Okaloosa County BOCC — December 15, 2015 — proposed Lease Agreement — reading text

LEASE AGREEMENT between Okaloosa County, Florida, and Coastal States Contractors, Inc. This Lease entered into this day of , 2015, by and between, Okaloosa County, a political subdivision of the State of Florida, by and through its Board of County Commissioners, herein referred to as “Lessor”, and Coastal States Contractors, Inc., a Florida Corporation herein referred to as “Lessee”. SECTION ONE SUBJECT AND PURPOSE Lessor does hereby Lease certain portions of real property, as indicated in the attached and incorporated Exhibit A", located at 1310 D Oddfellow Rd., Fort Walton Beach, FL, 32547, County of Okaloosa, State of Florida ("Leased Premises") to Lessee for the following purposes: 1. The primary use of this facility is a warehouse or storage facility. This unit may also be used for light commercial or industrial activity, generating de minimis traffic, as limited parking exists. 2. No other use is authorized for any portion of the space covered by this Lease. Furthermore, Lessee shall have a non-exclusive right and access to the parking areas provided by Lessor, together with the right to use in common with the Lessor, its employees, invited, and customers, the Lessor’s other tenants and their employees, invites and customers, to park automobiles. Lessor retains the right to make reasonable rules and regulations with reference to the use of said parking areas, including the right to provide for certain reserved parking as from time-to-time, determined by Lessor. SECTION TWO TERM AND RENT Lessee shall pay to Lessor for the use and occupancy of the space shown in the attached Exhibit "A" as follows: (a) $400 per month during the term of this Lease, it being intended that the fair rental value of the premises utilized by the Lessee, which shall be due and payable on the first day of this Lease and continuing on the same day of each month thereafter for the entire term of this Lease; (b) A sum equal to 10% of any rent not received by Lessor within ten (10) calendar days of the due date thereof (c) In addition to the amounts above, any sales or rental taxes which are applicable to this lease (currently $24/month); (d) The Lessee may elect to pay the above-listed amounts with an up-front annual payment, in the amount of $5,088 (includes taxes), payable the first day of the Lease period. The term of the Lease shall begin on the 1% day of January 2016, and end on the 31% day of December 2016. This Lease may be renewed for up to two (2) additional (1) year terms, if mutually agreed upon in writing, at least thirty (30) days in advance of the expiration of the Lease term. At time of renewal, the rent amount and terms of payment shall be readdressed. All rental payments shall be made to the Lessor at the Office of the Clerk of Courts, Okaloosa County Courthouse, Crestview, Florida. SECTION THREE ADDITIONAL RENT In addition, Lessee shall pay any and all taxes, charges, costs, and expenses that may be due as a result of this Lease, together with all interest and penalties that may accrue thereon, in the event of the failure of Lessee to pay those items, and all other damages, costs, expenses, and sums that Lessor may suffer or incur, or that may become due, by reason of any default of the Lessee of failure by Lessee to comply with the terms and conditions of this Lease shall be deemed to be additional rent, and, in the event of non-payment, Lessor shall have all the rights and remedies as herein provided for failure to pay rent. SECTION FOUR ALTERATIONS, ADDITIONS, AND IMPROVEMENTS Lessee may not make any additions, alterations, or changes of any kind to the Leased Premises or on Lessor's property without the expressed written consent of Lessor. 1. Permission. Lessee shall submit a complete work plan of any and all work that Lessee proposes to undertake to Lessor in advance of any work beginning. Lessee may not begin any work without written permission in advance from Lessor. 2. Costs. The full costs to accomplish any work plan approved by Lessor shall be borne entirely by Lessee. 3. Permitting and Inspection. All work authorized by Lessor and undertaken by Lessee, or Lessee's contractor(s) or agent(s) shall be properly permitted by the appropriate inspecting authority and shall comply with all laws, rules, and regulations administered by any agency having jurisdiction over the work to be done. 4. License and Insurance. All contractors performing work on the Leased Premises shall be properly licensed and insured to perform the work. Prior to commencement of work at the Leased Premises, Contractors shall submit to the Lessor a Certificate of Insurance naming the Lessor as an additional insured with limits of coverage as follows: a. Workers Compensation- 1. State - statutory limit 2. Employers Liability- $1,000,000 limit each accident b. Business Automobile - $1,000,000 each occurrence (combined single limit) c. Commercial General Insurance - $1,000,000 each occurrence (combined single limit) d. Professional Liability - $1,000,000 each occurrence (combined single limit) €. Personal and Advertising Injury- $250,000 per person 5. Payment. Lessee is solely responsible for the payment for all items contracted for or purchased by Lessee. Lessee will take whatever actions that are necessary to remove any lien(s) placed on the property as a result of Lessee's activities. 6. Ownership. All approved alterations, additions, and improvements to the Leased Premises shall remain in place and become the property of Lessor at the conclusion of the Lease term. SECTION FIVE USE, MAINTENANCE, AND REPAIRS Lessee shall, at all times during the Lease and at its own cost and expense, repair, replace, and maintain in a good, safe, and substantial condition, the interior of the Leased Premises. Lessee shall at Lessee's own expense maintain and make timely repairs to: 1. HVAC System. General maintenance of HVAC systems; replace filters in a timely manner; clean and tune up the equipment according to the manufacturer's recommendations. 2. Other. Clean and maintain restroom fixtures, flooring, ceilings, walls, windows, doors, and any other items in a customary manner to preserve function and value. Lessee shall not allow any overnight occupancy or stays on the Leased Premises or in any portion of the space covered by this Lease. Lessee's authorized parking on the Lessor's property is limited to one vehicle per staff member of Lessee assigned to work at the Leased Premises. No vehicles or trailers may be parked overnight on Lessor's property without the express written consent of the Lessor. Further, Lessee shall not store any good, items, or materials outside that portion of the Leased Premises assigned to Lessee on Exhibit "A" without the express written consent of the Lessor. SECTION SIX TAXES Lessee shall pay on or before the last day on which payment may be made without penalty or interest, all taxes, assessments, or other governmental charges that shall or may, during the lease term, be imposed on or arise in connection with the use of the Leased Premises. SECTION SEVEN UTILITIES Lessee shall be responsible for all costs of utilities at the Leased premises. For any non- payment of the utilities, that Lessor may treat such failure to pay as an event of default under this Lease subject to the rights and remedies available to Lessor for an event of default pursuant to Section Twenty-One herein. SECTION EIGHT MECHANICS’ LIENS — CONSENT OF LESSOR Nothing in this Lease shall be deemed or construed in any way as constituting the consent or request of Lessor, expressed or implied, by inference or otherwise, to any contractor, subcontractor, laborer, or materialman for the performance of any labor or the furnishing of any materials for any specific improvement, alteration to, or repair of the Leased Premises or any part thereof, nor as giving Lessee any right, power, or authority to contract for or permit the rendering of any services or the furnishing of any materials that would give rise to the filing of any lien against the Lessor's building, property, or any portion thereof. SECTION NINE UNLAWFUL OR DANGEROUS ACTIVITY Lessee shall neither use nor occupy the Leased Premises or any part thereof of for any unlawful or hazardous business purpose nor operate or conduct its business in a manner constituting a nuisance of any kind. Lessee shall immediately, on discovery of any unlawful or hazardous use, take action to halt such activity. SECTION TEN INSURANCE AND INDEMNITY Lessee shall maintain during the term of this Lease adequate insurance coverage through insurance policies upon which the Lessor shall be named as an additional insured as follows: a. *Workers Compensation- 1. State - statutory limit 11. Employers Liability- $100,000 limit each accident *Lessee must comply with Florida Statutes as it pertains to the purchase of worker’s compensation coverage. If Lessee is a sole proprietor or has fewer employees than required for the purchase of coverage, workers’ compensation coverage requirement may be waived. b. Business Automobile - $1,000,000 each occurrence (combined single limit) c. Commercial General Insurance - $1,000,000 each occurrence (combined single limit) Lessee shall provide to Lessor Certificates of Insurance demonstrating that the required insurance coverage has been obtained and showing that Lessor is named as an additional insured on such insurance policies. Lessee also agrees to indemnify Lessor against all expenses, liabilities, and claims of every kind, including reasonable counsel fees, by or on behalf of any person or entity arising out of either: 1. A failure by Lessee to perform any of the terms or conditions of this Lease. 2. Any injury or damage happening on or about the Lessor's building or property resulting from the Lessee's occupancy, operations, or use of the Leased Premises pursuant to this Lease. 3. Failure to comply with the laws of any governmental authority. 4. Any mechanic’s lien or security interest filed against the Lessor's building or property or any equipment installed or caused to be installed by Lessee at the Leased Premises, or any materials used or caused to be used by Lessee on or at the Leased Premises, or any work done or caused to be done by Lessee at the Leased Premises for any purpose. SECTION ELEVEN ACCESS TO LEASED PREMISES Lessee shall permit Lessor and or its agents to enter the Leased Premises at all reasonable hours to inspect or make repairs that Lessee may neglect or refuse to make in accordance with the provisions of this Lease or that may be otherwise necessary in the normal repair and maintenance of the facility or to show the premises to prospective buyers. . SECTION TWELVE EASEMENTS, AGREEMENTS, OR ENCUMBRANCES The parties shall be bound by all existing easements, agreements, and encumbrances of record relating to the Leased Premises and Lessor shall not be liable to Lessee for any damages resulting from any action taken by a holder of m1 interest pursuant to the rights of that holder thereunder. SECTION THIRTEEN LIABILITY OF LESSOR Lessee shall be in exclusive control and possession of the Leased Premises and Lessor shall not be liable for any injury or damages to any property or to any person on or about the Leased Premises or for any property of Lessee. The provisions herein permitting Lessor to enter and inspect the Leased Premises are made to ensure that Lessee is in compliance with the terms and conditions hereof and makes repairs that Lessee has failed to make or are necessary as a consequence of a repair that was necessary that was outside of the responsibility of Lessee. Lessor shall not be liable to Lessee for any entry on the premises for inspection or necessary repair purposes. SECTION FOURTEEN REPRESENTATIONS BY LESSOR At the commencement of the term Lessee shall accept the Leased Premises and the fixtures and equipment included therein in their existing condition