R91-197RESOLUTION NO. R91-/~
A RESOLUTION OF THE CITY COMMISSION OF
THE CITY OF BOYNTON BEACH, FLORIDA,
AUTHORIZING AND DIRECTING THE CITY
ATTORNEY TO PREPARE AN ADDENDUM TO THE
LEASE AGREEMENT BETWEEN THE CITY OF
BOYNTON BEACH AND JOE WILLISON, WHICH
LEASE AGREEMENT WAS DATED APRIL 21,
1987, FOR THE PURPOSE OF ADJUSTING THE
RENT PAYMENT SCHEDULE; DIRECTING THE
MAYOR AND CITY CLERK TO EXECUTE THE
SAME; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City Commission of the City of Boynton
leach, upon the recommendation Of its Recreation Department
staff, has determined it to be in the best interest of the
citizens and residents of the City of Boynton Beach to
execute an addendum to the Lease Agreement between the City
of Boynton Beach and Joe Willison, which original Agreement
was dated April 21t 1987, for the purpose of adjusting the
rent payment schedule;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION
OF THE CITY OF BOYNTON BEACH, FLORIDA THAT:
Section 1. The City Attorney is hereby directed to
prepare an addendum to the Lease Agreement between the City
of Boynton Beach and Joe Willison, for the purpose of
adjusting the rent payment schedule, according to the
recommendation of the City's Recreation Department; and
Section 2. The Mayor and City Clerk are hereby
authorized and directed to execute the said Addendum to the
Lease Agreement between the City of Boynton Beach, Florida
and Joe Willison.
Section 2. This Resolution shall take effect
immediately upon passage.
PASSED AND ADOPTED this J day of December, 1991.
ATTEST:
Cit~--uTerk
(Cor_Do~ate Seal)
CITY OF BOYNTON BEACH, FLORIDA
ADDENDUM
THIS is the First Addendum to that certain Lease
Agreement between the City of ~oynton Beach, Florida (City)
and Mr. Joe Willison, (Concessionaire) said Lease Agreement
being dated April 21 1987.
1 The current~ rental payments shall be reduced to
$300.00 per month retroactiv~ito Ma~ 1990 to October 31,
1991.
2. Effective November 1, 1991, through the expiration
date. of the Lease, rent Shall be as follows:
income,
$5,000.00. In addition to the percentage rent
$!00.00 ~er moath to be
app ) arrearage. Payments
.are due. on or before the lOth day of each month.
DATED:
Witness
Witness
ATTEST:
Suzanne Kruse, City Clerk
Witness
Witness
CITY OF BOYNTON BEACH, FLORIDA
BY:
Arline Weiner, Mayor
Joe Willison
STATE OF FLORIDA
COUNTY OF PALM BEACH
before an
~WEINE-R,
ton
the!~ ~oU~ty and
S ,
· ~'~ bites:
to
STATE OF FLORIDA )
)
COUNTY OF PALM BEACH )
I HEREBY CERTIFY that on this day, before me, an
officer duly authorized in the State and County aforesaid to
take acknowledgements, personally appeared JOE WILLISON,
and that he acknowledged that he executed the same.
WITNESS my hand and official seal
State last aforesaid this day of
1991.
in the County and
APPROVED AS TO FORM:
Notary Public
My Commission Expires:
City Attorney
Adden. Rec
11/25/91
RECREATION & PARK DEPARTMENT MEMORANDUM NO.
91-478
TO: J. ~Cott Miller, City Manager
FROM: Charles C. Frederick, Director of Recreation & Parks ~ ~
DATE: November 12, 1991
SUBJECT: Amendment~oo Lease .Conditions and Rental ~ayments; Bait
~hop at Boat Club Park
Attac~ed is a summary of problems concerning tb~ current lease
~nd rental pa!aments fo~ the Bait Shop Concession at Boat Club
ark ~d a recommendation to resolve the issue. I have also
attached the current Bait Shop lease agreement. I request that
this be placed on the Commission agenda for consideration.
CCF:cm
Attachments
xc: Jim Cherof
ANALYSIS
Based on the physical size of the bait shop, limited merchandise, and
volume of potential customers, it seems apparent that the rental~aymentswere
~ructured _~o ~igh. This in concert with the current economic conditions has
compounded the problem.
Comparing this lease agreement to our public beach concession lease
agreement further reveals the problem.
, -- ' ' ', BAITSHOP ~
,,PUBLIC~BE~CH ~ BEACH,CON~ESSION~:, BOAT~CLUB PARK~: I MON'f~LY,, I
1987-88 367,697
1988-89 369,732
1989-90 324,207
1990-91 294,535
1991-92 ' Not Complete
$250
$275
$300
$325
$350
$7,789
70,290
67,570
61,143
Not Complete
$400
$450
$500
$550
$600
A review of Mr. Willison's tax returns for the business for the past
three (3) years reveals a total net income of $844 for 1988; $268 for 1989;
and, $328 for 1990.
A review of monthly business statements for January 1991 through
September 1991 (9 months) reveals a total net income of $130.14. If rent due
and unpaid is calculated into these months, the business is running a $6,000
net loss for these nine (9) months~
Based on the current rental schedule, the lessee is behind in payments
totalling $7,600 for the period May 1, 1990 through October 31, 1991.
RECOMMENDATION
The City has the option to terminate the contract now and/or not renew
the lease in 1992. This could result in difficulties in collecting the
current debt. Based on the past business history of the operation, it may be
very difficult to secure another lessee without a reduced rental plan. As
Mr. Willison has expressed sincere interest to keep the business and make his
debt good, it seems appropriate to work with him based on the following
recommendations which he finds acceptable:
CITY OF BOYNTON BEACH
LEASE AGREEMENT
This lease agreement made and entered into by ana between the City
of Boynton Beach, Florida, a municipa} corporation, hereinafter
referred tO as the "CITY", and Mr. Joe WilliSon
hereinafter referred to as the "CONCESSIONAIRE".
1. Contract Objectives
The.C~TY-~shal,1 gda~t tothe CONCESSIONAIRE, as an independent
c~Q~ractor~'the ~xclusi~ve right and the CONCESSIONAIRE shall
a66~pt from]-~e C~the e~clustve right to operate within the
designated Ci~ty ~facil~ity:
A. Concessions in order to provide primarily fishing
Supplies,,baitq gear, tackle, food. and beverages for the
daiJy use Dy pat~rons and visitors ~o the Boynton Beach
Mudici~al,Boat ClOd Park~
B. The~ONCE~SI~R~ ~grees to sel¥on the concession site
iig~a~o~o~eh~ ~ait, tackle, o~her fishing supplies,
aear.J',~ooUa6d~be~e~ages:for ~he:~e of patrons and
~iSi~o~S ~tOi{~e Bby~'ton Beach Muni~¢ipal Boat Club Park.
2. Term of ContraCt
This ]eas~ agreement shall be in force for a period of
five (5} years from:the date of signing unless sooner
~erm~nated as otherwise provided ~n Sect~on7_~mm~T~erm~nat~o ,
~itha6 qption to renew for a period of fiveT'{5~yye~r{s) if
mutually,agreed upon by both the CITY and
CONCESSIONAIRE and Subject to any agreed upon updated
conditions in this lease agreement.
Compensation
A. The CONCESSIONAIRE agrees to pay the CITY a sum of
thirty thousand dollars {$30,000.90) for the period of
~ime indica~ted in Sectio~ 2 Term Of Contract (excluding
renewal clause} to be paid in monthly increments of
~see attached schedule] ·
B. In ~dd~ti:o~, the C?CESSIONAIRE agrees to pay the CITY
twel~e~p~rdent (12%) of the amoun!t of gross sales and
recqip~S ii~ ~xcess of one hundred thousand dollars
i($i~;000.,0~)' based'on an annual computation. Gross sales
~d reCet~s shall be defined as sales for cash or on cre-
dit; ]es$.~ppl!cabl:e sales tax and added gratuities for
ail 'di~eEt~and indirect sales by the CONCESSIONAIRE.
Ris~ Management
A. The~CONCES$IO~AIRE agrees to indemnify and save harmless
ithe CITYif~em all SUitS, claims, damages, and actions of
~anygind~io~,nature arising directly or indirectly on the
part:bf~h~ cQNCESSIONAIRE, its agents, servants,
;~lo~eeg; coEtractors and suppliers, arising out of its
opera~ioh~under'this lease agreement.
B. The CONCESSIONAIRE shall secure'gnd maintain' for the
duratiOn~of this lease agreement the following insurance
coverage.
1~ Comprehensive General Liability in ~he minimum amounts
or'three hundred thousand dollars {$300,000) per person
and five hundred thousand dollars ($500,000) per
occurrence.
2. Property Damage to the full insurable value of all
property involved in the lease agreement.
-1-
Manager. All such improvements shall meet all applicable
codes and shall be of a temporary nature, and shall be
paid for, erected and removed by the CONCESSIONAIRE at the
termination of this lease ag~ceement.
the
C
provided, both
con-
to the satisfaction
scussed wi 11
of
the
)at
on, as'to addi-
them-
ent to
days).
- The
licenses
the drink, fer-
s, but it is
no represen-
be granted to
)tion
pro-
lin~nediate
herebyexpressly
nsation for any and all
deficiency, or
drainage or heating
wires leading to the
~ny loss resulting from
current which may
use, or for any loss
e or claim
tion, or termina-
any event scheduled
the concessi'on site;
releases and
and all
s arising from
IONAIRE shall and
l~ability for the
: or any
IONAIRE or
theft, ware, r, storm,
causes whatsoever.
arrange
it at the concession
spch deliveries do
interference with the
Of the site.
lng materials,
bY the CONCESSIONAIRE
the City Manager.
-3-
CONCESSIONAIRE agrees to establish and maintain a system
of boo~keeping and fiscal year accounting satisfactory to
the CITY'S auditor and to give the CITY access during
reasonable hours to such books and records. The
CONCESSIONAIRE agrees that it will keep and preserve for
at least three {3} years all sales slips, cash register
tapes, sales books, cash deposit receipts, bank books, or
duplicate deposit slips, and other evidence of gross
receipts and business transacted for such period. The
CITY'S auditor and the City Manager and their respective
authorized representatives shall, have the right at any
time and from time to time to audit all of the books of
account, bank statements, returns,
and files of the to gross
ONAIRE
on
at the corporate head-
shall make or
the
to
d be found
the
of such
made with
after the
been
a~d
7. Termination
Ae
This lease agreement may be terminated by either party
thirty {30) days after delivery of written notice of such
termination and reason{s) for lease termination.
This lease agreement may, at the option of the CITY, be
terminated iF~nediately if the CONCESSIONAIRE shall become
insolvent or bankrupt, make anassignment for the benefit
of creditors or be convicted of a crime or any other
similar gross mispriority.
C. A termination of the lease agreement, for reasons other
than expiration of the term, shall be effected as follows:
If conditions are present which are considered by
either party to be cause for termination, written
notice shall be provided to the other party, and a
sufficient period of time shall be given to correct
the conditions.
If the conditions are not corrected within a reasonable
period of time, then this leaseagreement may be
terminated for such conditions by giving thirty {30)
days written notice.
In the event the CONCESSIONAIRE fails to pay the CITY
charges orfees strictly in accordance with the terms
of this lease agreement, the CITY may cancel and
terminate this lease agreement at any time upon five {5)
day's written notice to the CONCESSIONAIRE.
~f.~his~ t~ase~agreemenb is cancet-ted,or-bermi~ated by
the CITY, or if the CITY shall discontinue its opera-
tions, the CONCESSIONAIRE shall pay to the CITY all
sums then due from the CONCESSIONAIRE to the CITY.
The acceptance of monies due the CITY for any period or
periods after a default of any of the terms, convenants,
or conditions of this lease agreement shall not be deemed
a waiver on the part of the CITY,
E. No waiver or default by the CITY of any of the terms,
-5-
BOAT CLUB PARK
PAYMENT SCHEDULE
May 1, 1987 toApril 30, 1988~ $400.00 pe~r Month
May 1, 1988 to April 30, 1989 ~: $450.O0,peffMonth
$4,800.00
5,400.00
May 1, 1989 to April 30, 1990 $500,O0)per-Month
6,000.00
May 1, 1990 to April 30, 1991 $550.QO~per Month
6,600.00
May 1, 1991 to April 30, 1992 $600.O0. per Month
7,200.00
$30,000.00
THIS ks the First,Addendum to that certain Lease
the City of Boynton Beach, Fior£da (City)
~itli$on~ (Concessionaire) said Lease Agreement
being dated April 2! 987.
1. The current rental payments.shall be reduced to
$300.00 per month retroactive tofMay 1, 1990 to.October
1991.
2. Effective November 1, 1991, through the expiration
date of the Lease, rent shalI be as follows:
5% of the first $5,000.00 of monthly gross income,
DATED:
are due on or before the 10th day'of each month.
~tness ~
CITY OF BOYNTON BEACH, FLORIbA
arl~he Weiner, ~or
ATTE ST:
'Suz~ne Kruse, C~i~y Clerk
Witness
Witness
STATE OF FLORIDA )
)
COUNTY OF PALM BEACH )
offi(
ta'ke
HEREBY CERTIFY that on this day,
authorized in the SI
before me, an
1991
STATE OF FLORIDA
COUNTY OF PALM BEACH
)
)
)
I HEREBY CERTIFY that on this day, before me, an
officer duly authorized in the and County aforesaid to
take acknowledgements, personall ,
and that he acknowledged that same.'
WITNESS my hand and official seal
State last aforesaid this day of
1991.
in ~he County and
APPROVED AS TO FORM:
Notary Public
My Commission Expires:
City Attorney
Adden. Rec
11/25/91