HomeMy WebLinkAboutReso. 1987 - 138 - Approving the redding municipal airport restaurant lease agreement between the city of redding and edward skonieckian and david allen 411 ,
RESOLUTION NO. 37-/19
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A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING
APPROVING THE REDDING MUNICIPAL AIRPORT RESTAURANT LEASE
AGREEMENT BETWEEN THE CITY OF REDDING AND EDWARD SKONIECKI
AND DAVID J. ALLEN, AND AUTHORIZING THE MAYOR TO SIGN.
BE IT 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 Redding Municipal Airport Restaurant Lease Agreement
between the City of Redding and Edward Skoniecki and David J.
Allen, a true copy of which is attached hereto and incorporated
herein by reference; and
2. That the Mayor of the City of Redding is hereby
authorized and directed to sign all necessary documents on behalf
of the City of Redding in connection with said Lease Agreement,
and that 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 on the aforesaid documents, when
appropriate; and
I HEREBY CERTIFY that the foregoing Resolution was
introduced and read at a regular meeting of the City Council of
the City of Redding on the 5th day of May , 1987, and was
duly adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Carter, Fulton, Gard, Johannessen, & Dahl
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: None
ABSTAIN: COUNCIL MEMBERS: None
1 r --�C�
Cs
MIKE DAHL, Mayor
City of Redding
ATTEST: . FORM •PROVED:
7� f• '.�
ETHEL A. NICHOLS, City Clerk RA1DALL A. HAYS, C' ty Attorney
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REDDING MUNICIPAL AIRPORT RESTAURANT LEASE
THIS LEASE AGREEMENT made and entered into this _3(:) a- day
of April, 1987, by and between the CITY OF REDDING, a Municipal
Corporation, hereinafter referred to as "Lessor, " and EDWARD
SKONIECKI and DAVID J. ALLEN, hereinafter referred to as
"Lessees" :
WITNESSET H:
IT IS MUTUALLY AGREED by and between Lessor and Lessees, and
each of them, as follows:
1 . Description of Premises. Lessor hereby leases to
Lessees and Lessees hire from Lessor, on the terms, covenants and
conditions hereinafter set forth, those certain premises situate
in the City of Redding, County of Shasta and State of California,
more particularly described as follows:
The upstairs restaurant and cocktail lounge areas of the
Redding Municipal Airport Terminal Building, as more parti-
cularly shown on the diagram attached hereto as Exhibit "A"
and incorporated herein by reference, together with the
improvements installed in said areas and access to the
public areas adjacent thereto;
and it is expressly understood that except for the items
furnished by Lessor, which items are more particularly enumerated
in Exhibit "B" attached hereto and incorporated herein by
reference, Lessees shall install all required fixtures,
furnishings and equipment necessary to operate said facilities.
Exhibit "B" attached hereto represents , at the time of execution
of this Lease, those items which Lessor and Lessees agree
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constitute fixtures which Lessees cannot remove from the terminal
building.
2. Term. The term of this Lease shall be two (2) years,
commencing May 1 , 1987 , and terminating April 30 , 1989. Because
no food or beverage service is now available at the Airport, it
is understood and agreed that Lessees will open for business to
facilitate service to customers of the Airport as soon as
practicable. Lessees are encouraged to develop breakfast,
luncheon and dinner facilities assoon as possible.
Lessees shall have the option of renewing this Lease for two
successive terms--the first option term being three (3) years
from May 1 , 1989, through April 30 , 1992; and the second option
term being five (5) years from May 1 , 1992, through April 30,
1997--upon giving Lessor at least ninety (90) days ' notice in
writing of the exercise of the option to renew for the first
option term of three (3) years, and six (6) months ' notice in
writing of the exercise of the option to renew for the second
option term of five (5) years.
3. Use. The premises are leased to Lessees for the
purpose of conducting and operating thereon a restaurant and
cocktail lounge for the use of patrons cf the Redding Municipal
Airport, and the public at large. Lessees may also install and
maintain vending machines as part of their operation within the
leased premises, upon the written approval of the Airport
Restaurant Committee; however, this Lease permits no other use
whatsoever. Lessees will not use the main terminal elevator for
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delivery of daily goods, and will restrict such deliveries to the
delivery access to the kitchen, where a conveyor belt is also
located.
4 . Standards of Operation. It is understood and agreed
that the restaurant and cocktail lounge shall be of a high-
quality type, maintaining a dining room atmosphere, which would
be judged equal to or better than comparable type restaurants in
the Redding area. The determination of whether or not the above
level of operation is maintained shall be made by the City
Council of Lessor by a four-fifths vote, and failure to maintain
that level shall be grounds for cancellation of this Lease.
Lessees shall maintain, at all times, a standard of conduct
for their employees as follows :
(a) No public display of personal grievances.
(b) Drinking of any alcoholic beverages of any kind will
not be permitted by employees while on duty; only when
out of uniform and as a customer.
(c) Employees will eat or take their breaks in designated
areas only.
(d) Tips may not be counted in public view. Tips may be
taken home, wrapped, and brought back if desired.
(e) Employees must not loiter in their uniforms in the
dining area or lounge area after work.
(f) Employees must be well groomed at all times and, in
general, maintain a pleasant attitude.
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Lessees shall operate and keep the restaurant open for
business, seven days per week, from 6 : 00 a.m. to 9: 00 a.m. , 11: 00
a.m. to 2 : 00 p.m. , and 5: 00 p.m. to 10: 00 p.m. each day, except
those days that Lessees obtain prior written approval from
Lessor. Lessees will be allowed to operate anytime from the
hours of 5 : 30 a.m. to 2 : 00 a.m. at their discretion. This
service is intended to serve the general aviation customer, and
the hours may be readjusted with the mutual concurrence in
writing of the Lessees and Lessor.
5. Rent. The total rent to be paid by Lessees to Lessor
shall be as follows:
(a) For the initial two-year term from May 1 , 1987, through
April 30 , 1989, the sum of Two Thousand Dollars
($2, 000. 00) per month, including utilities. It is
agreed by Lessor that it will waive said rent until
Lessees commence commercial operations, but in no event
shall said rent be waived for more than two (2) months.
If Lessees commence commercial operations mid-month,
Lessees shall pay Lessor rent for the balance of said
month, calculated as set forth in paragraph 5 (d)
hereof.
(b) For the first three-year option term from May 1 , 1989,
through April 30, 1992, the sum of Two Thousand Seven
Hundred Twenty-six Dollars ($2, 726 . 00) or six percent
(6%) of the gross sales, whichever is greater,
including utilities.
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(c) For the second five-year option term from May 1 , 1992,
through April 30 , 1997, the sum of Three Thousand Nine
Hundred Dollars ($3 , 900. 00) or eight percent (8%) of
the gross sales, whichever is greater, including
utilities.
(d) All rentals are payable on or before the 10th day of
each month covering the previous month' s operation, the
first such payment being due on the 10th day of the
month following the month in which the operation opens
for business. If said first month of operation is not
a full month, the rental shall be a prorata portion of
the $2, 000 . 00 rental provided above. Proration shall
be accomp6ished by establishing a fraction consisting
of the number of days of operation over the number of
days in the month. This fraction shall then be used as
the factor in calculating any prorated figure of the
minimum payment to be made. Failure to pay rent when
due is a material breach of this Lease Agreement and
grounds for cancellation at Lessor' s option.
Delinquent payments will be assessed one percent (1%)
of the amount in arrears per month, cumulative at an
additional one percent (1%) per month, not to exceed
twelve percent (12%) total.
(e) Gross income shall be understood to mean the total
amount, excluding sales tax and gratuities , which is
received by or which accrues to Lessees in cash or
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credit and other considerations from all operations of
Lessees at the leased premises.
(f) Lessees agree that they will keep and maintain records
of revenue and expenditures in a manner consistent with
generally accepted accounting principals; and that they
will furnish the following to the Finance Director and
the Airport Manager of Lessor:
i. Each month: Appropriate operating and
financial statements, including sales
receipts, due no later than fifteen (15) days
after the end of each month reported on; and
ii. Quarterly: A Balance Sheet and Statement of
Income covering the three (3) months ending
each calendar quarter, due within thirty (30)
days after the end of the period reported on.
It is expressly understood and agreed that Lessor shall
at all times during the term of this Lease have the
right to inspect the books and records of Lessees at
any and all reasonable business hours, upon request.
In addition, Lessor reserves the right to have an audit
performed on the operations at the facility at its
discretion and at no cost to Lessees.
6 . Performance Bond. Lessees shall provide to Lessor a
performance bond in the amount of Eight Thousand Dollars
($8, 000. 00) .
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7. Waste; Quiet Conduct. Lessees shall not commit or
suffer to be committed any waste upon said premises, nor any
nuisances or other act or thing which may disturb the quiet
enjoyment of any other occupant or user of adjoining premises
owned by Lessor. Lessees shall be permitted live entertainment,
in good taste, and in compliance with City Ordinances; however,
not to the disturbance of restaurant customers.
8 . Mechanics ' Liens. Lessees shall keep the demised
premises and the property on which the demised premises is
situated free from any liens arising out of any work performed,
materials furnished, or obligations incurred by Lessees.
9. Utilities; Maintenance. Lessor shall provide water,
sewer, and electric service to the demised premises at no cost to
Lessees. Lessees shall contract for their own janitorial service
for the restaurant and cocktail lounge, including window cleaning
inside, at Lessees ' expense. Lessees shall clean the kitchen
grease trap at least quarterly. Lessees shall be responsible for
all interior maintenance; and Lessor for all exterior building
maintenance, except for outside window cleaning which is a
separate contract.
10 . Acceptance of Premises As Is. Surrender at End of
Term. Lessees accept the premises as being in good and sanitary
order, condition and repair; and agree that on the last day of
the initial term hereof or any renewal or extension thereof or
sooner termination of this Lease to surrender unto Lessor all and
singular said leased premises with said appurtenances in the same
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condition as when received, reasonable use and wear thereof and
damage by fire, Act of God, or by the elements excepted; provided
however, that Lessees shall have the right to remove such
personal property and fixtures placed in and upon said premises
by Lessees which may be removed without damage to the' leased
premises.
11. Compliance with Law. Lessees shall, at their sole cost
and expense, comply with all requirements of federal, state and '
local authorities now in force or which may hereafter be in force
pertaining to said premises and to the operations thereon, and
shall faithfully observe in the use of said premises all federal,
state and local statutes now in force or which may hereafter be
in force. The judgment of any Court of competent jurisdiction or
the admission of Lessees in any action or proceeding against
Lessees, whether Lessor be a party thereto or not, that Lessees
have violated any such ordinance or statute in the use of the
premises, shall be conclusive of the fact as between Lessor and
Lessees.
12. Insurance. Lessees shall assume all responsibility and
liability in connection with their operations under this Lease
Agreement, and Lessees assume and agree -to pay and hold Lessor,
its officers, agents and employees, harmless from any responsi-
bility or liability in connection with Lessee ' s use and occupancy
of these premises during the term of this Lease or any extension
thereof, including damages for injuries to persons or property of
persons using said premises .
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It is specifically understood and agreed as a condition of
this Lease that Lessees shall, at their own expense, obtain and
keep in full force and effect public liability insurance in
minimum amounts as follow: $500, 000. 00 single limit coverage for
personal injury or death; $50, 000. 00 for property damage, which
insurance shall be in form and content sufficient and adequate to
save Lessor, its officers, agents and employees, harmless from
any and all claims arising out of Lessees ' operations under this
Lease. Said public liability insurance shall be carried with an
insurance company acceptable to the City Attorney of Lessor, and
shall name Lessor, its officers, agents and employees, as
additional insureds with respect to all events in connection with
this Agreement.
Lessees shall also maintain workers ' compensation insurance
on all persons employed by them in the operations carried on in
the leased premises.
Certificates evidencing all of the above shall be filed with
the City Clerk of Lessor, and shall contain a provision
obligating the insurance company to notify Lessor in writing at
least ten (10) days ' prior to any cancellation or reduction of
such insurance.
Lessees shall furnish all insurance, including fire, on
their furniture, fixtures , equipment and inventory, as well as
the items contained in the attached Exhibit "B" hereby leased to
Lessees, at their own expense.
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13. Assignment or Subletting. Lessees shall not assign
this Lease or any interest herein, and shall not sublet said
premises or any part thereof, or any right or privilege
appurtenant thereto, or suffer any other person, agents and
servants of Lessees excepted, to occupy or use said premises or
any portion thereof without the written consent of Lessor first
had and obtained. A consent to one assignment, subletting,
occupation, or use by another person shall not be deemed to be a
consent to any subsequent assignment, subletting, occupation or
use by another person. Any such assignment or subletting without
such consent shall be void and shall, at the option of Lessor,
terminate this Lease. This Lease shall not, nor shall any
interest herein, be assignable as to the interest of Lessees by
operation of law without the written consent of Lessor.
14. Inspection. Lessees shall permit Lessor to inspect
said premises and any improvements therein at all reasonable
times during the term of this Lease or any extension thereof.
15. Cancellation. Breach by Lessees of any of the terms,
conditions and agreements contained in this Lease, or any
extension thereof, shall, at the option of Lessor, be a basis for
an immediate cancellation of this Lease, or any extension
thereof. Lessor may, at its option, allow Lessees , following
notice of default under this Lease, a period of thirty (30) days
to correct the noticed default.
16. Notice. Any notices or demands that may be given by
either party hereunder, including notice of default and notice of
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termination, shall be deemed to have been fully and properly
given when made in writing, enclosed in a sealed envelope and
deposited in the United States Post Office, certified mail,
postage prepaid, addressed as follows:
TO LESSOR:
CITY OF REDDING
760 Parkview Avenue
Redding, California 96001
TO LESSEES:
EDWARD SKONIECKI and DAVID J. ALLEN
1740 Bramble Place, #1
Redding, California 96002.
17. Maintenance of Improvements. As a further consider-
ation of this Lease, Lessees agree to maintain their equipment,
furniture and fixtures in good working condition and sanitary
order at all times, and shall provide minor periodical mainte-
nance on the improvements and equipment in the leased areas owned
by Lessor. Lessor shall be responsible for any major service or
repairs to the fixed equipment outlined in Exhibit "B" attached
hereto. Lessees shall be responsible for minor maintenance on
the interior of the restaurant and cocktail lounge. Lessor shall
be responsible for any major maintenance or repairs to these
areas, and to the exterior of the building.
18. Bankruptcy and Insolvency. If Lessees, or either of
them, shall be adjudged bankrupt, either by voluntary or
involuntary proceedings, or shall be the subject of any
proceeding to stay the enforcement of obligations against them in
the form of reorganization or otherwise under and pursuant to any
existing or future laws of the Congress of the United States, or
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shall discontinue business or fail in business, or abandon or
vacate said premises, or make an assignment for the benefit of
creditors, or if said premises should come into possession and
control of any trustee in bankruptcy, or if any receiver should
be appointed in any action or proceeding with power to take
charge, possession, control or care of said premises, Lessor
shall have the option to forthwith terminate this Lease, or any
renewal or extension thereof, and to re-enter the real property
and take possession thereof. In no event shall this Lease be
deemed an asset of Lessees, or either of them, after adjudication
in bankruptcy.
19. United States of America Restrictions.
(a) It is understood and agreed that this Lease is subject
to the covenants , restrictions and reservations
contained in the following instruments to which the
United States of America is a party:
(1) Quitclaim Deed dated June 6, 1947, to City of
Redding;
(2) Instrument of Transfer dated October 7, 1947,
to City of Redding;
(3) Grant Agreement executed by City of Redding
on December 1 , 1948, covering Federal Aid
Airport Project No. 9.-04-062-901;
(4) Grant Agreement executed by City of Redding
on May 18 , 1949, covering Federal Aid Airport
Project No. 9-04-062-902; and
(5) Grant Agreement executed by City of Redding
on July 10 , 1950 , covering Federal Aid
Airport Project No. 9-04-062-903.
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(b) To the extent that the United States of America may
release said property or any part thereof from any of
said covenants , restrictions and reservations, Lessees
shall likewise be released by Lessor.
20. Discrimination. Lessees shall make its services
available to the public without unjust discrimination; however,
Lessees shall have the privilege of refusing service to any
person or persons for just cause, but not to discriminate by
virtue of race, color or creed. Lessees shall furnish their
services on a fair, equal and not unjustly discriminatory basis
to all persons and users thereof, and will charge fair,
reasonable and not unjustly discriminatory prices for such
services.
21 . FAA Requirements. To comply with Federal Aviation
Administration requirements, Lessees, for themselves, their
heirs, executors, representatives, successors and assigns, as a
part of the consideration hereof, do hereby covenant and agree,
as a covenant running with the land:
(1) That in the event facilities are constructed, main-
tained, or otherwise operated on the said property
described in this Lease for a purpose for which a
Department of Transport program or activity is
extended, or for another purpose involving the
provision of similar services or benefits, Lessees
shall maintain and operate such facilities and services
in compliance with all other requirements imposed
pursuant to Title 49, Code of Federal Regulations, DOT,
Subtitle A, Office of the Secretary, Part 21 , Nondis-
crimination in Federally-Assisted Programs of the
Department of Transportation--Effectuation of Title VI
of the Civil Rights Act of 1964, and as said
Regulations may be amended.
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(2) That (a) no person on the grounds of race, color, or
national origin shall be excluded from participation
in, denied the benefits of, or be otherwise subjected
to discrimination in the use of said facilities; (b)
that in the construction of any improvements on, over,
or under such land and the furnishing of services
thereon, no person on the grounds of race, color, or
national origin shall be excluded from participation
in, denied the benefits of, or otherwise be subject to
discrimination; and (c) that Lessees shall use the
premises in compliance with all other requirements
imposed by or pursuant to Title 49, Code of Federal
Regulations, Department of Transportation, Subtitle A,
Office of the Secretary, Part 21 , Non-discrimination in
Federally-Assisted Programs of the Department of
Transportation--Effectuation of Title VI of the Civil
Rights Act of 1964 , and as said Regulations may be
amended.
(3) That in the event of breach of any of the above nondis-
crimination covenants, Lessor shall have the right to
terminate this Lease and to re-enter and repossess said
land and the facilities thereon, and hold the same as
if said Lease had never been made or issued. This
provision does not become effective until the
procedures of 49 CFR Part 21 are followed and
completed, including expiration of appeal rights.
(4) That Lessees shall furnish their accommodations and/or
services on a fair, equal and not unjustly discrimi-
natory basis to all users thereof, and shall charge
fair, reasonable and not unjustly discriminatory prices
for each unit or service; provided that Lessees may be
allowed to make reasonable and nondiscriminatory
discounts , rebates, or other similar type of price
reductions to volume purchasers.
(5) That non-compliance with paragraph 21 (4) above shall
constitute a material breach thereof, and in the event
of non-compliance Lessor shall have the right to
terminate this Lease and they estate hereby created
without liability therefor, or at the election of
Lessor or the United States either or both said
Governments shall have the right to judicially enforce
provisions.
(6) That Lessees agree that they shall insert the above
five provisions 21 (1) through 21 (5) in any lease
agreement, contract, etc. , by which said Lessees grant
a right or privilege to any person, firm or corporation
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