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1982-12-06 - Resolution 1982-59 - ACCEPTING A LEASE BETWEEN THE VILLAG OF BUFFALO GROVE AND EAT'S INCORP. IN ILLINOIS CORPORATION RESOLUTION NO. 82 - 59 A RESOLUTION ACCEPTING A LEASE BETWEEN THE VILLAGE OF BUFFALO GROVE AND EAT'S INCORPORATED, AN ILLINOIS CORPORATION BE IT RESOLVED BY THE PRESIDENT AND BOARD OF TRUSTEES OF THE VILLAGE OF BUFFALO GROVE, COOK AND LAKE COUNTIES, ILLINOIS, THAT: SECTION 1 . The President and Clerk be and they are hereby authorized and directed to execute a lease for the operation of the restaurant and bar facilities in the Buffalo Grove Golf Course Club House dated December 6, 1982, 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 thereof. AYES: 6 - Marienthal , Stone, O'Reilly, Hartstein, Gerschefske, Schwartz NAYES : 0 - None ABSENT: 0 - None PASSED: December 6 , 1982. APPROVED: December 6 , 1982. Village President ATTEST: ii. Vi 1 lag.e)Clerk_ .. U LEASE This lease entered into this 6th day of December 1982, by and between THE VILLAGE OF BUFFALO GROVE, a municipal corporation of Cook and Lake Counties, Illinois, ("Lessor") , and EAT'S, INCORPORATED, 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 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 , 1983, and ending the 31st day of December, 1983, unless otherwise terminated as hereinafter set forth: 2. Rent: Rent shall be due and payable on the first day of each month beginning January 1 , 1983. Rent shall be paid as follows: (a) Lessee shall pay the sum of Six Hundred Dollars ($600.00) 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) Lessor reserves the right to review the monthly rent in November 1983 prior to the development of any subsequent lease and reserves the right to adjust the rent upon notice to Lessee. Lessor and Lessee shall work together to determine fair and adequate rent return based on performance review. 3. Utilities: Lessor and Lessee shall share on a square footage determination the cost of all utilities including electricity, gas, water, heating, and INITIALS -1- 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-rata charge to be determined and added as Exhibit "A" to this document. Lessee shall pay Lessor within fifteen (.15) days.after receipt of his pro-rated share. Lessor shall work with Lessee to enhance physical facility to attempt all possible energy conservation measures. 4. Cleanin9: Lessee shall maintain, clean and keep in good repair all appropriate areas within the Club House including the washrooms. Lessee shall maintain , clean and keep in good repair the walk-in cooler and the outside garbage/refuse 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 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. 7. Equipment: Within seven (7) days of occupancy, Lessee shall acknowledge in writing that he has inspected all equipment set forth in the schedule herein and that all such equipment is in good operating condition. INITIALS -2- 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 repairable and, if so, Lessee shall pay the first one hundred dollars ($100.00) 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 maintained 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. (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 Exhibit "B" (along with any replaced equipment that connot 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 INIITIALS, -3- U C 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 monthly 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. 13. License3: Lessee shall obtain a Village of Buffalo Grove business license, a Village of Buffalo Grove liquor license and a State of Illinois liquor license and any and all applicable federal licenses prior to opening for sales to the public. In the 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 government authority. 15. Coin Operated Machines and Tobacco Sales: Lessor may maintain on the premises and have the proceeds of one candy machine. No other coin operated machines 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. INITIALS -4- • 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 interfere with the operation as such. 18. Security Deposit: Upon the execution of this Lease, Lessee shall 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. 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 and attached to this Lease as Exhibit "B". Additional or replacement supplies shall be at Lessee's expense. 20. 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 will pledge to keep such returns confidential and not open to any public inspection. 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. INITIALS s . -5- W. 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. 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 /$1 ,000,000.00 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 pro-rated 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. INITIALS -6- 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 with two (2) days after notifica- tion, Lessor shall require Lessee to pay the excess. 25. Sales on Golf Course Property: (a) At the request of the Lessor through its authorized agent, 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. (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. Casulty: In case the premises shall be rendered untenantable during the term of this Lease by fire or other casulty, 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 INITIALS -7- 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 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 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. This would include amongst other things, a printed menu and advance notice to Lessor of price changes for food and beverages sold. 29. Authorized Representatives : The only authorized agent of the Lessor shall be the Lessor 's Chief Administrative Officer. The authorized agent of the Lessee shall be Gerald Shapiro, Attorney at Law, 1535 Lake Cook Road, Northbrook, Illinois 60062. 30. Option to Renew: The Lessee shall have the option to renew this lease on an annual basis beginning lanuary 1 , 1984 (upon such terms and conditions as are mutually agreed upon by the parties hereto) ; provided that Lessee is not presently in default under any of its obligations under this Lease; provided, however, that Lessee gives written notice of such election to exercise such option to Lessor at lease one hundred twenty (120) days prior to the expiration of the term herein provided. 31 . Notices : All notices provided herein shall be made by certified mail , return receipt to the parties hereto as follows: INITIALS -8- LESSOR: Village of Buffalo Grove 50 Raupp Boulevard Buffalo Grove, Illinois 60090 LESSEE: Eat 's Incorporates do Buffalo Grove Golf Club 48 Raupp Boulevard Buffalo Grove, Illinois 60090 32. Liability: No personal liability shall attach to any person executing this lease. 33. 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. 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 Corporation BY BY 1�ititA (,Lli , Village President Pre 'de ATTEST: ATTEST: Subscribed and sworn to before me this - - 6 day of � � , 1982. lage- Clerk "Sec a ry INITIALS -9- • EXHIBIT "A" 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 46.060 of all utility invoices submitted by the Village (Lessor) under the terms of 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 basis of calculating the final square footage. William H. Bk.imm Finance Director This exhibit is accepted under the terms of Paragraph #3 in lease dated December 6, 1982 between the Village of Buffalo Grove (Lessor) and EAT'S INCORPORATION, an Illinois Corporation. 6 II • William R. Balling Kerry Ku) Authorized Agent - Lessor President Eat 's Incorporated - Lessee j • October 20, 1982 Mr. William R. Balling Village Manager Village of Buffalo Grove 50 Raupp Blvd. Buffalo Grove, Illinois 60090 Re: Lease Renewal Option Dear Mr. Balling: In reply to your letter of October 5, 1982, and in compliance with paragraph 30, "Option To Renew", please consider this letter as notice of my intent to exercise my option to renew my lease beginning January 1, 1983. Please advise me of any further paperwork necessary to initiate the new lease. Thank you very much. Very truly yours, --X /// Kerry uhn Sandtrap Restaurant