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LEASE CONTRACT ., LEASE CONTRACT THIS LEASE CONTRACT, entered into this /.:zd-dayof /~ , 2002, between the City of Clearwater, Florida, a Florida municipal corporation ("Lessor"), and Roylee Miller II, a single man ("Lessee"). WIT N E SSE T H: That the Lessor does lease to the Lessee the following premises located in Pinellas County, Florida: DRUID HEIGHTS, Block "C", Lot 8 as recorded in Plat Book 24, Page 64, Public Records of Pinellas County, Florida, a1k/a 1378 East Turner St., Clearwater, FI. Such property shall hereinafter be referred to as the "leased premises" or the "demised premises" or the "leased property. II 1 . LEASE TERM. The term of this lease shall commence simultaneously with conveyance of title to the leased property from Lessee to Lessor, and shall continue until midnight on Sunday, the 31 st day of August, 2003 (the "termination date"). 2. RENT. The Lessee agrees to pay and the Lessor agrees to accept as rent during the term of this lease the sum of One Dollar ($1.00), and other good and valuable consideration, including but not limited to the faithful completion of all terms, provisions, covenants and obligations of Lessee as required by this Lease Contract. 3. SECURITY DEPOSIT. The parties hereto acknowledge that Lessor has retained and is holding Ten Thousand and 00/100 Dollars ($10,000.00) of the Purchase Price Lessor contracted to pay Lessee for the leased property, the same to be held as security for the performance of Lessee's obligations under this lease, including without limitation the surrender of possession of the premises to Lessor as herein provided. If Lessor applies any part of the deposit to cure any default of Lessee, Lessee shall on demand deposit with Lessor the amount so applied so that Lessor shall have the full deposit on hand at all times during the term of this lease. Upon the full and faithful performance by Lessee of all the terms and conditions of this Lease Contract, Lessor shall promptly disburse the full amount of the Security Deposit to Lessee within ten (10) days following lease termination, less any disbursements made by Lessor on behalf of Lessee in fulfillment of Lessee's obligations hereunder. 4. USE OF PREMISES. The premises are leased to Lessee solely for the following uses and no other use can be made of the premises during the term without the written consent of the Lessor: The premises will be used exclusively for single family residential purposes. 5. UTILITIES. Water, sewer, electric and all other utilities of any kind shall be billed directly to Lessee or tenants of Lessee, and are or shall be individually metered for the subject premises. All deposits for such utilities shall be the sole responsibility of Lessee. 6. TAXES AND ASSESSMENTS Lessee shall be responsible for prompt payment of all real estate taxes, tangible personal property taxes, any liens and assessments levied against the leased property during the term, or subsequent to the term hereof, if such liens or assessments result from the actions or inactions of Lessee as the same may relate to the operation of this Lease Contract. Provisions of Paragraph 3 (Security Deposit) are applicable to insuring Lessee compliance with requirements of this paragraph. 7 . OBSERVANCE OF LAWS AND ORDINANCES. Lessee agrees to observe, comply with and execute promptly at its expense during the term hereof, all laws, rules, requirements, orders, directives, codes, ordinances and regulations of governmental authorities and agencies and of insurance carriers which relate to its use or occupancy of the demised premises. 8. ASSIGNMENT OR SUBLEASE. Lessee shall not, without first obtaining the written consent of Lessor, assign, mortgage, pledge, or encumber this lease, in whole or in part, or sublet the premises or any part thereof other than to those tenants of Lessee as previously disclosed to Lessor, or as must subsequently be disclosed in the event of a successor tenancy. Lessor expressly covenants that such consent to sublet shall not be unreasonably or arbitrarily refused. This covenant shall be binding on the legal representatives of Lessee, and on every person to whom Lessee's interest under this lease passes by operation of law. 9. ALTERATIONS AND IMPROVEMENTS. The Lessee shall not make any structural alterations or modifications or improvements which are part of the leased property without the written consent of the Lessor, and any such modifications or additions to said property shall become the property of the Lessor upon the termination of this lease or, at Lessor's option, the Lessee shall restore the leased property at Lessee's expense to its original condition. The restrictions of this paragraph shall not apply to maintenance of the leased property, but shall apply to any change which changes the architecture or purpose of the property or which changes any of the interior walls of the improvements or which annexes a fixture to any part of the leased property which cannot be removed without damage thereto. In the event Lessee desires to make any alterations or modifications, written notice shall be given to the Lessor. Unless the Lessor objects to such proposals by notice to Lessee within twenty (20) days after written notice from Lessee, the proposal shall be deemed approved. Lessee shall have no power or authority to permit mechanics or materialmen's liens to be placed upon the leased property in connection with maintenance, alterations or modifications. Lessee shall, within fifteen (15) days after notice from Lessor, discharge any mechanic's liens for materials or labor claimed to have been furnished to the premises on Lessee's behalf. Not later than the last day of the term Lessee shall, at Lessee's expense, remove all of Lessee's personal property and those improvements made by Lessee which Page 2 of 7 have not become the property of Lessor, including trade fixtures and the like. All property remaining on the premises after the last day of the term of this lease shall be conclusively deemed abandoned and may be removed by Lessor and Lessee shall reimburse Lessor for the cost of such removal. 10. REMOVAL OF IMPROVEMENTS Lessee, at Lessee option, shall have the priviledge of removing the residential structure from the subject property. In the event Lessee intends to exercise such option, written Notice shall be provided to Lessor not later than sixty (60) days prior to the termination date, whereupon the structure may be removed at Lessee's sole cost and expense. All work activities, including removal of debris and lot leveling, shall be fully completed by not later than the termination date of this Lease. Lessee shall be responsible for obtaining all permits required to remove and move the structure, proper cutting and capping of sanitary, gas and water services, termination of solid waste, electric, telephone, cable and all other utility and any other services provided to the subject property. Lessee shall pay the full cost of all such services through date of detmination, including any service charges for termination of same. Mechanics and materialmen's lien covenants of Paragraphs 9 and 21 hereof are fully appliable to every provision contained herein. In the exercise of the rights and priviledges as provided herein, and as further assurance of Lessee compliance with its provisions, Lessee shall procure a performance bond in the amount of not less than $50,000 from a licensed bonding firm authorized to conduct business in the State of Florida bonding and guaranteeing Lessee compliance with all terms and conditions of this paragraph. 11. RIGHT OF ENTRY. The Lessor, or any of its agents, shall have the right to enter said premises during all reasonable hours, to examine the same to make such repairs, additions or alterations as may be deemed necessary for the safety, comfort, or preservation thereof, or of said building, or to exhibit said premises. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations or additions, which do not conform to this agreement. 12. RESTORING PREMISES TO ORIGINAL CONDITION. Lessee represents that the premises leased are in good, sanitary and tenantable condition for use by Lessee and Lessee's tenants. Lessee's acceptance or occupancy of the leased premises shall constitute a recognition of such condition. Lessee hereby accepts the premises in the condition they are in at the beginning of this lease and agrees to maintain said premises in the same condition, order and repair as they are at the commencement of said term, and to return the premises to their original condition at the expiration of the term, excepting only reasonable wear and tear arising from the use thereof under this agreement. The Lessee agrees to make good to said Lessor immediately upon demand, any damage to water apparatus, or electric lights or any fixture, appliances or appurtenances of said premises, or of the walls or the building caused by any act or neglect of Lessee or of any person or persons in the employ or under the control of the Lessee. 13. INSURANCE. Lessee agrees to comply with all terms, provisions and requirements contained in Exhibit "B" attached hereto and made a part hereof as if said document were fully set forth at length herein. Page 3 of 7 14. MAINTENANCE. Lessee and any person or persons in the employee or under the control of Lessee shall keep the foundation, outer walls, roof and buried conduits of the premises in good repair. The same shall keep the inside of said premises and the interior doors, windows and window frames of said premises in good order, condition and repair and shall also keep the premises in a clean, sanitary and safe condition in accordance with law and in accordance with all directions, rules and regulations of governmental agencies having jurisdiction. The Lessee shall be responsible for providing all light bulbs used on the premises. The plumbing facilities shall not be used for any other purposes than that for which they are constructed and no foreign substances of any kind shall be thrown therein, and the expense of any breakage, stoppage or damage resulting from the violation of this provision shall be borne by the Lessee. The heating and air-conditioning system and plumbing facilities shall be under the control of Lessee, and all repair or replacements of such facilities will be at Lessee's expense. In the event Lessor pays any monies required to be paid by Lessee hereunder, Lessor shall demand repayment of same from Lessee and Lessee shall make payment within ten (10) days of receipt of said demand. Lessee's failure to make such repayment within the ten (10) day period shall constitute a default under the terms of this lease. 15. DESTRUCTION OF PREMISES. In the event that the building should be totally destroyed by fire, earthquake or other cause, to such an extent that it cannot be rebuilt or repaired within sixty (60) days after the date of such destruction, this lease shall be terminated. In the event that the building should be partially damaged by fire, earthquake or other cause, but only to such an extent that it can be rebuilt or repaired within sixty (60) days after the date of such destruction, the lease shall be void or voidable, but not terminated, except as otherwise provided herein. If the Lessee intends to rebuild or repair the premises, he shall, within fifteen (15) days after the date of such damage, give written notice to Lessor of his intention to rebuild or repair and shall proceed with reasonable diligence to restore the building to substantially the same condition in which it was immediately prior to the destruction. If, after rebuilding or repairing has commenced, such rebuilding or repairing cannot be completed within sixty (60) days after the date of such partial destruction, the Lessor may terminate this lease. 16. EMINENT DOMAIN. If the whole or any part of the premises hereby leased shall be taken by any public authority under power of eminent domain, then the term of this lease shall cease on the part so taken from the date title vests pursuant to such taking, and the rent and any additional rent shall be paid up to that day, and if such portion of the demised premises is so taken as to destroy the usefulness of the premises for the purpose for which the premises were leased, then from that day the Lessee shall have the right to either terminate this lease or to continue in possession of the remainder of the same under the terms herein provided, except that the rent shall be reduced in proportion to the amount of the premises taken. The parties agree that the Lessee shall not be entitled to any damages by reason of the taking of this leasehold, or be entitled to any part of the award for such taking, or any payment in lieu thereof. Page 4 of 7 17 . DEFAULT; REMEDIES. The Lessee further covenants that, if the Lessee shall violate any of the covenants of this lease, such violation shall be considered a default hereunder, and should Lessee fail to correct such default within fifteen (15) days after a written request by the Lessor to do so, then the Lessor may, at its option, deem this lease terminated. Lessee shall thereafter become a tenant at sufferance, and the Lessor shall be entitled to obtain possession of the premises as provided by law. 19. MISCELLANEOUS. (a) The Lessor shall have the unrestricted right of assigning this lease at any time, and in the event of such assignment, the Lessor shall be relieved of all liabilities hereunder. (b) This contract shall bind the Lessor and its assigns or successors, and the Lessee and assigns and successors of the Lessee. (c) It is understood and agreed between the parties hereto that time is of the essence of this contract and this applies to all terms and conditions contained herein. (d) It is understood and agreed between the parties hereto that written notice sent by certified or registered mail, or hand delivered to the premises leased hereunder, shall constitute sufficient notice to the Lessee, and written notice sent by certified or registered mail or hand delivered to the office of the Lessor shall constitute sufficient notice to the Lessor, to comply with the terms of this contract. (e) The rights of the Lessor under the foregoing shall be cumulative, and failure on the part of the Lessor to exercise promptly any rights given hereunder shall not operate to forfeit any of the said rights. (f) It is hereby understood and agreed that Lessee shall use no signs in connection with the premises hereunder. (g) It is understood that no representations or promises shall be binding on the parties hereto except those representations and promises contained herein or in some future writing signed by the party making such representations or promises. 20. SUBROGATION. The Lessor and Lessee do agree that each will cause its policies of insurance for fire and extended coverage to be so endorsed as to waive any rights of subrogation which would be otherwise available to the insurance carriers, by reason of any loss or damage to the leased property or property of Lessor. Each party shall look first to any insurance in its favor before making any claim against the other party. Nothing contained herein shall in any way be considered or construed as a waiver or release by the Lessor of any and all of the other covenants and conditions contained in this lease to be performed by the Lessee. Page 5 of 7 21. INDEMNIFICATION. The Lessee shall indemnify the Lessor against all liabilities, expenses and losses incurred by the Lessor arising out of or related to the leased premises or Lessee's use or occupancy thereof, to include but not being limited to (a) failure by the Lessee, or its agents, to perform any provision, term, covenant or agreement required to be performed by the Lessee under this agreement; (b) any occurrence, injury or personal or property damage which shall happen in or about the leased property or appurtenances resulting from the condition, maintenance, construction on or of the operation of the leased property; (c) failure to comply with any requirements of any governmental authority or insurance company insuring the leased property or its contents; (d) any security agreement, conditional bill of sale or chattel mortgage or mechanic's lien connected with Lessee, its obligations or operations, filed against the leased property, fixtures, equipment or personalty therein; and (e) any construction, work, alterations or improvements by Lessee on the leased property. Such indemnification shall include reasonable attorney's fees for all proceedings, trials and appeals. 22. "AS IS" CONDITION. The Lessee accepts the leased premises on an "as is" basis, and Lessor shall have no obligation to improve or remodel the leased premises. 23. SEVERANCE. The invalidity or unenforceability of any portion of this lease shall in nowise affect the remaining provisions and portions hereof. 24. CAPTIONS. The paragraph captions used throughout this lease are for the purpose of reference only and are not to be considered in the construction of this lease or in the interpretation of the rights or obligations of the parties hereto. 29. NO HAZARDOUS MATERIALS. The Lessee herewith covenants and agrees that no hazardous materials, hazardous waste, or other hazardous substances will be used, handled, stored or otherwise placed upon the property or, in the alternative, that such materials, wastes or substances may be located on the property, only upon the prior written consent of the Lessor hereunder, and only in strict accord and compliance with any and all applicable state and federal laws and ordinances. In the event such materials are utilized, handled, stored or otherwise placed upon the property, Lessee expressly herewith agrees to indemnify and hold Lessor harmless from any and all costs incurred by Lessor or damages as may be assessed against Lessor in connection with or otherwise relating to said hazardous materials, wastes or substances at anytime, without regard to the term of this lease. This provision shall specifically survive the termination hereof. 30. CONFORMANCE WITH LAWS. Lessee agrees to comply with all applicable federal, state and local laws during the life of this Contract. Page 6 of 7 31. ATTORNEY'S FEES. In the event that either party seeks to enforce this Contract through attorneys at law, then the parties agree that each party shall bear its own attorney fees and costs. 32. GOVERNING LAW. The laws of the State of Florida shall govern this Contract, any action brought by either party shall lie in Pinellas County, Florida. IN WITNESS WHEREOF, the parties hereto have executed this Contract as of the date set forth above. I LESSOR I CITY OF CLEARWATER, FLORIDA Countersigned: BY~:'~.M--.~ William B. Horne II City Manager kP:~ Ass' n an't ~~t~ Attorney . Attest: ~~-~~~ p~ynt la . GOb{deau 1) - City Clerk . . . - . . . . - I LESSEE Page 7 of 7 '\ EXHIBIT "B" II INSURANCE II Prooertv Insurance: Lessee shall procure and maintain for the life of the Lease, Property Insurance to cover any loss resulting from destruction or damage to real and personal property. The policy of insurance shall be an "All Risk" type, excluding Flood Insurance in recognition of subject property being located outside of a 100-year storm event flood zone designation Qn National Flood Insurance Rate Map Community Panel No. 125096 0015 D as revised August 19, 1991. The policy shall be written on a 100% replacement value basis and Lessee may elect a deductible amount up to but not more than $1,000. Lessor shall be included and identified as an Additional Insured under the policy and on the Certificate of Insurance. liabilitv Insurance: Lessee shall procure and maintain for the life of the Lease, General Liability Insurance. This coverage shall be on an "Occurrence" basis. The policy shall provide coverage for death, bodily injury, personal injury or property damage that could arise directly or indirectly from the performance and operation of this Lease. The minimum limits of coverage shall be $300,000 Per Occurrence Combined Single Limit for Bodily Injury Liability and Property Damage. The Lessor shall be included and identified as an Additional Insured under the policy and on the Certificate of Insurance. The insurance coverages and conditions afforded by these policies shall not be suspended, voided, cancelled or modified except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City's Risk Management Office. All insurance policies required within this provision shall provide full coverage from the first dollar of exposure unless stipulated. No deductibles will be accepted other than as stipulated herein. Certificates of Insurance Meeting the specific required insurance provisions specified in this Lease shall be forwarded to the City's Risk Management Office and approved prior to Lease commencement. After review, the Certificate will be filed as part of the official Lease file. Radon Gas Notification, as required by Florida Statute 404.056(8) is to be inserted in all contracts for sale, purchase or rental of real property. Radon Gas: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county health unit.