUTHORIZING THE CITY MANAGER TO
EXECUTE A TRIPLE NET COMMERCIAL LEASE AGREEMENT
FOR A PRIMARY TERM OF FIVE YEARS WITH GTN
CORPORATION FOR THE DUBLIN VILLAGE TAVERN
PROPERTY LOCATED AT 27-29 SOUTH HIGH STREET
WHEREAS, the City of Dublin ("Landlord's and GTN Corporation C'Tenant'� are parties
to a Lease dated October 19, 1998, as amended by Amendment No. 1 dated April 1,
2004; as amended by Amendment No. 2 dated November 21, 2006; and as amended
by Amendment No. 3 dated April 3, 2014 (together, "the Lease') for the premises
commonly known as 27-29 South High Street, Dublin, Ohio 43017 (the "Premises', as
more particularly described in the Lease; and
WHEREAS, the term of the Lease for the Premises expires on February 28,
2019, and Landlord and Tenant have agreed to extend the term of the Lease
for an additional primary period of five years with additional renewal options,
and to otherwise enter into a new lease agreement as more particularly set
forth in the Triple Net Commercial Lease Agreement attached hereto as Exhibit
A; and
WHEREAS, the parties desire to enter into this Triple Net Commercial Lease
Agreement.
NOW, THEREFORE, BE IT RESOLVED by the Council of the City of Dublin,
Delaware, Franklin, and Union Counties, State of Ohio, f of the elected
members concurring that:
Section 1. The City Manager is hereby authorized to execute all necessary
documentation, including but not limited to, the Triple Net Commercial Lease
Agreement with GTN Corporation in substantially the same form as the one
attached hereto as Exhibit "A", with changes not inconsistent with this
Resolution, not substantially adverse to the City, and which shall be approved
by the City Manager and Director of Law. The approval of changes thereto by
those officials, and their character as not being substantially adverse to the City,
shall be evidenced conclusively by their execution thereof.
Section 2. This Resolution 's effective upon passage in accordance with
Sectioyf 4.O4(a) of the Revise Charter.
Pas e this ay h�t�%: / 2018.
Mayor — Prgsidinj/Officer
ATTEST:
Clerk of Council
Form 6301
Office of the City Manager
5200 Prkway*City of Dublin Phone: 614-1410.4 0 • Fax:hlin614--410-4490 43017-1090
To: Members of Dublin City Council
From: Dana L. McDaniel, City Manager
Date: September 20, 2018
Initiated By: Terry Foegler, Director of Strategic Initiatives/Special Projects
Philip K. Hartmann, Assistant Law Director
Memo
Re: Resolution No. 60-18 - A RESOLUTION AUTHORIZING THE CITY
MANAGER TO EXECUTE A TRIPLE NET COMMERCIAL LEASE
AGREEMENT FOR A PRIMARY TERM OF FIVE YEARS WITH GTN
CORPORATION FOR THE DUBLIN VILLAGE TAVERN PROPERTY
LOCATED AT 27-29 SOUTH HIGH STREET
Background 27 South High Street
The City of Dublin (the "City') purchased 25, 26, and 27-29 South High Street in 1988 for
$190,000. The 27-29 South High Street property (the "Property') was first leased to Dublin Art
and Glass, but since 1999, the City has leased the Property to GTN Corporation ('GTN'), whose
President is Timothy Picciano. GTN initially renovated and later expanded the existing building at
this location, and has operated the Property as a restaurant known as The Dublin Village Tavern.
The initial lease entered into between the City and GTN established a 5 -year term, with two
additional 5 -year lease option periods (for a total of 15 years of lease rights). The lease was
subsequently amended to add one additional 5 -year term, providing a total of twenty years of
lease rights to GTN, which will expire on March 1, 2019. The City has been assessing potential
future strategies for this Property, and has determined that re-leasing the Property to GTN, under
appropriate terms and conditions, remains in the City's best interest.
Rental History
After its initial renovation in 1999, the building included 1,097 square feet of space and was leased
for $7.00 per sq. ft. during the first 5 -year lease term (1999-2004). The second five-year lease
term (or the first "option" period) covered 2004-2009, when the lease rate was increased to $9.00
per sq. ft. (adjusted to "market" rent, per the lease), however, the lease was amended mid-term,
in 2006, to account for the 557 sq. ft. expansion of the building by GTN. Upon completion of the
restaurant expansion in 2007, the lease rate remained the same ($9.00 per sq. ft.), but the leased
area was adjusted to apply to the entire 1,654 sq. ft. building, which increased annual rent from
$9,873 per year to $14,886. The third five-year term of the lease (or the second "option" period)
covered March 2009 through March 2014, when the rent was increased to $10.31 per sq. ft. and
continued to apply to the entire 1,654 sq. ft. restaurant space ($17,036 per year). For the final
five-year term of the lease (March 2014 through February 2019), GTN requested that 557 sq. ft.
tenant -funded expansion area be removed from the rental calculation because the expansion had
been fully funded by GTN, and from GTN's perspective, should have never been included in the
rent calculation. The City agreed to remove the expansion area from the rental calculation, and
applied a new rate of $11.08 per sq. ft. only to the original 1,097 square feet building (yielding a
rent of $12,155 per year, or a 29% reduction of rental income).
Memo re. Res 60-18 — Triple Net Commercial Lease Agreement with GTN Corporation for the
Dublin Village Tavern
September 20, 2018
Page 2 of 3
Policy Considerations
Use of Property & Ownership: City Council has expressed a desire to continue to operate the
Property as a restaurant because the restaurant use provides an important destination,
neighborhood gathering place, and generator of pedestrian activity for this portion of the Historic
Downtown area. Given this goal, the City's continued ownership of this asset remains the most
effective method of ensuring the achievement of the goal.
Previous Investments in the Building: GTN has made significant investments in the building over
the past twenty years. According to information GTN provided, it invested $120k in 1999 for the
actual building renovation and conversion of the building to the restaurant, $50K of which was
reimbursed by the City. GTN indicated it also provided an additional $80K investment in
equipment as part of that initial conversion. In 2007, GTN added 557 square feet to the building at
a cost of $300K, with an additional equipment investment of $135K. GTN further noted that it has
performed all needed building maintenance and repairs over the years, regardless of the nature or
extent of those repairs (none made by the City). Some repairs (such as roof or foundation repairs
associated with the building's core and shell) are sometimes negotiated as a landlord responsibility
under some modified triple net commercial building leases. But these lease structures vary
significantly, and a tenant will evaluate its willingness to make investment decisions based upon its
projected sales levels and the profitability of its restaurant operation, as well as the amount of
time (lease term) it has remaining within its lease to comfortably amortize such investments.
Appropriate Lease terms: The current lease required the tenant to cover all costs associated with
the Property (other than the City's initial $50K renovation contribution in 1999 and ongoing
responsibility for the public parking facilities, which the City owns and operates on and adjacent to
the Property). As such, in evaluating the appropriate rent and term of a new commercial lease,
the parties considered the ongoing costs being borne by GTN within such a lease structure.
Because the level of total sales at The Dublin Village Tavern has become quite robust in recent
years, a significant upward adjustment in base rent is warranted. Specifically, the City
Administration has negotiated with GTN, and the parties have tentatively agreed (subject to
Council authorization), that a new lease (as depicted in Attachment A) be entered into between
the City of Dublin and GTN Corporation for the continued operation of The Dublin Village Tavern,
in accordance with the terms included in the attached Lease. The key terms of this lease are:
• Five-year base lease, with 1 five-year option to renew.
• Lease remains a true triple net lease, although the landlord contributes to building
improvements that exceed the term of the lease.
• Base rent increases from current $11.08 to $24.00 per square foot.
• Lease rate shall increase 2% each year of occupancy.
• The calculation of the area being leased increases from 1,097 to 1,654 square feet.
• Year 1 rent would be $39,696.
Recommendation
Hundreds of millions of dollars of new public and private investment is now occurring in the areas
near, and just north of, the Property that will very likely continue to enhance the viability and value
of this important real estate asset. The twenty-year partnership between the City and GTN (and
the pioneering efforts of GTN) has resulted in a very successful neighborhood restaurant, which
Memo re. Res 60-18 — Triple Net Commercial Lease Agreement with GTN Corporation for the
Dublin Village Tavern
September 20, 2018
Page 3 of 3
has clearly added to the vitality and quality of life in the southern Historic District area of
downtown Dublin. The City has determined that the continued operation of a restaurant at the
Property (as well as the continued public parking provided on this parcel) provides numerous
benefits to this critical area of the City, and as such, believes the City's continued ownership of the
Property provides the best prospect for ensuring such benefits continue into the future. As such,
the Administration recommends that Council approve Resolution 60-18 which authorizes the City
Manager to enter into and execute a Triple Net Commercial Lease Agreement with GTN
Corporation for 27-29 South High Street, under the terms and conditions specified therein.
TRIPLE NET COMMERCIAL LEASE AGREEMENT
This TRIPLE NET COMMERCIAL LEASE AGREEMENT ("Lease") is
made as of the day of , 2018, by and between CITY OF DUBLIN, Ohio,
an Ohio municipal corporation, with offices at its City Hall, 5200 Emerald Parkway, Dublin,
Ohio 43017 ("Landlord"), and GTN CORPORATION, an Ohio corporation, whose address is
4482 Dunleary Drive, Dublin, Ohio 43017 ("Tenant") (Landlord and Tenant referred to jointly
as "Parties" or singularly "Party")
BACKGROUND INFORMATION
A. Landlord and Tenant entered into a lease agreement, dated October 19, 1998, as
amended by Amendment No. 1 to lease agreement, dated April 1, 2004, as amended by
Amendment No. 2 to lease agreement, dated November 21, 2006 and as amended by
Amendment No. 3 to lease agreement, dated April 3, 2014, for the premises commonly known
as 27-29 South High Street, Dublin, Ohio 43017 now consisting of 1,654 square feet (the
"Leased Premises") and with a Lease termination date of February 28, 2019.
B. Now, with this Lease the Landlord and Tenant desire to continue in a Landlord and
Tenant relationship for the Leased Premises.
C. This Lease shall be a Triple Net Lease, it being agreed and understood that Lessee shall
be obligated to pay all expenses whatsoever relating to the Leased Premises (including the
building, other improvements and Lessee's Business conducted thereon and excluding the
Landlord's public parking facility located on the same legal parcel) and Landlord shall not be
required to expend any sums whatsoever with respect to the Leased Premises throughout the
Term(s).
In consideration of the background information above, mutual covenants herein and the
terms that follow, Landlord and Tenant agree:
1. LEASED PREMISES.
The Landlord does hereby grant, demise, and lease unto Tenant, and Tenant does lease
and take from Landlord, for the term and for the rental and conditions set forth in this Lease,
the Leased Premises commonly known as the "Dublin Village Tavern" ("DVT"), with an
address of 27-29 South High Street, Dublin, Ohio 43017, the same consisting of the real estate,
all improvements, easements, rights, fixtures and appurtenances in connection therewith or
thereunto belonging, excluding, however, the Landlord's public parking facility located on the
same legal parcel, as depicted in the attached Exhibit A.
2. PRIMARY AND RENEWAL TERMS.
(a) The Primary Term. The "Primary Term" of this Lease shall be for a
period commencing on the Base Rent Commencement Date of March 1, 2019, and shall
continue thereafter for a period of five (5) years from such date or February 28, 2024,
unless terminated or extended as hereinafter provided.
(b) Renewal Term. Tenant shall have the option to extend the term of this
Lease for one (1) successive period of five (5) years (the "Renewal Term"), provided
that Tenant is not in default under any of the provisions of this Lease at such time, and
that at least sixty (60) days prior to the expiration of the Primary Term, Tenant gives
written notice to Landlord of its intent to exercise the option for the Renewal Term.
The renewal of this Lease shall not be deemed to correct or remove the need to correct
any default hereunder, and such renewal shall not affect in any way the right of either
Party under this Lease to exercise any of such Party's rights or remedies in the event of
a default by the other Party either before or after the effective date of the Renewal
Term.
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3. ADDITIONAL RENT RENTAL.
For all purposes of this Lease, the term "Rent' shall include Base Rent, and all other
obligations of Tenant hereunder. Tenant shall pay Rent to Landlord as follows:
(a) BASE RENT. The fixed minimum annual rent (the "Base Rent') shall
be paid as follows:
(i) For the first year (5) years of the Primary Term the Base Rent
shall be $24 a square foot times One Thousand Six Hundred Fifty Four square
feet (1,654 square feet) equaling an annual rental amount of $39,696 for the
year one of the Primary Term and escalate two (2%) percent each year
thereafter net to Landlord: Year 2 ($40,490), Year 3 ($41,300), Year 4
($42,126), Year 5 ($42,969); and
(ii) For the Renewal Term, the Base Rent shall be $43,828 for year
one of the renewal term and escalate two (2%) percent net to Landlord: Year 2
($44,705), Year 3 ($45,599), Year 4 ($46,511), and Year 5 ($47,441).
(b) ADDITIONAL RENT. Tenant shall pay as Additional Rent, certain
amounts with respect to taxes, maintenance, insurance, late charges, utilities, and other
amounts as provided under other provisions of this Lease (collectively, the "Additional
Rent').
(c) PAYMENT OF RENT. Base Rent and Additional Rent (the "Rent')
provided for herein shall be paid without any deduction or set off whatsoever and shall
be paid in advance without demand. All Base Rent shall be paid in equal monthly
installments on the first day of each and every month during each term hereof to the
Landlord at 5200 Emerald Parkway, Dublin, Ohio 43017, or at any other place
subsequently designated by the Landlord. IT IS UNDERSTOOD AND AGREED
THAT BASE RENT IS DUE, IN ADVANCE, ON OR BEFORE THE FIRST DAY
OF EACH MONTH. Extension of time for payment of Rent, indulgence or change by
Landlord of the mode or time of payment of Rent upon any occasion shall not be
construed as a waiver of the provision of this article or as requiring a similar extension,
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indulgence or change by Landlord on any subsequent occasion. Tenant's obligation to
pay all Rent when due shall survive the expiration or sooner termination of this Lease.
4. INTEREST ON ARREARAGE - LATE CHARGE.
All arrearages in the payment of Rent or in the payment of any other amounts which
become due under the terms of this Lease and which are not paid within ten (10) days of the
due date shall bear interest from the date when due and payable at the rate of twelve percent
(12%) per annum (or if such rate is not permitted by law, such lesser rate, if any, permitted by
law), until paid. This provision is in addition to and supplements all other related provisions in
this Lease. Tenant shall also reimburse Landlord for any late charge incurred by Landlord
caused by delinquent payment by Tenant.
5. SECURITY DEPOSIT.
Upon execution of this Lease, Tenant shall make a security deposit to Landlord in the
amount of NONE ($0.00).
6. LEASE CONDITIONS.
The Leased Premises are leased subject to the following conditions:
(a) All conditions, restrictions, encumbrances, limitations and the terms of
any lien now or hereafter appearing of record caused by Landlord;
(b) Existing laws and zoning ordinances which affect the Leased Premises
or which may hereafter exist during the Terms of this Lease;
(c) Easements including Easements for public utilities and easements of any
public highways now or hereafter appearing of record; and
(d) The terms and conditions of this Lease.
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7. TAXES AND ASSESSMENTS.
(a) Real Propertv Taxes. As Additional Rent, Tenant shall pay all taxes
commonly called "Real Property Taxes" and all special assessments and other
governmental impositions against the Leased Premises ("Assessments"). Tenant shall
pay all Real Property Taxes and Assessments on a timely basis. Real Property Taxes
and Assessments due and payable in the year of commencement of this Lease and the
year of expiration of this Lease shall be prorated and Tenant shall only be responsible
for its proportionate share covering the period from the Commencement Date to the
expiration date of this Lease. With respect to any Assessments which may be levied
against or upon the Leased Premises, or which under the laws then in force may be
evidenced by improvements or other bonds, or may be paid in installments, only the
amount of such installment (with proration for any partial year on the basis previously
stated) shall be included within the computation of the annual Real Property Taxes and
Assessments levied against the Leased Premises. For all purposes of this Lease, the
term "Real Property Taxes" shall include any annual installments of special
assessments for the benefit of the Leased Premises and ad valorem tax imposed upon
Landlord with respect to the Leased Premises, or otherwise against or with respect to
the Leased Premises, by any authority having the direct or indirect power to tax.
(b) Tenant's Right to Contest Assessment. Tenant shall have the right, in
Tenant's own name only, after written notice to Landlord of its intention to do so, to
contest increase in Real Estate Taxes or any Assessment and to withhold payment of
any increase pending any such contest (if permitted by law). Landlord agrees to
cooperate with Tenant in connection with any contest as aforesaid, and shall execute
such documents as may be reasonably required of the owner of the Real Estate as a part
of any such contest. Any refund of any Real Property Taxes or Assessment (including
interest and penalties) which has been paid by Tenant, shall belong to Tenant. Should
Tenant fail to pay the Real Property Taxes or any Assessment as is herein required,
Landlord shall be permitted to do so and the amount paid, together with interest thereon
at twelve percent (12%) per annum (or if such rate is not permitted by law, such lesser
rate, if any, permitted by law) shall be deemed Additional Rent owed hereunder by
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Tenant to Landlord and shall not be deemed a waiver by Landlord of Tenant's default
in failing to do so.
(c) Personal Propertv Taxes. Tenant shall pay, prior to delinquency, all
taxes assessed against or with respect to any Trade Fixtures, furnishings, equipment, or
other personal property contained in the Leased Premises. Any such taxes imposed
upon or otherwise payable by Landlord shall be treated and included as Real Property
Taxes.
8. UTILITIES.
As Additional Rent, Tenant shall pay timely for all heat, water, sewer service charges,
gas, electricity, telephone, and other public utilities used in or about the Leased Premises.
Tenant shall contract for all such services in Tenant's own name.
9. INSURANCE - WAIVER OF SUBROGATION - INDEMNITY.
(a) Fire and Hazard Insurance. Tenant, at Tenant's expense, shall obtain
and keep in force at all times during the Terms of this Lease one (1) or more policies of
insurance covering loss or damage to the Leased Premises in the amount of the full
replacement value of the Improvements and contents. Such policies shall provide
protection against all perils included within the classifications of fire, explosion,
extended coverage, wind storm, earthquake, vandalism, malicious mischief and special
extended perils (all risks) and flood (if the Improvements are within a Special Flood
Hazard Area, as determined by the Federal Emergency Management Agency). Such
policies shall name Landlord (and Landlord's mortgagee, if any) as additional insured.
Landlord may reasonably require an increase of such insurance from time to time
during the Terms of the Lease to include such additional risks or greater coverage of the
risks set forth above as may be required by Landlord's lenders or desired by Landlord.
(b) Liability Insurance. Tenant, at Tenant's expense, shall obtain and keep
in force at all times during the Terms of this Lease (i) one (1) or more insurance
policies of liquor liability (i.e., dram shop R.C. §4399.18) insurance, insuring Landlord
and Tenant against all liability arising as a result of actions, behaviors or conduct of a
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patron who consumed intoxicating beverages at the Leased Premises, with policy limits
of not less than One Million Dollars ($1,000,000), and (ii) one (1) or more insurance
policies of commercial general liability insurance, insuring Landlord and Tenant
against all liability arising out of the ownership, use, occupancy, construction, or
maintenance of the Leased Premises, with policy limits of no less than Two Million
Dollars ($2,000,000) with respect to injuries to, or death of, any persons on the Leased
Premises, or occurrences of any property damage to third parties caused on the Leased
Premises, whether or not caused by any of Tenant's employees, agents, contractors,
representatives, guests or invitees. All such required insurance will be primary and
non-contributory to any valid and collectible insurance maintained by Landlord.
Tenant's policy shall include a Severability of Interests Clause.
(c) Business Income Insurance. Tenant, at Tenant's expenses, shall obtain
and keep in force at all times during the Terms of this Lease, Business Interruption
Insurance in an amount sufficient to cover the Tenant's business operations costs,
including rent and expenses for which the Tenant is responsible under the Lease.
(d) Workers' Compensation and Unemployment Contributions. If the
nature of Tenant's operation is such as to place any or all of its employees under the
coverage of local workers' compensation or similar statutes and/or unemployment
compensation schedules, Tenant shall keep in force, at all such time during the Terms
of this Lease, at Tenant's expense, workers' compensation or similar insurance
affording statutory coverage and containing statutory limits, and shall make all
unemployment compensation contributions required by law.
(e) Other Insurance. Tenant, at Tenant's expense, shall obtain and keep
in force at all times during the Terms of this Lease, insurance on the equipment,
inventory, merchandise, supplies, and other personal property of Tenant on or about the
Leased Premises in an amount not less than full replacement value. Tenant, on its own
behalf and on its insurers' behalf, hereby expressly waives any and all claims against
Landlord for loss or damage to Tenant's equipment, inventory, merchandise, supplies
and other property on or about the Leased Premises due to fire, explosion, windstorm,
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earthquake, vandalism or any other casualty, or due to any other cause whatsoever,
regardless whether Tenant has procured insurance thereon and regardless of the cause
of such loss or damages, unless such loss or damage resulting from the negligence or
willful misconduct of Landlord or Landlord's agents, employees, or representatives..
(f) Form and Proof of Insurance. Policies for all such insurance shall be
in a form and with an insurer reasonably acceptable to Landlord, and shall require at
least thirty (30) days prior written notice to Landlord of termination or material
alteration during the Terms of this Lease, and Landlord and any Mortgagee shall be
named as additional insureds, as their interests may appear, on each of the policies
mentioned in (a), (b), (c), (d), (e), (f) and (g) above, which are not issued directly in the
name of the Landlord or Mortgagee as primary insureds. Tenant shall deliver to
Landlord certified copies of such policies or other evidence satisfactory to Landlord
that all premiums thereon have been paid in advance and that the policies are in full
force and effect.
(g) Waiver of Subrogation. Policies of Insurance carried by Tenant shall
waive, to the extent permitted by the insurance carriers and so long as such does not
invalidate the insurance, any right of subrogation against the Landlord.
(h) Continuing Obligation to Insure/When Obligation Begins. Any
termination of this Lease prior to the expiration date shall not relieve Tenant of any
liability to the Landlord regarding Tenant's responsibility for having provided
insurance for the benefit of the Landlord or for the payment of insurance premiums by
Tenant; provided however, Tenant shall be relieved of such responsibility to provide
insurance and pay insurance premiums only to the extent that such insurance is
provided and paid for by another tenant. Tenant's obligation to provide the insurance
required by this Lease shall begin on the Commencement Date.
(i) Tenant Shall Hold Landlord Harmless. Tenant shall and does hereby
hold Landlord harmless, and Landlord shall not be held responsible for and is hereby
expressly relieved, from any and all liability by reason of injury, loss or damage to any
person or property in or about the Leased Premises, however caused, whether the loss,
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injury or damage be to the person or property of Tenant or any other person, except
only with respect to any uninsured loss, injury or damage caused by the intentional act
or negligence of the Landlord, or Landlord's agents, employees, or representatives.
10. LANDLORD'S RIGHT OF ENTRY.
Landlord or Landlord's agents, employees, or representatives shall have the right to
enter the Leased Premises during reasonable business hours, upon twenty-four (24) hours
advance notice, to examine the same, or to make such repairs and alterations as may be
necessary for the safety and preservation of the Leased Premises, but without any obligations
to make repairs, also, to show the Leased Premises to let and to put upon the Leased Premises
the usual notice "For Lease" one hundred twenty (120) days preceding the expiration of the
Lease. In the event of dire emergency, the 24-hour advance notice shall not be required.
11. USE AND OPERATION OF LEASED PREMISES.
Tenant agrees that Landlord has made no warranty or representations of any kind or
nature whatsoever as to the suitability of the Leased Premises for any particular use or as to
Tenant's ability to operate any specific business on the Leased Premises or as to Tenant's
ability to obtain any necessary governmental approval or permit for any specific use of the
Leased Premises. Tenant shall use the Leased Premises solely for the purpose of operating its
full service Restaurant and related activities. Tenant shall comply with all laws applicable to
the Leased Premises, including fire, health and safety codes, environmental laws and zoning
requirements and restrictions. Tenant shall comply with all agreements, covenants and
restrictions applicable to the Leased Premises either of record or of which Tenant is given
written notice. Tenant shall not create or permit any hazard, nuisance, menace, or waste in, on
or about the Leased Premises. Tenant shall comply with all requirements of the insurers
applicable to the Leased Premises necessary to keep in force the fire, casualty, liability and
other insurance.
12. HAZARDOUS SUBSTANCES.
Tenant covenants and agrees not to utilize or permit to be utilized in the construction of
any alterations or improvements to the Leased Premises which Tenant may construct or any
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other structure at any time erected on the Leased Premises, or to be located upon the Leased
Premises, any friable asbestos or asbestos contaminated material, any urea formaldehyde foam
insulation, or any transformers or other equipment containing dielectric fluid in which shall be
subsisting polychlorinated biphenyls in excess of ten parts per million. Tenant further
covenants and agrees not to permit any `hazardous material" to be placed, held, located or
disposed of upon, or released upon, under, or at the Leased Premises, or any part thereof. For
purposes of this Lease, "hazardous material" means and includes any hazardous, toxic, or
dangerous waste, substance, or material defined as such in, or for purposes of, the
Comprehensive Environmental Response, Compensation, and Liability Act (42 USC 9601 et
seq.), any so-called "superfund" or "superlien" law, or any other federal, state, or local statute,
law, ordinance, code, rule, regulation, order, or decree regulating, relating to, or imposing
liability or standards of conduct concerning any hazardous, toxic, or dangerous waste,
substance, or material, as now or at any time hereafter in effect. If Tenant has knowledge of or
receives any notice of (1) the happening of any event involving the use, spill, discharge, or
cleaning up of any hazardous material (a "hazardous discharge") or (2) any complaint, order,
citation, or notice with regard to air emissions, water discharges, noise emissions, or any other
environmental, health, or safety matter affecting Tenant, or the Leased Premises (an
"environmental complaint") from any person or entity, including, without limitation, the
United States Environmental Protection Agency ("EPA"), Tenant shall give immediate notice
thereof to Landlord disclosing full details of same. Tenant does and shall indemnify and hold
Landlord harmless from all loss, cost, claim, damage, and expense, including, but not limited
to, reasonable attorney fees incurred by Landlord as a result of any hazardous discharge on the
Leased Premises during the Terms of this Lease which caused by Tenant, or Tenant's
members, agents, employees, licensees, invitees, contractors or representatives, and the
indemnity of Tenant in favor of Landlord contained in this article shall survive the expiration
or termination of this Lease.
13. ASSIGNMENT AND SUBLETTING.
The rights and duties of Tenant contained herein are personal to Tenant, and therefore,
Tenant shall not assign this Lease or sublease the Leased Premises or any part thereof or permit
any other person, firm or corporation to occupy or operate any business in, on or from the
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Leased Premises or any part thereof without the prior written consent of Landlord which
consent shall not be unreasonably withheld or delayed. In the event of an assignment or
sublease, Tenant shall remain primarily responsible for all Rent, the condition of the Leased
Premises and the performance of all obligations under this Lease shall remain unchanged and
shall continue in full force and effect whether or not Landlord shall have knowledge or have
been notified of or consented to any assignment. Sale of a majority interest in Tenant shall be
deemed an assignment within the meaning of this provision. This Lease may be assigned by
Landlord upon written notice to Tenant.
14. ALTERATIONS.
Tenant, at Tenant's expense, may from time to time during the Term of this Lease make
any non-structural interior alterations, additions, or improvements in and to the Leased
Premises which Tenant may deem advisable. Except as otherwise contained herein, Tenant
shall not make any structural alterations or remove or demolish any part of the Leased
Premises or make any other alterations, additions or improvements to the Leased Premises
without first having the consent, in writing, of Landlord, which consent shall not be
unreasonably withheld or delayed. Any improvements, additions or alterations made by
Tenant, including any and all fixtures permanently installed, and all signage shall remain on the
Leased Premises as the property of Landlord, at the expiration or earlier termination of this
Lease. All alterations, additions, or improvements shall be made in a first class workmanlike
manner and in accordance with all valid requirements of municipal or other governmental
authorities.
15. LIENS.
Unless Tenant shall contest the validity thereof as hereinafter provided, Tenant shall not
allow any lender's, mechanic's, materialman's, or other liens to be filed against the Leased
Premises or any part thereof, including fixtures, as a result of any act or omission by Tenant.
Tenant may contest, by appropriate proceedings, the amount, validity or application of any
mechanic's, materialman's, or other lien filed against the Leased Premises or any part thereof
as a result of any act or omission by Tenant so long as (a) no part of the Leased Premises
would be subject to loss, sale or forfeiture before determination of such contest, (b) Landlord is
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not subject to any criminal penalty as a result of the failure to pay such lien, and (c) Tenant
conducts all such contests, at Tenant's expense, with due diligence and in good faith. Tenant
agrees to save Landlord harmless on account of any claim or lien of mechanics, materialmen or
others in connection with any alterations, additions or improvements of or to the Leased
Premises as a result of any act or omission by Tenant.
16. MAINTENANCE AND REPAIR.
(a) This is a "net -net -net" lease. Tenant shall continuously keep, operate
and maintain in good condition, appearance and repair and make any replacements to,
except as otherwise provided herein, each and every part and portion of the Leased
Premises at its own expense whether interior or exterior, structural or nonstructural,
ordinary or extraordinary, foreseen or unforeseen, which may be necessary in order to
keep the building Improvements and other portions of the Leased Premises in good
order and condition, whether required pursuant to law, rules, regulations or ordinances
now existing or hereafter enacted, including, but not limited to, full responsibility for:
(i) the roof, gutters, downspouts, exterior and interior walls, ceilings, stairways,
foundation and structural portions of the building; (ii) the heating and air-conditioning
units and all other mechanical equipment, plumbing, sprinklers, utility lines and
systems, electrical systems, wiring, lighting, security and smoke detection systems; (iii)
all doors, windows and skylights and all plate glass; (iv) sidewalks, ramps, walkways,
drainage systems, and retention basins located within the legal property boundaries of
the Leased Premises as depicted in the attached Exhibit A; (v) fences and signs; (vi)
specific landscaping to the extent located between the east side of the building and the
public sidewalk, between the east side patio fence and the sidewalk, up to two feet from
the north side of the building and north side fence and on the southside of the rear door
sidewalk to the property line and all areas within those boundaries; and (vii) each and
every other portion of the Leased Premises. The Landlord shall be solely responsible
for making all capital replacements that have an estimated useful life greater than the
remaining lease term, but the Landlord shall, in such case, be entitled to charge Tenant
a prorated cost of such capital replacements during each year of the remaining Lease
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term based on the useful life of the capital replacement pursuant to Landlord's
reasonable determination.
(b) Tenant has possessed the Leased Premises since October 19, 1998 and
has fully inspected and investigated the ground and the Improvements, and therefore,
Tenant shall take the property "as is" and "with all faults." Tenant shall at all times
keep the Leased Premises and Improvements in a clean and neat condition, free of dirt,
debris and other refuse and shall keep the sidewalks clear, clean and unobstructed in
any way and free from ice and snow and shall likewise maintain any plantings,
shrubbery, flower beds and grass in suitable condition and appearance, all at Tenant's
sole expense. Tenant shall surrender the Leased Premises, at the expiration of the term
or at such other time as Tenant may vacate the Leased Premises, broom clean and in its
improved condition in good order, condition and repair, excepting only ordinary wear
and tear. At the time Tenant surrenders the Leased Premises, Tenant is only entitled to
remove furniture and personal property. Tenant is not permitted to remove any fixtures
regardless whether such fixtures were installed by Tenant, unless otherwise agreed
upon by the Landlord.
At or before the end of the Primary or Renewal Term, Tenant shall repair any
and all injury done by the installation or removal of furniture, fixtures, or personal
property, excepting only ordinary wear and tear. Should Tenant fail to surrender the
Leased Premises as herein provided, Landlord may restore the Leased Premises to such
condition and make any necessary repairs or replacements, all at Tenant's expense.
(c) Landlord shall not be required to rebuild or to make any repairs,
alterations, replacements or renewals of any nature or description to the Leased
Premises or to make any expenditures whatsoever in connection with this Lease or to
maintain the Leased Premises in any way unless the necessity for such is caused by an
act or omission of Landlord, its agents or employees.
(d) Except for damage caused by the negligence or willful misconduct of
Landlord or Landlord's agents, employees or representatives, Landlord shall not be
responsible or liable to Tenant for any loss or damage resulting from any cause
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whatsoever, including, but not limited to, any loss or damage from any burst, stopped or
leaking water, gas, sewer or other pipes or plumbing fixtures or equipment, or from any
failure of or defect in any lighting, electrical, or heating, ventilation and air
conditioning components, circuits, facilities or systems.
(e) If Tenant fails to perform any of its obligations as above referred to or
has failed to commence in good faith to perform those obligations and diligently pursue
completion of same, then on not less than ten (10) days' notice to Tenant, Landlord
may (but shall have no obligation to) enter the Leased Premises and perform such
obligations without liability to Tenant for any loss or damage to Tenant thereby
incurred, and Tenant shall pay Landlord for the cost thereof, within seven (7) days of
receipt of Landlord's invoice therefor. Notwithstanding the above, Landlord shall not
have the obligation to give the ten (10) day notice referred to above if it chooses to
make repairs brought about by reason of an emergency.
17. LANDLORD'S SECURITY/LIEN WAIVER
As a condition of Landlord entering into this Lease, Landlord shall have a first lien on
all of Tenant's personal property to secure the performance of all of Tenant's obligations under
this Lease; provided however, that Landlord's lien shall be subordinate to purchase money
security interests and the liens of any lessors of personal property of the Tenant and Landlord
shall execute and deliver to Tenant's secured purchase money lenders any Landlord's lien
waivers or other documents reasonably required by such lenders to perfect their security
interests and liens in Tenant's assets. Landlord's lien shall be superior to all other liens on the
personal property and Tenant shall execute and deliver to Landlord any financing statements or
other documents reasonably required by Landlord in order to perfect Landlord's lien.
18. FIRE AND RECONSTRUCTION.
Tenant shall use every reasonable precaution against fire and shall, in case of fire or
other casualty, give immediate notice thereof to Landlord. In case of fire or other casualty,
Tenant shall, at its own expense, cause the damage to be promptly repaired and the
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Improvements reconstructed at the cost and expense of Tenant; provided, however, Tenant
shall be entitled to use the insurance proceeds available by reason of such loss.
(a) Damage and Repair. Tenant may at its expense, either promptly repair,
replace, or rebuild such building or other Improvement or delay the commencement of
the work until the proceeds of all insurance policies covering the casualty or hazard are
made available to it for such purpose. Tenant shall continue the commenced work with
reasonable diligence until its completion.
(b) Specifications and Approvals. Tenant shall make the repair,
replacement, or rebuilding in accordance with applicable plans and specifications. The
plans and specifications shall first be submitted to and approved in writing by Landlord,
which approval shall not be unreasonably withheld or delayed. Before any work is
commenced, the plans and specifications shall be filed with and approved by all
applicable municipal or other governmental authorities, and, if so required by the terms
of any mortgage on the Leased Premises, Tenant shall obtain and deliver to Landlord
the written consent of any present mortgagee. Landlord shall join in any application to
the mortgagee for such consent, and use all reasonable efforts to obtain it. Before
commencing the work, Tenant shall procure at its expense, and deliver to Landlord, all
policies of insurance usually required in connection with such work.
(c) Insurance Proceeds Escrow. For the purpose of paying the cost of
repair, replacement, or rebuilding the Improvements, Landlord and Tenant shall
maintain the insurance proceeds for such purposes in an escrow account and disburse
the same during the course of the work. If such proceeds are insufficient to pay the cost
of the work, Tenant shall pay the deficiency. If such proceeds exceed the cost of such
work, Landlord and Tenant shall retain the excess in an escrow account until such
proceeds can be used for the benefit of the Leased Premises.
(d) Mortgages. If the holder of any existing mortgage elects to apply any
insurance proceeds towards the reduction of the mortgage, Landlord shall make
available to Tenant, for the sole purpose of the repair, replacement, or rebuilding for
which Tenant is obligated, an amount equal to the total insurance proceeds retained by
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such mortgagee. If Landlord fails to do so within a reasonable time after final
settlement of the loss with the insurers, Tenant may complete the repair, replacement,
or rebuilding and deduct the amount not reimbursed against the Rents next due.
(e) Continuation of Lease. This Lease shall not terminate or be affected in
any manner by reason of the damage or destruction, by fire or other casualty, in whole
or in part, of the Leased Premises or by the reason of the untenantability of the Leased
Premises, unless the property cannot be rebuilt or restored through no fault of the
Tenant. During any period in which Tenant is unable to make use of the Leased
Premises due to damage or destruction, Tenant shall have no obligation to pay the Rent
specified in this Lease during such period of untenantability, but Tenant shall continue
to remain obligated to pay all other charges payable hereunder (such as real estate
taxes, insurance, utilities, etc.), in accordance with the terms of this Lease, without
abatement, diminution, or reduction of Rent on account of any such damage or
destruction.
19. TENANT'S DEFAULT.
If Tenant shall default in the payment of any Rent or any other monetary obligation
provided for herein and such default shall continue for ten (10) days after written notice from
Landlord of such default; or if Tenant shall fail to make any payment required by this Lease on
or before ten (10) following the due date (without regard to any notices) and Landlord has
previously given two (2) Late Notices within the eighteen (18) month period ending with the
month in which such due date occurs; or if Tenant shall fail for a period of thirty (30) days
after written notice by Landlord to comply or commence compliance in good faith with any of
the other terms, covenants or conditions of this Lease; or if Tenant shall abandon or vacate the
Leased Premises or any part thereof before the end of the Term, or if Tenant shall be
adjudicated bankrupt or insolvent according to law; or if a receiver is appointed for Tenant's
property; or if Tenant shall make an assignment for the benefit of creditors; or in the event of
an involuntary assignment or attachment on or levy on Tenant's interest herein; or if Tenant
shall fail to obtain or maintain at all times insurance required of Tenant by this Lease, then and
in any of said cases, Tenant shall be deemed to have materially breached this Lease and shall
be in default hereof, and Landlord may, at its election at any time thereafter, declare all of the
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balance of the Rent for the remaining Term of this Lease immediately due and payable. In
addition, Landlord may have the following remedies:
(a) Landlord may lawfully enter upon the Leased Premises or any part
thereof and repossess the same as of the former estate of Landlord and expel Tenant
and those claiming under and through Tenant, and remove Tenant's effects, without
being deemed guilty of any manner of trespass, or liable for any claim for damages and
without prejudice to any remedies which might otherwise be used for arrears of rent or
breach of covenants, and upon entry as aforesaid, this Lease shall terminate, in which
event Tenant shall remain liable for any Rent (as provided for, and not in addition to,
Tenant's obligation for unpaid Rent as stated in the preceding paragraph) and damages
which may be due or sustained prior thereto, and all reasonable costs, professional fees
and expenses incurred by Landlord in leasing the Leased Premises to another tenant,
and the Tenant shall further be liable for liquidated damages (as provided for, and not in
addition to, Tenant's obligation for unpaid Rent as stated in the preceding paragraph)
equal to the total rent which, but for termination, would have become payable during
the unexpired portion of the Term remaining at the time of such termination, less the
amount of rental, if any, which Landlord may receive during such period from others to
whom the Leased Premises may be rented on such terms and conditions and at such
reasonable rental as Landlord, in Landlord's reasonable discretion, shall deem proper.
Such liquidated damages shall be payable immediately upon termination of this Lease
under this section or, at Landlord's election, in equal monthly installments during what
would have been the unexpired Term of this Lease, but for such termination.
(b) Without terminating this Lease, Landlord may enter upon and take
possession of the Leased Premises, expel or remove Tenant and any other person who
may be occupying the Leased Premises, and lease the Leased Premises, if possible, as
Tenant's agent, at the best price obtainable by reasonable efforts, and in such event,
Tenant shall be liable to Landlord for any deficiency (as provided for, and not in
addition to, Tenant's obligation for unpaid Rent as stated in the preceding two
paragraphs) between (i) the amount of Rent due hereunder plus the reasonable costs to
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Landlord of the recovering and reletting of the Leased Premises, including reasonable
attorney's fees, and (ii) the rental received by Landlord, if any, from such reletting.
(c) Tenant shall pay on demand all reasonable costs and expenses, including
reasonable attorney's fees and court costs incurred by Landlord in the collection of
Rent or the enforcement of any of the provisions of this Lease, less any amounts which
Landlord may receive from others to whom the Leased Premises may be rented during
the remaining term of Tenant's Lease, but only to the extent that such amounts exceed
the Rents Tenant is liable for as stated in the preceding three paragraphs.
(d) The remedies provided in this Lease shall be cumulative and in addition
to those which Landlord might otherwise be entitled either at law or in equity.
20. WAIVER BY LANDLORD.
Waiver by Landlord of any breach of the terms hereof by Tenant or any indulgence by
Landlord of Tenant as to the time of payment of any installment of Rent or the performance of
any obligation at any time, or from time to time, shall not be construed to be a waiver of any
subsequent breach or imply any future indulgence. Acceptance of any installment of rent or
other payment in an amount less than the total then due shall not constitute a waiver of any of
Landlord's rights under this Lease, and no such payment shall be deemed to satisfy Tenant's
obligation to pay the full amount of all payments when due.
21. NOTICES.
Any notice, demand or declaration required or which may be given pursuant to this
Lease shall be in writing and shall be sent by facsimile, transmission receipt confirmed, and
shall be deemed given when also (i) served personally in hand to the addresses listed below, or
(ii) served by hand delivery to the persons listed below, or (iii) deposited with an overnight
courier service with guaranteed next business day delivery, or (iv) deposited in the United
States mail, registered or certified, return receipt requested, with postage prepaid and addressed
as follows:
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To Landlord: City of Dublin
c/o Dana L. McDaniel
5200 Emerald Parkway,
Dublin, Ohio 43017
Email: DMcDaniel@dublin.oh.us
With copy to: Jennifer D. Readler, Esq.
Law Director City of Dublin
One Columbus Center, Suite 2300
Columbus, Ohio 43215-3484
Email: JReadler@tbtlaw.com
To Tenant: GTN Corporation
4482 Dunleary Drive,
Dublin, Ohio 43017
Email: timp@columbusxncom
With copy to: Charles A. Koenig, Esq.
Koenig & Long
5354 North High Street
Columbus, Ohio 43214
Email: ckoenig@klattomeys.com
The above notwithstanding, the purpose of this Section is to insure that reasonable steps
are taken to deliver actual notice and therefore any notice actually received or affirmatively
refused shall be effective. Either Landlord or Tenant may, by like notice at any time and from
time to time, designate a different address at which notice shall be sent. The Parties or their
respective attorneys, may send any notice hereunder.
22. QUIET ENJOYMENT OF TENANT.
Subject to the terms, conditions and covenants contained herein, Landlord covenants
that Tenant, upon paying the Rent and complying with the terms, covenants and conditions
herein, shall and may peaceably and quietly have, hold and enjoy the Leased Premises for the
Term aforesaid.
23. HOLDING OVER.
In the absence of a written agreement to the contrary, if Tenant should remain in
occupancy of the Leased Premises after the expiration of the Lease, or any formal extension
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thereof, Tenant shall remain only as a tenant from month-to-month. Tenant shall pay to
Landlord a monthly Base Rent equal to the Base Rent specified in this Lease plus fifty percent
(50%) thereof for each month that Tenant holds the Leased Premises without written
agreement after the expiration or termination of this Lease, and all applicable provisions of this
Lease shall also be applicable during such month-to-month tenancy, including Tenant's
obligation to pay Additional Rent.
24. CONDEMNATION.
If the whole or any part of the Leased Premises shall be taken under the power of
eminent domain, then this Lease shall terminate as to the part so taken on the day when Tenant
is required to yield possession thereof, and Tenant shall make such repairs and alterations as
may be necessary in order to restore the part not taken to useful condition; the Base Rent shall
be reduced proportionately as to the portion of the Leased Premises so taken. Tenant shall be
entitled to compensation for such taking only to the extent of the cost of such repairs and
alterations. If the amount of the Leased Premises so taken is such as to impair substantially the
usefulness of the Leased Premises for the purposes for which the same are hereby leased, then
either Party shall have the option to terminate this Lease as of the date when Tenant is required
to yield possession. All compensation awarded for such taking of the fee and the leasehold
shall belong to and be the property of the Landlord; provided, however, that the Landlord shall
not be entitled to any portion of the award made to the Tenant for loss of business, relocation
benefits, for the cost of removal of stock and fixtures, and for the cost of the repairs and
alterations referred to hereinabove.
25. LIMITATION OF LANDLORD'S LIABILITY; OPTION TO PURCHASE.
The term "Landlord" as used in this Lease so far as covenants or obligations on the part
of Landlord are concerned shall be limited to mean and include only the owners at the time in
question of the fee simple title to the Leased Premises and in the event of any transfer or
transfers of such fee simple title, the then grantor of the fee simple title shall be automatically
relieved after the date of such transfer or conveyance of all personal liability as respects the
performance of any obligations on the part of Landlord contained in this Lease thereafter to be
performed, it being intended hereby that all the obligations contained in this Lease on the part
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of Landlord shall be binding upon Landlord only during and in respect of its respective period
of ownership of the fee simple interest in the Leased Premises.
26. LEASEHOLD ESTATE LIMITATION.
Notwithstanding any provision in this Lease to the contrary, Tenant agrees that Tenant
shall look solely to Landlord's interest in the real property under this leasehold estate in the
event of any default or breach by Landlord with respect to any of the terms and provisions of
this Lease on the part of the Landlord to be performed or observed, and no other assets of
Landlord shall be subject to levy, execution, or other judicial process of and/or award for the
satisfaction of any claim by Tenant.
27. TENANT'S WAIVER OF CLAIMS.
Unless caused by the negligence or willful misconduct of Landlord, or Landlord's
agents, employees or representatives, Landlord shall not be liable for, and Tenant hereby
releases Landlord from any and all claims for and damage to person or property sustained by
Tenant or any person claiming through Tenant resulting from any fire, accident, occurrence or
condition in or upon the Leased Premises (including all Improvements, the patio, walkways
and land) of which they are a part.
28. ATTORNMENT.
If the interest of Landlord shall be transferred to and owned by any Party other than
Landlord, including but not limited to a Mortgagee by reason of foreclosure or other
proceedings brought by a Mortgagee (the "Purchaser"), or by any other manner, and the
Purchaser succeeds to the interest of Landlord under this Lease, Tenant shall be bound to the
Purchaser, and Purchaser shall be bound to Tenant under all of the terms, covenants and
conditions of this Lease for the balance of the Term remaining and any extensions or renewals
thereof which may be effected in accordance with any option therefor afforded to the Tenant
with the same force and effect as if the Purchaser were the Landlord, and the Tenant does
hereby attorn to the Purchaser as its Landlord, said Attomment to be effective and self -
operative without the execution of any further instruments on the part of a Party hereto
immediately upon the Purchaser succeeding to the interest of Landlord under this Lease. The
21
respective rights and obligations of the Tenant and the Purchaser upon such Attornment, to the
extent of the then remaining balance of the Term of this Lease and any such extensions and
renewals, shall be and are the same as now set forth in this Lease.
29. OPPORTUNITY TO CURE DEFAULT AND NOTICE TO MORTGAGEE.
Tenant agrees that if Tenant has notice of any deed of trust, mortgage or other security
instruments affecting the Leased Premises, or any part thereof, in the event of any act or
omission which would give Tenant the right to terminate this Lease or to claim a partial or total
eviction from the Leased Premises (either actual or constructive), Tenant shall not exercise any
such right (a) until it has notified in writing the holder of any such mortgage or other security
instruments if the name and address of such holder shall previously have been furnished by
written notice to Tenant, of such act or omission, and (b) until the same period of time as is
given to Landlord under this Lease to cure such act or omission shall have elapsed following
such giving of notice to Mortgagee and following the time when Mortgagee shall have become
entitled under the Mortgage to remedy the same.
30. SUBORDINATION OF LEASE TO MORTGAGE.
On written request by Landlord, Tenant shall execute and deliver an agreement
subordinating this Lease to any mortgage upon the Leased Premises; provided, however, such
subordination shall be upon the express condition that the validity of this Lease shall be
recognized by the Mortgagee, and that, notwithstanding any default by the Mortgagor with
respect to said mortgage or any foreclosure thereof, Tenant's possession and right of use under
this Lease in and to the Leased Premises shall not be disturbed by such Mortgagee unless and
until Tenant shall be declared in default of any of the provisions hereof, and/or this Lease or
Tenant's right to possession hereunder shall have been terminated in accordance with the
provisions of this Lease.
31. ESTOPPEL CERTIFICATE.
Within ten (10) days following receipt of a written request from Landlord, Tenant shall
execute, acknowledge and deliver to Landlord or to any prospective lender or purchaser
designated by Landlord, a written statement certifying (i) that this Lease is in full force and
22
effect and unmodified or, if modified, stating the nature of such modification, (ii) the date to
which rent has been paid, (iii) that there are not, to Tenant's knowledge, any uncured defaults,
or specifying such defaults, if any are claimed, and (iv) such other information as may
reasonably be requested. In the event Tenant fails to execute such written statement, then
Tenant hereby gives Landlord Tenant's power of attorney to prepare and execute in behalf of
Tenant such estoppel certificate.
32. ESCROW PAYMENTS.
If Landlord is required to escrow tax, insurance and any other payments with its
mortgage lender or lenders from time to time, then if Tenant shall pay such expense or
expenses under the terms of this Lease, it will pay them to Landlord at such times and in such
amounts so that Landlord will be able to promptly pay them over to its mortgage lender or
lenders.
33. LITIGATION.
In the event that Landlord shall, without fault on Landlord's part, be made a party to
any litigation commenced against Tenant for any claim arising out of any act or failure to act
when such act is required to be performed by Tenant pursuant to the terms of this Lease, then
Tenant shall furnish legal representation (with counsel approved by Landlord) and pay all costs
and expenses incurred in connection with such litigation and otherwise hold Landlord harmless
thereon.
34. TENANT SHALL HOLD LANDLORD HARMLESS.
Tenant shall indemnify and hold Landlord harmless from any loss, costs, claim, fee,
expense, liability or damage, including reasonable attorney's fees arising out of, or connected
with Tenant's use and occupancy of the Leased Premises, or arising out of any breach or
default of Tenant in the payment or performance of its obligations under this Lease or the
enforcement of any provision of this Lease.
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35. TRIPLE NET LEASE.
This Lease shall be deemed an absolute or "Triple Net" Lease, and whether or not
specifically mentioned in this Lease, Tenant shall make all payments connected with or arising
out of any use or occupancy of the Leased Premises.
36. BROKERS' COMMISSION.
Each of the Parties represents and warrants that there are no claims for brokerage
commissions or finders fees in connection with the execution of this Lease. Tenant shall
indemnify the Landlord, and hold harmless from all liabilities arising from any such claim
including, without limitation, the cost of counsel fees in connection therewith.
37. RELATIONSHIP OF THE PARTIES.
Nothing contained in this Lease shall be deemed or construed by the Parties or by any
third party as creating the relationship of principal and agent, partnership or joint venture
between the Parties. Tenant is not the agent of Landlord for any purpose.
38. TIME IS OF THE ESSENCE.
Time is of the essence in all provisions of this Lease.
39. APPLICABLE LAW.
This Lease shall be construed under in in accordance with the laws of the State of Ohio.
40. CAPTIONS.
The various captions used in this Lease are for convenience of reference only and shall
not in any way limit or amplify the terms hereof.
41. SUPPLEMENTAL LEASES.
This Lease may be amended only by a supplemental lease or other writing executed by
the Parties hereto or their successors or assigns. By the execution of this Lease, Landlord and
Tenant do hereby bind themselves, their heirs, administrators, executors, successors and
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assigns, to all of its terms, covenants and conditions. The term "Landlord" or "Tenant'
includes the heirs, executors, administrators, successors, assigns, permitted assigns, committee,
curator, trustees and receivers of Landlord or Tenant, as the case may be.
42. COUNTERPARTS.
This Lease may be executed in any number of counterparts, each of which shall be an
original, but the counterparts together shall constitute one and the same instrument.
43. ENTIRE AGREEMENT.
This Lease sets forth all the promises, agreements, conditions and understandings
between Landlord and Tenant relative to the Leased Premises, and there are no other promises,
agreements, conditions or understandings, either oral or written, between them other than those
herein set forth.
[REMAINDER OF PAGE INTENTIONALLY BLANK]
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IN TESTIMONY WHEREOF, the Landlord and Tenant have executed this Triple
Net Commercial Lease Agreement in Dublin, Ohio as of the day and year first above written.
CITY OF DUBLIN "Landlord"
Dana L. McDaniel, City Manager
STATE OF OHIO
COUNTY OF FRANKLIN
GTN CORPORATION "Tenant"
Timothy Picciano, President
The foregoing instrument was acknowledged before me this day of ,
2018 by Dana L. McDaniel, City Manager for the City of Dublin, Ohio, an Ohio municipal
corporation, on behalf of the municipal corporation.
Notary Public
STATE OF
COUNTY OF
The foregoing instrument was acknowledged before me this day of ,
2018, by Timothy Picciano, President of GTN Corporation, and Ohio Corporation on behalf of
the Corporation.
Approved as to form:
Jennifer D. Readler, Law Director
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Notary Public
Exhibit A
sigh Street