Fort Walton Beach Council agenda — 08-08-2006 ‎(workshop)‎ — reading text

Fort Walton create a municipality, and, as such, exempt from ad valorem real property taxation, this Agreement may Page - 1-  Lease . City of Fort Walton Beach and Panhandle Animal Welfare Society, Inc. possessory interest or security interest in Lessee which is subject to real property or intangible taxation. Should this occur, the Lessee agrees to pay such real property or intangible taxes prior to delinquency, except in the case of contest of such taxation made in good faith. The Lessee will have the right to contest the validity or amount of real property or intangible taxes by means of appropriate proceedings diligently pursued at Lessee's sole expense. The Lessee agrees that, upon final determination of liability, it will promptly pay the amount of taxes found owing, along with any interest, penalties or cost that may result from the Lessee's contest. The City will cooperate with the Lessee in any such contest of the validity or amount of real property or intangible taxes, provided the City is not required to pay any sums to the Lessee or any third party as a result of such cooperation. B. Other Taxes: The Lessee will pay all taxes, license fees or other governmental charges, ( including but not limited to commercial personal property taxes, sales and use taxes, resort taxes, etc.) assessed or imposed on the personal property of the Lessee located on the premises. SECTION 5: UTILITIES The Lessee shall pay before delinquency all charges for utilities, including but not limited to water, electricity, gas, heating, cooling, sewer and telephone, used by the Lessee on the premises, and all charges for solid waste collection service. SECTION 6: ALTERATIONS. MAINTENANCE, AND REPAIRS A. The Lessee may make alterations or additions to the premises, but unless made on an emergency basis to prevent injury to person or property, the Lessee will submit plans for any alteration or addition with a value of more than $ 7, 500 to the City for the Citts prior approval, such approval not to be unreasonably withheld. The Lessee shall obtain all necessary building and other permits per City Code relating to any additions, alterations or repairs. All alterations or additions shall be made at the Lessee' s expense. Upon termination of the Lease Agreement, Lessee shall remove all improvements, additions, and alterations except for parking. The Lessee will provide the City with as- built plans for any structural capital improvements or for any underground improvements installed. The Lessee will be required to use a licensed contractor for any improvements. The Lessee shall not have the right to create or permit the creation of any lien attaching to the City's interest in the premises as a result of any construction of capital improvements, alterations or additions. B. Maintenance: The Lessee assumes sole responsibility for maintenance and repair or alterations of the premises occupied by it including compliance with all laws, ordinances and regulations which are or may become applicable to such premises from time to time. The Lessee will be required to use a licensed contractor for any repairs. The Lessee agrees it will maintain the premises in a sanitary and safe condition throughout the term of the Agreement. Lessee shall further keep the demised premises and appurtenance in good order and repair, ( excepting, however, all repairs made necessary by reason of the happening of fire and other unavoidable casualty normally cOvered by insurance) at its own cost and expenses. C. Janitorial and Other Services: The Lessee shall furnish all janitorial and other services for maintaining the premises in a neat and orderly state of cleanliness comparable to adjoining property. The Lessee shall be responsible for disposal of all generated solid waste. Page - 2-  Lease. City of Fort Walton Beach and Panhandle Animal Welfare Society, Inc. SECTION 7: SIGNS All signage must be acceptable under the Fort Walton Beach City Code of Ordinances. SECTION 8: INSURANCE A. Liability Insurance: The Lessee shall, during the term, and at its sole expense, obtain and keep in force, with City named as additional insured, commercial general liability insuran~ including' personal injury, bodily injury, broad form property damage, operations hazard, owner's protective coverage, contractual liability and products and completed operations liability in limits not less than $ 1, 000,000 for each occurrence and in the aggregate. (The aggregate limits of such insurance to apply specifically to the premises and not to multiple locations). The Lessee shall be responsible for maintaining and paying the premium for property insurance covering Lessee' s interest in the personal property belonging to the Lessee. This insurance shall include the full replacement value of all leasehold improvements made by the Lessee to the building. Coverage on the leasehold improvements shalf be written on an all- risk format and include the City' s insurance interest in such improvements. Lessee shall furnish evidence satisfactory to City of the existence of and maintenance of such insurance prior or contemporaneous with the commencement of the term and thereafter at least fifteen ( 15) days prior to the date on which such policy is required to be renewed. Lessee shall obtain a written obligation on the part of each insurance company to notify the City at least thirty (30) days prior to the cancellation of each insurance. B. Worker's Compensation: If required by Florida law, the Lessee shall maintain in force a policy of worker's compensation insurance in compliance with applicable Florida law. The worker's compensation insurance policy shall include employers liability insurance with limits of liability not less than $ 300, 000 for each accidentl$300,OOO per employee for disease/$ 300,OOO policy limit for disease. C. Automobile Liability: The Lessee shall maintain in force a policy providing automobile liability insurance which provides coverage for the exposure created by the use of "any Auto", as designated by the use of symbol 1" or the individual insurance company' s equivalent, in the policy. D. All such insurance policies required by this lease shall contain a stipulation that the insurance company shall not be permitted to cancel or non- renew the insurance without providing written notice to the City and the Lessee, of its intent to cancel or non- renew, at least 60 days prior to the effective date of such cancellation or non- renewal. E. The City has the right to periodically review the insurance requirements of this lease and adjust the requirements in order to conform to common standards, practices and economic conditions in existence at the time of such review. F. Rating: All policies required to be maintained by the Lessee pursuant to this section shall be issued in a fonn acceptable to the City by insurance companies having and maintaining at least an A. VII rating in II the most currently available Best's Insurance Reports" and qualified to do business in Florida. In no event shall such policy or policies provide for a deductible amount for any type of coverage in excess of 1, 000. 00 and all such policies shall provide that the full amount of any losses sustained shall be payable for the City's benefit under the terms of this agreement notwithstanding ~ ny act, omission or Page - 3-  Lease - City of Fort Walton Beach and Panhandle Animal Welfare Society, Inc. negligence of City or Lessee which might otherwise result in a forfeiture of insurance coverage. Failure to provide or maintain coverage as provided in this section shall be deemed an event of default hereunder. G. Indemnity: The Lessee shall protect, defend, indemnify and hold the City and City's officials and employees, harmless from all claims, demands, causes of action or liability, resulting from injury to or death' of persons or damage to or loss of property sustained on or about the premise and arising from the Lessee' s operations or as a proximate result of the acts or omissions of the Lessee or its employees, agents, invitees or guests. The Lessee shall also pay any legal expenses the City may incur in establishing that the Lessee or Lessee' s insurer is responsible under this section. This provision does not apply, however, to any such liability as may be the result of the direct and proximate negligence or willful misconduct of City or City's employees or agents acting within the scope or their employment or agency or users of the City retained areas. SECTION 9: ASSIGNMENT AND SUBLETTING Except as otherwise provided below, the Lessee shall not assign this Agreement or sublet all or any portion of the premises without the prior written consent of the City. The City shall have the unqualified right to assign its rights and obligations under this Agreement, but any such assignment by the City shall not impair the Lessee' s rights under this Agreement. SECTION 10: QUIET ENJOYMENT Subject only to the terms of this Agreement, so long as the Lessee complies with its obligations, the City shall secure to the Lessee the quiet and peaceful enjoyment of the premises and the sole and exclusive possession of the premises without objection or interference from the City or any party claiming under the City. SECTION 11 : DEFAULT A. Each of the following shall be a default by the Lessee and a breach of this Agreement: A failure to pay the rent herein reserved, for a period of ten days after notice; Failure to comply with the building and occupancy requirements within the time frame as stated in Section 1; and Any failure in the performance of any other covenant or condition of this Agreement on the part of the Lessee to be performed, for a period of thirty days after notice. B. In the event of any such default of the Lessee, the City may serve a written notice upon the Lessee that the City elects to terminate this Agreement upon a specified date not less than thirty days after the date of the serving of such notice, and this lease shall then expire on the date so specified as if that date had been originally fixed as the expiration date of the term herein granted. c. In the event this Agreement shall be terminated as hereinbefore provided, or by summary proceedings Page -4-  Lease. City of Fort Walton Beach and Panhandle Animal Welfare Society, Inc. , or otherwise, or in the event the demised