LEASE AGREEMENT - FOOD CONCESSION AND RESTROOM COMPLEX
LEASE AGREEMENT
Jj
THIS LEASE AGREEMENT, made and entered into this ~of ~, 200\
by and between the CITY OF CLEARWATER, FLORIDA, a municipal corporation, whose
address is Post Office Box 4748, Clearwater, Florida 33758-4748, hereinafter referred to
as"Lessor", and Steve F. Chandler and Lisa M. Chandler, d/b/a Fields, Inc., a Florida
corporation, whose address is 332 South Gulfview Boulevard, Clearwater, Florida 33767,
hereinafter referred to as "Lessee."
WIT N E SSE T H:
That in consideration of the covenants herein contained of the granting of this
lease and the sums paid and to be paid hereunder, the Lessor hereby leases to the
Lessee and the Lessee hereby leases from the Lessor according to the terms, conditions
and covenants herein contained the following described premises located in the City of
Clearwater, Pinellas County, Florida, to wit:
Food Concession and Restroom Complex Building located on the West 140 feet
of the East 215 feet of the South % of Lot 20 Lot 18, and Lots 19 and 20, Lloyd,
White and Skinner Subdivision, in Section 7, Township 29 South, Range 15 East,
as recorded in Plat Book 13, pages 12 and 13, of the Public Records of Pinellas
County, Florida.
THE PARTIES HERETO HEREBY FURTHER COVENANT AND AGREE AS
FOLLOWS:
1. The term of this lease is for a term of 10 years, beginning on the 1st day of
January, 2005 and ending on the 31st day of December, 2014. As referred to in this
agreement, a "lease year" is that year that commences on the first day of January of
each year and terminates on the thirty-first day of December of each year during the term
of this lease. Reference to the City Manager throughout this lease refers to Lessor's City
Manager or his designated agent. The term "Lessor" refers to the City and any act to be
taken by the Lessor under this Lease must be taken by the City Council.
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2. The City Manager may cancel this lease at any time by giving 15 days prior written
notice to the Lessee, or any of his agents or his attorney, when in the opinion of the City
Manager inferior service is being offered or the terms of the minimum financial
agreement are not being met or for any other good and valid reason that in the opinion of
the City Manager might detract from Clearwater and is not in the best interest of the
people of Clearwater. Such written notice shall state in particular any and all complaints
and Lessee shall have 15 days within which to reasonably correct such complaints to the
satisfaction of the City Manager.
The Lessor retains the right to terminate this lease for any municipal need
consistent with the Lessor's charter, as well as failure to pay rent in a timely manner or
change in use of the property. This right of termination is in addition to the right of
termination set out in the first paragraph of section 2 of this Agreement.
3. The Lessee shall be allowed to sell exclusively the following merchandise at the
Food Concession Complex:
a. Hot dogs, hamburgers, and other like hot food such as French fries,
as may be prepared using the grill and fryer;
b. Ice cream
c. Cold sandwiches, both prepared and pre-packaged, cookies,
popcorn, chips and other such packaged food items.
d. Any cold or hot non-alcoholic beverage.
e. Sundry items and other personal beach recreational and clothing
items.
4. The Lessee shall have exclusive right to rent beach chairs, cabanas, umbrellas,
floats, and any other beach equipment approved by the City Manager except for the area
referred to in 4b of this Agreement. The equipment may be used on City-owned
property South of the westward extension of First Street and North of the filled area used
for parking, more particularly described as:
Lots 5 through 32, inclusive, of Lloyd, White and Skinner Subdivision, less any of
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the above-described property used now or in the future by the Lessor for other purposes.
a. Lessee shall own, maintain and store all rental equipment used on the premises
at its cost. Lessee agrees to pay Lessor, in addition to any other amounts due, 40% of
all rental income, payable monthly throughout the term of this agreement.
b. Pursuant to the Development Agreement between the Lessor
and Seachwalk Resort, LLC (fka Clearwater Seashell Resort L.C. and hereinafter
referred to as "Developer") as approved by City of Clearwater Resolution 04-35,
regarding the subject property known as the Hyatt Clearwater Seach Resort (also
referred to as "Seachwalk Resort"), the Developer will retain the exclusive rights to beach
rentals on the portion of the beach directly in front of the Seachwalk Resort property with
the following conditions:
(1) The Lessor shall retain the right to utilize Lessee as operator upon
completion of the Seachwalk Resort development provided the Lessee complies with the
standards in Exhibit A, attached hereto and made a part hereof.
(a) If Lessee fails to comply with the standards in Exhibit A, Developer
may send written notice to the Lessor specifying non-compliance,
after which the Lessor has thirty (30) days to have Lessee cure said
non-compliance.
(b) In the event that the non-compliance is not cured within thirty
(30)days, the Lessor agrees that the Developer may thereafter
provide beach rental services and shall retain all income derived
therefrom. This right of termination is in addition to the rights of
termination otherwise set forth in this Agreement.
5. The Lessee is specifically prohibited from hawking or other verbal solicitation of
any type either at the Food Concession Complex or the beach equipment rental area.
No coin-operated amusement devices or machines or any jukeboxes will be allowed. No
inside or outside loud speakers will be permitted.
6. The Lessee is responsible for the cleanliness and maintenance of the public
restrooms.
7. The hours of operation for the Food Concession Complex, beach equipment
rental concession and restrooms shall be no earlier than 6:00 a.m. and no later than one-
half hour after sunset for closing, with the minimum requirement that the Food
Concession Complex shall be open at least seventy (70) hours per week. The beach
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rental equipment shall be removed from the beach and stored by sunset. The use of
trucks and other vehicles on the beach will be permitted for distribution and pickup of
beach equipment only. The times for distribution and pickup and the conditions under
which the vehicles are operated must be authorized in writing by the City Manager.
8. The Lessor reserves the right to review and approve prices to be charged for all
sale and rental items. Prices may be modified when authorized in writing by the City
Manager. The Lessee has the right to appeal any decision of the City Manager to the
City Council. A list of current prices must be submitted within twenty (20) days of the
date of this agreement, and within twenty (20) days of any changes to such price list.
9. The Lessor will provide nine (9) parking spaces for use by Lessee's employees
during the term of this Lease, the location of which will be at the determination of the
Lessor. Lessee understands that the approved use of these spaces is subject to change
based on the impact of the Beachwalk. Lessor reserves the right to recapture these nine
(9) parking spaces as needed. .
10. The Lessee hereby covenants and agrees to pay rental thereof as follows:
a. For concessions, sundries and beachwear as follows:
(1) A guaranteed minimum rental in equal monthly payments, which will be due
and payable on the first day of each month, an amount in accordance with the
following schedule:
Years of Lease
Total Minimum Rental
Monthly Payments
1 - 10
$100,008.00 annually
$8,334.00 per month
(2) As additional rent, Lessee shall pay annually at the end of each agreement
year, the percentage specified on the amount between the figures listed
below:
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20% - Between $750,000 and $1 million in gross sales
22.5% - Between $1 million and $1.5 million in gross sales
25% - Between $1.5 million or more in gross sales
Lessee shall pay all amounts due as stated above within thirty (30) days of
the end of each agreement year. Lessee further agrees to provide Lessor within fifteen
(15) days of the end of each monthly period during the term of this agreement the
statement showing the amount of gross sales during the preceding month, as well as a
signed copy of the front and back of the Florida Department of Revenue Sales and Use
Tax Return. The statement used by the Lessee to report such sales will be in such form
as to be satisfactory to the City Manager or his designee, and must be certified as
correct by the Lessee's chief financial officer, or his designee, showing the amount of
gross sales at and/or from the demised premises during the monthly periods reported by
the statement in the amount of year-to-date gross sales for the calendar year.
(3) In the event construction of the Beachwalk requires that the leased premises
be closed and prevented from conducting business within the building for a period
exceeding ten (10) days within any month, the Lessor agrees to pro-rate the Monthly
Payments required under 1 Oa(1) to conform with the time period the business was able
to operate within any month subject to this provision.
(4) The term "Gross Sales" as used in paragraph 10a(2) means the entire amount
of actual sales price, whether for cash or otherwise, of all sales of food, services,
beverages, clothing, or other receipts whatsoever of all business conducted in, on or
from the premises, including mail or telephone orders received or filled at the premises.
No deduction shall be allowed for uncollected or uncollectible credit accounts. Such term
shall not include, however, any sums collected and paid out for any sales or excess tax
imposed by any duly constituted governmental authority wherein Lessee is regarded as
the collecting agent.
b. For beach rentals as follows:
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(1) Lessee shall pay monthly 40% of the monthly gross sales for all beach rentals.
This payment will be due within 15 days of the preceding month. The final payment
shall be made by Lessee within 15 days of end of lease term. The Lessee will provide
the Lessor within 15 days of the end of each monthly period during the term of the lease
a statement showing the amount of gross sales during the preceding month, as well as a
signed copy of the front and back of the Florida Department of Revenue Sales and Use
Tax Return. The statement used by the Lessee to report such sales will be in such form
as to be satisfactory to the City Manager or his designee, and must be certified as
correct by the Lessee's chief financial officer, or his designee, showing the amount of
gross sales at and/or from the demised premises during the monthly periods reported by
the statement in the amount of year-to-date gross sales for the calendar year.
(2) The term "Gross Sales" as used in paragraph 1 Ob(1) means the entire amount
of the actual sales price, whether for cash or otherwise, of all beach chairs, cabanas,
umbrellas, floats and other receipts whatsoever from all beach rental business conducted
in, on or from the leased premises as per this Agreement. No deduction shall be allowed
for uncollected or uncollectible credit accounts. Such term does not include, however,
any sums collected and paid out for any sales or excise tax imposed by any duly
constituted governmental authority wherein Lessee is regarded as the collecting agent.
c. The Lessee further agrees to submit an audited certification of annual gross
sales as certified to by a Certified Public Accountant within thirty (30) days of the end of
each calendar year. The scope of the audit must include the Lessee's compliance with
the terms of the lease to disclose the gross sales at or from the demised premises. The
statement shall be prepared according to generally accepted accounting principles and
practices, showing in all reasonable detail the amount of gross sales during the prior
lease year. The Lessee also agrees to provide at the same time as the statement
regarding annual gross sales pertinent depreciation and amortization schedules filed with
the Internal Revenue Service for the prior year.
d. Any amount due from Lessee to Lessor under this lease which is not paid
when due shall bear interest at the maximum allowable legal rate from date due until
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date paid, together with a late charge of 5% of any amount due, to cover Lessor's extra
expenses involved in collecting such delinquency; provided that such interest and late
charges shall be automatically reduced by such amount as necessary to cause such
charges to be in compliance with usury laws. The late charge must be paid within 30
days of the day the delinquent payment was due.
11. The Lessee hereby covenants and agrees to make no unlawful, improper, or
offensive use of the leased premises. Lessee further covenants and agrees not to
assign, mortgage, pledge, hypothecate or sublet this lease in whole or in part without the
prior written consent of Lessor. The consent of Lessor to any assignment, mortgaging,
pledging, hypothecating, or subletting shall be at the Lessor's sole discretion, and shall
not constitute a waiver of the necessity for such consent to any subsequent assignment,
mortgage, pledging, hypothecating or subletting. This paragraph shall be construed to
include a prohibition against any assignment or subletting by operation of law. If this
lease is assigned, or if the premises or any part thereof are sublet or occupied by
anybody other than Lessee, Lessor may coiled rent from the assignee, sub-tenant or
occupant, and apply the net amount collected to the rent herein required, but no such
occupancy or collection shall be deemed a waiver of this covenant, or the acceptance of
the assignee, sub-tenant or occupant as tenant, or a release of Lessee from the further
performance by Lessee of covenants on the part of Lessee herein contained. If at any
time during the term of this lease, any or all of the corporate shares of Lessee shall be
transferred by sale, assignment, bequest, inheritance, operation of law or other
disposition so as to result in a change in the present effective voting control of Lessee by
the person, persons or entity which presently is the ultimate owner of a majority of such
corporate shares on the date of this lease, Lessee shall promptly notify Lessor in writing
of such transfer and shall provide to Lessor the name, address, financial statement and
business experience resume for the immediate preceding ten (10) years of the proposed
assignee. This information shall be in writing and shall be received by Lessor at its sole
discretion shall have the option of accepting the proposed assignee and can charge a
reasonable fee to Lessee for processing such request. Lessee can request a transfer
under this provision no more than once in an agreement year unless specifically
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consented to in writing by Lessor.
If the new owner is a private or public corporation, Lessor shall promptly advise
Lessee if it has any objections th~reto and the reasons therefore. Lessor may terminate
this lease any time after such change in control by giving Lessee ninety (90) days prior
written notice of such termination, such notice to be provided within thirty (30) days
following the time period provided to Lessee. Lessee shall not permit any business to be
operated in or from the premises by any concessionaire or Licensee.
12. Lessee agrees that it will promptly pay all ad valorem real property taxes and
personal property taxes that may be assessed against the leased premises during the
term of this agreement. Lessee further agrees that it will pay any state sales tax due on
the rental payment made by the Lessee to the Lessor and that it will pay all other taxes,
including, but not limited to, occupational license, beverage license, and permits relating
the operation of the business conducted on the leased premises, which are required by
law. It is further agreed by the Lessor that nothing herein shall obligate Lessee to payor
to reimburse Lessor for the payment of assessments for permanent improvements,
including but not limited to sidewalks, sewers, and streets, that would normally accrue to
the demised premises.
13. The Lessee hereby covenants and agrees to pay all bills for electrical current,
gas, water, heat, refuse collection, and other services to the premises when due.
14. The Lessor will coordinate exterior improvements to the facility with the Lessee
to match the forthcoming "Beach Walk" design criteria. The Lessor will construct
required structural repairs exterior to the retail portion of the building to include ADA
improvements required, replacement of the existing decking and restroom renovations.
These repairs and code compliance items are anticipated to be completed prior to 1
January 2005. The Lessee will be required to make any interior changes in the kitchen,
food service and retail spaces to ensure ADA compliance and facilitate their operation of
the facility. A list of code compliance issues both interior to the retail space and exterior
including restrooms and ramps has been provided to Lessee and attached as Exhibit B.
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15. The Lessee shall provide a maximum of 6 foot by 6 foot and minimum 4 foot by 4
foot shadowbox display space to the Clearwater Marine Aquarium for public information
about the aquarium, its mission and location.
16. Lessee will use biodegradable materials whenever feasible.
17. Lessee will provide all equipment and merchandise necessary for the operation
of the concession complex. In addition to the items in paragraph 13, the Lessee will pay
all normal day-to-day repairs and maintenance costs, being certain that any material
used in repair and maintenance will be equal to or better than that originally provided,
and all required insurance premiums.
18. Lessee will be responsible for picking up and disposing of all trash, garbage, and
other debris, whether or not initiated from the sales of the food complex, within 100 feet
of the leased premises. Lessee is authorized to place trash cans in the immediate area
of the leased premises, said trash cans to be maintained by the Lessee.
19. (a) Lessee agrees to indemnify and hold Lessor and its employees harmless
from and against any and all claims, demands, and causes of action or lawsuits of
whatever kind or character arising directly or indirectly out of this agreement and/or
performance hereof. This indemnity clause includes, but is not limited to, claims,
demands, causes of action or lawsuits for damages or injuries to goods, wares,
merchandise and property and/or for any bodily or personal injury or loss of life in, upon
or about the leased premises, or the surrounding premises the Lessee is required to
maintain or which the Lessee uses in connection with the business operated at, on or
from the leased premises. All personal property, including trade fixtures, in the leased
premises shall be at the risk of Lessee, and Lessor shall not be liable for any damage to
such property arising from any cause including, but not limited to, bursting, leaking or
accidental operation of water or sewer pipes; roof leaks or flooding.
Lessee agrees to investigate, handle, provide defense for and defend any such claims,
demands, causes of action or lawsuits at its sole expense and agrees to bear all other
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costs and expenses related thereto, even if the claim, demand, cause of action or lawsuit
is groundless, false or fraudulent. In any cases in which such indemnification violates
any applicable legal prohibition, the foregoing provisions concerning indemnification shall
not be construed to indemnify the City for damage arising out of bodily injury to persons
or for damage to property caused by the sole active negligence of the City or its
employees.
(b) Lessee shall at his own expense purchase or maintain during the term of this
agreement, the insurance coverage's set out below:
1. Property Insurance - (Real property including improvements and/or additions).
a. .Eo.rm - All Risk Coverage - Coverage is to be no more restrictive than
that afforded by the latest edition of Insurance Services Office Forms
CFOOO 11, CF0420, and CF121 O.
b. Amount of Insurance - The full insurable value on replacement cost
basis.
c. Flood Insurance -Flood insurance must be provided for the Lessor of
the total insurable value of such buildings or structures, or, the
maximum of flood insurance coverage available under the National
Flood Program.
d. The City of Clearwater, as Lessor, shall be named as an additional
insured.
2. Boiler and Machinery Insurance - If the buildings or structures include
boilers(s), pressure vessel(s), an/or air conditioning/heating equipment, Lessee
shall maintain comprehensive insurance covering loss on the demised property
including liability for damage to property of others.
a. Repair and replacement.
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b. Amount of insurance - $1,000,000 per accident.
c. The City of Clearwater, as Lessor, shall be named as an additional
insured.
3. Comprehensive General Liability - Coverage must be afforded on a form no
more restrictive than the latest edition of the Comprehensive General Liability
Policy filed by the Insurance Services Offices and must include:
a. Minimum limits of $1,000,000 per occurrence combined single limits for
Bodily Injury Liability, Property Damage Liability, and Product Liability.
b. Premises and/or operations.
c. Independent contractors.
d. Products and/or completed operations.
e. Personal injury coverage with employee and contractual exclusions
removed, including coverage for liability resulting from the dispensing of
alcoholic beverages, if Lessee at any time during the term of this lease
obtains a license to serve any type of alcoholic beverages.
f. The City of Clearwater, as Lessor, shall be named as an additional
insured.
4. Business Auto Policy - Coverage must be afforded on a form no more
restrictive than the latest edition of the Business Auto Policy filed by the
Insurance Services Office and must include:
a. Minimum limits of $1 ,000,000 per occurrence combined single limits for
Bodily Injury Liability, Personal Injury, and Property Damage Liability, if
vehicle is used in conjunction with the business.
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b. Coverage on all vehicles (owned, hired and non-owned).
c. The City of Clearwater, as Lessor, shall be named as an addition
insured.
5. Workers' Compensation - Coverage to apply for all employees for statutory
limits in compliance with the applicable State and Federal laws, and Employer
Liability. In addition, the policy must include Employers' Liability with a limit of
$500,000 each accident. If the self-insured status of the Lessee is approved
by the State of Florida, the Lessor agrees to recognize and accept same upon
proof of such approval.
(c) In addition, Lessee shall provide to the Lessor the following:
(1) Complete copies of all insurance policies required by this agreement.
(2) Not less than thirty (30) days notice of cancellation or restrictive
modifications of any insurance policy providing the coverage required
by this agreement.
20. If at any time during the term of this lease, the building or premises or any part,
system or component hereof (hereinafter, the "demised premises") shall be damaged or
destroyed, said demised premises and any additions or improvements thereto, shall be
promptly repaired or rebuilt or restored by the Lessee to the condition as good as the
same was immediately prior to such damage or destruction at the Lessee's risk and
expense, and in accordance with plans and specifications mutually agreed upon at the
time; or if none can be agreed upon, then in accordance with the original plans and
specifications and any subsequent plans and specifications for any additions or
improvements constructed prior to the damage. The work of restoration of rebuilding
shall be in full compliance with all laws and regulations and government ordinances
applicable thereto. The insurance proceeds shall be paid to the Lessor, and such
proceeds will be used for the repair or restoration. Any cost of repairs or restoration in
excess of the insurance proceeds shall be borne by the Lessee. Any insurance
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proceeds in excess of the cost of repairs or restoration shall belong to the Lessee.
During the period of such damage or destruction, whether in whole or in part, the
monthly guaranteed rent shall abate for no more than 120 days or until commencement
of business, after receipts of all building permits, whichever is sooner. Lessor shall not
withhold unreasonably building permits Lessee applies for and are necessary to repair
such damage or destruction.
If the demised premises shall be totally destroyed or so damaged as to render it
practically useless during the term of this lease, then and in that event, the Lessee or
Lessor may terminate this lease as of the date of such damage, or upon thirty (30) days
written notice to the other party to this lease. In the event of such destruction and except
as otherwise specifically provided under this agreement, both parties waive any and all
rights of recovery against each other for any direct or indirect loss occurring to the
demised premises.
21. Lessor, at its option, may exercise anyone of the remedies provided in
subsection f of this paragraph, except as otherwise provided herein, upon the happening
of anyone or more of the following events ("Events of Default"):
a. Lessee's default in the payment of any rental or other sums due for a period of five
(5) days after the due date;
b. Lessee's continued default with respect to any other covenant of this lease for a
period of fifteen (15) days after receipt of written notice of such default by Lessee from
Lessor, provided that if such default reasonably required more than fifteen (15) days to
cure, there shall be no Event of Default if Lessee has commenced correcting action
within the fifteen (15) day period and is diligently pursuing such action;
c. There shall be filed by or against Lessee in any event pursuant to any statute
wither of the United States or of any state, a petition in bankruptcy or insolvency or for
reorganization or arrangement, or for the appointment of a receiver or trustee of all or a
portion of Lessee's property, or if the Lessee makes an assignment by operations of law,
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or if Lessee makes application to Lessee's creditors to settle or compound or extend the
time for payment of Lessee's obligations, or if execution, seizure, or attachment for a
period of 120 days. Failure to remove the levy, seizure or attachment within the 120-day
period shall actuate the default provided by this paragraph and the bond posted shall be
forfeited.
d. Lessee's vacating or abandoning the premises;
e. Lessee's understating gross sales by more than three (3) percent in sales reports
given to Lessor. An error occurring by reason of computer malfunction, typing, or other
similar clerical error shall not be considered a default within the meaning of this
paragraph.
f. Lessor, at its option, may exercise anyone or more of the following remedies which
shall be cumulative.
1. Terminate Lessee's right to possession under this lease and reenter and take
possession of the premises, reletting or attempt to relet shall only involve a
prospective tenant capable of providing comparable or better type services, at
such rent and under such terms and conditions as Lessor may deem best
under the circumstances for the purpose of reducing Lessee's liability, and
Lessor shall not be deemed to have thereby accepted a surrender of the
premises, and Lessee shall remain liable for all rents and additional rents due
under this lease and for all damages suffered by Lessor because of Lessee's
breach of any of the covenants of this lease. Said damages shall include, but
not be limited to, charges for removal and storage of Lessee's property,
remodeling and repairs, leasing, commissions and legal fees, and loss of
prospective percentage rentals by Lessor. Said prospective percentage rents
shall be calculated on the basis of Lessee's gross sales for the immediately
preceding twelve (12) month period or for the period, adjusted on an
annualized basis, commencing with the first day of this lease if this lease has
not been in effect for twelve (12) months. In addition to its remedies
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hereunder, Lessor may accelerate all fixed rentals due under this lease, in
which event the Lessee shall be liable for all past due rent, accelerated rent
and damages as described above; however with respect to the accelerated
rent, Lessor shall receive only the present value of such accelerated rent. At
any time during repossession and reletting pursuant to this subsection, Lessor
may, by delivering written notice to Lessee, elect to exercise its option under
the following subsection to accept a surrender of the premises, terminate and
cancel this lease, and retake possession and occupancy of the premises on
behalf of Lessor.
2. Declare this lease to be terminated, whereupon the term hereby granted and
all right, title and interest of Lessee in the premises shall end and Lessor may
re-enter upon and take possession of the premises. Such termination shall be
without prejudice to Lessor's right to collect from Lessee any rental or additional
rental which has accrued prior to such termination together with all damages,
including, but not limited to the loss of prospective percentage rentals, suffered
by Lessor because of Lessee's breach of any covenant under this lease.
3. Exercise any and all rights and privileges that Lessor may have under the laws
of the State of Florida and/or the United States of America.
22. Lessee shall secure prior written approval from Lessor for modifications or
remodeling of existing facilities or for the construction of any new facilities, such approval not to
be unreasonably withheld or delayed. The terms remodeling or modifications as used herein
shall include only those events requiring the issuance of a building permit. It is agreed that the
existing improvements, together with any improvements constructed by Lessee during the term
of this lease on the demised premises, shall become the property of the Lessor upon the
expiration or termination of this lease; provided, however, that said reference to improvements
herein contemplates improvements to the real estate which become a part of the land as
distinguished from personal property utilized by the Lessee.
23. Lessee shall, at his expense, at all times during the terms of this lease, keep the
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leased premises and all improvements and facilities thereon in good order, condition, and
repair. It is specifically understood by Lessee that the Lessor has the right to inspect the leased
premises and improvements at any time to ensure that the premises and improvements are
indeed in good order, condition, and repair. Upon the termination or expiration of this lease,
Lessee shall repair any and all damages to the premises caused by the removal by Lessee of
personal property.
24. Upon the termination or expiration of the lease for whatever cause, the Lessee shall
have 15 days to remove, at his own expense, its equipment, signs, insignia, and other indicia of
its tenancy or use.
25. Lessee agrees to indemnify and save harmless the Lessor by reason of any
mechanic's lien which may be asserted as a claim against the leased property, and to furnish
Lessor a good and sufficient bond signed by a reputable bonding company doing business in
Florida, which band shall be in a amount equal to 100 percent (100%) of the cost of
construction ofthe contemplated improvements to the demised premises.
26. The Lessee hereby covenants and agrees to promptly and continuously comply with
all regulations and orders of the Health Department and health officers of the local, state, and
national governments; and Lessee hereby covenants and agrees to keep, operate, and
maintain the concession in such a manner as to preclude any warnings of major violations or
notices to show cause being issued by any regulatory agency authorized to inspect the
premises under Florida Statute 509 as it presently exists or as it may be amended. In addition,
Lessee agrees to forward to Lessor a copy of each inspection report issued in accordance with
Florida Statute 509 as it presently exists or as it may be amended within fifteen (15) days of
receiving any such reports.
27. Lessor covenants and agrees that upon payment by Lessee of the rents herein
provided, and upon observance and performance by Lessee of all the covenants, terms, and
conditions required of the Lessee by the lease, Lessee shall peaceably and quietly hold and
enjoy the leased premises for the term of the lease without hindrance or interruption by Lessor.
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28. Notices hereunder shall be given only by registered letter and shall, unless otherwise
expressly provided, be deemed given when the letter is deposited in the mail, postage prepaid,
addressed to the party for whom intended at such party's address first herein specified or to
such other address as may be substituted therefore by proper notice hereunder. Notice to be
provided to Lessor under this lease shall be directed in care of the City Attorney's Office.
29. If the Certified Public Accountant providing the annual audit required in this
agreement is not an independent Certified Public Accountant, Lessee at the City Manager's
option, agrees to make all records of gross sales pertaining to this lease available to an
independent Certified Public Accountant chosen by the City Manager, for the purpose of
confirming the fair representation of the previously submitted audits. Any such audit provided
for in this paragraph may not go back for more than three (3) years. If an independent Certified
Public Accountant, chosen by the Lessor, audits the business operated hereunder, and finds
that a fair representation of the gross revenues understates lease revenue due the Lessor, the
cost of the independent audit shall be borne by the Lessee; if the independent audit confirms
the fair representation of the Lessee or overstates lease revenue due to the Lessor, the Lessor
shall pay for the audit.
30. No sign of any type will be posted, erected, hung or otherwise placed in view of the
general public so as to advertise any product or identify the concession complex unless
permitted by the City of Clearwater Code of Ordinances, as they now exist or as they may be
amended, and unless authorized and approved by the City Manager. However, the Lessee
must provide menu-type board or boards to be placed inside the food concession area so that
they will be plainly visible to the public and list the food and drink items for sale with their
corresponding prices. Lessee also will place a sign inside the food concession area so it will be
plainly visible to the public, which states that the concession area and beach rentals are
operated by Lessee and not Lessor. The Lessor will be responsible for signs at the entrance of
the restrooms indicating appropriate gender. A sign denoting the price list of all beach
equipment rentals must be posted by the Lessee at the entrance to the rental concession area
as well as at one other point must post from which the rental of beach equipment has
heretofore been authorized.
Page 17
31. Restroom facilities must be kept clean and sanitary at all times and are subject to
inspection by Lessor. No coin-operated toilets or other coin-operated devices will be allowed in
the aforementioned restroom facilities except upon written authorization of the City Manager.
Lessee agrees to notify immediately the Lessor's Police Department at any time the Lessee
becomes aware of any activity that is a violation of a law in the area of the concession complex.
32. Lessee agrees to provide change of dollar bills to users of Lessor's parking lot so
that these users are able to deposit the coins required in the parking meters. It is the parties'
intent that the Lessee will provide said change whenever possible.
33. Lessee's exclusive right, as referenced in Section 4 of this Lease, to rent beach
equipment from the leased premises does not deny members of the public the right to bring
their own equipment for personal use.
34. All sales shall be recorded on a tape cash register and the tapes shall be maintained
three (3) years for review by Lessor's auditor. The Lessee shall maintain an adequate set of
books and records of its operation of the business of renting beach equipment and the sale of
food, beverages and sundries, and his books and records must be provided to the City Manager
at his request.
35. The Lessee will additionally provide Two Thousand Five Hundred ($2,500.00)
Dollars per year to the Clearwater Beach Patrol Lifeguards, in furtherance of supporting the
safety of visitors to Clearwater Beach. The Clearwater Beach Patrol was honored as the Beach
Patrol of the Year in March 2004, and has consistently placed first or second over the last three
years at the United States Lifesaving Association Southeast Region tournament. The lifeguard
program is a vital part of the success of Clearwater Beach and the Lessee will provide a
Twenty-Five Thousand ($25,000.00) Dollar additional benefit over the life of the lease to the
City of Clearwater.
36. Lessee shall not advertise any business not operated at, on, or from the premises
without the prior written consent of the City Manager.
37. In the event the Lessor retains an attorney to enforce any of the provisions of this
Page 18
lease, or renewals of or addenda to this lease, or to effect the enforcement of any legal right of
the Lessor against the Lessee, the Lessee agrees to pay the Lessor all costs of said
enforcement reasonably incurred, including court costs and reasonable attorney's fees.
IN WITNESS WHEREOF, the parties hereto have set their hands and seal this ~~day
Of~,200(
Countersigned:
CITY OF CLEARWATER, FLORIDA
~
By:
dJ~JL'
William B. Horne, II
City Manager
...... ~... ",,,,~ ~
Approved as to form:
~Jet==
B an . . Ruff .
Assistant City Attorney
Attest:
.. ..-_. ...
~ -- .
- . ,
.== : ....."';;- ~
.~:4.~I.ol:" . ~
Cynt ~OUdeatl/~ ~. .~
~ City Clerk \, _ / --".>__..._-,-
, ~
STEVE F. CHANDLER AND
LISA M. CHANDLER d/b/a
FIELDS, INC.
B' /~
B: ~ m. (!l1aY1
Lisa M. Chandler
A04-00382
Page 19
EXHIBIT "A"
HYATT CLEARWATER BEACH RESORT
BEACH CONCESSION CRITERIA QUALITY STANDARDS
FURNITURE (100)
Chaise lounge
Manufacturer: Tropitone Spinnaker chaise lounge chair with arms (Model #159932) (if
suitable for beach use)
Otherwise: Steamer/Deck Chair - Canvas
Manufacturer: Harrison & Todd
UMBRELLAS (60)
Aluminum pole
Cast aluminum stand-alone bases
Manufacturer: Galtech: Market Umbrella - 9' (or equal)
Sunbrella Fabric (mildew resistantlUV resistant)
CUSTOM BEACH CABANAS - 78" X 64" X 64" (40)
Marine grade fabric
SIDE TABLES (25)
Cast Aluminum - 22" round x 17"
Manufacturer: Tropitone (or equal)
UNIFORMS
Tropical Shirt with Khaki shorts and skirt
White tennis shoes with white ankle socks
EMPLOYEES (2)
Properly groomed hair
Clean-shaven or well-groomed facial hair
Clean, neat overall appearance
Professional, courteous attitude
KEY ISSUE
Ability to charge hotel guests on room account
EXHIBIT "B"
Project Work Matrix
Compliance with the Americans with Disabilities Act
Clearwater Beach Facilities
South Beach Pavilion - Public Restrooms, Snack Bar and Retail Store Facilities
REQUIREMENT
EXISTING CONDITIONS
CORRECTIVE ACTION
ACCESSIBLE APPROACH 1 ENTRANCE
A. Parking and Drop-off Area (FACBC 4.6)
Are an adequate number of Two (2) accessible parking spaces
1 accessible parking spaces are located closest to the restrooms.
available? Comoliant
Does each accessible Compliant. An adjacent access aisle
2 parking space have an is provided.
adiacent access aisle?
Are pavement markings Non-compliant. Access aisle and Re-stripe/repaint ADA symbols and
3 present painted blue symbol symbols are painted white and are striping at all accessible parking
and striping? fading at all accessible parking spaces.
soaces.
Are accessible spaces The mounting height of the above Lower ADA above grade signs to a
marked with above grade grade signs are non-compliant. The mounting height of 84" a.f.f. to
4 signs showing the signs are mounted above required bottom of sign.
International Symbol of height. (2 existing signs)
. .. ?
If installed after September Compliant. Lower penalty warning signs and
30,1997, do the parking mount below ADA above grade sign.
5 signs describe the penalty for Refer to section A.4.
the illegal use of the
.. -
B. Route of Travel ADAAG 4.3, 4.4, 4.5 and 4.7
Are the stairs on the route of Non-compliant. There are No
travel accessible? compliant handrails on the existing
stairs wood railing.
Install new handrails on both sides of
the stairs. Provide handrails which
are mounted between 34" - 38" high,
1 1/4" - 1 1/2" in diameter with 12"
min. extensions at the top and 24"
extensions at the bottom.
EXHIBIT "B"
South Beach Pavilion
Page 1
12/15/2004
Project Work Matrix
Compliance with the Americans with Disabilities Act
Clearwater Beach Facilities
South Beach Pavilion. Public Restrooms, Snack Bar and Retail Store Facilities
REQUIREMENT
EXISTING CONDITIONS
CORRECTIVE ACTION
C. Ramps (ADAAG 4.8)
1 Are the slopes of ramps no Non-compliant. The slope of the Refer to sections C.2 and C.5.
areater than 1 :20? ramp is oreater than 1 :20.
Do all ramps longer than 6 Non-compliant. There are No Install new handrails on both sides of
feet have railings on both compliant handrails on the existing the ramp. Provide railings which are
2 sides? ramp. mounted between 34" - 38" high, 1
1/4" -1 1/2" in diameter with 18"
extensions at the top and bottom.
Do all railings have 18 inch Non-compliant. There are No Refer to section C.2.
3 extensions at top and bottom compliant handrails on the existing
of each ramp run? ramp.
Non-compliant. There are No Refer to section C.2.
4 Are railings 1-1/4" to 1-1/2" in compliant handrails on the existing
diameter? ramo.
Is there a 5'-0" (min) long Non-compliant. The ramp is 34'-0" Replace / repair existing concrete
level landing at every 30 foot long and has no intermediate ramp to provide a ramp with a 5'-0"
5 horizontal length of ramp, at landing. long landing at every 30'-0" max.
the top of ramps and at horiz. and railings on both sides.
switchbacks? Ramp to have a max. slope of 1 :12.
Does the ramp rise no more Non-compliant. The ramp is 34'-0" Refer to section C.5.
6 than 30 inches between long and has no intermediate
landings? landino.
D. Entrance ADAAG 4.13, 4.14, 4.5
Does the entrance have a
level clear space on each
side of the door?
1
E. Retail Areas ADAAG 7.1
Are there signs describing
1 that sales assistance is
available?
Is the checkout counter no
2 higher than 34" high?
South Beach Pavilion
The entrance to the retail store is
compliant. However, the entrance to
the food service area and other
areas within has level changes
ranging from 1" to 2" making them
non-compliant.
Provide a subflooring system and/or
beveled transiton that meets code
requirements. Changes in level
between 1/4" and 1/2" shall be
beveled with a slope no greater than
1 :2. Changes in level greater than
1/2" shall be accomplished by means
of a ramp with a slope no greater
than 1:12.
Non-compliant. There are no signs
indicating sales assistance is
available upon request.
Post a sign that describes how
assistance may be obtained.
Signage should have the Accessiblity
S mbol as art of it.
Lower portion of counter or provide
an auxiliary accessible table or
counter that is no hi her than 34".
Non-compliant. The existing
counter is 38" high.
Page 2
12/15/2004
Project Work Matrix
Compliance with the Americans with Disabilities Act
Clearwater Beach Facilities
South Beach Pavilion - Public Restrooms, Snack Bar and Retail Store Facilities
REQUIREMENT
EXISTING CONDITIONS
CORRECTIVE ACTION
F. Food Service Areas (ADAAG 5.1)
Are there signs describing Non-compliant. There are no signs Post a sign that describes how
1 that assistance is available? indicating assistance is available assistance may be obtained.
upon request. Signage should have the Accessiblity
Svmbol as part of it.
Is the checkout / serving Non-compliant. The existing Lower portion of counter or provide
counter no higher than 34" counter is 42" high. an auxiliary accessible table or
high? counter that is no higher than 34". If
2 lowering the counter is not feasible,
provide signage describing the level
of assistance that will be provided.
Are self service counters and Non-compliant. The existing Lower portion of counter or provide
dispensing devices for counter is 37 1/2"" high. an auxiliary accessible table or
3 tableware, dishware, and counter that is no higher than 34".
condiments no higher than
34" hiah?
G. Getting to the Rest Rooms (ADAAG 4.1)
Men's and women's restrooms are Refer to sections F, G and H.
If rest rooms are available to provided with one stall designated as
1 the public, is at least one rest accessible. However, they are not
room (either for each sex, or fully accessible.
unisex) fully accessible?
H. Doorways and Passages (ADAAG 4.2, 4.13, 4.30)
Is there tactile signage There are signage identifying Refer to section H.3.
1 identifying rest rooms? restrooms, however the type of
sianaae is non-compliant.
Is sign mounted on latch side The type of existing signage is non- Mount new signs on the wall
wall at 60" aff to center? compliant. adjacent to the latch side of the door
2 at 60" a.f.f. to centerline of the sign.
(Refer to ADA code section 4.30
Signage for additional sign
reauirements.)
Are pictograms or symbols Non-compliant. The signage does Provide (2) new signs to comply with
used to identify rest rooms, not contain raised characters or code requirements. Refer to section
and, if used, are raised braille. H.2 for mounting requirements.
3 characters and Braille
included below them?
Are doors equipped with Non-compliant. There are no Provide accessible door handles to
accessible handles (operable handles / knobs on doors to men's entry doors to restrooms.
4 with a closed fist), 48 inches and women's restrooms. (Owner may
high or less? consider replacing damaged entry
doors to restrooms.)
South Beach Pavilion
Page 3
12/15/2004
Project Work Matrix
Compliance with the Americans with Disabilities Act
Clearwater Beach Facilities
South Beach Pavilion - Public Restrooms, Snack Bar and Retail Store Facilities
REQUIREMENT
EXISTING CONDITIONS
CORRECTIVE ACTION
I. Stalls (ADAAG 4.17)
Is there a wheelchair- The accessible stalls at both It would required modifying the
accessible stall that has an restrooms are non-compliant. A 5'- facility to provide a larger stall.
area of at least 5 ft x 5 ft clear 0" diameter wheelchair turnaround Remove the adjacent toilet stall
of the door swing? Lavatory does not fit within the stall provided. including fixtures, this space will be
inside stall? Out-swing stall In addition there is no lavatory within required to provide an accessible
1 door? the stall. stall that complies with code. Provide
a new toilet partition system,
including stall door. Provide
lavatories at both accessible stalls
that comply with code requirements.
Is the stall door operable with The stall doors handles on both Provide accessible door handles at
2 a closed fist inside and out? restrooms are non-compliant. stall doors at both restrooms. Refer
to section 1.1 for additional
information.
Is the rear grab bar at least Non-compliant. There are no rear Provide new rear grab bars in the
36 inches long? grab bars at both accessible stalls. men's and women's toilet rooms. To
3 be 1 1/4" - 1 1/2" in diameter, 36"
long (minimum) mounted 33" - 36"
high.
Is the side grab bar at least Non-compliant. The side grab bar is Replace the side grab bar in the
42 inches long? than the length required and not men's and women's toilet rooms with
4 adequate style of grab bar. one 1 1/4" - 1 1/2" in diameter, 42"
long (minimum) mounted 33" - 36"
high.
Is the toilet seat 17 inches to Compliant.
5 19 inches high (above the
floor\?
Is the urinal 17 inches max. Non-compliant. The height to the Lower the urinal so that the max
6 to the rim above the floor.? rim is 23" and the flush control valve height to the rim is 17" and the flush
is at 52" high. control valve max height is 44".
South Beach Pavilion
Page 4
12/15/2004
Project Work Matrix
Compliance with the Americans with Disabilities Act
Clearwater Beach Facilities
South Beach Pavilion - Public Restrooms, Snack Bar and Retail Store Facilities
REQUIREMENT
EXISTING CONDITIONS
CORRECTIVE ACTION
J. Lavatories (ADAAG 4.19, 4.24)
Is there at least 29 inches (At lavatories outside of stalls) The Raise the lavatory so there is no less
from the floor to the bottom height to the bottom of the lavatory than 29 inches from the floor to the
1 of the lavatory apron apron (28" A.F.F.)is non-compliant. bottom of the apron, and a maximum
(excluding pipes)? of 34" A.F.F. to the sink rim.
Are the exposed pipes and Non-compliant. (At lavatories Insulate pipes and controls under the
2 controls under the lavatory outside of stalls) The pipes and lavatory at both restrooms.
insulated? controls under the lavatory are not
insulated.
Is the mirror mounted with Non-compliant. The mirrors in the Lower mirrors and mount at 40" a.f.f.
3 the bottom edge of the restrooms are mounted 48" and 49" (max.) to the bottom edge of the
reflecting surface 40 inches a.f.f.. reflecting surface.
hiah or lower?
ADDITIONAL ACCESS
K. Dressing Rooms (located at interior of restrooms and store)
Is there a dressing room that The men's restroom has an open Reconfigure the dressing rooms to
provides accessiblity for dressing room which makes it provide a dressing room large
someone in a wheelchair? complant. However, the dressing enough for a wheelchair. This will
1 rooms in the women's restroom and involve combining the sizes of two
store are not large enough for a dressing rooms to make one.
wheel chair entry. Non-compliant.
L. Telephones (ADAAG 4.13)
Compliant.
South Beach Pavilion
Page 5
12/15/2004