CLEARWATER BEACH MARINA BUILDING LEASE AGREEMENTCLEARWATER BEACH MARINA BUILDING LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into this 1 0 of Ota)lbel, 2024, by and
between the CITY OF CLEARWATER, FLORIDA, a municipal corporation, hereinafter referred to
as "Lessor", and, Thomas C. Wolkowsky, Patricia A. Wolkowsky and Olivia O. Wolkowsky, d/b/a
Marina Beach Shoppe, Suite 6, 25 Causeway Boulevard, Clearwater, Florida 33767, hereinafter referred
to as "Lessee."
WITNESETH:
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 (of this triple net styled lease), 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 one (1) three (3) year term, with the option to renew for an additional
two (2) year term, beginning October 1, 2024, and ending September 30, 2027 or 2029 (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 acquire 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 15 of this
Agreement.
2. The Lessee hereby covenants and agrees to pay rental thereof as follows based in part on
the Market Rent Study by Walter Duke + Partners, dated May 31, 2024. The Lessor and Lessee
acknowledge that the Current Market Rent for Ground Floor Retail Space is $45.00 per square foot
(ft2). Lessee's current lease, with an expiration date of September 30, 2024, ends with a rental rate of
$37.14 ft2. Based on the market study, site considerations of Suite 9, and in consideration of the
anticipated marina redesign project, Lessor and Lessee agree that a new lease rate of $38.25 per ft2 is
appropriate. However, once the aforementioned project is completed, a new lease rate of $45.00 per
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ft2, plus any applicable annual increase (i.e. if construction is completed October 1, 2026, the lease rate
will then be $47.74 per ft2: $45.00 per ft2 plus two (2) 3% compounded annual increases) shall apply.
Consequently, Lessee covenants and agrees:
a. To pay the total sum of $34,042.56 plus tax for the first year of this lease, which
shall be paid in equal monthly payments of $2,836.88 plus tax through September 30, 2025. 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. Rental rates increase by 3% over the previous lease year
rate on October 1' 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 rate of fourteen (14%) percent per
month from date due until paid, 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 $2,836.88 plus tax, which is due and payable
on the first day of the lease, the Lessee shall pay an additional deposit of $389.38 to secure the faithful
performance of the Lessee's obligations hereunder. The Lessor may deduct from the deposit, already
in City possession, any amount that might become due from the Lessee to the Lessor for damage to
the premises or for any reason or cause whatsoever except rent. At the end of this lease, the deposit
amount or the balance thereof, if any, shall be credited to Lessee's last monthly rental payment.
d. If Lessor defaults in the payment of any installment of rent, Thomas C. Wolkowsky,
Patricia A. Wolkowsky and Olivia O. Wolkowsky, 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 thirty (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 business
of a gift shop.
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 arc sublet or occupied by anybody other than Lessee, Lessor may collect rent from the
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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.
5. TAXES: 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, and permits relating to 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. UTILITIES: The Lessee hereby covenants and agrees to pay all bills for electrical service
to the premises when due, to Duke Energy Corporation or its successor. At no expense to the Lessee,
the Lessor agrees to furnish the following; a refuse disposal location and container located outside the
demised premises for the use of the Lessee, and the use of the shared common areas in the marina
building without common area maintenance (CAM) costs.
7. The Lessee further covenants and agrees to operate the business authorized to be
conducted on the premises during the term of this lease, except 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
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by as natural disaster. Lessee shall notify Lessor of any time office is closed for vacation.
8. INDEMNIFICATION/LIABILITY: To the fullest extent permitted by law, Lessee
agrees to defend, indemnify, and hold the City, its officers, agents, and employees, harmless from and
against any and all liabilities, demands, claims, suits, losses, damages, causes of action, fines or
judgments, including costs, attorneys', witnesses', and expert witnesses' fees, and expenses incident
thereto, relating to, arising out of, or resulting from: (i) the services provided by Lessee personnel
under this Agreement; (ii) any negligent acts, errors, mistakes or omissions by Lessee or Lessee
personnel; and (iii) Lessee or Lessee personnel's failure to comply with or fulfill the obligations
established by this Agreement.
a. Lessee will update the City during the course of the litigation to timely notify the
City of any issues that may involve the independent negligence of the City that is not covered by this
indemnification.
b. The City assumes no liability for actions of Lessee and will not indemnify or hold
Lessee or any third party harmless for claims based on this Agreement or use of Lessee -provided
supplies or services.
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
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.
In the case of demolition and reconstruction of the Marina or major renovation by construction,
the Lessee shall be given the first opportunity to bid for similar space, provided that space for Lessee's
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type of business is allocated therein.
10. Except as otherwise provided herein, upon the happening of any one or more of the
following events ("Events of Default"):
a. Lessee's default in the payment of any rental or other sums due for a period of five
(5) days after the due date;
b. Lessee's continued default with respect to any other covenant of this lease for a
period of fifteen (15) days after receipt of written notice of such default by Lessee from Lessor,
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 30 days. Failure to remove the levy, seizure or attachment within
the 30 -day period shall constitute an Event or 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 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,
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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. MAINTENANCE: 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. Lessee further acknowledges responsibility for HVAC maintenance and repairs and
replacement of a damaged system if caused by Lessees negligence. Lessee is encouraged to obtain an
annual maintenance contract with a qualified HVAC company. No alteration or 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. PARKING: During the Term of this Lease and any Extension Term(s), this Lease does
not allocate any exclusive or dedicated parking spaces within the beach marina parking lot. Lessee's
parking arrangements must be handled through the Beach Marina Parking Office located on site.
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13. 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 Marine & Aviation
Director 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.
14. 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 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.
15. 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 prompdy given
Lessee, so the Lessee may intervene in such action as a party. Lessee agrees to comply with the results
of any such actions and agrees to release and hold the Lessor harmless from any damages resulting
thereof.
16. 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.
17. Notices hereunder shall be given by registered or certified mail, or in person, and shall be
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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 therefore by proper notice hereunder. Lessor's notices shall be directed in care
of its Legal Department.
18. As required by Section 404.056(6), 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.
19. 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.
20. This lease agreement constitutes the entire contract between Lessor and Lessee concerning
the leasing of the premises and consideration thereof.
21. 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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)per
IN WITTN�NEESS WHEREOF, the parties hereto have set their hands and seals this day
of ''. 24.
Countersigned:
CITY OF CLEARWATER, FLORIDA
Approved as to form:
Melissa Isabel
Senior Assistant City Attorney
By:
Prier
City Manager
Attest:
nak
Rosemarie Call
City Clerk
2024 Marina Beach Shoppe Lease Renewal
By:
Thomas C. Wolkowsky
Bv:
Via" ' d,
Patricia A. Wolkowsky
By:
Olivia O. Wolkowsky
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Exhibit "A"
LEGAL DESCRIPTION
That certain 'portion of the first floor (Suite 6) of the Clearwater Beach Marina Building, located on
Lots 11 and 12 of City Park Subdivision, according to the map or plat thereof as recorded in Plat Book
23, page 37 of the public records of Pinellas County, Florida. The rentable space in Suite 6 is
approximately 890 ft2 MOL.
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Exhibit "B"
INSURANCE REQUIREMENTS
The Lessee shall, at its own cost and expense, acquire and maintain (and cause any subcontractors,
representatives, or agents to 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,
bodily injury, personal injury, death, property damage, advertising liability, premises
operations, products/completed operations, severability of interest, and contractual
liability 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 for in state travel is required in the minimum
amount of $1,000,000 (one million dollars) combined single limit. For motor carriers
traveling interstate the limits are $1.5 million for 15 passengers or less or $5 million
for 16 passengers or more.
c. Unless waived by the State of Florida and proof of waiver is provided to the City,
Worker's Compensation (WC) & Employer's Liability Insurance coverage for
all employees engaged under the Agreement, Worker's Compensation as required by
Florida law and Employer's Liability with minimum limits of
(a) $500,000 bodily injury each employee and each accident, $500,000 bodily injury by
disease each employee, and $500,000 bodily injury by disease policy limit for quotes
or agreements valued at $50.000 and under or
(b) $]million bodily injury each employee and each accident, $]million bodily injury
by disease each employee, and $]million bodily injury by disease policy limit for formal
solicitation and agreements exceeding $50,000.
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, contractors, subcontractors, and volunteers, if any.
d. Legal Liquor Liability coverage with minimum coverage of $1,000,000 per
occurrence and $2,000,000 general aggregate if the Lessee is selling or providing
alcoholic beverages during operations.
WAIVER OF SUBROGATION — With regard to any policy of insurance that would pay third party
losses, Firm hereby grants City a waiver of any right to subrogation which any insurer of Firm may
acquire against the City by virtue of the payment of any loss under such insurance. Firm agrees to
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obtain any endorsement that may be necessary to affect such waiver, but this provision shall apply to
such policies regardless.
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." 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 & Aviation Department
25 Causeway Blvd
Clearwater, FL 33767
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 equipment, or service. Lessee agrees that the City shall not be
liable to reimburse Lessee for any legal fees or costs 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 11=)/ day o , 2024, by Thomas C. Wolkowsky,
Patricia A. Wolkowsky and Olivia O. Wolkowsky, herein referred to as Personal Guarantor of the
Lessee or also referred to as "Obligors" to CITY OF CLEARWATER, C/0 City Attorney, P.O. Box
4748, Clearwater, Florida 33758, herein referred to as "Obligee".
RECITALS
1. Obligee has leased premises at 25 Causeway Blvd. to Obligor, whose business address is 25
Causeway Blvd., Suite 6, City of Clearwater, County of Pinellas, State of Florida, for use by Obligor
in conducting its gift shop business.
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 this lease. Thereafter, if the
lease is renewed on the same terms, this guaranty shall remain in force until receipt by Obligee of
written notice of revocation from guarantors, or until terminated pursuant to Section Three hereof.
Renewal of the lease on different terms shall, at the option of the guarantors, operate to terminate this
guaranty as of the cnd of the three-year period.
SECTION TI-IREE
LIMITATION OF LIABILITY
The maximum amount recoverable by Obligee from guarantors pursuant to this guarantee is
$34,042.56, which amount is equal to the total rent due during the first year of the lease. If the
aggregate of payments made by guarantors hereunder reaches the above-mentioned amount, this
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guaranty shall terminate immediately.
SECTION FOUR
WAIVER OF NOTICE OF ACCEPTANCE
Notice of acceptance of this guaranty is expressly waived.
IN WITNESS WHEREOF, guarantors have executed this guaranty at Clearwater Municipal Marina
the day and year first above written.
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c.
Guarantor — Thomas C. Wolkowsky
I
Ad „Ai
Guarantor - Patricia A. Wolkowsky
Guarantor —.007- olkowsky