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R23-064 1 RESOLUTION NO. R23-064 2 3 4 A RESOLUTION OF THE CITY OF BOYNTON BEACH, FLORIDA, 5 APPROVING AND AUTHORIZING THE PROPER CITY OFFICIALS TO 6 EXECUTE AN INTERLOCAL AGREEMENT BETWEEN THE CITY OF 7 BOYNTON BEACH AND THE BOYNTON BEACH COMMUNITY 8 REDEVELOPMENT AGENCY FOR THE USE OF UNIT 8 AT THE HEART OF 9 BOYNTON SHOPS FOR THE NEIGHBORHOOD OFFICER POLICING (NOP) 10 PROGRAM AND THE ASSOCIATED LEASE AGREEMENT WITH WELLS 11 LANDING APARTMENTS, LLC FOR UNIT 8; AND PROVIDING AN 12 EFFECTIVE DATE. 13 14 WHEREAS, at the October 12, 2021, CRA Board meeting, the Board approved the 15 relocation of the Neighborhood Officer Policing (NOP) Program office from the Ocean Breeze 16 East Apartments to the E. MLK Jr. Boulevard Commercial portion of the mixed-use project; and 17 WHEREAS, as defined in the Development Agreement approved by the CRA, Unit 8 is a 18 1,055 square foot rent-free space dedicated to the CRA's NOP Program and per section 5.b.ii of 19 the Agreement, the Neighborhood Officer Program Office ("NOP Office") shall be completed 20 and in move-in ready condition within 18 months of the February 8, 2022 effective date (or 21 August 8, 2023); and 22 WHEREAS, once the build-out is complete,the NOP will lease the space from CMC since 23 the lease term will survive the CRA sunset in 2044; and 24 WHEREAS, an Interlocal Agreement is required to allow the City to lease the rent- free 25 space from CMC for the NOP Program and the CRA to reimburse CMC for the buildout of the 26 NOP Office; and 27 WHEREAS,the City Commission of the City of Boynton Beach upon recommendation of 28 staff, deems it to be in the best interest of the citizens and residents of the City of Boynton Beach 29 to approve and authorize the proper City officials to execute an Interlocal Agreement between 30 the City of Boynton Beach and the Boynton Beach Community Redevelopment Agency for the 31 Use of Unit 8 at The Heart of Boynton Shops for the Neighborhood Officer Policing (NOP) 32 Program and the associated Lease Agreement with Wells Landing Apartments, LLC for Unit 8. 33 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF 34 BOYNTON BEACH, FLORIDA, THAT: S:\CA\RESO\Agreements\ILA with CRA and Lease for NOP-Reso.docx 35 Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as 36 being true and correct and are hereby made a specific part of this Resolution upon adoption 37 hereof. 38 Section 2. The City Commission of the City of Boynton Beach hereby approves and 39 authorizes the proper City officials to execute an Interlocal Agreement between the City of 40 Boynton Beach and the Boynton Beach Community Redevelopment Agency for the Use of Unit 41 8 at The Heart of Boynton Shops for the Neighborhood Officer Policing (NOP) Program and the 42 associated Lease Agreement with Wells Landing Apartments, LLC for Unit 8. A copy of the 43 Interlocal Agreement is attached hereto and made a part here as Exhibit "A" and a copy of the 44 Lease is attached hereto and made a part hereof as Exhibit "B". 45 Section 3. That this Resolution shall become effective immediately upon passage. 46 PASSED AND ADOPTED this 16th day of May, 2023. 47 CITY OF BOYNTON BEACH, FLORIDA 48 YES NO 49 50 Mayor—Ty Penserga ✓ 51 52 Vice Mayor—Thomas Turkin 53 54 Commissioner—Angela Cruz 55 56 Commissioner—Woodrow L. Hay 57 58 Commissioner—Aimee Kelley 59 60 VOTE 5-D 61 ATTa ' 62 63 AA MI . A,1_! 4111( 64 Maylee ue J •"s, MPA, M Ty Peir 65 City Clerk �o NTON B% 66 QoRA•Te•...10 oto 67 O�co ��••�y • APP 7 AS • FO' �' 68 (Corporate Seal) i 00: v / 69 i c�: ORPOR • ..1N0 20 : 70 14 ••. 19 , Michael D. Cirullo,Jr. 71 11�‘. • •�FLORCity Attorney S:\CA\RI SO\Agreements\ILA with CRA and Lease for NOP-Reso.doex INTERLOCAL AGREEMENT BETWEEN THE CITY OF BOYNTON BEACH AND THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY FOR PROVIDING THE NEIGHBORHOOD OFFICER POLICING PROGRAM LOCATION LOCATED WITHIN THE BOYNTON BEACH COMMUNITY REDEVELOPMENT AREA. THIS AGREEMENT("Agreement")is made by and between the CITY OF BOYNTON BEACH, a Florida Municipal Corporation, ("CITY"), and the BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY, ("CRA") (individually and collectively, the "Party"or"Parties"). WITNESSETH: WHEREAS,the 2016 Boynton Beach Community Redevelopment Plan("Plan")calls for the redevelopment of the Community Redevelopment Area("CRA Area")as described in the Plan; and WHEREAS, pursuant to Sections 163.340, 160.345, and 163.370, Florida Statutes, the CRA is empowered to develop and implement community policing innovations, which includes increasing the visible presence of police in the community through citizen contract patrol, neighborhood storefront police stations,and other means; WHEREAS,the CRA has established, in conjunction with the City,a community policing innovation known as the Neighborhood Officer Policing Program ("NOP")pursuant to a separate interlocal agreement("NOP Interlocal Agreement");and WHEREAS,the CITY has approved and hereby reaffirms support for the NOP; and WHEREAS, in order to provide a neighborhood storefront police station, the CRA included as part of a separate Development Agreement ("Development Agreement"), attached hereto as Exhibit A, with Wells Landing Apartments, LLC ("Landlord"), limited funding for a development of a NOP office as further described as "Unit#8" or "Unit 8" in the Development Agreement ("NOP Office"), and a requirement that the NOP Office be provided for use by the NOP rent-free as further described in the Development Agreement; and WHEREAS, for purposes of this Agreement the term "Development Agreement" shall mean the Development Agreement as it has been and may be amended from time to time; and (00563126.1 306-9905604) 1 4854-7732-2846,v.2 WHEREAS, the NOP officers are employed by the City and the NOP is operated by the CITY with financial support from the CRA pursuant to a separate interlocal agreement between the City and CRA; and WHEREAS, the CRA and City have determined that both parties will benefit if the City and Landlord enter into a separate lease for the NOP Office ("NOP Office Lease"); and WHEREAS,concurrent with the execution of this Agreement,the CRA and Landlord are entering into a Second Amendment to Development Agreement to permit the CRA to assign certain rights under the Development Agreement to the City; and WHEREAS,although the NOP Office Lease will be between the City and the CRA,the CRA desires to provide the funding described in the Development Agreement to ensure the presence of a neighborhood storefront police station; WHEREAS, the parties desire to ensure the NOP Office Lease remains rent-free to the City for use by the NOP; and WHEREAS, the CRA and City desire to ensure the NOP's continuous presence in the CRA's boundaries(the"CRA Area"); and WHEREAS, the CRA Board finds that this Agreement, and the use of the CRA's funds for the NOP and NOP Office, is consistent with the CRA's Redevelopment Plan and Chapter 163, Florida Statutes; and WHEREAS, the CRA and the CITY find that this Agreement serves a municipal and public purpose,and is in the best interest of the health,safety,and welfare of the CITY of Boynton Beach, specifically those in the CRA Area; NOW, THEREFORE, in consideration of the mutual covenants and promises herein contained, the sufficiency of which both parties hereby confirm and acknowledge, the parties hereby agree as follows: 1. Recitals. The recitations set forth above are hereby incorporated herein. 2. Obligations of the CRA. a) The CRA shall pay the Landlord $100,054.00 ("NOP Office Funding") for costs for architectural, professional design services, and construction of the NOP Office, subject to certain restrictions set forth in the Development Agreement. (00563126.1 306-9905604) 2 4854-7732-2846,v.2 b) The CRA hereby assigns its right to use the NOP Office rent-free, as set forth in the Development Agreement, and agrees to execute such documentation as may be necessary to effectuate this assignment. 3. Obligations of the CITY. a) The CITY shall maintain the NOP Office primarily for use by the NOP, as a neighborhood storefront police station distinct from ordinary police operations,until such time as the CRA is terminated or expires. b) The NOP shall have a at least one NOP officer available to meet at the NOP Office upon request during their assigned working hours, which may change from time to time. c) Except for the NOP Office Funding, the CITY shall pay for the construction, furnishing, equipping, maintenance, utilities, and all other fees and costs necessary to construct and use the NOP Office for the NOP. d) Upon request from the CRA, or an authorized agent of the CRA, including the Executive Director and the CRA Attorney, the CITY shall provide all documents reasonably requested by the CRA or CRA's agent concerning compliance with this Agreement, specifically including any documentation concerning compliance with Florida Statutes and the required presence of the NOP Officers at the NOP Office. 4. Relationship to NOP Interlocal Agreement.Nothing in this Agreement shall be deemed to replace, terminate, modify or otherwise affect the NOP Interlocal Agreement, as it may be amended from time to time. However, in the event the NOP Interlocal Agreement is terminated, either party may terminate this Agreement upon 30 days' notice to the other party. 5. Limitation on CRA's Responsibilities.The CRA's responsibilities under this Agreement are limited to providing funding to Landlord as specified in Section 2(a) of this Agreement and executing documentation as described in Section 2(b)of this Agreement. 6. Indemnification.The CITY shall indemnify,save,and hold harmless the CRA, its agents, and its employees from any liability, claim, demand, suit, loss, cost, expense or damage which may be asserted, claimed, or recovered against or from the CRA, its agents, or its employees,by reason of any property damages or personal injury, including death, sustained by any person whomsoever, which damage is incidental to, occurs as a result of, arises out of, or is otherwise related to the negligent or wrongful conduct of persons or the faulty equipment (including (00563126.1306-9905604) 3 4854-7732-2846,v.2 equipment installation and removal) associated with the CITY's use of the NOP Office or design or construction thereof. Nothing in this Agreement shall be deemed to affect the rights,privileges, and sovereign immunities of the CRA or the CITY as set forth in Section 768.28,Florida Statutes. This paragraph shall not be construed to require the CITY to indemnify the CRA for CRA's own negligence, or intentional acts of the CRA, its agents or employees. Each party assumes the risk of personal injury and property damage attributable to the acts or omissions of that party and its officers, employees and agents. 7. Term of the Agreement. This Agreement shall become valid and commence upon execution by the last Party to this Agreement, and unless earlier terminated pursuant to this Agreement, shall terminate after upon the termination of the CRA or as otherwise provided for in this Agreement. Nothing in this paragraph shall be construed so as to affect a Party's right to terminate this Agreement in accordance with other provisions in this Agreement. 8. Records. The CITY and the CRA each shall maintain their own records and documents associated with this Agreement in accordance with the requirements set forth in Chapter 119, Florida Statutes. All such records shall be adequate to justify all charges, expenses, and costs incurred in accordance with generally accepted accounting principles. Each Party shall have access to the other Party's books, records and documents as required in this Agreement for the purpose of inspection or audit during normal business hours during the term of this Agreement and at least 1 year after the termination of the Agreement. 9. Filing. The CITY shall file this Interlocal Agreement pursuant to the requirements of Section 163.01(11)of the Florida Statutes 10. Default. Unless otherwise provided in this Agreement, if either Party defaults by failing to perform or observe any of the material terms and conditions of this Agreement for a period of ten(10)calendar days after receipt of written notice of such default from the other Party,the Party giving notice of default may terminate this Agreement through written notice to the other Party, provided however, the CRA may not be held in default for failure of Landlord to execute documentation or failure of Landlord to respond to requests for the same. Failure of any Party to exercise its right in the event of any default by the other Party shall not constitute a waiver of such rights. No Party shall be deemed to have waived any rights related to the other Party's failure to perform unless such waiver is in writing and signed by both Parties. Such waiver shall be limited to the terms specifically contained therein. This section shall be without prejudice to the rights of 1005631261306-9905604) 4 4854-7732-2846,v.2 any Party to seek a legal remedy for any breach of the other Party as may be available to it in law or equity. In addition to the other remedies provided herein, in the event the CITY does not use the NOP Office for the NOP or does not maintain a daily NOP presence in the NOP Office, and fails to cure after the notice of default, the CITY shall pay the CRA $100,054.00; plus interest calculated at a rate of 4%per annum. 11. No Third Party Beneficiaries. Nothing in this Agreement shall be deemed to create any rights in any third parties that are not signatories to this Agreement. 12. Compliance with Laws. The CITY and the CRA shall comply with all statutes, laws, ordinances, rules, regulations and lawful orders of the United States of America, State of Florida and of any other public authority which may be applicable. 13. Entire Agreement. This Agreement represents the entire and sole agreement and understanding between the Parties concerning the subject matter expressed herein. No terms herein may be altered,except in writing and then only if signed by all the Parties hereto. All prior and contemporaneous agreements, understandings, communications, conditions or representations, of any kind or nature, oral or written, concerning the subject matter expressed herein, are merged into this Agreement and the terms of this Agreement supersede all such other agreements. No extraneous information may be used to alter the terms of this Agreement. 14. Severability. If any part of this Agreement is found invalid or unenforceable by any court, such the remainder of the Agreement shall continue to be binding upon the Parties. To that end, this Agreement is declared severable. 15. Governing Law and Venue. The terms of this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of Florida and the United States of America, without regard to conflict of laws principles. Any and all legal actions necessary to enforce the terms of this Agreement shall be conducted in the Fifteenth Judicial Circuit in and for Palm Beach County, Florida, or, if in federal court, in the United States District Court for the Southern District of Florida,to which the Parties expressly agree and submit. 16. No Discrimination. Parties shall not discriminate against any person on the basis of race, color, religion, ancestry, national origin, age, sex, marital status, sexual orientation or disability for any reason in its hiring or contracting practices associated with this Agreement. 17. Notice. Whenever either Party desires to give notice to the other, such notice must be in writing and sent by United States mail, return receipt requested, courier, evidenced by a delivery 100363126.1 306-9905609) 5 4854-7732-2846,v.2 receipt, or by overnight express delivery service,evidenced by a delivery receipt,addressed to the Party for whom it is intended at the place last specified; and the place for giving of notice shall remain until it shall have been changed by written notice in compliance with the provisions of this paragraph. For the present, the Parties designate the following as the respective places for giving of notice: a. CITY: Dan Dugger, City Manager CITY of Boynton Beach 100 E. Ocean Avenue Boynton Beach,FL 33435 b. CRA: Thuy Shutt,Executive Director Boynton Beach CRA 100 E. Ocean Avenue 4th Floor Boynton Beach, Florida 33435 c. Copies To: Michael Cirullo,Jr. Goren,Cherof,Doody&Ezrol,P.A. 3099 East Commercial Boulevard, Suite 200 Fort Lauderdale, Florida 33308 Kathryn Rossmell,Esquire Lewis,Longman&Walker,P.A. 515 North Flagler Drive, Suite 1500 West Pahn Beach,Florida 33401 18. No Transfer. The Parties shall not, in whole or in part, subcontract, assign, or otherwise transfer this Agreement or any rights, interests, or obligations hereunder to any individual, group, agency, government, non-profit or for-profit corporation, or other entity without first obtaining the written consent of the other Party. 19.Interpretation; Independent Advice. This Agreement shall not be construed more strictly against one Party than against the other merely by virtue of the fact that it may have been prepared by counsel for one of the Parties.The Parties declare that the terms of this Agreement have been read and are fully understood. The Parties understand that this is a binding legal {00563126.1 306-9905604} 6 4854-7732-2846,v.2 document, and each Party is advised to seek independent legal advice in connection with the matters referenced herein. 20.Counterparts and Transmission. To facilitate execution, this Agreement may be executed in as many counterparts as may be convenient or required, each of which shall be deemed an original,but all of which together shall constitute one and the same instrument. The executed signature page(s)from each original may be joined together and attached to one such original and it shall constitute one and the same instrument. In addition, said counterparts may be transmitted electronically(i.e.,via facsimile or.pdf format document sent via electronic mail), which transmitted document shall be deemed an original document for all purposes hereunder. 21. Survival.The provisions of this Agreement regarding indemnity,waiver,and termination,and records shall survive the expiration or termination of this Agreement and remain in full force and effect. 22. Time is of the Essence. The parties acknowledge that time is of the essence in the performance of the provisions in this Agreement. 23.Attorney's Fees.If any action at law or in equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable attorney fees, expenses, and costs, including those at the appellate level, in addition to any other relief to which it may be entitled. [Signatures on following page.] (00563126.1 306-9905604) 7 4854-7732-2846,v.2 IN WITNESS WHEREOF,the CITY and the CRA hereto have executed this Agreement as of the later of the dates set forth below. "�pY N Tp���� ATTEST: 0i•S•'a.N.T.46� �� CITY OF BOYNTON BEACH, �A., A'".\:y�!. Florida municipal corporation �� s SEAL I J 1- I� 4 :INCORPORATED' 5 y: i - - CITY le '.4 ••. 1920 .: y Pe'"- rirri— Approved as to Form: \‘FLORIDP r" Date: S " (S - • L 4.4 _ 1 _40 .1 0 ffice of the CITY , to ey Approved as to Form: BOYNTON BEACH COMMUNITY REDEVELOPMENT AGENCY , ffice of the CRA Attorney Ty Pense -/'.air Date: : s` ? z0 z,3 [00563126.1 306.9905604) 8 4854-7732-2846,v.2 BUSINESS LEASE This AGREEMENT of.Lease(this"Lease"), is entered into this I`:hay of 2023, between Wells Landing Apartments LLC d/b/a The Heart of Boynton Sho s (h rein fter called the "Lessor" or the "Landlord"), and The City of Boynton Beach (hereinafter Calle a "Lessee" or "Tenant").WITNESSETH,that the said Lessor does this day Lease unto said Lessee and said Lessee does hereby hire and take as Tenant approximately: Square feet of Commercial Space: 1,055 square feet Location: 119 E Martin Luther King Jr.Blvd Suite 108 Boynton Beach,FL 33435 Accepted Use: Used and occupied by the Lessee as a Neighborhood Officer Program("NOP")Office and for no other purposes or uses whatsoever. Lease Term: Five(5)years subject and conditioned on the provisions of this lease. The Lease should begin July 1,2023 and end June 30,2028.Due to the construction of the retail space, dates may need to be adjusted.Tenant may automatically renew this lease for successive five(5)year periods upon written notice to the Landlord.Tenant agrees and understands that the move-in date is only an approximate date.Total rent payable as follows: Total Rent EACH year is: July 1,2023—June 30,2028: Annual Base Rent: $0.00 Monthly Base Rent: Zero Dollars and 0 Cents ($0.00) Monthly Sales Tax: Zero Dollars and 0 Cents ($0.00) Monthly CAM Fee:Not to exceed($96.71.00) Monthly Total: Zero Dollars and 0 cents($0.00). In no case shall the total rent described above, plus any additional rent described herein,exceed an amount equal to 0.00 dollars($0.00)per square foot. Acceptance of Premises: Tenant accepts premises in "As Is" & "Where Is" condition. Tenant shall be responsible for all expenses associated with the direct operation of the Premises,including but not limited to, electric, water, cleaning, and all utility expenses. Tenant shall be fully responsible for obtaining a Certificate of Occupancy,Certificate of Use,and Business Tax Receipt from City of Boynton Beach and Palm Beach County,as applicable within One Hundred and Twenty(120)days of issuance of a Temporary Certificate of Occupancy for the residential portion of the building. Tenant is responsible for complying with all applicable laws,codes, rules and regulations, including but not limited to county/state/federal fire regulations.Tenant's failure to comply with the requirements of this paragraph shall be considered a breach of this Lease. Tenant is also responsible for any fees acquired due to the violations. Construction Assistance: Tenant shall receive financial assistance from the Boynton Beach CRA and/or the Landlord subject to the terms and conditions of an interlocal agreement. Rules and Regulations governing the use of the property including common areas: In addition to the terms set forth herein,Tenant understands and agrees to comply with certain rules that will be set forth by Landlord to assure safety, sanitation, code compliance, uniformity and cooperation (00355245.1 306-9905604) 1 including matters such as:Parking,signage,trash removal,storage of personal property, loitering Tenant Responsibilities:Except as noted above, Tenant shall be responsible for all improvements and alterations to the interior.Tenant shall obtain all necessary permits and licenses to conduct work. Tenant agrees to pay for the all of the design and construction of build-out including but not limited to electrical, mechanical, plumbing, structural, building, fire and all other trades as applicable to current building codes. Tenant further agrees to hold Landlord harmless for all build-out improvements including any fees/fines required for final approvals. 1. ASSIGNMENT. Tenant shall not assign, transfer, sublease,mortgage,pledge or otherwise encumber the demised premises or any part thereof without the express, written consent of Landlord first obtained;provided,however,that Landlord's consent shall not be unreasonably withheld. In the event of any assignment,transfer or sublease by Tenant,Tenant shall remain liable for the full performance of each and every covenant and condition hereunder. Landlord's approval of any subtenant or assignee is conditioned upon there being no additional compliance required with all laws, rules and regulations of any governmental authority required of either the Landlord or the Tenant and such approval shall create no responsibility or liability on the part of the Landlord for any non-compliance with laws,rules and regulations of any governmental authority. 2. TENANT COMPLIANCE. Tenant, at Tenant's sole expense, shall comply with all laws, rules, orders, ordinances, directions, regulations and requirements of federal, state county and municipal authorities now in force or which may hereafter be in force, which shall impose any duty upon the Landlord or Tenant with respect to the use, occupation or alteration of the premises, and the Tenant shall use all reasonable efforts to fully comply with the Americans with Disability Act.Tenant agrees to pay tenant's pro-rata share of Landlord's capital expenditures required under any governmental law,rule or regulation that was not applicable to the building at the time it was originally constructed. Landlord,to its best knowledge,is currently complaint with all governing codes and regulations. 3. FIRE. In the event the premises shall be destroyed or so damaged or injured by fire or other casualty during the life of this Lease, whereby the same shall be rendered untenantable, then the Lessor shall have the right to render said premises tenantable by repairs within ninety(90)days therefrom. If said premises are not rendered tenantable within said time, it shall be optional with either party hereto to cancel this Lease, and in the event of such cancellation the rent shall be paid only to the date of such fire or casualty.The cancellation herein mentioned shall be evidenced in writing. Tenant shall not be liable for rent during the time the premises are rendered"untenantable. . .. 4. ABANDONMENT. In the event the Lessee abandons the premises, the Landlord may, at his option, enter the leased premises,by force or otherwise, without being liable in any way. For the purpose of this section, both parties agree that the premises shall have been deemed abandoned and vacated if: (1)the Lessee has not entered the premises for five, consecutive working days, excluding weekends and holidays, and (2) the Lessee has not notified the Lessor, in writing, of its intentionto be away from the premises for vacation or other purpose. Delinquent shall be defined as ten (10) days past due. 5. RIGHT OF ENTRY. The Lessor or any of his agents, shall have the right to enter said premises during all reasonable hours with reasonable notice, to examine the same to make such repairs, additions or alterations as may be deemed necessary for the safety,comfort or preservation thereof or of said building or to exhibit said premises and to put or keep upon the doors or windows thereof a notice `FOR RENT"at any time within thirty(30) days before the expiration of this Lease. The right of entry shall likewise exist for the purpose of removing placards, signs, fixtures, alterations, or additions,which do not conform to this Lease or to the rules and regulations of the building. {00555245.1 306990.5664) 2 6. ALTERATIONS. Lessee shall make no structural changes, alterations or mechanical improvements whatsoever without first having obtained the written consent of the Lessor which shall not be unreasonably withheld. Any structural improvements and additions to the premises which Lessee might make must comply with such municipal building and zoning code as would be applicable and shall be paid for in cash at time of making thereof,so as not to subject the premises to mechanics lien. If Landlord so elects, Tenant at its cost shall restore the premises to the condition designated by Landlord in its election, before the last day of the term of this Lease or within thirty (30) days after notice of election is given, whichever is earlier. Landlord's approval of any plans, specifications or work drawings shall create no responsibility or liability on the part of the Landlord for their completeness, design sufficiency or compliance with all laws, rules and regulations of governmental agencies or authorities. 7. INTERIOR. Tenant agrees to keep the interior of said premises, all windows, screens, awnings, doors, including the overhead truck loading doors, interior walls, pipes, electrical fans, machinery, plumbing,electric wiring,and other fixtures and interior appurtenances,in good and substantial repair and clean condition at Tenant's own expense--fire, windstorm, or other act of God, alone excepted. All glass, both interior and exterior, is at the sole risk of Tenant and Tenant agrees to replace at Tenant's own expense, any glass broken during the terms of this lease. It is hereby understood and agreed that in the event that there is an air conditioning unit (or units) in the demised premises, the Tenant shall maintain and repair the same during the term of this lease and shall return said unit(or units)to the Landlord at the termination of this lease in good working order,reasonable wear and tear excepted.Tenant shall enter into a maintenance contract with a licensed mechanical contractor for the maintenance of said air conditioning units, and shall provide Landlord with a copy of said maintenance agreement within thirty(30)days of execution of this lease. 8. CHATTELS. The Lessee hereby pledges and assigns to the Lessor all the furniture, fixtures, goods, and chattels of said Lease,which shall or maybe brought or put on said premises as security for the payment of rent herein reserved and the Lessee agrees that the said lien may be enforced by distressed foreclosure or otherwise at the election of the said Lessor and Lessee agrees to pay collection costs. Except the equipment listed in the attached list and/or under lease and owned by third parties. 9. Without waiving the right to sovereign immunity,the Tenant acknowledges that it is self-insured for commercial general liability in the amounts specified in Florida Statutes Section.768..28,as may be amended from time to time. In addition,Tenant maintains a third-party commercial general liability insurance in lieu of exclusive reliance on self-insurance, which Tenant shall provide proof of the Certificate of Insurance to Landlord prior to the commencement of the Term. 10. HEIRS AND ASSIGNS.This Lease shall bind the Lessor and its assigns or successors and the heirs, assigns, administrators, legal representatives, executors or successors as the case may be of the Lessee. 11.NOTICE. It is understood and agreed between the parties hereto that written notice by email,certified mail return receipt requested, mailed or delivered to the premises leased hereunder shall constitute sufficient notice to the Lessee and written notice by email, certified mail return receipt requested, mailed or delivered to the office of the Lessor shall constitute sufficient notice to the Lessor, to comply with the terms of this Lease. 12. WAIVER.The rights of the Lessor under this Lease shall be cumulative and failure on the part of the Lessor to exercise promptly any rights given hereunder shall not operate to forfeit any of the said rights. {00555245.1306.9903604} 3 13. SIGNS. It is understood and agreed that any signs or advertising to be used, including awnings, in connection with the premises leased hereunder shall be first submitted to the Lessor for approval before installation of same.Tenant shall have the right to install its store sign on the Premises, at its sole cost and expense, in accordance with the code and sign criteria established by the City of Boynton Beach. 14. CHARGES FOR SERVICE. It is understood and agreed between the parties hereto that any charges assessed upon the Tenant by Landlord for services, utilities or for the work done on the premises by order of the Tenant,or otherwise accruing under this Lease, shall be considered as rent due and shall be included in any lien for rent. It is further understood that the Tenant shall, upon demand, pay as additional rent its pro rata share(s)of any sprinkler standby, storm water utility standby,water and/or sewer charges billable to the Landlord for the building(s) of which the demised premises are a part. Landlord represents that,at present,there are no pending charges. 15. BANKRUPTCY.If the Lessee shall become insolvent or if bankruptcy proceedings shall be instituted by or against the Lessee, before the end of this Lease,the Lessor is hereby irrevocably authorized to forthwith cancel this Lease,as for default. 16. SUBORDINATION.Subject to the provisions of Paragraph 33 below,this Lease shall be subordinate to any ground lease, mortgage,deed of trust, or any other hypothecation or security now or hereafter placed upon the property and to any and all advances made on the security thereof and to all renewals, modifications, consolidations, replacements and extensions thereof. Notwithstanding such subordination, Tenant's right to quiet possession of the leased premises shall not be disturbed if Tenant is not in default and so long as Tenant shall pay the rent and observe and perform all of the provisions of this Lease, unless this Lease is otherwise terminated pursuant to its terms. In the event of a foreclosure of any such mortgage or the termination of this Lease, Tenant will, upon request of any person or party succeeding to the interest of Landlord as a result of such foreclosure or termination, automatically become the Tenant of such successor in interest without change in the terms or other provisions of this Lease. Upon request by Landlord'smortgages or such successor in interest, Tenant shall execute and deliver, on terms and conditions reasonably acceptable to the parties,an instrument or instruments confirming the attornment herein provided for. Tenant agrees to execute and acknowledge any documents required to effectuate an attornment, subordination, or to make this Lease prior to the lien of any mortgage, deed of trust or ground lease, as the case may be. Tenant's failure to execute such documents within ten (10) days after written demand shall constitute a material default by Tenant hereunder or, at Landlord's option, Landlord shall have the right to execute such documents on behalf of Tenant as Tenant's attorney-in-fact. Tenant does hereby make, constitute and irrevocably appoint Landlord as Tenant's attorney-in-fact and in Tenant's name, place and stead, to execute such documents in accordance with this Section, said appointment to be a power during the term of this Lease coupled with an interest and irrevocable. 17. SURRENDER PREMISES. Lessee hereby accepts the premises in the condition they are in at the beginning of the Lease and agrees to maintain said premises in the same condition, order, and repair as they are at the commencement of said term and to return said premises in broom-swept clean and tenantable condition. Tenant shall not be permitted any holdover status upon termination or cancellation of this Lease. 18. WATER DAMAGE. It is expressly agreed and understood by and between the parties to this Lease that all personal property placed or moved in the premises above described shall be at the risk of the Lessee.The Lessor shall not be liable for any damage or injury by water, which may be sustained by the said Tenant or other person or for any other damage or injury resulting from the carelessness, negligence, or improper conduct on the part of any other tenant or agents or employees or by reason of the breakage,leakage,obstruction of the water,sewer or soil pipes in or about the said building. 19. RETURN OF PREMISES. At the termination of this Lease, the premises shall be restored to their original condition (subject to improvements and additions remaining at Lessor's option as described :(00555243.1 306.9905604) 4 above)and returned to.the Lessor'in broom-clean condition. 20. UTILITIES. The Tenant will be responsible for making arrangements with the utility company and the phone company for any electricity or phone service. and this Lease will begin on' the date indicated,whether or not the Tenant has been.ableto successfully arrange for such services, 21..PARKING. Motor vehicles shall be parked in the area directly in front of the leased bay and not in. front of the neighboring bays.Tenant appoints Landlord as'its attorney-in-fact to remove all vehicles which are improperly parked. Disabled, abandoned or improperly registered vehicles shall not be permitted to remain.On the parking area fora period longer.than 48 hours.Tenant to have the use of all the parking spaces in front of leased premises. 22. TRASH.REMOVED.Tenant shall provide for suitable containers for the collection of trash:and other waste.Tenant shall secure the removal of the trash and wasteat regular and periodic intervals so as to prevent the accumulation of trash in such a manner as to become a nuisance or health hazard.In the event the Tenant permits trash or waste to accumulate in an unsightly fashion, Landlord shall be authorized to remove same at Tenant's expense: 23. NO OUTSIDE STORAGE. Tenant shallconfine all.of its activities.to the interior portion of the demised premises and shall not conduct activities or store materials in the areas adjacent to the. demised premises. The parking area shall be used for parking by employees or visitors only. Tenant .shallkeep the parking area outside its premises free of any waste, trash, or any other debris. No materials,equipment or any items related to the Tenant's business may be stored outside the premises overnight, with the exception of commercial trash containers. No pallets,'cardboard boxes or any other material shall be stored outside at any time.No chemicals, flammable items,.toxic substances, petroleum products or other contaminants shall be allowed in the property at any time. 24. ABANDONED PROPERTY.It is understood and agreed that any merchandise,fixtures, furniture'or equipment left.in the premises when Tenant vacates shall be deemed to have been abandoned by Tenant and by such abandonment Tenant automatically relinquishesany right of interest therein. Landlord is authorized to sell,dispose of or destroy same. 25, ESTOPPEL CERTIFICATE.Tenant, upon'request of Landlord Or any holders of a mortgage against the fee,shall fromtime to time deliver or cause to be delivered to Landlord or such mortgagee,within ten (10) days from date of demand, a certificate duly executed and acknowledged in form for recording, without charge, certifying, if true; that this Lease is valid and existing and in full force* effect that Landlord's not indefault under any of the terms Of this Lease and"Such"oilier•matters as may be required by Landlord..or such mortgagee. Tenant further agrees to pay to Landlord, as. additional rent,an amount equal to 1/30 of one.month's rent at the monthly rental then obtaining,for each day,if any, in excess often(10)days after such demand that.'Tenant shall fail to deliver such a certificate as provided for in this.clause.. 26. HAZARDOUS SUBSTANCES - GENERAL. The term "Hazardous Substances,"'as used in this Lease shall mean pollutants,contaminants,toxic or hazardouswastes,or any other substances the.use and/or the removal of which is required or the use of which is restricted,prohibited or penalized by any"Environmental Law,"which term shall mean any federal,state or local law, ordinance or other statute of a governmental or quasigovernmental authority.relating to pollution or protection of the environment. Lessee hereby agrees that (i) no activity will be conducted on the premises that will produce any.I-Iazardous Substance, except.for such activities that.:are part of the ordinary course of Lessee's business activities (the "Permitted Activities") provided said Permitted Activities are conducted in accordance with all Environmental Laws and have been approved in advance in writing by Lessor; Lessee shall be responsible for obtaining any required permits and paying any fees and providing any testing required by any governmental agency;.(ii)the premises will not be used in any manner for the storage of any Hazardous Substances except for the temporary storage of such; materials that are used in the ordinary course of Lessee's business (the "Permitted Materials") 1005020.1 306-9901604 f 5 provided such Permitted Materials are properly stored in a manner and location meeting all Environmental Laws and approved in advance in writing by Lessor; Lessee shall be responsible for obtaining any required permits and paying any fees and providing any testing required by any governmental agency; (iii)no portion of the premises will be used as a landfill or a dump; (iv)Lessee will not install any underground tanks of any type;(v)Lessee will not allow any surface or subsurface conditions to exist or come into existence that constitute,or with the passage of time may constitute a public or private nuisance; (vi) Lessee will not permit any Hazardous Substances to be brought into the premises, except for the Permitted Materials described below, and if so brought or found located thereon, the same shall be immediately removed, with proper disposal, and all required cleanup procedures shall be diligently undertaken pursuant to all Environmental Laws. Lessor or Lessor's representative shall have the right but not the obligation to enter the premises for the purpose of inspecting the storage, use and disposal of Permitted Materials to ensure compliance with all Environmental Laws. Should it be determined, in Lessor's sole opinion,that said Permitted Materials are being improperly stored,used, or disposed of,then Lessee shall immediately take such corrective action as requested by Lessor. Should Lessee fail to take such corrective action within 24 hours, Lessor shall have the right to perform such work and Lessee shall promptly reimburse Lessor for any and all costs associated with said work. If at any time during or after the term of the Lease, the premises is found to be so contaminated or subject to said conditions, Lessee shall diligently institute proper and thorough cleanup procedures at Lessee's sole cost, and Lessee agrees to indemnify and hold Lessor harmless from all claims, demand, actions, liabilities, costs, expenses, damages and obligations of any nature arising from or as a result of the use of the premises by Lessee. The foregoing indemnification and the responsibilities of Lessee shall survive the termination or expiration of this Lease. 27. LANDLORD'S LIABILITY. The liability of the Landlord (which, for the purposes of this Lease, shall include the Owner of the building if other than the Landlord) to the Tenant for any default by Landlord under the terms of this Lease is limited to the interest of the Landlord in the building,and the Tenant agrees to look solely to the Landlords interest in the building for the recovery of any judgment. 28. RADON GAS. Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it overtime. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your county public health unit. 29. ATTORNEY'S FEES. If either party becomes a party to any litigation concerning this Lease, the premises,or the building or other improvements in which the premises are located, by reason of any act or omission of the other party or its authorized representatives,and not by any act or omission of the party or its authorized representatives, the party that causes the other party to become involved in the litigation shall be liable to that party for reasonable attorneys' fees and all costs and expense incurred by it in connection with said litigation including available appeals thereof. 30. WAIVER OF TRIAL BY JURY. Tenant and Landlord hereby knowingly, voluntarily, and intentionally waive the right either may have to a trial by jury in respect to any litigation based thereon, or arising out of, under or in connection with this instrument and any agreement contemplated to be executed in conjunction herewith or any course of conduct, course of dealing, statements (whether verbal or written), or actions of either party. This provision is a material inducement for the Landlord leasing the premises to the Tenant. 31. CONDEMNATION. If any portion of the leased premises or the project are taken under the power of eminent domain,or sold under the threat of the exercise of said power(all of which are herein called "condemnation'), this Lease shall terminate as to the part so taken as of the date the condemning authority takes title or possession, whichever first occurs;provided that if so much of the premises or project are taken by such condemnation as would substantially and adversely affect the operation and (00553245.1306-9905404) 6 profitability of Tenant's business conducted from the premises, and said taking lasts for ninety (90) days or more, Tenant shall have the option, to be exercised only in writing within thirty (30) days after Landlord shall have given Tenant written notice of such taking(or in the absence of such notice, within thirty (30) days after the condemning authority shall have taken possession), to terminate this Lease as of the date the condemning authority takes such possession. If a taking lasts for less than ninety(90)days,Tenant's rent shall be abated during said period but Tenant shall not have the right to terminate this Lease. If Tenant does not terminate this Lease in accordance with the foregoing,this Lease shall remain in full force and effect as to the portion of the premises remaining, except that the rent shall be reduced to the proportion that the usable floor area of the leased premises taken bears to the total usable floor area of the project. Landlord shall have the option in its sole discretion to terminate this Lease as of the taking of possession by the condemning authority, by giving written notice to Tenant of such election within thirty (30) days after receipt of notice of a taking by condemnation of any part of the premises or the project. Any award for the taking of all or any part of the premises or the project under the power of eminent domain or any payment made under threat of the exercise of such power shall be the property of Landlord, whether such award shall be made as compensation for diminution in value of the leasehold or for the taking of the fee, as severance damages,or as damages for tenant improvements;provided, however,that Tenant shall be entitled to any separate award for Ioss of or damage to Tenant's trade fixtures and removable personal property and any award available for the relocation of Tenant's business. In the event that this Lease is not terminated by reason of such condemnation, and subject to the requirements of any lender that has made a loan to Landlord encumbering the project, Landlord shall to the extent of severance damages received by Landlord in connection with such condemnation,repair any damage to the project caused by such condemnation except to the extent that Tenant has been reimbursed therefore by the condemning authority. Tenant shall pay any amount in excess of such severance damages required to complete such repair. Except as set forth in this Section,Landlord shall have no liability to Tenant for interruption of Tenant's business upon the premises, diminution of Tenant's ability to use the premises,or other injury or damage sustained by Tenant as a result of such condemnation. IN WITNESS WHEREOF, the parties hereto have executed this instrument for the purpose herein expressed,the day and year above written. Signed,sealed and delivered in the presence of: Witness as to Landlord: Landlord: Wells Landin •. = ents LLC d/b/a The Heart of Boynto .o•: Lewis Swezy, Manager of Mana!; By: By: / __ K., Date: Da �:. J 2. Witness as to Tenant: / Tenant Name: City of Boynton Beach. Byr1 �:<L.' —.Mgt . By: ,- _ Il _ �/ -lb. i �, a � ._ �� Date:^���r'' -/ >, (00333243.1 306-9903604) 7