HomeMy WebLinkAboutReso 93-290 - Approve the 1st amendment to lease between the COR & John Goold, DBA Cornucopia Gifts, for Gift Shop Concessoin in the RMA passenger terminal I
RESOLUTION NO. ��,3 -0290
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
REDDING APPROVING THE FIRST AMENDMENT TO LEASE BETWEEN
THE CITY OF REDDING AND JOHN GOOLD, DOING BUSINESS AS
CORNUCOPIA GIFTS, FOR THE GIFT SHOP CONCESSION IN THE
REDDING MUNICIPAL AIRPORT PASSENGER TERMINAL, AND
AUTHORIZING THE MAYOR TO SIGN SAME.
IT IS HEREBY RESOLVED by the City Council of the City of
Redding as follows :
1 . That the City Council of the City of Redding hereby
approves the First Amendment to Lease between the City of Redding
and John Goold, dba Cornucopia Gifts, for the Gift Shop Concession
in the Redding Municipal Airport Passenger Terminal, effective on
and retroactive to May 1, 1993 . A true copy is attached hereto
and incorporated by reference.
2 . That the Mayor of the City of Redding is hereby autho-
rized and directed to sign said First Amendment to Lease on behalf
of the City of Redding, and the City Clerk is hereby authorized
and directed to attest the signature of the Mayor and to impress
the official seal of the City of Redding.
I HEREBY CERTIFY that the foregoing Resolution was intro-
duced and read at a regular meeting of the City Council of the
City of Redding on the 20th. day of July 1993, and was duly
adopted at said meeting by the following vote:
AYES : COUNCIL MEMBERS : Anderson, Dahl, Kehoe, Mo d Arness
NOES : COUNCIL MEMBERS : None
ABSENT: COUNCIL MEMBERS : None
ABSTAIN: COUNCIL MEMBERS: None
CARL A N S, Mayor
City of Redding
ATT ST: FORM APPROVED: �1
CONNIE STRO MAYER i y Clerk RA DALL A. HAYS(/, City Attorney
FIRST AMENDMENT TO LEASE
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WHEREAS, effective on July 26 , 1991 , the CITY OF
REDDING by Resolution 91-314 did consent to the assignment of the
gift shop Lease dated June 4 , 1990 , to JOHN GOOLD, covering certain
'i passenger terminal and gift shop facilities at Redding Municipal
Airport; and
WHEREAS, JOHN GOOLD, owner and operator of CORNUCOPIA GIFTS,
has now requested that the City consent to and approve a Lease
amendment;
NOW, THEREFORE, it is agreed by and between the parties hereto
� as follows :
'I 1 . The CITY OF REDDING, as Lessor, does hereby consent to a
new Lease term of five ( 5) years effective on and retroactive to
May 1 , 1993 and ending on the 30th day of April, 1998, as shown in
Exhibit "A" attached hereto.
2 . The CITY OF REDDING, as Lessor, does hereby consent to
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the inclusion of a Lessee' s rights of option clause, as shown in
Exhibit "A" attached hereto.
3 . The Lease "Description of Premises" clause shall be
modified as shown in Exhibit "B" attached hereto .
4 . The Lease "Payments to Lessor; Performance Bond" clause
,i shall be modified as shown in Exhibit "C" attached hereto.
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5 . JOHN GOOLD, owner and operator of CORNUCOPIA GIFTS ,
consents to the above amendments of the Lease, and does hereby
covenant and agree that he will perform all the terms and condi-
tions contained in the aforesaid Lease to be performed by the
Lessee, and does understand and agree that all other terms and
conditions contained in the aforesaid Lease remain in full force
and effect throughout the term thereof .
6 . All provisions of this First Amendment To Lease shall be
effective on and retroactive to May 1 , 1993 .
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IN WITNESS WHEREOF, the parties hereto have executed this
First Amendment to Lease on the day and year set forth below:
CITY OF REDDING
DATED: , 1993 By:
j CARL ARNESS, Mayor
,j CORNUCOPIA IF S
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DATED: �( 1993 By•
"i HN GOOLD, Owne
ATTEST:
CONNIE STROHMAYER, City Clerk
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FORM APPROVED:
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RANDALL A. HAYS, City Attorney
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EXHIBIT "A"
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Paragraph 2 . "Term. " of the Lease is modified as follows :
1 . Term.
A. For and in consideration of the terms , covenants, condi-
tions , and agreements herein set forth to be kept and
performed by LESSEE, LESSOR does hereby grant, demise,
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and lease unto LESSEE, subject to all the terms, cove-
nants , conditions , and agreements hereinafter set forth,
those certain Premises described as Site "A" and Site "B"
and depicted in Exhibit "#1" attached hereto and incorpo-
rated herein by reference, a new term, replacing the
original Term, of a period of five ( 5 ) years , effective
on and retroactive to May 1, 1993 and ending on April 30,
1998 .
B. Provided LESSEE is not in default hereunder, and provided
LESSOR has not determined to leave the Premises vacant,
operate the Premises itself, or devote the Premises to a
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different type of municipal or governmental purpose,
LESSEE shall have the right of option to lease said
Premises for an additional period of two ( 2 ) years ,
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namely May 1, 1998 , to and including April 30, 2000 . The
right to renew for said 2-year option period shall be
exercised by written notice addressed by LESSEE to LESSOR
no less than ninety ( 90 ) days prior to the expiration of
it the initial 5-year term of this Lease. If LESSEE
exercises this right of option for said additional period
of 2 years , all of the terms , covenants, conditions, and
agreements contained in this Lease shall remain in full
force and effect, with the exception of this paragraph
1 . B. giving LESSEE a right of option to renew the lease-
hold term.
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C. Sai-d rights of option given to LESSEE shall not be
construed as a waiver of LESSOR' s right to remove LESSEE
for breach of any of the terms , covenants , conditions ,
and agreements contained in this Lease by LESSEE, nor of
LESSOR' s right to remove LESSEE from the subject premises
at the end of the initial term of this Lease terminating
April 30 , 1998 in the event LESSOR determines to leave
the premises vacant, operate the premises itself, or
devote the premises to a different type of municipal or
i� governmental purpose.
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EXHIBIT "B"
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Paragraph 1 . "Description of Premises . " of the Lease is modified as
follows :
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1 . Description of Premises .
The parties acknowledge that LESSOR owns , maintains, and
operates the Redding Municipal Airport, and that LESSEE desires to
use a portion of said Airport for the purpose of constructing and
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maintaining thereon a Gift Shop Concession in the Passenger
I� Terminal Building. Therefore, LESSOR hereby leases to LESSEE, and
LESSEE hires from LESSOR:
j (a) in accordance with the "City of Redding Municipal Airport
Specifications for Furnishing Gift Shop Concession at the
Municipal Airport Passenger Terminal" and the "Addendum
II to Notice Inviting Bids" attached hereto as Exhibit "A"
I and incorporated herein by,reference (Bid Schedule 2290 ) ;
r, and
(b) upon the terms and conditions and for the compensation
set forth below, both parts of the Redding Municipal
Airport Passenger Terminal Building shown as "Site A" and
as "Site B" on Exhibit #1 attached hereto and incorporat-
ed herein by reference (hereinafter called "Premises" ) .
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EXHIBIT "C"
Paragraph 4 . "Payments to LESSOR; Performance Bond. " of the Lease
is modified as follows :
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4 . Payments to LESSOR; Performance Bond, Letter of Credit .
A. The minimum annual rent to be paid by LESSEE to LESSOR under
this Lease for "Site A" , including any renewal term, shall be
the GREATER of the following:
( 1 ) $3, 145 . 00 ( 170 square feet times $18 . 50 ) , to be paid by
monthly payments of $262 . 08; or
( 2 ) A percentage of LESSEE' s annual gross receipts , as
defined on pages BS 2 and 3 - of Exhibit A attached
hereto, calculated as follows :
(a) Commencing May 1 , 1993, and for the remainder of
the initial two and one-half ( 21 ) year period of
the Term May 1, 1993 through October 31, 1995, a
monthly rent equal to:
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( i ) Four and one-half percent (4Z% ) of the amount
Ij of Gross Receipts per month.
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'i (b) For the second two and one-half ( 212 ) year period of
the Term from November 1 , 1995 through April 30 ,
1998 , a monthly rent equal to:
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( i ) Five and one-half percent ( 52% ) of the amount
of Gross Receipts per month.
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(c) For the two ( 2 ) year option Term from May 1, 1998
through April 30, 2000, a monthly rent shall be
renegotiated by LESSOR and LESSEE beginning on the
date LESSEE exercises its right to renew for said
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2-year option period. In no event will said nego-
tiations begin later than ninety ( 90 ) days prior to
the expiration of the initial 5-year Term of this
Lease. In no event will the monthly rent be less
! than that for the immediate preceding two and one-
half ( 21 ) year rental period.
B. In no event shall Lessee pay less than $262 . 08 per month
during the initial Term of this Lease or the renewal thereof .
C . LESSEE' s payments for the monthly rental and/or payments to be
made to Lessor based on gross receipts will be paid to LESSOR
within seven ( 7 ) days following the end of each month. Such
payments shall be accompanied by statements from LESSEE
showing detailed receipts , with the statements to be in such
form as prescribed by LESSOR.
D. At the end of each year (April 30 ) during the Term of this
Lease or the renewal thereof, LESSOR and LESSEE shall review
LESSEE' s annual gross receipts for the previous year to
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ascertain if LESSEE has , indeed, paid the correct amount of
annual rent to LESSOR. If a further sum is due LESSOR, LESSEE
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will pay the balance owing within seven ( 7 ) days following
said year-end review.
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E . All payments called for in this Lease, of which Exhibit "A" is
' a part hereof, including the above rent and other charges,
shall be payable within seven ( 7 ) days of the billing date by
LESSOR. LESSOR is entitled to collect from LESSEE, and LESSEE
agrees to pay to LESSOR, upon invoice, those rentals , fees ,
j and charges set forth herein. Any rentals , fees , and charges
more than seven ( 7 ) days past due shall be subject to a
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service charge of one and one-half percent ( 12% ) per month,
based on an annual rate of eighteen percent ( 18% ) . Without
prejudice to any other remedy which otherwise might be used
for non-payment of rent, fees , and charges , or other breach of
this Lease, if LESSOR is required or elects to pay any sum or
sums or incurs any obligations or expense by reason of a
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failure, neglect, or refusal of LESSEE to perform any one or
more of the terms, conditions, and covenants of this Lease, or
as the result of any act or omission of LESSEE contrary to
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said terms , conditions , or covenants , the sum or sums so paid
by LESSOR, including all interest, costs , damages , or penal-
ties, may be added, after seven ( 7 ) days ' written notice by
LESSOR to LESSEE, to any installment or rent thereafter due
hereunder, and each and every day thereafter the same shall be
and become additional rent recoverable by LESSOR in the same
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manner and with like remedies as though it were originally a
part of the rent as set forth hereinabove.
J F . Performance Bond, Letter of Credit. During the term of this
Lease or any extension thereof, LESSEE will post with the City
Clerk of LESSOR a Performance Bond or Letter of Credit in the
amount of Five Thousand Dollars ( $5 , 000 . 00 ) in favor of the
City of Redding. For the purpose of this paragraph, this is
construed to mean a negotiable instrument issued by a National
or State insurance company or bank in a form acceptable to the
LESSOR. The negotiable instrument will be maintained and
renewed as necessary to remain in force throughout the Term of
this Lease or any extension thereof . Cancellation of the
,j Performance Bond or Letter of Credit for whatever reason shall
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forthwith terminate this Lease.
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G. Based upon LESSEE' s performance throughout the first two and
one-half ( 22 ) year period of the initial five ( 5 ) year Term of
this Lease which is acceptable to LESSOR, LESSOR and LESSEE
may reevaluate the requirement as set forth in paragraph 4 .C.
above.
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H. A claim will be made by LESSOR against said bond or letter of
credit in the event of one of the following:
1 ) Failure on the part of LESSEE to make timely payment of
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any amounts due LESSOR under the terms and conditions of
this Lease;
2 ) Any damage to or loss of Municipal Airport property
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caused by LESSEE;
3 ) Failure to pay utility and other charges , if any;
4 ) Removal and storage expense incurred by LESSOR if LESSEE
does not promptly remove his property from the Premises
within fifteen ( 15 ) calendar days after this Lease is
terminated.
5 ) Costs incurred by LESSOR at the time the Lease is
terminated if LESSEE fails to leave Premises in satisfac-
tory condition.
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