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SEBAST'I
HOME OF PELICAN ISLAND
CONCESSION LEASE TERMS AND CONDITIONS
Between the
CITY OF SEBASTIAN (City) and The Pelican Diner Inc. (LESSEE)
Section 0.0
0.01 Definitions:
A. The terms: LESSOR; Sebastian Municipal Golf Course (SMGC); City
of Sebastian; and City may be used interchangeably.
B. The terms: LESSEE; The Pelican Diner Inc. and Pelican Diner & 4
Wings Sports Bar.
C. The terms: Concession Lease; Concession Lease Agreement; Lease
Agreement; Lease; Agreement; and contract may be used
interchangeably.
D. CPI Index shall be values published by the U.S. Bureau of Labor
Statistics for all items in the South Urban Area, not seasonally
adjusted.
Section 1.0
1.01 Term: This Concession Lease Agreement. shall be for a term of ten (10)
years, with the option of one (1) ten (10) year extension. Terms of an option for a ten
(10) year Lease extension may be negotiated between the parties. LESSEE shall have
right of first refusal in negotiating a Concession Lease Agreement extension after the
initial ten (10) year term. LESSEE must notify the City Manager, or his/her designee, in
writing six (6) months before the expiration of the Concession Lease, of LESSEE'S
intent to exercise the option for the additional ten (10) year tern. The City, within its
sole discretion, may approve, or deny, the request.
Section 2.0
2.01 Sites: The Concession Lease is exclusive only to the Sebastian Municipal
Golf Course Clubhouse facility, to include the Restaurant/Bar (3,600 sq. ft.), Patio/Beer
Garden (912 sq. ft.), and Outbuilding/Storage (182 sq. ft.). The LESSEE and LESSOR
may mutually agree to add or delete the sites or square footage by formal addendum to
the Agreement, which shall include a pro rata adjustment to the leased space rental fee.
2.02 Acceptance of Premises: LESSEE accepts said facility in its present
condition without warranties, or representations of any kind, from the LESSOR as to its
suitability, or safety, for the intended use.
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Section 3.0
3.01 Cost of the Space: The LESSEE shall pay to the LESSOR a monthly
leased space rental fee of Thirty Thousand Dollars ($30,000)per year at a monthly rate of
Two Thousand Five Hundred Dollars ($2,500 per month). Such payment shall initially be
due on the first (1 st) day of October 2018, for the period of October 2018.
The monthly leased space rental fee shall be adjusted beginning with the payment
for October, after the fourth (4`h) year, sixth (61h) year, and eighth (8`h) year. Said
adjustment shall be calculated based on the percentage change in the CPI Index for the
previous twelve (12) months. Irrespective of this calculation, no reduction in the fee shall
be allowed and no increase shall result in the LESSEE being required to pay more than a
three percent (3%) increase for each adjustment.
3.02 Taxes and Special Assessments: The LESSEE shall be liable for the
prevailing State of Florida Sales/Use Tax on the LESSEE's sales under this Agreement
and any ad valorem taxes on personal property. No Sales/Use Tax is currently required
on the amounts payable to the LESSOR, based on Florida Statutes Chapter 212.031— Tax
on rental or license fee for use of real property, Section 10, as the space is a publicly
owned recreation facility. The LESSOR shall be responsible for any ad valorem taxes on
real property and special assessments for utility improvements or stormwater fees
imposed on the space. Any modification to current laws and regulations shall be resolved
by negotiations to adjust the concession lease fee by formal addendum to the Agreement.
3.03 Utility Charges: The LESSEE shall provide for water, sewer, electricity,
propane/CNG, phone, Cable TV, communication services, and any other utility charges
at its sole cost. The parties mutually understand that the water and sewer utility charges
will be based on a City installed water meter that will measure water flow to only the
restaurant and will be calculated monthly and paid to the LESSOR as a reimbursement.
The LESSOR shall be fully responsible for water and sewer charges attributable to the
restrooms.
3.04 Common Areas: The LESSOR shall continue to control and maintain the
property surrounding the Concession Sites, including the exterior of the structures,
drainage and parking areas.
3.05 Payment of Fees: The LESSEE shall make payments and submit all
reports required by the lease agreement to the:
Administrative Services Department
City of Sebastian
1225 Main Street
Sebastian, FL 32958
In the event the LESSEE fails to make payments as required to be paid under the
provisions of the Agreement by the date due, daily interest calculated based on the rate of
one and one-half percent (1 1/2%) per month shall accrue against the delinquent
payment(s) until same are paid. Implementation of this provision shall not preclude the
LESSOR from terminating the contract for default in the payment of rentals, fees, or
charges, or from enforcing any other provisions contained herein.
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Section 4.0
4.01 Advertisement & Signs: All advertising and signage, on and off site,
must be approved by the City of Sebastian Community Development Department.
4.02 Approvals: The LESSEE agrees that it will obtain prior written approval
from the LESSOR for any changes:
A. From originally approved specifications, signage, and graphics.
B. LESSEE plans requiring any structural modifications.
4.03 Public Contact of LESSEE's Employees: LESSEE's employees, in
contact with the public, shall perform their duties in an efficient and courteous manner.
All employees shall be sufficiently identified so as to be distinguishable as the LESSEE's
employees.
4.04 Hours of Operation: The minimum hours of operation are one-half (1/2)
hour before the first SMGC Tee Time until the close of the SMGC Pro Shop seven (7)
days a week. Any other hours outside of normal hours of operation for the SMGC, or
holiday closures, will be approved by the City Manager, or his/her designee. The City
Manager may require a change in days and hours of operation if such a change is
desirable to provide the best service to the public, necessary for maintenance, or for
safety reasons.
4.05 LESSEE/Restaurateur's Services:
A. The LESSEE shall control the conduct, demeanor, and appearance
of its officers, members, employees, agents, representatives, customers and patrons, and
upon objection to the City Manager, or his/her designee, concerning the conduct,
demeanor, or appearance of any such person, LESSEE shall immediately take all
necessary steps to correct the cause of such objection.
B. LESSEE shall take good care of the facilities, shall use the same in
a careful manner and shall, at its own cost and expense, keep and maintain the same in
constant good and substantial condition and repair, less normal wear -and -tear. Upon the
expiration of the Agreement, or its termination in any manner, the LESSEE shall deliver
the facilities to the LESSOR in the same or better at the commencement of the
agreement, loss by fire or other casualty and ordinary wear and tear being the only
exceptions.
C. LESSEE must operate and maintain a 'beverage cart' on days with
120+ golfers booked 24-hours in advance on the SMGC 'Tee Sheet.' The
aforementioned beverage cart must be provided by the LESSEE and be approved for use
by the City Manager, or his/her designee. The beverage cart may be stored in the SMGC
cart barn when not in use.
D. LESSEE must honor and support, with Restaurant/Bar services,
any SMGC sponsorship agreements, SMGC golf tournaments and events, City of
Sebastian events, and other special events.
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Section 5.0
5.01 Assignment, Subletting and Successors in Interest: LESSEE shall not
assign or subcontract the services to be provided under the Agreement to any other
person(s) or firm without first obtaining the LESSOR's written approval. It is
covenanted and agreed that all covenants, conditions, agreements and undertakings
contained in the Agreement shall extend to and be binding on the respective successors
and assignees accepted by the LESSOR.
Section 6.0
6.01 Sale of Alcoholic Beverages: LESSEE shall sell alcoholic beverages and
must be duly licensed to do so.
Section 7.0
7.01 Commencement of Operations: The LESSEE shall have access to the
concession space on October 1, 2018. The LESSEE shall begin full -service
restaurant/bar operations as soon as possible after occupancy.
7.02 Structural Modifications by LESSEE:
A. All fixtures, furnishings, and advertising installed by the LESSEE
shall be in keeping with the appropriate standards of decor at the facilities. Any
installations requiring structural modifications must be approved in advance by the City
Manager, or his/her designee, prior to installation.
B. No additional coin or currency -operated vending machines shall be
installed or located within the SMGC sites without the permission of the City Manager,
or his/her designee. Such permission shall not be unreasonably denied.
C. LESSEE agrees that all equipment, furnishings, and improvements
provided shall meet the requirements of all applicable building, fire, pollution, and other
related codes.
D. LESSEE shall not alter or modify any portion of facilities, SMGC
sites, or the improvements constructed therein without first obtaining written approval
from the City Manager, or his/her designee.
E. LESSEE shall not sell, convey, mortgage, pledge, or otherwise
dispose of any of the permanent fixtures or furnishings installed at the facilities without
prior written consent of the City Manager, or his/her designee.
Section 8.0
8.01 Maintenance Responsibilities of LESSEE:
A. Appearances of Facility: LESSEE shall, at its sole cost and
expense, keep and maintain the facilities, as described in Section 2.01, in an acceptable
condition, as determined by the LESSOR, during the term of the agreement, and any
extensions thereof.
B. LESSEE shall provide, at their expense:
(1) All janitorial services and all other interior maintenance of
the space, including plumbing, electrical, and `grease trap' periodic maintenance.
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(2) Pest control within and around 20 feet of the operational
areas.
(3) Garbage removal service from concession locations to the
SMGC designated disposal site.
(4) Janitorial service of the SMGC Clubhouse Restrooms
during operating hours (LESSOR shall provide after-hours restroom janitorial service and
provide necessary paper supplies).
C. LESSEE shall maintain all City property, including fixtures
located within the leased space.
8.02 Damages: LESSEE shall repair all damage to the equipment and facilities
caused by the LESSEE, its employees, agents, independent contractors, customers,
invitees, and guests of the LESSEE.
Section 9.0
9.01 Quiet Enjoyment of Property: LESSOR covenants and agrees that so
long as no default exists in the performance of LESSEE's covenants and agreements
contained herein, LESSEE shall peaceably and quietly hold and enjoy the contracted
facilities and all parts thereof free from eviction or disturbance by LESSOR.
Section 10.0
10.01 Indemnification: LESSEE does hereby agree and covenants to defend
fully, protect, indemnify and hold harmless the LESSOR, the SMGC, and the City of
Sebastian from and against each and every claim, demand or cause of action and any and
all liability, cost, expense including, but not limited to, reasonable attorneys' fees, costs
and expenses incurred in defense of the LESSOR, the SMGC, and the City of Sebastian,
even if incident to appellate, post judgment or bankruptcy proceedings, damages or loss
in connection therewith, which may be made or asserted by the LESSOR, the LESSOR's
employees or agents, invitees or any third parties on account of personal injury, death,
damage or property damage caused by, arising out of or in any way incidental to or in
connection with the LESSEE's operation of the equipment and facilities. At the election
of the LESSOR, the SMGC, and/or the City of Sebastian, LESSEE shall contest and
defend the LESSOR, the SMGC, and the City of Sebastian against any such claims of
liability. The LESSOR, the SMGC, and the City of Sebastian shall in any event, have the
right, through counsel of its choice, to control the defense or response to any such claim
to the extent it could affect the LESSOR, the SMGC, and/or the City of Sebastian. Only
those matters which are determined by a final, non -appealable judgment to be the result
of the negligence of the LESSOR, the SMGC, and/or the City of Sebastian or the
negligence of a third party who is not an agent, employee, invitee, or subcontractor of the
LESSEE shall be excluded from the LESSEE's duty to indemnify the LESSOR, the
SMGC, and/or the City of Sebastian, but only to the extent of negligence of the LESSOR,
the SMGC, the City of Sebastian or such third party. For the purpose of this section, the
term "City of Sebastian" shall be deemed to include the City Council, City Manager, its
agents, employees and affiliates. For purposes of the indemnification, "claims" shall
mean and include all obligations, actual and consequential damages and costs reasonably
incurred in the defense of any claim against the LESSOR, the SMGC, and/or the City of
Sebastian, including, but not limited to attorneys' and expert witness fees, costs of
investigation and proof of facts, court costs, other litigation expenses, and travel and
living expenses. The LESSOR, the SMGC, and the City of Sebastian shall have the right
to defend any such claim against it in such manner as the LESSOR, the SMGC, and the
City of Sebastian deems appropriate or desirable in its sole discretion. The parties
acknowledge that the consideration for the indemnification agreement is included in the
consideration for the Concession Lease.
Section 11.0
11.01 Liability for Damage or Injury: The LESSOR, the SMGC, or the City
of Sebastian shall not be liable for any damage or injury which may be sustained by any
party or persons at the facilities other than the damage or injury caused solely by the
negligence of the LESSOR, the SMGC, or the City of Sebastian.
Section 12.0
12.01 Partial Damage of Facilities: If by no fault of the LESSEE, the facilities
are partially damaged, but not rendered unusable for the purposes of the Agreement, the
same shall be repaired, or replaced, with due diligence by the LESSOR from proceeds of
insurance coverage and/or at its own cost and expense. If the damage shall be so
extensive as to render such facilities unusable for the purposes intended, but capable of
being repaired, or temporarily replaced, the same shall be repaired, or replaced, with due
diligence by the LESSOR from the proceeds of insurance coverage policy and/or at its
own cost and expense. The City Manager, at his/her sole discretion, may adjust the
leased space rental fee as a result of any business interruption pursuant to this section.
12.02 Destruction or Replacement of Facilities: In the event the facilities are
substantially destroyed, or the LESSOR erects a replacement facility, the LESSEE shall
be granted the right to operate the replacement facility under the same terms and
conditions, except that the leased space rental fee shall be adjusted proportionally
reflecting any change in the amount of leased square footage. The LESSEE must notify
the LESSOR clearly and unconditionally in writing of its intent to exercise this right
within sixty (60) days after receiving formal written notice, or shall be deemed to have
waived its right to operate the replacement facility.
Section 13.0
13.01 Ingress and Egress: Subject to rules, regulations, statutes, and
ordinances governing the use of the Facilities, LESSEE, its agents, servants, patrons and
invitees, and its suppliers of service and furnishers of materials, shall have the right of
ingress and egress to and from the facilities.
Section 14.0
14.01 Operations Performance Bond: N/A
Section 15.0
15.01 Insurances and Licenses: The LESSEE shall procure and maintain the
following insurance for any occurrence during the term of the contract.
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A. The LESSEE shall maintain and keep a concession license and
liquor license in compliance with any regulatory requirements.
B. Worker's Compensation Insurance shall provide for the limits
required by Chapter 440, Florida Statutes, and as may be amended from time to time.
The Employer's Liability shall be for a limit of no less than one million dollars
($1,000,000.00). If LESSEE, their partners, or officers request a waiver of exemption
under Section 440.04, Florida Statutes, and as may be amended from time to time,
LESSEE agrees to provide full disclosure of the waiver to the LESSOR and the LESSOR
shall have the right to reject LESSEE's waiver of exemption.
C. Comprehensive general liability insurance providing for a
minimum of one million ($1,000,000.00) dollars per occurrence, and two million
($2,000,000.00) dollars aggregate, written by such insurance company as shall be
acceptable to LESSOR. LESSEE's insurance shall cover all activities of any
subcontractors and any individual, or company, providing services.
(I) LESSEE shall name LESSOR as an additional insured
under said policy and a certificate of insurance showing the additionally insured and
specifying the deductible of said policy shall be delivered to LESSOR immediately upon
request. The certificate shall provide for thirty (30) days prior written notice from the
insurer to the LESSOR of any cancellation or amendment to said insurance policy. Each
certificate of insurance shall list the following as an additional insured:
The City of Sebastian
1225 Main Street
Sebastian, FL 32958
(II) The General Liability Certificate shall include the
following wording: "The City of Sebastian, its officers, agents, and employees are
named as additional insured with respect to the work performed under the Agreement for
concession and catering services."
(III) Nothing is this Agreement shall be construed to affect in
any way the LESSOR's rights, privileges, and immunities, including sovereign immunity
as provided by law as set forth in Florida Statute 768.28.
(IV) In the event that LESSEE fails to deliver said certificate to
LESSOR in the above stated manner, LESSOR may cancel this Agreement or, in the
alternative, procure the required policy and charge its costs to LESSEE as additional rent,
to be paid by LESSEE thirty (30) days before the first day of the commencement of the
term thereof.
1. Dram Shop Liability Insurance.
(I) The LESSEE shall maintain and, prior to commencement
of this Agreement, provide the LESSOR with evidence of insurance to cover liability for
the service of alcoholic beverages with limits of one million ($1,000,000.00) dollars no
later than thirty (30) business days before the commencement date of the term as set forth
in section 7.01.
(II) The LESSOR shall be named an additional insured, as its
interest may appear, on the policies set forth in this section. LESSEE shall not cancel or
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reduce the coverage provided by any policy described in this Section except upon thirty
(30) days prior written notice to LESSOR.
2. LESSOR shall maintain and keep in force property insurance on the
facilities. LESSEE shall be responsible for keeping in force fire and extended coverage
on all contents, improvements and betterments. LESSEE shall maintain builders risk
insurance on all facilities pursuant to Section 7.02.
3. LESSOR reserves the right to reasonably amend insurance requirements
by the issuance of notice in writing to the LESSEE.
Section 16.0
16.01 Termination for cause by LESSOR:
A. LESSOR may terminate the Agreement Lease without notice upon
the occurrence of any of the following events:
(1) Institution of proceedings in voluntary bankruptcy by the
LESSEE.
(2) Institution of proceedings in involuntary bankruptcy against
the LESSEE if such proceedings continue for a period of ninety (90) days
(3) Assignment by LESSEE for the benefit of creditors.
(4) Abandonment by LESSEE of, and discontinuance of
operations hereunder.
(5) The discovery of any misstatement in negotiations between
LESSEE and LESSOR which, in the sole opinion of the LESSOR, materially affects the
LESSEE's qualifications to perform under the Agreement.
(6) If the LESSOR fails to pass an Indian River County Health
Department health/sanitation inspection, LESSEE shall remedy the violation within a
three (3) day period or the City Manager may terminate the Agreement.
B. LESSOR shall have the right to terminate the Concession Lease
after thirty (30) days written notice sent by registered/certified mail, or hand -delivered,
to the LESSEE, of the occurrence of one or more of the following, unless the same shall
have been corrected within such period:
(1) Non-performance of any covenant of the contract and
failure of the LESSEE to remedy such breach.
(2) The conduct of any business or the merchandising of any
product or service not specifically authorized herein.
C. If LESSEE fails to pay any sum or sums due under the lease
agreement for a period of ten (10) days after the due date, the LESSOR shall have the
right, after seven (7) calendar days additional written notice either hand -delivered to a
LESSEE principal party or sent by registered or certified mail to the LESSEE specifying
the amount of payment(s) in default, and accrued interest, to terminate the Agreement,
provided however, that such termination shall not be effective if LESSEE makes the
required payment(s), and accrued interest, during the seven (7) calendar day period
following receipt of the written notice.
16.02 Termination without cause by LESSOR:
The Lessor may terminate this lease without cause by providing
LESSE ninety (90) Calendars days' notice to LESSEE.
E?
16.03 Termination by LESSEE:
LESSEE shall have the right, upon ninety (90) calendar day's
written notice to the LESSOR, to terminate the Agreement at any time after the
occurrence of one or more of the following events:
(1) Issuance by any court of competent jurisdiction of any
injunction substantially restricting the use of the facilities for commercial purposes, and
the remaining in force of said injunction for a period of more than ninety (90) calendar
days.
(2) A breach by the LESSOR of any of the terms, covenants, or
conditions contained in the Concession Lease and the failure of the LESSOR to remedy
such breach for a period of sixty (60) calendar days after receipt of written notice sent by
registered/certified mail, or hand -delivered, from the LESSEE of the existence of such
breach.
Section 17.0
17.01 Non -Discrimination:
A. That LESSEE for itself, its personal representatives, successors in
interest, and assigns, as a part of the consideration hereof, does hereby covenant and
agree that:
(1) No person on the grounds of race, color, national origin, or sex
shall be excluded from participation in, be denied the benefits of, or be otherwise
subjected to discrimination in the use of said facilities.
(2) In the construction of any improvements on, over, or under
such land and the furnishing of services thereon, no person on the grounds of race, color,
national origin, or sex shall be excluded from participation in, be denied the benefits of,
or otherwise be subjected to discrimination.
(3) LESSEE shall use the designated Sites in compliance with all
other requirements imposed by, or pursuant to, Title 45, Code of Federal Regulations,
Article 80, Non-discrimination under programs receiving Federal Assistance.
B. In the event of breach of any of the above non-discrimination
covenants, LESSOR shall have the right to immediately terminate the Agreement and to
re-enter and repossess said facilities thereon and hold the same as if the Agreement has
never been made or issued.
C. LESSEE shall not discriminate against any employees or applicant for
employment to be employed in the performance of the Agreement with respect to hiring,
tenure, terms, conditions, or privileges of employment, or any matter directly or
indirectly related to employment because of age, sex, or physical handicap (except where
based on a bona fide occupational qualification); or because of marital status, race, color,
religion, national origin, or ancestry.
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Section 18.0
18.01 Rules and Regulations: LESSEE will observe, obey and comply with all
rules and regulations adopted by the City of Sebastian and all laws, ordinances and/or
rules and regulations of other governmental units and agencies having lawful jurisdiction,
which may be applicable to LESSEE's operations under the Agreement.
Section 19.0
19.01 Payment of Obligations: LESSEE shall pay all taxes and other costs
lawfully assessed against its interest in the facilities, its improvements and its operations
under the Agreement, except those taxes, and other costs, specified as the LESSOR'S
responsibility pursuant to Section 3.02.
Section 20.0
20.01 RESERVED
Section 21.0
21.01 Inspection by LESSOR: The City of Sebastian City Manager, or his/her
designee, may make periodic inspections of all of the facilities and equipment to
determine if such are being maintained in a neat and orderly condition. LESSEE shall be
required to make any improvements in cleaning or maintenance methods required by
LESSOR. Such periodic inspections may also be made to determine whether the
LESSEE is operating in compliance with the terms and provisions of the Agreement.
Section 22.0
22.01 Facility Repairs, Alterations and Additions by the LESSOR: LESSOR
shall have the absolute right, without limitations, to make any repairs, alterations, and
additions to any structures and facilities, including the facilities leased under the subject
Agreement, free from any and all liability to the LESSEE. During the making of such
repairs, alterations, and additions, other than repairs to damaged items pursuant to
Section 12.01, a pro-rata adjustment may be made to the leased space rental fee upon
mutual agreement between the LESSEE and the City Manager.
Section 23.0
23.01 Removal of Property: LESSEE, within ten (10) calendar days following
the termination/expiration of the Agreement, shall forthwith remove all of its personal
property. Any personal property of LESSEE not removed in accordance with this section
may be removed by the LESSOR for storage at the cost of LESSEE or shall constitute a
gratuitous transfer of title thereof to the LESSOR whatever disposition is deemed to be in
the best interest of the LESSOR. LESSOR shall not be liable to LESSEE for the
safekeeping of LESSEE's personal property.
It is the intention of the parties to the Agreement that all fixtures, furnishings, and
equipment purchased or leased by LESSEE for use at the concession site, except those
permanently affixed to buildings as defined under the laws of the State of Florida, shall
be and will always remain the personal property of the LESSEE.
Upon termination of the Agreement and the removal of all personal property by
LESSEE, the LESSEE shall restore said facilities to a neat, clean, and habitable
condition.
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Section 24.0
24.01 Indulgence Not Waiver: The indulgence of either party with regard to
any breach or failure to perform any provision of the Agreement shall not be deemed to
constitute a waiver of the provision of any portion of the Agreement either at the time the
breach or failure occurs or at any time throughout the term of the Agreement.
Section 25.0
25.01 Integration: The drafting, execution and delivery of this Agreement by
the parties have been induced by no representations, statements, warranties or agreements
other than those expressed in it. This Agreement contains the entire agreement between
the parties and there are no further or other agreements or understandings written or oral
in effect between the parties relating to its subject matter. This Agreement cannot be
changed or modified except by written instrument executed by all parties hereto. This
Agreement and the terms and conditions hereto apply to, and are binding upon, the legal
representatives, successors, and assigns of both parties.
Section 26.0
26.01 Severability: If any term of this Agreement or the application thereof to
any person or circumstances shall be determined by a court of competent jurisdiction to
be invalid or unenforceable, the remainder of this Agreement, or the application of such
term to persons or circumstances other than those as to which it is invalid or
unenforceable, shall not be affected thereby, and each term of this Agreement shall be
valid and enforceable to the fullest extent permitted by law.
Section 27.0
27.01 Notices: All notices required under this Agreement shall be sent by
certified mail as follows:
LESSOR: City of Sebastian
1225 Main Street
Sebastian, Florida 32958-4165
ATTN: City Manager
In addition, a Copy shall be provided to the Sebastian City Attorney's Office at the same
address as above.
LESSEE:
Section 28.0
28.01 Governing LawNenue: This Agreement shall be governed and
construed in accordance with Florida Law. In the event that litigation arises involving the
parties to this Agreement, venue for such litigation shall be in Indian River County,
Florida. The parties hereto shall, and they hereby do, waive trial by jury in any action,
proceeding or counterclaim brought by either of the parties hereto against the other on
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any matters whatsoever arising out of or in any way related to this Agreement, the
relationship of LESSOR and LESSEE, LESSEE's use or occupancy of the Premises, the
Building or the Lot, and/or any claim of injury, loss or damage.
IN WITNESS WHEREOF, the Parties have executed this Agreement on this the
J S day of .l't v )-C s�71. , , 2018.
LESSOR: The City of Sebastian
ul E. Carlisle
City Manager
ATTEST:
City of Sebastian, Florida
Ukanette Williams, MMC
City_Clerlc-
LESSEE:
"�,A J /VV1
Approved as to Form and Correctness
for the City of Sebastian only:
J _SS
City Attorney
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SET!AN
HOME OF PELICAN ISLAND CITY COUNCIL AGENDA TRANSMITTAL
COUNCIL MEETING DATE: September 12, 2018
AGENDA ITEM TITLE: Sebastian Golf Course Restaurant Lease
BACKGROUND: The City of Sebastian advertised for proposals to lease the restaurant
space at the Sebastian Municipal Golf Course. The bids were opened on August 21, 2018 at
2:00 PM. The City received two proposals. The team scored each proposal based on the
information provided in their proposal packages. On August 28, 2018 the team held
interviews with each proposal to clarify any information on their proposals and allow the
proposers to offer any additional information that they thought would be relevant. The
following is information from the proposals and the interviews;
BirTee's Grille
Kathleen Birt and Terry King
Proposed rent; $1,600.00 per month
Capital investment; $56,444.36
Current staff dedicated to this lease; 5
Average score 65.2
Proposer indicated that their rent was based on the study that they did in the area and that was
the average going rate. They indicated that it will take approximately one year to develop a
steady clientele. They proposed to serve only breakfast and lunch and no dinner. They felt
this would not be successful. They will provide a service cart from 10:00 Am to 4:00 PM and
will determine other times to operate based on need. The menu provided in their proposal
appears to be satisfactory and prices are in a range that the clientele expects at a golf course.
They indicated they would do two special events a year, for example, an event on the 4Lh of
July to thank their customers who support them during the summer. They proposed to have
live music maybe once or twice a month. The proposers operate other restaurants that are
successful one of which is at a golf course, they intend to keep these open and this will be an
addition to their business. They expressed concerns regarding weather and course closures as
one of the reasons for the reduced rent, the bid required minimum of $2,500.00 per month. If
awarded they proposed to open the snack shack in mid -October while the equipment and
tables are being delivered and plan to open by November 1, 2018.
The Pelican Diner & 4 Wings Sports Bar
Greg Hepler
Proposed rent; $2,500.00 per month
Capital investment; $2,000.00
Current staff dedicated to this lease; 20+
Average score 75.4
Proposer met the minimum of $2,500.00 for the monthly rent. The proposer currently
operates a successful diner/restaurant and intends to close that location and move his
equipment and tables to this location if selected. The proposer anticipates that his current
clientele will come to this location so he anticipates that the development of business will be
immediate. The proposer has provided in his proposal to serve breakfast, lunch and dinner.
He has proposed to operate a service cart any time golfers are out on the course regardless of
the quantity. The menu that was proposed appears to be satisfactory and prices are in a range
that the clientele expects at a golf course. In addition he plans on weekly specials for dinner
to appeal to other customers as well.
He has proposed several events such at night golf contests, family night putting contests,
movie night on the driving range, live music and entertainment. His plan is to open by
November 1, 2018 or sooner as he has equipment and inventory to begin operations.
IF AGENDA ITEM REOUIRES EXPENDITURE OF FUNDS: N/A
Administrative Services Department/CFO Review: -I ", I yc-t
ATTACHMENTS: 1. Proposal Documents #18-08
2. Proposals
3. Proposed Lease Agreement
City Manager Authorization:
ate: 4/029I0