Fort Walton Beach Council agenda — 10-13-2009 regular — reading text

a lease with the Kiwanis Charities of Fort Walton Beach. Inc., ( KCFWB). Subsequent to Council direction I met with Mr. Hickenbotham of the KCFWB to discuss the lease. The Council' s motion did not include a rental price or term but the discussion at the council meeting led me to understand that the rent should remain the same and the term to be consistent with other leases — five ( 5) years. 1. 1 The term of the lease is five ( 5) years with one ( 1) option to renew for another five ( 5) years. If the option is exercised, the rent will be re- negotiated. 1. 2 The attached draft lease sets the annual rent for the first term to be $ 1. 00 per year. 1. 3 The City will maintain the exterior of the building and the KCFWB will maintain the interior and landscaping. 2. Discussion 2. 1 The lease has been reviewed by the city attorney and has been found legally sufficient 2. 2 The Board of Director' s of the KCFWB has reviewed the lease and have found it satisfactory. 3. Recommendation 3. 1 Staff recommends that the lease between the City and the KCFWB be approved. 121-  LEASE AGREEMENT Between CITY OF FORT WALTON BEACH And KIWANIS CHARITIES OF FORT WALTON BEACH. INC. The State of Florida County of Oka.loosa 1. Parties This lease is made between the City of Fort Walton Beach, Florida, a municipal corporation, with its principal place of business at 105 Miracle Strip Parkway SW, Fort Walton Beach, Florida 32548, and its mailing address of Post Office Box 4009, Fort Walton Beach, Florida 32549 -4009, as City /Lessor, and Kiwanis Charities of Fort Walton Beach. Inc., a not for profit ( section 501( c)( 3)) corporation, with its mailing address of P. O. Box 2198, Ft. Walton Beach, FL 32549 -2198 and its principal place of business at 55 Ferry Road, Fort Walton Beach, Florida, as Lessee. 2. Description of leased premises City hereby leases to Lessee and Lessee hereby leases from City the property and improvements situated at 55 Ferry Road, Fort Walton Beach, Florida, ( "premises ") and more fully described in E:-c-hibit A attached to this lease and incorporated by reference. 3. Use and Occupancy a. Purpose Lessee shall use and occupy the premises as and for the legitimate public purpose of the Kiwanis Charities of Fort Walton Beach. Inc. to assist worthy students to further their education, provide a gathering place for Boy Scouts and otherwise in accordance with its Articles of Incorporation, as amended, its Constitution, and its By Laws in effect as of the date of this lease. Lessee shall not change its use of the premises without City's prior written consent. b. Compliance with Law Lessee shall comply with all applicable Federal, state and municipal laws, ordinances and regulations and premises rules, and shall not directly or indirectly make any use of the premises which may be prohibited or may be dangerous to person or property or may increase the cost of insurance or require additional insurance coverage. C. City' s Credit Power Nothing herein shall be construed as a pledge or use of the City' s taxing power or credit. 4. Term 1St The premises is leased for a term to commence on the day of October, 2009, and to end oth on the day of September, 2014, unless renewed or terminated at an earlier time and date as this lease may provide. Page 1 of 6 Kiwanis Charities Fund of Fort Walton Beach. Inc. Lease 122- 5. Option to Renew City grants to Lessee an option to renew this lease for one ( 1) period of five ( 5) additional years after expiration of the initial term of this lease. At least sixty ( 60) days prior to the date of termination of any term, either party to this agreement may notify the other party, in writing, of its intent to renew this lease or to terminate this lease. Upon a renewal of the lease, all terms and conditions as stated herein, unless modified in writing by the parties or otherwise stated herein, shall continue in full force and effect. If either party notifies the other of its intent to terminate this lease, this lease shall terminate as of midnight on the 30th day of September in the year such notice is st given or on the 61 day after the date of notice of termination. 6. Rent The total annual rent for the first term shall be $ 1. 00. If this lease is renewed for a second term, the total annual rent for the second term shall be negotiated at that time. 7. Notice and Place for Payment of Rent Lessee: shall pay rent to the City at the City's principal place of business stated above by delivering such payment to the City Clerk. Any notice by either party to the other shall be in writing and shall be deemed to have been duly given only if delivered personally or sent by registered or certified mail in an addressed postpaid envelope. If to Lessee, notice shall be sent to P. O. Box 2198, Ft. Walton Beach, FL 32549 -2198. If to City, notice shall be sent to the City Manager, PO Box 4009, Fort Walton Beach, Florida 32549. Notice shall be deemed to have been duly given, if delivered personally, upon delivery, and if mailed, on the third ( 3) day after the mailing of such notice. 8. Maintenance, Repair, and Inspection of premises Lessee shall pay all utilities for the premises, and maintain and make all necessary repairs to the interior of the building and the landscape. Lessee shall commit no act of waste and shall, in the use and occupancy of the premises, conform to all applicable laws, orders, and regulations of any governmental entity as they pertain to the condition of the premises. The City may enter the premises at any reasonable time, upon adequate notice to Lessee, except that no notice need be given in case of emergency, for the purpose of inspection of the premises. 9. Alterations, Additions or Improvements Lessee shall not, without first obtaining the written consent of City, make any alterations, additions or improvements in, to or about the premises. Should ( a) permit( s) of any kind be required for the work: to be performed the Lessee must first obtain the necessary permit( s) prior to commencing the work. The parties understand that the improvements and appurtenances situated upon the premises at the time of execution of this lease are the property of the City. Upon termination of this lease, Lessee shall, at Lessee' s expense, remove all of Lessee' s personal property that is not permanently affixed to the premises, repair all injury done by or in connection with the installation or removal of the personal property, and surrender the premises in as good condition as they were at the beginning of the term, excepting reasonable wear and tear not due to the misuse or neglect by Lessee. All property of Lessee remaining on the premises after the last day of the term of this lease shall be conclusively deemed abandoned and may be removed by City, and Lessee shall reimburse City for the cost of the removal. City may have any abandoned property stored at Lessee's risk and Page 2 of 6 Kiwanis Charities Fund of Fort Walton Beach. Inc. Lease 123- expense. 10. Abandonment Lessee shall not, without first obtaining the written consent of the City, abandon the premises, or allow the premises to become vacant or deserted. 11. Assignment, Sublease, or Rental Lessee will not, without first obtaining the written consent of the City, ( a) assign, convey, or mortgage this ] ease or any interest under it; (b) allow any transfer or any lien on Lessee' s interest by operation of law; ( c) sublet the premises or any part of them; or ( d) permit the use or occupancy of the premises or any part of them by any person other than Lessee. The City as the owner of the premises may assign or otherwise transfer or convey all of its rights as owner and Lessor under this lease. 12. Insurance on premises a. Liability & Property Insurance Lessee shall, during the entire term of this lease, keep in full force and effect a policy of liability and property damage insurance covering the premises and all activities conducted thereon, in which the limits of liability shall be no less than the standard insurance requirements in effect by the City on the date of execution of this lease. Such insurance policy shall name the City as an additional insured, and shall contain a clause that the insurer will not cancel or change the insurance without first giving City thirty (30) days prior written notice. b. Indemnification Lessee will indemnify and defend the City and its officers, agents, representatives and employees harmless from and against all claims, actions, damages, liability and expense in connection with loss of life, personal injury and /or damage to property arising from or out of any occurrence in, on, or at the premises or the Building or the occupancy use by Lessee of the premises or any part of the premises, or the Building or any part of the Building occasioned wholly or in part by any act or omission of Lessee or those holding under Lessee or Lessee's agents, employees, or customers. In the event that City shall, without fault on its part, be made a party to any litigation commenced by or against Lessee, Lessee shall protect and hold City and its agents, representatives and employees harmless and shall pay all costs, expenses and reasonable attorney's fees incurred or paid by City, or any of them, in connection with any litigation. Lessee shall also pay all costs, expenses, and reasonable attorney's fees that may be incurred or paid by City in enforcing the terms, covenants and obligations of this lease on Lessee' s part to be performed. Lessee shall fully comply with all health and police regulations of insurance carriers writing policies covering the Building. C. Sovereign Immunity Nothing herein shall be deemed to be a waiver by the City of its rights to sovereign immunity. 13. Default If Lessee defaults in the payment of rent or in the performance of any of the other covenants or conditions of this agreement, City may give Lessee notice of that default. If Lessee does not cure any rent or default within ten ( 10) days, or otherwise on or before the date required by the City, then Page 3 of 6 Kiwanis Charities Fund of Fort Walton Beach. Inc. Lease 124- City may terminate this lease on not less than five (5) days notice to Lessee. On the date specified in the notice of termination, the term of this lease shall terminate and Lessee shall then quit and surrender the premises to City. This provision shall not limit the City' s right to seek any other available remedy allowed by law. 14. Effect of Failure to Insist on Strict Compliance with Conditions