FIFTEEN YEAR LEASE AGREEMENT
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TO:
FROM:
SUBJECT:
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CITY OF CLEARWATER
INTEROFFICE CORRESPONDENCE SHEET
Susan Stephenson
Documents and Records Supervisor
City Clerk's Office
Leo W. Schrader, Risk
Certificate of Insurance
Contract dated
""""\7' Lease dated
~ Special Event A pli ation dated
--- Miscellaneous Activity
=== Unknown Activity dated
This office has received the attached Certificate of Insurance Form presumably
for the document identified above.
1.
This Certificate of Insurance is in compliance with the insurance
requirements contained in the contract identified above.
2.
This Certificate of Insurance is not in compliance with the insurance
requirements in the contract identified above for the following
reasons(s) :
The General Liability ___ limits/Business Auto Liability limits
shown are less than the required amounts.
The type of General Liability policy provided is a "claims made
policy when the contract called for an "occurrence" policy.
Worker's Compensation Insurance coverage is not provided.
Flood Insurance coverage is not provided.
Plate Glass Insurance Coverage is not provided.
Boiler and Machinery Insurance coverage is not provided.
Business Automobile insurance coverage is not provided.
The City has not been provided a copy of the policy(s) .
The City is not shown as an additional insured.
The Notice of Cancellation is for a shorter period than required.
The policy deductible shown is not provided for by the contract
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This cer~iflcatL mayor may not be in compliance with a City
contract, but this office cannot offer an opinion because neither the
contract nor the purpose of the Certificate of Insurance can be
identified.
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Department (If no department is
shown, it is because no department can be identified.)
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LEASE AGREEMENT
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THIS LEASE AGREEMENT, made and entered into this ;;z"K day of
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, 1985, by and between the CITY OF CLEARWATER, FLORIDA, a
municipal corporation, hereinafter referred to as ''Lessor'' and HOWARD G.
HAMILTON, hereinafter referred to as ''Lessee'':
WITNESSETH:
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 1/2
of 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 PARTmS HERETO HEREBY FURTHER COVENANT AND AGREE AS
FOLLO WS:
1. The term of this lease is fifteen (15) years, beginning on the 1 st
day of November, 1985 and ending on the 31 st day of
October, 2000. As
referred to in this agreement, a "lease year" is that year that commences on the 1 st.
day of JanuClry
of each year and terminates on the 31 stday 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 Commission.
2a. 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.
b. The Lessor retains the right to terminate this lease for any municipal
need consistent to Lessor's charter. This right of termination is to be considered in
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addition to the right of termination set out in paragraph 2a of this agreement.
Provided however that should the Lessor terminate this agreement for any reason, the
Lessor will reimburse the Lessee for its unamortized real property improvements to
the site in accordance with the depreciation and amortization schedules to be
submitted by Lessee under paragraph 10c of this agreement, less any amounts
recovered by Lessee pursuant to paragraph 14 and Exhibit A, provided further that:
(1) Said improvements are permanent and cannot be moved
economically to another site;
(2) The maximum reimbursement shall not exceed $117,500.00;
(3) In the event that additional improvements are made to the
demised premises, with the written consent of the Lessor, during the term of this
lease, the cost of such improvements may be added to the original value of
improvements shown in 2a(2) above as depreciated. Said improvements, as
distinguished from personal property of the Lessee, shall be certified as to cost by an
independent Certified Public Accountant; and
(4) The claim for reimbursement shall be supported by
independently audited financial statements prepared by a Certified Public Accountant
which shall attest to the faimess of the original investment value and subsequent
amortization expenses.
3. The Lessee shall be allowed to sell exclusively the following
merchandise at the Food Concession Complex:
a. Hot foods: hot dogs, hamburgers and other like hot foods such as
french fries, as may be prepared by using the grill and french fryer.
b. Ice cream.
c. Cold sandwiches, both prepared and pre-packaged, cookies, popcorn,
chips and other such packaged food items.
d. Beverages (non-alcoholic).
e. Sundry items and other personal beach recreational and clothing
items.
4. The Lessee shall be allowed to rent beach chairs, cabanas, umbrellas,
and rubber or canvas floats. 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 the above-described property used
now or in the future by the Lessor for other purposes.
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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 juke
boxes 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 8:00 a.m. and no
later than 10:00 a.m. for opening, and no later than one-half hour after SWlset for
closing. The beach rental equipment shall be removed from the beach and stored by
sWlset. 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 Wlder which the vehicles are operated must be authorixed 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 Commission. List of current prices must be submitted
within 20 days of the date of this agreement.
9. In consideration of the Lessee waiving its right to reimbursement of
$30,000 owed to the Lessee by the Lessor under a previous lease agreement, the Lessor
will provide nine (9) parking spaces for use by Lessee's employees for years 1 through
10 of this lease. During years 11 through 15, Lessor will provide Lessee nine (9)
parking spaces at the rate of $25.00 per space per month. Payment for the rental of
these parking spaces will be included with the monthly payments made pursuant to
paragraphs 10a(1) and 10b(1) of this lease agreement. The placement of the nine (9)
parking spaces will be in accordance with a diagram attached as Exhibit B to this lease
agreement. In the event this lease is terminated by Lessor prior to the completion of
year ten of this lease, Lessor will reimburse Lessee the Wlused portion of the $30,000
currently owed to Lessee.
10. The Lessee hereby covenants and agrees to pay:
a. For concessions, sWldries and beachwear as follows:
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(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 Paym ents
1st through 3rd
4th through 6th
7th through 9th
10th through 12th
13th through 15th
$195,000
$210,000
$225,000
$240,000
$255,000
$5,416.66
$5,833.33
$6,250.00
$6,666.66
$7,083.33
(2) In addition to the guaranteed minimum rental provided for in
paragraph 10a(1), at the end of each lease year, 10 percent (10%) of yearly gross sales
exceeding $650,000.00 for lease years 1 through 3, $700,000.00 for years 4 through 6,
$750,000.00 for years 7 through 9, $800,000 for years 10 through 12, and $850,000 for
years 13 through 15. This payment will be made along with the Lessee's payment of
the guaranteed minimum monthly rental payment per paragraph 10a(1) for the first
month of each lease year beginning with the second lease year. The Lessee will
provide the Lessor within 15 days of the end of each monthly period during the term of
this lease a statement showing the amount of gross sales during the preceding month.
The statement used by the Lessee to report such sales will be in
such form as to be satisfactory to the City Manager 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 being reported
by the statement and the amount of year-to-date gross sales for the lease year.
(3) The term "Gross Sales" as used in paragraph 10a(1) and (2)
means the entire amount of the 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:
(1) A guaranteed minimal 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 Paym ent
1st through 5th
6th through 10th
11th through 15th
$37,500.00
$40,000.00
$43,000.00
$625.00
$666.66
$716.66
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(2) In addition to the guaranteed minimum rental provided for in
paragraph 10b(1), at the end of each lease year, 10 percent (10%) of yearly gross sales
exceeding $75,000 for years 1 through 5; $80,000 for years 6 through 10 and $86,000
for years 11 through 15. This payment will be made along with the Lessee's payment
of the guaranteed minimum monthly rental payment per paragraph 10b(1) for the first
month of each lease year beginning with the second lease year. The Lessee will
provide the Lessors 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.
The statement used by the Lessee to report such sales will be in
such form as to be satisfactory to the City Manager 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 being reported
by the statement and the amount of year-to-date gross sales for the lease year.
(3) The term "Gross Sales" as used in paragraph 10b(1) and (2)
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 is 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 60 days of
the end of each lease 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 date paid, together with a late charge of Fifteen Dollars ($15.00) to cover
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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 lIDlawful,
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, however such consent will not be
withheld unreasonably. The consent of Lessor to any assignment, mortgaging,
pledging, hypothecating, or subletting 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 collect rent from the assignee, subtenant or occupant, and apply the net
amount collected to the payments to be made herein by Lessee, but no such
assignment, subletting, occupancy or collection sh~l be deemed a waiver of this
covenant, or the acceptance of the assignee, subtenant 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
Lessee's interests are transferred by sale, assignment, bequest, inheritance, operation
of law or other disposition, Lessee shall promptly notify Lessor in writing of such
change. Lessor will within 30 days advise Lessee if it has any objections thereto and
the detailed reasons therefore. Lessee shall have thirty (30) days from receipt of said
objections within which to try to convince Lessor of the unreasonableness of its
objections, failing which Lessor may terminate this lease any time after such change
in ownership 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
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pay all other taxes, including but not limited to, occupational license, beverage
license, and permits relating to 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 or betterments, such as sidewalks, sewers,
and streets that would normally accrue to the demised premises.
13. 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. Lessee is authorized and will make, at his expense, structural
improvements to the concession area as outlined in Exhibit A, attached hereto.
15. Lessee will use biodegradable materials whenever feasible.
16. Lessee will provide all equiment and merchandise necessary for the
operation of the concession complex. In addition to the items in paragraph number 13,
the Lessee will pay all normal day-to-day repair 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.
17. 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 200 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.
18a. Lessee agrees to indemnify and hold Lessor and its employees
harmless from and against any and all claims, demands, 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.
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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 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 coverages set out below:
(1) Property Insurance - (Real property including improvements
and/or additions).
(a) Form - All Risk Coverage - Coverage is to be no more
restrictive than that afforded by the latest edition of Insurance Services
Office Forms CFOOll, CF0013, CF0420, and CF1210.
(b) Amount of Insurance - The full insurable value on
replacement cost basis.
(c) Flood Insurance - When buildings or structures are located
within an identified special flood area, 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
addi tional insured.
(2) Boiler and Machinery Insurance - If the buildings or structures
include boiler(s), pressure vessel(s), and/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.
(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:
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(a) Minimum limits of $1,000,000 per occurrence combined
single limits for Bodily Injury Liability, Personal Injury, and Property
Damage 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 and Property Damage Liability.
(b) Coverage on all vehicles (owned, hired and non-owned).
(c) The City of Clearwater, as Lessor, shall be named as an
additional insured.
(5) Workers' Compensation - Coverage to apply for all employees
for statutory limits in compliance with the applicable State and Federal laws. 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 agreem ent.
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19. If at any time during the term of this lease, the buildings or premises
or any part, system, or component thereof, (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
or 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 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 as provided in paragraphs lOa and lOb 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 may terminate this lease as of the date of such damage or upon thirty (30)
days written notice to the Lessor. In the event of such termination the insurance
proceeds provided for under this lease shall be paid to the Lessor. 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.
20. 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;
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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 prosecuting such
action;
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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 hereunder, Lessor may
accelerate all fixed rentals due tmder 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 damages specified in paragraph 20(1),
and the loss of prospective percentage rentals, suffered by Lessor because of
Lessee's breach of any covenant under this lease. Such prospective percentage
rentals shall be calculated on the same basis as in paragraph 20f(1).
(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.
21. 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.
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22.
Lessee shall, at his expense, at all times during the terms of this
lease keep the 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.
23. Upon the termination or expiration of the lease for whatever cause,
the Lessee shall have the privilege at his own expense of removing its equipment,
signs, insignia, and other indicia of its tenancy or use.
24. 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 bond shall be in an amount equal to 100 percent (100%)
of the cost of construction of the contemplated improvements to the demised
premises.
25. The Lessee hereby covenants and agrees to promptly and continously
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.
26. 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 hinderance or interruption by Lessor.
27. Notices hereunder shall be given only by registered letter or telegram
and shall, unless otherwise expressly provided, be deemed given when the letter is
deposited in the mail or the telegram filed with the telegraph company, postage or
charges 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 its Legal Department at the above-cited address.
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28.
If the Certified Public Accountant providing the annual audit
required by paragraph 10c above 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.
29. 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 from which the rental of beach equipment has heretofore
been authorized.
30. 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 complexthat is in violation of any law.
3!. 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
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meters. It is the parties' intent that the Lessee will provide said change whenever
possible.
32. Lessee's exclusive right to rent beach equipment from the leased
premises does not deny members of the public the right to bring their own equipment
f or personal use.
33. All sales shall be recorded on a tape cash register and the tapes shall
be maintained for review by the Lessor's auditor. The Lessee shall maintain an
adequate set of books and records of his 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.
The Lessee must cease using any items such as paper bags, cups, etc.,
which may advertise the leased premises on or at any other premises whether or not
owned or operated by Lessee when the current inventory of said items is expended.
Lessee also must cease using any similar items at the leased premises that advertise
any business not operated at, on or from the leased premises when the current
inventory of said items is expended.
34. In the event the Lessor retains an attorney to enforce any of the
provisions of this 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 WHEBEOF, this lease is executed as of the date first above
wri tten.
count;hs'
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Approved as to form and
correctness:
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Signed, sealed and delivered in
the presence of:
-------.
By
Attest:
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CIty E;lerk::__ -." _ - . ..... ._....
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,-WYij4Jk
HOWARD G. HAMILTON .
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The structural improvements to be made at Lessee's expense will be
constructed in accordance with final plans prepared by Lessee, conditioned on the
receipt of all necessary approvals and permits. Such approvals and permits, as well as
any variances required, will be applied for and obtained at Lessee's expense. Lessor
will cooperate with Lessee in attempting to obtain all the necessary permits and
variances. The preliminary plans previously submitted by Lessee to Lessor reveal the
basic improvements to be made and shall form the basis for the final plans.
Lessor recognizes that the proposed life guard station is solely for its
benefit and agrees to reimburse Lessee for the cost of this improvement. The amount
reimbursed for the construction of the life guard station and any other improvements
related to the life guard station will not exceed $55,000.00. Lessor also agrees to
reimburse Lessee one-half of the cost of improving and extending the porch area at
the leased premises. The reimbursement for the improvements to the porch will not
exceed $6,250.00. These reimbursements will be recaptured by Lessee out of those
yearly rental payments to be made by Lessee pursuant to paragraphs lOa(2) and 10b(2).
These reimbursements will not affect the guaranteed monthly rentals to be paid
pursuant to paragraphs lOa(1) and lOb(l). The amount recaptured each year by Lessee
under this provision must be reflected in the annual certification of annual gross sales
to be provided by Lessee pursuant to paragraph lOco
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RESERVED PARKING FOR
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