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LEASE AGREEMENT - MARINA RESTAURANT�, LEASE AGREEMENT THIS LEASE AGREEMENT, made and entered into this ?p�,_ o���, 2011, by and between the CITY OF CLEARWATER, �^LORIDA, a municipal corporation, hereinaftex xefexxed to as "Lessox", and, Thomas C. Wolkowsky and Patricia A. Wolkowsky, d/b/a Maxina Restaurant, 25 Causeway Boulevard, Clearwater, Flarida 33767, hexeinafter referxed to as "Lessee." WITNESSETH: That in consideration of the covenants herein contained af the gxanting of rhis lease and the sums paid and to be paid hexeunder, the Lessox hereby leases ta the Lessee and the Lessee hereby leases from the Lessor accoxding to the terzns, canditions and covenants herein contained the following described pre:mises in the City of Clearwater, Pinellas Counry, Florida, to wit: See attached Exhibit "A." THE 1'ARTI�S HERETO HEREBY COVENANT AND AGREE AS FOLLOWS: 1. This lease shaJl be for a three (3) year lease term, with the oprion to �enew fox an additianal one (1) year term begzn.ning October 1, 2011, and ending either Septennber 30, 2014 or 2015 (if the �ption is e�ercised). The Lessor xetains the right to terniinate this lease fox any municipal purpose consistent with the Lessor's charteY, as well as failure to pay rent in a timely mannex or change in use of the property. In addition, Lessox may terminate this lease if the State of Florida or any of its agencies or political subdivisions thereof acquires the demised properry ar any portion thexeof fdx a public purpose. This xight of te�mination is in additian to the right of terrnin.ation set out in paxagraph 14 of this Agreement. 2. The Lessee hereby covenants and ag�rees to pay rental therea£ as follows: a. To pay the total sum af $25,214.76 plus tax for the fitst year of this lease, which shall be paid in equal monthly payments of $2,101.23 plus tax through September 30, 2012. Each manthly payment shall be due and payable on the fixst day of the month, and shall be delinquent if not paid on ox befa�e the fifth day of the month. Rental xates increase by 3% over the pxevious lease year xate on Octaber 1 st of each subsequent year of the lease. Tn addition to the monthly rental, the Lessee shall, at the end af each lease yeax pay an additional amount equal to five (5) percent of yearly gross sales exceed.ing $500,000.00 throughout the term of this lease. Wolkowsky lease for Marina Restauxant Page 1 This payment will be made within 30 days of Octobex 1g` in each year of the lease and will be submitted with cerrification of annual gross sales as reported by State Sales Tax returns. The statement used by the Lessee to repa�t such sales will be in a form satisfactary to the Ciry Manager or his designee, showing the amount o£ gross sales for the month being reported and the amount o£ year-to-date gxoss sales fot the lease year. The term "gross sales" as used in this paragraph means the enti.re amount of actual sales �eceipts, whether fox cash or otherwise, for all sales conducted in, on ar from the premises. No deducrion shall be allawed for uncollected ax uncollECtible credit accounts. Such term shall not include, however, any sums collected and paid aut for any sales or excise tax imposed by a govexnrmental authoriry wherein Lessee is regarded as the coU.ecting agent. 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 fouxteen (14%) percent per anum from date due until paid, plus a late charge of Ten Dollars ($10.00) to cover Lessox's expenses in collecting such delinquencq. c. Tn addition to the first month's rent o£ $2,101.23 plus tax, which is held bp the city, the Lessee shall pay an additional $190.80 in advance as a deposit to secure the faithful perfoxzxxance o£ the Lessee's obligations hereunder. The Lessoz may deduct £rom the deposit any amount, which might became due from the Lessee to the Lessox for damage to the premises or for any reason ox cause whatsoevet except xent. At the end of the texm of this lease, the deposit amount or the balance thereof, if any, shall be credited to Lessee's last monthly rental payment. d. If Lessot defaults in the payment of any installment of rcnt, Thomas C. Wolkowsky and Patricia A. Wolkowsky, being the ownexs respecrively, as Guarantat under the Guaranry af Payment of Rent Undex Lease Agreement (Exhibit "C", attached hereto and incorporated herein), shall pay the amount of such installment within 30 days aftex xeceipt of n�tice of default and demand for payment as provided £or thexein. 3. '1"he demised premises shall be used only far the purpose of conducting therein the business of a full service restauxant. 4. The Lessee hexeby covenants and agrees to make no unlawful, improper, or offensive use of the leased premises. Lessee further covenants and agrees not to assign, moxtgage, pledge, hypothecate o� sublet this lease or any of its right herein in whole or in part without the prior w�ritten consent of Lessor. The consent of Lessor to any assignment, moxtgaging, pledging, hypothecating or subletting shall not constitute a waiver of the necessity for such consent to any subsequent assigntnent, moxtgage, pledging, hypothecating or subletting. If this lease is assigned, or if the premises or any part thereaf are sublet or accupied by anybody athex than Lessee, Wolkawsky lease for Marina Restauxant I'age 2 Lessor may collect rent from the assignee, sub-tenant or occupant, and apply the net amount collected to the rent he�ein required, but no such occupancy ar collection shall be deemed a waiver of this covenant, or rhe acceptance of the assignee, sub-tenant ar occupant as tenant, or a release of Lessee from the fuxther performance by Lessee af covenants on the part of Lessee herein contained. If at any time duxing the term of this lease, any part or all of the corpoxate shates of Lessee shall be transferred by sale, assignment, bequest, inheritance, operation of law ot other disposition so as to result in a change in the present effective voting contxol of Lessee by the person, persons ox entiry which presendy is the ultimate ownex of a majority of such corporate shaxes on the date of this lease, Lessee shall prompdy notify Lessor in writing of such changc. If the new owner is a private or public carporation, Lessor shall prompdp advise Lessee if it has any objecrions thereto and the reasons therefor. Lessor may terniiriate this lease any time after such change in control by giving Lessee thixty (30) days prior written notice of such termuiatian. Lessee shall not permit any business to be opexated in or froxn the premises by any cancessianaire or Licensee. 5. Lessee agrees that it will promptly pay all ad valorem xeal propexty taxes and pexsonal 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 £urther agrees that it will pay any state sales tax due on the xental payment made by the Lessee to the Lessor and that it will pay all other taxes and fees, including, but not limited to, occupatianal license, beverage li.cense, and permits �elating the operation of the business canducted on the demised premises, which are required by law. Nathing hexein shall obligate Lessee ta pay or to reimburse Lessor for the payment of assessments far permanent improvements, including but not ]imited to sidewalks, sewers, and streets, that would benefit the demised premises. 6. The Lessee hereby covenants and ag�ees to pay all bills for electtical service to the premises when due, which service shall be provided by Progxess Energy Corporation, in accordance with the company's �ates and billing. At na expense to the Lessee, the Lessor agrees to furnish a refuse disposal locatian and a refuse disposal containe� located outside the demised premises for the use of the T essee. 7. The Lessee futther covenants and agtees to operate the business authorized to be conducted on the pxemises three hundred sixty five (365) days a year during the texm of this lease, except for any period af tune involved in natutal disastexs, includ.ing govemmental orders or requ.irements such as evacuatian f�r hurricane prepararions, and any rime necessary to repaix or replace any damage caused to the demised premises by as natural disaster and tvvo �veeks vacation each year. $. The l:.,essee assumes full responsibility for and covenants and agrees ta save harxnless and indemnify Walkowsky lease for Marina Restaurant Page 3 the Lessor from any and all ]iability for damage to property and injury to persons resulting from ar in connection with the Lessee's use and occupancy of the demised premises undex this lease. In addition, during the term of the lease, Lessee shall at Lessee's expense obtain and maintain insurance coverage conforrnuzg ta the requ.ixements in Exhibit "B" attached hereto. Notivng contained herein shall be construed as a waiver of any immunity from or limitation of liability the Lessor may be entided to under the doctrine of savereign immunity or section 768.28, Florida 5tatutes. 9. If at any time during the tern� of this lease, the building ar pxemises or any patt, 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 canducted thereon, and the Lessor determines that said dexnised premises can be restor�d by making appropriate repairs, the monthlq rent as provided fnr in paragraph 2a above shall abate until the demised premises have been restored or until commencement of business by the Lessee, whicheve� is sooner. If the demised p�emises shall be totally destroyed or so daxnaged as to render it pxactically useless duxing the tetm a£ this lease, then and in that event, the Lessee ox Lessot rnay texminate this lease as o£ the date of such damage or upon thirty (30) days written notice to the other party to this lease. In the event of damage ar destxuction as �numerated above, and except as otherwise specifically provided ur�der this agreement, both parties waive any and all rights of recovery against the other party for any direct or indixect loss occwrring to the demised premises or as a result of damage or destructian of the demised pxemises. In the case of demolition and reconstruction of the Marina or major renovation by construction, the Lessee shall be given the first opportunity to bid for sinvlar space, pxovided that space for Lessee's type of business is allocated therein. 10. Except as otherwise provided herein, upon the happening of any one or more of the following events ("Events of Default"): a. Lessee's default in the payment of any rental or othet sums due for a period of five (5) days after the due date; b. Lessee's continued default with xespect to any other covenant af this lease for a period of fi£teen (15) days after receipt of written notice af such defaul.t by Lessee from Lessor, provided that if such de£ault reasonably requixes moxe than fifteen (15) days to cure, there shall be no Event or Default if Lessee has Wolkawsky lease for Marina Restaurant Page 4 cammenced cu�ative action with the fifteen (15) day period and diligendy prosecutes such action ta campletion; c. I"here shall be filed by or agaanst Lessee in any court putsuant to any statute either of the United States or of any state, a petition in bankxuptcy or insolvency ox fox reorganization or arrangetxxent, or fax the appointment of a receiver or trustee of all or a portion of Lessee's property, ar if Lessee makes an assignznent for the benefit of cxeditors ox if there is an assignment by operation o£ law, or if Lessee makes applicatian to Lessee's creditors ta setde 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 rhe pxemises are taken or occupied ox 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 satisfactary ta Lessox which bond shall stay the default resulting from any execution, levy, seizu.re ar atta.chment far a period of 120 days. Failuxe to remove the levy, seizuxe or attachment within the 120 day period shall consritute an Event or Default, and the bond posted shall be forfeited; or d. Lessee's vacating or abandoning the premises £or more than ten (1p) days; then Lessor, at its option, may exercise any one ot more af the following remedies which shall be cumulauve; (1) Terminate Lessee's right to possession under this lease and re-enter and take possessian of the premises, and re-let or attempt to re-let the premises on behalf of Lessee; however, such re- letting or attempt to re-let shall only involve a prospective tenant capable of providing comparable or better type service, at such rent and under such terms and candiaons as Lessox may deern best under the circumstances for the purpose of reducing Lessee's liabiliry, and Lessdr shall not be deemed to have thereby accepted a sutxendex of the pxemises, and Lessee shall remain liable for all rents and addiuonal rents due under this lease and for all damages suffexed by Lessor because of Lessee's breach af any of the covenants of this lease. Said damages shall include, but not be limited to, chaxges £or removal and skorage of Lessee's property, remodeling and xepairs, leasing, cammissions and legal fees. In addition ta its xemedies hereundex, Lessor may accelerate all iixed rentals due under this lease, an which event the Lessee shall be liable for all past due xent, accelerated rent and darnages 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-letting pursuant to this subsection, Lessor may by delivering �ritten norice ta Lessee, elect to exercise its oprion under the following subparagraph to accept a surrendex of the premises, termuiate and cancel this lease, and xetake passession and occupancy af the premise on behalf of Lessor. (2) Declare this lease to be ternzinated, whereupon the texm hereby granted and all rights, Wolkowsky lease for Marina Restaurant Page 5 � title and interest of Lessee in the premises shall end and Lessoz may re-enter upon and take possession of the premises. Such termination shall be without prejudice to Lessor's xight to collect from Lessee any rental or additianal rental which has accrued prior to such termination tagether with all damages, including, but not limited to, the damages specified in subpaxagraph (1) of this paragraph which are suffered by Lessor because of Lessee's breach af any covenant under this lease. (3) Exercise any and all rights and privi.leges that Lessor may have undex the laws o£ the State of Florida and the United States of America. 11. The Lessee hexeby covenants and agrecs to keep and maintain the premises and fixtures located herein in good condirion and repair during the term of this lease and any extension hexeo£, and to retuxn the premises to the Lessor upon the expiration af the term hereof in as good condition as they now ate, oxdinary wear and tear and damage by the elements only excepted. No alte�ation or impxovements may be made ta the p�emises without the written consent af the Lessor. Any and all fi�ctures attached to the premises shall xevert absolutely and becotne the pxoperty of the Lessax upon the expiration of the term hereof; provided, hovvever, that the Lessot at its option may requixe the Lessee to remove all fixtures, pa�titions, racks, shelves ot other improvements fxom the premises upon the expiration of the ternn of the lease at the cost of the Lessee. Any damage ta the premises occasi�ned by said rernoval shall be repaired at the Lessee's expense. 12. The Lessee, at its own cast, 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 Matine & Aviarion Director of the Lessox, and additionally conform to the sign ordinance of Lessor presendy in force or as may be amended from rime to time during the term of the lease. No other signs shaA be placed or maintained by the Lessee an the premises. Any nonconforming sign now an the premises shall be removed by the Less�e within 30 days of appYOVaI of the lease. The Lessee shall, upon expiration ox termixiation of the lease, completely remove any and all signs that have been placed an the leased premises by the Lessee. 13. Tf at any titne during the ternn of the lease the Lessee is authorized to make improvements to the demised premises, Lessee agrees in such event to indemnify and save harinless the Lessor as follows: a. Fox 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 conttactor a good and suf�icient performance and paqment band signed Wolkowsky lease for Marina Restaurant Page G by a reputable insurance company doing business in Florida, which bond shall be in an amount equal to one hundred (1pp%) pe�cent of the cost of constructian of the contemplated imp�ovements to the demised premises, guaranteeing that the imp�ovements will be completed and that subcontractars, laborers and materialmen will be paid in accordance with the contract for the improvements. 14. In the event of the acquisiuon of this property or any portion thereof by exercise of propet authority, bq anq governmental agency othex than Lessox, whethet by er.ninent domain or otherwis�, it is undexstood and agreed that notification of the institutian of such action shall be promptly given Lessee, so the Lessee may intervene in such action as a party. Lessee agrees to camply with the results of any such actions, and agrees to xelease and hold the Lessor harmless from any damages resultin� thexeof. 15. Lessor covenants and agrees that upon payment by Lessee of the xents herein provided, and upon observance and perfarmance by Lessee of all the covenants, terms and conditions required of the Lessee by the lease, Lessee shall peaceably and quaedy hold and enjoy the leased premises for the term of the lease without hindrance ar intexruption by Lessor. 16. Notices hereunder shall be given only by registered ot certified mail, and shaA be deemed given when the lette� is depasited in the mail, postage and other charges prepaid, add�essed to the party £ox whom intended at such party's addtess first herein specified or to such other address as may be substituted therefor by proper norice hereunder. Lessor's narices shall be dixected in care of its Law Department at the above-cited addxess. 17. As required by Section 404.056(8), Florida Statutes, the Lessee shall take notice of the following: RADON GAS: Radon is a naturallq occurring radioactive gas that, when it has accumulated in a building in suificient quantities, may pxesent health risks to persons who are exposed ta it over rime. Levels of radon that e�ceed federal and state guidelines have been found in buildings in Florida. Addirional infarmation regarding radon and radon testing may be obtained from your counry public health unit. 18. The undersigned shall personally guarantee to Lessor the timely performance of all covenants and pxovisions of thi.s I�ease Agreement, including, but not ]united to the timely payment of all xent due hexeunder. 19. The Lessee will install and maintain a commercial media air cleanet, with absorber kit, ta rexzzove smoke fxom the space. This unit will be operated at all times the restauxant is open fox business. 20. 'I'his lease agreement constitutes the entire contract between Lessox and Lessee concerning the Wolkowsky lease for Marina Restaurant Page 7 leasing of the premises and consideration thereof. 21. In the event either party seeks to enforce this agreement or interpret any provision thexeof by law, or through attorneys at law, each party agrees ta pay for its own attorney's 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 a S day of �1 , 2011. Cauntersigned: � � _� Ftank Hibbard Camila 5oto Assistant City Atto�ney Ciry of Clearwatex, Flo�ida By; � r�_ i�.ue. u . William B Horne, II City Manager �� ,� �oF ry� Attest: ���� �� Rosemarie Call C� Clexk By: � � w�� omas . WolkowskJ B• � C.t� Patricia A. Wolkowsky Wolkowsky lease for Marina Restaurant Page 8 ����_- ���' .� ��\�I,, � 7 . Q �. � ��� `� � Exhibit "A" LEGAL DESCRIPTION Marina Restaurant space, Clearwatex Marina Building, located on Lots 11 and 12 of City I}ark Subdivision, according to the map or plat thereof as recorded in Plat Book 23, page 37 of the public xecoYds of Pinellas Caunty, Florida. Exhibit "B" INSURANCE REQUIREMENTS Insurance Lessee shal.l procure at its expense and maintain during the term of this Agreement, insurance as shown below: a. Commercial General Liability insuxance to include pxemises/operator liability in an amount not less than $1,000,000 combined single limit Bodily Injury Iaabil.ity and Properry Damage Liabiliry. b. Comprehensive Plate Glass Insurance on a replacement cost basis cavering loss or damage bq any means, except by fixe, ox war, whethex declaxed or not, to the plate glass w:�t�dows in the demised pxemises. c. Workex's Compensation Insuxance applicable to its emploqees in an amount at least equal to the statutory limit� of coverage according to applicable State and Federal laws. In addirion, the policy shall include employex's ]iability coverage �.vith a limit of $500,OQ0 per occurrence. d. Coverage for liability resulling from the dispensing of alcoholic beverages iri an amount not less than $500,000. The City is to be specifically included as an additional insured on all liability coverage described above. Notice of Cancellarion or Restricrion - All policies of insurance must be endorsed to pxovide the City with thirty (30) days noti.ce of cancellation or restrictian. Certified Copies of Policies/Cerrificate af Insurance. Upon specific written request af the Ciry, the Lessee shall provide the Lessar vvith certi�ed copies af a�l policies of insurance as required above. In the absence of a specific written request, the Lessee shall provide the Lessor with Certificates of Insurance showing the Lessee has, at all times the insurance coverage required by the Lease. Unless natice is given to Lessee atherwise, such Certificates of Insuxance shall be provided to the Marine & Aviation Director. The first Certificate of Insurance required by the lease shall be provided to the Marine & Aviarion Directox before accupancq af the demised premises by the Lessee. Wolltowsky lease fox Marina Restaurant Page 9 �Y �4 Exhibit "C" GUARANTY OF PAYMFNT OF RENT UNDER LEASE AGREEMENT Guaranty is made this � day of , 2011, by �'homas C. Wolkowsky and Patricia A. Walkowsky af Marina Restaurant, Ciry of Cle rwater, Counry of Pinellas, 5tate af Floxida, herein referxed to as "Pexsonal Guarantors: being the owners respecrively, of the Marina Restaurant, herein referred to as "Obligox: to CTTY OF CLEARWATER, C/O Ciry Attorney, P.O. Box 4748, Clearwater, Florida 33758, herein refe�red to as "Obligee". RECITALS 1. Obligee has leased premises at 25 Causeway Blvd. to Obligot, whose business address is 25 Causeway Blvd., City of Clearwatez, County of Pinellas, State af Florida, for use by Obligor in conducting its business of a restaurant. 2. The lease is conditioned upon guatantors giving security fox payment of rent thexeunder in the Foxm of a personal guaranry. SECTION ONE STATEMENT OF GUAR.ANTY Guarantors guarantee payment af rent under the attached lease agreement pursuant to the texms thereo£ If obligox defaults in the payment of any installment of rent, guaxantors shall pay the amount of such installment witivn 30 days after receipt of norice of default and demand for payment. Guarantor's liability hereunder shall not be affected by reason of any extension of time for payment pf any installment granted by obligee to obligox. SECTION TWO DURATION This guatanty shall not be revoked during the three year term of the lease. Thereafter, if the lease is renewed on the same terms, this guaranty shall remain in fozce until receipt by obligee of written notice of xe�ocation from guarantors, or until terminated pursuant to Section Three hereo£ Renewal of the lease on different texms shall, at the aption of the guarantoxs, operate to ternzuiate this guaranty as of the end of the thxee year period. Wolkowsky lease for Marina Restaurant Page 10 •, ' �� �.' ��. SECTION THREE LTMTTATION OF LIABILITY "1'he maximum amount recoverable by obli�ee from guaxanta�s pursuant to this guarantee is $25,214.76, which amount is equal to the total xent due during the fi�st lease year of the lease. Tf the aggxegate of payments made by guarantors hereunder reaches the above--mentioned arnaunt, this guaxanry shall terminate itnmediately. ��x�M[r)���C�l�l:i WAIVER OF NOTTCE OF ACCEPTANCE Norice of acceptance of this guaranty is expressly waived. IN WITNESS WHEREOF, guarantors have executed this guaxanty at � �' the day and year first above written. e�� �• ��G� � /f G anto — Thomas C. Wolkowsky Guarantox — Patricia A. Wolkowsky, Wolkowsky lease for Marina Restaurant Page 11