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FIRST AMENDMENT TO LEASE AGREEMENTFIRST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEMENT (the "Amendment") is made and entered into on this day of + 2010, ("Effective Date") by and between the City of Clearwater, Florida, a municipal corporation of the state of Florida, ( "City") and the Clearwater Golf Associates, Inc., whose address is 1875 Airport Drive, Clearwater Florida 33765, ("Club") amending that certain Lease Agreement ("Lease") between the parties dated December 19, 2001, and recorded on January 17, 2002 in O.R. Book 11793, page 759, Public Records of Pinellas County, Florida. WHEREAS, pursuant to the original Lease, the City leased certain city-owned property ("Golf Course") to the Club; and WHEREAS, the Club has been faithful to comply with all of the provisions of the Agreement; and WHEREAS, over the past seven (7) years the Club has invested over $1,000,000 in upgrades and improvements to the Golf Course property and buildings in accordance with the Lease; and WHEREAS, the Club has created a much improved asset for the City and provided excellent golfing and recreational opportunities and programs for residents and visitors to Clearwater; and WHEREAS, there are additional improvements that need to be made at the golf course over the next several years due to environmental circumstances (water resources) outside of the control of the Club and the City; and WHEREAS, the Club needs additional relief from its obligations under the current Lease in order to accomplish the additional improvements, which are estimated to be valued at $250,000; and WHEREAS, the City agrees that the additional upgrades, including rebuilding greens, sand traps, tee boxes, and providing connection to reclaimed water from existing deep wells, are in the 1 public interest, necessary to maintain the City's property asset, and continue providing the recreational services provided by the Club and the City, and that such improvements are a value to the City and citizens of Clearwater and beyond the normal routine maintenance obligations of the Club; and WHEREAS, the parties desire to amend the Lease so that the Club can construct these additional needed improvements. NOW THEREFORE, in consideration of the mutual covenants set forth herein, and other good and valuable consideration, the receipt of which are hereby acknowledged, the Parties agree as follows: 1. Recitals. The foregoing recitals are true and correct and are incorporated in and form a part of this Agreement 2. Lease Extension. The last sentence of Section 1 of the Lease is hereby amended to provide for a Lease extension of seven (7) years ("Lease Extension") and shall read as follows: "The term of this lease shall be for a period of twenty seven (2927) years, commencing March 1, 2002, and ending February 28, 2922 2029 , unless sooner terminated by the provisions hereof." 3. Rent Relief in Consideration_ of Capital Improvements. Section 2, paragraph 4 is hereby amended to extend the period for the forgiveness of a portion of the rent payments due for an additional period of seven (7) years, resulting in fifty percent (50%) rent forgiveness for a total of fourteen (14) years from the Effective Date of the Lease, and shall read as follows: "As consideration of the Club's capital improvements described in Section 5 of this Agreement, the City agrees to relieve fifty percent (50%) of the base rental only for the first seven fourteen (714) years of the Agreement.. Beginning with the eighth-fifteenth (15!h year of this Agreement as amended, through termination, full base rent plus any additional rent will be due." 2 4. Section 5 is amended to provide for the additional list of improvements to be made and shall read as follows: (e) During the seventh to fourteenth years of this Agreement, the Club shall rebuild the greens, sand traps, tee boxes and construct the necessary hookup to begin using reclaimed water as soon as it is available to the Golf Course. Notwithstanding an other covenants and conditions in the Lease to the contra the Club shall not be entitled to an reimbursement for the improvements provided for in this Amendment and Club acknowledges that the timeframe for an reimbursement to which it may have been entitled under the original terms of the Lease (specifically Section 21), have expired. No reimbursement whatsoever is due from the City to the Club for improvements made to the Golf Course. 5. All other terms and conditions of the Lease shall remain in full force and effect. IN WITNESS WHEREOF, the parties have executed and delivered this Amendment the day and year first above written. Countersigned: CLEARWATER GOLF ASSOCIATES, INC. By: J.rrj +tuston President CITY OF CLEARWATER, FLORIDA By: 02-?-44' a-d±4-? Frank V. Hibbard William B. Horne, II Mayor City Manager Approved as to form: Attest: Of THE Laura Lipowski Mahony C thia E. Goudeau Assistant City Attorney Ci lerk Q.-