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1978-03-27 - Resolution 1978-04 - Accepting a Lease Betwen the Village of Buffalo Grove and F&M Country Club, Inc. RESOLUTION NO. 78- 4 A RESOLUTION ACCEPTING A LEASE BETWEEN THE VILLAGE OF BUFFALO GROVE AND F AND M COUNTRY CLUB, INC. BE IT RESOLVED, by the President and Board of Trustees of the Village of Buffalo Grove , Cook and Lake Counties , Illinois , that the President and Clerk be and they are hereby authorized and directed to execute a lease for the operation of the restaurant facilities in the. Buffalo Grove Golf Course Club House dated March 27 , 1978 , between the Village and F and M Country Club, Inc. , an Illinois Corporation. Copy of said Lease is attached and made a part hereof. AYES : 4 - Rech, Keister, Stone, Mendenhall NAYES : 0 - None ABSENT: 2 - Bogart, Marienthal PASSED: March 27, , 1978 . APPROVED: March 27, , 1978 . APPROVED: (.1 Vil age President ATTEST : gs&ty i lage_Cler LEASE This Lease entered into this day of , 1978 , by and between THE VILLAGE OF BUFFALO GROVE, a municipal corporation of Cook and Lake Counties , Illinois , ("Lessor") , and F AND M COUNTRY CLUB, INC. , an Illinois corporation, ("Lessee") : WITNESSETH : 1 . Lease : • Lessor hereby leases to Lessee the restaurant facilities located in the Buffalo Grove Golf Course Club House at 400 Lake Cook Road, Buffalo Grove, Illinois , to be used and occupied by Lessee as a restaurant and lounge (sale of liquor included) for the term commencing the 1st day of April , 1978 , and ending the 31st day of December, 1982 , unless otherwise terminated as here- inafter set forth: 2 . Rent : Rent shall be due and payable on the first day of each month. Rent shall be paid as follows : (a) Lessee shall pay the sum of one thousand dollars ($1 , 000. 00) per month except as provided in para- graphs 2 (b) and 2 (c) below. (b) During the months of November and December, 1978 and January and February, 1979, Lessee shall pay the sum of five hundred dollars ($500 . 00) . Lessee may petition for a rent discount for the same months in subsequent years which may be granted solely at the discretion of the Lessor. (c) Lessor reserves the right to review the monthly rent on April of each year and reserves the right to adjust the rent set forth herein subject to 30 days written notice to the Lessee. Said rent adjustment will not exceed one and one-half (1-1/2) percent of the Lessee ' s previous years gross volume receipts . Said rental increase shall be payable monthly during next twelve month period, pro-rata. INIT1 S -1- • 3 . Utilities : Lessor and Lessee shall share on a thirty - seventy (30 - 70) basis respectfully, the cost of all utilities in- cluding 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 Lessee seventy percent of cost of same. Lessee shall pay Lessor within fifteen (15) days after receipt of his prorated share . 4. Cleaning: Lessee shall maintain, clean and keep in good repair all areas within the Club House except for the Pro Shop ("Lessee ' s Area") . Lessee shall also maintain, clean and keep in good repair the walk-in cooler and the outside garbage/refuse area. Maintenance shall 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 Village 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 $15. 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 . 5. 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 . 6. 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. INITI LS _2_ . u u 7. Equipment : Within seven (7) days of occupancy , Lessee shall acknow- ledge in writing that he has inspected all equipment set forth in the schedule herein and that all such equipment is in good operating condition. Lessee shall have the right to substitute equipment for that on premises . 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. 8 . Maintenance : Lessee shall notify Lessor of any equipment (other than equipment Lessee installs on the premises) that is in need of repair. Lessor shall determine if said equipment is repair- able and, if so, Lessee shall pay the first one hundred ($100 . 00) dollars of the repair cost. If Lessor shall determine that equipment is not repairable , then Lessor shall replace said equipment with equipment of like kind and quality without charge to Lessee. All equipment installed by Lessee shall be main- tained and repaired by Lessee . 9 . Termination: (a) 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 . INITIALS -3- . r (b) 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 . (c) Upon termination for whatever reason, the Lessee shall deliver up the premises and the equipment listed in the attached schedule (along with any replaced equipment that cannot be removed in such a manner as provided in paragraph 7) in a clean operating and sanitary condition, except for ordinary wear and tear. 10 . 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 (20) days written notice, this Lease may be terminated. 11 . 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 will be submitted to the Lessor quarterly on a calendar year basis . The hours of operation shall be posted prominently both within and without the premises . 12 . Operation: Lessee shall operate said facilities as a restaurant and lounge meeting the requirements of a Golf Course and Country Club Operation as determined by the Lessor, and shall make all efforts to establish a banquet trade on the premises . 13. Licenses : Lessee shall obtain a Village of Buffalo Grove business license , IIJLTI LS • a Village of Buffalo Grove liquor license and a State of Illinois liquor license prior to opening sales to the public . In event Lessee is unable to obtain any such licenses , then this lease shall be null and void. 14 . Lawfulness : Lessee shall not conduct or permit any conduct on the demised premises which is contrary to the laws of any govern- ment authority. 15 . Coin Operated Machines : Lessee may maintain on the premises and have the proceeds of three coin operated machines per Village of Buffalo Grove ordinances . Lessor may maintain on the premises and have the proceeds of one cigar machine , one cigarette machine and one candy machine. No other coin operated machines shall be allowed on the demised premises without the written consent of the Lessor. Lessee shall obtain licenses on its machines as per Village Ordinances, 16. Signs : Lessor may be permitted to display such exterior signs as permitted by Village Ordinances. Lessor shall pay for the construction of any such signs . At the termination of this Lease any such signs shall become Lessor's property. 17. 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 inter- fere with the operation as such. INITIALS -5- • . . r 18 . Security Deposit : Upon the execution of this Lease, Lessee shall deposit with Lessor one thousand and no/100 dollars ($1 ,000 . 00) as and for a security deposit , to guaranty Lessee 's faithful performance of this lease. .19 . Inventory: Prior to occupancy of the premises , Lessee and Lessor shall conduct a joint inventory of all supplies , including but not limited to plates , glasses , pots and pans , all moveable equipment and all fixtures . This inventory shall be signed by Lessee and Lessor attached to this Lease as Exhibit "A". Additional or replacement supplies shall be at Lessee 's expense . 20 . Examination of Records : A verified copy of Lessee ' s monthly state sales tax re- turns for the proceeding three months will be given to the Lessor no later than one (1) month and seven (7) days after the end of each lease quarter. Such returns will be considered to be of a confidential nature and not open to public inspection. 21 . Decorating and Capital Improvements : Decorating or new capital improvements shall be done at Lessee ' s expense with the exception of those improvements set forth in paragraphs 16 and 22 . 22 . 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. 23. Assignments/Sub-Lease : This Lease is not assignable by either party hereto . Lessee shall not sublet the premises or any part thereof. INITIALS_ -6- • f 4 • 24 . Insurance : Lessee shall (during the term and any extension hereof) maintain the following insurance in companies acceptable to the Lessor : (a) Workmen' s Compensation (Lessee will furnish certificate of Insurance thereof) (b) Dram Shop ($500 , 000 . 00) (Lessor shall be named as an additional insured thereon . ) (c) General Liability ($500 ,000 . 00/$500 ,000 . 00 bodily injury and $50 ,000 . 00/$50 ,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 endorsement on a prorated basis . Said cost is estimated at $100 per policy year. 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 . 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. INITI -S // . r •25 . Sales on Golf Course Property: (a) The Lessor shall not authorize , or to its knowledge , permit any person, corporation, partnership or entity to sell or give away alcoholic or non-alcoholic beverages or food on the Golf Course property unless said products are purchased from the Lessee . (b) At the request of the Lessor, Lessee shall provide food, beer, and soft drinks at his costs for the annual Buffalo Grove Days festivities and July 4th fireworks show sponsored by the Village of Buffalo Grove or a non-profit organization recognized by the Village of Buffalo Grove ,respectively satisfying Lessee ' s community obligation. (c) For the annual Buffalo Grove Days festivities and July 4th fireworks show, Lessee shall permit the sale of food, beer, and soft drinks on the Golf Course property but outside the club house building. 26. 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 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. 27 . Casualty: In case the Premises shall be rendered untenantable during the term of this Lease by fire or other casualty, Lessor at his option may terminate the Lease or repair the premises within sixty (60) 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. INIT� L -8- 71/4'� • r • If Lessor shall not have repaired the premises within said time , then the term hereby created shall terminate . If this Lease is terminated by reason of fire or casualty as herein specified , rent shall be apportioned and paid to the day of such fire or other casualty. 28 . 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 paragraph 12 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 and first class 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 or conducting a similar business in the immediate vicinity of the Premises . 29. The only authorized agent of the Lessor shall be the Lessor' s Chief Administrative Officer. The only author- ized agent of the Lessee shall be John Eggen, President of Lessee. 30 . Option to Renew: Lessee shall have the option to renew this Lease for one (1) additional term of five (5) years provided that Lessee is not presently in default under any of its obliga- tions under this Lease ; provided, however , that Lessee gives written notice of such election to exercise such option to Lessor at least ninety (90) days prior to the expiration of the term herein provided. INITIALS -9- ��� 31 . Notices : All notices provided herein shall be made by certified mail , return receipt to the parties hereto as follows : LESSOR: Village of Buffalo Grove S0 Raupp Boulevard Buffalo Grove , Illinois 60090 LESSEE: F and M Country Club , Inc . c/o John Eggen Route 2 Long Grove , Illinois 60047 George N. Gordon Associates , P. C. 444 N. Michigan Avenue Chicago , Illinois 60611 All notices shall be deemed delivered upon receipt . 32 . Liability: No personal liability shall attach to any person executing this lease. 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 F and M Country Club , Inc . By (11-e,r6li By, /2/,:liage President ,j President ATTEST: - ATTEST: Village Clerk Secretary INITIALS -10- • 4 r