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HomeMy WebLinkAboutR-90-43RESOLUTION NO.: R-90-43 A RESOLUTION OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, AUTHORIZING THE MAYOR AND THE CITY CLERK TO SIGN, ON BEHALF OF THE CITY, A CONCESSION AGREEMENT WITH DTF, INC., DENNIS R. FINK AND THERESA L. FINK, IN A FORM IDENTICAL TO THE CONCESSION AGREEMENT ATTACHED TO THIS RESOLUTION AS EXHIBIT "A", WHEREBY DTF, INC., WOULD OPERATE THE RESTAURANT AND SNACK BAR IN CONNECTION WITH THE SEBASTIAN MUNICIPAL GOLF COURSE; PROVIDING FOR REPEAL OF RESOLUTIONS OR PARTS OF RESOLUTIONS IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the City Council and DTF, Inc. , a Florida Corporation, Dennis R. Fink and Theresa R. Fink desire to enter into a Concession Agreement whereby DTF, Inc., would operate the restaurant and snack bar at the Sebastian Municipal Golf Course in accordance with the provisions of the proposed Concession Agreement, a copy of which is attached to this Resolution as Exhibit "A", and incorporated herein by this reference; and, WHEREAS, the City Council has reviewed the proposed Concession Agreement provided to them by city staff, and, WHEREAS, the City Council has determined that entering into the proposed Concession Agreement will serve a public and municipal purpose by providing food and beverage service to the general public without economic cost or risk to the City, thereby reducing the City's administrative burden while providing concession revenue to the City; and WHEREAS, the City Council has determined that the proposed Concession Agreement will not cause the City to be unable to comply with the terms and covenants of the bond resolutions adopted by the City Council on the 19th day of November, 1980, and the 29th day of January, 1981, entitled "Resolution R-80-45" and "Resolution R-81-3", respectively, nor hinder the ability of the City to maintain the financial integrity of the golf course facilities, nor impair the ability of the City to operate the golf course facilities and collect the gross revenues in the amounts necessary to comply with all of the terms and covenants of the Resolution R-80-45 and Resolution R-81-3. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEBASTIAN, INDIAN RIVER COUNTY, FLORIDA, that: Section 1. AGREEMENT. The Mayor and the City Clerk of the City of Sebastian, Indian River County, Florida, are hereby authorized to sign, on behalf of the City, the Concession Agreement with DTF, Inc., Dennis R. Fink and Theresa L. Fink, a copy of which is attached to this Resolution as Exhibit "A", and incorporated herein by this reference. Section 2. CONFLICT. Ail resolutions or parts of resolutions in conflict herewith are hereby repealed. Section 3. SEVERABILITY. In the event a court of competent Jurisdiction shall hold or determine that any part of this Resolution is invalid or unconstitutional, the remainder of the Resolution shall not be affected and it shall be presumed that the City Council of the City of Sebastian did not intend to enact such invalid or unconstitutional provision. It shall further be assumed that the City Council would have enacted the 2 remainder of this Resolution without said unconstitutional provision, thereby causing said remain in full force and effect. invalid and remainder to Section 4. EFFECTIVE DATE. This Resolution shall take effect immediately upon its adoption. The Councilman vote, the vote was as follows: foregoing Resolution was moved for adoption by The motion was seconded and, upon being put to a Mayor W. E. Conyers Vice-Mayor Frank Oberbeck Councilman Robert L. McCollum Councilman Lonnie R. Powell Councilman Lloyd Rondeau The Mayor thereupon declared this Resolution duly passed ATTEST: Kathryr~/M. O'Italloran, CMC/A~E City Clerk (Seal) CITY OF SEBASTIAN, FLORIDA Approve/as to Form and Content: Charles Ian Nash, City Attorney 3 CONCESSION AGREEMENT THIS_CONCESSiON AGREEMENT, made and entered into this /~day of //D'l~gt , 1990, by and among the CITY OF SEBASTIAN, FLOriDA, a Florida" mUnicipal corporation located in Indian River County, Florida (hereinafter referred to as the "City"), and DTF, INC., a Florida corporation (hereinafter referred to as "Concessionaire") and DENNIS R. FINK and THERESA L. FINK, individually, who reside at 201 Plantation Club Drive, No. 1607, Melbourne, Florida 32940-1970 (hereinafter collectively referred to as "Guarantors"). WITNESS ETH: WHEREAS, the City operates a municipal golf course, the facilities of which include a clubhouse and snack bar; and WHEREAS, the City desires that a food service concession be made available within the clubhouse and snack bar facilities to provide food and refreshments for the better accommodation, convenience and welfare of the general public using said golf course; and WHEREAS, Concessionaire possesses substantial experience in the food service industry; and WHEREAS, the City and Concessionaire desire to enter into an agreement whereby Concessionaire is granted the exclusive right to provide food services in the clubhouse and snack bar facilities located on the golf course; and WHEREAS, Guarantors have a financial interest in Concessionaire and desire to induce the City to enter into this Agreement with Concessionaire by providing the guarantees set forth herein. NOW, THEREFORE, in consideration of the premises, the covenants, terms and conditions to be performed as set forth hereinafter, the receipt and sufficiency of which are hereby acknowledged, the parties hereto have agreed and do agree as follows: 1. Llcenss: Subject to the terms and conditions set forth in this Agreement, the City hereby grants to Concessionaire an exclusive, nontransferable and personal license to operate a food service business in the clubhouse and snack bar located on the City's municipal golf course, as more particularly described in Exhibit "A" attached hereto and by this reference incorporated herein (hereinafter referred to as the "Concession Facilities"). 2. Term: The~~ ~t.h~is Agreement shall be for three ~3~) yeats commen--~ng on,~~/~/~ /~ , 1990 and ending on 7/~~ /~' , 199'3, Uhless earl'~er Terminated as provided h~rein (th~ "Term"), So long as Concessionaire is not in default of any term, condition or covenant provided herein, Concessionaire shall have the option to renew this Agreement for two (2) additional one (1) year periods (the "Option Term") by providing the City with written notice of Concessionaire's decision to exercise said option no less than sixty (60) days and no more than ninety (90) days prior to the expiration of the current Term or Option Term, as the case may be. Following the expiration of the final Option Term, this Agreement, and the terms, conditions and obligations provided herein, shall continue in full force and effect until such time as either party shall elect to terminate this Agreement. An election to terminate this Agreement shall not be effective unless the electing party shall give the non-electing party written notice of such election at least ninety (90) days prior to the effective date of termination. 3. Concession Fee: (a) Basic Concession Fee: Concessionaire hereby agrees to pay the City in return f6'~""the license granted herein, the basic concession fee of Two Thousand Four Hundred and 00/100 Dollars ($2,400.00) per year, payable in equal monthly installments of Two Hundred and 00/100 Dollars ($200.Q0) each, og the first day of each calendar month cOmmencing on ~//~~/~ , 1990 and continuing on each successive month'there~fter for as long as this Agreement remains in effect. (b) Adjustments to Basic Concession Fee: At the end of the first year during the Term hereof, ~nd there'~ffer at the end of each succeeding year during said Term, the basic concession fee (and the monthly installments thereof) shall be increased in an amount equal to the basic concession fee in effect immediately prior to each such increase multiplied times five percent (5%). The basic concession fee thereby established by such increase shall continue in effect as the basic concession fee required to be paid hereunder until again increased as herein provided. At the end of the final Option Term as set forth in paragraph 2, the basic concession fee shall be increased in an amount equal to the basic concession fee in effect at such time multiplied times ten percent (10%) and, thereafter, at the end of each succeeding year for as long as this Agreement remains in effect, the basic concession fee shall be increased by an amount equal to the basic concession fee effective at the time of such increase multiplied times five percent (5%). The basic concession fee thereby established by each such increase shall continue in effect as the basic concession fee required to be paid hereunder until again adjusted as herein provided. (c) Gross Rg~eipts Percentage Fee: In addition to the basic concession fee set forth above, Concessionaire shall pay to the City, on a monthly basis, ten percent (10%) of Concessionaire's beer, wine and liquor gross receipts (sales less applicable tax) as determined under and according to the terms set forth in Paragraph 6(i) of this Agreement. (d) Additions to Concession Fee: Concessionaire shall pay, in additiOn to the concession ~ee provided hereinabove, interest at the rate of two percent (2%) per month on any basic concession fee due that is not received within five (5) days of its due date. Concessionaire shall also be required to pay interest at the rate of two percent (2%) per month of the previous month's gross liquor receipts for any gross receipts percentage fee which is not received within ten (10) days of its due date. 4. Use of Equipment: Concessionaire shall be entitled to use the equipment provided by the City listed on Exhibit "A" which is attached hereto and incorporated herein by this reference. Concessionaire shall maintain all equipment used in the operation of the Concession Facilities, whether such equipment be owned by the City or by Concessionaire, subject to normal wear and tear. Concessionaire shall indemnify the City against any loss, theft or damage of the equipment provided by the City when said loss, theft or damage is the result of the fault or negligence of Concessionaire, its employees or agents. Concessionaire shall promptly repair or replace equipment which is lost, stolen or damaged within five (5) days of such loss, theft or damage. Upon the expiration or termination of the Agreement, Concessionaire shall return to the City all equipment listed on Exhibit "A." Concessionaire agrees to pay the City an amount equal to the current replacement price of each item not returned, or returned in an unserviceable condition, ordinary wear and tear excepted. In the event of the termination, or upon the expiration, of this Agreement, the City shall have the first option of purchasing, for an amount ascertained by negotiations, any or all of the property belonging to Concessionaire and used by Concessionaire in the performance of its obligations hereunder, including, but not limited to, furniture, furnishings, equipment, utensils, food, beverages and miscellaneous supplies on hand, which option shall be exercised by the City within thirty (30) days prior to the date of the termination or expiration of this Agreement. Concessionaire and the City hereby agree to conduct an inventory of said property within the first twenty (20) days of said thirty (30) day period. Concessionaire shall also have the exclusive right to use and to exercise control over any and all vending machines located in or about the Concession Facilities which dispense food or beverages. 5. Continuous Operation: Concessionaire shall operate a food service business in the Concession Facilities seven (7) days a week, including all holidays, during the normal hours of operation of the golf course. Concessionaire shall have the option of opening the Concession Facilities, or remaining open for business, on those days the golf course is closed due to inclement weather. Concessionaire shall open the Concession Facilities for business one-half (1/2) hour prior to the first tee time and close no earlier than one (1) hour after the course is closed to the public. Concessionaire shall ensure that food services shall be available for tournaments, special events and meetings. Concessionaire shall supply a hospitality cart at such times as mutually agreed upon by Concessionaire and the City. 6. Operation and Management: (a) Standards of Operations: Concessionaire shall operate the Concession Facilities in a businesslike manner appropriate to the image of a golf course operation. The operation of the Concession Facilities shall be conducted in an orderly manner, without unnecessary disruption to the golf course operations. The City hereby reserves the right to review and give final approval, through the City Manager or his designee, on all facets of the operation of the Concession Facilities, including, but not limited to, decor, entertainment, menu, prices, hours of operation, parking and employees. (b) Manager: Concessionaire's president shall be available during hours of operation and shall act as manager of the Concession Facilities. If Concessionaire's president shall at any time be absent from the' Concession Facilities during hours of operation, Concessionaire shall designate a facilities manager to act in Concessionaire president's stead. (c) Employees: Concessionaire shall bear sole responsibility for the continuous staffing of the Concession Facilities. Concessionaire shall ensure that sufficient employees are on hand at all times to provide outstanding service to the public. Concessionaire shall regulate Concessionaire.s employees so that they will be courteous and helpful to the public. Concessionaire shall have the exclusive duty and right to retain and terminate employees provided, however, that the City shall have the right to require Concessionaire to replace any employee who is abusive, under the influence of or who habitually uses alcohol or drugs, or who is afflicted by diseases, or whose conduct or appearance otherwise detracts from the Concession Facilities' reputation and profitability. Concessionaire hereby agrees to give consideration to hiring three (3) current employees, including one (1) bartender and two (2) waitress/utility persons, for the operation of the Concession Facilities. (d) Menu: Concessionaire shall provide the public food and drink of a ~]~standard, equivalent in quality and price to that generally furnished to the public at similar places of comparable size and scope in the City and surrounding areas. Prices for all merchandise sold shall be posted in a conspicuous place on the Concession Facilities. Concessionaire shall also post, in a conspicuous place on the Concession Facilities, a notice which identifies Concessionaire as the owner and operator of the concession. An identical Concessionaire's menu. notice shall be included on (e) Cleaning: Concessionaire shall keep all fixtures, equipment and personal property which are located in the Concession Facilities, whether owned by Concessionaire or the City, in a clean, sanitary and orderly condition at all times, and conduct the food service operation strictly in accordance with all applicable rules, regulations and code requirements including, but not limited to, the Health Department, Indian River County Unit. Concessionaire shall also be responsible for maintaining the floors in the kitchen, storeroom and dining areas in a clean and orderly state. Concessionaire shall be responsible for the storage and collection of solid waste and shall bear the associated costs thereof. Concessionaire may, with the City's approval, select a site on the golf course property for storage of such solid waste. (f) Compliance: Concessionaire shall comply with all requirements of any 6f th~ constituted public authorities and with the terms of any state, federal or local ordinance or regulation applicable to Concessionaire or Concessionaire's use of the Concession Facilities., and indemnify, defend and save the City harmless from penalties, fines, costs or damages resulting from Concessionaire's failure to so comply. (g) Alcoholic Beverage License: Concessionaire shall secure and maintain an llC and an llCX liquor license from the Florida Department of Business Regulation, Division of Alcoholic Beverages and Tobacco. (h) Licenses and Permits: Concessionaire shall be responsible for and shall secure t~e necessary permits and licenses required for the operation of the Concession Facilities. (l) Books and Records: Concessionaire shall maintain, during the Term of this Agreement, or renewal or extension thereof, all books, reports and records customarily maintained in similar type operations. The form of all such records and reports shall be subject to the approval of the City's auditors. All sales of beer, wine and liquor shall be recorded by cash register which shall be read daily before sales begin by the City's Golf Course Business Manager, unless he or she shall not be available to do so. The City or its agents may audit or examine all records relating to Concessionaire.s operation during Concessionaire's normal business hours. Concessionaire shall submit to the Golf Course Business Manager a weekly sales report detailing revenues realized from the sale of beer, wine and liquor. On or before the tenth (10th) day following the end of each calendar'month throughout the Term of the Agreement, or renewal or extension thereof, Concessionaire shall furnish to the City's Finance Department and Golf Course Business Manager a report of gross receipts earned on the sale of beer, wine and liquor during 5 the preceding calendar month, on forms approved by the City. The said reports shall be signed by Concessionaire who shall certify the accuracy of such reports. Monthly gross receipts percentage fees due pursuant to Paragraph 3(c) of this Agreement shall be paid with the submission of these reports. Concessionaire shall submit to the City's Finance Department a quarterly financial report detailing the beer, wine and liquor purchases and sales occurring during said period, prepared by a certified public accountant. Concessionaire shall permit, at any time and at the City's expense, a report to be prepared and certified by an independent certified public accountant, as to the correct amount of gross liquor receipts per month arising from said operation; which shall be prepared in conformance with the American Institute of Certified Public Accountants Requirements for "Special Reports." Concessionaire shall pay all costs associated with said report in the event that Concessionaire's quarterly report varies by more than three percent (3%) of the report prepared by the City's independent certified public accountant. Concessionaire hereby agrees that it shall keep and preserve for at least three (3) years all sales slips, cash register tapes, sales books, cash deposit receipts, bank books or duplicate deposit slips, and other evidence of gross receipts and business transacted during the Term of this Agreement, or renewal or extension thereof. (J) Improvements: Concessionaire shall have the right to improve the Concessi~h'Facilities, subject to the approval of the City Manager or his designee. All costs of any improvements shall be borne by Concessionaire. All improvements made on the Concession Facilities shall become the property of the City upon their construction or installation. Major remodeling or expansion shall be coordinated with the City. (k) Debts and Obligations: concessionaire shall pay promptly when due all'bills, debts and" obligations incurred in connection with the operation of the Concession Facilities, including social security taxes and withholding for its employees, and shall not permit such debts or obligations to become delinquent and shall suffer no lien, mortgage, Judgment, execution or adjudication in bankruptcy which will in any way impair the rights of the City under this Agreement. 7. Utilities: Concessionaire shall be responsible for and shall pay on a monthly basis sixty percent (60%) of the electricity costs reflected on the electric account for the Club House building in which the Concession Facilities are located. The City shall provide water but shall not guarantee its quality. Should the Indian River County sewer system become available and should the City connect the Concession Facilities to said system, Concessionaire shall be responsible for and shall pay a proportionate share of the monthly service charge, including all taxes and franchise fees related to said sewer service. 6 Concessionaire shall provide, at Concessionaire's sole cost and expense, extermination and pest control services as needed. 8. Taxes: Concessionaire shall pay, or cause to be paid before delinquency, any and all taxes levied or assessed which become payable during the Term of this Agreement, or renewal or extension thereof upon all Concessionaire's equipment, furniture, fixtures and any other personal properly located in the Concession Facilities. In the event any or all of Concessionaire's improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the real property, Concessionaire shall pay to the City its share of such taxes applicable to Concessionaire's property. Concessionaire shall pay all sales or use tax relating to the Concession Facilities, and for any improvements thereon, which might arise or become due during the Term of this Agreement, or renewal or extension thereof, and Concessionaire shall indemnify, defend and hold the City harmless against the same. 9. Insurance: (a) worker's Com~ensation Insurance: Concessionaire shall provide an~ keep in force at its own expense worker's compensation insurance as a required by Florida Statutes. In the event Concessionaire or the City undertakes to improve or remodel the Concession Facilities, Concessionaire shall provide and keep in force at its own expense worker's compensation insurance on all personnel engaged in such activities and shall require any and all Subcontractors to provide worker's compensation insurance for all of said subcontractors' employees who are engaged in such work, unless such employees are covered by the protection afforded by Concessionaire's insurance. Concessionaire shall indemnify, defend and hold the City harmless from any and all claims or lawsuits resulting from injury to or actions of the employees of Concessionaire. (b) ~iability Insurance: Concessionaire shall provide and keep in force at ConCession~ire.s own expense public liability and property damage insurance coverage with respect to the Concession Facilities and all improvements made thereto. The insurance coverage to be provided by Concessionaire shall contain limits of not less than $500,000 for injury or death of any one person and $1,000,000 for injury or death for any one accident, together with $1,000,000 for damage to property. (c) Contractual Liability Insurance: Concessionaire shall provide and keep'in f6rce ~t concess~onalre.s own expense contractual liability insurance covering all liability arising out of the terms of this Agreement. (d) Liquor L~ability Insurance: Concessionaire shall provide and keep in force at Concessionaire's own expense liquor liability insurance containing limits of not less than $1,000,000 per occurrence. (e) Miscellaneous: Concessionaire shall furnish certificates of such insurance and copies of insurance policies to the City Clerk, 1225 Main Street, P. O. Box 780127, Sebastian, Florida 32978, at least fifteen (15) days prior to the commencement of operations under this Agreement, and annually thereafter. Said certificates shall clearly name the City as an additional insured, and shall contain a clause specifying that the insurance carrier shall be obligated to advise the City in writing at least thirty (30) days in advance prior to the cancellation of any coverage. The City reserves the right to annually review and revise any policy of insurance required hereinabove, however, any increase in amounts or types of coverage shall not be unreasonable or excessive. 10. Indemnity: Concessionaire shall indemnify, defend and hold the City harmless against and from any and all claims, costs, damages, judgments, expenses and attorney's fees incurred by the City arising from Concessionaire's use of the Concession Facilities or from the conduct of Concessionaire's business or from any activity, work, other things done, permitted or suffered by Concessionaire or Concessionaire's employees, guests or lnvitees in or about the Concession Facilities; from Concessionaire's failure to comply with any law, rule, regulation or order of any governmental authority; from any and all claims arising from any breach or default in the performance of any obligation on Concessionaire's part to be performed under the terms of this Agreement; or, from any employee, guest or invitee of Concessionaire, and, from all costs, attorney's fees and liabilities incurred in the defense of any such claim or action or proceeding brought thereon. Concessionaire, as part of the consideration to the City, hereby assumes all risks of damage to the property or injury to persons in, upon or about the Concession Facilities, from any cause other than the city's willful or intentional acts; and Concessionaire hereby waives all claims in respect thereof against the City. Concessionaire shall give prompt notice to the City in case of casualty or accidents in or about the Concession Facilities. 11. Entry by the City: The City reserves, and shall at any and all times have, the right to enter the Concession Facilities to inspect the same. The City also reserves the right, from time to time, at the City's own expense by its officers, agents and contractors, to make such renovations, repairs or changes in, about and to the Concession Facilities, other than those repairs or improvements undertaken by Concessionaire herein, as the City deems desirable, including renovation/replacement of the existing Concession Facilities with new Concession Facilities. Concessionaire hereby waives any claim for damages or for any injury or inconvenience to or interference with Concessionaire.s business during such renovation, repairs or changes; provided, however, that concession fees shall be abated for any period during which Concessionaire is prevented from conducting Concessionaire's business due to such renovations, repairs or changes. 12. Default by Concessionaire: The occurrence of any of the following ~hall cohstit~te a default by Concessionaire: (a) Institution by Concessionaire or Guarantors of a voluntary proceeding in bankruptcy; (b) Institution of an involuntary proceeding in bankruptcy against Concessionaire or Guarantors if such proceeding continues for a period of ninety (90) days; (c) Assignment by Concessionaire or Guarantors for the benefit of creditors; (d) Abandonment of the Concession Facilities which abandonment shall be Concessionaire's absence from the Concession Facilities or the cessation of business in said Concession Facilities for a period of seven (7) days or more; discontinuation of Concessionaire operations hereunder; (e) Nonpayment of any sum due hereunder, when such nonpayment continues for a period of thirty (30) days after the due date for such payment; (f) Nonperformance by Concessionaire of any covenant, term or condition of this Agreement; or any other action or inaction constituting a breach of this Agreement and the failure by Concessionaire to cure such nonperformance or breach within thirty (30) days of receiving a notice to cure from the City; (g) The conduct of any business or the merchandising of any product or service by Concessionaire not specifically authorized herein; (h) A final Judicial determination that any litigation instituted by Concessionaire against the City was groundless or frivolous to the extent that attorney's fees may be awarded pursuant to Florida Statute Section 57.105; (i) The lapse, suspension or revocation of any of Concessionaire's alcoholic beverage licenses, or other license or permit required to operate the Concession Facilities; (J) The issuance by the City, pursuant to Paragraph 13 below, of three (3) or more notices of breach within any twelve (12) month period. 13. Remedies of the City: In the event of any default as described above or bre~h' by Concessionaire, the City shall provide written notice to Concessionaire of such default or breach and the Concessionaire shall have fifteen (15) days within which to cure such default or breach. In the event Concessionaire fails to cure said default or breach within said fifteen (15) day period to the satisfaction of the City, the City may, at any time thereafter, at its sole discretion, with or without notice or demand and without limiting the City in the exercise of a right or remedy which the City may have by reason of such default or breach: (a) Terminate this Agreement, in which case Concessionaire shall immediately vacate the Concession Facilities and the City shall be entitled to recover from Concessionaire all damages incurred by the City by reason of Concessionaire's default including, but not limited to, the cost of recovering possession of the Concession Facilities, necessary costs for the renovation and alteration of the Concession Facilities and reasonable attorney's fees; (b) Pursue all other remedies now or hereinafter available to the City under the laws or Judicial decisions of the State of Florida. 14. Conq~ssion~.ire's R.!ght to Terminate: Concessionaire shall have the right to terminate this Agre~h~ upon thirty (30) days advance written notice to the City upon the occurrence of any of the following: (a) Issuance by a court of competent jurisdiction of any permanent injunction substantially restricting the use of the Concession Facilities for commercial purposes when said injunction remains in force for ninety (90) days or more; (b) A breach by the City of any of the terms or conditions of this Agreement and failure by the City to remedy such breach during a period of thirty (30) days after receipt of written notice of the existence of such breach; (c) The assumption by the United States Government or any agency thereof, or any other governmental agency, of the operation, control or use of the Concession Facilities or any substantial part thereof in such a manner as to substantially restrict Concessionaire's operations for a period of ninety (90) days or more. 15. Damage to Concession Facilities: In the event that the Concession Facilities are deS'~oyed"'0r d~ged by fire or other casualty so as to render the Concession Facilities unfit for their intended use, this Agreement shall be suspended until such time as the Concession Facilities are again rendered fit for their intended use. The City shall be under no obligation to rebuild or repair 10 the Concession Facilities in the event they are damaged or destroyed. In the event the City elects not to rebuild or repair the Concession Facilities, it shall notify Concessionaire of same and, upon furnishing such notice, this Agreement shall terminate. 16. Vacation of Concession Facilities: On the expiration or other ~efminati~h of this Agreement, '~or any reason whatsoever, Concessionaire shall vacate the Concession Facilities and shall leave the Concession Facilities in good order, condition and repair, except for reasonable wear and use thereof. 17. ~ight of Injunctive Relief: In the event of a breach or threatened breach by any party of any of the covenants or provisions hereof, the non-breaching party shall have the right of injunction and the right to invoke any remedy allowed at law or in equity as if re-entry, summary proceedings and other remedies were not herein provided for. 18. Rights Not Exclusive: No right or remedy herein conferred upon or reserved tb any party is intended to be exclusive of any other right or remedy herein or by law provided but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity or by statute. 19. Right of Assignee of City: The right to pursue the remedies herein provided against the Concessionaire and to enforce all of the other provisions of this Agreement may, at the option of any assignee of this Agreement, be exercised by any assignee of the city's right, title and interest in this Agreement in its own name, any statute, rule of court, custom, or practice to the contrary notwithstanding. 20. Remedies Cumulative: Ail of the remedies hereinbefore gigen to any pa~ty and all rights and remedies given to them by law and equity shall be cumulative and concurrent. No termination of this Agreement or the taking or recovering the Concession Facilities shall deprive the City of any of its remedies or actions against Concessionaire or Guarantors for concession fees or sums due as if there has been no termination; nor shall the bringing of any action for concession fees or breach of covenant, or the resort to any other remedy herein provided for the recovery of concession fees be construed as a waiver of the right to obtain possession of the Concession Facilities. 21. Attorney's Fees: If any action is commenced to enforce any term, covenant or condition of this Agreement, the prevailing party in such action shall be entitled to all costs and expenses of said action (including reasonable attorney's fees) at trial and all appellate levels, from the unsuccessful party in said action. 11 22. Eminent Domain: (a) If all or any part of the Concession Facilities shall be taken under a power of eminent domain, the compensation or proceeds awarded for the taking of the land, the building(s) and/or improvements on the Concession Facilities shall belong to the City. Nothing herein shall prevent the City from seeking any and all damages sustained from the condemning authority by reason of the exercise of the power of eminent domain. (b) In the event the condemnation or taking is to such an extent that it is impracticable for the Concessionaire to continue operations in the Concession Facilities, this Agreement shall terminate. 23. identity of Interest: The execution of this Agreement or the performance'~ any act pursuant to the provisions hereof shall not be deemed or construed to have the effect of creating between the City and the Concessionaire the relationship of principal and agent or of a partnership or of a Joint venture and the relationship between them shall be and remain only that of City and Concessionaire. 24. Notices and Reports: Any notice, report, statement, approval, consent, d~s~'gnati0n,"demand or request to be given and any option or election to be exercised by a party under the provisions of this Agreement shall be effective only when made in writing and delivered (or mailed by registered or certified mail with postage prepaid) to the other party at the address given below: City: City of Sebastian Attention: City Manager P.O. Box 780127 Sebastian, Florida 32978 Concessionaire: DTF, Inc. 201 Plantation Club Drive, #1607 Melbourne, FL 32940 Guarantors: Dennis R. and Theresa L. Fink 201 Plantation Club Drive, #1607 Melbourne, FL 32940 provided, however, that any party may designate a different address from time to time by giving to the other parties notice in writing of the change. Concession fees to the City shall be made by the Concessionaire at the address listed above. 25. Nondiscrimination: The Concessionaire for itself, its personal repr~senta~±~es, successors in interest and assigns, 12 as part of the consideration hereof, does hereby covenant and agree as a covenant running with the land that (i) no person on the grounds of religion, gender, age, race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subject to discrimination in the use of the Concession Facilities; (ii) that in the construction of any improvements on, over or under the Concession Facilities and the furnishing of services thereon, no person on the grounds of religion, gender, age, race, color or national origin shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination. 26. Headings No Part of Agreement: Any headings preceding the texf 'bi the several paragraPh~ and subparagraphs hereof are inserted solely for convenience of reference and shall not constitute a part of this Agreement nor shall they affect its meaning, construction or effect. 27 Severabil%~y: If a provision of this Agreement is held inval~d,--~{ is h~reSy agreed that all valid provisions that are severable from the invalid provision remain in effect. If a provision in this Agreement is held invalid in one or more of its applications, the provision remains in effect in all applications. 28. Contains Ail Agreements: It is expressly understood and agreed by ahd among the parti~hereto that this Agreement, including the Exhibit, sets forth all the promises, agreements, and conditions or understandings between the City, Concessionaire and Guarantors relative to the Concession Facilities, and that there are no promises, agreements, conditions or understandings, either oral or written, among them other than are herein set forth. It is further understood and agreed that, except as herein otherwise provided, no subsequent alteration, amendment, change or addition to this Agreement shall be binding upon the City or Concessionaire unless reduced to writing and signed by them. 29. Assignment: Concessionaire shall not assign Concessionaire'§ rights and obligations under this Agreement without the written consent of the City, which may be denied for any reason by the City. 30. Heirs and Assignees: Ail rights and liabilities herein given 'to, or imposed upon, the respective parties hereto shall extend to and bind the several and respective heirs, executors, administrators, successors and assigns of said parties; and if there shall be more than one Concessionaire or Guarantor, they shall all be bound Jointly and severally by the terms, covenants and agreements herein, and the word "Concessionaire,. or "Guarantors" shall be deemed and taken to mean each and every person or party mentioned as a Concessionaire or Guarantor herein, be the same one or more; and if there shall be more than one Concessionaire or Guarantor, any notice required or permitted by 13 the terms of this Agreement may be given by or to any one thereof, and shall have the same force and effect as if given by or to all thereof. The words "his" and "him" or "its" wherever stated herein, shall be deemed to refer to the "City," "Concessionaire," or "Guarantor" whether such City, Concessionaire, or Guarantor be singular or plural and irrespective of gender. No rights, however, shall inure to the benefit of any assignee of Concessionaire unless the assignment to such assignee has been approved by the City in writing as aforesaid. 31. Concessionaire Forbidden to Encumber Concession Facilities: I~'""iS expressly agreed and unders{~d bet~en the ~ar~'ies hereto that nothing in this Agreement shall ever be construed as empowering Concessionaire to encumber or cause to be encumbered the Concession Facilities in any manner whatsoever. In the event that regardless of this prohibition any person furnishing or claiming to have furnished labor and materials at the request of Concessionaire, or any person claiming by, through or under Concessionaire, shall file a lien against the Concession Facilities, Concessionaire shall, within thirty (30) days after being notified thereof, cause such lien to be satisfied of record or cause the Concession Facilities to be released therefrom by the posting of a bond or other security as prescribed by law, or shall cause same to be discharged as a lien against the Concession Facilities by an order of a court having Jurisdiction to discharge such lien. In the event the lien is not discharged as required above, the City may advance funds necessary to discharge the lien and recover any amounts so paid from Concessionaire. 32. FAA ADproval and Regulation: Concessionaire and the City acknowledge tha~"'thts Agreement maybe subject to approval by the Federal Aviation Administration ("FAA"). The parties, therefore, agree that in the event FAA approval is required and the FAA refuses to either grant its approval or issue a letter of no objection with respect to this Agreement, the parties shall modify the terms of this Agreement in the manner and to the extent necessary in order to obtain the FAA's approval. In the event any such modification would serve to materially increase the obliga- tions of a party hereunder, the affected party may terminate this Agreement upon giving thirty (30) days advance written notice to the non-affected party. 33. Division of Alcoholic Beverages and Tobacco Regulation: Concessi0na~re ahd 'the ~ty a~knowle~ge that ih '0rd~ for Concessionaire to secure and maintain the alcoholic beverage licenses required hereunder, this Agreement must comply with certain regulations of the Florida Department of Business Regulation, Division of Alcoholic Beverages and Tobacco. The parties, therefore, agree that in addition to those rights previously granted to Concessionaire herein, Concessionaire shall have access to the entire golf course and all facilities located thereon to the extent necessary to secure and maintain the required 14 alcoholic beverage licenses. Concessionaire shall also have the right to refuse to sell alcoholic beverages to patrons of the golf course, or its facilities, who are not golf course club members or their nonresident guests. The City hereby agrees to prohibit, on the golf course and in all facilities located thereon, the possession or consumption of alcoholic beverages not sold by Concessionaire. 34. Personal Guaranty: (a) Guaranty: Guarantors, Jointly and severally, do hereby guarantee onto the City the full, complete, faithful and timely performance of each and every of the obligations, covenants and agreements which Concessionaire is required to do or perform or cause to be done or performed from and after the execution of this Agreement and for so long as said Agreement remains in effect including, but not limited to, the payment of all concession fees and other sums required to be paid pursuant to this Agreement. (b) Enforcement: The City shall have the right to proceed against Concessio~aire without first proceeding against Guarantors, and shall have the right to proceed against an individual Guarantor without proceeding against Concessionaire or the other individual Guarantor, and the City shall, and does have the right to, release Concessionaire or an individual Guarantor from any and all liability under this Agreement or under this Paragraph 34 and the same shall not in any way prejudice the rights of the City against Concessionaire or the other Guarantor not so released. (c) Defenses: No defense which Concessionaire or an individual Guara~'%°r may have with respect to this Agreement (including, but not limited to, any defense based upon or arising from any insolvency or bankruptcy or otherwise) shall operate as a defense with respect to the other Guarantor, the other Guarantor remaining fully liable hereunder to the City. Nor shall any waiver by the City of any of the obligations of Concessionaire or the modification or amendment of this Agreement in any manner by the City and Concessionaire operate to release Guarantors from any obligations or liabilities under this Agreement; Guarantors being bound by, and deemed to consent to, any such waiver, modification or amendment. (d) Notice: Guarantors shall be deemed to have notice of any matter or ~-ing as to which Concessionaire has notice. Guarantors hereby waive any right to notice of any matter or thing as to which Concessionaire is not entitled to notice under this Agreement. (e) Remedies Cumulative: The rights and remedies of the City under this Paragrap~ 34 are in addition to and not in lieu of the City's rights and remedies provided by law or under other 15 provisions of this Agreement in the event of a default by Concessionaire. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. Attest: Ka~n M. O'Halloran, CMC/J%AE City Clerk CITY OF SEBA~~ V,~-<"q~I. Cony~i,~yor ...... (SEAL) Approved as to form C~RLES IAN NASH, City Attorney CONCESSIONAIRE: DTF, INC. DENNIS R. FINK, President GUARANTORS: DENNIS R. FINK THEI~ESA L. ~INK~-~ 16 CONCESSION AGREEMENT SEBASTIAN MUNICIPAL GOLF COURSE c,This Concession Agreement, made and entered into tlds ~k~_ day of ~e~luv~., 1994, by and among the City of Sebastian, Florida, a Florida corporation located in Indian River County, Florida (hereinafter referred to as the 'City'), and DTF, Inc., a Florida corporation (hereinafter referred to as 'Concessionaire') and Dennis P,. Fink and Theresa L. Fink, individually, who reside at 1055 Barber Street, Sebastian, Florida 32958 (hereinafter collectively referred to as 'Guarantors'). WITNESSETH: WHE~, the City operates a municipal golf course, the facilities of wlfich include a clubhouse and snack bar, and WHEREAS, fl~e City desires that a food service concession be made available witlfin the clubhouse and snack bar facilities to provide food and refreslunents for file better acco:ranodation, convenience and welfare of the general public using said goff course; and WHEREAS, Concessionaire possesses substantial experience in the food service industry; and WHEREAS, tJ~e City and Concessionaire desire to enter into an agreement whereby Concessionaire is granted the exclusive right to provide food services in the clubhouse and snack bar facilities located on the golf course; and WHEREAS, Guarantors have a financial interest in Concessionaire and desire to induce the City to enter into tiffs Agreement with Concessionaire by providing the guarantees set forth herein. NOW, THEREFORE, in consideration of die premises, fl~e covenants, terms and conditions to be performed as set fortl~ hereinafter, the receipt and sufficiency of wkid~ are hereby acknowledged, the parties hereto have agreed and do agree as fo[lows: 1. LICENSE: Subject to d~e terms and conditions set forth in this Agreement, the City hereby grants to Concessionaire an exclusive, nontransferable and personal license to operate a food service business in the clubhouse and snack bar located on the City's municipal golf course, as more particularly described in Exhibit "A' attached hereto and by riffs reference incorporated herein (hereinafter referred to as the ~Concession Facilities"). B:\GCLEASEWPD P~ge 1 2. TERM: The term of this Agreement shall/be for five (5) years commencing on .] ~ , 1994 and ending on NcorE/r~£-,r_> /~ , 1999, unless earlier terminated as provided herein (the 'Term"). So long as Concessionaire is not in default of any term, condition or covenant provided herein, Concessionaire shall have the option to renew this Agreement for one (1) additional five (5) year period (the "Option Term') by providing ti~e Cit~ with written notice of Concessionaire's decision to exercise said option sixty (60) days pri~r to the expiration of the current tem~ or option term sixty (60) days, as the case may be. Following the expiration of the final option term, tiffs Agreement, and the terms, conditions and obligations prox4ded herein, shall continue in full force and effect until such time as either party shall elect ~o terminate this Agreement. An election to terminate this Agreement snail not be effective unless the electing party, shall give the non-electing party written notice of such election at least sixty (60 days) days prior to the effective date of termination. _q. CONCESSION FEE: (a) Basic concession fee: Concessionaire hereby agrees to pay the City, in return for the license granted herein, the basic concession fee of fifxeen thousand ($15,000.00) dollars per year ($7.58 per square foot times 1980 square feet), payable in equal montifly installments of one thousand two hundred and fdty ($ 1,250.00) each, on ti~e fa. st day of ead~ calendar monfl~ commencing on , 1994 and continuing on each successive monti~ thereafter for as long as tiffs Agreement remains in effect. Any pa~nent not received by the first of each month shall be subject to a late fee of 1.5% of the amount due per month until paid. (b) A_djustments to basic concession fee: The basic concession fee shall be adjusted ax the end of each five year temi, for the subsequent term, by the average of each annual Constuner Price Index (CPI) increase fofall urban consumers for the southeast region as published by a national financial newspaper, such as the Wall Street loumal, for the previous five year period. Additionally, ff the City expands the restaurant area, the basic concession fee shall be increased by ti~e then-current square footage charge multiplied by the additional square footage of restaurant area added. (c) Alcoholic beverage ~oss receipts l~ercentage fee:. In addition to the basic concession fee set forth above, Concessionaire shall pay to the City, on a monti~ly basis, ten percent (10%) of Concessionaire's alcoholic beverage gross receipts (sales less sales tax) as determined under and according to the terms set forth in Paragraph 6(i) of tiffs Agreement. 4. USE OF EQUIPMENT: Concessionaire shall be entitled to use the equipment proxfded by the City and listed on Exhibit B which is attached hereto and incorporated herein by this reference. B:\GCLF~$F~WPD Page 2 Concessionaire shall maintain all equipment used in tl~e operation of the Concession Facilities, whether such equipment is owned by the City. or by Concessionaire, subject to normal wear and tear. Concessionaire shall indemnify the City against any loss, theft or damage of the equipment proxdded by the City when said loss, theft or damage is the result of the fault or negligence of Concessionaire, its employees or agents. Concessionaire shall promptly repair or replace equipment wlfich is lost, stolen or damaged witlfin five (5) days of such loss, theft or damage. Upon the expiration or termination of the Agreement, Concessionaire shall return to the City all equipment listed on Exlfibit B. Concessionaire agrees to pay the CiD, an amount equal to the current replacement price of each item not returned, or returned in an unserviceable condition, ordinary wear and tear excepted. In the event of the termination, or upon the expiration, of this Agreement, the City shall have the first option of purchasing, for an amount ascertained by negotiations, any or all of the property belonging to Concessionaire and used by Concessionaire in the performance of its obligations hexeunder, including but not limited to, furniture, furnishings, equipment, utensils, food, beverages and miscellaneous supplies on hand, but not including property initially supplied by the City or property purchased by Concessionaire to replace property initially supplied by the City, all of wlfich shall remain the property of the City, which option shall be exercised by the City within flfirty (30) days prior to the date of the termination or expiration of this Agreement Concessionaire shall conduct a physical inventory of all City-owned equipment on September S0 each fiscal year and report same to the City not later than the tenth ( I O) of October. Concessionaire shall also have the exclusive right to use and to exercise control over any and all vending maclfines located in or about the Concession Facilities wltich dispense food or beverages. The City shall be responsible for all maintenance, repair and replacement of Concession Facilities, such as but not limited to, air conditioning and heat units and roof except for repairs made necessary by the .$ault or negligence of Concessionaire, its employees or agents. Concessionaire shall be responsible for all maintenance, repair and replacement of operating equipment used in the operation of a food and beverage business. 5. CONTINUOUS OPERATION: Concessionaire shall operate a food serxdce business in the Concession facilities seven (7) days a weelq including all holidays except Cl~ristmas, during the normal hours of operation of the golf course. Concessionaire shall have the option of opening d~e Concession facilities, or remaining open for business, on those days the golf course is closed due to inclement weather. Concessionaire shall open the Concession facilities for business one- half (1/2) hour prior to fl~e first tee ~ne and close no earlier than one ('l) hour after the course is closed to the public. Concessionaire shall ensure that food services shall be available for tournaments, special events and meetings. Concessionaire may operate a golf can. as a hospitality cart at such times and in such a manner as mutually agreed upon by the Concessionaire and the City, with the fee for use of such cart included in the basic concession fee. 6. OPEKATION AND MANAGEMENT: B:\GCI.E~SE.WI~D ?,,ge 3 (a) $!.andards of....pperation: Concessionaire shall operate the Concession facilities in a businesslike manner appropriate to the image of a golf course operation. The operation of the Concession facilities shall be conducted in an orderly manner, without usmecessarv disruption to the golf course operations. The City hereby reserves the right to review'and give final approval, tkrough the City Manager or his designee, on all facets of the operation of the Concession facilities, including, but not limited to, cleanliness, decor, entertainment, menu, prices, hours of operation, parking and employees. (b) ~ Concessionaire's president shall be available during hours of operation and sluall act as manager of the Concession facilities. If Concessionaire's president shall at any time be absent from the Concession £acilities during hours of operation, Concessionaire shall designate a facilities manager to act in Concessionaire president's place. (c) ~ Concessionaire sluall bear sole responsibility for the continuous staffing of the Concession facilities. Concessionaire shall ensure that sufficient employees are on hand at all times to provide outstanding service to the public. Concessionaire slmll regulate Concessionaire's employees so that they will be courteous and helpful to the public. Concessionaire shall have the exclusive duty and right to retain and terminate employees provided, however, that the City shall have the right to require Concessionaire to replace any employee who is abusive, under the irdluence of or who habituallv uses alcohol or drugs, or who is afflicted by diseases, or whose conduct or appearance otherwise detracts from the Concession facilities' reputation and profitability. Concessionaire hereby agrees to adhere to the City's Drug Free Workplace Policy, Exlfibit C, in the operation of the Concession facilities. (d) Menu: Concessionaire shall provide the public with food and drink of a lfigh standard, equivalent in quality and price to that generally furnished to the public at sintilar places of comparable size and scope in the City and surrounding areas. Prices for all food and drink items slmll be posted in a conspicuous place in the Concession facilities. Concessionaire shall also post, in a conspicuous place in the Concession facilities, a notice wlfid~ identifies Concessionaire as the owner and operator of the concession. An identical notice shall be included on Concessionaire's menu. (e) Cleaningl Concessionaire shall keep all fixtures, .equipment and personal property wltich are located in the Concession facilities, wliether owned by Concessionaire or the City, in a clean, sanitary and orderly condition at all times, and conduct the food service operation strictly in accordance with all applicable rules, regulations and code requirements including, but not limited to, the Health Department, Indian River Count3, unit. Concessionaire shall also be responsible for maintaining the floors of the kitchen, storeroom and dfifing areas in a dean and orderly state. In the event Concessionai_re violates any Health Deparunent rule or regulation, the City may, at its option, take any steps it deems appropriate to cure said violation, and Concessionaire shall reimburse the City for any and all expenses incurred by the City in doing so. Concessionaire B:\GCLF~$KWPD Page 4 slmll be responsible for the storage and collection of solid waste which costs are included in the basic concession fee. Concessionaire may, with the concurrence of the City Manager or Iris designee, select a site on the golf course property for storage of such solid waste. (f) Compliance with laws: Concessionaire shall comply with all requirements of any of the duly constituted public authorities and with the terms of any state, federal or local law, ordinance or regulation applicable to Concessionaire or Concessionaire's use of the Concession facilities, and indemnify, defend and hold the City Imrmless from penalties, fines, costs or damages resulting from Concessionaire's failure to so comply. (g) Ale0holic beverage license: Concessionaire shall secure and maintain a SAX liquor license from the Florida Department of Business Regulation, Division of Alcoholic Beverages and Tobacco. Said license in non-transferable and reverts to the City upon expiration or termination of the Agreement- (h) Licens, es and~permit.s.: Concessionaire shall be responsible for and shall secure the necessary pemiits and licenses required for the operation of the Concession facilities. (i) Books and records: Concessionaire shall maintain, during the Tem~ of this Agreement, or renewal or extension thereof, all books, reports and records customarily maintained in shnilar type operations. The form of all such records and reports shall be subject to d~e approval of the Ci ,ty's auditors. The City or its agents may audit or examine all records relating to Concessionaire's operation during Concessionaire's normal business hours. On or before the tenth (10th) day following the end of each calendar month tkroughout the Term of the Agreemgnt, or renewal or extension thereof, Concessionaire shall furnish to the Cit3;s Finance Deparm~ent and Golf Course Manager a report of gross receipts earned on the sale of alcoholic beverages during the preceding calendar month, on forms approved by the City. The said reports shall be signed by Concessionaire who shall certify the accuracy of sud~ reports. Montlfly gross receipts percentage fees due pursuant to Paragraph 3 (c) of this Agreement shall be paid with die submission of these reports. Concessionaire shall submit to die Cit'fs Finance Department a quarterly financial report detailing the alcoholic beverage purchases and sales occurring during said period, prepared by a certified public accountant. Concessionaire shall permit, at any thne and at the City's expense, a report to be prepared and certified by an independent certified pubhc accountant, as to the correct amount of grois' liquor receipts per month arising from said operation; wltld~ shall be prepared in eorffonnance with the American Institute of Certified Public Accountants requirements for "Special Reports." Concessionaire shall pay all costs associated with said report in the event that Concessionaire's quarterly report, varies by more than three percent (3%) of the report prepared by the City's independent certified public accountant. Concessionaire hereby agrees that it shall keep and preserve for at. least, three (3) years, all books and records of business activities transacted during the Term of flxis Agreement, or renewal or extension thereof. B:\GCLF_~SEW'PD ?~ge 5 (}) hnprovements: Concessionaire shall have the righ~ to improve the Concession facilities, subject to the approval of the CiD' Manager or his designee. All costs of any improvements shall be borne by .Concessionaire. All improvements made to the Concession facilities shall become the property, of the City upon their construction or installation. Major remodeling or expansion shall be coordinated with the City. (k) Debts_and obligations: Concessionaire sNall pax, promptly when due all bills, debts and obligations incurred in connection with the operation of the Concession facilities, including social security and income tax witkholdings for and from its employees, and shall not permit such debts or obligations to become delinquent and sluall suffer no lien, mortgage, judgment, execution or adjudication in bankruptcy whid~ will in any way, impair the rights of the City under this Agreement- 7. UTILITIES: Concessionaire shall be responsible for and shall pay all costs associated with pest control and extermination services. Concessionaire shall be responsible for and shall pay all of its telephone expenses. Electricity, water, sewer and garbage collection at present levels of existing service on the date of tl~is Agreement are calculated and included in the basic concession fee. The City, wlfle providing water, does not guarantee its quality. Should reasonable quality municipal, County or private water and/or sewer services become available at the Concession facilities, the Concessionaire shall be required to connect to said system in accordance with applicable rules, regulations and policies. In the event that electric, water, sewer or garbage collection shall be separated into individual accounts for the City and the Concessionaire, the basic concession fee shall be reduced by a mutually agreed upon amount and Concessionaire shall pay its own utilities expense. 8: TAXES: Concessionaire shall pax', or cause to be paid before delinquency, any and all taxes levied or assessed wlfich become payable during the Term of tl6s Agreement, or renewal or extension thereof, upon all of Concessionaire's equipment, furniture, fix'cures and any other personal property located in the Concession facilities. In the event any or all of Concessionaire's improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the real property, Concessionaire shall pay to the City its share of such taxes applicable to Concessionaire's property. Concessionaire shall pay all sales and use taxes relating to the Concession facilities, and for any improoe'ments thereon, wlfich might arise or become due during the Term of Offs Agreement, or renewal or extension thereof, aa~d Concessionaire shall indemnify, defend and hold the City harmless against the same. 9: INSURANCE: (aX Workers Compensation Insurance: Concessionaire shall proxdde and keep in force at its own expense such worker's compensation as required by B:\GC'LE, ASE. WPD P~ge 6 Florida Statutes. In tile event Concessionaire or the City undertakes to i~nprove or remodel the Concession fa~ilities, Concessionaire sl~ll provide and keep in force as its own expense, workers compensation insurance on all personnel engaged in sucl~ activities and shall require any and all subcontractors to provide workers compensation insurance for all of said subcontractors' employees who are engaged in such work, unless such employees are covered by the protection afforded by Concessionaire's insurance. Concessionaire shall indemnify, defend and hold the City lu~dess from any and all claims or lawsuits resulting from injury to or actions of Concessionaire. (b) Lia]~iliw Insurance: Concessionaire shall provide and keep in force, at Concessionaire's owma expense, public liability and property damage insurance coverage with respect to the Concession facilities and all improvements made thereto. Tlie insurance coverage to be provided by Concessionaire shall contain limits of not less than five hundred thousand dolla~ ($500,000.00) for injury or death of any one person and one million dollars ($1,000,000.00) for injury or death for any one accident, together with one million dollars ($1,000,000.00) for damage to property. (c) Contra~ual Liabili~ Insurance: Concessionaire shall provide and keep iu force at Concessionaire's own expense, contractual liability insurance covering all liability arising out of the terms of fids Agreement. (d) Liquo.r_Liabili _fy Insurance: Concessionaire shall provide and keep in force at Concessionaire's own expense, liquor liability insurance containing limits of not less than one million dollars ($1,000,000.00) per occurrence. (e) Miscellaneous: Concessionaire shall furnish certificates of such insurance and copies of insurance policies to the City Clerk, 1225 Main Street, Sebastian, Florida 32958, at least fifteen (15) days prior to the commencement of operations under this Agreement, and a~mually thereafter. Said certificates shaU clearly name the City as an additional insured, and shall contain a clause specif)dng th.at the insurance carrier shall be obligated to advise d~e City in writing at least, tl~-ty (30) days in advance prior to the cancellation of any coverage. The City reserves the right to annually review and revise any policy of insurance required hereinabove, however any increase in amounts or types of coverage shall not be unreasonable or excessive. 10. INDEMNITY: Concessionaire shall indemnify, defend and hold the City harmless against and from any and all claims, costs, damages, iudgments, expenses and attorney's fees incurred by the City arising from Concessionaire's use of the Concession facilities or from the conduct of Concessionaire's business or from any activity, work, other firings done, permitted or suffered by Concessionaire or Concessionaire's employees, guests or invitees in or about Uae Concession facilities; from Concessionaire's failure to comply with any law, rule, regulation or order of any governmental authority; from any and all claims arising from any breach or default, in the performance of any obligation on Concessionaire's part to be performed B:\GCLF. ASKWPD Pacde 7 under the terms of tiffs Agreement; or, from an), emplo~vee, guest or invitee of Concessionaire, and, froan ali costs, attorney's fees and liabilities incurred in the defense of any such claim or action or proceeding brought thereon. Concessionaire, as part of the consideration to the City, hereby assmx~es all risks of damage to die property or injury to persons in, upon or about the Concession facilities, from any cause other than the Ciryas willful or intentional acts; and Concessionaire hereby waives all claims in respect thereof against the City,. Concessionaire slmll give prompt notice to the City in case of casualty or accidents in or about the Concession facilities. 1 1. ENTRY BY THE CITY: The City reserves, and shall at any and all times have, the right to enter the Concession facilities to inspect the same. The City also reserves the right, from time to time, at the City's own expense by its officers, agents and contractors, to make sue_h renovations, repairs, or dxanges, about and to the Concession facilities, other than those repairs or improvements undertakea~ by Concessionaire herein, as the City deems desirable, including renovation/replacement of the existing Concession facilities with new Concession facilities. Concessionaire hereby waives any claim for damages or for any injury or inconvenience to or interference with Concessionaire's business during such renovation, repairs or changes; provided, however, that concession fees shall be abated for any period during wlfich Concessionaire is prevented from conducting Concessionaire's business due to such renovations, repairs or dxanges. 12. DEFAULT BY CONCESSIONAIRE: The occurrence of any of the following shall constitute a default by Concessionaire: (a) Institution by Concessionaire or Guarantors of a voluntary proceeding in bankruptcy; (b) Institution of an involuntary p?oceeding in bankruptcy against Concessionaire or Guarantors ff sudx proceeding continues for a period of ninety (90) days; (c) Assig~unent by Concessionaire or Guarantors for the benefit of (d) Abandonment of the Concession facilities wlfich abandonment shall be Concessionaire's absence from flxe Concession facilities or the cessation of business in said Concession facilities for a period of seven (7) days or more; discontinuation of Concessionaire operations hereunder; (e) Nonpa~nent of an), stnu due heretmder, when sud~ nonpa~nent continues for a period of thirty (30) days after the due date for such pa~nent; (f) Nonperformance by Concessionaire of any covenant, tenn or B:\GGLF~$KW~D ~=ge 8 condition of Ods Agreement; or any other action or inaction constituting a breach of tiffs Agreement and the failure by Concessionaire to c~re such nonperfommnce or bread~ within dfirty (30) days of receiving a notice to cure from the City; (g) The conduct of any business or the merdmndising of any product or service by Concessionaire not specifically authorized herein; (h) A final judicial determination that any litigation instituted by Concessionaire against the City was groundless or frivolous to the extent that attome?s fees may be awarded pursuant to Section 57.105, Florida Statutes; (i) The lapse, suspension or revocation of any of Concessionaire's alcoholic beverage license, or other license or permit reqtfired to operate the Concession facilities; (j) The issuance by the City, pursuant to Paragraph 13 below, of tiuee (3) or more notices of breach witlzin any twelve (12) month period. 13..REM.EDIE..S O.15 THE CITY: In the event of any default as described above or breach by Concessionaire, the City shall provide written notice to Concessionaire of such default or breach and the Concessionaire shall have fifteen (15) days within which to cure sudx default or breach. In the event Concessionaire fails to cure said default or breach witlfin said fifteen (15) day period to the satisfaction of the City, die City may, at any time thereafter, at its sole discretion, with or without notice or deanand and without ~uiting the City in the exercise of a right or remedy wlxich ti~e City may have by reason of such default or bread~: (a) Terminate this Agreement, in whid~ case Concessionaire shall hmnediatelv vacate the Concession facilities and die CiD' shall be entitled to recover from Concessionaire all damages incurred b), the City by reason of Concessionaire's default including, but not lbnited to, die cost of recovering possession of the Concession facilities, necessary costs for the renovation and alteration of the Concession facilities and reasonable attorne)~s fees; (b) Pursue all other remedies now or hereinafter available to the City under the laws or judicial decisions of the State of Florida. 14. CONCESSIONAIKE'S RIGHT TO TERMINATE: Concessionaire shall have the right to tenuinate this Agreement upon tl~y (30) days advance written notice to the City upon the occurrence of any of the following: (a) issuance by a court of competent jurisdiction of any permanent injunction substantially restricting the use of the Concession facilities for commercial B:\GCI.F_~$1~WPD P~ge 9 purposes when said in}unction rmnains in force for ninety (90) days or more; (b) A breach by the City. of any of the terms or conditions of this Agreement and failure by the City to remedy such breach during a period of ~ (30) days after receipt of written notice of the existence of such breach; (c) The assumption by the United States Government or any age. nfl thereof, or anv~ other governmental agency, of the operation, control or use of the Concession facilities or any substantial part thereof in sud~ a maimer as to substantially restrict Concessionaire's operations for a period of ninety (90) days or more. 15. DAMAGE TO CON,CEs,SION FACILITIES: In the event that the Concession Facilities are destroyed or damaged by fare or other casualty so as to render the Concession facilities unfit for their intended use, this Agreement. shall be suspended until sud~ time as the Concession facilities are again rendered fit for their intended use. The City shall be under no obligation to rebuild or repair the Concession Facilities in the event, they are damaged or destroyed. In the event the City elects not to rebuild or repair the Concession facilities, it shall notify Concessionaire of same and, upon fumisking such notice, this Agreement shall terminate. 16. VACAT!ON,,OF CONCESSION FACIL.ITIE$.: On the exTirafion or other termination of this Agreement, for any reason whatsoever, Concessionaire shall vacate the Concession facilities and shall leave the Concession facilities in good order, condition and repair, except for reasonable wear and use thereof. 17. RIGHT OF INi .U. NCTIVE RELIEF: In the event of a bread~ or threatened bread~ by any party of any of the covenants, or provisions hereof, the non-breadfing party shall have the right of injunction and the right to invoke any rea~,edy allowed at law or in equity as if re-entry, summary proceedings and other remedies were not herein provided for. 18. RIGHTS NOT EXCLUSIVE: No right or remedy herein conferred upon or reserved to any party i~ -intended to be exclusive of any other right or remedy herein or by law provided but eada shall be cumulative and in addition to every other right or remedy given herein or now or hereafter exSsting at law or in equity or by statute. 19. RIGHT OF ASSIGNEE OF CITY: The fight to pmsue the remedies hereh~ provided agah~st the Concessionaire and to enforce all of the other provisions of tlfis Agreement may, at the option of any assignee of fids B:\G;CLF_~SKWPD l~ge 10 Agreement, be exercised by any assignee of the Cir)/s right, tide and interes~ in tids Agreement h~ its own name, an), statute, rule of court, custom, or prae~ce to ~he contrary notwithstanding. 20..REMEDIES CUMULATIVE: All of the remedies hereinbefore g/yen to an)' party and all rights and remedies g/yen to tl~em by law and equity, shall be cumulative and concurrent. No termination of 'd~is Agreement or d~e taking or recovering the Concession tidlities shall deprive rJ~e City of any of its remedies or actions against Concessionaire or Guarantors for concession fees or sums due as ff d~ere lms been no temonation; nor shall the bringing of any action for concession fees or breach of covenant, or the resort to any other remedy herein provided for the recovery of concession fees be construed as a waiver of the right to obtain possession of the Concession facilities. 21. ATTORNEY'S FEES: If any action is commenced to erdorce any term, covenant or condition of dxis Agreement, the pm-vailing party in sudx action shall be entitled to all costs and expenses of said action (including reasonable attomeyfs fees) at trial and all appellate levels,/rom die unsuccessful party in said action. 22. EMINENT DOMAIN: (a) if all or any part of the Concession facilities shall be taken under a power of emknent domain, the compensation or proceeds awarded for fl~e taking of the land, the building(s) and/or improvements on the Concession facfilities shall belong to d~e City. Nothing contained herein shall prevent the City from seeking an]>' and all damages sustained from the conde~mxing audmrity by reason of d~e exercise of the power of eminent domain. (b) In the event fl~e condenmation or taking is to such an extent that it is hnpraeticable for the Concessionaire to continue operations in d~e Concession facilities, tlfis Agreement shall tenuinate. 23. IDENTITY OF INTEREST: The execution of Offs Agreement or the performance of any act pursuant to d~e provisions hereof shall not be deemed or construed to have the effect of creating between the City and the Concessionaire, file relationship of prhmipal and agent or of a partnership or of a joint venture and the relationship between them shall be and remain only that of City and Concessionaire. 24. NOTICES AND REPORTS: B:\G~LF. ASEWPD Pa~e 11 Any notice, report, statement, approval, consent, designation, demand or request to be given and any option or election to be exercised by a party under the provisions of this agreemem si(ali be effective onlv when made in writing and delivered (or mailed by registered or certified mail with l~ostage prepaid) to the other party at the address given below:. City: City of Sebastian Attention: City Manager 1225 Main Street Sebastian, Florida 32958 Concessionaire: DTF, Inc. 1055 Barber Street Sebastian, Florida 32958 Guarantor~: Dennis tL and Theresa L. Fink 1055 Barber Street Sebastian, Florida 32958 provided, however, that any party may designate a different address from time to time by giving to the other parties notice in writing of the d~ange. Concession fees to the City shall be made by the Concessionaire at the address listed above. 25. NONDISCRIMINATION: The Concessionaire for itself, its personal representatives, successors in interest and assigns, as pan of the consideration hereof, does hereby covenant and agree as a covenant mmaing with fl~e land that (i) no person on the grounds of religion, gender, age, race, color, or national origin shall be excluded from participation in, denied the benefits of, or be otherwise subiect to discriJnination da the use of the Concession facilities; (ii) that in the construction of any improvements on, over or under tl(e Concession facilities and the furnisking of sen4ces thereon, no person on the grounds of religion, gender, age, race, color or national origin shall be excluded from participation in, denied fl~e benefits of, or otherwise be subiected to discrimination. 26. H ..EAD!NGS NO PART OF AGREEMENT: Any headings preceding the text of the several paragraphs and subparagraphs hereof are inserted solely for convenience of reference and shall not constitute a part of flxis Agreement nor shall they affect its meaning, construction or effect- 27. sE\rERABIL. ITY; If a prox,ision of fids Agreement is held invalid, it is hereby agreed flaat all valid provisions that are severable from the invalid prox'ision remain in effect. If a provision in tiffs Page 12 B:\GCI.F. ASE. WPD Agreement is held invalid in one or more of irs appBcations, fl~e provision remains in effect in all appBcations. 28. CONTAINS ALL AGREEMENTS: It is expressly undexmood and agreed by and among the parties hereto that this Agreement, including the Exhibits, sets forfl~ all the promises, agreements, and conditions or understandings between the City, Concessionaire and Guarantors relative to the Concession Facilities, and that there are no other promises, agreements, conditions or understandings, either oral or written, among them other than are herein set forth. It is furd~er understood and agreed that, except as herein otherwise provided, no subsequent alteration, amendinent, d~ange or addition to this Agreement shall be binding upon the City, or Concessionaire unless reduced to writing and signed by them. 29. ASSIGNMENT: Concessionaire shall not assigm Concessionaire's rights and obligations under tiffs Agreement without the written consent of the City, wltich may be denied for any reason by the City. 30. HEIRS AND ASSIGNEES: All rights and liabilities herein given to, or imposed upon, the respective parties hereto shall ex-tend to and bind d~e several and respective heirs, executors, achninistrators, successors and assigns of said parties; and ff there shall be more than one Concessionaire or Guarantor, they shall all be bound jointly and severally by the terms, covenants and agreements herein, and the word "Concessionaire' or "Guarantors" shall be deemed and taken to mean ead~ and every person or party mentioned as.a- Concessionaire or Guarantor herein, be the same one or more; and ff there shall be more than one Concessionaire or Guarantor, any notice required or permitted by the terms of Otis Agreement may be given by or to any one thereof, and shall have the same force and effect as ff given by or to all thereof. The words "his" and "l~n" or "its' wherever stated herein, shall be deemed to refer to the "City', "Concessionaire', or "Guarantor" whether such City, Concessionaire, or Guarantor be singular or plural and irrespective of gender. No rights, however, shall inure to the benefit of any assignee of Concessionaire unless the assigmnent to gu'ch assignee has been approved by the City in writing as aforesaid. 31. CONCESSIONAIRE FORBIDDEN TO ENCUMBER CONCESSION FACILITIES: It is expressly agreed and tmderstood between the parties hereto that notlting in Otis Agreement shall ever be construed as empowe~ag Concessionaire to encuanber or cause to be encumbered the Concession facilities in any manner whatsoever. In the event that regardless of dos prohibition any person furnishing or claiming to have furnished labor and B:\GCLEA.SF,.WPD Page 13 materials at the request of Concessionaire, or any person claiming by, tkrough or under Concessionaire, shall f-fie a lien against the Concession facilities, Concessionaire shall, witkin tltirt3, (30) clays after being notified thereof, cause such lien to be satisfied of reeorcl or cause the Concession facilities to be released therefrom by the posting of a bond or other security as prescribed by lag', or shall muse same to be disdmrged as a lien against the Concession facilities bv an order of a court having }urisdiction to discharge sud~ lien. In the event the lien is'not disd~arged as required above, the City may advance funds necessary to discharge the lien and recover any amounts so paid from Concessionaire. 32. FAA APPROyAL 8.,ND REGU.I-AT!.0N: Concessionaire and the City acknowledge tl~at fids Agreement may be subject to approval by the Federal Aviation Administration ("FAA'). The parties, therefore, agree that in the event FAA approval is required and the FAA refuses to either grant its approval or issue a letter of no objection with respect to this Agreement, the parties shall modify the terms of this Agreement in the manner and to the extent necessary in order to obtain the FAA's approval. In the event any sud~ modification would serve to materially increase the obligations of a party hereunder, the affected party may temxinate this Agreement upon giving fifixxy (30) days advance notice to the non-affected party. 33. DIVISION OF ALCOH. OL!C BEVERAGES AND T.0BACCO REGULATION: Concessionaire and the City acknowledge that in order for Concessionaire to secure and maintain the alcoholic beverage licenses required hereunder, this Agreement must comply with certain regulations of the Florida Department of Business Regulation, Division of Alcoholic Beverages and Tobacco. The parties, therefore, agree that in addition to those tights previously granted to Concessionaire herein, Concessionaire shall have access to the entire golf course and all facilities located thereon to the extent necessary to secure and maintain the required alcoholic beverage licenses. Concessionaire shall also have the right to refuse to sell alcoholic beverages to patrons of the golf c.ourse, or its facilities. The City hereby agrees to prolfibit, on the golf course and in all facilities located thereon, the possession or consmnption of alcoholic beverages not sold by Concessionaire. 34. PERSONAL G..U. ARANTY: (a) Guaranw: Guarantors, jointly and severally, do hereby guarantee onto the Ciw, the full, complete, faitlfful and ~nely performance of eacl~ and every of the obligations, covenants and agreements whid~ Concessionaire is required to do or perfonn or cause to be done or perfom~ed ftom and after the execution of this Agreement and for so long as said Agreement remains in effect including, but not limited to, the pay~nent of all concession fees and other stuns required to be paid pursuant to this Agreement. (b) Enforcement: The City shall have the right to proceed against Concessionaire without first proceeding agahast Guarantors, and shall bare the right to B:\GCLF.~SE.WPD Poge 14 proceed against, an individual Guarantor without proceeding against Concessionaire or the off,er individual Guarantor, and the city. shall, and does have the right to, release Concessionaire or an individual Guarantor from any and all Bability under this Agreement or under fids Paragraph 34 and the same shall not in an), way prejudice the right of the City. against Concessionaire or the other Guarantor not so released. (c) Defenses: No defense wlfieh Concessionaire or an individual Guarantor may have with respect to this Agreement (including, but not limited to, any defense based'upon or arising from an), insolvency or bankruptcy or oth~wise) shall operate as a defense with respect to the other Guarantor, the other Guarantor remaining fully liable hereunder to the city. Nor shall an~v waiver by the City of any of the obligations of Concessionaire or the modification or amendment of this Agreement in any manner by the City and Concessionaire operate to release Guarantors from any obligations or liabilities under this Agreement; Guarantors being bound by, and deemed to consent to, any such waiver, modification or amendment- (d) Notice: Guarantors shall be deemed to have notice of any matter or fixing as to whid~ Concessionaire has notice. Guarantors hereby waive any right to notice or any matter or tiring as to wldd~ Concessionaire is not entitled to notice under tlzis Agreement~ (e) ..Remedies Cumulative: The rights and remedies of the City under this Paragraph 34 are in addition to and not ha lieu of the City's rights and remedies provided by law or under other provisions of this Agreement in the event of a default by Concessionaire. B:\GCLF_ASF~WPD Pc~ge 15 IN Vv'ITNESS VVHEREOF, the parties hereto lmve set their lmncls and seals 'd~e day and year first above written. KatluTn M. O'Halloran, Arthur L. Firtion, Mayor CMC/AAE City Clerk (SEAL) Approved as to fonn and content: Clifton A. McClelland ir, City Attorney CONCESSIONAIRE: DTF, INC. Dmmis R. Fi{~k, President GUARANTORS: Dennis iL Fink Theresa L. Fink B:\G~I,FASKWPD Poge 16 RE~ r 7~ io sm ~40 " " -~ 7o GOLF COURSE RESTAURANT APPENDIX A HICROWAVE OVEN S1EAnIABLE ]CEMAKER I10! DOG SIEAHER REFRIGERATOR SAIIDWI£11 TABLE ZENITII TELEVISION CASll REGISlER MOBILE BEER COOLER REFRIGERAiDR HEAT SLICER SIOVE HOOD FAN ICE BIN IRAULSEN FREEZER lABLES AND CIIAIRS POIS/PANS- tI~ltE~ PICNIC TABLES TWO KEG BEER COOLER BOTTLE COOLER BAR SINK COUNIER TOP ELECTRIC COUNIER lOP ELECTRIC BLENDER REVISED JAN., 199q EOUIPMENT GRILL FRYER INVENTORY GOLF COURSE RESTAURANT/CONCESSION LEASE WORKSHEET ~0POSED RENT: SQUARE FEET tRESTAURANT 990 KITCHEN 5401 STORAGE 70 1/2 RESTROOMS 249 1/2 HALLWAY 132 TOTAL SQ. FT. 198~1 RATE ANNUAL RENT ROUNDING TOTALRENT $7.57 $14,996.17 3.83 $1,5,ooo.oo 'CURRENT FEES MONTHLY RENT $232 PER MONTH 10% LIQUOR SALES COMMISSION UTILITIES AT APPROX. ,$900 mo. 60% OF TOTAL $2,784.00 6,500.00 10,800.00 TOTAL DIFFERENCE UTILITIES AT 1/3 OR 33.3% OF TOTAL $5,994.00 (s5,o84.oo) $910.00