THREE YEAR LEASE AGREEMENT (3)LL
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Interoffice CorYespondence Sheet
To: Bryan D. Ruff, Assistant City Attorney
Fxom: William D. Morris, Marine & Aviarion Director ����°�� D
Date: April 20, 2006
�P� � 0 2�0�
RE: MaYina Lease Renewal �� ��� �� 1� R I�I E�
DY. Petrik's thYee-yeaY lease expites the end of May. He has asked that we permit him to Yenew yeaxly
fox the next thYee years because he has opened a second dental office on the mainland. The thYee-year
period will end May 31, 2009. You have reviewed and approved the language change.
The City Manager is authorized to sign off on leases thxee years or less without bringing them to City
Council. All marina leases up for Yenewal will not extend past September 31, 2009 when the Post Office
lease terminates and plans axe made for development of the marina pxoperty.
Please forward to the manager's office for signature after signing. I can be reached at 462-6954 ext. 22
if you have any questions.
LEASE AGREEMENT
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THIS LEASE AGREEMENT, made and entered into this a� of �, 2006, by
and between the CITY OF CLEARWATER, FLORIDA, a municipal corporarion, hereinafter
referred to as "Lessor", and David Petrik, d/b/a Marina Dental & Denture Clinic, P.A., 25
Causeway Boulevard, Clearwater, Florida 33767, hereinafter referred to as "Lessee."
That in considexation of the covenants hexein contained of the granting of this lease and the
sums paid and to be paid hereundex, the Lessor hexeby leases to the Lessee and the Lessee hereby
leases from the Lessor according to the terms, conditions and covenants herein contained the
following descxibed premises in the City of Cleanvater, Pinellas County, Florida, to wit:
See attached Exhibit "A."
THE PARTIES HERETO HEREBY COVENANT AND AGREE AS FOLLOWS:
1. The term of this lease shall be for three (3), one (1) year lease renewals beginning June 1,
2006, and ending May 31, 2009. The I;essoY xetains the right to termuiate this lease for any
municipal need consistent with the Lessor's charter, as well as failure to pay rent in a timely manner
ar change in use of the propexty. In addirion, Lessor may teL7ninate this lease if the State of Florida
ox any of its agencies ox political subdivisions thereof acquires the demised pxoperty or any portion
thexeof for a public purpose. This right of termination is in addition to the right of termination set
out in paragraph 14 of this Agxeement.
2. The Lessee heYeby covenants and agrees to pay Yental thereof as follows:
a. To pay the total sum of $53,282.16 for the thirty-six month term of this lease,
which shall be paid in equal monthly payments of $1,480.06. 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. Also, a consumer price index (CPI) increase will be added to the rent payment on
January 1st of each year. The increase will be based on the Consumex Price Index for all Urban
Consumers (CPUI-U) South Urban aYea, for the twelve-month period ending September 30th.
b. Any amount due fxom Lessee to Lessor undex this lease which is not paid before
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the day the payment becomes delinquent shall bear interest at the xate of fourteen (14%) pexcent peY
anum from date due until paid, plus a late charge of Ten DollaYS (�10.00) to cover Lessox's expenses
in collecting such delinquency.
c. In addition to the first month's rent of $1,480.06, which is due and pa��able on the
fitst day of the lease, the Lessee shall pay an additional $134.76 in advance as a deposit plus tax to
secure the faithful performance of the Lessee's obligarions heYeundex. The Lessor may deduct from
the deposit any amount that might become due from the Lessee to the Lessor foY damage to the
premises or for any reason or cause whatsoever except Yent. 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 Yental
payment.
3. The demised premises shall be used only foY the purpose of conducting therein the
business of a dental and dentuxe clinic.
4. The Lessee hereby covenants and agrees to make no unlawful, improper, or offensive use
of the leased pYemises. Lessee furtheY covenants and agrees not to assign, mortgage, pledge,
hypothecate or sublet this lease or any of its right herein in whole or in part without the prior
written consent of Lessor. The consent of Lessor to any assignment, moxtgaging, pledging,
hypothecating or subletting shall not constitute a waiver of the necessity for such consent to any
subsequent assignment, mortgage, pledging, hypothecating or subletting. If.this lease is assigned, or
if the premises ox any part thereof are sublet ox occupied by anybody other than Lessee, LessoY may
collect rent from the assignee, sub-tenant or occupant, and apply the net amount collected to the
rent hexein requited, but no such occupancy or collection shall be deemed a waiver 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 paxt of Lessee herein contained. If at any tune
during the texm of this lease, any part oY all of the corporate shares of Lessee shall be transferxed by
sale, assignment, bequest, inheYitance, operarion of law oY other disposition so as to Yesult in a
change in the pxesent effective voting control of Lessee by the pexson, persons or entity which
presently is the ultimate owner of a majoYity of such corpoYate shates on the date of this leases,
Lessee shall promptly notify Lessor in writing of such change. If the new owner is a private or
public corporation, Lessox shall prompdy advise Lessee if it has any objecrions thereto and the
xeasons thexefore. LessoY may terminate this lease any time after such change in conttol by giving
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Lessee thirry (30) days priox written notice of such termination. Lessee shall not permit any business
to be operated in or from the pxemises by any concessionaire or Licensee.
5. Lessee agYees that it will promptly pay all ad valoYem Yeal property taxes and personal
property taxes that may be assessed and filed against the demised propexty ox the leasehold cxeated
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, inclucling, but not limited to, occupational license, beverage license, and
permits relating the opexarion of the business conducted on the demised premises, which are
Yequixed by law. Nothing herein shall obligate Lessee to pay or to reimburse Lessor for the payment
of assessments for permanent unprovements, including but not limited to sidewalks, seweYS, and
streets, that would benefit the demised premises.
6. The Lessee heYeby covenants and agrees to pay all bills for electrical service to the
premises when due, which service shall be provided by Progress Energy CorpoYarion, ar the City of
Clearwater, in accordance with the company's rates and billing. 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 operate the business authorized to be
conducted on the pxemises during the term of this lease, except for any period of time involved in
natural disasters, including governmental oYders or xequirements such as evacuarion for hurricane
preparations, and any time necessary to repair or replace any damage caused to the demised
premises by as natural disaster.
8. The Lessee assumes full responsibility for and covenants and agrees to save harmless and
indemnify the Lessor from any and all liability for damage to property and injury to persons resulting
fxom or in connecrion with the Lessee's use and occupancy of the demised premises under this lease.
In addition, 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.
9. If at any time during the term of this lease, the building ox premises or any part, system ox
component hereof (hereinafter, the "demised premises") shall be damaged or destroyed to the extent
that the Lessee cannot operate the business authorized to be conducted thereon, and the Lessor
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deterinines that said demised premises can be xestored by making appYOpriate xepairs, the monthly
Yent as provided for in paragraph 2a above shall abate until the demised premises have been Yestoxed
or until commencement of business by the Lessee, whichever is sooner.
If the demised pYemises shall be totally destroyed or so damaged as to render it pracrically useless
during the term of this lease, then and in that event, the Lessee or 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 oY destruction as enumerated above, and except as otherwise specifically
provided under this agxeement, both paYties waive any and all rights of recovery against the other
party for any ditect ox indirect loss occurring to the demised premises or as a result of damage or
destrucrion of the demised premises.
In the case of demolition and Yeconstruction of the Marina or majoY renovation by construcrion,
the Lessee shall be given the fiYSt opportunity 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 oY 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 afteY receipt of wxitten notice of such default by Lessee from Lessox,
provided that if such default reasonably Yequires more than fifteen (15) days to cure, theYe shall be
no Event oY Default if Lessee has commenced curative action with the fifteen (15) day period and
diligently 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 petition in bankruptcy or insolvency or for reorganizarion or
arrangement, or for the appointment of a receiver or trustee of all or a poxtion of Lessee's pxoperty,
or if Lessee makes an assignment foY the benefit of cYeditoYS or if there is an assignment by
opeYation of law, o� if Lessee makes application to Lessee's creditoYS 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; property or the premises aYe taken or occupied or attempted to be taken
or occupied by someone othex than Lessee; however, in the event of execution, seizure or
attachment, Lessee may post a bond satisfactory to Lessor which bond shall stay the default
resulting from any execution, levy, seizure or attachment for a period of 120 days. Failure to
remove the levy, seizure or attachment within the 120 day period shall consritute an Event ox
Default, and the bond posted shall be forfeited; or
d. Lessee's vacating or abandoning the premises; then Lessor, at its option, may
exercise any one or moYe of the following Yemedies which shall be cumulative;
(1) Terminate Lessee's right to possession under this lease and Ye-entex and
take possession of the premises, and re-let or attempt to re-let the premises on behalf of Lessee;
however, such re-letting or attempt to re-let shall only involve a prospecrive tenant capable of
provicling compaYable ar betteY type service, at such rent and under such terms and condirions 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
xemain liable for all rents and addirional rents due under this lease and for all damages suffexed by
Lessor because of Lessee's bYeach of any of the covenants of this lease. Said damages shall include,
but not be lixnited to, charges for removal and storage of Lessee's property, remodeling and repairs,
leasing, comniissions and legal fees. In addition to its xemedies hexeunder, Lessor may acceleYate all
f�ed Yentals due under this lease, 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,
LessoY shall Yeceive only the present value of such accelerated rent. At any time during repossession
and re-letting pursuant to this subsecrion, Lessor may b�� delivering written norice to Lessee, elect to
exexcise its option under the following subparagraph to accept a surrender of the premises,
terminate and cancel this lease, and xetake possession and occupancy of the premise on behalf of
Lessor.
(2) DeclaYe this lease to be terxninated, whereupon the term hereby granted
and all xights, ritle and intexest of Lessee in the premises shall end and Lessor may re-enter upon and
take possession of the premises. Such terminarion shall be �vithout prejudice to Lessor's right to
collect from Lessee any rental or addirional rental which has accrued priox to such teYmination
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together with all damages, including, but not limited to, the damages specified in subpaYagraph (1) of
this paxagraph which axe suffexed by LessoY because of Lessee's bYeach of any covenant undcr this
lease.
(3) Exercise any and all rights and privileges that Lessor may have under the
laws of the State of Floxida and the United States of America.
11. The Lessee heYeby covenants and agrees to keep and maintain the pYemises and f�tures
located herein in good condition and repair during the term of this lease and any extension hereof,
and to return the premises to the Lessor upon the expiYation of the term hereof in as good condition
as they now are, oxdinary wear and teaY and damage by the elements only excepted. No alteYarion or
improvements may be made to the premises without the written consent of the Lessor. Any and all
f�tures attached to the premises shall Yevert absolutely and become the pYOperty of the Lessor upon
the expiration of the teYm hereof; provided, however, that the Lessor at its option may Yequire the
Lessee to remove all fixtures, partitions, racks, shelves ox other impxovements from the premises
upon the expixarion of the term of the lease at the cost of the Lessee. Any damage to the premises
occasioned by said Yemoval shall be repaired at the Lessee's expense.
12. The Lessee, at its own cost, may place only windo�v, wall or canopy signs on the
demised pxemises, pxovided said signs are approved as to coloY, style and letter size by the Marine &
Aviation Director or his designee of the I,essor, and additionally conform to the sign ordinan�e flf
Lessor presendy in foYCe or as may be amended from time to time during the term of the lease. No
other signs shall be placed oY maintained by the Lessee on the premises. Any nonconforming sign
now on the premises shall be removed by the Lessee within 30 days of approval of the lease. The
Lessee shall, upon expiration oY teYminarion of the lease, completely Yemove any and all signs that
have been placed on the leased premises by the Lessee.
13. If at any time during the teYm 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. Fox any mechanic's lien which may be asserted as a claim against the leased
property; and
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b. For the faithful performance of the covenants contained in paragraph 11 above;
and �
c. To obtain fYOm the contractor a good and sufficient performance 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 premises, guaranteeing that the improvements will be completed and
that subcontractors, laboxers and materialmen will be paid in accordance with the contract foY the
ixnprovements.
14. In the event of the acquisition of this property or any portion theYeof by exeYCise of
proper authority, by any governmental agency other than Lessor, whether by eminent domain or
otherwise, it is understood and agreed that notificarion of the institution of such acrion shall be
prompdy given Lessee, so the Lessee may intervene in such acrion as a party. Lessee agrees to
comply with the Yesults of any such actions, and agrees to release and hold the lessor haYmless fYOm
any damages resulting thereof.
15. Lessor covenants and agrees that upon payment by Lessee of the rents herein provided,
and upon observance and performance by Lessee of all the covenants, terms and conditions
Yequired of the Lessee by the lease, Lessee shall peaceably and quiedy hold and enjoy the leased
premises for the term of the lease without hindrance or interruprion by Lessor.
16. Notices hereunder shall be given only by� registered or certified mail, and shall be
deemed given when the letter is deposited in the mail, postage and other charges prepaid, addressed
to the party for whom inte�lded at such paYty's address first herein specified or to such other address
as may be substituted therefor by pYOper norice hereunder. Lessor's notices shall be dixected in care
of its Law Departxnent at the above-cited address.
17. As required by Section 404.056(8), Florida Statutes, the Lessee shall take notice of the
following:
RADON GAS: Radon is a naturally occurring radioacrive gas that, when it
has accumulated in a building in sufficient quantiries, 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
regarcling Yadon and Yadon testing may be obtained from your county public health
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umt.
18. The undersigned shall personally guarantee to Lessor, the timely performance of all
covenants and pxovisions of this Lease Agreement, including but not lunited to the timely payment
of all xent due hereundeY.
19. This lease agreement constitutes the entire contract bet�veen Lessor and Lessee
concerning the leasing of the premises and consideration theYeof.
20. In the event eitheY paYty seeks to enfoYCe this agxeement or interpret any provision
thereof by law, or through attorneys at law, each party agrees to pay for its own attorneys fees and
costs, and that jurisdiction shall be in a couxt of competent jurisdiction in Pinellas County, Florida.
IN WITNESS WHEREOF, the paYties hereto have set theiY hands and seals this � day
• �,� � � 11
CounteYSigned:
CITY OF CLEARWATER, FLORIDA
- By: , �. ��L,-�-�-�'
Frank Hibbard William B. Horne, I]�'
Mayor City Manager
i ttest:
Approved as to form:
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Brya D. Ruff
Assistant City Attorney
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Cy �a E. Goudeau
City Clerk
BY- L�,�,..--el ���� ��
Page $
Dr. David Petrik, DDS
Exhibit "A"
LEGAL DESCRIPTION
Room/s 20, 21, 22, 23, 24 and 25, Clearwater Marina Building, located on Lots 11 and 12 of City
Park Subdivision, accoYding to the map or plat theYeof as recorded in Plat Book 23, page 37 of the
public Yecords of Pinellas County, Florida.
Exhibit "B"
INSURANCE REQUIREMENTS
1. Liability Insurance. Lessee shall maintain:
a. Comprehensive General Liability insurance to include premises/operatox liability and
electxical liability in an amount not less than $500,000 combined single limit Bodily Injury
Liability and Property Damage Liability.
b. Comprehensive Plate Glass Insurance on a replacement cost basis covering loss or
damage by any means, except by fire, oY war, whether declared or not, to the plate glass
windows in the demised premises.
c. Worker's Compensation InsuYance applicable to its employees for statutory covexage
limits in compliance with Florida laws.
2. Additional Insurance. The City is to be specifically included as an addirional insured on all
liability coverage descYibed above.
3. Notice of Cancellation or Restriction - All policies of insurance must be endorsed to pYOVide the
City with thirty days notice of cancellation or restricrion.
4. Cerrified Copies of Policies/Cerrificate of Insurance. Upon specific written xequest of the City,
the Lessee shall pYOVide the Lessor with cerrified copies of all policies of insurance as required
above. In the absence of a specific written request, the Lessee shall pYOVide the Lessor with
CeYtificates 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 & Aviation Director or his designee. The Lessee shall pxovide the first Cerrificate of
Insurance required by the lease to the Marine & Aviation Directox or his designee befoYe occupancy
of the demised premises.
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Exhibit "C"
GUARANTY OF PAYMENT OF RENT UNDER LEASE AGREEMENT
Guaranty is made this day of , ZQQ.Ci, by David Petrik, City of Clearwater,
County of Pinellas, State of Florida, hexein referxed to as "Personal Guarantars", being the owners
respecrively, of Marina Dental & Denture Clinic, P.A., heYein referxed to as "Obligor", to CIT'Y OF
CLEARWATER, C/O City Attorney, P.O. Box 4748, Clearwater, Florida 34618-4748, herein
referred to as "Obligee".
RECITALS
1. Obligee has leased pxemises at 25 Causeway Blvd. to Obligor, whose business addxess is 25
Causeway Blvd., City of Clearwater, County of Pinellas, State of Florida, fox use by ObligoY in
conducting its business of a dental and denture clinic.
2. The lease is condirioned upon guarantors giving security for payment of rent hereundeY in the
form of a personal guaYanty.
SECTION ONE
STATEMENT OF GUARANTY
Guarantors guarantee payment of rent under the attached lease agreement pursuant to the
terms thereof. If obligoY defaults in the payment of any installment of rent, guarantors shall pay the
amount of such installment within 30 days after receipt of norice of default and demand for
payment Guarantor's liability hereunder shall n�t be affected by reason of any extension of time
for payment of any installment gxanted by obligee to obligor.
SECTION T'WO
DURATION
This guaranty shall not be revoked duYing the remaining term of the lease. Thereafter, if the
lease is xenewed on the same terms, this guaranty shall remain in force until receipt by obligee of
written notice of revocation from guarantoxs, or until terminated pursuant to Section three hereof.
Renewal of the lease on diffeYent terms shall, at the option of the guarantors, operate to terininate
this gua�anty as of the end of the current lease period.
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SECTION THREE
LIMITATION OF LIABILITY
The maxirnum amount xecoverable by obligee fxom guarantors pursuant to this guarantee is
$53,282.16, which amount is equal to the total rent due during the xemaining term of the lease. If
the aggregate of payments made by guarantoxs hexeunder reaches the above-mentioned amount, this
guaranty shall teYminate ixnmediately.
SECTION FOUR
WANER OF NOTICE OF ACCEPTANCE
Notice of acceptance of this guaxanty is expressly waived.
I WI NESS WHEREOF, guarantors have executed this guaranty at
O the day and year first above written.
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���G�
Guarantor
GuaYantor