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
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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
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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
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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.
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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.
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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.
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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.
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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:
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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"