HomeMy WebLinkAboutRESOLUTION 1989-71,!
Suggested by~ Council
RBSOLUTXON NO. 89-7X
A REaOLUTXOH OF THE COUNCIL OF THE CITY OF KBNAI, ALASKA,
AWARDING LFASES FOR THE KENAI HUNICIFAL AIRPORT TERMINAL
RESTAURANT AND BAR TO LOUIS AND THBRESE SCHILLING AS SBT FORTH IN
THE ATTACHED DRAFT LEASES.
WHEREAS, on two occasions the City has requested proposals tO
lease the restaurant and bar concessions and has received no
responses; and
WHEREAS, subsequent to the second solicitation of proposals,
Louis and Theresa Schilling proposed to lease the £aeilities
under terms set out in their September 20, 1989 letter, and-
WHEREAS, the Council o£ the City o£ Kenai has determined that
Louis and Theresa Schtlling°s leases which would bo in the best
interest o~ tho City.
NOW, THEREFORE, BB IT RESOLVED .BY THE COUNCIL OF THE CITY OF
KBNAZ, ALASKA, that leases o£ the KBNAZ HUNZCXPAL AIRPORT
TERHINALRBSTAURAHTAND BAR concessions be awarded to LOUIS AND
THERESE $CHZLLZ#G as described in the attached dTa~t lease
proposals.
PASSED BY THE COUNCIL OF THE CITY OF
o~ October, 1989.
KENAI, ALASKA,
this 4th day
.%
, MAYOR
ATTESTs
Approved by Finance:
September 20, 1989
William Bzighton
City Manage~:
City Of ~mai
Bid Offer For The Airport Restaurant & Lounge
Dear Mr. Bri§hton:
This is an offer to lease the cocktail lotm§e and restaurant at
the Kenai Mtmicipal Airport.
It is our understandin§the tenant in the lounge and restaurant
will. be required to furnish all necessary fuxniture and.seating.
It xs umderstood that the City would provide utilities z.e. electricity,
sewer and water , all fixtures and walid liquor license free of all
encrumbrance.
As a tenant, we would agree to the conditions as established by the
- City for oCCUpanCy of the lounge' ~d restaurant and w~uld a~ree, to_
compensate the City at the following monthly rates:
Lounge: Restauzant:
$ 1,250.00
1,750,00
2,500. O0
750.00
1,000.00
1,250.00
First 18 runs. period
Next 12 months
Final 2% years
The above' lease agreement w~ld last for a total of five years,
cancellable by the 'lessee at any time given thirty days advance
written notification. Tenant would request that this _.~eement.
December 1, 1989. tenant also request the option to open the restaurant
May 1, 1990 with lease and option to begin on said date, May l, 1990,
shortening the lease period for the restaurant only.
As the proposed operation has been t~ice opened for bid, with no
responce to either biddin§ processs, should a bidding process
again be opened, I would' find it necessary to decline all offers
contained herein.
It is my intention to maintain a first class operation in both
bar and re.staurant tha.t will be benificial to t.he city and myself.
Above all zt .is my deszre to operate said facility with a client
oriented servzce of only the highest moral and ethical standard. ':
an operation of which the city will be proud. '
Thank you for your kindness and consideration. '
Sincerely,
Louis & There~.e S~billiD~
.g.i./ f~le ~
' I~11'11111'1 II '
CITY OF KENAI
~ENAI MUNICIPAL AIRPORT TERMINAL RESTAURANT
LEASE AGREEMENT
THIS LEASE, made and entered into this day of
19____, by and between the City of Kenai, hereinafter referred to'
as CITY, a body corporate under the laws of the State of Alaska,
with offices at 210 F-~dalgo Street, Kenai, Alaska, and
hereinafter r'eferred to as the LESSEE. .... '
.W TNESS_ETH_:
That for and in considerati~n of the rent to be paid by LESSEE for
the ~p~ration of the facil=ty and sur~en4er of the same in good
condition to th? CITY at the terminat~on~this lease and other
consideration given by the LESSEE herein~~~~e~eby l~ases
to the LESSEE, and LESSEE takes.and leases.i~~~, is condLtion
from the CIT~, premises described and shown on ~he a~tauhment
labeled Exhibit "A".and made a part hereof, including all equipment
and fixtures exist=ng thereon, at the time of exeoution of this
lease, which equipment and fixtures are more fully shown on the
attached Exhibit "B" and made a part hereof.
Said leased
Premises."
area shall
hereinafter be
referred to as "the
TO HAVE AND TO HOLD the same Premises unto LESSEE, subject.to the
conditions and covenants here~n contained, for the term hereLnafter
specified.
The parties
hereto further covenant
and agree as
follows:
,Term o..f h.ea,se
The Serm of this lease shall be .[FIVE (5) .YEARS, COMMENCING TEN
(10) DAYS AFTER EXECUTION OF THIS LEASE,] £.=ftv-~i~ .(55} months,
c_ommenc~na on ...May 1, 19.90 and terminating at m~dnight On [THE]-
Dace_be ' I 94. Ho,e er
t_erm~na~e th_is_..Lease A~eemen~ u_~:~.~,~.~ rtv (30)
days ~dvance written n.0t~ce of L~sE~'~l~mnti~n to
9remises, 2ay be a~en ..b~ ,the,CITY t~.the,, ~ES,SEE, iUpOn wF_i. tten
aDDlica~ion._ Any Such~Cc,~,s? s,hall be
o~ ~he ,C,~Ty.~ upon termlnat~0n o~ this Lease' ~mprOvements
LCA- 1
LESSOR:
LESSEE:
including, but not limited to, those listed and described under the
attached Exhibits A & B, shall revert to the'CITY and further upon
the termination of this Lease, all equipment and fixtures on the
leased premises under provisions .hereof and 'all fixtures
appurtenant to such buildings, including but not limited to those
constructed by LESSEE, shall be and become the property
of the CITY.
Rental Am.~n.t
LESSEE shall pay to the City as rent for the use of the Premises
the following:
[$1,500.00 PER MONTH.]
A. h~ 1A=.a
Rent.for the next twelve (12) m~n .. ~ the. lease De~oj
shall be Sl,00.~..00.per mon. th,
Rent for the...next thirt~ ~,3..0) months.,of the lease perio~ ~
Shall.,,,, be $1; 2~0.0,0, per ,m°nth ....
In addition, LESSEE agrees to pay sales tax on the monthly rental
as determined by Borough and City ordinances. Late payments shall
be subject to penal~y and interest as provided by City Code.
The premises and trade fixtures and equipment under this Lease are
owned by the CITY. LESSEE shall be subject to taxation upon all
personal property owned by CITY and used on or in .connection with
the leased Premises. LESSEE covenants ~o pay any taxes as may be.
lawfully assessed agains~ any real or personal property upon the
premises, including, but not limited to, taxes assessed for
£ixtures and the leasehold interest.
.ARTICLE
Purpose and Im~r6vemen
LESSEE shall provide for the opera=ion and maintenance of the
leased premises as a restaurant.
A. The LESSEE agrees t ~fa~ilities and the other
~mprovements provided for herein shall be equally available to all
members of the public without discrimination. Any discrimination
b~'the LESSEE in the use of any facility hereinabove described on'
grounds of race, sex, religion or national origin shall, be deemed
to be a material breach of this Lease and grounds for cancellation
of ~he Lease.
LCA - 2 LESSOR:
LESSEE:
'" I' fi' I"1[ I1' IIIIII '111 '1111' I
B. The LESSEE agrees that he Will not discriminate against
any employee or applicant, for. emploF~ent, to be employed in the.
performance of this Lease with respect to'his hire, tenure., terms,
.conditions or-.privileges 'of]emPloyment:-.or any matter directlF or
indirectly related.to emplOyment because ofage,'excePt'.when based.-.
on a bona fide occUPational qualification.,, or because o£'race, sex,
religion or national..orig~n. 'LESSEE' understands' that any .'such
discrimination shall-be, deemed ko be. a .material..breach[ o~: this
Lease.
Tosses Sion _and Ha..~!.a.t e~nce
LESSEE shall have sole possession o£, and .responsibility' £or,
maintenance o£ the Premi'ses, including, but not limited to, all
/11 t ' IIII
II ! ! IIII
LCA- 2.1 LESSOR:
LESSEE:
improvement's constructed thereon and fixtures and' equipment
existing on the property at the commencement of' the' lease and
thereafter installed by either LESSEE or CITY.. The CITY shall have
the right to inspect the Premises and 'to impOse reasonable
regulations to. insure proper care, maintenance, and upkeep.'ofthe
Premises. The. degree of maintenance shall be in. keeping with'
similar premises. The CITY, through its.city ~Mana.ger, or. his
designee,.shall have the right to-require that. the Premises 'and
improvements thereon meet general . standards of 'other · ..like
facilit.ieS .'
The CITY may advise the LESSEE in wr?.ting~~.'..~.~.de£iciency ~'n.
maintenance of the Premises. The defxciency...s~al! be Corrected '
within thirty (30) days, or within an appropriate period, as may be
otherwise agreed.
Improvements, facilities, fixtures, equipment and things on, in or
appurtenant to the leased premises are leased "as is" and without
any warranties or representacions whatsoever, includin~ warranties
of fitness f~r a particular 'purpose or warranties of
merchantability.
O~eratior~
observe
health,
In its operation on the leased premises, LESSEE sba11
all applicable Federal, State and Municipal Laws and
safety, and well-being of the public.
LESSEE shall at i2s expense, meet the requirements of
state health departments covering the handling and
local and
dispensing of food and beverages, if applicable. Adequate. toilet
facilities ~n'accordance..with..s~ate.andlocalregulations...shatl:be..
provided and maintained at locations on the premises. Kefuse and
waste materials'shall be handled'as required by applicable'state'
and local laws,'ordinances and regulations.
C. LESSOR agrees to pay all public utility bills for
electricity, gas, water, and all other.utilities'used or consumed,.
on the Premises and to procure ~t ~ts ~xpense all meters and
permits necessary for making connecc~onS-and continuing utility
services. ' ~,~,~_ '. ' .
continuously operate, the facility during.the periOd of the lease.
For purposesof'this lease, "continuous operation"means that the
£acility is-open for- business on.. a daily basis .(Sundays and'
holidays excepted at hESSEE's 'option) and for Such'.hotlrs'as would
LCA - S~ LES$OI~:
LESSEE:
be reasonable for
Peninsula. Hours of
doors.
similar facilities existing on the Kenai
operation shall be attached to public exterior
~JU~TC~,E v
Insur.a~c~
During the term of this Lease, LESSEE shall procure and keep in
force, or shall where appropriate, require LESSEE'S contractors
nd subcontractors to procure and keep i~t~rce, the following
nsurance:
A, Workmen's Compensation Insurance, su o meet State
of Alaska statutory requirements, including $100,000.00
employer*s liability coverage, protecting all employees of LESSEE
and employees of its contractors or subcontractors during the term
of this Lease.
B. Comprehensive General Liability Insurance, including
limits as to bodily injury liabiliCy of $500,000.00 for each
occurrence and $500,000.00 in aggregate and, as to property
damages, liability of SS00,000.00 £or each occurrence and
$500,000.00 in aggregate. Insurance policies required by this
paragraph shall name LESSEE .as Insured and the CITY as an
additional insured. Such insurance shall be made effective prior
to the beginning of operation of the premises.
C. Fire, Vandalism, Malicious Mischief, and extended coverage
insurance covering all improvements by LESSEE during the term of
this lease in an amount equal to at least eighty (80~) percent of
the ~ull insurable replacement value of such building, above
foundations. Such insurance policies shall be issued in the ~oint
names of the CITY and LESSEE and shall be payable Co the CITY and
LESSEE, as their respective interests may appear.
Duplicate. originals or certi,..~tes of all insurance policies-
required hereunder shall be'i'~e~l.i~gt~e~ to the CITY ~rin~ *~
occupation of the Premises b~ hES~E~,;~ ~he entire amount ~;l[;c~;~
for losses under any fire and extend~d~coverage policies shall ....be
held under ~oint control of the CITY and LESSEE and shall be made
available to repair, restore, or rebuild the damaged improvements.
~ny excess part o~ ~he insurance ~und remaining a~er the cost o~
repairs, rebuilding or restoration is paid, shall be paid ~o ~he
LESSEE. In ~he even~ ~he insurance.~und is insu~icien~ to cover
the 6cst of repairs, rebuilding or res~oration, the excess cos~
shall be borne by LESSEE.
D. ReassesSment of insurance needs may be made by CITY at
any time to determine whether or not, in the City's sole
determination, the coverage shall be changed.
LCA - 4 LESSOR:
LESSEE:
shall be given the CITY the event o£ cancel1.
or material change o~ aniyninsurance p°licy required hereunder.
ART!CL~
Assiqnment 0.~ ~.eas_e
· ra raph, this Lease shall not be
rovzded in this pa_ ?_~__ ..~-, ti1 the CITY approv.ee
ExcePt as. P .... :- ~o-~_ unle~ ~,,- -~ .... ~. -~ e
men~ in ~r ~ . = ~ e CI~,
or secur~t~ instrument a~"~nt-rest as secured
par~es hav~nq a ~nan~
or shareholders w~=h ~he.~~.h~rt.. (30} days o~ such request,
to the
LESSE~ shall have
be unreaso-ablY wit~,e~a-
It ~s underS~oo~ th~
~ortgage 0n
tim t ow
....
?----_. 1,~. ~ ase have the rlg~ -~_ = crea~ed ~Y ~n~
CI~ as o
· securz~,
........ -~ ~o sale, owned ~ . .._...es~ectzvely come duel
secure
' hereunder ' · ' n the' term
~ v- ehe event
betore
hCA
[ ~ ',-" -.. ...~ '-: .- '. ,,. .",-..:,.;~ ., . . :., · ,,. ',... .,
of security granted by LESSEE hereunder may make any and all
payments and do and perform any and all acts and things which may
be necessary or required to prevent a forfeiture of this Lease, and
the party making such payments or performing such acts or things
shall thereby and thereupon be subrogated to all rights of the
LESSEE under this Lease. The CITY agrees, that, if requested in
writing by the holder of any such rights of security, the CITY will
send to the said holder at the address specified in such written
request copies of all written notices or dem,.~ds which the CITY may
serve upon LESSEE o? anyone holding under L~~under and Pursuant
to the terms of thLs lease or otherwise. ~_~,.J --~
It is understood, however, that the holder of ~ch r=ghts of
security, shall in no way be liable to the CITY Eot the payment of
any rent or for the performance of any other covenant or conditions
under this Lease until such time as it shall acquire by conveyance
from th,e LESSEE, or by the foreclosure or other proceedings
provided by law or by the terms of any written instrument° all the
rights, title and interest o£ the LESSEE under this lease;
provided, however, that any party who shall acquire said rights,
title and interest of the LESSEE, as above provided, shall
thereupon and thereby become liable for the full performance and
all payments theretofore and thereafter required to be made by
LESSEE under the covenants and conditions of this Lease, as fully
and completely and to the same. extent as the LESSEE itself would
have been if it still had retained its right, title and interest
hereunder.
ARTICLE VIII
Cancellation_and...Forfeiture
In the event LESSEE shall be declared bankrupt according to law,
or if any assignment shall be attempted to be made of this Lease
for the .benefit of creditors (other than as herein-permitted)-or
if LESSEE shall abandon the leased premises or in the event rental
due hereunder remains unpaid for thirty (30) days after notice of
nonpayment given to LESSEE, then in any of said events, the CITY
may declare the Lease to be terminated and may enter into and upon
the land covered ~ this~Le~.s~T~.any part thereof and repossess
the same (~nclud~ng aa~.~fi~q,~l ~mprove~e~ts and installed
fixtures) and expel the L~~li-~d .~hose cla~ming under it and
remove ~ts effects, forcibly if necessary, without being deemed
guilty of any manner of trespass and wLthout prejudice to any other
remedies 'which might otherwise be used for possession or for
arrears of ren~.
LCA - 6
LESSOR:
LESSEE:
Indem..ni f.~c'~e~_~_on
LESSEE shall protect, indemnify and save harmless the CITY from
and against any and all claims, demands, and causes, of aCtion of
any nature whatsoever for injury to or death of persons,.or.loss
or damage to Property, occurring on the Premises or.in'any manner
growing-out off or connected with the LESSEE'S'Use and OccuPation
o£ the Premises or the condition terms
of this Lease.
of the Vremise~d...uring .the
Waiver. of Defa.u.lt
Any waiver by the CITY of any default or breach of this Lease shall
not be construed to be a continuing waiver of SUCh default or
breach nor as a waiver or permission, express or implied, of any
other or subsequent default or breach.
ARTICLE. XI
Force Majeure
A#omey'
If by reason of strike, lockouC., war, rebellion, material or labor
shortage due to a naCional emergency, fire, flood, hurricane or
other casualty, periods of excessive rain, or by-any other matter
nOt within its control, the CITY or LESSEE in good faith and
without £ault or neglect on its parts is prevented or delayed in
the construction of any condition except as relates to .rental
payments or the maintenance of insurance which, under the.terms of
this Lease, it is required Co do so perform within a .specified
period of time, the period of time within which such performance
was to have been completed shall be extended by a period of time
equal.._.to.that.of, such. delay or prevenCion,-and--the CITY or'LESSEE,
as the case may be, shall not be deemed to be in default if it
diligently- performs- and completes such work '-Or covenant or
condition in the manne~quired by the terms of this'Lease within
the Specified period Of'~m~..~/~l~so extended.
t?ICLE,
General Clausew
-A. 'All references to the parties to this Lease'and all
covenants, conditions and lease agreements of this Lease shall
apply 'to .and be.b~nding upon ~he CITY and LESSEE.and'their
respective heirs', executors, administrators, legal representatives,
successors and. assigns (when assignment'is'made inaccord with.the
provisions hereof-) as if they were in each case fully named and
stated. In this Lease both the CITY and LESSEE are referred to in
LCA- 7
LESSO~':
...LESSEE: .. .
the singular and neuter gender. However, such words and all other
terms a~d wo~ds used in th~s Lease regardless of the number and
ender in which they are used, shall be deemed and construed to
g a other gender,
include any other number (singular o~ plur,~~~,,,_~ ~...4,
masculin?, feminine or n~ter, as the sen~e~~_jw~,.w "~*'T-
may requLre, the same as Lf such words had be~*~l~ ana proper~y
written ~n the required number and gender.
· B. All notices to the CITY .shall be sent by certified or
regLstered mail addressed to the CLty Manager, City of KenaL, 210
Fidalgo Avenue! Ken,i, Alaska, 9~611, or.at such other address as
the. CITY may ~n writing from tame to tame designate by written
not~ce to the LESSEE. Ai~ notices to LESSEE shall be sent by
certified or registered ma~l addressed to LESSEE at . ..
. . '. , or at such other address as LESSEE
~aY fr°2 tL~e to time des=gnate by written notice to the CITY.
C. This Lease is made under the applicable laws of the. State
of Alaska and if any ~erm, c~ause~ provision, part or portLon of
thi~ Lease shall be ad3udged ~nvalLd or illegal for any reason the
valLdity of any other.part.or portion of this Lease shall ~o~ be
affected'thereby and Lnval=d or Lllegal term, ~lause, prov=s=on,
part or portion shall be deleted and ignored as ~f the same had not
been written.
D. Venue for any dispute arising out of this lease
in the trial courts for t~'~,~.,t~_~of Alaska, Third
E. This Lease
written instruments
the City Council of the CITY.
shall be
Judicial
may be altered, modified or amended only by
signed by LESSEE and the CITY and approved by
IN WITNESS_WHEREOF, the parties hereto have caused this instrument
to be signed and sealed the day and year-first above written.-
DATED: This ... day of _ ., 1989.
CITY OF KENAI:
LESSEE:
Wm. J. Brighton
City Manager ........
(~ITY OP KENA!
...i..: ~,a. tureen-
hCA- 8
LESSOR:
LESSEE:
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this _ : daf of .._ ,
1989, : , being personallY-~n~Wn to me or
having Pr°ducedsatiSfaCt°ry evidence of identification, appeared
before me and acknowledged the voluntary and authorized execution
of the foregoing instrument.
Notary Public in and for Alaska.
My Commission Expires: ........
STATE OF ALASKA )
) SS.
THIRD JUDICIAL DISTRICT )
THIS IS TO CERTIFY that on this day of ..... ,
1989, WILLIAM J. B~IGHTON, City Manager o~ the C~C'Y of Kenai,
Alaska, being personally known Co me or having produced
satisfactory evidence o~ idenCification, appeared before me and
acknowledged the voluntary and au=horized execu~Lon of ~he
foregoing instrument on behalf o~ said City.
Approved as to lease
Approved by Finance DirecCor.
Approved by City Manager
Lease Approved by Council on
Notary ~ublic in and for Alaska~~
~y Commission Expires: .
form by City Attorney.
~anet ~Uotsala, City Clerk
LCA- 9
LESSOR:
LESSEE:
i
J
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
:21.
:22..
:23.
25.
:26.
27..
:28.
29.
30.
31.
KENAI MUNI.C._IPAL. AIRPORT. TERMINAL RES. TA..UR~
OU P ENT
-~SUBJECT' TO FI..NA~L. INS. TA~.LATI. oN,
DUE ..T.O CONTRACT.O..R',~ SUBSTITUTIONS)
Shelving, 5 tier:
24"x60" 10
24"x48" 5
24'x42" 5
24"x36" 10
18"x36' 10
18"X42" 5
Posts, 86" 2G
*eS" Clips 60
Microwave Oven on Shel£ 1
Dish Counter with Hand Sink
Paper Towel Holder, Stainless Steel.
Trash Bin with Cover
Soiled Dish Table 1
Dishwasher . 1
Clean Dish Table
Hot Wa~er B~oster
Pot Sink; 3 Compartment, 91" long. 1
Wall Mounted Shelf, Two Tier 1
Cart 1
Hood wi=h Ansul Fire Suppression System. 1
~ange, Gas 1
Fryers wi~h Spacer, Gas.
HeaC Lamps, Pan and Grate. 1
Corner Stand
Mixer, 20 Quar~. 1
Food Cart, Freezer, Mobile. 1
Hot Food Uni~, Electric. 1
Work S~ation wi~h Preparation Sink. 1
Salad/Sandwich Station*,. Refrigerated, .... t
Double Over Shelf 1
Shelving, 5 Tier: ' '
24"x42" 5
21"X48" 5
86"
Posts, 6
'S" Clips 10
Freezer/Cooler Walk-In .. 1
Can Opener 1
Slicer 1
Heatlamp 1
Back Counter, Wood Fabrication 1
Shake Maker (Mixer) 1
Dip Well i
PAGE I OF 2
each
each~
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each' '
each
each
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each
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each
eac~
~acR
each
~ach
each
each
each
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each
32.
33.
34.
35.
36,
3?.
38,
39,
40.
-42,
43.
Ice Cream Cabinet & Fountain Unit
Display Case, Wall Mounted, ~efr.igerated.
Glass Filler/Sink
Coffee and Hot. Water Maker
coffee Grounds DiSpenSer.
Service..Counter, Wood Fabrication.
BUssing Cart withBussing.Pans'
Toaster,.. Pop'Down "
Carbonated Drink system, Four Dr~nk
Disposer
Worktable, Mobile.
Ticket Holder
each
each
each
each
each
each
' ~ each
each
'1.each
I each
i each
I each
PAGE 2 OF 2
KENAI
CITY OF KENAI
MUNfCIPAL AIRPORT TERMINAL BAR
LEASE AGREEMENT
THIS LEASE, made and entered into this ... day of ....
19 , by and between the City of Kenai, hereinafter referred to'
as CITY, a body corporate under the laws of the State of Alaska,
with offices at 210 Fidalgo Street, Kenai., Alaska, and . .
hereinafter referred ~0 as th® tEss~E. ..... '
.W ITNE S SETH
That for and in consideration of the rent to be paid by LESSEE £or
the op.eration of the facility and surr~der of the same in good
condition to th.e CITY at the terminati~~ this lease and other
consideration g~ven by the LESSEE her~~~Y h. ereby leas.s
to ~he LESSEE, and ~E~SEK takes and leases'~~"as xs" condi2ion
from the CITY, premxses described and shown ~n the attachmen~
labeled Exhibit "A** and made a part hereof, including all equipment
and fixtures existing thereon, at the time of execution of this
lease, which equipment and fixtures are more fully shown on the
attached Exhibit "B" and made a part hereof.
Said leased area shall hereinafter be referred to as "the
Premises."
TO HAVE AND TO HOLD the same Premises unto LESSEE, subject to the
conditions and covenants herein contained, for the term hereinafter
specified.
'The parties hereto further covenant and agree as follows:
Term of Lease
The term of this lease shall be five (5) years, commencing [TEN
(10) DAYS AFTER EXECUTION OF THIS LEASE,] on December.1. 1.~.9, and'
terminating at midnight on [THE] December 1. 1994. However.~ LESSEE
sh.~11 have the option to te.r.m!~ate.~his..Le~ Aareemen~ upon aiv~na
~heLCITY thirty. (30.~_ daYs._a.dvance ...... writ.ten not!_ce of::LESSEE*S
i e at he sole iscretion of .t . Upon termination o£ .
this Lease, improvements includLng, b t not lLmited to, those
LCA - I LESSOR:
LESSEE:
listed and described under the attached E~hibitsA & B, shall
revert to the CITY and Eurther upon the termxnationof this Lease,
all equipment and fixtures on the leased premises under provisions.
hereoE and all fixtures appurtenant to such buildings, including~
but not limited to those constructed by LESSEE, shall be and become
the property o[ the C~TY.
Rental ~pn~
LESSEE shall pay to the City as rent £or the use of the Premises
the Xollowing:
[$2,500.00 PER
The .rent~o~ the..Xirst eiahte.en {18) months of.~e lea'se
?h~rent fo~..th_e n~t_.t~e _ ~l~o~,~hs, o~.,th~ leas~
sh il-be gl 50.00 e ~°n -~~~. '
· he .ren~.~or.~he nex~ ~h~rtv (30) mon~h~.~_..the lease
sha!l be..$2,500.00 ~er month.
In addition, LESSEE agrees to pay sales tax on the monthly rental
as determined by Borough and City ordinances. Late payments shall
be subject to penalty and interest as provided by City Code.
The premises and trade Xixtures and equipment under this Leaseare
owned'by the CITY. LESSEE shall be sub~ec~ to taxation upon all
personal property owned by CITY and used on or in connection with-
the leased Premises. LESSEE covenants to pay any taxes as may be
lawfully assessed ag~iz,st any real or personal property upon the
premises, including, but not limited to, taxes assessed for
£ixtures and the leasehold interest.
' _AaTzCL=_ Zl;
:Pur=ose and ~mprove. me.nts
LESSEE shall provide Xor the operation and maintenance o£ the
leased premises as a bar.
A. The LESSEE agrees tha £acilitxes and the other
impr~vements provided £or herein shalX be equally available to all.
members o£ the public without discrimination. Any discrimination
by the LESSEE in the use .o£ any facility hereinabove described on
grounds cE race, sex, religion or national origin' shall be deemed
to be a material breach oX this Lease and grounds for cancellation
oX the Lease.
LCA - 2 LESSOR:
LESSEE:
B. The LESSEE agrees that'he will not disCriminate against
any employee or applicant £or employment, to be.employed 'in the
perf'ormance of this Lease with. respect to hishire, tenure, terms,
conditions or privileges of employment or any.matter d~rectly or
indirectly.related, to.employmen~ because of age, except when'based.
on a.bona fide occupational quali£~cation, or because of race, seX,
religion or national orig~n.-'.LESSEE iunderstands"that any 'such
discrimination shall be deemed to.-be :a m~aterial breach o£ this,
Lease..~~.~~ .
Possession_ and .Ma=nte, nance
LESSEE 'shall have sole possession of, and responsibility for,
maintenance of ~he Premises, including, bu~ not limited to, all
tttt tttt
........ tt l~ .. _ I t.t I
improvements constructed thereon and fixtures and' equipment
existing on the property at the commencement o~ the lease and
thereafter installed by either LESSEE or..CITY. The CITY shallhave
the right to. inspect- the premises and 'to impose reasonable
regulations to insureproper care, maintenance, 'and upkeep Of the
Premises. The degree of maintenance shall be in keeping with
similar premises. The CITY, through, its City. Manager, or his
designee,-sha!l have the 'tight'to require that the-Premises"and
improvements th. ereon meet. general standards of other .'like
facilitie~.
Th.e CITY may. advise the LESSEE in wr.i. ting ,o~~~eficienc'y ~n
ma=ntenance of the Premises. .The def~cienoy sha~ be corrected
within thirty (30) days, or within an appropriate period as may be
otherwise agreed.
Improvements, facilities, fixtures, eauipment and thinqs on, in or
appurtenant to the leased premises are leased "as is" and without
any warranties or representations whatsoever, includin~ warranties
of fitness for a particular purpose or warranties of
merchantability.
.
.Oo~r.,ation
observe
health,
In its operation on the leased premises, LESSEE shall
all applicable Federal, State and Municipal Laws and
safety,-and well-beino, of the public.
B. LESSEE shall at its expense, meet the requirements o~
local and s~ate health departments covering the handling and
dispensing of food and beverages, if applicable. Adequate toilet
facilities.in, accordance w~th state and.local.reg~lat.~.o~s.sh~l.l_be_
provided and maintained at locations on the premises. Refuse al~d
waste materials shall-be handled-as'required--by applicab].e--~tate
and local laws, ordinances and regulations.
C. LESSO, agree, to pay all.~~~lit~ bills for
electricity, gas, Water, and.all other.~t~~~/used or consumed,
on the Premises and to. procure'at ~ts ~xpense: a~l;meters' and
permits necessary for making connections' and cont=nuing utility
· services. ..
D. LESSEE agrees, .sub~eUt to ArticZe XII of this ].ease'. t°
continuously'operate the 'facility during the period oE the lease.
For purposes of. this lease, "continuous operation" means.that, the
facility is open for 'bUsiness on a daily-basis (SundaYs and
holidays excepted at LESSEE's option) and for suoh hours as"Would
be reasonable for similar facilities existing on the Kenai
I,CA - 3
I,ESSO~:
LESSEE:
~_..1~, J. R~Rem
GtlYA#omey
CITY OF KENA!
Ki~i~.AlIiki99611
Peninsula. H.ours ogo. peration shall be attached to public exterior
sd~'beNc°ltoWsx~dhS~traonmdx~nf02~F, tmh. in~g t_.o the contrary above, the bar
CO 8 a.m.
During the term of this Lease, LESSEE shall procure and keep in
gorce, or shall where appropriate, require LESSEE'S contractors
and subcontractors to procure and keep in force, the following
insurance:
employs-,- ,~-~P~Y requxrements_ i.....==~.~xent to meet State
o~ ~-~ees o~ xes contractor~ c__b.,,_ . ees of LES · ~n~rac~i~'M[~urzng C~e
,...B. Comprehensive a,~__, .. _ . .
· .-~"~'5 ~z~bmlxty Insurance, incl
zxmx~s as to bodily xn3ury l~abil~ty o£ $500,000.00 ~ uding
occurrence an~ ~500,000.00 · o
damages, 1' 2n aggre a r each
,00,00o.00
· ~9~ugace. ~ns,.- ....... " occurrence a
paragraph shall n--~ -- .... ---,,~u poAiczes r~---~ ...... nd
~ddxtional insure '"'~ ~~ as Insured and th'"'~rea ~y this
co . d. ~uch znsurance e CITY as an
the begxnning o£ operation o£ theS~i~i~s~ada eE~ective prior
C. Fire, V~ndalism, Nalic' ·
~r~nce c~ver,ng all im.rovit~~i~c~iai, and extended coverage
,.Au hesse in an am^---- _ ~_ .-,,,--~s Dy LESSEE duri..
~u.~ equai t
the gull insurable o at leas~ eighty
foundations ~..-, =_~ePlacemen~ value o£ .
LESSEE, as *~--- _U~ '~~ and shall be - oo.uq ~n the Joint
'"'~- ~-eapec:ive into-~--- - _ ~aYable to the CITY
_ _; .... --=~u may appear, and
~upl~cate originals or certigi
required hereun ' cares of all "
der shall be d · insurance ol
~ccupa~ion of t . _ _ elevated to _P. icies
Esr losses ehe Premises by LESSEE. The n ~he CI?Y przor to
held u~ r any. fzre and exte-d-= -- e tzre amoun~ collec~-~
under Joint conc ~-~ verage ol ·
available t~ ----~- rol of the CZ~[;;~.~~._ p _ic~es shall be
a.v .~ .... U 'VF~r, restore, or r~,~l ' ~ ann shall be
LTI_i~Y='a PaFc ?~ the insurance---'~~,~_,damag~d improvem made
--p~zrs, renu gund rema ents.
LESSEE. In ,~d-~-~-yes~°ration is . Ining a£ter the Cost 0£
the co-* ~-~ %~%~ -~ac cna insurance g Paid, shall b~ paid to th
_,_.. ~- ~ repairs, feb 4 und is insu£gicx e
=a,~i ne borne bF ~mm~ U-lding or restoration ant ~_cove~
_ L .... .. , the exce=s cos~
D. Reassessment of insurance needs may be made b~ CIty at
determine whether or not, in the City's sole
the coverage shall be changed.
any time to
determination,
LCA - 4
LESSOR:
LESSEE:
~TY OF KENA~
Except .as provided-in-this paragraph, this.Lease shall 'not- be
assigned in whole or.in part, unless and until.the CITY approves
such', assignment in writing, which approVal -shall not be
unreasonably withheld. Upon written .~equest by the .cITY, the
identity o£ the holder or holders'.to-a~~t~ge, deed~o£ trust
or security instrument' and' all ~indi~~l~~rporations, or
parties having a financial interest'a~'se~N:-~ties, investors
Or Shareholders wi~h the ~SSSSE in th~s lease, shall ,be.provided
to the CITY by LESSEE within thirty (30) days of such request,
LESSEE shall have the right-to sublease the Premises £or uses and
purposes which are in accord with the provisions of this Lease,
only upon written approval by the CITY, which approval shall not
be unreasonably withheld.
A~TICLE VI~
P..ledae cE Lease
It is understood that in' borrowing ~unds bESSEE canno~ place a
mortgage on the Premises or the E~xed ~mprovements placed thereon.
However, it is contemplated that LESSEE ma~ be required to borrow
£unds ~or th® initial construcC~on°£ improvements and that
time to time during the teem'of this Lease it may'be, desirable or
convenient £or LESSEE to borrow additional £unds £oradd~t~onal
i~provements, alterations, repairs or £or other purposes.
Accordingly, it is agreed that LESSEE shall at all times during the
"term'of'this-lease have:'the'right to 'grant'-rights o~'"secur~ty
this.Lease and-the leasehold, r_~ghts...of..LESSEE- crea'~ed_.by this
Lease, provided, however', that an~ such rights of securi~ shall
at all times be sub]ec~ tO.the right, title and interest of the
CITY as owner of the Premises and fixed improvements placed,thereon
and the right o£ the CITYtO require the payment of all rentals due
hereUnder and the £ul~'and ..E..a~th£ul. per£ormance.o£ the'covenants
and condit~Ons o~ th~s 'LeaS~_~~t to any such rights o£
security,.the CITY shall have~~~ all personal proper~F not
daily exposed to sale,, owned bF LES-SEa,and used on the Premise to
secure the payment o£ the rentals as they respectively come due
hereunder. . ..
In the event'at any time'during, the terTM o£ this Lease,. LESSEE, or
anyone holding, under LESSEE shall .be ~n. de£ault..°£.anY cE'. the
covenants-or conditions.o£~ this lease, then and in such event,
be£ore £or£e~ture is invoked b~ the CITY, the holder o£ any rights
LCA- 5'
LESSOR.:
LESSEE~
Assianmen~._O£_.Lease
E. LESSEE agrees that thirty .(30) days-.notice in writing
shall be given the. CITY in the event o~ cancellation, termination
.or material change of any insurance policy' required hereunder.
of security granted by LESSEE hereunder may make any and all
payments and do and perform any and all ac~s and things which may
be necessary ~r required to prevent a f0rfe}ture of this Lease,.and
the party makLng such payments or perform=ng such acts or thLngs
shall thereby and thereupon be subrogated to all. rights of the
LESSEE under this Lease. The CITY agrees, that/ =f requested.in
writing by the holder of any such rights of sec~rLty, the CiTY w=11
send to the sa~d holder, at the address specifLed in such written
request copies of all wr=tten notices or demands
which the CITY may
serve upon LESSEE or anyone holding under LESSEE under and pursuant
to the terms of this lease or otherwise.
It is understood, however, that thCs. holder of such rights of
security, shal~ in no wa~ be liable~.~.~T~TY for the paym?n~ of
any rent.or for the performance of an.--?~t~_",~.~j~venant or condeC,OhS
~nder th~s Lease until such ~me as ~ sh~a~a.-~-- ~
zrom. the L, SSEE, or b~ the foreclosure o'
provLded b~ law or by ~he 2erms of any wr~C=en instrument, all
rights, tLtle and interest of the LESSEE under ~his lease~
p~ovided, h~wever, 2LaC any party who shall acqulre said rights,
CxCle and =n2erest of the L~SSEE, as above provided, shall
~hereupon and =hereby become lLable for =he full performance and
all payments thereCofore and =hereaZ%er re*ui--~ ~- =
LESSEE under ,he covenan,s and conditions
and completely and.2o ~he samelex=e~= as.the LESSEE itself would
have been if it stzll had re2azned zCs rzgh~, ~itle and in~eresC
hereunder.
ARTICLE. VIII
Cancellatio~..and_FO~feitur~
In ~he event %ESSEE shall be declared bankrupt according.to law,
or ~f any assignment sh!lI be attempted to be made of t~=s Lease
for the benefit of cred=tors_(other than. as.-herein perm=tted)'or
if LESSEE shall abandon th~ leased~remises or in the event ~ental
due hereunde~ remains unpa=d for th=try (30) days after not=ce of
nonpayment g=ven to LESSEE, the~ in any of said events, the CITY
may declare the Lease to be term=nat,,e~,.,~nd may enter Lnto and upon
the land covered ~ this Lease or ~A~a~,,~ereof and repossess
the sane (includ~ng any and al[~m~~%nts and installed
fixture~) and expel the LESSE~ and ~hose ~laiming un,er it and
remove zts effects, forcibly zf necessary, without bezng deemed
guilty of any manner of trespass and without pre3udzce to any other
~:~:~:SofWhJ~nh~.might otherwise be used for possession or for
~?~CLE I~
In~emn.if~cation
LESSEE shall protect,
and against
indemnify and save harmless the CITY from
any and all claims, demands, and causes of action of
LCA - 6
LESSOR:
LESSEE:
#omey
any nature whatsoever for injury to or death of persons, or loss
or damage to property, occurring on the Premises or in any manner
growing out of or connected with the LESSEE'S use and occupation
of the Premises or the condition of the Premises during the terms
of this Lease.
Waivjer of, Def. aul~
Any waiver by the CITY of any default or breach of this Lease shall
not be construed ~o be a continuing waiver of such .default or
breach nor as a wazver or permission, express or implzed, of any
other or subsequent default or breach.~h
AR~I.CLE XI ~ ~i'
Force, ~a~eure
If by reason of strike, lockout, war, rebellion,.material or labor
shortage due to a national emergency, fire, flood, hurricane or
other casualty, periods of excessive rain, or by any o~her matter
not within its control, the CITY or LESSEE in good faith and
without fault or neglect on its parts is prevented or delayed in
the construction of any condition except as relates to rental
payments or t~e ~aintenance of insurance which, under the terms of
thLs Lease, =t Ls required to do so
perform within a specified
period of time, the period of time within which such performance
was to have been completed shall be extended by a period o~ time
equal to that of such delay or prevention, and the CITY or LESSEE,
as the case may be, shall not be deemed 2o be in defaul~ if it
diligently performs and completes such work or covenant or
condition in the manner required by the terms of this Lease within
the speciEied period of time as so extended.
General Clau~e~
A. All r~f~rences to t~j~b~.~.,~ to this Lease and all
covenants, condLtLons and lease ~c~e~m~ts of th~s Lea-- -~-~-
apply to and be binding upon the C~T~.'.~d-LESSEE and the~' ~"'''
respective heirs, executors, administrators, legal representatives,
successors and assigns (when assignment is made in accord with the
provisions hereof) as if they were in each case fully named and
stated. In this Lease both the CITY and LESSEE are referred to in
the singular and neuter gender. However, such words and all other
terms and words used in this Lease regardless of the number and
gender in which they are used, shall be deemed and construed to
include any other number (singular or plural) and any otAer gender,
LCA - 7 LESSOR:
LESSEE:
masculine, feminine or neuter, as the sense of the writing herein
may require, the same as if such words had been fully and properly
written in the required number and gender.
B. All notices to the CITY shall be sent by certified or
registered mail addressed to the City Manager, City of Kenai, 210
Fidalgo Avenue, Kenai, Alaska, 99611, or at such other address as
the CITY may in writing from time to time designate by written
notice to the LESSEE. All notices to LESSEE shall be sent by
certified or registered mail addressed to LESSEE at.__.....
. , or at such other address as LESSEE
may from time to time designate by written notice to the CITY.
C. This Lease is made under the applicable laws o£ the State
of Alaska and i£ any term, clause, provision, par= or portion of
this Lease shall be adjudged invalid or~illeqal £or any reason the
validity of any other part or portion#~.,th~s Lease sAall no~ be
part or.portion shall be deleted and igno~~~i'f the same had not
been wrxtten. ~
D. Venue £or any dispute arisin~ out o~ th~s
in the trial courts for the State of Alaska,
District at Kenai.
lease shall be
Third Judicial
E. Th~s Lease may be altered,
written ins~rumen=s signed by LESSEE
the City Council of the CITY.
modified or amended only by
and the CITY anU approved by
IN WITNESS WHEREOF, the parties hereto have caused this insCrument
to be signed and sealed the day and year firs= above written.
DATED: This day sE .. , 1989.
CITY OF KENAI:
LESSEE:
Wm. J. Brighton
City Manager
STATE OF ALASKA
THIRD-JUDICIAL DISTRICT
)
) SS.
)
THIS IS TO CERTIFY that on this
1~8~, .............. , being
,. day of ....... ,
personally known to me or
LCA - 8 LESSOR
LESSEE
having produced satisfactory evidence sE identi~ication, appeared
before me and acknowledged the.voluntary and authorized execution
of the foregoing instrument.
Pub:l. iC :~Ln--and for Alaska.
My Commission ExpireS: .... .
STATE. OF ALASKA ) ~
) ss,
THIRD JUDICIAL DISTRICT )'
THIS IS TO CERTIFY that on this day of ......... ,
1989, WILLIAM J. BRIGHTON, City Manager o£ the City of Kenai,
AlaSka, being personally known to me or having produced
satisfactory evidence of identification, appeared before me and
acknowledged .the voluntary and authorized execution of the
foregoing instrument on behal£ of said City.
Approved as to lease
Approved by Finance Director.
Approved by City Manager.
Lease Approved by Council on
Notary Public in and for Alaska.
My Commission ~cpires: ........
form by City Attorney.
Janet Ru°tsala,
City Clerk
LCA - 9
LESSOR:
LESSEE:
3.
4.
5.
6.
7.
9;
10.
11.
12.
13.
14.
:].'5.
16.
17.
18.
KENAI.,,,, ,ICIPA . AIRPO,R.T ,,TERMZN ,L_BAR
SUBJECT TO,, F,I,NAh INST~,LhATION .
DU.E. TO.. .. CONT. RACTO. R ,_S ....S.UBSTiTUTIONS)_
Cocktail Service Station, No. 1
Carbonated Drink System, Two Stations
Bar Top Extension Drainboard with Hand Sink
Glass Washer & Slop Sink
Three Compartment Sink, 24" Deed
Filler
Cocktail Service Station, No. 2
Cash Register, Station No. 1
Cash Register, Station No. 2
Cash Register Station
Refrigerated Back Bar
Bottle Beer Section, Right Side
Back Bar Top and Display, Wood Fabrication
Ice Machine
Wire Shelving:
24"x36'86", 3 tier (over ice machine)
18"x42"x86", 5 tier with 10 each "S"
18"x36"X86", 5 tier
Beer Cooler
Stand and Pumps for Carbonated'Drink System
Miscellaneous Equipment:
Cocktail Glass Rack Units
Waitress Storage Box
Clips
1 each
I each
I each
I each
i each
.1 each
I each
I each
I each
I each
i each
1 each
i each
i each
i each
i each
12 each.
i each
PAGE I OF I