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FIVE YEAR LEASE AGREEMENT (2) - ~-, :!:. " , ,.. J LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this /~h'ay ;' of , 1977, by and between the CITY OF CLEARWA TER, FLORI unicipal corporation, hereinafter referred to as "Lessor", and HOWARD G. HAMILTON, hereinafter referred to as IILessee"; WITNESSETH: That in consideration of the covenants herein contained of the granting of this Lease and the smns 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 PAR TIES HERETO HEREBY FUR THER COVENANT AND AGREE AS FOLLOWS: 1. The term of this lease shall be for a period of five (5) years, beginning on the 1 st day of July, 1974, and ending on the 30th day of June, 1979. 2. The City Manager may cancel this lease at any time by giving written notice to the holder of the lease, 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 minimmn financial agreement are not being met or for any other good and valid reason that might reflect on the image of Clearwater and is not in the best interest of the people of Clearwater. The City Manager may also impose reasonable requirements from time to time as sitm tions arise wherein he feels it is necessary to do so. 3. The Lessee shall be allowed to sell the following merchandise at the Food Concession Complex only: -1- J~-oo~ -7 t:" .,- I J a. Hot Foods - hot dogs, hamburgers and other such 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 - suntan lotions, sun glasses, sun hats, film, cigarettes and cigars and other personal beach recreational items, but not software. 4. The Lessee shall be allowed to rent the following approved beach equipment at one other location other than the Food Concession Complex, but restricted to the area described in Paragraph 5 below: Beach chairs, cabanas, umbrellas and floats (rubber or canvas). 5. The Lessee shall restrict the rental of beach equipment to the Food Concession Complex and the area of Clearwater Beach owned by the City South of First Street and North of the filled area used for parking, and more specifically described as being 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. 6. The Lessee is 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. 7. The hours of operation for the Food Concession Complex, beach equipment rental concession and rest rooms 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 sunset for closing except in times of inclement weather. The beach rental equipment shall be removed from the beach and stored by sunset. The use of trucks or other vehicles on the beach area will be permitted for distribution and pick up of beach equipment only. The times allowed for distribution and pick up will be determined by the City Manager. -2- . ~ , . " I "' I 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 approved by the City Manager. Lessee will submit in writing any proposed modification in prices to the City Manager to permit the City Manager to determine if proposed prices are reasonable and fair. The decision of the City Manager will be binding; however, the Lessee has the right of appeal to the City Commission. 9. The Lessee hereby agrees to pay to the Lessor the sum of Seven Hundred Dollars ($700.00) per month as a minimum guarantee. In addition, the Lessee shall pay a percentage of the annual gross sales to be paid with minimum monthly rental credited ag'ainst percentage rental: Annual gross sales percentages are shown in Paragraph 10. The Lessee at the time of signing the lease agreement shall deposit Fourteen Hundred Dollars ($1400.00) with the Lessor to be held by the Lessor during the term of the lease as a guarantee of faithful performance of the concession lease agreement. The Lessee may not assign this lease except with the written consent of the City Commission. ,vAssignement of a majority of the corporate stock in case of corporation ownership will constitute such an assignment and will require approval of the City Commission. 10. ANNUAL GROSS SALE FROM CONCESSION $ o - $ 50,000 8% 50, 000 - 100,000 9% 100,000 - 200,000 10% 200, 000 - Up 10% ANNUAL GROSS SALES FROM BEACH RENTAL $ o - $30, 000 10% 30, 000 - 50, 000 10% 50,000 - 100, 000 15% 100,000 - Up 20% -3- '. I I 11. Responsibilities of Lessee. The Lessee will provide all equipment and merchandise neeessary for the operation of the concession complex. The Lessee will pay: a. All Utilities. b. All Utility Taxes. c. All ad valorem taxes. d. All necessary license fees. e. All normal day to day repair and maintenance costs (any material used in repair as maintenance will be at least equal to that originally provided). f. All required insurance premiums. g. Lessee will be responsible for picking up and disposing of all trash, garbage and other debris within 200 feet of the Food Concession Complex building. Trash cans in the immediate area of the Food Concession Complex building will be provided and maintained by the Lessee. h. Lessee must maintain the highest rating given by the Florida Hotel and Restaurant Commission and comply with all the standards required by the Health Departments of the State of Florida and Pinellas County. 12. The Lessee shall procure and maintain during the life of the lease, adequate liability insurance to save the Lessor harmless in the event any liability should occur by virtue of the operation of this Concession on the aforesaid properties. The Lessee also agrees to purchase and deliver over to the Lessor a liability insurance policy wherein the Lessor is insured to the minimum limits of $10,000/$300,000 covering property damage and bodily injury. The Lessee shall maintain in good condition and repair during the term of this lease the premises, building improvements and equipment at his own expense. The Lessor shall provide fire and windstorm insurance on the - - building housing the Food Concession and rest rooms, but not to include any equipment or merchandise owned by the Lessee. -4- '. . ., I I 13. Taxes. Should Pinellas County see fit at any time to assess the above described property for City, State and County Taxes because of the operation of the beach equipment concession business, then the Lessee shall pay the said taxes on the above described property; however, the Lessee may contest the assessment in the Courts at his expense and the judgment 6f the Court shall be binding on the Lessee. 14. Signs. 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 City Code and authorized and approved by the City Manager. However, the Lessee shall provide menu-type board or boards to be placed inside the food concession area so that they will be plainly visible to the public, listing the food and drink items for sale and their corresponding prices. The Lessor will affix signs at the entrances of the rest rooms indicating male or female. A price list sign of all beach equipment rentals shall be posted (121l x 2411) by the Lessee at the entrance to the beach equipment rental concession area as well as at one other point from which the rental of beach equipment has heretofore been authorized. 15. Rest Room Operation. Rest room facilities must be kept clean and sanitary at all times and subject to inspection by employees of the Building Inspection Department of the Les sor. No coin operated toilets or other coin- operated devices will be allowed in the aforementioned rest room facilities. Lessee agrees to notify immediately the Police Department of the Lessor at any time the Lessee becomes aware of any activity that is a violation of a law in the area of the conces sion complex. 16. The Lessor agrees to not grant other concessions for furnishing beach equipment or food for the area of the beach heretofore described during the life of this lease. The exclusive right to rent beach equipment does not deny the public the right to bring their own equipment on the beach for their personal use. -5- -~ ". .. ,'I'. I I 17. Records of Business. All sales shall be recorded on a tape cash register and the tapes shall be maintained for review by the City's Auditor. The Lessee shall maintain an adequate set of books and records on his operation of the business of renting beach equipment and the sale of food, beverages and sundries, and his books and records shall be made available to Lessor at any time a request is made for them by the City Manager or his agents. 18. Employees. Lessee agrees that the agents and/or employees used in the operation of this business on the above described beach property will be of good moral character and that each such agent or employee will be required to register, be fingerprinted and photographed at the Clearwater Police Deparhnent within forty-eight (48) hours of said employment and to carry identification card issued by said Police Deparhnent on their person at all times during their hours of employment. Lessee further agrees that any such person who does not conduct himself in a gentlemanly like manner in carrying out his duties on said beach shall, for good and sufficient reason shown, be immediately discharged and replaced. If the City Manager becomes advised as to immoral or irregular conduct of any of the persons concerned with the operation of the business and there is adequate proof upon which any charge may be made of immoral or irregular conduct, the City Manager may submit said charges to the Lessee with a request that the person or persons so being charged be discharged immediately, and the Lessee shall comply. 19. This lease shall be binding on the heirs, personal represenatives, successors and assigns of the parties hereto. 20. Should the Lessee, his successors or assigns, violate any of the covenants of this lease on his part to be performed, or fail to pay the rental herein provided at the time and in the manner herein stated, the Lessor may, at its option, terminate its lease and the Lessee shall forthwith become a tenant at sufferance, and the Lessor shall have the right to re-enter and take possession of the premises or pursue any other remedies Lessor may have in equity or at law. -6- f I , 21. Notices hereunder shall be given only by registered letter or telegram and shall be deemed given when the letter is deposited in the mail or the telegram filed with the telegraph company, postage or charges prepaid, and addressed to the party for whom intended at such party's address first herein specified or to such other address as may be substituted therefor by proper notice hereunder. 22. In the event the Lessor retains an attorney to enforce any of the provisions of this lease, or rene~als of or addenda to 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 said enforcement reasonable incurred, including court costs and reasonable attorney's fees, provided such action results in a decision favorable to the Lessor. IN WITNESS WHEREOF, this lease is executed as of the date first above written. Counte r s igne d: ~~d~~ Mayor- Commission By CLEARWATER, I FLORIDA -Jj rrectness: A~~ ," City Clerk , Signed, sealed and delivered in the presence of: 'i!:: ... ,j I \ a- / Vl.'L~rCV, C/ J:J-LL~1---""- " ,2~z,L J{s to City (Lessor) LESSOR )kr'L~ 0/) )~~EAL) Howard G. Hamilton r?2::1::~ 1\.s to Hamilton (Lessee) LESSEE -7-