LEASE AGREEMENT (3)LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this of 0-6,11-410, 2015, by and
between the CITY OF CLEARWATER, FLORIDA, a municipal corporation, hereinafter referred
to as "Lessor ", and Clearwater Angler, L.L.C., 25 Causeway Boulevard, Bait House, 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."
THE PARTIES HERETO HEREBY COVENANT AND AGREE AS FOLLOWS:
1. This lease shall be for a three (3) year lease term, with the option to renew for an
additional one (1) year term beginning October 1, 2015, and ending either September 30, 2018 or
2019 (if the option 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 addition, Lessor may terminate this lease if the State of Florida
or any of its agencies or political subdivisions thereof acquires the demised property or any portion
thereof for a public purpose. This right of termination is in addition to the right of termination 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 $12,353.04 plus tax for the first year of this lease, which
shall be paid in equal monthly payments of $1,029.42 plus tax through September 30, 2016. If
additional square footage is constructed or occupied, it shall be paid monthly at a rate determined by
market rate survey per square foot. 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. In
addition to the monthly rental, the Lessee shall, at the end of each quarter (March, June, September
& December), shall pay additional amounts equal to eight (8) percent of monthly purchases of all
alcohol beverages throughout the term of this lease. This payment will be made along with the
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Lessee's payment of the monthly rent. The Lessee will provide the Lessor within 15 days after the
end of each quarter during the term of this lease a statement showing the amount of alcohol
beverage purchases accounted separately during the quarterly period. 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. Rental rates increase by 3% over the previous lease year rate on October 1st of
each subsequent year of the lease.
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 maximum rate allowable by law,
plus a late charge of Ten Dollars ($10.00) to cover Lessor's expenses in collecting such delinquency.
c. In addition to the first month's rent of $1,029.42 plus tax, which is due and
payable on the first day of the lease, the Lessee shall pay $50.77 in advance as a deposit including tax
to secure the faithful performance of the Lessee's obligations hereunder. The Lessor may deduct
from the deposit any amount, which might become due from the Lessee to 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.
d. Lessee agrees to pay any lease for submerged lands that may result from Lessee's
use of premises.
e. If Lessor defaults in the payment of any installment of rent, Justin Pfaelzer, as
Guarantors 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 for the purpose of conducting therein the sale
of live and frozen bait and ice, food, on- premises consumption of beer and wine with package sales,
the sale, rental and repair of sport fishing equipment including but not limited to heavy rods and
reels, specialized bait rigs, deep sea sport fishing equipment and other similar equipment. Lessee is
authorized to rent boats in the slips located on the North side of the bait house pier. These rental
boats are to be used strictly for fishing, no other use is authorized. The lessee is also authorized to
conduct charter activities subject to and limited by docking space to be allocated and assigned by the
Marine & Aviation Director. Charter activities shall be limited to the inland water of Clearwater
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Harbor, Clearwater Bay and surrounding coastal waters, unless specifically exempted from such
restriction by the Marine & Aviation Director. The sale of other associated commodities such as
nautical gifts and associated sundries may be permitted; however any use of the premises beyond the
sale of bait, ice, food, on- premises consumption of beer and wine with package sales, and the sport
fishing equipment outlined herein will require the prior written approval of Lessor, which approval
shall not be unreasonably withheld.
a. The use of the premises to provide information, reservation or booking service for
other commercial sports fishing enterprise operated from the marina is expressly prohibited. Lessee
may, at her option, provide facilities for the mooring of customer's boats on the North and East
sides of the above dock. No mooring facilities may be provided on the South side of the dock.
b. No boat of any kind except Lessee's charter, rental fishing boats and non -
passenger carrying bait boats may be docked overnight without the prior written consent of the
Lessor.
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 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, mortgaging, 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 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 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 part of Lessee herein contained. If at any time
during the term of this lease, any part or all of the corporate shares of Lessee shall be transferred by
sale, assignment, bequest, inheritance, operation of law or other disposition so as to result in a
change in the present effective voting control of Lessee by the person, persons or entity which
presently is the ultimate owner of a majority of such corporate shares 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, Lessor shall promptly advise Lessee if it has any objections thereto and the
reasons therefore. Lessor may terminate this lease any time after such change in control by giving
Lessee thirty (30) days prior written notice of such termination. Lessee shall not permit any business
to be operated in or from the premises by any concessionaire or Licensee.
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5. Lessee agrees that it will promptly pay all ad valorem real property taxes and personal
property taxes that may be assessed and filed against the demised property or the leasehold created
by this agreement, or both, during the term of this lease. Lessee further agrees that it will pay any
state sales tax due on the rental payment made by the Lessee to the Lessor and that it will pay all
other taxes and fees, including, but not limited to, occupational license, beverage license, and
permits relating the operation of the business conducted on the demised premises, which are
required by law. Nothing herein shall obligate Lessee to pay or to reimburse Lessor for the payment
of assessments for permanent improvements, including but not limited to sidewalks, sewers, and
streets, that would benefit the demised premises.
6. The Lessee hereby covenants and agrees to pay all bills for electrical service and water
usage to the premises when due, which electrical service shall be provided by Progress Energy
Corporation, 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. At no expense to the Lessee,
the Lessor agrees 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 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 preparations, and any time necessary to repair or
replace any damage caused to the demised premises by as natural disaster.
8. The Lessee agrees to indemnify and hold harmless Lessor from and against any and all
claims, demands, actions, judgments, injuries, damages, costs and expenses including attorney's fees
resulting from or in connection with Lessee's or Lessee's employees, agents, and /or invitees use and
occupation of the leases premises. 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. 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.
9. If at any time during the term of this lease, the building or premises or any part, system or
component hereof (hereinafter, the "demised premises ") shall be damaged or destroyed to the extent
that the Lessee cannot operate the business authorized to be conducted thereon, and the Lessor
determines that said demised premises can be restored by making appropriate repairs, the monthly
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rent as provided for in paragraph 2a above shall abate until the demised premises have been restored
or until commencement of business by the Lessee, whichever is sooner.
If the demised premises 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 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 or destruction 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 for any direct or indirect loss occurring to the demised premises or as a result of damage or
destruction of the demised premises.
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,
provided 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
diligently prosecutes such action to completion;
c. There shall be filed by or 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 reorganization or
arrangement, or for the appointment of a receiver or trustee of all or a portion of Lessee's property,
or if Lessee makes an assignment for the benefit of creditors or if there is an assignment by
operation of law, or if Lessee makes application to Lessee's creditors to settle or compound or
extend the time for payment of Lessee's obligations, or if execution, seizure or attachment shall be
levied upon any of Lessee's; property or the premises are taken or occupied or attempted to be taken
or occupied by someone other than Lessee; however, in the event of execution, seizure or
attachment, Lessee may post a bond 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 constitute an Event or Default, and
the bond posted shall be forfeited; or
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d. Lessee's vacating or abandoning the premises; then 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 lease and re -enter 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 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 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 lease and for all damages suffered by
Lessor because of Lessee's breach of any of the covenants of this lease. 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. 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 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 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, 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 damages specified in subparagraph (1) of
this paragraph which are suffered by Lessor because of Lessee's breach of any covenant under this
lease.
(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 maintain the premises and fixtures
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 expiration of the term hereof in as good condition
as they now are, ordinary wear and tear and damage by the elements only excepted. No alteration or
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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 require the
Lessee to remove all fixtures, partitions, racks, shelves or other improvements from the premises
upon the expiration of the term of the lease at the cost of the Lessee. Any damage to the premises
occasioned by said removal shall be repaired at the Lessee's expense.
12. The Lessee, at its own cost, may place only window, wall or canopy signs on the
demised premises, 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
shall 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.
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 claim against the leased
property; and
b. For the faithful performance of the covenants contained in paragraph 11 above;
and
c. To obtain from the 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, laborers and materialmen will be paid in accordance with the contract for the
improvements.
14. In the event of the acquisition of this property or any portion thereof by exercise of
proper authority, by any governmental agency other than Lessor, whether by eminent domain or
otherwise, it is understood and agreed that notification of the institution of such action shall be
promptly given Lessee, so the Lessee may intervene in such action as a party. Lessee agrees to
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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 herein provided,
and upon observance and performance 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
premises for the term of the lease without hindrance or interruption 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 intended at such party's address first herein specified or to such other address
as may be substituted by proper notice hereunder. Lessor's notices shall be directed in care of its
Law Department 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 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 regarding radon and radon testing may be obtained from your
county public health unit.
18. The undersigned shall personally guarantee to Lessor the timely performance of all
covenants and provisions of this Lease Agreement, including, but not limited to the timely payment
of all rent due hereunder.
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.
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IN WITNESS WHEREOF, the parties hereto have set their hands and seals this 671 f'd day
of (57, 2015.
Camilo Soto
Assistant City Attorney
CITY OF CLEARWATER, FLORIDA
William B. Horne, II
City Manager
Attest: A. UYECa� 0414
By:
Rosemarie Call
City Clerk
Clef " ater • r er, LLC
Justin Pfaelzer, Manager
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Exhibit "A"
LEGAL DESCRIPTION
Bait House, Slip Number 153, including the 94' by 30' dock abutting the north side of Slip
Number 152, located on Lot 10 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.
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EXHIBIT `B"
INSURANCE REQUIREMENTS. The Lessee shall, at its own cost and expense, acquire and
maintain during the term with the City, sufficient insurance to adequately protect the respective
interest of the parties. Coverage shall be obtained with a carrier having an AM Best Rating of A -VII
or better. In addition, the City has the right to review the Lessee's deductible or self - insured
retention and to require that it be reduced or eliminated.
Specifically the Lessee must carry the following minimum types and amounts of insurance on an
occurrence basis or in the case of coverage that cannot be obtained on an occurrence basis. then
coverage can be obtained on a claims -made basis with a minimum three (3) year tail following the
termination or expiration of this Agreement:
a. Commercial General Liability Insurance coverage, including but not limited to, premises
operations, products /completed operations, products liability, contractual liability, advertising injury,
personal injury, death, and property damage in the minimum amount of $1,000,000 (one million
dollars) per occurrence and $2,000,000 (two million dollars) general aggregate.
b. Commercial Automobile Liability Insurance coverage for any owned, non - owned, hired
or borrowed automobile is required in the minimum amount of $1,000,000 (one million dollars) per
occurrence and in the aggregate.
c. Unless waived by the State of Florida, and proof of waiver is provided to the City, statutory
Workers' Compensation Insurance coverage in accordance with the laws of the State of Florida,
and Employer's Liability Insurance in the minimum amount of $100,000 (one hundred thousand
dollars) each employee each accident, $100,000 (one hundred thousand dollars) each employee by
disease and $500,000 (five hundred thousand dollars) aggregate by disease with benefits afforded
under the laws of the State of Florida. Coverage should include Voluntary Compensation, Jones
Act, and U.S. Longshoremen's and Harbor Worker's Act coverage where applicable. Coverage must
be applicable to employees, Lessees, sub - lessees, and volunteers, if any.
d. Legal Liquor Liability coverage with minimum coverage of $500,000 per occurrence if the
Lessee is selling or providing alcoholic beverages during operations.
The above insurance limits may be achieved by a combination of primary and umbrella /excess
liability policies.
Other Insurance Provisions.
a. Prior to the execution of this Agreement, and then annually upon the anniversary date(s) of
the insurance policy's renewal date(s) for as long as this Agreement remains in effect, the Lessee will
furnish the City with a Certificate of Insurance(s) (using appropriate ACORD certificate, SIGNED
by the Issuer, and with applicable endorsements) evidencing all of the coverage set forth above and
naming the City as an "Additional Insured" on the Commercial General Liability. and the
Commercial Automobile Liability Insurance policies. In addition when requested in writing from
the City, Lessee will provide the City with certified copies of all applicable policies. The address
where such certificates and certified policies shall be sent or delivered is as follows:
City of Clearwater
Attn: Marine and Aviation Department
25 Causeway Blvd.
Clearwater, FL 33767
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b. Lessee shall provide thirty (30) days written notice of any cancellation, non - renewal,
termination, material change or reduction in coverage.
c. Lessee's insurance as outlined above shall be primary and non - contributory coverage for
Lessee's negligence.
d. Lessee reserves the right to appoint legal counsel to provide for the Lessee's defense, for any
and all claims that may arise related to Agreement, work performed under this Agreement, or to
Lessee's design, equipment, or service. Lessee agrees that the City shall not be liable to reimburse
Lessee for any legal fees, costs, or expenses as a result of Lessee providing its defense as
contemplated herein.
The stipulated limits of coverage above shall not be construed as a limitation of any
potential liability to the City, and failure to request evidence of this insurance shall not be
construed as a waiver of Lessee's obligation to provide the insurance coverage specified.
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Exhibit "C"
GUARANTY OF PAYMENT OF RENT UNDER LEASE AGREEMENT
Guaranty is made this / of eae<2015 by Justin Pfaelzer on behalf of the Clearwater
Angler, L.L.C., City of Clearwater, County of Pinellas, State of Florida, herein referred to as
"Personal Guarantor" of the Lessee or also referred to as "Obligor" to the CITY OF
CLEARWATER, C/O CITY ATTORNEY, P.O. BOX 4748, CLEARWA'1ER, 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 a bait house.
2. The lease is conditioned upon guarantors giving security for payment of rent thereunder in
the form of a personal guaranty.
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.
SECTION TWO
DURATION
This guaranty shall not be revoked during the three year term of the lease. Thereafter, if the
lease is renewed on the same terms, this guaranty shall remain in 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 terminate
this guaranty as of the end of the three year period.
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SECTION THREE
LIMITATION OF LIABILITY
The maximum amount recoverable by obligee from guarantors pursuant to this guarantee is
$12,353.04 plus tax, which amount is equal to the total rent due during the first lease year of the
lease. If the aggregate of payments made by guarantors hereunder reaches the above - mentioned
amount, this guaranty shall terminate immediately.
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.
Guara�,r — Justine' faelzer on behalf of
Clea •, ater Angler, L.L.C.
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