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2013-24RESOLUTION 2013- 24 A RESOLUTION AUTHORIZING THE EXTENSION OF A LEASE BETWEEN THE VILLAGE OF BUFFALO GROVE AND TAP ROOM HOSPITALITY, 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 Buffalo Grove Golf Club. 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 a lease extension attached hereto as Exhibit "A" entitled "Lease Amendments Between the Village of Buffalo Grove and Tap Room Hospitality LLC." dated as of the 4th day of March, 2013. Section 2. Village staff is hereby directed to insure that this lease extension is implemented in order for full service to continue at the Buffalo Grove Golf Club through December 31, 2015. Section 3. Village Resolution No. 2013 -6 approved by the Village Board on March 4, 2013, is hereby repealed. AYES: 6 — Berman, Trilling, Sussman, Terson, Stein, Ottenheimer NAYES: 0 — None ABSENT: 0 — None 13. APPROVED: June 17 2013. tc, csiZ s-ict, rt VII-lage Clerk LEASE AMENDMENTS BETWEEN THE VILLAGE OF BUFFALO GROVE AND TAP ROOM HOSPITALITY, LLC. d /b /a VILLAGE BAR AND GRILL These Lease amendments are made and entered into this 4th day of March, 2013, by and between the Village of Buffalo Grove, a municipal corporation ( "Lessor "), and Tap Room Hospitality, LLC. d /b /a Village Bar and Grill an Illinois limited liability company ( "Lessee ") and hereby amend the Lease dated as of June 21, 2004: Section A. Purpose of Lease: 1. Lease: Lessor hereby leases to Lessee the exclusive, subject to the restrictions noted in Section G.2. and Addendum "A ", rights to operate the restaurant facilities and lounge located in the Buffalo Grove Golf Course Club House at 48 Raupp Boulevard, Buffalo Grove, Illinois. The leased areas are further depicted in part on Exhibit "A" attached hereto and may hereinafter be referred to as the "Premises" and are to be used and occupied by Lessee as restaurant, bar and lounge (sale of liquor included) for the term to continue through December 31, 2015. An extension to this Lease may be granted upon terms mutually acceptable to both parties to this Lease for a term to be determined, unless otherwise terminated as hereinafter set forth. Premises will also include areas as further depicted on Exhibit" A" as leased area and other areas as included from time to time by amendment hereto. Additionally, the Lessee shall be given access to areas adjacent to the club house facilities that will include but not be limited to patios, event tents and golf course grounds for the purpose of utilizing beverage carts. Section B. Terms and Conditions: 9. Security Deposit: Lessee shall post a performance bond with the Lessor, in the amount of $5,000 for the faithful performance of this Lease. The performance bond shall be in a form and manner acceptable to the Lessor. If for any reason Lessor shall be required to draw from said security deposit, Lessee shall replenish within thirty (30) days said draw to initial balance of deposit. In addition, Lessee agrees that said performance bond shall be drawn by the Lessor if Lessee ceases operations at any time, for whatever reason, prior to December 31, 2015, not withstanding paragraph F.1. 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. Lessee shall have an option of terminating this Lease by providing written notice to Lessor no later than November 1, 2013 and on each November 1st thereafter, effective the following December 31st. Reasons for termination shall be demonstrated to and approved by the Lessor prior to any such termination. Lessor shall have the option of terminating this Lease by providing ninety (90) days written notice to Lessee. 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 or furnishings that cannot be removed) and that equipment and furnishings noted in Section D, Paragraph 3 that Lessor has exercised its right of first refusal on in a clean, operating and sanitary condition except for ordinary wear and tear. Section G. General Conditions: 4. Authorized Representative /General Manager: 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 Jim Leo. Lessee affirms that the on -site General Manager, at the time of execution of this Lease, will be Brett Gaylord. It is further affirmed that Mr. Gaylord is a 50% owner in TAP ROOM HOSPITALITY, LLC. Should there be a change in the on -site General Manager, such change shall be approved by Lessee, whose approval shall not unreasonably be withheld. 5 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: TAP ROOM HOSPITALITY, LLC. 48 Raupp Boulevard Buffalo Grove, Illinois 60089 Attn: Jim Leo 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 3 LESSEE: TAP ROOM HOSPITALITY, LLC. d /b /a Village Bar and Gri President ADDENDUM "A" OPERATIONAL REQUIREMENTS BETWEEN THE VILLAGE OF BUFFALO GROVE AND TAP ROOM HOSPITALITY, LLC. d /b /a VILLAGE BAR & GRILL • The Village will reserve the right to approve service standards that insure that the golf customer has the highest priority at both facilities. On an annual basis, lessor and lessee shall review standards and guidelines to make certain that all areas of service and maintenance are addressed, remain relevant and remain appropriate operationally. • Hours of operations need to be approved in advance by Village. Such approval will not be unreasonably withheld although they need to be developed around reasonable service standards and expectations. • Rent will remain at 5% of gross food, beverage and banquet sales delivered at the Premises as defined in Section C.I. Rent shall be due on the first of each month, in arrears, no later than one month (28 -31 days) after the end of the month so concluded. By means of example, July 2004 rent will be due by September 1, 2004 and so forth. Failure to remit rent by the due date shall subject Lessee to a late penalty fee equal to the equivalent of 1.5% per month, or portion thereof, until rent is paid to Lessor. • Utilities will be billed per the Exhibit to the Lease. They will be due no later than 30 days from date of billing. Utilities billed will include gas, electric, water and phone. Failure to remit utility invoices by the due date shall subject Lessee to a late penalty fee equal to the equivalent of 1.5% per month, or portion thereof, until invoices are paid to Lessor. • The Village continues to reserve the right to examine records to support the monthly rent. However, monthly, certified sales figures need to be submitted to support the rent payments made. If requested by the Lessor, the Lessee shall submit a copy of Forms ST -1 and ST -2 as submitted to the Illinois Department of Revenue to remit sales taxes due to the Department. • Lessee shall maintain, clean and keep in good repair all areas related to the restaurant and bar area, including, but not limited to, washrooms. There must be coordination with the Director of Golf Operations in order to develop an acceptable level of service and standards for the cleaning of washroom areas. Kitchen and bar equipment, walk -in coolers and freezers, refuse and storage areas must be maintained and cleaned in a manner that is acceptable to the Director of Golf Operations and Health Officer. Lessee shall maintain a posted ledger in a form acceptable to the Health Officer denoting periodic cleaning to public areas such as the restaurant, bar and washrooms. • Village, as Lessor, shall be responsible for maintaining and cleaning all outside areas, including parking lots, along with those portions of the clubhouse and adjacent areas committed to golf play. • Lessee shall maintain and repair equipment as required in Section D.2 of the Lease. A record of all maintenance will be kept and made available at all times to the Village. This will include preventative maintenance to major kitchen and bar systems, the determination of, which will be coordinated with the Village's Director of Golf Operations. • It is acknowledged that any equipment owned by the Village is not to be removed without the approval of the Director of Golf. In addition, charges to community or outing /banquet groups to use Village -owned equipment shall not be made unless agreed to by the Director of Golf Operations. • The Lessee will work with the Director of Golf Operations regarding the Lake -Cook Road signage. The primary intent of that sign is to identify the Buffalo Grove Golf Club. Lessee may display exterior wall signage as permitted by Lessor. • All coin operated amusement devices will be maintained only within the bar area. The vending and use of tobacco products will conform to Village regulations. A jukebox may be maintained within the dining area of the Premises and is the only coin - operated amusement device to be permitted with the dining area. Updated certificates of insurance as well as the performance bond required to be posted, as a security deposit needs to be submitted as a condition of the execution of the Lease. Operational coordination of this Lease will be made with the Village's Director of Golf Operations. Financial obligations under this Lease will be with the Village's Director of Finance and General Services. • Lessee will provide to Village's Director of Golf Operations any and all reports that are the result of inspections undertaken by Lessee on a periodic basis of the Premises. In addition to any reports, Lessee shall provide what remedial action will be undertaken to correct deficiencies identified with a schedule for completion of such deficiencies.