THREE YEAR LEASE AGREEMENT
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LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this I~ of /11A-1, 1999,
by and between the CITY OF CLEARWATER, FLORIDA, a municipal corporation,
hereinafter referred to as "Lessor", and CHARLES J. AND SANDRA POLLICK, DIBI AI
BAIT HOUSE, 25 Causeway Boulevard, Clearwater, Florida 33767, 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 in the City of Clearwater, Pinellas County,
Florida, to wit:
See attached Exhibit "A."
THE PARTIES HERETO HEREBY COVENANT AND AGREE AS FOLLOWS:
1. The term of this lease shall be for a three (3) year period beginning
/YJ1tV I, (1 q '1 . The Lessor retains the right to terminate this lease for any
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municipal need consistent with the Lessor's charter; and, in addition, Lessor may terminate
this lease if the State of Florida or any of its agencies or political subdivisions thereof acquire
the demised property or any portion thereof for a public purpose. This right of termination is
in addition to the right of termination set out in paragraph 14 of this Agreement. If Lessor
elects to terminate during the term of the lease, then Lessor agrees to reimburse Lessee for
those permanent improvements to the premises approved by Lessor. Lessee must submit
written reports of all improvements within thirty (30) days of completion for Lessor's
approval. Upon termination, Lessor agrees to reimburse Lessee for approved improvements
on a declining pro rata basis which shall begin with 100% on the day of commencement and
which shall be reduced by 1/36 for each month of the term until termination. Lessor's City
Commission must approve all claims for reimbursement by Lessee.
Charles J. & Sandra Pollick, d/b/a Bait House
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2. The Lessee hereby covenants and agrees to pay rental thereof as follows:
a. To pay the total sum of $19,080.00 based on the existing square-footage of
the existing Bait house as it stood on 25 January 1999 for the thirty-six month term of this
lease, which shall be paid in equal monthly payments of $530.00. If additional square-footage
is constructed or occupied, it shall be paid monthly at a rate of $10.00 per square foot, except
for public restrooms to be constructed by Lessee. Each monthly payment shall be due and
payable on the first day of the month, and shall be delinquent if not paid on or before the fifth
day of the month. In addition to the monthly rental, the Lessee shall, at the end of each
month, pay additional amounts equal to eight (8) percent of monthly gross sales of all items
excluding alcohol beverages exceeding $10,000.00 and eight (8) percent of monthly gross sales
of all alcohol beverages throughout the term of this lease. This payment will be made along
with the Lessee's payment of the monthly rent. The Lessee will provide the Lessor within 15
days after the end of each month during the term of this lease a statement showing the amount
of gross sales with alcohol beverage gross sales accounted seperately during the month. The
statement used by the Lessee to report such sales will be in form satisfactory to the City
Manager or his designee, showing the amount of gross sales for the month being reported and
the amount of year-to-date gross sales for the lease year. The term "gross sales" as used in this
paragraph means the entire amount of the actual sales receipts, whether for cash or otherwise,
for all sales conducted in, on or from the premises. The term "alcohol beverage" means all
beverages containing alcohol. 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 excise tax imposed by a governmental authority wherein Lessee is regarded as the
collecting agent. Also, a consumer price index (CPI) increase will be added to the rent
payment on January 1, 2000 of the lease, January 1, 2001 and January 1, 2002
b. Any amount due from Lessee to Lessor under this lease which is not paid
before the day the payment becomes delinquent shall bear interest at the rate of fourteen
(14%) percent per anum from date due until paid, plus a late charge of Ten Dollars ($10.00) to
cover Lessor's expenses in collecting such delinquency.
c. In addition to the first month's rent of $530.00, which is due and payable on
the first day of the lease, the Lessee shall pay $30.00 in advance as a deposit to secure the
Charles J. & Sandra Pollick, d/b/a Bait House
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faithful performance of the Lessee's obligations hereunder. The Lessor may deduct from the
deposit any amount which might become due from the Lessee to the Lessor for damage to the
premises or for any reason or cause whatsoever except rent. At the end of the term of this
lease, the deposit amount or the balance thereof, if any, shall be credited to Lessee's last
monthly rental payment.
d. Lessee agrees to pay any lease for submerged lands that may result from
Lessee's use of premises.
3. The demised premises shall be used only for the purpose of conducting therein the
sale of live and frozen bait and ice, food, non-alcoholic beverages and beer package sales only,
the sale, rental and repair of sport fishing equipment including but not limited to heavy rods
and reels, specialized bait rigs, deep sea sport fishing equipment and other similar equipment.
Lessee is authorized to rent boats in the slips located on the North side of the bait house pier.
These rental boats are to be used strictly for fishing, no other use is authorized. The lessee is
also authorized to conduct charter activities subject to and limited by docking space to be
allocated and assigned by the Harbormaster. Charter activities shall be limited to the inland
water of Clearwater Harbor, Clearwater Bay, and surrounding coastal waters, unless
specifically exempted from such restriction by the Harbormaster. The sale of other associated
commodities such as nautical gifts and associated sundries may be permitted; however any use
of the premises beyond the sale of bait, ice, food, non-alcoholic beverages and beer package
sales, and the sport fishing equipment outlined herein will require the prior written approval
of Lessor, which approval shall not be unreasonably withheld.
a. The use of the premises to provide information, reservation or booking service for
other commercial sports fishing enterprise operated from the marina is expressly prohibited.
Lessee may, at her option, provide facilities for the mooring of customers boats on the North
and East sides of the above dock. No mooring facilities may be provided on the South side of
the such dock.
b. No boat of any kind except Lessee's charter, rental fishing boats and non-passenger
carrying bait boats may be dock overnight without the prior written consent of the Lessor.
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4. The Lessee hereby covenants and agrees to make no unlawful, improper, or
offensive use of the leased premises. Lessee further covenants and agrees not to assign,
mortgage, pledge, hypothecate or sublet this lease or any of its right herein in whole or in part
without the prior written consent of Lessor. 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 of 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, sub-tenant or occupant, and apply the net amount collected to the rent
herein required, but no such occupancy or collection shall be deemed a waiver of this
covenant, or the acceptance of the assignee, sub-tenant 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 part or all of the corporate shares
of Lessee shall be transferred by sale, assignment, bequest, inheritance, operation of law or
other disposition so as to result in a change in the present effective voting control of Lessee by
the person, persons or entity which presently is the ultimate owner of a majority of such
corporate shares on the date of this leases, Lessee shall promptly notify Lessor in writing of
such change. If the new owner is a private or public corporation, Lessor shall promptly advise
Lessee if it has any objections thereto and the reasons therefor. Lessor may terminate this
lease any time after such change in control by 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.
5. Lessee agrees that it will promptly pay all ad valorem real property taxes and
personal property taxes that may be assessed and filed against the demised property or the
leasehold created by this agreement, or both, during the term of this lease. 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 pay all other taxes and fees, including, but not limited to, occupational
license, beverage license, and permits relating the operation of the business conducted on the
demised premises, which are required by law. Nothing herein shall obligate Lessee to payor
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to reimburse Lessor for the payment of assessments for permanent improvements, including
but not limited to sidewalks, sewers, and streets, that would benefit the demised premises.
6. The Lessee hereby covenants and agrees to pay all bills for electrical service and
water usage to the premises when due, which electrical service shall be provided by Florida
Power Corporation, in accordance with the company's rates and billing, and water service
provided by The City of Clearwater, in accordance with the City of Clearwater's rates and
billing. At no expense to the Lessee, the Lessor agrees to furnish a refuse disposal location and
a refuse disposal container located outside the demised premises for the use of the Lessee.
7. The Lessee further covenants and agrees to operate the business authorized to be
conducted on the premises three hundred sixty five (365) days a year during the term of this
lease, except for any period of time involved in natural disasters, including governmental
orders or requirements such as evacuation for hurricane preparations, and any time necessary
to repair or replace any damage caused to the demised premises by as natural disaster.
8. The Lessee assumes full responsibility for and covenants and agrees to save harmless
and indemnify the Lessor from any and all liability for damage to property and injury to
persons resulting from or in connection with the Lessee's use and occupancy of the demised
premises under this lease. In addition, during the term of the lease, Lessee shall at Lessee's
expense obtain and maintain insurance coverage conforming to the requirements in Exhibit
"B" attached hereto.
9. If at any time during the term of this lease, the building or premises or any part,
system or component hereof (hereinafter, the "demised premises") shall be damaged or
destroyed to the extent that the Lessee cannot operate the business authorized to be conducted
thereon, and the Lessor determines that said demised premises can be restored by making
appropriate repairs, the monthly rent as provided for in paragraph 2a above shall abate until
the demised premises have been restored or until commencement of business by the Lessee,
whichever is sooner.
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 or Lessor may
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d. Lessee's vacating or abandoning the premises; then Lessor, at its option, may
exercise anyone or more of the following remedies which shall be cumulative;
(1) Terminate Lessee's right to possession under this lease and re-enter
and take possession of the premises, and re-Iet or attempt to re-Iet the premises on behalf of
Lessee; however, such re-Ietting or attempt to re-Iet shall only involve a prospective tenant
capable of providing comparable or better type service, at such rent and under such terms and
conditions as Lessor may deem best under the circumstances for the purpose of reducing
Lessee's liability, and Lessor shall not be deemed to have thereby accepted a surrender of the
premises, and Lessee shall remain liable for all rents and additional rents due under this lease
and for all damages suffered by Lessor because of Lessee's breach of any of the covenants of
this lease. Said damages shall include, but not be limited to, charges for removal and storage of
Lessee's property, remodeling and repairs, leasing, commissions and legal fees. In addition to
its remedies hereunder, Lessor may accelerate all fixed rentals due under 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 re-Ietting pursuant to this
subsection, Lessor may by delivering written notice to Lessee, elect to exercise its option
under the following subparagraph to accept a surrender of the premises, terminate and cancel
this lease, and retake possession and occupancy of the premise on behalf of Lessor.
(2) Declare this lease to be terminated, whereupon the term hereby
granted and all rights, 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 subparagraph (1) of this paragraph which are suffered by Lessor because of Lessee's
breach of any covenant under this lease.
(3) Exercise any and all rights and privileges that Lessor may have under
the laws of the State of Florida and the United States of America.
11. a. The Lessee hereby covenants and agrees to keep and maintain the premises
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terminate this lease as of the date of such damage or upon thirty (30) days written notice to the
other party to this lease.
In the event of damage or destruction as enumerated above, and except as otherwise
specifically provided under this agreement, both parties waive any and all rights of recovery
against the other party for any direct or indirect loss occurring to the demised premises or as a
result of damage or destruction of the demised premises.
10. 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;
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 requires more than fifteen (15) days to cure,
there shall be no Event or Default if Lessee has commenced curative action with the fifteen
(15) day period and diligently prosecutes such action to completion;
c. There shall be filed by or against Lessee in any court pursuant to any statute
either of the United States or of any state, a petition in bankruptcy or insolvency or for
reorganization or arrangement, or for the appointment of a receiver or trustee of all or a
portion of Lessee's property, or if Lessee makes an assignment for the benefit of creditors or if
there is an assignment by operation of law, or if Lessee makes application to Lessee's creditors
to settle or compound or extend the time for payment of Lessee's obligations, or if execution,
seizure or attachment shall be levied upon any of Lessee's; property or the premises are taken
or occupied or attempted to be taken or occupied by someone other than Lessee; however, in
the event of execution, seizure or attachment, Lessee may post a bond satisfactory to Lessor
which bond shall stay the default resulting from any execution, levy, seizure or attachment for
a period of 120 days. Failure to remove the levy, seizure or attachment within the 120 day
period shall constitute an Event or Default, and the bond posted shall be forfeited; or
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and fixtures located herein in good condition and repair during the term of this lease and any
extension hereof, and to return the premises to the Lessor upon the expiration of the term
hereof in as good condition as they now are, ordinary wear and tear and damage by the
elements only excepted. No alteration or improvements may be made to the premises
without the written consent of the Lessor. Any and all fixtures attached to the premises shall
revert absolutely and become the property of the Lessor upon the expiration of the term
hereof; provided, however, that the Lessor at its option may require the Lessee to remove all
fixtures, partitions, racks, shelves or other improvements from the premises upon the
expiration of the term of the lease at the cost of the Lessee. Any damage to the premises
occasioned by said removal shall be repaired at the Lessee's expense.
12. The Lessee, at its own cost, may place only window, wall or canopy signs on the
demised premises, provided said signs are approved as to color, style and letter size by the
Harbormaster of the Lessor, and additionally conform to the sign ordinance of Lessor
presently in force or as may be amended from time to time during the term of the lease. No
other signs shall be placed or maintained by the Lessee on the premises. Any nonconforming
sign now on the premises shall be removed by the Lessee within 30 days of approval of the
lease. The Lessee shall, upon expiration or termination of the lease, completely remove any
and all signs that have been placed on the leased premises by the Lessee.
13. If at any time during the term of the lease the Lessee is authorized to make
improvements to the demised premises, Lessee agrees in such event to indemnify and save
harmless the Lessor as follows:
a. For any mechanic's lien which may be asserted as a claim against the leased
property; and
b. For the faithful performance of the covenants contained in paragraph 11
above; and
c. To obtain from the contractor a good and sufficient performance and
payment bond signed by a reputable insurance company doing business in Florida, which
bond shall be in an amount equal to one hundred (100%) percent of the cost of construction of
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the contemplated improvements to the demised premises, guaranteeing that the improvements
will be completed and that subcontractors, laborers and materialmen will be paid in
accordance with the contract for the improvements.
14. In the event of the acquisition of this property or any portion thereof by exercise
of proper authority, by any governmental agency other than Lessor, whether by eminent
domain or otherwise, it is understood and agreed that notification of the institution of such
action shall be promptly given Lessee, so the Lessee may intervene in such action as a party.
Lessee agrees to comply with the results of any such actions, and agrees to release and hold the
lessor harmless from any damages resulting thereof.
15. 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 hindrance or interruption by
Lessor.
16. Notices hereunder shall be given only by registered or certified mail, and shall be
deemed given when the letter is deposited in the mail, postage and other 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 therefor by proper notice hereunder. Lessor's
notices shall be directed in care of its Law Department at the above-cited address.
17. The undersigned shall personally guarantee to Lessor the timely performance of all
covenants and provisions of this Lease Agreement, including, but not limited to the timely
payment of all rent due hereunder.
18. Additionally, the Lessee and all his/her employees will park their private vehicles
in the Memorial Civic Center parking lot or other parking lot designated by the
Harbormaster.
19. This lease agreement constitutes the entire contract between Lessor and Lessee
concerning the leasing of the premises and consideration thereof.
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20. In the event either party seeks to enforce this agreement or interpret any provision
thereof by law, or through attorneys at law, each party agrees to pay for its own attorneys fees
and costs, and that jurisdiction shall be in a court of competent jurisdiction in Pinellas
County, Florida.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals this /~
day of fi1k1 , 1999.
of Clearwater, Florida
By:
Michael J. Roberto
City Manager
Approved as to form and
legal sufficiency:
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John C. Carassas
Assistant City Attorney
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Attest:
WITNESSES:
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!a>ft,~ ~a~
Charles J. & Sandra Pollick, d/b/a Bait House
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Exhibit "A"
LEGAL DESCRIPTION
Bait House, Slip Number 153, including the 70' by 14' dock abutting the north side of
Slip Number 152, located on Lot 10 of City Park Subdivision, according to the map or plat
thereof as recorded in Plat Book 23, page 37 of the public records of Pinellas County, Florida.
Exhibit "B"
1. Liability Insurance. Lessee shall maintain:
a. Comprehensive General Liability Insurance to include premises/operator
liability and electrical liability in an amount no less than $300,000 combined
single limit Bodily Injury Liability and Property Damage Liability.
b. Comprehensive Plate Glass Insurance on a replacement cost basis covering
loss or damage by any means, except fire, or war, whether declared or not,
to the plate glass windows in the demised premises.
c. Worker's Compensation Insurance applicable to its employees for statutory
coverage limits in compliance with Florida laws.
2. Additional Insurance. The City is to be specifically included as an additional
insured on all liability coverage described above.
3. Notice of Cancellation or Restriction - All policies of insurance must be endorsed
to provide the City with thirty (30) days notice of cancellation or restriction.
4. Certified Copies of Policies. The Lessee shall provide the Lessor (City's Risk
Management Office) with certified copies of all policies as required above before
occupancy of the demised premises, and from time to time as the policies may be
renewed, revised or obtained from other insurers.
Charles J. & Sandra Pollick, d/b/a Bait House
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Exhibit "C"
GUARANTY OF PAYMENT OF RENT UNDER LEASE AGREEMENT
Guaranty is made to/lI'f I , 1999, by Charles J. Pollick and Sandra Pollick of
Bait House, City of Clearwater, County of Pinellas, State of Florida, herein referred to as
"Personal Guarantors"; being the Lessee's respectively, of Bait House herein referred to as
"Obligor"; to the CITY OF CLEARWATER, C/O CITY ATTORNEY, P.O. BOX 4748,
CLEARWATER, FLROIDA 34618-4748, herein referred to as "Obligee".
RECITALS
1. Obligee has leased premises at 25 Causeway Blvd. To Obligor, whose business address
is 25 Causeway Blvd., City of Clearwater, County of Pinellas, State of Florida, for use
by Obligor in conducting its business of a bait house.
2. The lease is conditioned upon guarantors giving security for payment of rent
thereunder in the form of a personal guaranty.
SECTION ONE
STATEMENT OF GUARANTY
Guarantors guarantee payment of rent under the attached lease agreement pursuant to the
terms thereof. If obligor defaults in the payment of any installment of rent, guarantors shall
pay the amount of such installment within 30 days after receipt of notice of default and
demand for payment. Guarantors liability hereunder shall not be affected by reason of any
extension of time for payment of any installment granted by obligee to obligor.
SECTION TWO
DURATION
This guaranty shall not be revoked during the three (3) year term of the lease. Thereafter,
if the lease is renewed on the same terms, this guaranty shall remain in force until receipt by
obligee of written notice of revocation from guarantors, or until terminated pursuant to
Section Three hereof. Renewal of the lease on different terms shall, at the option of the
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guarantors, operate to terminate this guaranty as of the end of the three (3) year period.
SECTION THREE
LIMITATION OF LIABILITY
The maximum amount recoverable by obligee from guarantors pursuant to this guarantee
is $19,080.00, which amount is equal to the total rent due during the initial three (3) year term
of the lease. If the aggregate of payments made by guarantors hereunder reaches the above
mentioned amount, this guaranty shall terminate immediately.
SECTION FOUR
WAIVER NOTICE OF ACCEPTANCE
Notice of acceptance of this guaranty is expressly waived.
IN WITNESS WHEREOF, guarantors have executed this guaranty at Clearwater
Municipal Marina the day and year above written.
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Witness
uarantor - Charles J. Pollick
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Witness
Guarantor - Sandra Pollick
Charles J. & Sandra Pollick, d/b/a Bait House