2002-07RESOLUTION 2002 - 7
A RESOLUTION AUTHORIZING THE EXECUTION OF A LEASE BETWEEN THE
VILLAGE OF BUFFALO GROVE AND PROGRESSIVE MANAGEMENT SERVICES, LLC.
WHEREAS, the Village of Buffalo Grove is a Home Rule Unit pursuant to the
Illinois State Constitution of 1970; and
WHEREAS, it has determined that it is in the best interest of the Village
to lease the restaurant and beverage services at the Arboretum Golf Course; and
WHEREAS, the Village of Buffalo Grove approved, as part of the FY 2002
Budget for the Arboretum Golf Course, the recommendation to retain Progressive
Management Services, LLC to provide food and beverage services at the Arboretum
Golf Course beginning as of February 4, 2002.
NOW, THEREFORE, 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 Village President and Clerk are hereby authorized to
execute the attached lease entitled "Lease Between the Village of Buffalo
Grove and Progressive Management Services, LLC" dated as of the 4th day of
February, 2002.
Section 2. Village staff is hereby directed to insure that this lease is
implemented in order for service to commence at the Arboretum Golf Course
on or about March 1, 2002.
AYES: 6 - Marienthal, Braiman, Glover, Berman, Johnson, Kahn
NAYES: 0 - None
ABSENT: 0 - None
PASSED: February 4 ,2002, APPROVED: February 4, ,2002.
r_1 c -
Village President VM Clerk
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LEASE BETWEEN THE VILLAGE OF BUFFALO GROVE AND
PROGRNSSIVE MANAGEMENT SERVICES, LLC
This lease is entered into this 4th day of February, 2002, by and between the
Village of Buffalo Grove, a municipal corporation ( "Lessor "), and Progressive
Management Services, LLC, an Illinois limited liability corporation ( "Lessee "):
Section A. Grant of Lease:
1. Lease: Lessor hereby leases to Lessee the snack bar area in the
prefabricated modular facility located at the Arboretum Golf Course, 401 Half Day
Road, Buffalo Grove, Illinois. The snack bar is hereinafter referred to as the
"Premises". The term of this Lease shall be from March 1, 2002 through October
31, 2002, unless mutually extended.
Additionally, the Lessee shall be given access to areas adjacent to the
Premises including but not be limited to washrooms, patios, half way house, event
tents and golf course grounds for the purpose of utilizing beverage carts
( "Adjacent Areas ").
Section B. Terms and.Conditions:
1. Operations: Lessee shall operate the Premises as a snack shop including
the sale of alcoholic bevrages meeting the requirements of a golf course
operation as reasonably determined by the Lessor, in conformance with standards
followed by the same or similar operations. Lessor and Lessee shall work
together to develop operational standards and parameters in order to meet mutual
goals and objectives. Lessor reserves the right to approve service standards
that insure that outings are accommodated. Operational coordination must be in
concert with the intentions of the Village's Director of Golf Operations who will
coordinate golf outings and banquets with Lessee.
2. Lawfulness: Lessee shall not conduct or permit any conduct on the
Premises and Adjacent Areas which is contrary to the laws of any governmental
authority.
3. Compliance: During the term of this 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 of Buffalo Grove liquor control
ordinances and statutes for operation on a municipally -owned golf facility.
4. Licenses: Lessee shall obtain a Village of Buffalo Grove business
license, Village of Buffalo Grove liquor license, a State of Illinois liquor
license and any and all applicable Federal licenses. In the event Lessee is
unable to obtain or retain any such licenses, this Lease may be null and void by
Lessor.
5. Hours of Operation: Notwithstanding the provisions of any state statute
or Village Ordinance, the hours of operation shall be approved in advance by the
Lessor and such approval shall not be unreasonably withheld. The hours of
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operation shall be established between the Lessor and Lessee based upon the best
judgement of Lessee and approved by Lessor and such approval will not be
unreasonably withheld. Lessor shall remain flexible to changes of hours of
operation based on seasonal considerations. However, any substantial change in
hours of service will require a thirty (30) day notice to Lessor prior to taking
effect..
6. Performance: The parties understand that Lessor has developed and
maintained the property and Premises for the use 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
operate the facility in conformance with the standards followed by a snack shop
dealing in the same or similar operation.
7. Access: Lessee shall allow the Lessor reasonable access, upon notice to
Lessee, to the 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 properties are basically golf course facilities and that nothing herein
contained shall interfere with the operation as such. Lessee shall have access
to parking lot and other parts of all facilities for making any necessary repairs
or maintenance.
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 or 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.
Section C. Rent and Other Compensation.
1. Rent: Beginning March 1, 2002 and on the lst of each month thereafter,
and payable monthly in arrears, Lessee shall pay as rent a sum equivalent to 40
of gross food, beverage and outing sales delivered at the Premises and Adjacent
Areas, excluding sales tax and service charges (defined as gratuities and other
fees charged over and above food and beverage sales, which would include but not
be limited to, comped meals /beverages, overrings, discounts, equipment charges,
etc.) to Lessor, for all food and beverage sales on the Premises regardless of
where such sales may be booked or reserved. Lessee shall submit monthly,
certified sales figures to Lessor along with an operating statement to support
the rent remittance which identifies service charges no later than one month (28-
31 days) after the end of the month so concluding. By means of example, rent due
the Lessor for March, 2002 will be due, with applicable reporting to support the
remittance, by May 1, 2002 and so on. Failure to remit rent by the due date
shall subject Lessee to a late penalty fee of 1.5% per month, or portion thereof,
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until rent is paid to Lessor.
2. Utilities: Lessor and Lessee shall share on a square footage basis the
cost of all utilities including electricity and gas for the clubhouse facility
only. All bills shall be in Lessor's name and Lessee shall pay same as
additional rent. Lessee shall pay Lessor within thirty (34) days after receipt
the invoiced pro -rated share of utilities. Lessor shall provide a record of
computations used in determining utility charges due. Lessee and Lessor shall
work together to maintain practices that will minimize the cost of utilities to
both parties of the Lease.
Additionally, Lessee will be invoiced monthly based on actual usage and
line /service related charges for any telephone services and Lessor will provide
a record of computations used in determining telephone charges due. Any
extensions added for the exclusive use of Lessee shall be added as an amendment
to this Lease.
Failure to remit utility invoices by the due date shall subject Lessee to
a late penalty fee of 1.5% per month, or portion thereof, until said invoices are
paid to Lessor. ®F /�%il2i�pii Ac/� (�/�y
3. Examination of Records: Lessor reserves the right to review the records
of the Lessee relating to the operation of the Premises. The records may be
reviewed by,,,,te or's uthorized Agent or representative(s). Lessor will
pledge to k4ep'su� confidential and not open to any public inspection
if not in violation or contrary to any laws.
Section D. Cleaning, Maintenance & Improvements:
1. Cleaning: Lessee shall maintain, clean and keep in good repair all
areas related to the snack shop within the Premises and adjacent areas where food
and beverage services will be provided.
Lessee shall maintain, clean and keep in good repair all kitchen and
beverage dispensing equipment and outside refuse disposal areas. Daily cleaning
shall be concluded prior to opening. Lessor shall be responsible for maintaining
and cleaning all other outside areas (including parking lots) along with those
portions of the clubhouse and adjacent areas committed to golf play. 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 take
corrective action within the time limits prescribed within such violation, then
Lessor may correct same and invoice Lessee for the costs to correct the
violation(s). Failure to comply with the terms of this Section will constitute
a condition of default under this Lease.
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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In addition, if Lessor should be required to repair any damage caused to
Premises that is a direct result of the Lessee's operations, Lessee will be
invoiced and pay for the cost to perform such repairs.
2. Maintenance: Maintenance, replacement, upkeep and disposal of equipment
and furnishings will be the obligation of the Lessee. Lessee shall be
responsible for any maintenance and repairs. Lessee shall maintain a record of
any and all maintenance performed on all equipment and furnishings that will be
available at all times to Lessor.
All equipment that is installed by the Lessee shall also be maintained and
repaired by Lessee. Lessor shall maintain all other areas in good repair
including, but not limited to, sewers, utilities, heating and air conditioning
systems.
3. Equi ent: Lessee shall own all equipment and furnishings needed to
operate food and beverage services at the Premises.
All expense of connection and installation of any equipment shall be borne
by Lessee. Upon termination of this Lease for any cause, the Lessee shall
reinstall any equipment that may have been removed 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 any new equipment, Lessee shall
have the option of either restoring the Premises to the same condition prior to
the installation of the new equipment or said equipment shall remain and shall
be the sole property of Lessor.
Lessee shall be responsible for any rental and maintenance expenses
incurred as a result of maintaining bar cart service upon the Premises and
Adjacent Areas.
4. Decorating and Capital Improvement: Decorating or new capital
improvements shall be done at Lessee's expense, unless waived, upon written
notice to and approval by the Lessor with the exception of those improvements set
forth in Section D, paragraph 5 below.
5. Outside Lighting: Any outside lighting of the Premises shall be done at
Lessor's sole discretion and at Lessor's cost. Any outside lighting of an
exterior sign shall be done at Lessee's cost unless waived or shared with the
Lessor.
6. Signs: Lessee may be permitted to display such exterior wall signs as
permitted by the Village. Lessee shall pay for the construction of any such
signs unless shared with the Lessor. At termination of this Lease, any such
signs shall become the Lessor's property.
7. Leasehold Improvements: Any improvements shall be property of Lessor.
8. Alterations: Lessee shall make no material changes, alterations or
additions in, on, or to the Premises without the prior written consent of the
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Lessor.
9. Coin Operated Amusement Machines & Tobacco Sales: Lessee may maintain
and have the proceeds of coin operated vending machines within the limits
permitted by Village Ordinance. Lessee shall obtain licenses on any machines so
permitted by Village Ordinance.
Lessee shall have the right to sell tobacco products through a vending
machine maintained by Lessee. Lessee shall obtain the required tobacco .licenses
and shall conform to Village Ordinances that govern the sale of tobacco products.
Any coin operated vending and tobacco vending machines will be kept in the
bar area only unless permission is granted by Lessor to install vending machines
outside, adjacent to the clubhouse.
Section E. Assignment of Lease:
1. Assignment: The Lessee shall not have the right to assign this Lease
without the Lessor's prior written consent. Consent shall be based on, but not
limited to, the following criterion: financial ability to perform, knowledge in
the business of operating food and bar facilities, ability to maintain service
levels required by Lessor that are in conformance with the terms and conditions
of this Lease. Lessee shall give Lessor one- hundred twenty (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 circumstance
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 [with the exception being the
failure to remit rent or utility reimbursements which should be corrected within
ten (10) days from written notice of same], the Lessor may terminate the Lease
and take possession of the Premises and equipment with the institution of
eviction proceedings and the exercise of due process of law. Each of the parties
hereto shall have the 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
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Premises and equipment and such equipment and furnishings in a clean, operating
and sanitary condition except for ordinary wear and tear.
2, Bankruptcy„ In the event that Lessee shall become bankrupt or shall
make a voluntary assignment for the benefit of creditors, on in the event that
a receiver is appointed, then, at the option of the Lessor on thirty (30) 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 this Lease or repair the Premises within ninety (90) days thereafter,
which may be extended due to circumstances brought upon by the extent of the
loss. No rent or utilities shall be due and owing from the date of the fire or
other casualty until the date the Premises is rendered tenantable. If Lessor
elects to repair, this Lease shall remain in effect provided such repairs are
completed in an expeditious manner. If Lessor shall not have repaired the
Premises within an agreed time, then Lessee may terminate this Lease. 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.
Section G. General Conditions:
1. Insurance: Lessee shall (during the term and any extension hereof)
maintain insurance acceptable to Lessor and such insurance shall be in the
following amounts:
(A) Worker's Compensation at the required statutory levels.
(B) Dram Shop ($1,000.,000) with Lessor named as an additional insured
therein.
(C) General Liability ($1,000,000 /$2,000,000 bodily injury and property
damage). Lessor shall be named as an additional insured as their
interest appears. This will not require Lessee to provide 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,
if any, of said "Waiver of Subrogation" endorsement on a pro -rated
basis.
Lessee will be responsible for providing its own insurance covering its equipment
and inventory. Evidence of such insurance shall be furnished to Lessor prior to
taking possession of the Premises. Lessee shall in addition to providing
certificates of insurance to Lessor 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, claims, losses, injury, damages, legal expenses, fees, and
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other costs that may arise from the operation of Premises and execution of this
Lease by the Lessee.
2. Sales on Golf Course Properties,: Lessee shall have the exclusive right
to provide food, beer, liquor and snacks on the golf course.
Lessee agrees to cooperate with Lessor to permit limited access to the
Premises for any booked golf outing that provides its own food service as long
as such food service is directly associated to the primary nature of the
sponsoring outing organization. Lessee's compensation for granting such access
shall be limited to sales receipts from the snack shop food and beverage sales
as well as from beverage carts.
Lessee may, upon fourteen (14) days written notice to Lessor's Director of
Golf Operations, be entitled to limited possession of the Premises and adjacent
facilities to the exclusion of the Lessor for the purpose of holding activities
related to the Lessee's business, which includes, but are not limited to,
banquets, parties and similar events. Lessee and Lessor shall coordinate the
Lessee's events so that the primary purpose for the Premises, that being the
continual access to the golf playing public, is not compromised. Such request
shall not require Lessor to cancel any events that were booked prior to such
request.
3. Gambling, Card Playing and Quasi- Gambling Activities: All forms of
gambling are prohibited. This includes all card playing, betting and other
wagering activities which are deemed by Lessor to be not of suitable character
and are prohibited from taking place within or upon the Premises.
4. Authorized Representative: The only authorized agent of the Lessor
shall be the Lessor's Village Manager unless so noted in this Lease. The
authorized agent of the Lessee shall be Gregory Lundgren or Phyllis Dewey.
6 Notices: All notices provided herein, shall be effective three (3) days
after mailing if mailed by certified mail with return receipt to the parties
hereto and immediately if served personally as follows:
LESSOR: Village of Buffalo Grove
50 Raupp Boulevard
Buffalo Grove, Illinois 60089
Attn: Village Manager
Regarding Use Notices:
Village of Buffalo Grove
48 Raupp Boulevard
Buffalo Grove, Illinois 60089
Attn: Director of Golf Operations
LESSEE: Progressive Management Services, LLC
u. dee Road {a dv
e 210
Buffalo Grove, Illinois 60089
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7. Litbility:. No personal liability shall attach to any person executing
this Lease.
8. Proprietary Interests: Lessee shall retain all rights to any business
names, concepts or other proprietary interests established during the term of
this Lease, and Lessor herein waives any claims to such interests.
IN WITNESS WHEREOF, the parties hereto have caused this Lease to be
executed as of the day and year first above written.
LESSOR:
Village of Buffalo Grove
Village President
ATTEST:
Vi�ere
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LESSEE:
Progressive Management Services, LLC
Presi en