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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 r � • 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 2 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, OF AMoVMT 'buC 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. 4 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 5 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 C 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 7 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 8 0 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 7 LESSEE: Progressive Management Services, LLC Presi en