04/15/2009 Agreement
DANNY L. KOLHAGE
CLERK OF THE CIRCUIT COURT
DATE:
April 16, 2009
TO:
Dent Pierce, Director
Public Works Division
FROM:
Beth Leto, Assistant Director
Public Works Division
Pamela G. Han~.
A TTN:
At the April 15, 2009, Board of County Commissioner's meeting the Board granted
approval and authorized execution of a Lease between Monroe County and Tropical Watersports,
LLC for a watersports equipment rental concession on Clarence S. Higgs Memorial Beach.
Enclosed is a duplicate original of each of the above-mentioned for your handling.
Should you have any questions please do not hesitate to contact this office.
cc: County Attorney
Finance
File~1
LEASE AGREEMENT
HIGGS BEACH CONCESSIONS
TROPICAL WATERSPORTS, LLC
THIS CONTRACT OF LEASE is made and entered into by and between MONROE
COUNTY, a political subdivision of the State of Florida, whose address is 1100 Simonton Street,
Key West, Florida 33040, hereinafter referred to as "COUNTY" or "LESSOR" and TROPICAL
W A TERSPORTS, LLC., whose address is 1002 Fleming Street, Key West, Florida, 33040
hereinafter referred to as "TENANT "or "LESSEE" this 15th day of April, 2009.
WHEREAS, the LESSOR desires to grant to LESSEE a non-exclusive right to maintain and
operate a concession on the beach for purposes of renting beach chairs, umbrellas, kayaks,
sailboats, and daysailers; and
WHEREAS, the LESSOR and LESSEE desire, in connection with said operations, to
provide for the leasing by LESSOR to LESSEE of certain space at Clarence S. Higgs Memorial
Beach;
NOW, THERFORE, in consideration of the premises and of the mutual covenants and
agreements herein contained, and other valuable considerations, COUNTY does hereby grant and
lease unto LESSEE and LESSEE does hereby lease from COUNTY, certain premises, rights and
privileges as follows, to wit:
1. Premises. The COUNTY does hereby lease to LESSEE, and LESSEE does hereby lease
from the COUNTY a portion of Clarence S. Higgs Memorial Beach, Key West, Florida as
evidenced by the areas numbered 1, 2, 3, 4, 5 and 6 on the drawing marked "Exhibit A", which is
attached hereto and made a part hereof.
2. Term. The term of this lease is for three (3) years beginning on April 15, 2009. LESSEE
may exercise an option to renew this lease for two (2) additional one (I) year periods with the
writtt~n approval of the Board of County Commissioners. LESSEE shall submit a request in
writing, at least 60 days prior to expiration of the then current term, to the Board of County
Commissioners requesting the renewal.
3. Rental and Fees. In return for the privilege of using the designated portions of Clarence
S. Higgs Memorial Beach, LESSEE shall make monthly payments of rent to LESSOR as follows:
a. 10% of its total gross proceeds or $500.00 per month, whichever is greater, for the
beach chair and umbrella rentals; and
b. 10% of its total gross proceeds or $1,000.00 per month, whichever is greater, for the
kayak, sailboat, and daysailer rentals.
Payment shall be made on or before the fifteenth day of the month following the month
payment is due. Payment should be directed to the Monroe County Finance Dept., P.O. Box
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1980, Key West, Florida. 33040. The first payment shall be due May 15, 2009. Rent shall be
paid in equal monthly installments, all of which shall be due and payable on or before the
fifteenth day of each calendar month during which this lease is in effect. Upon the failure of
LESSEE to pay any installments when due, the LEESOR will be entitled to charge and collect,
and LESSEE will be obligated to pay, a late fee of two percent (2%) of any such amount, if
paid within thirty (30) days of the date due, and five percent (5%) of any such amount, not paid
within thirty (30) days of the date due. Such late fees will be in addition to the amount of rent
due. The acceptance by the COUNTY of the overdue rental installment plus applicable late
fees shall cure what would otherwise constitute a default by LESSEE under the terms of this
lease. The COUNTY, at its option, however, may refuse a proffered overdue rental installment
and late fees, declare a default, and proceed according to paragraph 4 of this lease. In the event
that any check, draft, or negotiable instrument by which LESSEE has tendered any rent
payment is returned to the COUNTY and not honored, whether for insufficient funds or other
reason, the COUNTY will be entitled to charge and collect, in addition to any applicable late
payment fees as provided above, a fee of Twenty-five Dollars ($25.00) for such dishonored
instrument. Such penalty fee shall also be in addition to the amount of rent due. The
acceptance by the COUNTY of the rental payment plus any applicable late fee and penalties
following the receipt of a dishonored instrument shall cure what would otherwise constitute a
default under the terms of this lease. The COUNTY, at its option, however, may refuse any
proffered rental installment and applicable late fees and penalties, declare a default, and
proceed according to paragraph 4 of this lease.
4. Termination. This Agreement may be terminated at the discretion of the LESSOR in the
following circumstances:
a. LESSEE fails to pay the rent when due;
b. LESSEE fails to obtain the insurance required under this lease or allows the
required insurance coverage to lapse or fall below the minimum required;
c. LESSEE otherwise breaches the terms of this lease.
Unless the LESSOR has accepted in writing a delay in performance of duties, the failure to
perform said duties shall constitute a default under the terms of this agreement. In the case of
default/breach, the County's Director of Facilities Maintenance shall first give the LESSEE a
written notification stating the default/breach and that Lessee has 10 days to correct the
default/breach. If the LESSEE has not commenced correction of the default/breach at the end of
the 10 days, then the LESSOR may terminate the lease in its discretion. If it shall be necessary to
employ the services of an attorney in order to enforce its rights under this Agreement, the LESSOR
shall be entitled to reasonable attorney's fees. Waiver of a default in any particular month shall not
bind the LESSOR to forego the provisions of this paragraph and any subsequent default shall be
grounds for termination.
5. LESSEE'S OBLIGATION: LESSEE covenants and agrees:
a. To pay the LESSOR the rent at the times and in the manner provided by this lease.
b. To continue to maintain current City and County Occupational Licenses, as required,
during the period of the lease.
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c. That LESSEE's concession will not interfere with beach cleaning.
d. LESSEE will conduct its operations in a businesslike manner at all times, and will keep
the leased premises free of trash and debris left in the area of the concession by the
publ ic.
e. All rental equipment will be maintained in good working condition.
f. Lessee agrees to recondition and maintain the line of floats which extends from near the
beach to the ocean end of Reynolds Street Pier to keep the sailboats and sailboards
separated from the swimming area for the period of this lease.
g. To make no improper or offensive use of said premises, and to permit the LESSOR or
its agents to inspect the leased premises at all reasonable times for the purpose of
viewing the condition thereof.
h. Beach hours are from 6:00 a.m. until ]] :00 p.m. Business hours to be determined by
agreement between LESSOR'S DIRECTOR OF FACILITIES MAINTENANCE and
LESSEE.
i. Premises, as a portion of Higgs Beach, are as evidenced by the attached drawing
marked Exhibit A and numbered], 2, 3, 4, 5 and 6 which is attached hereto and made a
part thereof in the Lease Agreement.
j. This agreement is limited to rentals of beach chairs, umbrellas, kayaks, 14 and] 6 foot
sailboats, sunfish daysailers, snorkel equipment, longboards, and such other water
related equipment. Lessee may also offer concierge services and sell local art, t-shirts
and other similar souvenirs. NO OTHER SERVICE MAY BE PROVIDED WITHOUT
THE WRTITEN CONSENT OF THE COUNTY.
k. LESSEE shall procure and maintain Commercial General Liability insurance. Coverage
must include $500,000 combined single limit. Monroe County Board of County
Commissioners must be specifically included as an additional insured and certificate
holder.
l. LESSEE shall obtain Worker's Compensation insurance with limits sufficient to
respond to Florida Statute 440 or provide documentation to the County evidencing
LESSEE's exemption.
m. To comply with LESSOR's reasonable requests as to deployment and/or removal of
LESSEE'S rental offerings.
6. LESSOR'S OBLIGATIONS: LESSOR covenants and agrees:
3. LESSEE shall be permitted to maintain the rental booths for operation of the concession
as depicted in Exhibit A numbers 2 and 5. Upon termination of this lease, LESSEE shall
remove said structures and return the premises to the condition at the beginning of the
lease term. Should LESSEE fail to remove the structures within thirty (30) days of
lease termination, LESSOR shall have the right to remove said structures and charge
LESSEE for the costs of removal, or to retain said structures for its own use.
b. LESSOR is the lawful owner of the property demised hereby, that it has lawful
possession thereof, and has good and lawful authority to execute this lease; and
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c. Throughout the term hereof, LESSEE may have, hold and enjoy peaceful and
uninterrupted possession of the premises and rights herein leased and granted, subject to
performance by LESSOR or its obligation herein.
d. To perform the initial installation of the line of floats which extends from near the
beach to the ocean end of Reynold's street pier.
7. Books. Records and Documents. LESSEE shall maintain all books, records, and
documents directly pertinent to performance under this Agreement in accordance with generally
accepted accounting principles consistently applied. Each party to this Agreement or their
authorized representatives shall have reasonable and timely access to such records of each other
party to this Agreement for public records purposes during the term of the Agreement and for four
years following the termination of this Agreement.
8. GoverninS! Law. Venue. Interpretation. Governing Law, Venue, Interpretation, Costs,
and Fees: This Agreement shall be governed by and construed in accordance with the laws of the
State of Florida applicable to contracts made and to be performed entirely in the State.
In the event that any cause of action or administrative proceeding is instituted for the
enforcement or interpretation of this Agreement, the LESSOR and LESSEE agree that venue will
lie in the appropriate court or before the appropriate administrative body in Monroe County,
Florida.
The LESSOR and LESSEE agree that, in the event of conflicting interpretations of the
terms or a term of this Agreement by or between any of them the issue shall be submitted to
mediation prior to the institution of any other administrative or legal proceeding.
9. Severabilitv. If any term, covenant, condition or provision of this Agreement (or the
application thereof to any circumstance or person) shall be declared invalid or unenforceable to any
extent by a court of competent jurisdiction, the remaining terms, covenants, conditions and
provisions of this Agreement, shall not be affected thereby; and each remaining term, covenant,
condition and provision of this Agreement shall be valid and shall be enforceable to the fullest
extent permitted by law unless the enforcement of the remaining terms, covenants, conditions and
provisions of this Agreement would prevent the accomplishment of the original intent of this
Agreement. The LESSOR and LESSEE agree to reform the Agreement to replace any stricken
provision with a valid provision that comes as close as possible to the intent of the stricken
provision.
10. Attornev's Fees and Costs. The LESSSOR and LESSEE agree that in the event any
cause of action or administrative proceeding is initiated or defended by any party relative to the
enforcement or interpretation of this Agreement, the prevailing party shall be entitled to reasonable
attorney's fees, court costs, investigative, and out-of-pocket expenses, as an award against the non-
prevailing party, and shall include attorney's fees, courts costs, investigative, and out-of-pocket
expenses in appellate proceedings. Mediation proceedings initiated and conducted pursuant to this
Agreement shall be in accordance with the Florida Rules of Civil Procedure and usual and
customary procedures required by the circuit court of Monroe County.
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11. BindiD1! Effect. The terms, covenants, conditions, and provisions of this Agreement shall
bind and inure to the benefit of the LESSOR and LESSEE and their respective legal
representatives, successors, and assigns.
12. Authoritv. Each party represents and warrants to the other that the execution, delivery
and performance of this Agreement have been duly authorized by all necessary County and
corporate action, as required by law.
13. Claims for Federal or State Aid. LESSOR and LESSEE agree that each shall be, and is,
empowered to apply for, seek, and obtain federal and state funds to further the purpose of this
Agreement; provided that all applications, requests, grant proposals, and funding solicitations shall
be approved by each party prior to submission.
14. Adiudication of Disputes or Disa2reements. LESSSOR and LESSEE agree that all
disputes and disagreements shall be attempted to be resolved by meet and confer sessions between
representatives of each of the parties. lfno resolution can be agreed upon within 30 days after the
first meet and confer session, the issue or issues shall be discussed at a public meeting of the Board
of County Commissioners. If the issue or issues are still not resolved to the satisfaction of the
parties, then any party shall have the right to seek such relief or remedy as may be provided by this
Agreement or by Florida law.
15. Cooperation. In the event any administrative or legal proceeding is instituted against
either party relating to the formation, execution, performance, or breach of this Agreement,
LESSOR and LESSEE agree to participate, to the extent required by the other party, in all
proceedings, hearings, processes, meetings, and other activities related to the substance of this
Agreement or provision of the services under this Agreement. LESSOR and LESSEE specifically
agree that no party to this Agreement shall be required to enter into any arbitration proceedings
related to this Agreement.
16. Nondiscrimination. LESSEE agrees that there will be no discrimination against any
person, and it is expressly understood that upon a determination by a court of competent
jurisdiction that discrimination has occurred, this Agreement automatically terminates without any
further action on the part of any party, effective the date of the court order. LESSEE agrees to
comply with all Federal and Florida statutes, and all local ordinances, as applicable, relating to
nondiscrimination. These include but are not limited to: 1) Title VI of the Civil Rights Act of
1964 (PL 88-352) which prohibits discrimination on the basis of race, color or national origin; 2)
Title IX of the Education Amendment of 1972, as amended (20 USC ss.1681-1683, and 1685-
1686), which prohibits discrimination on the basis of sex; 3) Section 504 of the Rehabilitation Act
of 1973, as amended (20 USC s. 794), which prohibits discrimination on the basis of handicaps; 4)
The Age Discrimination Act of 1975, as amended (42 USC ss. 6101-6107) which prohibits
discriminatie,n on the basis of age; 5) The Drug Abuse Office and Treatment Act of 1972 (PL 92-
255), as amended, relating to nondiscrimination on the basis of drug abuse; 6) The Comprehensive
Alcohol Abuse and Alcohol ism Prevention, Treatment and Rehabil itation Act of 1970 (PL 91-616),
as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; 7) The
Public Health Service Act of 1912, ss. 523 and 527 (42 use ss. 690dd-3 and 290ee-3), as
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amended, relating to confidentiality of alcohol and drug abuse patent records; 8) Title VIII of the
Civil Rights Act of 1968 (42 USC s. et seq.), as amended, relating to nondiscrimination in the sale,
rental or financing of housing; 9) The Americans with Disabilities Act of 1990 (42 USC s. 1201
Note), as maybe amended from time to time, relating to nondiscrimination on the basis of
disability; 10) Any other nondiscrimination provisions in any Federal or state statutes which may
apply to the parties to, or the subject matter of, this Agreement.
17. Covenant of No Interest. LESSOR and LESSEE covenant that neither presently has any
interest, and shall not acquire any interest, which would conflict in any manner or degree with its
performance under this Agreement, and that only interest of each is to perform and receive benefits
as recited in this Agreement.
18. Code of Ethics. LESSOR agrees that officers and employees of the County recognize and
will be required to comply with the standards of conduct for public officers and employees as
delineated in Section 112.313, Florida Statutes, regarding, but not limited to, solicitation or
acceptance of gifts; doing business with one's agency; unauthorized compensation; misuse of
public position, conflicting employment or contractual relationship; and disclosure or use of certain
information.
19. No Solicitation/Pavment. The LESSOR and LESSEE warrant that, in respect to itself, it
has neither employed nor retained any company or person, other than a bona fide employee
working solely for it, to solicit or secure this Agreement and that it has not paid or agreed to pay
any person, company, corporation, individual, or firm, other than a bona fide employee working
solely for It, any fee, commission, percentage, gift, or other consideration contingent upon or
resulting from the award or making of this Agreement. For the breach or violation of the
provision, the LESSEE agrees that the LESSOR shall have the right to terminate this Agreement
without liability and, at its discretion, to offset from monies owed, or otherwise recover, the full
amount of such fee, commission, percentage, gift, or consideration.
20. Public Access. The LESSOR and LESSEE shall allow and permit reasonable access to,
and inspection of, all documents, papers, letters or other materials in its possession or under its
control subject to the provisions of Chapter 119, Florida Statutes, and made or received by the
LESSOR and LESSEE in conjunction with this Agreement; and the LESSOR shall have the right
to unilaterally cancel this Agreement upon violation of this provision by LESSOR.
21. Assienment and Sublettine: It is agreed by the parties hereto that Lessee may elect to
sub-lease or assign this Lease Agreement only upon written consent of the Monroe County Board
of County Commissioners, which shall not be unreasonably withheld. All terms of this Lease
Agreement shall be binding on the heirs, executors, administrators, sub-lessees and assigns of
Lessee.
22. Non-Waiver of Immunitv. Notwithstanding the provIsions of Sec. 768.28, Florida
Statutes, the participation of the LESSOR and the LESSEE in this Agreement and the acquisition
of any commercial liability insurance coverage, self-insurance coverage, or local government
liability insurance pool coverage shall not be deemed a waiver of immunity to the extent ofliability
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coverage~ nor shall any contract entered into by the County be required to contain any provision for
waiver.
23. Privile2es and Immunities. All of the privileges and immunities from liability~
exemptions from laws, ordinances, and rules and pensions and relief~ disability, workers~
compensation, and other benefits which apply to the activity of officers~ agents~ or employees of
any public agents or employees of the County~ when performing their respective functions under
this Agreement within the territorial limits of the County shall apply to the same degree and extent
to the performance of such functions and duties of such officers, agents, volunteers~ or employees
outside the territorial limits of the County.
24. Notices: Any notice of communication from either party to the other pursuant to this
agreement is sufficiently given or communicated if sent by Certified Mail, with proper postage fees
prepaid~ addressed to the party for whom intended~ at the following address:
LESSOR:
Monroe County Administrator
1100 Simonton Street
Key West, Florida 33040
LESSEE:
Tropical Watersports~ LLC
c/o Francis Gonzon
1002 Fleming Street
Key West Florida 33040
25. Le2al Obli2ations and Responsibilities: Non-Delegation of Constitutional or Statutory
Duties. This Agreement is not intended to~ nor shall it be construed as~ relieving any participating
entity from any obligation or responsibility imposed upon the entity by law except to the extent of
actual and timely performance thereof by any participating entity~ in which case the performance
may be offered in satisfaction of the obligation or responsibility. Further, this Agreement is not
intended to~ nor shall it be construed as, authorizing the delegation of the constitutional or statutory
duties of the County, except to the extent permitted by the Florida constitution~ state statute~ and
case law.
26. Non-Reliance bv Non-Parties. No person or entity shall be entitled to rely upon the
terms~ or any of them~ of this Agreement to enforce or attempt to enforce any third-party claim or
entitlement to or benefit of any service or program contemplated hereunder, and the LESSOR and
the LESSEE agree that neither the LESSOR nor the LESSEE or any agent, officer~ or employee of
either shall have the authority to inform~ counsel~ or otherwise indicate that any particular
individual or group of individuals, entity or entities, have entitlements or benefits under this
Agreement separate and apart~ inferior to, or superior to the community in general or for the
purposes contemplated in this Agreement.
27. Attestations. LESSEE agrees to execute such documents as the LESSOR may
reasonably require, to include a Public Entity Crime Statement, an Ethics Statement, and a Drug-
Free \Workplace Statement.
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28. No Personal Liabilitv. No covenant or agreement contained herein shall be deemed to be
a covenant or agreement of any member, officer, agent or employee of Monroe County in his or
her individual capacity, and no member, officer, agent or employee of Monroe County shall be
liable personally on this Agreement or be subject to any personal liability or accountability by
reason of the execution of this Agreement.
29. Execution in CounterDarts. This Agreement may be executed in any number of
counterparts, each of which shall be regarded as an original, all of which taken together shall
constitute one and the same instrument and any of the parties hereto may execute this Agreement
by signing any such counterpart.
30. Section Headin2:s. Section headings have been inserted in this Agreement as a matter of
convenience of reference only, and it is agreed that such section headings are not a part of this
Agreement and will not be used in the interpretation of any provision of this Agreement.
31. Federal. State and Local Law. The company shall comply with all federal, state, county
and local laws, ordinances, rules and regulations now and hereafter in force which may be
applicable to the operation of its business at the Clarence S. Higgs Memorial Beach, including the
minimum standards for fixed base operators, as amended from time to time.
32. Mutual Review. This agreement has been carefully reviewed by LESSEE and LESSOR,
therefore this agreement is not to be construed against either party on the basis of authorship.
33. Indemnification/Hold Harmless. Notwithstanding any minimum insurance requirements
prescribed elsewhere in this agreement, LESSEE shall defend, indemnify and hold the LESSOR
and the LESSOR's elected and appointed officers and employees harmless from and against (i) any
claims, actions or causes of action, and (ii) any litigation, administrative proceedings, appellate
proceedings, or other proceedings relating to any type of injury (including death), loss, damage,
fine, penalty or business interruption, that may be asserted against, initiated with respect to, or
sustained by, any indemnified party by reason of, or in connection with, (A) any activity of
LESSEE or any of its employees, agents, contractors or other invitees during the term of this
Agreement, (8) the negligence or willful misconduct of LESSEE or any of its employees, agents,
contractors or other invitees, or (C) LESSEE's default in respect of any of the obligations that it
undertakes under the terms of this lease, except to the extent the claims, actions, causes of action,
litigation, proceedings, costs O' expenses arise from the intentional or sole negligent acts or
omissions or'the LESSOR or any of its employees, agents, contractors or invitees (other than
LESSEE). Insofar as the claims, actions, causes of action, litigation, proceedings, costs or
expenses relate to events or circumstances that occur during the term of this lease, this section will
survive the expiration of the tenn of this lease or any earlier termination of this lease
IN WITNESS WHEREOF, the parties have caused this lease to be executed this 15th day of
April, 2009.
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BOARD OF COUNTY COMMISSIONERS
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