LEASE AGREEMENT - PIRATES PANTRYr ,
LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entexed into this �� o£��,�2011, by and
between the CITY OF CLEARWATER, FLORIDA, a munici�al carporation, hereinafter referxed
to as "Lessar", and, Thoxnas C. Wolkowsky and Patricia A. Wolkowsky, d/b/a Pirates Pantry, Room
�, 25 Causeway Boulevard, Clearwater, Florida 33767, hereinafter referred to as "Lessee."
WITNESETH:
That in considexation of the covenants herein contained of rhe gxanting of this lease and the
sums paid and to be paid h�reunder, the Lessor hereby leases to the Lessee and the Lessee heteby
leases £xom the Lessor according to the terms, condirions and covenants herein contained the
following described ptemises in the City of Clearwater, Pinellas County, Flo�ida, to wit:
See attached Exhibit "A."
THE 1'ARTIES HERETO HEREBY COVENANT AND AGREE AS FOLLOWS:
1. This lEase shall be for a three (3) year lease term, with the oprion t� renew for an
additional one (1) year term beginning October 1, 2011, and ending either September 30, 2014 or
2015 (if the option is exexcised). The Lessor retains the right to terminate this lease fox any
municipal need cansistent with the Lessot's charter, as well as fai.lure ta pay rent in a timely manner
ox change in use of the property. In addition, Lessor may te�minate this lease if the State of Floxida
or any of its agez�cies or polirical suhdivisions thereof acqwires the demised property or any portian
thereof for a pub]ic purpose. This �ight of termination is an addition to the right of termination set
out in paxagxaph 14 of rhis Agreement.
2. Thc Lessee hereby covenants and agrees ta pay rental thereof as follows:
a. To pay the total sum of $5,156.84 plus tax fox the fxrst year of this lease, which
shall be paid in equal monthly payments of $429.74 plus tax th�ough Septexnber 30, 2012. Each
monthly paqment shall be due and payable on the first day oF the month, and shall be delinquent if
not paid on ox before the fifth day of the rtxonth. Rental rates increase by 3% ov�r the previous lease
year rate on Octaber 1 st af each subsequent year of the lease. In addition to the monthly rental, the
Lessee shall, at the end of each calendar year, pay an additional amaunt equal to six (6) percent of
yearly gross sales exceeding $350,000.00 throughout the term of this lease. The Lessee will provzde
the Lessor within 30 days after the end of each year during the term of this lease a statement
showing the amount af gross sales during each month, as well as a signed copy o F the fxont and back
of the Florida Department of Revenue Sales and Use Tax Return. The statement used by the Lessee
Thc�rn�s C. & Patricia A. Wc�lkowsky - Roorn 4 f�irates Pantry Lease P�ge i
to xepott such sales will be in a form sarisfactory ta the City Manager or his designee, sh�wing the
amount of gross sales fox the month being xeparted and the amount of yeax-to-date gross sales for
the calendax yeax. The term "gross sales" means the entire amount of actual sales, whether fnr cash
or otherwise, for all sales of inerchandise sold in, on or from the premises. This payment will be
made within 30 days af October 1" in each year of the lease and will be submitted with certification
of annual gross sales as repoxted by State Sales Tax retuxns.
b. Any amaunt due from Lessee to Lessox under this lease which is not paid befo�e
the day the payment becomes delinquent shall bear intexest at the maximum rate allowable by law,
plus a late charge of Ten Dollars ($10.�4) to cover Lessor's expenses in collecting such delira.quency.
c. Tn addition to the first month's rent of $429.74 plus tax, which is due and payable
on the iirst day af the lease, the Lessee owes no more in advance as a deposit including tax to secuxe
the faithful performance of the Lessee's obligations hereunder. The Lessor may deduct from the
deposit any amount that znight become due from the Lessee to the Lessox for damage to the
ptemises or for any reason or cause whatsoever except rent. At the end of the term of this lease, the
deposit amount ox the balance thereof, if any, shall be cxedited to Lessee's last monthly rental
payment.
d. If Lessor defaults in the payment of any installment of rent, Thomas C.
Wolkowsky and Patricia A. Wolkowsky, being the owners respecrively, as Gua�antox undex the
Guaxanty of Payment of Rent Under Lease Agreement (Exhibit "C", attached hereto and
incorpo�ated hexein), shall paq the amount of such installxnent within 30 days after �eceipt of notice
af default and demand for payment as provided for thexein.
3. The demised premises shall be used only far the purpose of running a mini-mart.
4. The Lessee hexeby covenants and agrees to make no unlawful, unproper, oY offensive use
of the leased premises. Lessee furkher covenants and agrees not to assign, moYtgage, pledge,
hypothecate or sublet this lease or any o£ its right herein in whole ar in part without the pxiox
written consent of Lessor. The consent af Lessor to any assignment, mortgaging, pledging,
hypothecating or subletting shall not consritute a waiver of the necessity for such consent to any
subsequent assignment, mortgage, pledging, hypothecaring or subletting. If this lease is assigned, or
if the premises ax any pa�t thexeof are sublet or occupied by anybody other than Lessee, Lessar may
collect rent from the assignee, sub-tenant ox occupant, and apply the net amount collected to the
rent herein required, but no such occupancy ox collectian shall be deemed a waiver of this covenant,
dr the acceptance of the assignee, sub-tenant or occupant as tenant, or a release oE Lessee from the
further performance by Lessee of covenants on the part of Lessee hereixi contained. If at any time
Thomas C. & Patricia A. Wolkowsky - Room 4 Pirates Pantry Lease Page z
during the term of this lease, any part ar all of the corporate shares of Lessee shall be transferxed by
sale, assignment, bequest, inheritance, opexation o£ law or othet disposition so as to result in a
change in the present effective voting control of Lessee by the pexson, pexsons ox enriry which
presently is the ultimate owner af a majariry of such corporate shares on the date of this leases,
Lessee shall promptly notify Lessox in writing af such change. If the new ownex is a private or
public corpozation, Lessor shall pxoznpdy advise Lessee if it has any objecrions thereto and the
xeasons therefox. Lessor may terminate this lease any rime after such change in conrxol by giving
Lessee thirry (30) days prior written notice of such termination. Lessee shall not permit any business
to be operated in or fxom the premises by any concessionaire or Licensee.
5. Lessee agrees that it wiU prompdy pay all ad valorem real property taxes and personal
propexty taxes that may be assessed and filed against the demised property o� 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, includirxg, but not litn.ited to, occuparional license, beverage license, and
permits xelaring the opexarian of the business conducted on the demised pxemises, which are
required by law. Nathing herein shall abligate Lessee to pay or ta reimburse Lessor for the payment
of assessments fox pertnanent 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 to the
premises when due, to Progress Energy Corporation. At no expense to the Lessee, the Lessor
agrees to furnish a refuse disposal location and a refuse disposal container located outside the
demised pxemises for the use of the Lessee.
7. The Lessee further covenants and agrees to opexate the business autharized to be
conducted on the premises during the term of this lease, except for any period of time involved in
natural disasters, including govexnmental orders or requirements such as evacuation for hurricane
preparattons, any tirrae necessary ta repair ar replace any damage caused to the demised premises hq
as natuxal disastex and twa weeks vacation each year.
8. The Lessee assumes full responsibi,lity far and covenants and agrees to save harmless and
indemnify the Lessor from anq and all liability fox daznage to pxopexty and injuty to persons resulting
fram or in connecrion 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 xnaintain
insurance coverage conforxning to the requitements in Exhibit "B" attached heret�. Nothing
Thomas C. & Patricia A. Wolkowsky - Room 4 Pirates Pantry Lease Page 3
contained herein shall be construed as a waiver of any iznmuniry fram or limitation of liability the
Lessor may be entitled to under the doctrine af savexeign unnzux�.ity or section 768.28, Florida
Statutes.
9. I£ at any time during the term of this lease, the building or premises or any part, system ar
component hereof (hereinafter, the "demised premises") shall be damaged or destroyed to the extent
that the Lessee cannot opexate the business authorized to be conducted thexeon, and the Lessox
determines that said demised pxemises can be xestored by making appropxiate xepairs, the monthly
rent as provided far in paragxaph 2a above shall abate until the demised pxemises have been resto�ed
ox until commencement of business by the Lessee, whichever is sooner.
If the demised premises shall be totally destroyed ox so damaged as to xender it practically useless
duxing the term af this lease, then and in that event, the Lessee or Lessor may terminate this lease as
of the date of such damage or upon r.hirty (30) days written nouce to the other party to this lease.
In the event of damage ox destructian as enumerated above, and except as otherwise specifically
provided under this agreement, both parties waive any and all rights of recovery against the othex
paxty for any direct or indirect loss accurxing to the demised premises or as a result of damage or
destruction of the demised premises.
In the case of demolition and recanstruction of the Marina or tnajor renovarion by construction,
the Lessee shall be given the first oppaxtunity to bid fox similar space, provided that space for
Lessee's type of business is allocated therein.
10. Except as otherwise provided herein, upon the happening of any one o� more of the
fallowing events ("Events of Default"):
a. Lessee's default in the payment of any rental or other sums due for a period d£
five (5) days aiter the due date;
b. Lessee's continued default with respect to any other covenant of this lease far a
pexiod 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 ox Default if Lessee has commenced curadve acrian with the fifteen (15� day period and
diligendy prosecutes such acrion to completion;
c. There shall be iiled by ox against Lessee in any court pursuant to any statute either
of the United States or of any state, a peririon in bankruptcy �r insolvency or for reorganization or
axrangement, or for the appointment of a receiver ox trustee of all or a portion of Lessee's property,
ox if Lessee makes an assi ment for the benefit of creditors or if there is an assi ent by
Thomas C. & Patricia A. Wolkowsky - Raom 4 Pirates F'antry Lease Page �
operation of law, Qr if Lessee makes application to Lessee's creditors to settle or cornpound ox
ext�nd the time fox payment of Lessee's obligations, or if executian, seizu.re oz attachment shall be
levied upon any of Lessee's; pxoperty or rhe premises are taken or occupied or attempted to be taken
or occupied by someone other than Lessee; however, in the event of execution, seizure ox
attachment, Lessee may post a bond satisfactoty to Lessot which bond shall stay the default
resulting from any execution, levy, seizure ar attachment for a period of 1 ZO days. Failuxe to remove
the levy, seizure or attachment witltin the 120 day periad shall constitute an Event ar Default, and
the bond posted shall be forfeited; or
d. Lessee's vacating or abandoning the prexruses; then Lessot, at its option, may
exercise any one or more of the following reznedies which shall be cumulative;
(1) Termuiate Lessee's right to possesslon under this lease and xe-entex and
take possession af the pxemises, and re-let or attempt to re-let the p�emises on behalf of Lessee;
however, such re-letting or attempt to �e-let shall only involve a pxospective tenant capable o£
pxaviding comparable ox better type service, at such rent and under such terms and condirians as
Lessar may deem best undex the circumstances fox the purpose of xeducing Lessee's liability, and
Lessor shall not be deemed to have thereby accepted a surxendex of the premises, and Lessee shall
remain liable for all rents and additional xents due undex this lease and for all damages suffered by
Lesso� because of Lessee's breach af any of the covenants of this lease. Said damages shall include,
but not be liinited to, charges fox removal and storage of Lessee's property, temodeling and xepairs,
leasing, cotnn�issians 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 tent,
accelerated rent and damages as described above; however, with respect to the accelexated rent,
Lessor shall receive onlq the pr�sent value of such accelerated xent. At any time during repossession
and xe-letting pursuant to rhis subsection, Lessor may by delivering written notice to Lessee, elect to
exercise its option undex the follawing subparagraph td accept a surrender of the premises,
terminate and cancel this lease, and retake possession and �ccupancy of the premise on behalf of
Lessar.
(2) Declaxe this lease to be termixiated, whereupon the term hereby granted
and all rights, tide and interest of Lessee in the premises shall end and Lessor may re-enter upon and
take possession of the pxemises. Such termuiation shall be without prejudice to Lessor's right to
collect from Lessee any tental or addirional rental which has accrued prior to such termination
together with all damages, including, but not limited to, the damages specified in subpaxagraph (1) of
tl�is patagraph which are suffexed by Lessor because of Lessee's breach of any covenant under this
Tharnas C. & Patricia A. Wolkowsky � Rporn 4 Pirat�s Pantry Lease Page Es'
lease.
(3) Exercise any and all rights and privileges that Lessox may have under the
laws af the State af Floxida and the United States of America.
11. The Lessee hereby covenants and agrees to keep and maintain the premises and fixtuxes
located he�ein in good condition and repair during the term of this lease and any extension heteof,
and to return the premises to the Lessor upon the expixarion of the term hereof in as good condition
as they now are, ardinaty wear and tear and damage by the elements only excepted. No altexation ox
unprovements may be made ta the premises without the written cansent of the Lessor. Any and all
iixtures attached to the premises sh�.11 revert absolutely and become the property of the Lessor upon
the expiration of the ter�m hexeof; provided, however, that the Lessor at its optian may xequire the
Lessee to remove all fixtures, partitions, racks, shelves or other improvements from the premiscs
upon the expi�ation of the term of the lease at the cast of the Lessee. Any damage to the pxemises
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, provlded said signs are appxoved as to color, sryle and lette� size by the Marine &
Aviation Director of the Lessor, and additionally conf�rm ta the sign ordi.nance of Lessor presentlq
in foxce or as may be amended fxom time ta rime during the term of the lease. Na other signs shall
be placed ox maintained by the Lessee on the premises. The Lessee naw on the pxemises shall
remove any nonconfonrvng sign within 30 days of appxoval of the lease. The Lessee shall, upan
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 pxemises, Lessee agxees in such event to indemnify and save harmless
thc Lessar as follows:
prapexry; and
a. For any mechanic's lien which may be asserted as a claim against the leased
b. Far faithful pexformance of the covenants contained in paxagxaph 11 above; and
c. To abtain from the contaractor a good and sufficient per£ormance and payment
bond signed by a reputable insuxance company doing business in Florida, which bond shall be in an
amount equal to one hundred (100%) pexcent of the cost of construcrion of the cantemplated
unprovements to the demised premises, guaranteeing that the impxovements will be completed and
that subcontractors, laboxers and materialmen will be paid in accoxdance with the conttact for the
ihomas C. & Patricia A. Wolkowsky - Raom 4 Pirates Pantry Lease Page c,
unprovements.
14. In the event of the acquisition of this pxoperty ox any portion thereof by exercise of
pxoper authority, by any governmental agency ather than Lessor, whether by eminent domain or
athexwise, it is understood and agreed that notificati�n of the institution of such action shall be
prompdy given Lessee, so the Lessee may intervene in such acrion as a party. Lessee agxees to
comply with the results of any such acrions, and agrees to release and hold the lessor harmless from
any damages resulting thexeoF.
15. Lessor covenants and agxees that upon payment by Lessee af the xents herein provided,
and upan observance and performance by Lessee of all the covenants, terms and conditions
required of the Lessee bq the lease, Lessee shall peaceablq and quiedy hold and enjoy the leased
premises for the term of the lease without hindrance or interruprion by Lessox.
16. Notices hereunder shall be given only by xegistered or certified mail, and shall be
deemed given vcrhen the letter is deposited in the mail, postage and other charges pxepaid, ad�essed
to the parry fox whom intended at such party's addxess �irst herein specified or to such other address
as may be substituted therefar by proper notice hereunder. Lessox's notices shall be directed in caxe
of its Lavcr Department at the above-cited addxess.
17. As xequired by Section 404.056(8), Florida Statutes, the Lessee shall take norice of the
fallowing:
RADON GAS: Radon is a naturally occurring radioactive gas that, when it has accumu.lated
in a building in su£ficient quantities, may pxesent 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 infoxznarion regarding xadon and radon testing may be obtained fxom your
county public health un1t.
18. The undersigned shall personally guarantee to Lessor the timely pexfaxmance of all
covenants and provisions of this Lease Agreement, including, but not limited to the timely payment
of aA rent due hereundex.
19. 'I'his lease agreement constitutes the entire contract between Lessox and Lessee
concerning the leasing of the premises and considexarion the:reof.
20. In the event either party seeks to enforce this agreement or interpret any provision
thereof by law, ox through attorneps at law, each party agrees to pay for its awn attorney's fees and
costs, and that jurisdiction shall be in a court of competent jurisdicti.on in 1'inellas County, Florida.
Thornas C. 8� Patricia A. Wolkc�wsky � Rqom a Pirates Pantry Lease Page '�
IN WITNESS WHEREOF, tihe parties hereto have set their hands and seal this � day af
_.:! '�� l� �
Countersigned:
Canulo Sota
Assistant City Attorney
CITY OF CLEARWATER, FLORIDII
Sy: ,��.,. � , .�4�-�.�a,�.
William B. Horne, II
City Manager t�1
AtteSt: �C��•�"'"°Fr,yfC/i'
� � .`� � !' 3'
�
�_ �
Rosemarie Call � � Q�
City Clerk '��,� _ ��
F C - ��Ia,��
Walkawskq - � J
B �"
Patricia A. Wolkawsky
Exhibit "A"
LEGAL DESCRIPTION
Room/s �, Clearwater Marina Building, located on Lots 11 and 12 of City Park Subdivision,
acc�xding to the map or plat thereof as recatded in Plat Book 23, page 37 of rhe public xecords of
Thomas C. & Patr'icia A. Wolkawsky - Room 4 Pirates Pantry Lease I�age �a
Pinellas County, Florida.
Exhibit "S"
INSURANCE REQUTREMEN7'S
Lessee shall procure at its expense and maintain during the term of this Agreement, insurance as
shown below:
a. Commexcial Genexal Liability insurance to include premises/operator liabi]ity in an
amount not less than $1,000,00� combined single limit Bodily Injury Liabiliry and Pxopetry
Damage Liability.
b. Comprehensive Plate Glass Insurance an a xeplacement cost basis covering loss or
damage by any means, except by fire, or war, whether declared or not, ta the plate glass
windows in the demised premises.
c. Worker's Compensation Insurance applicable to its employees in an amaunt at least equal
to the statutary ]imits of coverage acco�ding to applicable State and Federal laws. In
addition, the policy shall include employer's liability cavexage with a]iixiit of $500,000 per
occurrence.
The City is to be speciiically in.cluded as an addirianal insured on all liability coverage described
above.
Notice of Cancellation or Restriction - All policies of insurance must be endarsed to provide the
City with thitty (30) days not�ce of cancellation or xestricrion.
Certified Copies of Policies/Cextificate of Insurance. Upon speci�ic written request af the Ciry, the
Lessee shall provide the Lessor with certified copies of all policies of insurance as xequired above.
In the absence af a speciiic written request, the Lessee shall pravide the Lessor w�ith Certificates of
Insurance showing the Lessee has, at all tit�nes the insurance caverage required by the Lease. Unless
norice is given to Lessee otherwise, such Certificates of Insurance shall be pxovided to the Marine &
Aviation Director. The iirst Certificate of Insurance required by the lease shall be provided ta the
Marine & Aviadon Director before occupancy of the demised premises by the Lessee.
Thornas C. & Patncia A. Wolkowsky - Room 4 Pirates Pantry Lease I'age s�
�,. ..
Exhibit "C"
GUARANTY OF PAYMENT OF RENT UNDER LEASE AGREEMENT
Guaranty is made this �� day of , 2011, by Thomas C. Wolkowskp
and Patricia A. Wolkowsky, City of Clearwater, ounty of Pinellas, State of Florida, herein refexred
to as "Personal Guatantoxs: being the ownexs respectively, of the P�ates Pantiy, hereixa refe.�xed to
as "Obl.igor: to CITY OF CLEARWATER, C/O City Attorney, P.O. Sox 4748, Clearwater, Florida
33758, hetein referxed to as "Obligee".
RECITALS
1. Obligee has leased ptemises at 25 Causeway Blvd. to Obligor, whose business addiress is 25
Causeway Blvd., City of Clearwater, County of Pinellas, State of Flarida, for use by Obligor in
conducting its business of a mini-maxt.
2. 'The lease is conditioned upon gua�antors giving securiry for payment of rent thereunder in the
form of a personal guaranty.
SECTIQN ONE
STATEMENT OF GUARANTY
Guatantots guaxantee payment of rent under the attached lease agxeement pursuant ta the
terms the�eof. If obligor defaults in the payment of any installment of rent, guaranto�s shall pay the
amount of such installment within 30 days aftet xeceipt of nauce of de£ault and demand for
payment. Guarantor's liabiliry hereunder shall not be affected by reason of any extension of rime for
payment of any installment granted by obligee to obligor.
SECTION TWO
DURATION
This guaxanty shall not be revoked during the three years term of the lease. Thereaftex, if the
lease is renewed on the same terms, this guaranty shall remain in force until receipt by obligee of
written notice of revocatian from guarantoxs, or until tern�inated pursuant to section thxee hereof.
Renewal of the lease on different terms shall, at the option of the guarantars, operate to texminate
this guaranty as of the end of the three years period.
ihomas C. & Patricia A. Wolkowsky - F2oom 4 Pirates Pantry Lease Page 10
YS �
SECTION THREE
LIMTTATION OF LIABILITY
The maximutYZ amount xecaverable by obligee from guarantors pursuant t� this guarantee is
$5,156.84, which amount is equal to the tatal rent due during the first lease yeat of the lease. If the
aggregate af payments made by guarantors hereunder reaches the above-mentioned amount, this
guaranty shall terminate immediately.
SECTION FOUR
WAIVER OF NOTICE OF ACCEPTANCE
Notice of acceptance of this guaranty is expxessly waived.
IN WITNESS WHEREOF, guarantors have executed this guatanty at the Clearwatex
Municipal Marina the day and yea� first above written.
� d►� � S C . � -'
Guara�Thamas C. Walkowsky
r� _ �
Guarantox — Patricia A. Wolkowsky
Thornas C. & Patricia A. Wolkawsky - Room 4 Pirates Pantry Lease Page �:�