LEASE AGREEMENTLEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this �'' day of
��m�z-�� , 2012, by and between the CITY OF CLEARWATER, FLORIDA, a
municipal corporation, hereinafter referred to as "Lessor" and Marina Cantina, LLC, a
Florida limited liability company, d/b/a Marina Cantina Restaurant, 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."
NOW, THEREFORE, IT IS MUTUALLY AGREED AS FOLLOWS:
1. This lease shall be for a five (5) year lease term, with the option to renew
for five additional five (5) year terms, beginning, October 1st, 2012, and ending either
September 30th, 2017 or five years after the last option is exercised, and such option(s)
shall only be exercised with the written consent of both parties. An "agreement year"
commences on the 1st day of October of each year and terminates on the 30th day of
September of the following year. This lease agreement shall supersede all prior leases
with this Lessee for this property. If the Lessor does not consent to renewing for an
additional term or terminates the lease for municipal need, the Lessor agrees to pay
Lessee an amount equal to the unamortized construction cost incurred by Lessee, as
detailed in Exhibit E, to be calculated as detailed in Exhibit F on the date after the
conclusion of the previous lease term or as of the "termination for municipal need" date,
such unamortized construction costs to be determined by amortizing on a straight line
basis over a twelve (12) year period commencing on the Lease Commencement Date. If
Marina Cantina LLC Lease
this Agreement is terminated during the span of an agreement year, the amount of the
refund wiil be prorated for that particular agreement year.
2. The Lessor may cancel this agreement at any time by giving thirty (30)
days prior written notice to the Lessee, or any of its agents or its attorney, when in the
opinion of the Lessor inferior service is being offered, or for any other good and valid
reason that in the opinion of the Lessor might detract from the City of Clearwater and is
not in the best interest of the public. Such written notice shall state in particular any and
all complaints and Lessee shall have thirty (30) days within which to reasonably correct
such complaints to the satisfaction of the City Manager.
3. Lessor, in addition to any other right of termination set forth in this
agreement, may terminate this Lease for any municipal need as determined by the City
Council on sixty (60) days written notice.
4. The Premises shall be used only for the purpose of conducting the
business of a full service restaurant with full liquor bar and service; otherwise, this lease
becomes null and void.
5. The Lessee hereby covenants and agrees to pay rent for the leasehold,
which will eventually comprise 9,285 square feet of interior space and 11,237 square
feet of exterior/seasonal patio space as follows:
a. Once the restaurant is open for business, the Lessee shall, at the
beginning of the following month, pay an amount equivalent to eight (8) percent of
monthly gross alcoholic beverage sales for the preceding, calculable month throughout
the term of this lease, and any extension thereof. The percentage of alcohol sales
remittance shall be made along with the Lessee's payment of the monthly rent, which is
detailed in subsections (b) through (h) below. The Lessee shall provide the Lessor
within 15 days after the end of each month during the term of this lease a statement
showing the amount of alcohol beverage gross sales accounted separately 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. Such statement should be
accompanied with a copy of the monthly State Sales Tax return paperwork accounting
the amount of gross sales for the preceding month. The term "gross sales" as used in
this paragraph means the entire amount of the actual sales receipts, whether for cash or
Marina Cantina, LLC Lease 2
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.
b. Year 1— Lessee shall:
i. Pay $9.00/sq. ft. for 7,761 sq. ft. of leasehold for the first three (3)
months of year 1.
ii. Pay $9.00/sq. ft. when Lessee's leasehold expands to 9,285 sq.
ft. for the remaining nine (9) months of year 1.
iii. Pay the total sum of $80,136.00 plus tax for this year of the
lease, which shall be paid in equal monthly payments of $6,678.00
plus tax through September 30, 2013. Each monthly payment shall
be due and payable on the first day of each month.
c. Years 2 through 5— Lessee shall:
i. Pay $9.00/sq. ft. for 9,285 sq. ft. per year during years 2 through
5 of the lease.
ii. Pay the total sum of $334,260.00 plus tax during the span of
years 2 through 5 of the lease, which shall be paid in equal monthly
payments of $6,963.75 plus tax through September 30, 2017.
Each monthly payment shall be due and payable on the first day of
each month.
d. Years 6 through 10 (if applicable, from October 1, 2017 to
September 30, 2022) — Lessee shall:
i. Pay $9.00/sq. ft. for 9,285 sq. ft. per year during years 6 and 7 of
the lease, at a total sum of $167,130.00 plus tax, which shall be
paid in equal monthly payments of $6,963.75 plus tax through
September 30, 2019.
ii. Pay $17.50/sq. ft. for 9,285 sq. ft. per year during years 8 through
10 of the lease, at a total sum of $487,462.68 plus tax, which shall
be paid in equal monthly payments of $13,540.63 plus tax through
Marina Cantina, LLC Lease 3
September 30, 2022.
iii. Each monthly payment shall be due and payable on the first day
of each month.
e. Years 11 through 15 (if applicable, from October 1, 2022 to
September 30, 2027) — Lessee shall:
i. Pay $17.50/sq. ft. for 9,285 sq. ft. per year during years 11 and 12
of the lease, at a total sum of $324,975.12 plus tax, which shall be
paid in equal monthly payments of $13,540.63 plus tax through
September 30, 2024.
ii. Pay $20.00/sq. ft. for 9,285 sq. ft. per year during years 13
through 15 of the lease, at a total sum of $557,100.00 plus tax,
which shal{ be paid in equal monthly payments of $15,475.00 plus
tax through September 30, 2027.
iii. Each monthly payment shall be due and payable on the first day
of each month.
f. Years 16 through 20 (if applicable, from October 1, 2027 to
September 30, 2032) — Lessee shall:
i. Pay $20.00/sq. ft. for 9,285 sq. ft. per year during years 16 and 17
of the lease, at a total sum of $371,400.00 plus tax, which shall be
paid in equal monthly payments of $15,475.00 plus tax through
September 30, 2029.
ii. Pay $22.50/sq. ft. for 9,285 sq. ft. per year during years 18
through 20 of the lease, at a total sum of $626,737.68 plus tax,
which shall be paid in equal monthly payments of $17,409.38 plus
tax through September 30, 2032.
iii. Each monthly payment shall be due and payable on the first day
of each manth.
g. Years 21 through 25 (if applicable, from October 1, 2032 to
September 30, 2037) — Lessee shall:
i. Pay $22.50/sq. ft. for 9,285 sq. ft. per year during years 21 and 22
of the lease, at a total sum of $417,825.12 plus tax, which shall be
Marina Cantina, LLC Lease 4
paid in equal monthly payments of $17,409.38 plus tax through
September 30, 2034.
ii. Pay $25.00/sq. ft. for 9,285 sq. ft. per year during years 23
through 25 of the lease, at a total sum of $696,375.00 plus tax,
which shall be paid in equal monthly payments of $19,343.75 plus
tax through September 30, 2037.
iii. Each monthly payment shall be due and payable on first day of
each month
h. Years 26 through 30 (if applicable, from October 1, 2037 to
September 30, 2042) — Lessee shall:
i. Pay $25.00/sq. ft. for 9,285 sq. ft. per year during years 26 and 27
of the lease, at a total sum of $464,250.00 plus tax, which shall be
paid in equal monthly payments of $19,343.75 plus tax through
September 30, 2039.
ii. Pay $27.50/sq. ft. for 9,285 sq. ft. per year during years 28
through 30 of the lease, at a total sum of $766,012.68 plus tax,
which shall be paid in equal monthly payments of $21,278.13 plus
tax through September 30, 2042.
iii. Each monthly payment shall be due and payable on the first day
of each month.
i. Any amount due from Lessee to Lessor under this agreement that is
not paid when due, shall bear interest at the maximum rate allowable by law, plus a late
charge of ten dollars ($10.OQ) to cover Lessor's administrative expenses in collecting
such delinquency.
j. In addition to paying the first month's rent of $6,678.00, the Lessee shall
pay an additional $6,963.75 as a deposit to secure the faithful performance of the
Lessee's obligations hereunder. If options to extend the lease are exercised, then the
Lessee must provide the Lessor a deposit equaling the highest monthly payment of that
respective lease term. Lessee's failure to maintain the appropriate deposit amount with
the Lessor may result in Lessor declaring this failure an Event of Default. The Lessor
may deduct from the deposit any amount, which might become due from the Lessee to
Marina Cantina, LLC Lease 5
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.
k. If Lessee defaults in the payment of any installment of rent, Frank
Chivas, individually, as Guarantor under the Guaranty of Payment of Rent Under Lease
Agreement (Exhibit "C", attached hereto and incorporated herein), shall pay the amount
of such installment(s) due and owed within thirty (30) days after receipt of notice of
default and demand for payment as provided for therein. Frank Chivas will not be
personally liable for any accelerated rental payments in the event Lessor exercises its
right to accelerate rental payments pursuant to paragraph 15(fl(1) below.
6. The Lessee hereby covenants and agrees to make no unlawful, improper,
or offensive use of the Premises. Lessee shall not permit any business to be operated
in or from the Premises by any concessionaire of Lessee without the written consent of
Lessor. Lessee fu�ther covenants and agrees not to assign, pledge, hypothecate, or
sublet this agreement in whole or in part without the prior written consent of Lessor.
The consent of Lessor to any assignment, pledging, hypothecating, or subletting shall
be at Lessor's sole discretion, and shall not constitute a waiver of the necessity for such
consent to any subsequent assignment, pledging, hypothecating, or subletting. This
paragraph shall be construed to incfude a prohibition against any assignment or
subletting by operation of law. If this agreement is assigned, or if the Premises or any
part thereof is sublet or occupied by anybody other than Lessee, Lessor may collect
rent from the assignee, subtenant or occupant, and apply the net amount collected to
the payments to be made herein by Lessee, but no such assignment, subletting,
occupancy or collection shall be deemed a waiver of this covenant, or the acceptance of
the assignee, subtenant 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 Agreement, any or all of Lessee's interests in
the demised premises are. transferred by sale, assignment, bequest, inheritance,
operation of law or disposition, Lessee shall notify Lessor in writing of such transfer and
shall provide to Lessor the name, address, financial statement and business experience
resume for the immediate preceding five (5) years of the proposed assignee. This
Marina Cantina, LLC Lease 6
information shall be in writing and shall be received by Lessor no less than thirty (30)
days prior to the effective date of such transfer. Lessor at its sole discretion shall have
the option of accepting the proposed assignee and can charge a reasonable fee to
Lessee for processing such request. Lessee can request a transfer under this provision
no more than once in an agreement year unless otherwise approved to in writing by
Lessor.
7. Lessee agrees that it will promptly pay all ad valorem real property taxes
and personal property taxes that may be assessed against the Premises during the
term of this agreement. Lessee fu�ther 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,
including but not limited to, business tax receipt, beverage license, and permits relating
to the operation of the business conducted on the Premises, which are required by law.
8. The Lessee hereby covenants and agrees to pay all bills for electrical
service and water usage to the premises when due. The electrical service shall be
provided by Progress Energy Corporation, or other similarly situated franchisee with the
capacity to provide such utility, in accordance with the company's rates and billing, and
water service provided by the City of Clearwater, in accordance with its standard rates
and billing.
9. Lessee will use biodegradable materials whenever feasible.
10. Lessee will provide all equipment and merchandise necessary for the
operation of the restaurant. In addition, the Lessee will pay all normal day-to-day repair,
maintenance, and replacement costs, being certain that any material used will be equal
to nr better than that originally provided.
11. Lessee will be responsible for collecting and disposing of all trash,
garbage, and other debris upon or about the leased premises including the decks and
all exterior patio space.
12. 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
Marina Cantina, LLC Lease 7
preparations, and any time necessary to repair or replace any damage caused to the
demised premises by natural disasters.
13. Lessee agrees to indemnify and hold Lessor and its employees harmless
from and against any and all claims, demands, and causes of action or lawsuits of
whatever kind or character arising directly or indirectly out of this agreement and/or
performance hereof. This indemnity clause includes, but is not limited to, claims,
demands, causes of action or lawsuits for damages or injuries to goods, wares,
merchandise and property and/or for any bodily or personal injury or loss of life in, upon
or about the {eased Premises or the surrounding premises the Lessee is required to
maintain or which the Lessee uses in connection with the business operated at, on or
from the leased Premises. Damage to all personal property, including trade fixtures, in
the Premises shalt be at the risk of Lessee, and Lessor shall not be liable for any
damage to such property arising from any cause including, but not limited to, bursting,
leaking or accidental operation of water or sewer pipes; roof leaks or flooding. Lessee
agrees to investigate, handle, provide defense for and defend any such claims,
demands, causes of action or lawsuits at its sole expense and agrees to bear all other
costs and expenses related thereto, even if the claim, demand, cause of action or
lawsuit is groundless, false or fraudulent.
Lessee shall at his own expense purchase or maintain during the term of
this agreement, the insurance coverage conforming to the requirements in Exhibit "B"
attached hereto. Nothing contained herein shall be construed as a waiver of any
immunity from or limitation of liability the Lessor may be entitled to under the doctrine of
sovereign immunity or section 768.28, Florida Statutes.
14. If at any time during the term of this agreement, the buildings or Premises
or any part, system, or component thereof, (hereinafter, the "demised premises") shall
be damaged, said demised premises and any additions or improvements thereto, shall
be promptly repaired or rebuilt or restored by the Lessee to the condition as good as the
same was immediately prior to such damage or destruction at the Lessee's risk and
expense, and in accordance with plans and specifications mutually agreed upon at the
time; or if none can be agreed upon, then in accordance with the original plans and
specifications and any subsequent plans and specifications for any additions or
Marina Cantina, LLC Lease 8
improvements constructed prior to the damage. The work of restoration or rebuilding
shall be in full compliance with all {aws and regulations and government ordinances
applicable thereto. The insurance proceeds shall be paid to the Lessor, and such
proceeds will be used for the �epair or restoration. Any cost of repairs or restoration in
excess of the insurance proceeds shall be borne by the Lessee. Any insurance
proceeds in excess of the cost of repairs or restoration shall belong to the Lessee.
During the period of such damage or destruction, whether in whole or in
part, the monthly guaranteed rent shall abate for no more than 120 days or until
commencement of business, after receipt of all building permits, whichever is sooner.
Lessor shall not withhold unreasonably building permits Lessee applies for and are
necessary to repair such damage or destruction.
If the demised premises shall be destroyed or so damaged as to render it
practically useless during the term of this agreement, then and in that event, the Lessee
may terminate this agreement as of the date of such damage with thirty (30) days
written notice to the Lessor. In the event of such termination, the insurance proceeds
provided for under this agreement shall be paid to the Lessor. In the event of such
destruction, and except as otherwise specifically provided under this agreement, both
parties waive any and all rights of recovery against each other for any direct or indirect
loss occurring to the demised premises.
In the event of major renovation to the Marina or demolition and
subsequent construction of a new Marina that causes the legal termination of this
Lease, the Lessee may be provided, at the Lessor's discretion, the first opportunity to
bid for similar space, provided that space for Lessee's type of business is available in
the renovated or new Marina.
15. Lessor, at its option, may exercise any one �f the remedies provided in
subsection (fl of this section, 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 or written notification of sums due;
b. There shall be filed by or against Lessee in any event pursuant to
any statute either of the United States or of any state, a petition in bankruptcy or
Marina Cantina, LLC Lease 9
insolvency or for reorganization or arrangement, or for the appointment of a receiver or
trustee of all or a portion of Lessee's properiy, or if the Lessee makes an assignment by
operation of law, or if execution, seizure, or attachment occurs to the demised premises
for a period of 120 days. Failure to remove the levy, seizure or attachment within the
120-day period shall actuate the default provided by this paragraph and the bond
posted shall be forfeited.
c. Lessee's vacating or abandoning the Premises;
d. Lessee's understating gross sales by more than three (3%) percent
in sales reports given to Lessor. An error occurring by reason of computer malfunction,
typing, or other similar clerical error shall not be considered a default within the meaning
of this paragraph.
e. Or due to any other occurrence, or lack thereof, constituting an
Event of Default, as provided elsewhere in this Lease.
f. Lessor, at its option, may exercise any one or more of the following
remedies, which shall be cumulative.
(1) Terminate Lessee's right to possession under this agreement and
reenter and take possession of the Premises, reletting or attempt to relet
shall only involve a prospective tenant capable of providing comparable or
better type services, 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 agreement and for all
damages suffered by Lessor because of Lessee's breach of any of the
covenants of this agreement. 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, and loss of
prospective percentage rentals by Lessor. Said prospective percentage
rents shall be calculated on the basis of Lessee's gross sales for the
immediately preceding finrelve (12) month period or for the period, adjusted
on an annualized basis, commencing with the first day of this agreement if
Marina Cantina, LLC Lease 10
this agreement has not been in effect for twelve (12) months. In addition
to its remedies hereunder, Lessor may accelerate all fixed rentals due for
the present term under this agreement, 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 reletting pursuant to this subsection, Lessor may, by
delivering written notice to Lessee, elect to exercise its option under the
foltowing subsection to accept a surrender of the Premises, terminate and
cancel this lease, and retake possession and occupancy of the Premises
on behalf of Lessor.
(2) Declare this agreement to be terminated, whereupon the term
hereby granted and all right, 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 loss of prospective percentage rentals suffered by Lessor because of
Lessee's breach of any covenant under this agreement.
(3) Exercise any and all rights and privileges that Lessor may have
under the laws of the State of Florida and/or the United States of America.
16. This lease is predicated upon two main conditions that directly benefit the
Lessor. First, Lessee shall underwrite the total direct and incidental cost of relocating
the Marina Operations/Department offices from its current location on the 2"d floor of the
Premises to the 1St floor. Second, Lessee endeavors to invest, as specifically detailed in
"Exhibit E," and such investment will include capital improvements that will modernize
and enhance the marina building, inside and out, so that the marina building's
architectural theme is brought back to a more vintage appearance, similar to when the
marina building was first constructed, and so that portions of the internal infrastructure
of the marina building are restored. It is estimated that this investment will cost the
Lessee $2.5 million dollars, with a permissible deviation of fifteen (15%) percent,
Marina Cantina, LLC Lease 11
whichever is the lesser amount after the investment has been made, as such, Lessor
has agreed to amortize the cost of such investment by reducing the rental rate below
the current market rate for commercial space in the marina for the first twelve (12) years
of this lease, if exercised, as detailed in paragraphs 4(b) —(e)(i) above. These
conditions must be accomplished to the sole satisfaction of the Lessor; otherwise,
Lessee's failure to do so shall constitute an Event of Default. Lessee understands that it
will not be reimbursed for such investment, except as provided in paragraph one (1) of
this agreement.
Lessee shall secure prior written approval from Lessor for modifications or
remodeling of existing facilities or for the construction of any new facilities, such
approval not to be unreasonably withheld. The terms remodeling or modifications as
used herein shall include only those events requiring the issuance of a building permit.
It is agreed that the existing improvements, together with any improvements constructed
by Lessee during the term of this agreement on the demised premises, shall become
the property of the Lessor upon the expiration of termination of this agreement;
provided, however, that said reference to improvements herein contemplates
improvements to the real estate which become a part of the land as distinguished from
personal property utilized by the Lessee. Lessee acknowledges that all proposed capital
improvements are subject to local and federal regulation and approval. The Lessor will
not reimburse Lessee for rent paid to maintain the leasehold, in the event that any of the
capital improvements are not approved or campleted. Lessee covenants to complete all
contemplated investment, as detailed in Exhibit E, as expeditiously as possible and
have the restaurant open soon thereafter or within three (3) years, whichever is shorter.
Otherwise, this shall constitute an Event of Default.
17. Lessee shall, at his expense, at all times during the terms of this
agreement keep the Premises and all improvements and facilities thereon in good
order, condition, and repair. It is specifically understood by Lessee that the Lessor has
the right to inspect the Premises and improvements at any time to ensure that the
Premises and improvements are indeed in good order, condition, and repair. Upon the
termination or expiration of this agreement, Lessee shall repair any and all damages to
the Premises caused by the removal by Lessee of personal property.
Marina Cantina, LLC Lease � 2
18. Upon the termination or expiration of the agreement for whatever cause,
the Lessee shall have the privilege at his own expense of removing its equipment,
signs, insignia, and other indicia of its tenancy or use. All improvements and fixtures
remain the property of the Lessor and shall not be removed by the Lessee.
19. Lessee agrees to indemnify and save harmless the Lessor by reason of
any mechanic's lien which may be asserted as a claim against the property, and to
furnish Lessor a good and sufficient bond signed by a reputable bonding company
doing business in Florida, which bond shall be in an amount equal to one hundred 100
percent (100%) of the cost of construction of the contemplated improvements to the
demised premises. This bond shall be obtained prior to any work being conducted at the
Marina.
20. The Lessee hereby covenants and agrees to promptly and continuously
comply with all regulations and orders of the Florida Department of Business and
Professional Regulation and officers of the local, state, and national governments; and
Lessee hereby covenants and agrees to keep, operate, and maintain the restaurant in
such a manner as to avoid any warnings, violations or notices to show cause being
issued by any regulatory agency authorized to inspect the Premises under Florida
Statute 509 as it presently exists or as it may be amended. In addition, Lessee agrees
to forward to Lessor a copy of each inspection report issued in accordance with Florida
Statute 509 as it presently exists or as it may be amended within five (5) days of
receiving any such reports.
21. Lessor covenants and agrees that upon payment by Lessee of the rents
herein provided, and upon obsenrance and performance by Lessee of all the covenants,
terms, and conditions required of the Lessee by the agreement, Lessee shall peaceably
and quietly hold and enjoy the Premises for the term of the agreement without
hindrance or interruption by Lessor.
22. Notices hereunder shall be given only by certified mail and shall, unless
otherwise expressly provided, be deemed given when the letter if deposited in the mail,
postage prepaid, addressed to the party for who intended at such party's address first
herein specified or to such other address as may be substituted therefore by proper
notice hereunder. Notice to be provided to Lessor and Lessee as stated below:
Marina Cantina, LLC Lease 13
As to Lessor:
City Attorney's O�ce
City of Clearwater
Post Office Box 4748
Clearwater, Florida 33758-4748
As to Lessee:
Marina Cantina, LLC
c/o Frank Chivas
18395 Gulf Blvd., Suite 204
Indian Shores, FL 33785
Brian J. Aungst, Jr.
Macfarlane, Ferguson & McMullen, P.A.
625 Court St., Suite 200
Clearwater, FL 33556
23. No sign of any type will be posted, erected, hung or otherwise placed in
view of the general public so as to advertise any product or identify the restaurant
unless permitted by the City of Clearwater Code of Ordinances, as they now exist or as
they may be amended, and unless authorized and approved by the City. The Lessee, at
its own cost, may place only window, wa{I 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 shal! 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.
24. Lessee shall not advertise any business not operated at, on, or from the
Premises without the prior written consent of the City.
25. In the event that either party retains an attorney to enforce any of the
provisions of this agreement or renewals of or addenda to this agreement, or to effect
the enforcement of any legal right hereunder, the prevailing party shall be paid by the
other for all costs of said enforcement reasonably incurred, including court costs and
reasonable attorney's fees.
Marina Cantina, LLC Lease 14
IN WITNESS WH�REOF, this agreement is execufed as of the date first above written.
Countersigned:
— �C'A �enC� ���°S
Gearge N�tekos, Mayor
CITY OF CLEARWATER, FLURIDA
By l���L----�I:�CX/-aL,r.v--� � ��
William Horne, City Manager
� �p�,of ryf
Ap oved as to f . Atiest: ,��'J C��
� v .�t�/ �
� �Yl.L7.:`� `.Z- �a'�'�- - =-- �
�
Camilo Soto, Assistant City Attomey Rosemarie Cail, City Clerk `�� _���
Marina Cantina� LLC "''�'
�
By: �
Print: �`�'¢�,�� ��`�v
Its: Presidenf
�y:
'"� L %� f�� �s
Print: � • � C �
Personal Guarantor for Lessee
Marina Cantina, LLC l,ease ��
Exhibit "A"
Legai Description of Premises:
Those certain portions of the first floor of the Clearwater Beach Marina Building
depicted in Exhibit "D" attached hereto and by this reference made a part hereof,
containing 1,300 square feet on the easternmost portion of the building, more or less,
and 1,524 square feet of the westernmost portion of the building, more or less, of
interior floor area, measured to the unfinished interior surfaces of its perimeter walls;
and the entire second floor containing 6,088 square feet, more or less, measured to the
unfinished interior surfaces of its perimeter walls together with outdoor patio areas
totaling 5,522 square feet, more or less, measured to the exterior surfaces of the
second floor perimeter walls and the interior surfaces of the perimeter railings; and the
entire third floor containing 373 square feet, more or less, measured to the unfinished
interior surfaces of its perimeter walls together with outdoor patio areas totaling 5,715
square feet, more or less, measured to the exterior surfaces of the third floor perimeter
walls and the interior surfaces of the perimeter railings, all together being a portion of:
Lots 11 and 12, City Park Sub according to the map or plat thereof as recorded in Plat
Book 23, Page 37, of the public Records of Pinellas County, Florida.
Marina Cantina, LLC Lease 16
Exhibit "B"
1. Liability Insurance. Lessee shall maintain:
a. Comprehensive General Liability Insurance to include
premises/operator liability and electrical liability in an amount
$1,000,000 combined single limit Bodily Injury Liability and Property
Damage Liability.
b. Coverage for liability resulting from the dispensing of alcoholic
beverages in an amount not less than $500,000.
�. 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/Certificate of Insurance. Upon specific written
request of the City, the Lessee shall provide the Lessor with certified copies
of all 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 notice is given to Lessee othen►vise, such
Certificates of insurance shall be provided to the Marine & Aviation Director.
The first Certificate of Insurance required by the lease shall be provided to the
Marine & Aviation Director before occupancy of the demised promises by the
Lessee.
Marina Cantina, LLC Lease 17
Exhibit "C"
GUARANTY OF PAYMENT OF RENT UNDER LEASE AGREEMENT
Guaranty is made this day of , 201_, by Frank Chivas,
individually, City of Clearwater, County ot Pinellas, State of Florida, herein referred to as
"Guarantor(s)" on behalf of the Lessee,
d/b/a
herein referred to as "Obligor," to the CITY OF CLEARWATER, CIO
CITY ATTORNEY, P.O. BOX 4748, CLEARWATER, FLORIDA 33758, herein referred
to as "Obligee."
RECITALS
1. Obligor has leased the Premises that is the subject of this lease from Obligee,
and Guarantor, whose business address is 25 Causeway Blvd., City of
Clearwater, County of Pinellas, State of Florida, has a personal and individual
interest in utilizing the Premises for conducting business—a restaurant;
2. The lease is conditioned upon Guarantor providing security for payment of rent
hereunder in the form of a personal guaranty on behalf of the Lessee.
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. 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.
Marina Cantina, LLC Lease 18
SECTION TWO
DURATION
This guaranty shall not be revoked during the five year term of the lease, or any
subsequent extension thereof. Thereafter, if the lease is renewed, 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.
SECTION THREE
LIMITATION OF LIABILITY
The maximum amount recoverable by obligee from guarantors pursuant to this
guarantee is the total amaunt of rent due and owed the obligee for the present term. If
the aggregate of payments made by guarantors hereunder reaches the above-
mentioned amount, this guaranty shall terminate immediately. Frank Chivas will not be
personally liable for any accelerated rental payments in the event Lessor exercises its
right to accelerate rental payments pursuant to the default provisions of the lease.
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.
Marina Cantina, LLC Lease � 9
�/������Y�
Guarantar-- Frank Chivas, individually,
on behalf of Marina Canfina, LLC
Marina Cantina, LLC Lease 20
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Marina Cantina, LLC Lease 2�
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Exhibit E
Marina Cantina Pre-opening budget
BUDGET ACTUAL
1.-CONSTRUCTION
COST
Construction contract 0
Architects and
engineers 39500
First floor construction cost 120000
Windows/ Doors 1st floor 155,000
2nd floor 85500
Permits and Licenses 12000
Water heater 12000
Water softener 3600
Flooring kitchen and bar 17500
dinning 29000
�masonry 30000
Drywall/frarning kitchen 53750
dining 42.500
Insulation 12.000
Acoustical Ceiling 18000
Stucco 13800
Fire Alarm 22000
Restroom rnale 3 stall 18000
female 3 stalll 18000
u n ilsex 6000
Paiiinting 48000
Plumbing 52500
Coolers/freezers 47600
Hoods/fire suppressions systems 49500
Electric 45000
Grease traps 27250
Hvac systern 57900
Railing 42000
Deck pavers 55000
Sprinkler system 57500
Demo 37500
Roof 55000
Elevators 93300
CONSTRUCTION COST $1,3,76,200
Marina Canfiina, LLC Lease 21
,'.FURNITURE AND FIXTURES
Chairs, barstools, tables inside anid out 397'000
Lighit -fixtures 23700
Signage 5500
Safe 850
Office furniture 600
Minds 18000
FURNITURE AND FIXTURE COST $445,650
3.-EQUIPMENT AND SIVIALLWARES
Smallwaires 850,00
Equipment 325000
Stainless, steel
fabrication 20000
EQUIPMENT AND SMALLWARES COST $430,000
4.-COMPUTERS,
Pos systems 42000
Office computer 40,00
Software 3600
Cash drawers 2000
Phone 5,000
Tv's 8000
Sound system 9800
Security system 12000
Pagers 4200
Cable 1200
Modem 5010
COMPUTERS COST $92,300
,5w-DECEIT $40,000,
6.-PRE OPENING CHARITY NIGHT
Meat 890
Fish 1400
Shrimp 800
Produce 800
Dairy 400
Food other 1.400
Marina Cantina, LLB Lease 22
Beverages 200
Lobster
Pubfic relations 4000
Liquor 1000
Beer 1000
Wine 1000
CHARITY EVENT COST $12,890 Clearwater Community Sailing Center
7.-PRE OPENING LABOR TAXES AND BENEFITS
MP 25000
Mlanagers 12000
Kitchen manager 6,00O
Boh 5000
Foh 2500
Suta/futa 600
Taxes 1414
PRE OPENING LABOR COST $52,514
8.-PRE OPENING SUPPLIES
Menus 250
Ecolab 1500
Training supplies 200
Cleaning supplies 500
Bar supplies 1200
Kitchen supplies 1200
R&M 170O
Misc supplies 1450,
PRE OPENING SUPPLIES COST $8,000
9,-P'RE OPEN
Linen, 500
Hotel ads 600
Hiring expense 400
Postage Supplies 100
First aid kits 150
Office supplies 200
Assoc. chamber fees 300
Customer relations 500
Utilities prior
Rent prior
PRE OPEN COST 2750
Marina Cantina, LL C Lease 23
10.- LEGAL
LEGAL EXPENSES 2500
$2, ,804
Marina Cain tin a, LL C Lease 24
Exhibit F
Leasehold Annual Months,per Rate per Months Years Monthly P& I
Improvements Rate Year Month
$ 1,376,200 0,00% 12 0,00% 144 12 (9,556.94)
Arnortization Schedule
Principal Interest Remaining
Year Month P & I Amortization Payment Principal
1 1 (9,556.94) (9,556,94) 1,366,643-0:6
1 2 (9,556.94) (9,556.94) 1,357,086,11
1 3 (9,556,94) (9,556.94) 1,347,529A7
1 4 (9,556.9'4) (9,556.94) 1,337,972.22
1 5 (9,5 5 6.94) (9,556.9'4) 1,328,415.28
1 6 (9,55634) (9,556,911) 1,318,85833
1 7 (9,556,.94) (9,55634) 1,309,301.39
1 8 (9,556.94) (9,556.94) 1,299,744.44
1 9 (9,55634) (9,556,94) 1,290,18T50
1 10 (9,556.94) (9,556,94) 1,280,630,5,6
1 11 (9,556.94) (9,556,94) 1,271,073.61
1 12 (91,556.94) (9,556,94) - 1,261,516-67
2 13 (9,556.94) (9,55634) - 1,251,959.72
2 14 (9,556.94) (9,556.94) - 1,242,402,78
2 15 (9,556,94) (9,556.94) - 1,23,2,845.83
2 16 (9,556.94) (9,556.94) - 1,223,28839
2 17 (9,556.94) (9,556,94) - 1,213,731,94
2 1.8 (9,556.94) (9,556.94) - 1,204,175-00
2 19 (9,556,94) (9,556,94) 1,194,61.8,06
2 20 (9,556.94) (9,556.9'4) 1,185,061-11
2 21 (9,556.94) (9,556.94) 1,175,504J7
2 22 (9,556.94) (9,556,94) 1,165,947.22
2 23 (9,556.94) (9,556,94) 1,156,390,28
2 24 (9,556.94) (9,5,56.94) 1,146,83333
3 25 (9,5 5 6.94) (9,55,6,94) 1,137,27639
3 26 (9,556,94) (9,556,.94) - 1,127,719.44
3 27 (9,556,94) (9,556.94) - 1,118,162.50
3 28 (9,556.94) (9,556-94) - 1,108,605.56
3 29 (9,556.94) (9,556.9'4) - 1,099,048.61
3 30 (9,556.94) (91,556.94) - 1,089,491.67
3 31 (9,556-94) (9,55634) - 1,079,934.72
3 32 (9,556,94) (9,556.94) - 1,070,377.78
3 33 (9,556,94) (9,556,94) - 1,0601,820,83
3 34 (9,556,94) (9,556.94) 1,051,261,89
3 35 (9,556.94) (9,556.,94) 1,041,706.94
3 36 (9,556.94) (9,556,94) 1,032,150-00
4 37 (9,556.94) (9,556.94) 1,022,593-06
4 38 (9,556.94) (9,556.94) 1,013,036,11
4 39 (9,556,94) (9,556.94) 1,003,479.17
Marina Cantina, LL C Lease 25
4 4() (9,556.94) (9,556.94) 993,922.22
4 41 (9,556.94) (9,556,94) 984,365.28
4 42 (9',556.94) (9,556.94) - 974,808.33
4 43 (9,556,94) (9,556.94) - 965,253-39
4 44 (9,556.94) (9,556.94) - 955,694.44
4 45 (9,556,94) (9,556.94) - 946,137.50
4 46 (9,556.94) (9,556.94) - 936,580.56
4 47 (9,556,94) (9,556.94) - 927,023.61
4 48 (9,556.94) (9,556.94) - 917,466,67
5 49 (9,556,94) (9,556.94) - 907,909.72
S 50 (9,556.94) (9,556.94) - 898,35238
5 51 (9,556.94) (9,556,94) - 888,795,83
5 52 (9,556.94) (9,556.94) - 874,238.89
5 53 (9,556.94) (9,556.94) - 869,681,94
5 54 (9,556.94) (9,556.94) 860,125.00
5 55 (9,556,94) (9,556.94) 850,568.06
5 56 (9,556.94) ('4,556.94) 841,011.11
5 57 (9,556.94) (9,556.94) 831,454.17
5 58 (9,556.94) (9,556,94) 821,897.22
5 59 (9,556.94) (9,556,94) 812,340.28
5 60 (9,556,94) (9,556,94) - 802,783.33
6 61 (9,556,94) (9,556.94) - 793,226,39
6 62 (9,556,94) (9,556.94) - 783,669.44
6 63 (9,556.94) (9,556.94) - 774,112-50
6 64 (9,556.94) (9,556.94) - 764,555-56
6 65 (9,556.94) (9,556,94) - 754,998-61
6 66 (9,556.94) (9,556,94), - 745,441-67
6 67 (9,556-94) (9,556.94) - 735,884.72
6 68 (9,556.94) (9,55,6,94) - 726,327.78
6 69 (9,556.94) (9',556,94) - 716,770-83
6 70 (9,556.94) (9,556,94) 707,21.3,89
6 71 (9,556,94) (9,556.94) - 697,656.94
6 72 (9,556,94) (9,556.94) - 688,100-00
7 73 (9,556,94) (9,556.94) - 678,543.06
7 74 (9,556.94) (9,556,94) - 668,,986,11
7 75 (9,556.94) (9,556.94) 659,42917
7 76 (9,556.94) (9,556.94) - 649,872.22
7 77 (9,556.94) (9,556.94) - 640,31.5,28
7 78 (9,556,94) (9,556.94) - 630,758.33
7 79 (9,556,94) (9,556.94) - 621,201.39
7 SO (9,556,94) (9,556.94) - 611,644.44
7 81 (9,556,94) (9,556.94) 602,087.50
7 82 (9,556.94) (9,556,94) 592,530.56
7 83 (9,556.94) (9,556.94) - 582,973-61
7 84 (9,556.94) (9,556.94) - 573,416,67
8 85 (9,556.94) (9,556.94) - 563,859,72
8 86 (9,556.94) (9,556.94) - 554,302.78
8 87 (9,5 56.94) (9,556.94) - 544,745.83
�Marina Caintina, LLC Lease 26
8 88 (9,556.94) (9,556.94) 535,188.89
8 8,9 (9,556.94) (9,556.94) - 525,631.94
8 90 (9,556.94) (9,556.94) - 516,075.00
8 91 (9,556.94) (9,556.94) - 506,518,06
8 92 (9,556,94) (9,556.94) - 496,961.11
8 93 (9,556,94) (9,556.94) - 487,404.1.7
8 94 (9,556.94) (9,556,94) - 477,847.22
8 95 (9,556,94) (9,5 5 6.94) - 468,290,28
8 96 (9,556.94) (9,556,94) - 458,733.33
9 97 (9,556,94) (9,556.94) - 449,176-39
9 98 (9,556.94) (9,556.94) - 439,619.44
9 99 (9,556.94) (9,556.94) - 430,062.50
9 100 (9,556,94) (9,556 94) 420,505-56
9 101 (9,556.94) (9,556.94) 410,948-61
9 102 (9,556.94) (9,556,94) 401,391,67
9 103 (9,556.94) (9,556.94) 391,834,72
9 104 (9,556.94) (9,556,94) 382,277,78,
9 105 (9,556.94) (9,556.94) 372,720,83
9 106 (9,556,94) (9,556.94) 363,16189
9 107 (9,556,94) (9,556-94) 353,606.94
9 108 (9,556.94) (9,556.94) 344,050.00
10 109 (9,556.94) (9,556.94) 334,49106
10 1.10 (9,556.94) (9,556.94) 324,936.11
10 ill (9,556.94) (9,556,94) 315,379.17
10 112 (9,556.94) (9,556.94) 305,822.22
10 113 (9,,556.94) (9,556.94) 296,26528
10 11.4 (9,556.94) (9,556.94) 286,708,33
10 11.5 (9,556.94) (9,556,94) 277,151.39
10 116 (9,556.94) (9,556.94) 267,594.44
10 117 (9,556,94) (9,556.94) 258,037,50
10 1..18 (9,,556,94) (9,556.'94) 248,480.56
10 119 (9,556.94) (9,556,94) 238,923.61
10 120 (9,556,94) (9,556.94) 229,366-67
11 1.2.1 (9,556.94) (9,556.94) 219,809.72
11 122 (9,556.94) (9,556.94) 210,252.78
11 123 (9,556.94) (9,556.94) - 200,695.83
11 124 (9,556,94) (9,556.94) - 191,138.89
11 1.25 (9,556,.94) (9,556.94) - 181,581.94
11 126 (9,556,94) (9,556.94) - 172,025D0
11 127 (9,556.94) (9,556.94) - 1,62,468.06
11 128 (9,556,94) (9,556.94) - 152,911-11
11 129 (9,556,94) (9,556.94) - 143,354-17
11 130 (9,556.94) (9,556,94) - 133,797,22
11 131 (9,556.94) (9,556.94) - 124,24028
11 132 (9,556.94) (9,556.94) - 114,68333
12 133 (9,556,94) (9,556,94) - 105,126.39
12 134 (9,556.94) (9,556,94) 95,569,44
12 135 (9,556.94) (9,556,94) 86,012-50
Marinia Cantina, LLC Lease 27
12 136 (9,556.94) (9,556.94) 76,455.56
12 :x.37 (9,556.94) (9,556,94) - 66,89&61
12 1.38, (9,556.94) (9,556A4) - 57,341.67
12 139 (9,556.94) (9,556,94) - 47,784.72
12 140 (9,556,94) (9,556,94) - 38,227,78
12 141 (9,556,94) (9,556.94) 28,670.83
12 142 (9,556.94) (9,556.94) 19,113,89
12 143 (9,556,94) (9,556.94) 9,556.94
12 144 (9,556,94) (9,556.94) (0-00)
---—---------
(1,376,200.00) (1,376,200,00)
MI ariina Cantina, LLC Lease 28