R19-080 1 RESOLUTION NO. R19-080
A RESOLUTION OF THE CITY OF BOYNTON BEACH,
FLORIDA, APPROVING AND AUTHORIZING THE MAYOR TO
• SIGN THE LEASE AGREEMENT BETWEEN THE CITY OF
BOYNTON BEACH AND YACHTSMAN PROPERTIES TO
ALLOW THE POLICE DEPARTMENT'S NEIGHBORHOOD
• OFFICER PROGRAM AND CRIME PREVENTION TO OCCUPY
1• UNIT 12 OF OCEAN PALM PLAZA; AND PROVIDING AN
11 EFFECTIVE DATE.
1
1
1- WHEREAS, the Police Department's Neighborhood Officer Program, Crime
1 , Prevention Unit and related community policing activities will be housed at this location
1: during the term of the lease; and
1 WHEREAS,the initial term of the lease is for two years and may be extended for one
1: additional two-year term; and
1• WHEREAS, co-locating these two programs will provide convenience to residents
21 and businesses within the CRA because of their proximity to the Heart of Boynton; and
21 WHEREAS, the City Commission of the City of Boynton Beach, Florida, upon the
2• recommendation of staff, deems it to be in the best interests of the City residents to approve
2 and authorize the Mayor to sign the Lease Agreement between the City of Boynton Beach and
2, Yachtsman's Properties to allow the Police Department's Neighborhood Officer Program and
2- Crime Prevention Unit to occupy Unit 12 of Ocean Palm Plaza at 1550 North Federal Highway
2: for a fixed annual rent of$1 plus estimated $578 monthly operating expenses.
2 NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF
2: THE CITY OF BOYNTON BEACH,FLORIDA,THAT:
C:\U sers\Stanzione"Mpp Data\Local\Microsoft\Windows\INetCache\IEW4XI W K7N\Lease_Agreement_for_Ocean_Palm_Plaza -
_Reso.docx
29 Section 1. The foregoing "Whereas" clauses are hereby ratified and confirmed as
30 being true and correct and are hereby made a specific part of this Resolution upon adoption
31 hereof.
32 Section 2. The City Commission hereby approves and authorizes the Mayor to
33 sign the Lease Agreement between the City of Boynton Beach and Yachtsman's Properties to
34 allow the Police Department's Neighborhood Officer Program and Crime Prevention Unit to
35 occupy Unit 12 of Ocean Palm Plaza at 1550 North Federal Highway for a fixed annual rent
36 of$1 plus estimated$578 monthly operating expenses, a copy of the Lease is attached hereto
37 as Exhibit"A."
38 Section 3. This Resolution shall become effective immediately upon passage.
39 PASSED AND ADOPTED this ( ' day of_ ) +, 2019.
40 CITY OF BOYNTON BEACH, FLORIDA
41
42 YES NO
43
44 Mayor—Steven B. Grant
45
46 Vice Mayor—Justin Katz
47
48 Commissioner—Mack McCray
49
50 Commissioner—Christina L. Romelus
51
52 Commissioner—Ty Penserga
5
5, VOTE
5 ATTEST:
5• ueenester Nieves y �:••'�`�a+ t �
6 I Deputy City Clerk ; "= pY N Tp ''1.4
6 (Corporate Seal)
: •
•
•
1920 :
C:\Users\StanzionenAppData\LAid\Micbloft\Windows\INetgiche\IO4XIWK7N\Lease_Agreement_for_ocean_Palm_Plaza_
_Reso.docx '• ..
� .
,' 0
'�• ,�iR1��
opo
LEASE
This Lease (the "Lease"), entered into on \a) as\c\ between YACHTSMANS
PROPERTIES, LLC, a Delaware limited liability compaari y, having its principal place of business do
Stajus Consulting, LLC, 80 Business Park Drive, Suite 103, Armonk, NY 10504, referred to as
"Lessor," and the City of Boynton Beach, Florida, a Florida municipal corporation, having its
principal place of business at PO Box 310, Boynton Beach, Florida, 33426 referred to as "Lessee."
SECTION ONE
DESCRIPTION OF PREMISES
Lessor leases to Lessee the store premises (the "Premises") shown as "Unit 12" on the Site Plan
attached hereto as Exhibit A, located in "Ocean Palm Plaza — Building 1550" at 1550 North Federal
Highway, Boynton Beach, Florida (the "Shopping Center"). (Lessor reserves the right in its sole
discretion to change the name of the Shopping Center at any time, with or without notice to or
approval of Lessee).
SECTION TWO
TERM
The term of this Lease ("Term" or "Lease Term") is approximately Two (2) years, beginning on the
Delivery Date(as defined in Section Four(the "Commencement Date"), and terminating on the last day of
the month in which occurs the Second (2nd) anniversary of the Rent Commencement Date, as that term is
defined in Section Three, (the "Termination Date"), unless the Lease is extended as provided in Section
Thirty-One. Any Extension Term, properly exercised, shall become part of the Lease Term for all
purposes hereunder.
SECTION THREE
FIXED RENT AND OTHER CHARGES
FIXED RENT. Lessee shall pay Lessor Fixed Rent, in advance, without any offset or deduction on the
first day of each month of the Term in the following amounts (Lessee is not obligated to pay sales tax as a
municipality, therefore no sales tax will be collected throughout the term of the lease):
Year PSF Rent Annual Rent Month/Rent
1 $0.0010 $1 $0.0833
2 $0.0010 $1 $0.0833
A. RENT COMMENCEMENT DATE. Lessee shall begin all payments of Fixed Rent and other
charges on the Rent Commencement Date, which shall be on the Delivery Date.
B. INITIAL OPERATING EXPENSES: $7 per square foot per annum ($0.583 per square foot per
month), payable in monthly installments on the first day of each and every month during the Term
(subject to periodic adjustment pursuant to Section 8). Lessee's Proportionate Share of Operating
(00297672.2 306-90018211 1
Expenses shall be fifteen percent (5.1%), which share is derived by dividing the number of gross rentable
square feet contained in the Premises (stipulated to be 991 square feet) by the "Gross Rentable Shopping
Center Square Footage" (19,334),which is the aggregate number of square feet contained in the Shopping
Center being used for retail purposes. Lessor may adjust the Gross Rentable Shopping Center Square
Footage to account for outparcels shown on the Site Plan to account for the fact that such tenant(s) or
occupant(s)may pay or incur certain Operating Expenses directly.
In addition to the defmed Initial Operating Expenses detailed and calculated in the preceding
paragraph, the Lessor is required to obtain a premises only liability policy in the sum of One Million
Dollars and 00/100 Cents ($1,000,000.00) per occurrence and in the sum of Two Million Dollars and
00/100 Cents ($2,000,000.00)per aggregate on the City of Boynton Beach's behalf as part of this Lease as
said policy is required by the Lessor's insurance carrier ("Premises Only Liability Policy") for which the
cost of this policy will be a one-hundred percent(100%)pass-through of cost to the Lessee which will be
spread out over twelve (12) equal monthly installments to the Lessee and added to the above stated
Operating Expenses in full, as this Premises Only Liability Policy is required for this specific Lessee. The
cost of this Premises Only Liability Policy for the initial annual period is Five Hundred Sixty Dollars and
00/100 Cents ($560.00), and includes terrorism insurance, which is to be paid by the Lessee, and which
cost is subject to change. Lessee acknowledges this additional constant monthly increase to the Initial
Operating Expenses, future applicable Operating Expenses and agrees to make such payments as stated
herein.
C. SECURITY DEPOSIT: $0.00. The Deposit shall be held as security for the payment of Rent, and for
performance of all other terms, covenants and conditions of Lessee hereunder; the amount of the Deposit,
without interest, shall be repaid to Lessee after the Termination Date, provided Lessee shall have
performed all terms, covenants and conditions under this Lease. Upon any Event of Default by Lessee, all
or part of the Deposit may, at Lessor's sole discretion,be applied on account of such default, and thereafter
Lessee shall promptly restore the resulting deficiency in the Deposit. The Deposit may be co-mingled by
Lessor with its own funds. Lessee acknowledges that the Deposit is not to be construed as prepaid Rent by
Lessee for any rental period during the Term. The Deposit is in addition to, and not a substitute for any
statutory landlord's lien provided under law.
D. DUE ON SIGNING: $1,156, representing the first month's Operating Expenses of $578, the last
month's estimated Operating Expenses of$578.00.
E. PAYMENT; LATE FEES: Fixed Rent, Operating Expenses and any other payments due under this
Lease (whether or not designated as "Additional Rent" hereunder) shall be collectively referred to as
"Rent". Lessee shall pay Lessor the Fixed Rent and Operating Expenses in monthly installments as
defmed above, , beginning on the Rent Commencement Date, with succeeding payments as called for in
the Lease due on the 1' day of each subsequent month during the Term of the Lease. Late Fees equal to
the greater of Two Hundred Dollars ($200.00) or ten percent (10%) of the past due amount, plus interest
calculated at the rate of 1.5% per month (or if less, the maximum amount allowed under applicable law)
shall be assessed if Rent (or any portion thereof) is not received by the 5th of the month in which it
becomes due. In addition to the foregoing Late Fees, bad checks shall also incur an administrative charge
of Fifty Dollars($50.00),plus any fee imposed on Lessor by its bank or financial institution.
(00297672.2 306-9001821) 2
SECTION FOUR
CONDITION OF THE PREMISES
Lessor shall deliver the Premises to Lessee with all of Lessor's Work (as described in Exhibit B attached
hereto) substantially complete no later than the Delivery Date (as defined in Section Seven). Unless Lessor
is delivering possession on execution of this Lease, Lessor agrees to provide Lessee with at least three (3)
days notice of the date on which Lessor intends to deliver the Premises, which date shall be known as the
"Possession Date". Lessor and Lessee stipulate that the Premises will consist of the number of square feet of
leaseable area set forth in Section Three(C),
Lessor represents and warrants that at the Delivery Date, all parts of the Premises as referenced in Section 9
are in good condition. Except for Lessor's Work, the Premises shall be delivered in strictly "AS-IS,
WHERE IS" condition and Lessee shall accept the same in the condition existing on the date delivered
without claims for repairs or improvements. Acceptance of the Premises by Lessee shall be construed as
recognition that the Premises are in a good state of repair and in sanitary condition on the date delivered,
which Premises are hereby accepted by the Lessee. Lessor makes no express or implied warranty or
representation as to the fitness of the Premises for Lessee's intended use, nor the existence or operation of
other tenants or occupants within the Shopping Center, nor the condition of any systems or services serving
the Premises, including without limitation the HVAC or any utility service. Lessee shall arrange and pay for
all utilities furnished to the Premises for the Term of this Lease, including, but not limited to, electricity,
gas, water, sewer, and telephone service. Lessor must approve Lessee's construction plans for its initial
build-out in writing before Lessee may begin any work in the Premises.
SECTION FIVE
USE OF PREMISES; RESTRICTIONS ON USE
Lessee may use the Premises asan Office for the City of Boynton Beach Police's Neighborhood Officer
Program, Crime Prevention Units, and related uses, specifically excluding police activities such as booking
prisoners, interrogations, etc. (the "Permitted Use"), Lessee shall restrict its use to such purpose, and shall
not use or permit the use of the Premises for any other purpose without the prior, express, and written
consent of Lessor or Lessor's authorized agent. Lessee shall not use the Premises in any manner that will
increase risks covered by insurance on the Premises and/or result in an increase in the rate of insurance or a
cancellation of any insurance policy, even if such use may be in furtherance of Lessee's business purposes,
or allow a lien or other encumbrance to attach to Lessor's estate. In no event shall Lessee violate any of the
Exclusive and Prohibited Uses listed on Exhibit C.
Lessee shall not keep,use, or sell anything prohibited by any policy of fire insurance covering the Premises,
and shall comply with all recommendations and requirements of the insurers applicable to the Premises and
necessary to keep in force the casualty and liability insurance.
SECTION SIX
WASTE,NUISANCE, AND COMPLIANCE WITH LAWS
Lessee shall not allow any waste or nuisance on the Premises,nor use or allow the Premises to be used for
any unlawful purpose or in an unlawful manner. Lessee shall comply with all laws, rules, regulations or
(002976722 306-9001821) 3
ordinances governing the Premises, shall obtain and keep in full force and effect all occupational, or other
licenses required by any governmental agency having authority over Lessee's business, and shall pay all
dues, fees,taxes or other charges imposed on Lessee's business by any authorized governmental authority.
SECTION SEVEN
DELAY IN DELIVERING POSSESSION
This Lease shall not be rendered void or voidable by the inability of Lessor to deliver possession to Lessee
on any specified date. Lessor shall not be liable to Lessee for any loss or damage suffered by reason of any
delay; provided, however, that in the event, for any reason, Lessor does not substantially complete
Lessor's Work and deliver the Premises by September 1, 2019 ("Delivery Date"), the Commencement
Date, Rent Commencement Date, and date for commencement of payment of Operating Expenses shall be
extended one (1) day for each day of delay in completing Lessor's Work. No extension of this Lease shall
result from a delay in delivering possession.
SECTION EIGHT
OPERATING EXPENSES
A. The term "Operating Expenses" shall mean all costs and expenses incurred by or on behalf of
Lessor in operating, managing, maintaining and repairing the Shopping Center, including, without
limitation, all costs with respect to insurance expenses, real estate taxes (whether general or special, ad
valorem or otherwise), all costs and expenses of operating, managing, maintaining, repairing and
replacing, signing, cleaning, painting and striping of the Shopping Center (including, without limitation,
the cost of uniforms, equipment and employment taxes); payroll burden of all employees (payroll taxes
and employee benefits); security; alarm, surveillance and life safety systems; janitorial services;
maintenance of sprinkler systems; removal of water, trash and debris; payments required by governmental
authorities; costs and expenses in connection with maintaining governmental authority ambient air and
environmental standards; the costs of all materials, supplies and services purchased or hired therefore;
operation of public toilets; maintenance, repair and replacement of the roof, utility systems serving the
Shopping Center including, without limitation, water, sewer and storm water lines and other utility lines,
pipes and conduits; management fees, costs and expenses of inspecting and depreciation of machinery and
equipment used in the operation and maintenance of the Shopping Center and personal property taxes and
other charges (including, but not limited to, fmancing, leasing or rental costs) incurred in connection with
such equipment; costs and expenses of capital repairs and replacements to the Shopping Center, including,
without limitation, lighting and shrubbery; costs of providing water, sewer,power and other utilities to the
Shopping Center; the cost of any capital improvements made to the Shopping Center by Lessor that
reduce other Operating Expenses or made to the Shopping Center required under any governmental
requirement; and administrative costs attributable to the Shopping Center for on-site personnel and an
overhead cost equal to fifteen percent (15%) of the total costs and expenses of operating and maintaining
the Shopping Center. Lessor may elect to amortize any of the foregoing costs and expenses over such
period as Lessor shall determine together with interest at the rate of fifteen percent(15%)per annum.
B. Commencing on October 1, 2019, Lessee shall pay, with each monthly installment of Fixed
Rent, one-twelfth (1/12) of Lessee's Proportionate Share of annual Operating Expenses. The expected
first-year operating expenses for the Premises is expected to be seven dollars per square foot($7 psf) or
t00297672 306-9001821) 4
$578 per month. Such amounts shall be calculated by Lessor based upon the prior (calendar or fiscal, at
Lessor's sole election) year actual amounts incurred by Lessor with respect to such Operating Expenses
and Lessor shall include an amount reasonably estimated by Lessor toward any increase in such charges
for such succeeding years. Lessor may at any time increase such estimate of the Operating Expenses in
accordance with the provisions of this Section. Upon determination by Lessor of the actual amounts
incurred by Lessor during the then current year for such charges, Lessee shall pay upon demand the
amount of any deficiency in such estimated payments toward the actual amounts incurred therefor by
Lessor, and Lessor shall credit any overpayment by Lessee toward the next accruing monthly payments
for such charges until fully recouped. Lessee's obligation to pay the Additional Rent pursuant to this
Section which accrues during the Term shall survive expiration or earlier termination of this Lease. After
the end of each calendar year during the Term, Lessor shall furnish to Lessee a statement in reasonable
detail of the actual costs and expenses related to the Operating Expenses payments, and there shall be an
adjustment between Lessor and Lessee, with payment to or repayment by Lessor, as the case may require.
Any required repayment by Lessor may be accomplished, at Lessor's option, by crediting the amount of
overpayment against Fixed Rent or future monthly payments of Operating Expenses (or any portion
thereof as determined by Lessor) which may be or become owed by Lessee, and shall be deemed
conclusive between the parties. Such statement may also contain an estimate by Lessor of the Operating
Expenses payments for the next succeeding year, and Lessor may adjust from time to time the estimated
payments of Operating Expenses. Until such time as Lessor provides a statement adjusting the estimated
Operating Expenses payments, Lessee shall continue to make payments in the amount of the prior
estimated amount from Lessor, subject to adjustment pursuant to this Section, and upon notification of the
increase by Lessor, Lessee shall pay the full amount of the increase which is due for any prior months
during the adjusted period and thereafter continue to make payments at the adjusted amount.
SECTION NINE
REPAIRS AND MAINTENANCE
A. Lessor shall maintain the roof, foundation and structural soundness of the exterior walls (excluding all
windows and doors)of the buildings and the Common Areas located in the Shopping Center.
B. Lessee shall, at its sole cost and expense, maintain, repair and replace all other parts of the Premises in
good condition and repair including, without limitation, all utilities, fixtures, mechanical, electrical,
plumbing systems and equipment located in, on or about the Premises, and the heating, ventilating and air
conditioning ("HVAC") system(s) servicing the Premises. Lessee, at its sole cost and expense, shall keep
and maintain the Premises and the areas immediately surrounding the Premises, at all times in a neat,
clean and sanitary condition (including the removal and/or disposal of any trash) and in accordance with
all governmental requirements, and Lessee shall, at its sole cost and expense, repair and replace all
damage to the Premises caused by Lessee and its agents, officers, employees, contractors and invitees. If
Lessee fails to comply with the above obligations and such failure continues for three(3)days after notice
from Lessor, Lessor may perform,but is not obligated to perform, any such Lessee obligation, and the cost
thereof shall be paid by Lessee as Additional Rent within ten (10) days of demand from Lessor. It is the
parties intention that the Lease be a "net lease", and Lessee shall pay, in addition to Rent, all costs and
expenses related to the Premises, including without limitation, all maintenance, repair and replacement
expenses, except as specifically provided to the contrary in this Lease. Lessee shall throughout the Term
maintain a service contract with an air conditioning repair firm approved by Lessor, at Lessee's sole cost,
(00297672.2 306-9001821) 5
for the regular and emergency maintenance and repair and replacement of the HVAC systems servicing
the Premises, including, without limitation, the periodic cleaning of the coils of the HVAC unit. Neither
Lessee nor Lessee's employees, agents contractors or invitees shall be permitted access to the roof of the
Premises or Shopping Center. Additionally, if the HVAC system (or other utility equipment) is damaged
by vandalism, fire, lightning or other casualty, Lessee shall be responsible for the cost of repair (and if
necessary,replace)the equipment. Lessee's sole right of recovery shall be against Lessee's insurers for loss
or damage to stock, furniture and fixtures, equipment, improvements and betterments. For any work that
Lessee is responsible under this Lease which involves access to and/or penetration of the roof surface,
without limiting Lessor's right to approve any alterations or work (and contractors performing the same)
as provided in Sub-section (C) below, Lessee shall provide Lessor prior written notice and shall employ
Lessor's contractor at Lessee's sole cost. Notwithstanding anything to the contrary contained in this Lease,
Lessee shall not be permitted to perform any structural alterations or repairs to the Premises, and at
Lessor's sole election either Lessor or Lessor's designated contractor shall perform, at Lessee's sole cost
and expense, any such structural alterations and repairs. As a part of Lessee's general maintenance
obligation, Lessee shall enter into an annual contract with a licensed, bonded and insured pest control
contractor reasonably acceptable to Lessor, fully licensed to inspect and treat for pests, which shall
provide services as dictated by Lessee and as Lessor may reasonably require from time to time. Upon
demand by Lessor, Lessee shall furnish to Lessor a copy of the pest control maintenance contract
described above. Nothing stated hereinabove shall limit Lessee's obligation to maintain the Premises free
of pests throughout the Term. Lessee shall also close out any permits pulled by or on behalf of Lessee.
C. Lessee shall not make any alterations to the Premises without the prior written consent of Lessor.
Lessor shall not unreasonably withhold its consent to any interior, nonstructural alterations, but Lessor
may withhold or deny its consent to any exterior alterations, or to any alterations which affect the roof,
structure or mechanical electrical or plumbing facilities serving the Premises in its sole discretion. In any
event, Lessor must approve any contractors Lessee may engage to perform any alterations in, on, or about
the Premises.
D. In order to comply with the provisions of Section 713.10 Florida Statutes, it is specifically provided
that neither Lessee nor anyone claiming by, through or under Lessee, including, without limitation,
contractors, subcontractors, materialmen, mechanics and laborers, shall have any right to file or place any
kind of lien whatsoever upon the Premises or the Center or any improvement thereon, and any such liens
are specifically prohibited. All parties with whom Lessee may deal are put on notice that Lessee has no
power to subject Lessor's interest to any claim or lien of any kind or character, and all such persons so
dealing with Lessee must look solely to the credit of Lessee, and not to Lessor's interest or assets. Lessee
shall put all such parties with whom Lessee may deal on notice of the terms of this Section. If at any time
a lien or encumbrance is filed against the Premises or the Center as a result of Lessee's work, materials or
obligations, Lessee shall promptly discharge said lien or encumbrance, and if said lien or encumbrance has
not been removed within ten(10) days from the date it is filed, Lessee agrees to deposit with Lessor cash
in an amount equal to one hundred fifty percent(150%) of the amount of any such lien or encumbrance,to
be held by Lessor(without interest to Lessee)until any such lien or encumbrance is discharged.
SECTION TEN
SURRENDER OF PREMISES
Lessee shall surrender the Premises at the end of the Term, or any renewal of such Term, in the same
100297672.2 306-9001821) 6
I
condition as when Lessee took possession, allowing for reasonable use and wear. Before surrender, Lessee
shall remove all business signs placed on the Premises by Lessee and restore the portion of the Premises on
which they were placed in the same condition as when delivered by Lessor. Lessor shall have the right 90
days prior to the termination of this lease (or at any time Lessee is in default of its obligations under this
Lease)to place "FOR RENT" signs (or their equivalent) in or on the Premises.
SECTION ELEVEN
PARTIAL DESTRUCTION OF PREMISES
Partial destruction of the Premises shall not render this Lease void or voidable, nor terminate it except as
specifically provided in this Lease. If the Premises are partially destroyed during the Term of this Lease,
Lessor shall repair them when such repairs can be made in conformity with governmental laws and
regulations, within 180 days of the partial destruction. Written notice of the intention of Lessor to repair
shall be given to Lessee within 60 days after any partial destruction. Fixed Rent will be reduced
proportionately to the extent to which the repair operations interfere with the business conducted on the
Premises by Lessee. If the repairs cannot be made within the time specified above, Lessor shall have the
option to make them within a reasonable time and continue this Lease in effect with proportional rent rebate
to Lessee as provided for in this Lease. If the repairs cannot be made in 180 days, and if Lessor does not
elect to make them within a reasonable time, either party shall have the option to terminate this Lease.
Disputes between Lessor and Lessee relating to provisions of this section shall be arbitrated. The parties
shall each select an arbitrator, and the two arbitrators selected shall together select a third arbitrator. The
three arbitrators shall determine the dispute, and their decisions shall be binding on the parties. The parties
shall divide the costs of arbitration equally between them.
SECTION TWELVE
ENTRY ON PREMISES BY LESSOR
Lessor reserves the right to enter on the Premises at reasonable times to inspect them, perform required
maintenance and repairs, or to make additions, alterations, or modifications to the Common Areas or to any
part of the building in which the Premises are located, and Lessee shall permit Lessor to do so. Lessor may
erect scaffolding, fences, and similar structures, post relevant notices, and place moveable equipment in
connection with making alterations, additions, or repairs, all without incurring liability to Lessee for
disturbance of quiet enjoyment of the Premises, or loss of occupation or use of the Premises. Lessor will
have the right (i) to establish, modify and enforce reasonable rules and regulations from time to time with
respect to the Common Areas; (ii) to enter into, modify and terminate agreements pertaining to the use and
maintenance of the Common Areas; (iii) to close temporarily portions of the Common Areas; and (iv) to do
and perform such other acts in and to said areas and improvements as Lessor shall determine.
SECTION THIRTEEN
SIGNS, AWNINGS, AND MARQUEES INSTALLED BY LESSEE
Lessee shall not construct or place signs, awnings, marquees, or other structures projecting from the exterior
of the Premises without the prior, express, and written consent of Lessor, which consent may be granted or
withheld in Lessor's sole and absolute discretion. Subject to municipal code approval (to be obtained by
{002976722 306-9001821) 7
Lessee), Lessor hereby approves Lessee's signage as shown on Exhibit D. Lessee shall remove signs,
displays, advertisements, or decorations it has placed on the Premises that, in the opinion of Lessor, are
offensive or otherwise objectionable in Lessor's sole opinion. If Lessee fails to remove such signs, displays,
advertisements, or decorations within 5 days after receiving written notice from Lessor to remove them,
Lessor reserves the right to enter the Premises and remove them at the expense of Lessee. In any event,
Lessee shall conform any signs to the Sign Criteria then in effect for the Shopping Center. Except as
provided herein and approved by Lessor, Lessee shall have no other rights to have any other signage or
other identification displayed in the Shopping Center.
Lessee shall be entitled to maintain a sign panel on the Shopping Center Pylon in the size and location
shown on Exhibit D. Such panel shall conform to the manufacturer's specifications for the pylon structure,
and shall be manufactured, delivered, and installed at Lessee's sole expense. Lessor reserves the right to
require Lessee to use Lessor's sign company to install Lessee's panel. Lessee shall maintain, repair, and
replace (as necessary) its panel on the pylon, and Lessee agrees to replace such panel if, in Lessor's opinion,
such panel becomes faded, broken, cracked, or otherwise in disrepair. If Lessee fails to replace such panel
within thirty (30) days following Lessor's written notice, or if Lessee is in default of this Lease beyond any
applicable notice and cure periods, Lessor may remove Lessee's panel (at Lessee's expense) and replace the
same with a blank panel, or at Lessor's option a panel identifying another tenant or occupant of the
Shopping Center.
SECTION FOURTEEN
BUSINESS SALE SIGNS
Lessee shall not conduct "Going out of Business," "Lost Our Lease," "Bankruptcy," or other sales of a
similar nature on the Premises without the prior written consent of Lessor. In no event shall Lessee erect or
maintain any permanent or temporary signage (i.e., "reader boards", billboards, "lollipop" signs, mobile
marquee, vehicles bearing signage identifying Lessee) in or on the Premises or the Common Area, without
the prior written approval of Lessor,which may be withheld in Lessor's sole discretion.
SECTION FIFTEEN
NONLIABILITY OF LESSOR/EXCULPATION
Lessor shall not be liable for liability or damage claims for injury to persons or property from any cause
relating to the occupancy of the Premises by Lessee, including those arising out of damages or losses
occurring on sidewalks and other areas adjacent to the Premises during the Term of this Lease or any
extension of such Term. Lessee shall indemnify Lessor, its agents, employees, officers and directors, to the
greatest extent permitted by the laws of the State of Florida and subject to Fla. Stat. 768.28, from any and
all liability, loss, or other damage claims or obligations resulting from any injuries or losses of any nature,
directly or indirectly related to the Lessee's use and occupancy of the Premises, including, without
limitation, any claims arising in common or other areas of the property of the Lessor.
The obligations of Lessor under this Lease do not constitute personal obligations of Lessor or its individual
partners, shareholders, directors, officers, employees and agents, and Lessee shall look solely to Lessor's
then existing interest in the Premises, and to no other assets, for satisfaction of any liability in respect of this
Lease, and will not seek recourse against Lessor's individual partners, shareholders, directors, officers,
employees or agents, or any of their personal assets or those of any related entity for such satisfaction. No
(00297672.2 3064001821) 8
other properties or assets of Lessor or any related entity shall be subject to levy, execution, or other
enforcement procedures for the satisfaction of any judgment(or other judicial process)or for the satisfaction
of any other remedy of Lessee arising out of or in connection with this Lease, the relationship of landlord
and tenant, or Lessee's use of the Premises. Lessee's sole right and remedy in any action concerning Lessor's
reasonableness (if and where the same is required under this Lease) shall be an action for either declaratory
judgment or specific performance.
SECTION SIXTEEN
LIABILITY INSURANCE
Lessee is a self-insured, sovereign entity of the State of Florida, and its self-insurance limitations are
provided by law. Lessee is provided with comprehensive general liability insurance through the State Risk
Management Trust Fund with limits of coverage up to a maximum of$200,000 per person and $300,000 in
the aggregate per occurrence, pursuant to the terms and limitations of Sections 768.28, Florida Statutes and
Chapter 284, Part II, Florida Statutes, or as amended from time to time. Worker's Compensation insurance
is maintained in full compliance with Florida law. Lessee shall obtain and keep in force during the Term of
this Lease "all risk" extended coverage property insurance with coverages acceptable to Landlord, in
Landlord's commercially reasonable discretion. Said insurance shall be written on a one hundred percent
(100%) replacement cost basis on Lessee's personal property, all Lessee improvements installed at the
Premises by Landlord or Lessee, Lessee's trade fixtures and other property. By way of example, and not
limitation, such policies shall provide protection against any peril included within the classification"fire and
extended coverage," against vandalism and malicious mischief,theft, sprinkler leakage, earthquake damage,
windstorm damage and flood damage. Lessee expressly acknowledges and agrees that in the event its
insurance policy excludes coverage for flood, earthquake, windstorm or any other peril, that neither Lessee
nor its insurance company shall have any right or claim against Landlord or its insurance company as a
result of damage to Lessee's Property resulting from such excluded peril. In addition, if there is damage to
any Lessee improvements installed in the Premises which is not covered by Lessee's insurance because of
exclusions under Lessee's "all risk" policy, Lessee shall be required to reimburse Landlord for any costs
incurred by Landlord to repair or replace such improvements. If this Lease is terminated as the result of a
casualty in accordance with section 11, the proceeds of said insurance attributable to the replacement of all
Lessee improvements at the Premises shall be paid to Landlord. If insurance proceeds are available to repair
the Lessee improvements, at Landlord's option, all insurance proceeds Lessee is entitled to receive to repair
the Lessee improvements shall be paid by the insurance company directly to Landlord, Landlord shall select
the contractor to repair and/or replace the Lessee improvements, and Landlord shall cause the Lessee
improvements to be repaired and/or replaced to the extent insurance proceeds are available.
In addition, the Lessor shall obtain a Premises Only Liability Policy, including terrorism coverage, in the
sum of One Million Dollars and 00/100 Cents ($1,000,000.00) per occurrence and in the sum of Two
Million Dollars and 00/100 Cents ($2,000,000.00) per aggregate on the City of Boynton Beach's behalf as
part of this Lease as said policy is required by the Lessor's insurance carrier, and will be paid in full by
Lessee as stated above.
{002976722 306-9001821} 9
SECTION SEVENTEEN
ASSIGNMENT, SUBLEASE, OR LICENSE
Lessee shall not assign or sublease the Premises (or any part thereof), nor grant any right or privilege
connected with the Premises or use thereof, nor allow any other person except agents and employees of
Lessee to occupy the Premises (or any part thereof) without first obtaining the prior written consent of
Lessor, which consent maynot be unreasonably withheld. . Consent by Lessor to one assignment, sublease
or license shall not be consent to any subsequent assignment, sublease, or license. An unauthorized
assignment, sublease, or license to occupy by Lessee shall be void and at the option of Lessor shall
terminate this Lease.
The interest of Lessee in this Lease is not assignable by operation of law without the written consent of
Lessor. Any assignment for the benefit of creditors, or any transfer of stock, partnership, or other form of
ownership interest in Lessee is prohibited except in accordance with the provisions of this Section. In
addition, no assignment, sublease or license, whether with or without Lessor's consent shall affect any
personal or corporate guaranty.
As a condition of considering any request for Lessor's approval, together with its request, Lessee shall pay
Lessor a review fee of One Thousand Dollars ($1,000.00), plus Lessor's reasonable attorney fees and or
administrative fees in reviewing the terms and considerations of any proposed assignment, sublease or
license,whether or not such transfer is approved by Lessor.
SECTION EIGHTEEN
BREACH
Failure to pay any item of Rent when due, the appointment of a receiver to take possession of the assets of
Lessee, a general assignment for the benefit of the creditors of Lessee, any action taken or allowed to be
taken by Lessee under any bankruptcy act, or the failure of Lessee to comply with any term and/or condition
of this Lease shall constitute a breach of this Lease. Lessee shall have 5 days after receipt of written notice
from Lessor of any breach to correct the conditions specified in the notice. If Lessee cannot reasonably cure
such breach within the 5 day period, Lessee shall have a reasonable time to correct the default, provided
such action is commenced by Lessee within 5 days after receipt of the notice and diligently pursued to
completion. Such additional time shall not be required for any event involving a failure to pay any item of
Rent when due.
SECTION NINETEEN
REMEDIES OF LESSOR FOR BREACH BY LESSEE
Lessor shall have the following remedies in addition to its other rights and remedies in the event Lessee
breaches this Lease and fails to make corrections as set forth in Section Eighteen:
A. Lessor may reenter the Premises immediately and remove the property and personnel of Lessee, store the
property in a public warehouse or at a place selected by Lessor, at the expense of Lessee.
B. After reentry, Lessor may terminate this Lease on giving 10 days written notice of termination to Lessee.
{00297672.2 306-9001821} 10
Without such notice, reentry will not terminate this Lease. On termination, Lessor may recover from Lessee
all damages proximately resulting from the breach, including, but not limited to, the cost of recovering the
Premises and the balance of the Rent payments remaining due and unpaid under this Lease.
C. After reentering, Lessor may relet the Premises or any part of the Premises for any term without
terminating this Lease, at such rent and on such terms as it may choose. Lessor may make alterations and
repairs to the Premises. The duties and liabilities of the parties if the Premises are relet shall be as follows:
(1) In addition to Lessee's liability to Lessor for breach of this Lease, Lessee shall be liable for all
expenses of the reletting, for the alterations and repairs made, and for the difference between the rent
received by Lessor under the new Lease and the Rent installments that were due for the same period under
this Lease.
(2) Lessor, at its option, shall have the right to apply the rent received from reletting the premises (a) to
reduce Lessee's indebtedness to Lessor under this Lease, not including indebtedness for Rent, (b) to
expenses of the reletting and alterations and repairs made, (c) to Rent due under this Lease, or (d) to
payment of future Rent under this Lease as it becomes due.
If the new Lessee does not pay a Rent installment promptly to Lessor, and the Rent installment has been
credited in advance of payment to the indebtedness of Lessee other than Rent, or if rentals from the new
Lessee have been otherwise applied by Lessor as provided for in this section, and during any Rent
installment period, are less than the Rent payable for the corresponding installment period under this
Lease, Lessee shall pay Lessor the deficiency, separately for each rent installment deficiency period, and
before the end of that period. Lessor may, at any time after such reletting, terminate this Lease for the
breach on which Lessor based the reentry and relet the Premises.
After reentry, Lessor may procure the appointment of a receiver to take possession and collect rents and
profits of the business of Lessee. If necessary to collect the rents and profits, the receiver may carry on the
business of Lessee and take possession of the personal property used in the business of Lessee, including
inventory, trade fixtures, and furnishings and use them in the business without compensating Lessee.
Proceedings for appointment of a receiver by Lessor, or the appointment of a receiver and the conduct of
the business of Lessee by the receiver, shall not terminate this Lease unless Lessor has given written
notice of termination to Lessee as provided in this Lease.
SECTION TWENTY
ATTORNEY AND BROKER FEES
In the event of any litigation or arbitration arising out of this Lease, including without
limitation appellate proceedings and hearing and matters,the prevailing party shall be
entitled to recover reasonable attorneys' fees and costs.
SECTION TWENTY-ONE
CONDEMNATION
Eminent domain proceedings resulting in the condemnation (or a deed in lieu thereof) of a part of the
100297672.2 306-9001821) 1 1
Premises, but leaving the remaining premises usable by Lessee for the purposes of its business, will not
terminate this Lease unless Lessor, at its option, terminates this Lease by giving written notice of
termination to Lessee. The effect of any condemnation, where the option to terminate is not exercised, will
be to terminate this Lease as to the portion of the Premises condemned, and the lease of the remainder of
the Premises shall remain intact. The Fixed Rent for the remainder of the lease term shall be reduced by
the amount that the usefulness of the Premises has been reduced for the business purposes of Lessee.
Lessee assigns and transfers to Lessor any claim it may have to compensation for damages as a result of
any condemnation. Lessee shall have no claim upon any award or damages awarded to Lessor by virtue of
any condemnation or deed in lieu thereof
SECTION TWENTY-TWO
WAIVERS
Waiver by Lessor of any breach of any covenant or duty of Lessee under this lease is not a waiver of a
breach of any other covenant or duty of Lessee, or of any subsequent breach of the same covenant or duty.
SECTION TWENTY-THREE
GOVERNING LAW
It is agreed that this Lease shall be governed by, construed, and enforced in accordance with the laws of
the State of Florida
SECTION TWENTY-FOUR
ENTIRE AGREEMENT
This Lease shall constitute the entire agreement between the parties. Any prior understanding or
representation or any oral agreement of any kind preceding the date of this Lease shall not be binding
upon either party except to the extent incorporated in this Lease or by separate written instrument executed
by both parties or their authorized representatives.
SECTION TWENTY-FIVE
MODIFICATION OF AGREEMENT
Any modification of this Lease or additional obligation assumed by either party in connection with this
agreement shall be binding only if evidenced in a writing signed by each party or an authorized
representative of each party.
SECTION TWENTY-SIX
NOTICES
All notices, demands, or other writings that this Lease requires to be given, or which may be given, by
either party to the other, shall be deemed to have been fully given when made in writing and deposited in
the United States mail, registered and postage prepaid, and addressed as follows:
(002976722306-9001821) 1 2
7
To Lessor:
YACHTSMAN PROPERTIES, LLC
80 Business Park Drive, Suite 103
Armonk,NY
To Lessee:
City of Boynton Beach
PO Box 310
Boynton Beach, Florida 33426
Attn: Assistant Chief Joe DeGiulio
With Copy to:
James A. Cherof, Esq.
Goren, Cherof,Doody & Ezrol, P.A.
3099 East Commerical Boulevard, Suite 200
Fort Lauderdale, FL 33308
The address to which any notice, demand, or other writing may be given or made or sent to any party as
above provided may be changed by written notice given by such party as above provided.
SECTION TWENTY-SEVEN
BINDING EFFECT
This Lease shall bind and inure to the benefit of the respective heirs, personal representatives, successors,
and assigns of the parties.
SECTION TWENTY-EIGHT
TIME OF THE ESSENCE
It is specifically declared and agreed that time is of the essence of this Lease and each and every provision
hereof.
SECTION TWENTY-NINE
PARAGRAPH HEADINGS
The titles to the paragraphs of this Lease are solely for the convenience of the parties and shall not be used
to explain, modify, simplify, or aid in the interpretation of the provisions of this Lease.
SECTION THIRTY
OPTION TO EXTEND
Provided Lessee has not been in default of this Lease beyond any notice and cure periods at any time prior
to its exercise, Lessee may exercise its option to extend the term of this Lease for one (1) additional term
i {00297672.2 306-9001821) 13
I
(the "Extension Term") of TWO (2) years. Lessee must exercise such option, if at all, by written notice
delivered to Lessor no later than six (6)months prior to the Termination Date (time being of the essence).
All of the terms of the Lease shall remain in effect, except that the Fixed Rent during the first year of the
Extension Term shall be"Fair Market Rent".
The term"Fair Market Rent" shall mean the monthly amount per square foot that a willing landlord would
accept and a willing retail tenant would pay, at arms-length, for a comparable commercial building located
in the vicinity of the Shopping Center for a use similar to that of Lessee at the time of such negotiation. In
the event that the parties cannot agree on the Fair Market Rent for such Extension Term before the
Termination Date, Lessor and Lessee jointly shall select an independent third party appraiser reasonably
acceptable to both parties. The cost of the third party appraisal shall be shared by the parties. If Lessor and
Lessee cannot agree upon an independent third party appraiser, then either party may request a court of
competent jurisdiction to appoint such an appraiser. The decision of the appraiser shall be binding upon
Lessor and Lessee.
SECTION THIRTY-ONE
RELOCATION
Notwithstanding any other provision in this Lease, Lessor in its sole discretion shall have the option at any
time to relocate Lessee from the Leased Premises (the "Present Premises") into other premises in the
Shopping Center(the "New Premises"). Lessor shall give Lessee at least forty-five(45)days notice of the
approximate date Lessee is to move to the New Premises. Lessor shall prepare the New Premises to the
same extent that Lessor prepared the Present Premises. The New Premises will have at least the same
amount of square foot area as the Present Premises. Lessor shall pay for moving Lessee's inventory,
fixtures, equipment and storefront sign to the New Premises. The New Premises will become the Leased
Premises (instead of the Present Premises) and the Rent (including all of Lessee's other monetary
obligations to Lessor under the Lease) and all the other terms and provisions of this Lease shall be
transferred to and continue to apply, without interruption, to the New Premises from and after the date
Lessee is required to move pursuant to this Section.
SECTION THIRTY-TWO
SECTION INTENTIONALLY LEFT BLANK.
Signature Page Attached
(00297672.2 306-9001821) 14
IN WITNESS WHEREOF, the respective parties have signed, sealed an. .elivered this
Lease on the date and year written below.
LESSOR:
YACHTS • S PROPER IES, LLC,
a Delaw. 444 he• Ii. •ili► •ompany
,'
WITNES&I"-- By:
I / ','
•
/
WITNES �/ ��/ ,=�
Dated 7/6/19
CIT j: i TO ilLIT • CH
B y: /
41"YOR, STEVEN B. GRANT
ATTEST:
/LIJAiJAI-
s Z
O �
.
Approved s to F BOYN't�
/6/tdri/
City torney
{00297672.2 306-9001821} 15
EXHIBIT A
SITE PLAN
1550 N Federal Highway,Boynton Beach, Florida
1 ,..r. j IL 00
Flf
i „
L,
' I
4
r
I' VT- -11)-ii _.
V
1
11 i 1 ;
E L
-[_.i
0
7
1..g,
..
,,.: ...„
M I L.
_,=,____r_u_,_____,__.____..
L ,I Y i
n 1 1
1 _ ' 1 ilrT t ,1
�. - 17 ,��
1) '`1 _Q 1 `J V
{00297672.2 306-9001821} 1 6
EXHIBIT B
LESSEE'S WORK
Lessee will take the unit"AS-IS WHERE IS" except for the following work to be performed by Lessor:
LESSOR'S WORK
Lessor's shall provide a "Vanilla Shell" to Lessee which shall include the following:
1) Electrical and Lighting -to code as provided by the City of Boynton Beach.
2) Plumbing—to code as provided by the City of Boynton Beach.
3) HVAC—deliver air conditioning in good working order.
4) Celing-to be delivered as an"industrial style -open" ceiling with exposed ductwork and lighting.
5) Floor—Commercial carpeting similar to the type located in 1550 N Federal,Unit 11.
6) Restroom-ADA compliant with new fixtures where applicable.
7) 1 office as provided for in attached plans.
{00297672.2 306-9001821) 17
EXHIBIT C
EXCLUSIVE AND PROHIBITED USES
1. Adult book stores, adult theatre, or adult amusement facility.
2. INTENTIONALLY OMITTED
3. Automobile and light truck new sales or rental.
4. Automobile service and self-service gas stations.
5. Automobile/motorcycle repair shops.
6. Automobile storage.
7. Bath and massage parlors.
8. Billiard rooms,bowling alleys, skating or roller rinks and poolrooms.
9. Any industrial or mining use.
10. Dry cleaners with on-site cleaning plant.
11. Office use(except incidental to a retail use permitted hereunder).
12. Medical observatory dormitories or any other sleeping quarters or lodging.
13. Mortuaries or funeral homes.
14. Natatoriums.
15. Open-air theaters.
16. Propagating and growing plants for sale.
17. Pubs,bars, nightclubs or discos.
18. Self-service storage facilities.
19. Skating rinks
20. Truck rentals.
21. The retail sale of new cellular phones and cellular phone plans.
21. Any other use not allowed under this Lease, prohibited by law or for which Lessor has
granted another occupant an exclusive use right.
{00297672.2 306-9001821) 18
EXHIBIT D
SIGNAGE
pia ALLAMAUV SKIS 610 LUV%TAMS
I TMA&CAP ATTACHED 12'
4 TEC'SCREW 12'CINTEM@
12 NAT UT 420,1.E I N•+rMi
1'16'PLEXIGLASS NCE
.— -- ----- STM'S PRAWN n2 MR 1I 1*DON
,1Y 1A'II6CN 40/LETTERS
' �D '•••ELKTRICAL SIC+JAGE'VOL.PEA IHC 600324.t,120..-264.
TO AM AWYMM MC8111
W T PEP 111TEM SPACED I./MT f)C6TMW 20 lISCgEIIECi SMRpt
"WM
y I ►ER IHC 600E IIE
[/. ..�.,..,..IMIAE PLUS LEO CA&E Ut I,A IA;A
ME Wil BUSIED UF,E33A 19
1.4 OMA MILES • . A-
J�' _761'arnow o 1T
fYr1 tA;LIiI VPIAT3
12D12 4 TIO TRANSFDPAdEA A'11'.IK Al1MrW SCtYAi THE
Fut PEM KID TO
C.I'•34`412104UR Pial
e •
Litter Detail:
J- � �
_Xtr1MM111O
1110111110417 uulaMlnM PIM MMI MIS MIM
011111101/4110 M11MAw NJ kW&ru
r..+••• ,r...... Wilt OW.
Ira.M taw . .r.gym
Ina 11.0 Irmo YM '•'
1..�.-- .••••• III/r.
{00297672.2 306-9001821) 19
EXHIBIT D—Continued
MONUMENT SIGNAGE
OCEAN PALM PLAZA 1
1550
kif
•pranal brat am I'r.erm+ut.wnt wan")tt,.'
♦f I SNs IU W I1riM('?'�l.n T1Ma119 N.IMf
INTEANAUY 1IIUU;NATEEI DOUBLE SIDED MONUMENT SIGN
14 wr.r!..rn W.
io-w .00EAN PALM PLAZA
ery�t I�iir+H4�0
z-�
new :
. 77- •
t j'y.taftw 111/1 _ • Y
A. A1ti1
N100100•1NVM dMtoter*
•
a1 11Y*I.4 Sumo.taint,
I
f
-. r ep
•
41.111.111.110.
* It is expected that Lessee will have at least one (1) space on the monument.
I
{002976722 306-90018211 20