Item C22
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: July 15. 2003
Division:
Public Works
Bulk Item: Yes -1L. No
Department: Facilities Maintenance
AGENDA ITEM WORDING: Approval to renew Lease Agreement for the first of two additional five
(5) year tenns with Conch Cruisers, Inc. (Salute' Restaurant, Higgs Beach) commencing August 12,
2003, and ending on August 11,2008.
ITEM BACKGROUND: On August 11,2003, the above-referenced Lease Agreement will expire.
Conch Cruisers, Inc. is exercising its option to renew this Lease Agreement for the first of two
additional five (5) year terms.
PREVIOUS RELEVANT BOCC ACTION: On August 12, 1998, the Board approved a 5-year
Lease Agreement with Conch Cruisers, Inc. to operate the Higgs Beach Restaurant/Concession. On July
17, 2002, the Board approved a Lease Amendment with Conch Cruisers, Inc. to provide Lessee the
option to renew the lease for two additional five (5) year terms, to close the restaurant between
September 16 and October 15 of each year, and revise Ord. 13.5-3 (2) (C), Higgs Beach County Park
Regulations, in order to change restroom closing hour.
CONTRACT/AGREEMENT CHANGES: New Lease Agreement effective August 12,2003, and
expiring on August 11,2008. Rent increase in accordance to the Consumer Price Index of2.4% from
$5108.12 per month to $5230.71 per month.
STAFF RECOMMENDATIONS: Approval as stated above.
TOTAL COST:
N/A
BUDGETED: Yes N/ A No
COST TO COUNTY:
N/A
SOURCE OF FUNDS:Revenue-producing
REVENUE PRODUCING: Yes -.lL.- No
Year $62.768.52
AMOUNT PER MONTH $5230.71
DIVISION DIRECTOR APPROVAL:
OMBIPur...Cbasing &2' kM~gement_
/ /J. /'..
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Dent Pierce, Public Works
APPROVED BY: County Atty _
DOCUMENTATION:
Included ><
To Follow
Not Required_
DISPOSITION:
AGENDA ITEM # ~~
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STONES & CARDENAS
ATTORNEYS AT LAW
221 SIMONTON STREET, KEY WEST, FL 33040
TELEPHONE (305) 294-0252 FAX (305) 292-5442
ADELE VIRGINIA STONES, P.A,
SUSAN M. CARDENAS, P.A.
May 22, 2003
John W, King, Senior Director
Lower Keys Facilities
Monroe County Public Works Division
Facilities Maintenance Department
3583 South Roosevelt Boulevard
Key West, FL 33040
Re: Salute Restaurant / 1000 Atlantic Boulevard. Kev West. Florida
Dear John:
On behalf of my client Conch Cruisers, Inc., owner of Salute restaurant, please accept this
letter as formal notification by my client, of its intent to exercise its option to renew the lease for
an additional five (5) year term. The new term will commence on August 12, 2003 and end on
August 11, 2008.
I enclose herewith for your review, a copy the executed lease agreement granting my client the
option to renew which is exercised herein.
Thank you for your kind assistance, If you have any questions, please do not hesitate to
contact me.
Very Truly Yours,
~wm-Cl~
Susan M. Cardenas
c: client
RErET'lED
MAY 2 7 2003
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BY: Y/.AJ
U
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Conch Cruisers,Inc Contract #
Effective Date: August 12, 2003
Expiration Date: August 11, 2008
Contract Purpose/Description:
Renewal of Lease Agreement to operate restaurant/concession on Higgs Beach, Key
West, Florida
Contract Manager: Miguel Carbonell 4385 Facilities Maint. #4
(Name) (Ext.) (Department/Stop #)
for BOCC meeting on 07/15/03 Agenda Deadline: 06/30/03
CONTRACT COSTS
Total Dollar Value of Contract: $ Revenue
producing
Budgeted? YesO No 0 Account Codes:
Grant: $
County Match: $
Current Year Portion: $
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ADDITIONAL COSTS
Estimated Ongoing Costs: $_/yr For:
(Not included in dollar value above) (eg. maintenance, utilities, ianitorial, salaries, etc.)
CONTRACT REVIEW
Date In
Changes
Needed~
YesONo~
Division Director
Comments:
OMB Form Revised 2/27/01 Mep #2
RENEWAL AGREEMENT
(Salute' Restaurant at Higgs Beach)
This Renewal Agreement is made and entered into this July 15, 2003, between the
COUNTY OF MONROE and Conch Cruisers, Inc, in order to renew the Lease
Agreement between the parties dated August 12, 1998,as amended on July 17, 2002,
copies incorporated hereto for reference, as follows:
1. In accordance with Article 1. of the July 17, 2002 Lease Amendment, the Lessee
exercises the option to renew the lease.for the first of two (2) five-year terms; the first
to commence on August 12, 2003, and terminate on August 11, 2008.
2. The Lease amount shall increase by the Consumer Price Index (CPI), National Index
for Wage Earners and Clerical Workers, and shall be based upon the Annual
Average CPI computation from January 1 through December 31 of the previous
year. The CPI increase shall be calculated for each additional year for the fIVe-year
period,
3. Rent, therefore, payable to Monroe County shall increase by 2.4% from $5108.12
per month to $5230.71 per month,
In all other respects, the original agreement between the parties dated August 12, 1998,
remains in full force and effect.
IN WITNESS WHEREOF, the parties have hereunto set their hands and seal the day
and year first written above.
(Seal)
Attest: DANNY L. KOLHAGE, CLERK
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:
By:
Deputy Clerk
Conch Cruisers, Inc.
Witness
By:
Witness
Dawn Parrinello, President
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LEASE AMENDMENT ",,, <!
(Salute' Restaurant at Higgs Beach.)
THIS Amendment is made and entered into this 17th day of July 2002, between the
COUNTY OF MONROE and CONCH CRUISER'S INC. in order to amend the Agreement
dated AUIDIst 12, 1998, (a copy of which is incorporated hereto by reference) as follows:
I, Revise paragraph 3 of the Lease to provide Lessee the option to renew the lease for two
additional five (5) year terms; the first to commence, at Lessee's option, on August 12,
2003 (as presently provided in the lease); and the second term to commence, at Lessee's
option, on August 12,2008.
2. Revise paragraph 6(A) of the lease to provide: (l) Lessee shall be entitled to close the
restaurant for three (3) weeks, between the dates September 16 and October 15 of each
year; and (II) Public restroorns shall be opened at 7:00 a.m. and close at II :00 p.rn"
Monday - SWlday, including holidays, pending change in COWlty Ordinance #13.5-
3 (2)(C).
3. In all other respects, the original agreement between the parties dated August 12, 1998,
remains in full force and effect.
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~~;.7i~!02..(~.:!::ITNESS WHEREOF, the parties have hereunto set their hands and seal, the day and
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. D<(puty Clerk
BOARD OF COUNTY COMMISSIONERS
OF MONROE CO~rY, FLORIDA
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By:
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Wltness to onch Cr isersl
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CONCH CRUISERS, IN~/j /
By: /, ,~?C
awn Parrinello, President
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SECTION THREE
NEG011ATED'LEASE AGREEMENT
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nITS lease, entered into on the 1ZIh day of ~ u?,ust. 1998, by and between the BOA.RD OF
COUNTY COMMISSIONERS, MONROE coUNTY, FLORIDA (Lessor) and ~
Dpisers, Tnc.. Sal Parrinello (Lessee), whose address is 1601 Bahama Drive Kev West.
Elorida, 33040,
The parries to this lease hereby agree to the following:
1. This lease evidences the grants, covenants and agreements made between the parties with
'reference to the following described premises and as further identified in Exhibit "A",
Clarence S, Higgs Memorial Beach, Key West, Florida: includmg
exclusive use of all existing facilities, restaW"ant, bath house, and storage
areas, to have the exclusive right to provide and maintain a full servIce
concessiontrestaW"ant, such as furnish food and beach concess:on
and provide janitorial services to the public rest rooms inclusive of open:ng and closmg and
supplying paper products at Clarence S, Higgs Memorial Beach and mair.ta:n ail equipment
necessary for the operation of these facilities.
2, The Lessor hereby grants to the Lessee the exclusive right and privliege 0:' operating and
maintaining a full service concession/restaurant at Clarence S. Higgs !'vfe~oria! Beach,
Key West, Monroe County, Florida, for a tenn offive (5) years, said conceSSion/restaurant
to be located at the concrete building noW situated upon said beach, and in as is condition,
Square. footage allocations shall be limited to the interior and enclosed pat:o area as
referenced in Exhibit "A",
3. The Lessee may exercise an option to reneW this lease for an additional five (5) years with
written consent of the Boar.d of County Commissioners, by giving Lessor wrinen notice of
their intention to exercise said option within sixty (60) days previous to the expiration of
the original five (5) year tenn,
4, The Lessee, in considerati~n of the foregoing rights and privileges, does hereby covenant
with the Lessor to pay rental fees as follows:
:ilar one (l~ Moothly reot $4,583.33 ($55,000,00 per year)
llW~vO (2) thru five (5~ Monthly rent S4,910,OO (S58,920,OO per year)
The conrract/agreement (lease) amount agreed to herein may be adJustec a:1Ilually In
accordance with change in the Conswner Price Incex (CPI), Natlona; !ncex for Wage
Earners and Clerical Workers, and shall be based upon the annual average CPJ
computation from January 1 thr.ough December 31 of the previous year.
A. Upon execution of this lease and prior to the Lessor's delivery of the premises to
Lessee, Lessee shall deliver to the L~ssor the swn of S5.Q.8.3..J.3., ior the first
month's rent and damage deposit of $500,00 and an irrevocable letter of credit
from a ioca1 bar.k in tlJ.e amount of S4,91 0 for the last month's rent. Lessor shall
not be required to post bond securing said advance rent or.depos!t.
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The first monrh 's rent, paid in advance, shall be for the mo.1~h of October.
l.22a.:R~nt shall be due on the fust day of each and every ;'r,onth thereafter, rent
being payable in advance during the term of this lease Lessee may asswne
occupancy as of A uf'ust 13. 1998 for the purpose of coordinating demolition and
renovation improvements, conditioned upon his full compliance with all terms of
this lease, inclusive of insurance coverage effective as of said date. In addition
to the foregoing rental payments, the Lessee covenants and agrees with the
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B.
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Lessor to pay State taxes, if any, and all utility charges, including but not limited
to electric, water, sewer, and solid waste at said concesslON'restaurant, which
shall be a result of the operation of the facilities granted under this lease. The
Lessor reserves the right to terminate this lease for non-payment of rent by the
Lessee for a period offifieen (IS) days or more.
S. In connection with the above demised properties, the Lessor covenants with the Lessee that
conditioned on Lessee's perfonnance and observance of Lessee's covenan ts herein, Lessee
shall have quiet enjoyment and peaceable possession of the premises durlT!g the term of
this lease. Tn the event the county elects to maintalT, and/or improve !:s prope'-:Ies m the
vicinity of the leasehold herein, either by necessJl)i, or by chOice. s:,)chac~!\',~ w:!! not be
considered as a breach of any covenant of this lease
6, Lessee further covenants and agTees as follows:
A, To keep open such concession/restaurant Monday-Sunday, Including holidays,
from 7:00AM-1O:OOPM, and shalJ not exceed the established beach hours in as
specified in Monroe County Ordinance 13.5-3 (2)(E). . Public rest rooms shall
be opened at 7:00AM and closed at sunset, Monday-Sunday, Including holidays,
in accordance with Monroe County Ordinance 13.5-3(2)(C).
B. To furnish the necessary equipment, furnishing and fixtures needed [0 operate
the concession/restaurant. All moveable equipment and furnishings shall remain
the property of the Lessee and may be removed from the premises by Lessee at
the termination of this lease agreement, with Lessor's consent, If Lessee fails to
remove said moveable equipment or furnishings within ten (10) days ana
termmatiolJ of this lease, said items shall then become the property of the
Lessor.
C Lessee shall prOVide full Janitonal services for the public rest rooms Inclusive oJ
p~ovldmg all JanJlonaJ supplies and paper products. Jar.i:ona! serVIce frequency
shall be on a daily basis to ensure rest rooms are maintamed clean and sanitary.
Rest rooms are to be inspected during the regular business day [0 ensure supplies
are available and facility is clean and properly sanitized,
D. Lessee shall maintain a City and County Occupational License during the period
of this lease,
E, Lessee agTees to keep the leased premises in a safe, clean, and well-maintained
order at no expense to the Lessor. This provision is to be monitored by the
.
Director of Public Facilities Maintenance or his representative. .
F. Lessee agrees to operate his business in a business-like manner.
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7.
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It IS agreed by the parnes hereto that Lessee may elect to sub-lease or assIgn the lease
agreemenT only upon previous written consent of the Board of County CommIssioners for
Monroe COWlty. The terms of this agreement shall be binding on the ~e:~s, executors,
administrato~s, sub-lessees and assigns of Lessee, which shall not be ,"r.:easor.ab!y
withheld.
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8. It IS hereby covenanted, stipulated and agreed by and between the pa=,:es ~e~e:o that there
shall, during the said demised term, be no mechanic's hens upon the cor.cesslorllrestaUrant
or Improvements thereto; in case of any attempt to place a mechanIC '5 ;;er. on premises,
the Lessee must pay off the same; and that if ~efauJt in payment thereoi shall continue ior
Ihll,>, (30) days after written notice, said Lessor shall have the right and pr:vilege, at iTS
opnon, to pay off the same or any portion of the same, and the amOU:H so paid, Including
expenses. shall, at the option of the said Lessor, be so much addJtlor.a; ~er.: O:.1e from said
Lessee a: the next rent. due after such payment, with interest at the :a:e es:a?::sheo by the
Comptroller under Sec. 55.03, F.S" for the year :n whiCh the paymer.: Jo:a:7'.e o...erd:.1e
:"oThlng ::: thIS paragraph is to be read as a walver or aL:::'onza::on =;. ::-.e C:>.::ry of ;tS
constituTIonal and statutory immWlity and right :0 have ItS property ;';ee v! s_::-. :;ens
Alcoholic b~~iy'5;~td Withuftlle'en.c;](ised res~~~t and patIo or.:y, '"pon
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Entertammen: :nay be provided only in the en-elosed restal.l!ant and pa::o a~ea
beverages must cease by 10:30 P.M,
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acquisition and maintaining proper licenses from local, state, and federal agencIes. No
carry-out sales of alcoholic beverages is permitted, Sale~ and consumption of alcoholic
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entertamment must be acoustic soft background r;.:.;SlC anc must cecse:;.\ ::. 30 P ?v!
!! Lessee shall be responsible for and prOVIde all licenses requlrec by ~:: ,.:;:~:, s;a:e a::d
federal agencIes, including Deparrmen,T of Health.
12 It IS expressly covenanted between the parties hereto that the Lessee w;:: :-:01 :.Ise. suiier
nor permit any person to use in any manner whatsoever the said demised p~operty, nor any
pOrtion thereof. for pUrposes calculated to injure the reputation of the prem: ses or of the
nelghbonng property. nor for any purpose or use in Violation of the laws of the United
5:~:e; ,:_,:-:" :~e Sta:e of Flo~ca, or of the ordinances of Monroe County, Flonda and that
:~,~ :,,~;;~e .,,;;. "ee?a::C save :~e Lessor foreve~ har.n!ess from arl) ;:oe:-.3.:;.X da;riage or
::-:a~ges :mposed ior any ViolatIOn oiany saId laws, whether occa;!():~e:: :-) ::eg:ec: J:"
Lessee, and that said Lessee wlll indemnify and save and keep harmless the Lessor against
and f:-om any loss, cost, damage and expenSe arising out of any acclder.t or other
occurrence, causing injury to any person or property whomsoever or whatsoever, and due
dlrect!y or mdirectly to the use of the premises, or any part thereof, by the Lessee.
!:; It :s :\::.:'1er agreed that in no case shall the Lessor herein be liable, under any express or
m-:p!:ed covenants in this lease agreement, for any damages whatsoever to the Lessee
beyond the rent reserved by the Lc;ase agTeement accruing.. for the act, or breach of
co'.enan:, for which damages may be sought to be recovered against sa;c Lessor, and that
In the event Said Lessee shall be ousted from the posseSSion of saId pro::;c"y by reason of
any defect in the title of said Lessor or said Lessor's authority to make thIs' lease
agreement. saId Lessee shall not be required to pay rent under this lease agreement whlle
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h; is so depn've~the possession of said property, and thUid Lessor shall not !&Cur any
liability of such ouster, .
Tt IS further mutually covenanted and agreed between the parties hereto ,hat ~o waiver of a
breach of any of the covenants of this lease agreement shall be consrrued to oe a waiver of
any succeeding breach of the same covenant.
....
The Lessee hereby covenants and agrees that he, his agents, employees or otherwise shall
observe and obey all lawful rules and regulations which may from ll:;:e to t::ne du::ng the
term hereby promulgated and enforced by the Lessor at said beach.
The Lessor reserves the right hereunder to enter upon the premises at any reasonable time
during normal beach hours for the purpose of inspecting said premises, ane the Lessee
hereby agrees to keep the premises at all times in a clean and sanitary condition, and not to
mamtain or keep upon said premises any propen:ies or equipmenr ~ot ,"sed ,:1 conneCllon
/_ ",lith the operation of said business, unless authonzed by the Lessor to co so
I",L=~ The Lessee agrees not to make any major alterations to the buildmg !o~a:ec C:l sa,d
premises, without first obtaining written consent of the Lessor to do so, .....[::::-: W:;: :10: be
15.
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unreasonably withheld. Such alterations shall be based on plans approved oy :i':e D:rectOr
of Facilities Maintenance and shall be subject to all City and Count)' Code ~rov:s:ons
governing constrUction. Lessee shall be responsible for obtaining any peron::s required by
any governmental agency.
The Lessee shall be responsible for maintaining the strUcture. The Lessee WI!! keep the
premIses clean at all times and must meet all requirements for food hanci,r:g as required
by the Monroe County Depamnent of Health, All site improvements sha!i oe pre,
approved by the Monroe County Board of County COlTUTllSsioners.
The Lessee shall be responsible for applying and obtainmg all permits necessary by all
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local, state, and federal agencies.
20 Lessee covenants and agrees to indemnify and hold harmless Monroe Co:.::-::)' Board of
County Commissloners fr,om any and all claims for bodily injury (inciuclr:g dea:h),
personal injury, and property damage (including property owned by Mo~oe County) and
an: other losses, damages. and expenses (including anomey's fees) which arIse out of, m
:0r::le~::0n w::h, or b: reason 0:' the Lessee utiliZing the property goverT.ed b) this
.ase ~e~:a: ag:-eerr:e~Jt T.,;e ex:e;-:: of !lability IS :r.:-:o \l.'~: limited ~O, ~~c;.;;~c, 0~ !esser:ed
':: :~e ::-:s;,;:a;.:e requirements CO:1tzlned elsewhere ,',;:th:~ thJS ag;eeme:::.
....:: ?ropeT'l) 0:- ar:y kmd that may be on the premises dU!1:1g the cont:r1ua:-:-::e o~' thiS Lease
sha!: be at the sole risk of the Lessee, the Lessor shall not be liable to theLessee or any
od:er j?erson for any inJUry, loss, or damage to property to any person on the premises,
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22. In the event that the demised premises, or the m~ part thereof are destr~ed by fire,
storm, or any other casualty, the Lessor at its option may forthwith repai~ the damage to
;sL!ch srrucrure at its own cost aDd expense,. The rental thereon shall cease :.:.'1t1! the
completion of such repairs and the Lessor will immediately refu.:1(~ ihe ?~o rata pan of any
rentals paid in advance by the Lessee prior to such destruction. Shoi.)!c the premises be
. only partly destroyed. so that the major part thereof is usable by the Lessee, then the rental
shall abate to the extent that the injured or damaged parr bears to the ",'hole of swch
premises and such injury or darnage shall be restored by the Lessor as speedily as is
practicable and upon the completion of such repairs, the full rental shall commence and the
Lease shall then continue the balance of the term.
23. All written notices pursuant to this lease shall be forwarded to the :"o:!ow:r.g addresses:
Lessor; Lessee:
Monroe County Public Works Conch Cr,,:sers, Inc.
Facilities Maintenance Department Sal Parrinello
3583 South Roosevelt Boulevard 1601 Bahama Dnve.
Key West, Florida 33040 Key West, F!o;.da 330~O
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24 If any dispute concerning this lease should arise between the Lessor a;.c :"essee a.'1c which
results in litigation, the prevailing parry shall be entitled to paymer:: c:' ::5 r~aso~able
arromey's fees and costs associated with said litigation from the los:;.g 1'a:-:)
25. The Lessee will be responsible for all necessary insurance cove!"age as Indlcatec on [he
attached forms identified as GIR. GL, We1, Vl., GLLIQ, ARP. and all o[he~ requirements
found to be In the best interest of Monroe County, as may be Imposed by [he Monroe
County Risk Management Department. All insurance required coverages shall actively be
maintained during the lease term,
26. This lease shall be goveme? by the laws of the State of Florida. Ven:.;e :or any OlsputeS
arising under this agreement shall be in a court of competentJunsd:ctlOr. In Monroe
County. Flonda.
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