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FIVE YEAR LEASE AGREEMENT . .;~~7 'j. . r I , --\ f"-'-' .~. LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this IJ day of ~AJr , 1969, by and between the CITY OF CLEARWATER, Florida, a municipal corporation, hereinafter referred t. as IlLes sor", 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 ft. of the East 215 ft. of the S.uth half of lot l8, and lots 19 and 20, Lloyd, White and Skinner Subdivision, Sec. 7, Twp. 29 S, Rge. 1St. as recorded in plat book 13, pages 12 & 13, public recQrds of Pinellas County, Florida THE PARTIES HERETO HEREBY FURTHER COVENANT AND AGREE AS FOLLOWS: 1. The term of this lease shall be for a period of five (5) years, beginning on the 1st day of July, 1969, and ending on the 30th day of June, 1974. 2. Lessee shall have an option to renew this lease for an additional five (5) year period subject to terms and conditions to be mutually agreed upon with the City Manager. Provided, however, that any increase in rental rates shall be consistent with rental rate increases and/or pre- vailing rental rates for similar facilities. However, the above shall not restrict any increase in the rental rates to less than ten (10%) percent. 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 minimum financial agreement are not being met or for any other good and valid reason that might reflect on the image of ) ~_~,_?~_~ I l. . . . .,Pt ;. " ,+ . '-1 . I I 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 situations arise wherein he feels it is necessary to do so. 3. The Les see shall be allowed to sell the following Merchandise at the Food Concession Complex only: 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 glas ses, sun hats, film, cigarettes and cigars and other personal beach recrea- tional items, but no software. 4. The Les see 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 -2- << '--~,~'-: I I ~ ~- ,,: r 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. 8. The Lessor reserves the right to reVlew 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 pro- posed 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 Commis sion. 9. The Lessee hereby agrees to pay to the Lessor the sum of Seven Hundred Dollars ($700) per menth 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 against percentage rental: Annual Gross sales percentages are shown in paragraph lO. The Lessee at the time of signing the lease agreement shall deposit $l400. 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. Assignment 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% -3- "0-'" " . I I ......;,. .' . ANNUAL GROSS SALES FROM BEACH RENTAL: o - $ 30,000 10% $ 30,000.. 50,000 10% 50~000 - lOO,OOO 15% lOO,OOO - UP 20% ll. Responsibilities of Lessee: The Lessee will provide all equip- ment and merchandise necessary for the operation of the concession complex; The Les see will pay: a. All Utilities b. All Utility Taxe s 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 premium g. Les see will be responsible for picking up and disposing of all trash, garbage and other debris within 200 ft. 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 .y the Health DepartmentEof 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 Con.. cession 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 -4- ,', :~,/'~ I I condition and repair during the term of this lease, and any extension thereof, 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. 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 of 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 (12" x 24") 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 inspectionlJY employees of the Building Inspection Department of the Lessor. No coin operated toilets or other coin-operated devices will be allowed in the aforementioned rest room facilities. Les see 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 concession complex. -5 - .~. ~. ~'~ . I I l6. The Lessor agrees to not grant other concession for furnishing beach equipment or food for the area of the beach heretofore des cribed 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 pers onal use. 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 busines s 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 Department within forty-eight (48) hours of said employment and to carry identification card issued by said Police Department 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 orregular 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. l8A. This lease shall be binding on the heirs, personal representatives, successors and assigns of the parties hereto. 19. Should the Lessee, his successors or assigns, violate any of the covenants of this lease on its part to be performed, or fail to pay the -6- t ';.-h~~,' f .... '~'. . .> ... " I I 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. 20. 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 specific or to such other address as may be subs tituted therefor by proper no tice hereunder. 21. 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 hereby agrees to pay to Lessor all costs of said enforcement reasonably incurred, including court costs and reasonable attorney's fees, provided such action results in a decision favorable to the Les sore IN WITNESS WHEREOF, this lease is executed as of the date first -TER ~;;;f~=tness: " City Attorney Signed, sealed and delivered in the presence .t: ~~~ Z:.~s:)' ~ ')~ -a 7hv-vXfwSEAL) Howard G. Hamilton j' , ,,, ~'l-t.Jt.t" As to Lessee ~/ L-0 " ;..,. ../ . / (''''_ 1...~."):6 ii, -. /' ~ -7-