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1999-210 . 1 0 RESOLUTION NO. 99- 21 A RESOLUTION AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT FOR FOOD SERVICE AT THE BUFFALO GROVE COMMUTER RAIL STATION WHEREAS, the Village of Buffalo Grove is a Home Rule Unit pursuant to the Illinois State Constitution of 1970; and WHEREAS, it has previously been determined that it is in the best interest of the Village to lease food and beverage services at the Buffalo Grove Metra Commuter Rail Station; and WHEREAS, Nicole Riedel, the current lessee of Java Junction desires to sell her business, which has been purchased by Jerry Reinert contingent upon the approval of a Lease Agreement which is attached to this Resolution; and WHEREAS, it has been determined that Jerry Reinert will continue to serve the best interests of the Village in the provision of food and beverage services at the Buffalo Grove Metra Commuter Rail Station. 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 Village Clerk are hereby authorized to execute the attached lease entitled "Lease Agreement for Food Service, Buffalo Grove Train Station" dated as of the 3rd day of May, 1999. SECTION 2. Village staff is hereby directed to insure that this lease is implemented beginning May 3, 1999 and that service standards are maintained as a result of the sale transaction. AYES: 6i Marienthal, Reid, Braiman, Glover, Berman, President Hartstein NAYES: 0 - None ABSENT: 1 - Hendricks PASSED: May 3 ,1999. APPROVED: May 3 ,1999. L Village President ATTEST: VilYa4e Clerk 0 1 0 LEASE AGREEMENT FOR FOOD SERVICE BUFFALO GROVE TRAIN STATION This lease is entered into as of the 3rd day of May, 1999, by and between the Village of Buffalo Grove, a Municipal Corporation ( "Lessor "), and Jerry Reinert ( "Lessee ") d /b /a Java Junction, a sole proprietorship. PRELIMINARY STATEMENT WHEREAS, Lessor and the Commuter Rail Division (CRD) of the Regional Transportation Authority, a division of an Illinois Municipal Corporation, have entered into a Commuter Station Development Agreement dated May 24, 1995, and a Lease for Location of Fixed Facilities for Public Transportation On Properties of Wisconsin Central Ltd., dated May 20, 1996 which instruments govern the construction, operation and maintenance of improvements to Village property for the purpose of providing commuter rail station facilities and the sublease,of certain portions of the property from the CRD for the same purposes ( "Underlying Agreements "); and, WHEREAS, Lessor desires to lease a portion of the commuter rail station consisting of approximately seventy -six (76) square feet as shown on Exhibit A, attached hereto and made a part hereof ( "Premises ") to the Lessee, and Lessee desires to lease Premises from the Lessor, on the terms and conditions set forth in this Agreement. NOW, THEREFORE, IN CONSIDERATION of the rent and the covenants below, the Lessor and Lessee do hereby agree as follows: SECTION I. - Purpose and Interests A. Purpose. Lessee shall occupy and use the Premises for the following purposes only: food concession sales, coffee, juice, tea and soft drink sales; newspaper services; and such other items as may be approved by the Lessor in writing. B. Underlying Agreements. Lessee recognizes that Lessor's interest in the Premises is that of a tenant except as expressly provided herein. This Agreement is subject and subordinate to and controlled by the terms, covenants and conditions of the Underlying Agreements. Lessee and Lessor agree to observe and perform all the obligations imposed on Lessor under the Underlying Agreements with respect to the Premises except for the payment of rent, Lessor's contributions for improvements, and those provisions of the Underlying Agreements which do not apply to this Agreement. Lessee and Lessor shall neither do nor permit anything to be done which would cause the Underlying Agreements to be terminated or forfeited by reason of any right of termination or forfeiture reserved or vested in the CRD under the Underlying Agreements, or which would cause the Lessor to be in default under the Underlying Agreements. Lessee shall indemnify and hold Lessor harmless from and against all claims, costs or expenses of any kind whatsoever, including attorneys' fees, by reason of any breach or default on the part of the Lessee which 1 0 1 1 0 would cause the Underlying Agreements to be terminated or forfeited or caused the Lessor to be in default thereunder. Lessor shall indemnify and hold Lessee harmless from and against all claims, costs or expenses or any kind whatsoever, including attorneys' fees, by reason of any breach or default on the part of the Lessor which cause the Underlying Agreements to be terminated or forfeited or cause the Lessee to be in default thereunder. SECTION II - Terms and Conditions A. Term. Lessor hereby leases to Lessee the exclusive rights to operate a food service operation located at the Buffalo Grove Commuter Rail Station Depot at 825 Commerce Ct., Buffalo Grove, Illinois. The Premises is depicted on Exhibit A attached hereto and is to be used and occupied by Lessee for the term commencing May 3, 1999 through August 31, 2002 with options to extend for up to two (2) additional years upon terms mutually acceptable to both parties to the lease unless otherwise terminated as hereinafter set forth with a final date of this Agreement to be through August 31, 2004. Additional two (2) year option periods may be granted by Lessee upon terms mutually acceptable to both parties. During each weekday of the term, Lessee shall be open for business from 5:30 a.m. to 8:30 a.m.., or as otherwise agreed upon in writing by the parties. B. Extension of Agreement. The Lessee shall have the option and right of first refusal to extend this Agreement upon such terms and conditions as are mutually agreed upon. The right to extend such Lease shall be considered, provided that the Lessee is not presently in default under any of its terms, conditions and obligations under this Agreement. Lessee must give written notice of such election to exercise option(s) to Lessor at least sixty (60) days prior to the expiration of the term herein provided. C. Lawfulness. Lessee shall not conduct or permit any conduct on the demised Premises which is contrary to the laws of any governmental authority. D. Compliance. During the term of this Agreement, Lessee shall comply with all Federal, State, County and Village statutes and ordinances. E. Licenses. Lessee shall obtain a Village of Buffalo Grove business license and any and all applicable State or Federal licenses prior to opening for sales to the public. In the event Lessee is unable to obtain or retain any such licenses, then this Lease shall be null and void. F. Si s. Lessee may be permitted to display signs as permitted by the Village. Lessor shall pay for the construction of any such signs unless shared with the Lessee as part of Leasehold Improvements. At 2 termination of this Lease, any such signs shall become the Lessor's property. G. Tobacco and Liquor Sales. Lessee shall have the right to sell tobacco products over the counter but not through a vending machine. Lessee shall obtain the required license and shall conform to Village ordinances. The sale of alcoholic beverages is strictly prohibited H. 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. I. Right of Entry. Lessor shall have the right to enter the Premises upon reasonable notice to Lessee. J. Exclusive Rights to Sales. As long as Lessee performs all of the Lessee's obligations under this Agreement, Lessee shall have peaceful and quiet enjoyment of the Premises for the term of the Lease or any extensions entered into as a result of exercising an extension option. Lessor agrees that its own or its leased adjacent properties related to commuter rail service shall not be used by any other vendors selling goods similar to the Lessee's products. SECTION III - Compensation A. Rent. Lessee agrees to pay Lessor, at the address provided in Section VII B. of this Agreement, the following rent: Beginning May 4, 1999 and payable monthly in arrears, Lessee shall pay as rent a sum equivalent to 5% of gross food and beverage sales, excluding sales tax and service charges (defined as gratuities and other fees charged over and above food and beverage sales) to Lessor, for all food and beverage sales on the Premises and surrounding areas. Lessee shall submit monthly, certified computer generated sales figures to Lessor along with an operating statement to support the remittance which identifies service charges. Monthly installments of rent shall be payable 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 May, 1999 will be due, with applicable reporting to support the remittance, by July 1, 1999 and so on. Lessee shall maintain true, accurate and complete books and records of its operations at the Premises and retain the books and records for each year for not less than three (3) years thereafter. Such books and records shall be available for inspection by Lessor or its agents or representatives during business hours upon reasonable prior notice. 3 0 1 . 0 All installments of rent if not paid by the 1st day of the appropriate month as noted above shall bear interest from the date due to the date paid at the rate of eighteen percent (18 %) per annum, or at the maximum legal rate of interest, whichever is lower. B. Security Devosit. At the option of the Lessor, Lessee shall pay to Lessor a refundable, cash security deposit which shall be held in an interest- bearing account in the amount of $500.00 for the faithful performance of this lease. Failure to pay such a security deposit shall be considered a condition of default under the Agreement. The security deposit shall be maintained in the event Lessee defaults in respect to any of the terms, provisions and conditions of this Agreement including but not limited to the payment of rent. Lessor may use, apply or retain the whole or any part of the security so deposited to the extent required for the payment of any rent or any other sum to which the Lessee is in default. Within forty -five (45) days of the termination of this Agreement, and provided Lessee is not in default, Lessor shall return to the Lessee such amounts that remain as the security deposit at the time of termination. SECTION IV - Condition of Premise A. Condition of Premises. Lessee shall maintain, clean and keep in good repair all areas related to the food concession and vending areas within the depot and adjacent areas where food and beverage will be provided from time to time. Lessee agrees to provide general cleanup and maintenance immediately adjacent to the concession area during its hours of operation by cleaning up coffee spills and other spills relating to the operation of the Premises. Lessee shall notify the Lessor's Superintendent of Public Works if the washrooms or areas outside the Premises need cleaning or maintenance prior to the Lessor's regular maintenance schedule. This would include such areas as the platform, parking lot, parking or platform lighting, or the grounds around the retention basin. Lessee shall accept the Premises in its existing condition on the commencement date and Lessee taking possession of the Premises shall be conclusive evidence that the Premises were then in good order, repair and satisfactory condition. No promise of Lessor to alter, remodel, improve, repair, decorate or clean the Premises or any part thereof and no representation respecting the condition of the Premises has been made to Lessee by Lessor. Lessee agrees to vacate the Premises at the expiration of this Agreement and Lessee shall leave the Premises in the same condition as at the commencement date, ordinary wear and tear and loss by fire or other casualty excepted. Any improvements and alterations approved by the Lessor shall not be of a permanent nature and shall be removed by the Lessee unless otherwise mutually agreed upon by the parties. 2 B. Decorating. Lessee will, at its own cost and expense, make any necessary alterations required; however, no alterations shall be made without the prior written consent of the Lessor. Lessee shall make all repairs necessary to keep the Premises in good condition and repair. Repairs to the Premises necessitated by ordinary wear and tear, by storm, fire, wind or other casualties shall be the sole responsibility of Lessee. SECTION V - Termination & Assignment A. Termination. l). In the event of any default in the terms hereof and if the same are not corrected within thirty (30) days of written notice [with the exception being the failure to remit rent which should be corrected within five (5) days from written notice of same), the Lessor may terminate the Agreement and take possession of the Premises, improvements 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. 2). In the event that Lessor shall desire to regain possession of the Premises for any reason, Lessor shall have the option of so doing upon sixty(60) day written notice to Lessee. B. Bankruptcy. In the event that Lessee shall become bankrupt or shall make a voluntary assignment for the benefit of creditors, or in the event that a receiver is appointed, then, at the option of the Lessor on thirty (30) days written notice, this Agreement may be terminated. C. 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 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 Agreement. If this Agreement 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. D. Assignment. The Lessee shall not have the right to assign this Agreement 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 comparable food facilities, ability to maintain service levels required by Lessor that are in conformance with the terms and conditions of this Agreement. Lessee shall give Lessor one - hundred twenty (120) days notice prior to any consideration of assignment. 5 In the event of any such assignment of this Agreement, the Lessee shall be released from any and all liability arising or accruing under this Agreement 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 Agreement 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. E. Rail Services. CRD and Lessor make no warranties or representations expressed or implied, as to continued rail service to the Premises. If CRD terminates commuter rail service, this lease shall likewise terminate. SECTION VI - Insurance and Indemnification A. Insurance. Lessee shall (during the term and any extension(s) 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. 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. C. 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 will be responsible for providing its own insurance covering its equipment and inventory. Evidence of such insurance shall be furnished to Lessor prior to Lessee 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 other costs that may arise from the operation of Premises and execution of this Lease by the Lessee. B. Indemnification. Lessee agrees to indemnify and hold harmless Lessor and CRD and defend from all claims, demands, liabilities, judgments, costs and expenses, including attorneys' fees, arising or growing out of loss or damage to property and all injury to or death of any persons which is in, upon or about any part of the Premises, whenever such loss or damage to the property or injury or death is caused by Lessee's negligence or arises from Lessee's operations pursuant to this Agreement. G SECTION VII - General Conditions A. Authorized Representative. The only authorized agent of the Lessor shall be the Lessor's Village Manager or designee. The authorized agent of the Lessee shall be Jerry Reinert. B. Notices. All notices provided herein, to be effective upon receipt, shall be served personally or made by certified mail with return receipt to the parties hereto as follows: Lessor: Village of Buffalo Grove 50 Raupp Boulevard Buffalo Grove, IL 60089 Attn: Village Manager Lessee: Jerry Reinert 39 Golfview Drive Northlake, Illinois 60164 C. Entire Agreement. All the representations and obligations of the parties, if any, are contained herein. No modifications, waiver, or amendment of this Agreement, or any of its terms, shall be binding upon Lessor unless such are in writing and signed by a duly authorized official of the Lessor. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of this day and year first above written. LESSOR: Village of Buffalo Grove Vi age President ATTEST: 7 LESSEE: 3 mr� Drawn By: Re Iwd: I TITLE: X Jack Weyrauch Date: 4/21/99 1 TETRA DEFOT - LEASED ,A REA scale: 3/16" . 1' - O"