1988-004ORDINANCE NO. 88- 4
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AN ORDINANCE ACCEPTING A LEASE BETWEEN THE VILLAGE OF BUFFALO GROVE
AND EAT'S INCORPORATED, AN ILLINOIS CORPORATION
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, that:
SECTION 1. The Village President and Village Clerk be and they are
hereby authorized and directed to execute a lease for the operation of the
restaurant and bar facility in the Buffalo Grove Golf Club Club House dated
December 21, 1987, between the Village of Buffalo Grove and Eat's
Incorporated, an Illinois Corporation.
Section 2. A copy of said executed lease is attached and made a part
hereof.
Section 3. This ordinance shall not be codified.
AYES: 4 - Marienthal, Glover, Reid, Shifrin
NAYES: 0 - None
ABSENT: 2 - Shields, Kowalski
PASSED: January 18 , 1988.
APPROVED: January 18 1988,
it age President
ATTEST:
Vill e Clerk
LEASE
This lease entered into this 21st day of December, 1987, by and between THE
VILLAGE OF BUFFALO GROVE, municipal corporation of Cook and Lake Counties,
Illinois ( "Lessor "), and EATS, INCORPORATED, an Illinois corporation
( "Lessee "):
Section A. Purpose of Lease
1. Lease:
Lessor hereby leases to Lessee the restaurant facilities located in
the Buffalo Grove Golf Course Club House at 48 Raupp Boulevard, Buffalo
Grove, Illinois, to be used and occupied by Lessee as a restaurant and lounge
(sale of liquor included) for the term commencing January 1, 1988, and ending
the 31st day of December, 1988, unless otherwise terminated as hereinafter
set forth. It is hereby understood and agreed that the sole stockholder of
EATS, INC. is Kerry Kuhn. Any transfer, assignment or sale of stock of said
corporation shall immediately make this lease voidable at Lessor's option.
Section B. Terms & Conditions
1. Operations:
Lessee shall operate said facilities as a restaurant and lounge
meeting the requirements of a Golf Course and Country Club .Operations as
reasonably determined by the Lessor that are in conformance with standards
followed by restaurants and lounges in the same or similar operation.
2. Lawfulness:
Lessee shall not conduct or permit any conduct on the demised
premises which is contrary to the laws of any governmental authority.
3. Compliance:
During the term of the Lease, Lessee shall comply with all Federal,
State, County, and Village statutes and ordinances, including but not by way
of limitation, State of Illinois and Village liquor licenses on municipally
owned golf Course.
4. Licenses:
Lessee shall obtain a Village of Buffalo Grove business license, a
Village of Buffalo Grove liquor license and a State of Illinois liquor
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license and any and all applicable Federal licenses prior to opening for
sales to the public. In the event Lessee is unable to obtain or retain any
such licenses, then this lease shall be null and void.
5. Hours of Operation:
Notwithstanding the provisions of any statute or Village Ordinance,
the hours of operation shall be approved in advance by Lessor's authorized
agent, and such approval shall not be unreasonably withheld. The hours of
operation shall be as follows:
Monday Through Saturday - 11:00 A.M. -1 :00 A.M.
Sunday - 11:00 A.M.- 12:00 Midnight
The hours of operation shall be posted prominently, both within and without
the premises. Any changes shall be submitted by Lessee and will be
amendments to this Lease if approved by Lessor which approval will not be
unreasonably withheld.
6. Performance:
The parties understand that Lessor has developed and maintained the
property where the premises are situated as a place or location for a high
quality and outstanding type of use as stated in Section B, paragraph 1
herein, and accordingly, Lessee, as a special inducement to Lessor to enter
into this Lease, covenants, agrees and represents that the business the
Lessee will conduct on the premises will be reputable in all respects, that
Lessee will employ and operate the business in conformance with the standards
followed by restaurants and lounges dealing in the same or similar operation.
7. Access:
Lessee shall allow Lessor free access to the demised premises for
the purposes of examining same to ascertain that they are in good repair and
in clean and sanitary condition.
It is understood that the building is basically a Golf Course
facility and that nothing herein contained shall interfere with the operation
as such. Lessee shall have access to parking lot and other parts of Club
House for making any necessary repairs. Lessor will use its best efforts to
maintain access to existing Club House during construction.
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8. Remedies:
The rights and remedies of the parties under this Lease are
cumulative. The exercise or use of any one or more thereof shall not bar
Lessor or Lessee from exercise of use of any other right or remedy provided
herein or otherwise provided by law, nor shall exercise nor use of any right
or remedy by Lessor waive any other right or remedy.
9. Security Deposit:
Upon the execution of this Lease, Lessee shall continue to maintain
a deposit with Lessor of Two Thousand and no /100 Dollars ($2,000.00) as a
security deposit to guarantee Lessee's faithful performance of this lease to
and including, but not by way of limitation, payment of rent.
Section C. Rent And Other Compensation
1. Rent:
Rent shall be due and payable on the first day of each month
beginning January 1, 1988. Rent shall be paid as follows:
(a) Lessee shall pay the sum of Eight Hundred Fourteen Dollars
and Twenty -Five Cents ($814.25) per month rent for the months
of April through September.
(b) During the months of January through March, and October
through December, the rent shall be zero.
(c) The rent payable and due in subsections (a) and (b) above
shall apply to calendar year 1988 only. Lessor reserves the
right to review the monthly rent in or before December, 1988,
and reserves the right to adjust the rent upon notice to
Lessee. Lessor and Lessee shall work together to determine a
fair and adequate rent return based on performance review.
Rent adjustments will be amendments to this lease. In no case
will the annual adjustment in rental compensation due the
Lessor be less than the annual change in the Chicago Area
Consumer Price Index for the annual period ending December 31,
1988, to be effective with the succeeding calendar year or
portion thereof.
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2. Examination of Records:
A verified copy of the Lessee's monthly sales tax returns for each
month of operation will be given to the Lessor's authorized agent only, no
later than fifteen (15) days after the end of each lease month. Lessor shall
keep such returns confidential and shall not open same to any public
inspection, if not in violation or contrary to any laws.
Annually, the Lessor reserves the right to review the records of
the Lessee in order to determine what should be a fair and equitable monthly
rent in any subsequent year of this lease. The records may be reviewed by the
Lessor's authorized agent or his representative or representatives. Lessor
will pledge to keep such returns confidential and not open to any public
inspection if not in violation or contrary to any laws.
3. Utilities:
Lessor and Lessee shall share on a square footage determination the
cost of all utilities including electricity, gas, water, heating and air
conditioning. All bills for same shall be in Lessor's name and Lessor shall
pay same. Lessor shall subsequently bill out to Lessee the pro -rated charge
to be determined as per Exhibit "A" to this document. Lessee shall pay
Lessor within fifteen (15) days after receipt of notice of his pro -rated
share. Lessor shall provide record of computations used in determining
utility obligations due.
Section D. Cleaning, Maintenance & Improvements
1. Cleaning:
Lessee shall maintain, clean and keep in good repair all areas
related to the restaurant within the Club House including Club House
washrooms. Lessee shall maintain, clean and keep in good repair the walk -in
cooler and the outside garbage /refuse and storage area. Maintenance will be
concluded by 5:00 A.M. daily. Lessor shall maintain and clean all other
outside areas (including parking lot) of the demised premises. Lessee's area
shall be maintained in a condition acceptable to Lessor's Health Officer. If
Lessee receives violations from the Health Officer and does not correct same
within two (2) days, then Lessor will correct same and bill Lessee at the
rate of $25.00 per hour. It is expressly understood by the parties hereto
that notwithstanding anything to the contrary, the Lessee shall not be
responsible for making any repairs to the parking lot.
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2. Maintenance:
Lessee shall notify Lessor of any equipment (other than equipment
Lessee installs or owns on the premises) that is in need of repair. All
equipment installed by Lessee shall be maintained and repaired by Lessee.
The Lessor shall maintain all other areas in good repair including, but not
limited to, sewers, utilities, heating, and air conditioning.
3. Equipment:
(a) Lessor owns equipment as listed on Exhibit "B" hereto. Within
seven (7) days of execution and for renewal of this lease,
Lessee shall acknowledge in writing that he has inspected all
equipment set forth in Exhibit "B" herein and that all such
equipment is in good operating condition. Lessee shall have
the right to substitute equipment for that in Exhibit "B ".
All expense of connection and installation shall be borne by
Lessee. All removed equipment shall be stored by the Lessor.
Upon termination of Lease for any cause, the Lessee shall
reinstall old equipment without cost to Lessor, provided that
the premises shall be in the same condition as prior to
removal. If structural changes are necessary to install the
new equipment, said equipment shall remain and shall be the
sole property of the Lessor.
(b) Upon termination (other than an assignment that the Village
has approved) of this Lease for whatever reason, Lessor shall
have the first right of refusal to purchase any installed
equipment and fixtures at their fair market value. Such fair
market value shall be determined through a fair appraisal of
such equipment and fixtures to be conducted by an appraiser to
be retained by Lessor who shall conduct such appraisal and
shall be paid by Lessor. Appraiser shall not be denied access
to review any and all equipment and fixtures on the premises
for the purpose of determining the fair market value of such
equipment and fixtures. A copy of paid invoices for any
equipment so purchased by Lessee under this sub - paragraph (b)
shall be forwarded to Lessor within thirty (30) days of
purchase.
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(c) Lessor's first right of refusal as set forth in sub - paragraph
(b) above shall be exercised within thirty (30) days of
termination of this Lease.
4. Decorating & Capital Improvement:
Decorating or new capital improvements shall be done at Lessee's
expense, unless waived, upon written approval of the Lessor with the
exception of those improvements set forth in Section D. paragraph 5. Any
capital improvements shall become part of Lessor's property.
5. Outside Lighting:
Any outside lighting of the premises shall be done in Lessor's sole
discretion and at Lessor's cost. Any outside lighting of an exterior sign
shall be done at Lessor's cost.
6. Signs:
Lessee may be permitted to display such exterior signs as permitted
by Village Ordinances. Lessee shall pay for the construction of any such
signs. At the termination of this Lease any such signs shall become Lessee's
property.
7. Alterations:
Lessee shall make no material changes, alterations or additions in,
on, or to the demised premises without the prior written consent of the
Lessor which shall not be unreasonably withheld.
8. Coin Operated Machines & Tobacco Sales:
Lessee may maintain on the premises and have the proceeds of one
candy machine. No other coin operated machines, except the cigarette
machine referred to below, shall be allowed on the demised premises without
the written consent of the Lessor. Lessor shall obtain licenses on its
machine as per Village Ordinances.
Lessee shall have the right to sell cigarettes through a vending
machine maintained by the Lessee. Lessee shall obtain the required license
and shall conform to the applicable Village Ordinances regarding tobacco
dealers.
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Section E. Assignment of Lease:
1. Assignment:
The Lessee shall not assign this lease without the Lessor's prior
written consent. Lessor shall consent so long as the assignee is financially
sound, knowledgeable in the business of operating food and bar facilities,
and can maintain service levels required by the Lessor that are in
conformance with the terms and conditions of this Lease. Lessee shall give
Lessor 120 days notice prior to any consideration of assignment.
In the event of any such assignment of this Lease, the Lessee shall
be released from any and all liability arising or accruing under this Lease
after the date of such assignment, provided that the assignee executes,
acknowledges, and delivers a valid, binding, and sufficient instrument in
writing, directly enforceable by the Lessor, containing the assignee's
assumption and agreement to pay all rent and other amounts reserved in this
Lease and to perform all of the covenants, provisions, and conditions
thereof, and that an original of such assumption and agreement be delivered
to the Lessor. In no other circumstances shall the Lessee be so released,
nor shall the acceptance of rent by the Lessor from any such assignee, in any
case, operate or be taken to work or effect such release.
Section F. Termination
1. Termination:
In the event of any default in the terms hereof and if the same are
not corrected within thirty (30) days from written notice of same, the Lessor
may terminate the Lease and take possession of the premises and equipment
without the necessity of institution of eviction proceedings.
Each of the parties hereto shall have recourse to any Court of Law
or equity to enforce the provisions of this Lease as set forth herein.
Upon termination for whatever reason, the Lessee shall deliver up
the premises and the equipment listed in the attached Exhibit "B" (along with
any replaced equipment that cannot be removed) and that equipment noted in
Section D, Paragraph 3.(c) that Lessor has exercised its right of first
refusal on in a clean, operating and sanitary condition, except for ordinary
wear and tear.
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2. Bankruptcy:
In the event that Lessee shall become bankrupt or shall make a
voluntary assignment for benefit of creditors, or in the event that a
receiver is appointed, then, at the option of the Lessor on twenty (60) days
written notice, this lease may be terminated.
3. Casualty:
In case the premises shall be rendered untenantable during the term
of this Lease by fire or other casualty, Lessor at its option may terminate
the Lease or repair the premises within ninety (90) days thereafter. No rent
or utilities shall be due and owing from date of casualty until date premises
is rendered tenantable. If Lessor elects to repair, this Lease shall remain
in effect provided such repairs are completed within said time. If Lessor
shall not have repaired the premises within said time, then the term hereby
created shall terminate if Lessee so elects. If this Lease is terminated by
reson of fire or casualty as herein specified, rent shall be apportioned and
paid to the day of such fire or other casualty.
Section G. General Conditions
1. Insurance:
Lessee shall (during the term and any extension hereof) maintain
the following insurance at amounts to be considered a minimum, in companies
acceptable to the Lessor:
(a) Workmen's Compensation at the required statutory limits.
(b) Dram Shop ($500,000.00) (Lessor shall be named as an
additional insured thereon).
(c) General Liability ($500,000.00/$1,000,000.00 bodily injury;
and $50,000.00 /$500,000.00 property damage). (Lessor shall be
named an additional insured as their interest appears. This
will not require Lessee to provide said insurance to cover
parking lot.)
(d) Lessor shall provide fire and extended coverage on the
building and its contents which insurance policy shall contain
a "Waiver of Subrogation" against Lessee. Lessee shall pay
Lessor for the cost of said "Waiver of Subrogation" endorse-
ment on a pro -rated basis.
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Lessee will be responsible for providing its own insurance covering
its equipment and inventory. Evidence of such insurance shall be furnished
Lessor prior to taking possession of the premises. Lessor shall in addition
to providing certificates of insurance to Lessee for the above named
coverages, name the Village of Buffalo Grove as an additional insured and
provide for the hold harmless of the Village, its employees, officers and
agents from any and all causes of action, loss, legal expenses and other
costs that may arise from the operation of premises, and execution of this
lease by the Lessee
In the event the Lessee does anything on the demised premises which
raises existing insurance rates on the building, the Lessor shall notify the
Lessee and unless the same is corrected within two (2) days after
notification, Lessor shall require Lessee to pay the excess.
2. Sales On Golf Course Property:
(a) Lessee shall have non - exclusive right to bid to provide food,
beer, and soft drinks for the annual Buffalo Grove Days festivities, July 4th
fireworks show sponsored by the Village of Buffalo Grove or a non - profit
organization recognized by the Village of Buffalo Grove, and any and all
Village activities as recognized by the Lessor's authorized agent.
(b) Lessor shall, upon seven (7) days written notice to Lessee, be
entitled to limited possession of the leased premises to the exclusion of
Lessee for the purpose of holding Village of Buffalo Grove related activities
not to exceed five (5) times per year. If, however, the use of the kitchen
and bar will be required, written approval of the Lessee will be necessary,
consent of which will not be unreasonably withheld.
(c) For the annual Buffalo Grove Days festivities and July 4th
fireworks show, Lessee shall permit the sale of food, beer, wine coolers, and
soft drinks on the Golf Course property, but outside of the club house
building.
3. Card Playing, Gambling, and Quasi - Gambling Activities:
All forms of gambling are prohibited. This includes all
organized card playing, betting and other wagering activities which are
deemed by the Lessor to be not of suitable character and are prohibited from
taking place within the Buffalo Grove Golf Course Club House.
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4. New And /Or Additional Facilities:
When the Lessor constructs a new restaurant and /or lounge facility
on or adjacent to the Buffalo Grove Golf Course, either as part of a club
house or as a separate facility, in addition to or -as replacement for the
demised premises, or constructs an addition to the present facility, during
the term of this lease, or any renewal, extension, or modification thereof,
Lessee shall be offered the right to operate said new and /or additional
facility upon terms and conditions specified by the Lessor that are mutually
agreeable to both parties to this Lease.
5. Authorized Representative:
The only authorized agent of the Lessor shall be the Lessor's Chief
Administrative Officer. The authorized agent of the Lessee shall be Kerry
Kuhn, c/o Buffalo Grove Golf Club, 48 Raupp Blvd., Buffalo Grove, Illinois
60089.
6. Notices:
All notices provided herein, to be effective upon receipt, shall be
served personally or made by certified mail, return receipt to the parties
hereto as follows:
LESSOR: Village of Buffalo Grove
50 Raupp Boulevard
Buffalo Grove, Illinois 60089
LESSEE: Eat's Incorporated
c/o Buffalo Grove Golf Club
48 Raupp Boulevard
Buffalo Grove, Illinois 60089
7. Liability:
No personal liability shall attach to any person executing this
Lease.
Section H. Extension of Lease:
1. Extension of Lease:
The Lessee shall have the option and right of first refusal to
extend this lease on a month -to -month basis beginning January 1, 1989,
upon such terms and conditions as are mutually agreed upon. The right to
extend such lease shall be considered, provided that the Lessee is not
presently in default under any of its terms, conditions, or obligations under
this Lease. The reason for this type of extension is that the proposed new/
additional facilities noted in Section G, Paragraph 4 above are not
anticipated to be available for occupancy until some point in calendar, 1989.
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At the point in time when a new facility shall be available for occupancy,
this lease shall be null and void, to be replaced by a new lease between the
Village and a lessee to be selected for that facility. The intent of this
lease is to cover operations of the current food and bar facility at the
existing Buffalo Grove Golf Club Club House at the time this lease is
executed until a new facility is available.
Lessee must give written notice of such election to exercise such
extension option to Lessor at least one hundred twenty (120) days prior to
the expiration of the term herein provided.
IN WITNESS WHEREOF the parties hereto have caused this Lease to be
executed the day and year first above written.
LESSOR: LESSEE:
VILLAGE OF BUFFALO GROVE EAT'S INCORPORATED, an Illinois Corp.
B r"��f%K2 y Y
illage President Pr sident
ATTEST:
ATTEST:
image Clerk Secretary
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EXHIBIT "A"
Section C, Paragraph 3, Utilities requires the lessee and lessor to
share on a square footage basis the cost of all utilities. The pro -rata
charge shall be billed on a percentage of restaurant, bar, kitchen, and
storage square footage to the total square footage of the club- house.
Attached are three documents. An explanation of each is appropriate.
1) This document accumulates the square footage calculations for
all component areas of the club house. The final percentage
basis for utility charge -back are calculated. The lessee shall
pay 46.06% of all utility invoices submitted by the Village
(lessor) under the terms of Section C, Paragraph 3.
2) This graph represents the actual floor dimensions of the club - house.
This survey was conducted by the Director of Finance and General
Services on May 5, 1980. Dimensions are accurate although the
actual diagram is not drawn totally to scale.
3) This graph is a photocopy of #2 above and was utilized to block
out the room area for the bases of calculating the final square
footage.
&4,)Ut wIK' '
William H. Brimm
Finance Director
This exhibit is accepted under the terms of Section C, Paragraph 3 in lease
dated December 21, 1987 between the Village of Buffalo Grove (Lessor) and
EATS, INCORPORATED, an Illinois Corporation (Lessee)
W&' ,R.
William R. Balling
Authorized Agent- Lessor
Kerry Kuhn
Eats, Incopor ted
(Lessee)
VILLAGE OF BUFFALO GROVE
D 6
ORDINANCE NO. — �z
ADOPTED BY THE PRESIDENT
AND BOARD OF TRUSTEES OF THE VILLAGE
OF BUFFALO 9,ROVE ,A
THIS DAY OF , 19,? X .
Published in pamphlet form.by authority of the
President and Board of Trustees of the Village
of Buffalo Grove, Cooh & Lake Counties, Ill' ois,
this l R day of / 19 g"r
Village Clerk
By �Gs_ieJ
Deputy" Clerk
ORDINANCE NO. 88- 4
AN ORDINANCE ACCEPTING A LEASE BETWEEN THE VILLAGE OF BUFFALO GROVE
AND EAT'S INCORPORATED, AN ILLINOIS CORPORATION
BE IT ORDAINED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF
BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, that:
SECTION 1. The Village President and Village Clerk be and they are
hereby authorized and directed to execute a lease for the operation of the
restaurant and bar facility in the Buffalo Grove Golf Club Club House dated
December 21, 1987, between the Village of Buffalo Grove and Eat's
Incorporated, an Illinois Corporation.
Section 2. A copy of said executed lease is attached and made 'a part
hereof.
Section 3. This ordinance shall not be codified.
AYES: 4 - Marienthal, Glover, Reid, Shifrin
NAYES: 0 - None
ABSENT: 2 - Shields, Kowalski
PASSED: January 18 , 1988.
APPROVED: January 18 1988.
Tillage President
ATTEST:
Village Clerk