Loading...
HomeMy WebLinkAboutNB 3 C.T. PARK CONCESS 01-19-87 NEW BUSINESS ? ' ~, ~, ~~ NO. 3 . i ?' ~" . F~-,~,~--'~,~m~ 1 - 19 - 8 7 DATE: DECERBER 23, 1986 TO: FROM: SUBJECT: WILLIAN A. HUSTON, CTTY IqANAGER COI,~qUN'~TY SERV'[CES DEPAR'TIqI:'NT COLU~BLIS TUSTIN PARK CONCESS[Otl STAND LEASE AGR£EIqENT RECOMMENDATION: Council to approve the attached Agreement with Mr. David Ascher for the lease of Columbus Tustfn Concession Stand. BACKGROUND: At the June 16, 1986 meeting, the Tusttn City Council authorized staff to draft an agreement for the leasing of the Columbus Tustin concession stand. Attached is the proposed Agreement; this has been reviewed by the City Attorney and by Mr. Ascher. Whereas at the June 1986 meeting, Mr. Ascher intended to make this a non-profit corporation, he has since met.with his attorney and has decided to make the concession stand a for-profit corporation with the intention of making donations to non-profit youth organizations in the Tustln Area. Attached is a copy of a letter from Mr. Ascher stating his organization plans and philosophy for the corporation. Council should be aware that while the agreement requires Mr. Ascher to pay the City 10 percent of gross receipts, there is no minimum donation to youth groups required. The amount is solely at Mr. Ascher's discretion. In the cities surveyed, for-profit concession stands are leased for an average 10 percent gross monthly receipts. Since Mr. Ascher is proposing a unique situation with the funds to be donated to non-profit organizations, the 10 percent gross receipts to the city seems a reasonable amount. Staff recommends a "not less than" figure of $100 per month be added to the agreement to cover the costs of maintenance and utilities when the 10 percent gross receipts are below that figure. With the exception of Tiller Days (three days per year), the concession stand currently is vacant'and not in use. The lease of this facility would provide a service to the park users, funds for Tustin Area youth organizations, and revenue to the City. Tusttn Area youth groups using Columbus Tusttn Park have been consulted and none are interested in operating the concession stand, due to the expense of major improvements needed to bring the stand to Orange County Health Department operating standards. Estimated costs of these improvements, attorney fees to initiate corporate status, insurance fees, and equipment to operate the stand have been estimated at $10,000. to $12,000.; these costs would be borne by Mr. Ascher. COLUMBUS TUSTIN PARK CONCESS[0N STAND LEASE AGREEMENT Page Two December 23, 1986 Attached is a letter stating Mr. Ascher's intentions for the organization of his corporation. This information will be incorporated into the by-laws. Staff recommends approval of the subject Agreement so that Mr. Ascher may commence improvements on the concession stand. Susan M. ~ones Recreation Superintendent Royleen A. White, Director Community & Administrative Services RAW:SMJ:sk Attachments LEASE AGREEMENT RE: COLUMBUS TUSTIN PARK SI~CK BAR FACILITY 'THE CITY OF TUSTIN, a municipal corporation, (hereinafter referred to a~ "Landlord"), in consideration of the covenants and agreements contained herein, does hereby lease to DAVID ASCHER~ an individual, 13241 Sandhurst Place, Santa Aha, California, (hereinafter referred to as "Tenant") ; .and Tenant hereby leases from Landlord that certain real property, known as the Columbus Tustin Park Snack Bar Facility (hereinafter "Snack Bar Faciii- fy"), situated in the County of Orange, State of California, which is more particularly described hereinafter. WHEREAS, the City owns a Snack Bar Facility located in the Columbus Tustin Park at 14712 Prospect Avenue, Tustin, California; and WHEREAS, Tenant has submitted a proposal to City requesting the opportunity to operate the Snack Bar Facility, with a p~rcentage of the profits of the Snack Bar Facility to be donated to local youth sports programs and a per~entage to City as pay- ment for lease of City-owned property. NOW, THEREFORE, FOR AND IN CONSIDERATION OF THE PAXMENTS AND CONDITIONS HEREINAFTER DESCRIBED, Landlord and Tenant do mutually agree as follows: The term of this Lease shall be three (3) years, beginning , 1987, and ending , 1990. At the end of three (3) years, Tenant has the option to renew the Lease for an additional two (2) years· 2. ~NTAL.' A. ~ For the first year of operation, Tenant shall pay to. Landlord, as rent, without deduction, setoff, prior notice or demand, as follows: e First Quarter.. Second Quarter: Third' Quarter.- Fourth Quarter.. One percent (1%) of the monthly receipts; Two percent (2%) of the monthly receipts; Three percent (3%) of the monthly receipts; Four percent (4%) of the monthly receipts. Tenant agrees, for years 2-3 of this Lease Agreement, to pay to Landlord, an amount equal 'to ten percent (10%) of the total gross receipts received for all goods sold from the Snack Bar Facility after the first year of operation, but not less than One Hundred Dollars ($100.00) per month. 3· ~'- Tenant shall, at his sole cost and expense, provide all food, .labor, supervision, equipment, supplies and materials, necessary to operate said Snack Bar Facility. 4. HOURS OF OPEI~ATION: Tenant shall operate the Snack Bar Facility in accordance with a schedule of hours of operation, approved by Landlord's Director of Community Services, unless otherwise agreed to in writing by Landlord and Tenant· At no time shall Tenant operate the Snack Bar Facility after park curfew. A. Tenant shall allow no noxious weeds t6 go to seed and shall keep the premises free from weeds, grasses and rodents. Tenant shall be responsible, at his sole cost and e'xpense, for cleaning in and around the premises of the Snack Bar Facility, including all litter, trash and refuse generated by said Snack Bar Facility and its patrons. Main- tenance includes the rental of a covered dumpster, at Tenant's sole expense, to handle excess trash. Maintenance policies shall be implemented at the opening and closing of the Snack Bar Facility. B. Tenant shall maintain the premises in as good a condition as the same now or may hereafter be put, and upon termination of this Lease, shall, except as hereafter pro-' vided in Paragraph .., deliver possession of the same to Landlord in substantially the same condition as it received them and free of weed debris and improvements. Tenant shall not commit waste to the premises. 6. A~.~ '. Tenant shall not assign this Lease without the prior written consent of the Landlord, which shall not be unreasonably with- held. 7. ~.' Tenant shall permit Landlord, or its agents, to enter upon the premises at all reasonable times for the purposes of inspecting said premise.s, maintaining, or repairing the Land- lord's facilities and appurtenances installed on, in, or through the premises. 8. Tenant shall not change or alter the premises in any mate- rial manner without the prior written consent of Landlord. Any and all alterations and/or improvements to the premises shall become the property of City. 9. BREACI~: In the event Tenant shall make default in any of its agree- ments herein contained or subsequently mutually agreed to, and after written notice to Tenant, such default shall continue for thirty (30) days, Tenant shall forfeit all rights under this Lease, and Landlord, or its agents, may, at their option, termi- nate this Lease and take immediate possession by action of forc- ible entry and detainer or may avail themselves of any legal remedies they may then possess. 10. TERNII~TION BY LANDLORD: The parties hereto recognize that the Landlord is a public agency providing recreational services at the Tustin'Columbus Park, and in the event of substantially changed conditions re- quiring the use of the premises or a portion thereof, for a public purpose related to recreation purposes, or an emergency that could endanger the public health or safety, the Landlord shall have the right to terminate and cancel this Lease upon two (2) years written notice given to Tenant. In'the event of such termination and cancellation by Landlord, Tenant shall be re- funded the proportionate amount prepaid in unearned rent, but no damages direct, indirect or consequential shall be payable by Landlord to Tenant. '11. NO~I~: Whenever, under the terms of this Lease, any notice is to be given to either of the parties, and whenever Tenant is to make rental payments to Landlord, the same shall be given or made by enclosing the same in a sealed envelope with postage prepaid and by mailing such envelope as follows: Landlord: CITY OF TUSTIN. Attention: Recreation Superintendent 300 Centennial Way Tustin, CA 92680 Tenant: DAVID ASCHER 13241 Sandhurst Place Santa Ana, California 12. USE AND COMPLIANCE WITH LAW: Tenant intends to use said premises solely for the purposes of operating a snack bar facility. Tenant shall, at its cost and expense, comply with all of the requirements of all municipal, state and federal authorities now in force or which may hereafter be in force pertaining to the use of said premises and shall faithfully observe in the use of the premises all municipal ordinances and regulations and state and federal statutes and regulations now in force or which may hereafter be in force, and obtain necessary permits or licenses therefor. Tenant shall be responsible for, and pay directly, any and all taxes, fees, charges and assessments levied in connection with the use of said premises. The judgment of any court of competent jurisdiction or the admission of Tenant in any action or proceeding against him, whether Landlord be a party thereto or not, that Tenant has violated any such ordinance or statute in the use of the premises shall be conclusive as of that fact as between Landlord and Tenant. 13. nANDLORD TO BE HELD HA~N~ESS: Tenant, as a material part of the consideration to be ren- dered to Landlord, hereby agrees that it will hold Landlord exempt and harmless from any damage or injury to any person or to the property of any person arising from the use of the premises by Tenant or for the failure of the Tenant to keep the premises in good condition and repair as herein provided. 14. LIABILITT INSUP~NCE: Tenant further agrees to take out and keep in force, during the life hereof, at Tenant's expense, public liability insurance from companies and through brokers acceptable to Landlord to protect against an= liability to the public incident to the use of or resulting from any accident occurring in or about the premises, the liability under such insurance to be not less than One Million Dollars ($1,000,000.00) limit in property damage insurance with not less than Twenty-five Thousand Dollars ($25,000.00) limit for the benefit of third persons who may be injured or damaged as a result of any negligent operations of the Tenant in the maintenance and operation of the Snack Bar Facil- ity. Said insurance coverage obtained by Tenant shall name Landlord as an additional insured. Tenant shall provide Landlord with Certificates of Insurance as evidence of said coverage in a form approved by Landlord's City Attorney. 15. DES~-~TPTION OF T,~ASED PREMISES: Landlord represents that it will lease to Tenant the Snack Bar Facility located at the Columbus Tustin Park in the City of Tustin. IN WITNESS WHEREOF, the parties hereto have subscribed their signatures this day of ...... , 198' . 'LANDLORD' ClT~ OF TUSTIN By Mayo~ ATTEST: City Clerk APPROVED AS TO FORM: City Attorney "TENANT' DAVID ASCHER SDA :cj :R:12/3 1/86 (C27. cjp) Manu~c~urino. Jewele~,l Mrs. Jones and Mr. Blankenhorn city o£ Tustin 300 centennial Way Tustin, Ca. 92680 Dear Susan and Steve; This letter is a response to your 'request for more clarification re- garding the proposed snack bar on the City of' Tustin's grounds ak the Columbus Tustin School. I. TYPE OF ORGANIZATION: a. Corporation for profit. II. NAME OF ORGANIZATION: a. Tustin Youth Snack Bar, Inc. (TYSB,INC.) III. PURPOSE OF THE ORGANIZATION: a. To act as an additional source of funds for various youth org- anizations on a "need" basis. IV. DISTRIBUTION OF FUNDS: a. Monies available from profits of TYSB, INC. will be distributed on a quarterly basis, by need only. Need Only is to be determined by a Board of Directors, meeting on a quarterly basis. The Need Only request must be in the form of a written request to TYSB, INC. Monies may also be distributed on a emergency basis, before the quarterly meetings. This emergency request must .be in a written form. Monies may also be distributed to an organization by their requesting, in writing, a percentage of net sales for a particular event they are hosting and /or working. NC~fE: Net Sales means ahter all expences are paid. r, la.u(act~urln9 Jewelcr~ V. BOARD OF DIRECTORS: The Board of Directors will consist of three (3) members, one member will be a stockholder of TYSB, INC., whose ~articular function will be to determine what group or groups have the greatest, most important and immediate need for additional funds. VI. EXCLUSIVE RIGHTS: The TYSB, INC. will have the exclusive right to sell food and drink items at the City of Tustin's park located at Prospect and Irvine Blvd. NOTE: The only exception to this exclusivity will be the City of Tustin and its' vendors during Tustin Tiller Days.