LEASE AGREEMENT (4) � , �
LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this o?a of 2m 2011,by and
between the CITY OF CLEARWATER, FLORIDA, a municipal corporation, hereinafter referred
to as "Lessor", and, Bruce Littler, Inc., a Florida corporarion, Room 8, 25 Causeway Boulevard,
Clearwater, Florida 33767, hereinafter referred to as "Lessee."
WITNESETH :
That in considerarion of the covenants herein contained of the granting of this lease and the
sums paid and to be paid hereundex, the Lessor hereby leases to the Lessee and the Lessee hereby
leases fxom the Lessor according to the terms, conditions and covenants hexein 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. This lease shall be fox thxee (3) one (1) year lease renewals,with the option to renew foY
an additional one (1) yeax term,beginning, October 1, 2011, and ending September 30, 2014 or 2015
(if the oprion is exercised). The Lessor retains the right to terminate this lease for any municipal
need consistent with the Lessor's charter, as well as failure to pay rent in a timely manner or change
in use of the property. In addirion, Lessor may terminate this lease if the State of Florida or any of
its agencies or political subdivisions thereof acquixe the demised property or any porrion thereof for
a public purpose. This xight of terminarion is in addirion to the right of terminarion set out in
paragraph 14 of this Agreement.
2. The Lessee hereby covenants and agrees to pay rental thereof as follows:
a. To pay the total sum of$9,674.88 plus tax for the first year of this lease,which
shall be paid in equal monthly payments of$806.24 plus tax thxough September 30, 2012. 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. The Lessee will provide the Lessor witivn 30 days
after the end of each month during the term of this lease a copy of the amount of gross sales being
reported during the month as evidence by a copy of the monthly State Sales Tax return. Rental rates
increase by 3% over the previous lease yeax rate on October 1S`of each subsequent yeaY of the lease.
In addition to the monthly rent, the Lessee shall, at the end of each calendar year of the lease, shall
pay an addirional amount equal to six (6%) percent of yeaxly gross sales exceeding$350,000.00
throughout the term of this lease. The term"Gross Sales" means the entire amount of actual sales,
Bruce Littler, Inc. Room 8 Leas� Page �.
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whether for cash or otherwise, of all sales of inerchandise sold in, on or from the premises. This
payment will be made within 30 days of October 15`in each year of the lease and will be submitted
with cerrificarion of annual gross sales as xeported by State Sales Tax Yeturns.
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 xate of fouYteen (14%) percent per
month from date due until paid, plus a late chaxge of Ten Dollars ($10.00) to cover Lessor's
expenses in collecting such delinquency.
c. In addition to the fitst month's rent of$806.24 plus tax,which is due and payable
on the fixst day of the lease, the Lessee shall owe no addirional deposit to secure the faithful
pexformance of the Lessee's obligations hereunder. The Lessor may deduct from the deposit,
already in City possession, any amount that might become due from the Lessee to the Lessox for
damage to the pxemises or foY any reason or cause whatsoever except rent. At the end of the this
lease, the deposit amount or the balance thereof,if any, shall be credited to Lessee's last monthly
rental payment.
d. If Lessor defaults in the payment of any installment of rent, Bruce Littler, as
GuarantoY under the Guaranty of Payment of Rent Under Lease Agreement (Exhibit "C", attached
hereto and incorporated herein), shall pay the amount of such installment within 30 days after
receipt of notice of default and demand for payment as provided for therein.
3. The demised premises shall be used only fox the purpose of selling anriques, maxine
supplies, collecribles, furniture, decor, new and used boat sales, jewelry, clothing, accessories, shoes,
gifts,vintage fishing tackle and accessories, marine related products, real estate, express food,
beverages, and ice cream.
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 ox any of its xight 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 fox such consent to any
subsequent assignment, mortgage,pledging, hypothecating or subletting. If this lease is assigned, ox
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 waiveY 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 tune
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duxing the term of this lease, any part or all of the corporate shares of Lessee shall be ttansferxed by
sale, assignment,bequest,inheritance, operarion of law or other disposition so as to result in a
change in the present effective voting control of Lessee by the person,persons ox entity which
presently is the ultimate ownex of a majority of such corporate shares on the date of this leases,
Lessee shall prompdy notify Lessor in wxiting of such change. If the new owner is a private or
public corporarion,Lessor shall prompdy advise Lessee if it has any objecrions thereto and the
reasons therefor. Lessor may terminate this lease any time after such change in control by giving
Lessee thixty (30) days prior written notice of such termination. Lessee shall not perrrut any business
to be operated in ox fxom the premises by any concessionaire or Licensee.
5. Lessee agxees that it will pYOmpdy pay all ad valorem real property taxes and personal
pYOperty taxes that may be assessed and filed against the demised property ox 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
othex taxes and fees,including, but not limited to, occupational license, beverage license, and
pexmits relating the operarion of the business conducted on the demised pxemises,which are
required by law. Nothing herein shall obligate Lessee to pay or to reunburse Lessor for the payment
of assessments for permanent unprovements,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 electxical service to the
premises when due, to Progress Energy Corporation. At no expense to the Lessee, the Lessor
agxees 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 during the term of this lease, except foY any period of time involved in
natural disasters,including governmental orders or requixements such as evacuation for hurricane
pxeparations, and any time necessary to repair or xeplace any damage caused to the demised premises
by as natural disasteY.
8. The Lessee assumes full responsibility for and covenants and agrees to save harmless and
indemnify the Lessor fxom any and all liability for damage to propexty and injury to persons resulting
from or in connection with the Lessee's use and occupancy of the demised premises undex this lease.
In addirion, 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. Nothing
contained hexein shall be construed as a waiver of any unmunity from or limitation of liability the
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Lessor may be entided to undex the doctrine of sovereign immunity or secrion 768.28, Floxida
Statutes.
9. If at any time during the term of this lease, the building or premises or any paxt, system or
component hexeof(hexeinafter, the "demised premises") shall be damaged or destroyed to the extent
that the Lessee cannot operate the business authorized to be conducted thexeon, and the Lessor
determines that said demised premises can be restored by making appropriate repaixs, the monthly
rent as provided for in paragraph 2a above shall abate until the demised premises have been restoxed
ox until commencement of business by the Lessee,whichever is sooner.
If the demised pxemises 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 ox Lessor may 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 destrucrion 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 fox any direct or indirect loss occurring to the demised pxemises ox as a result of damage oY
destruction of the demised premises.
In the case of demolirion and reconstruction of the Marina or major renovation by construction,
the Lessee shall be given the first oppoxtunity to bid for 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 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,
pxovided 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
diligendy prosecutes such action to completion;
c. There shall be filed by ox against Lessee in any court pursuant to any statute either
of the United States or of any state, a peririon in bankruptcy or insolvency or for Yeoxganization or
arrangement, ox fox the appointment of a receiver or trustee of all or a porrion of Lessee's property,
ox if Lessee makes an assignment for the benefit of creditors or if there is an assignment by
operarion of law, or if Lessee makes applicarion to Lessee's cxeditors to setde or compound or
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extend the time for payment of Lessee's obligations, or if execution, seizure or attachment shall be
levied upon any of Lessee's;pxoperty or the premises are taken ox occupied or attempted to be taken
or occupied by someone otheY than Lessee; howevex, in the event of execution, seizure or
attachment,Lessee may post a bond satisfactory to Lessor which bond shall stay the default
xesulting from any execution, levy, seizure or attachment for a period of 30 days. Failure to xemove
the levy, seizure or attachment within the 30 day period shall consritute an Event or Default, and the
bond posted shall be forfeited; or
d. Lessee's vacating or abandoning the premises; then Lessox, at its option, may
exeYCise any one or more of the following xemedies 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-let or attempt to re-let the premises on behalf of Lessee;
howevex, 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 conditions as
Lessor may deem best under the circumstances fox the purpose of Yeducing Lessee's liability, and
Lessox shall not be deemed to have thereby accepted a surxender of the pxemises, and Lessee shall
xemain liable for all rents and additional rents due under this lease and for all damages suffered by
Lessox because of Lessee's breach of any of the covenants of this lease. Said damages shall include,
but not be limited to, chaxges fox removal and storage of Lessee's property,remodeling and repaixs,
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 xent,
accelexated rent and damages as described above;however,with respect to the accelerated rent,
Lessor shall xeceive only the pxesent value of such accelerated rent.. At any time during
repossession and re-letting 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, tide and interest of Lessee in the premises shall end and Lessor may re-enter upon and
take possession of the premises. Such terinination shall be without prejudice to Lessox's right to
collect from Lessee any rental or additional rental which has accrued priox to such terminarion
together with all damages,including, but not limited to, the damages specified in subparagraph (1) of
this paragraph which axe suffered by Lessor because of Lessee's breach of any covenant undex this
lease.
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(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. The Lessee hereby covenants and agrees to keep and ma.intain the premises and fixtures
located herein in good condirion and repair during the term of this lease and any extension hereof,
and to return the premises to the Lessor upon the expirarion of the term hereof in as good condirion
as they now axe, oxdinary wear and tear and damage by the elements only excepted. No alteration ox
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 xequixe the
Lessee to xemove all fixtures,partitions,xacks, shelves ox other improvements from the premises
upon the expixation of the term of the lease at the cost 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 pxemises,pxovided said signs are approved as to color, style and letter size by the Marine &
Aviation Director of the Lessor, and additionally conform to the sign ordinance of Lessor presently
in foxce or as may be amended fYOm 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 appxoval of the lease. The Lessee shall,
upon expixarion or terminarion of the lease, completely remove any and all signs that have been
placed on the leased pYemises 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 claun against the leased
property; and
b. For faithful performance of the covenants contained in paragraph 11 above; and
c. To obtain from the contractor a good and sufficient pexformance 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 the contemplated
improvements to the demised pxemises, guaranteeing that the unprovements will be completed and
that subcontractors, laboxers and materialmen will be paid in accordance with the contract for the
unprovements.
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14. In the event of the acquisition of this property or any portion thereof by exercise of
pxoper authority,by any governmental agency othex than Lessor,whether by eminent domain or
otherwise,it is understood and agxeed that notification of the insritution of such acrion 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 hexein pxovided,
and upon observance and pexformance 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
pxemises for the term of the lease without hindrance or interruption by Lessor.
16. Notices hereunder shall be given only by xegistered or certified mail, and shall be
deemed given when the lettex 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 ox to such other addxess
as may be substituted therefore by proper notice hereunder. Lessor's notices shall be directed in
care of its Law Departtnent at the above-cited address.
17. As required by Secrion 404.056(8), Florida Statutes, the Lessee shall take notice of the
following:
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 xegaxding radon and radon testing may be obtained fxom your
county public health unit.
18. The undetsigned shall personally guarantee to Lessor the timely pexformance of all
covenants and provisions of this Lease Agreement, including, but not limited to the timely payment
of all rent due hereundex.
19. This lease agreement constitutes the entire contract between Lessor and Lessee
concerning the leasing of the premises and consideration thereof.
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 attorney's fees and
costs, and that jurisdiction shall be in a court of competent jurisdiction in Pinellas County, Florida.
8ruce Littl�r, Inc, Room 8 Lease pa�� ��
IN WITNESS WHEREOF, the parties hexeto have set their hands and seals this a� day
of � �rnEx/l , 2011.
Countersigned: CITY OF CLEARWATER, FLORIDA
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� By: tB- �e��-�-�'
Frank Hi rd William B. Horne, II
Mayox City Manager
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Appr ved as o Attest: ! �"'�``I/ ���,
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��a,�' �„ -—_ � ,�- ��
Camilo Soto Rosemarie Call � �:'
Assistant City Attorney City Clerk ��� °�
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F3ruce Littler, Inc. Room$ Lease �a�� ,7
Exhibit "A"
LEGAL DESCRIPTION
Room/s 8, Clearwater Marina Building, located on Lots 11 and 12 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"
INSURANCE
Lessee shall procure at its expense and maintain during the term of this Agreement,insuYance as
shown below:
a. Comprehensive General Liability insurance to include pYemises/operator liability in an
amount not less than $1,000,000 combined single limit Bodily Injury Liability and Pxoperty
Damage Liability.
b. Compxehensive Plate Glass InsuYance on a replacement cost basis covering loss or
damage by any means, except by 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 in an amount at least equal
to the statutory limits of coverage according to applicable State and Federal laws. In
addirion, the policy shall include employer's liability coverage with a limit of$500,000 per
occurrence.
The City is to be specifically included as an additional insured on the commercial liability covexage
descxibed above.
Notice of Cancellation or Restriction -All policies of insurance must be endoxsed to provide the
City with thirty- (30) day's notice of cancellation or xestricrion.
Certified Copies of Policies/Certificate of Insurance. Upon specific written request of the City, the
Lessee shall provide the Lessor with cerrified copies of all policies of insurance as Yequired 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
notice is given to Lessee otherwise, such Cerrificates of Insurance shall be provided to the Marine &
Aviarion Director. The first Cerrificate of Insurance required by the lease shall be pxovided to the
Marine &Aviation Director before occupancy of the demised premises by the Lessee.
Bruce Littl�r, Inc, Room 8 Lease p���, �
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Exhibit "C"
GUARANTY OF PAYMENT OF RENT UNDER LEASE AGREEMENT
Guaranty is made this�_day of , 2011, by Bruce Littler, City of
Clearwater, County of Pinellas, State of Florida, herein referred to as "Personal Guarantors: being
the owner respectively, of Bruce Litder, Inc., herein referred to as "Obligor: to CITY OF
CLEARWATER, C/O City Attorney, P.O. Box 4748, Clearwater, Florida 33758, 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 storage.
2. The lease is conditioned upon guarantors giving security for payment of rent thereunder in the
form of a pexsonal guaxanty.
SECTION ONE
STATEMENT OF GUARANTY
Guarantors guaxantee payment of rent under the attached lease agreement puxsuant 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. Guarantor's 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 year term of this 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 guarantors, operate to term.inate
this guaranty as of the end of the three yeax period.
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SECTION THREE
LIMITATION OF LIABILITY
The ma�xnum amount recoverable by obligee from guarantors pursuant to this guarantee is
$9,674.88,which amount is equal to the total rent due during the lease year of the lease. If the
aggregate of payments made by guarantors hereundex reaches the above-menrioned amount, this
guaranty shall terminate immediately.
SECTION FOUR
WAIVER OF NOTICE OF ACCEPTANCE
Notice of acceptance of this guaranty is expressly waived.
IN WITNESS WHEREOF,guarantors have executed this guaxanty at Clearwater Municipal
Marina the day and year first above written.
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Guarantox - Bru�T.itder
Bruce Li#tler, Inc. Room 8 Lease page 11