FIFTEEN YEAR LEASE AGREEMENT
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LEASE
THIS LEASE, dated the r' day of /fJr // , 19 q I , by and between
. the CITY OF CLEARWATER, FLORIDA, a municipal corporation, hereinafter called
the Lessor, and CLEARWATER HOUSING CORPORATION, INC., a Florida non-profit
corporation, having its principal place of business in Clearwater, Florida,
hereinafter called the Lessee;
WIT N E SSE T H
That in consideration of the covenants herein contained of the granting
of this Lease and of 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:
That portion of Lots 1 through 4, Block D, 1st Addition to Norwood,
according to map or plat thereof as recorded in Plat Book 5, page
79 of the Pub 1 i c Records of Pi nell as County, Flori da, and Lots 4
through 7, Block H, Avondale Subdivision, according to map or plat
thereof as recorded in Plat Book 7, page 40 of the Public Records
of Pinellas county, Florida, lying North and West of Fulton Street
and bounded on the West by Seaboard Coastline Railroad.
(This property is commonly known as the "Fulton Street Apartments,"
and has an office address located at 1610 Fulton Avenue.)
THE PARTIES HERETO HEREBY FURTHER COVENANT AND AGREE AS FOLLOWS:
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1. The term of this Lease shall be for a period of fifteen (15) years,
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commencing on the 1st day of Jaf'l'ttaIY, 1991, and ending on the 31st day of
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December, ~ unless sooner terminated as hereafter provided.
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2. The Lessee hereby covenants and agrees to pay to the Lessor all
annual gross rental revenues less mutually agreed upon maintenance, operations
and other related costs. Anticipated gross revenues for the first year of the
Agreement are detailed in Exhibit I, the 1991 Fulton Street Apartments Rent
Analysis.
Basic rental to be payable on the first each month following the
executi on of thi s Lease. The Lessee further covenants and agrees to pay in
full, before del i nquent, any and all ad valorem real property taxes assessed
and charged against said demised premises and any improvements erected thereon
during the term of this Lease. Payments will be adjusted annually through
negotiations between the Lessee and Lessor to reflect adjustments in the fair
, ma rket rent
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published by the Department of Housing and Urban Development.
If
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it is determined by proper authority that Lessee is exempt from the payment of
ad valorem real property taxes on said demised premises and any improvements
erected thereon, Lessee shall pay to the Lessor an additional annual payment
which shall be equal to the amount of ad valorem real property taxes which
would be assessed and levied against said property and improvements if they
were taxable. Any additional payments as above provided to be made by the
Lessee to the Lessor in lieu of taxes shall be payable in equal monthly
installments on the first of each month during the term of said Lease. If the
millage for the current tax year is not available, the millage for the prior
tax year shall be used together with the current assessment by the Pi nell as
County Tax Assessor in determining the amoul)t of each monthly payment to be
made, which amount shall be adjusted either upward or downward if necessary at
the time the annual tax millage rate applicable to property within the City of
Clearwater becomes available. Any tax payments required to be made to the
Pinellas County Tax Collector's Office or any payments required to be made
hereunder to the Lessor in 1 i eu of tax payments shoul d sai d property be
determi ned to be tax exempt, shall be prorated for any porti on of a tax year
during the term of this Lease or any extension thereof.
3. Erected upon the demi se premises is a 16 unit apartment complex
known as Fulton Street Apartments, a complex designed for occupancy by persons
qualifying for public housing assistance. Lessee and Lessor agree that Section
8 Certifi cates will be accepted as a percentage of the rent to be pa i d to
Lessee by or on behalf of qualifying tenants abiding in said individual units.
4. Lessee agrees to indemnify and save harml ess the Lessor from any. and
all actions and claims for property damage and personal injury of individuals
while on said property damage coverage and not less than $500,000 per person or
$1 million per accident for personal injury liability coverage. The City shall
be listed as an additional insured on said policy and a copy of said policy
shall be del ivered to the City for its records.
5. During the term of this Lease, the Lessee shall purchase and
maintain at its expense fire and extended coverage insurance upon the
structures on the premises in an amount equal to the full insurable value.
Said policy shall list the City as an additional insured as its interest may
appear and a copy thereof shall be furnished to the City for its records.
6. The demised premises are to be used solely for the operation of
rental housing facil ities by the Lessee and shall not be used for any ottler
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purpose without the prior written consent and approval of the Lessor. If at
any time during the term of this Lease or any extension thereof the Lessee
shall, wi thout fi rst obtai ni ng the pri or wri tten consent and approval of the
City, use all or any portion of said demised premises for any purpose ottler
than the erection and operation of rental housing facilities, Lessor may, at
its option, by written notice furnished to Lessee immediately terminate this
Lease and any and all right or interest of Lessee in said property shall
terminate and revert to Lessor. This Lease may not be assigned by the Lessee
without the prior written consent of the Lessor.
7. Should the Lessee, its successors or assigns, where provided,
violate any of the covenants of this Lease on its part to be performed or fail
to pay the rental herein provided or any other payments to be made at the time
and in the manner herein stated, the Lessor may, at its option, immediately
terminate this Lease and the Lessor shall have the right to re-enter and take
possession of the premi ses or pursue any other remedies Lessor may have in
equity or law.
8. All bui 1 di ngs, improvements and fi xtures on the premi ses by Lessee
at anytime during the original term of this Lease or any extension thereof
shall, upon the termi nation for any cause, become the property of the Lessor.
9. Notice hereunder shall be given only by registered mail and shall
deemed gi ven when the 1 etter is deposited in the mail addressed to the Lessor
at P.O. Box 4748, Cl earwater, FL 34618, and addressed to the Lessee at 210
South Ewing Avenue, Clearwater, FL 34616, or any such other addresses as may be
substituted therefor by proper written notice during the term of this Lease or
any extension thereof.
10. This Lease merges and supersedes all prior negotiations,
presentations and agreements, and constitutes the entire contract between the
Lessor and Lessee concerning the leasing of the premises and the consideration
therefor.
11. I n the event the Lessor retai ns an attorney to enforce any of the
provisions of this Lease or renewals of this Lease, or to effect the
enforcement of any legal right of the Lessor against the Lessee, the Lessee
hereby agrees to pay to Lessor all costs of sai d enforcement reasonably
incurred, including court costs and reasonable attorney's fees.
12. The Lessee hereby covenants and agrees that during the term of this
Lease to keep, operate and maintain all improvements erected upon said premises
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in a proper, safe and sanitary condition and to abide by all governmental rules
and regulations and to pay all local, county and state occupational licenses
and taxes assessed against said premises or incurred in the operation thereof.
Lessee shall also during the term of this Lease or any extension thereof be
responsible for the payment of all utility services furnished to the premises
and any taxes levied or imposed on said services.
13. It is agreed by the Lessor and Lessee that, during the lease period,
the management of the property, as well as all maintenance, will be performed
by the CLEARWATEI{ HOUSING AUTHORITY, as agent for the Lessee pursuant to the
terms of a separate Management Agreement to be executed by and between the
Lessee and the CLEARWATER HOUSING AUTHORITY.
14. By its signature hereto, the Lessor agrees that funds received from
the Lessee which are not needed for ttle maintenance of the premi ses will be
expended in the "house ownershi p program" currently bei ng admi ni stered by the
City of Clearwater1s Community Development Program and the CLEARWATER HOUSING
AUTHORITY public housing and Section 8 tenants will be given first preference
in the Lessee's selection of tenants to be served by said program, unless such
program is terminated by the City of Clearwater.
13. The Lease shall be binding on the parties hereto, their successors
and assigns, where provided.
IN WITNESS WHEREOF, this Lease'is executed as of the day and year first
above written.
CITY OF CLEARWATER, FLORIDA
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City Ma na ge r
By
Approved as to form and correctness:
Attest:
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BY LESSEE:
ORATION, INC.
By
an %roRstQin, President
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At te s t :
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~)e./-~(U(' (0 C!.u C<--4J
Secretary
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EXHIBIT I
contract between the City of Clearwater and the Clearwater Housing
corporation, Inc. for the rental of Fulton street Apartments.
Rent Schedule:
12 two bedroom units @ $375 month x 12 months =
4 three bedroom units @ $425 month x 12 months =
Tot~ll -
Allowance for vacancies:
1988/89 actual 102 days
1989/90 actual 203 days
Average 8 months @ $400 -
Total estimated gross rent -
Estimated operating Expenses Based on
1990 Actual Data -
Total Gross Annual Rent to city of Clearwater -
Payment to be made Quarterly @ $11,080 per quarter.
$54,000 p.a.
~M~Q. pia,
$74,400 p.a.
.Ll.t1!H~l p. a I
$71,200 p.a.
($26,880)
$44,320