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HomeMy WebLinkAbout2002 Ordinance No. 027• • ORDINANC::: NO .,ll_ SERIES OF 2,10 2 BY AUTHORITY COUNC IL BILL NO. 25 I NTRODU CE D BY COUNC IL MEMBER WOLOSYN AN ORDINANCE AUTHORIZING THE CITY OF ENG LEW OOD'S EXERCISE OF ITS RIGHT OF FIRST REFUSAL TO PURCHASE PRO PU'IT SYSTEMS, INC . WHEREAS, by the passage of Resolutio n No. 1, Series of 1988, the City Co uncil of the City of Englewood authorized an Agreeml..'nt with Pro Putt Sys tems, Inc. which provi ded for u 54-hole t\iliniature Go;f facility at th e En glewood Golf Course; and WHEREAS, by the passage of Resolution No. G7, Series of 1990, th e Englewood City Co uncil amended the co ntract with Pro Putt to include a Go-Kart facility and red uced th e number of miniature go lf holes to 45: and WHEREAS, by the passage of F<esolution No, 95, Se r ies of 1990, the C ity and Pro Pu tt e nte red into nn Entry S ign Lease Agreement: and WHEREAS, by the passage of Resolution No. 49, Series of 1992, the E n glewoo d Caty Co uncil authorized tl:e amending of the exis ting Agreement regli:-d.irn_! foes; a nd WHEREAS, by the passage of Ordinance No. 30, Se ries of 1994 , the Englewood City Co ur .-:il auth ori zed th e City's purcha 6(' of t he clubhouse building a nd lease of s uch buildin~ to Pro Putt: and WHEllEAS, by the passage of Resolution No. 40 , Series of 1995, the Englewoo d City Council authori zed the ame nding of the Agreement to set fees which included a Drag S tnp and exte nd ed the Co ntract to the year 2010: nnd WHEREAS, by the pa ssage of Ordinance No . 63, Series of 1998, the Englewood City CC'uncil authorized the amendi,1g of the Co ntract allowing Pro Putt to d educt in sura nce costs from their mo nthly fee payments to the City; and WHEREAS, the Con t ract with Pro Putt Systems, Inc. a llow s the City of Englewood the right of first re fu sa l on any va.Hd off~r to purchase the existing bu ~i ness; a nd WHEREAS, Pro Pu tt Systems received 3 va li d offe r to purcha se the exis ting bu !:t in 1_•s!i1 fo r $35,000 .00; a.nd WH EREAS, with tlv passage of thi s Ordinance the Ci ty Co uncil a uthori zes the City to e xercise it's nght of fir st refusal und er the Co ntract; NO W, THEREFORE, !JP IT ORDAJ NED BY "."HE CITY COUNC IL OF THE CITY OF' ENGLEWOOD, COLOIUDO, AS FOLLOWS : -\- 10 b viii ~-The City Co un cil of the City of Englewood, Golorado hereby authorizes the City to e xe rcise the right of first refu sal to purchase Pro Putt, Inc . Se.d.i!ln.l. The Mayor a nd the City Clerk are hereby a uthori zed to s ign and attest thi s Ordinance as an exerCl!31! u: ~he City's option, Introduced, read in full , nnd passed on first readi ng on the 6" day of May, 2002 . Published as a Sill fo r a n Ordinance on the 10th day of May, 2002. Read by title and passed c . fin al reading on the 20th day of May, 20 02. Published by title as Ordinance No.ll, Series of 2002, on the 24th day of May, 2002. ~tf(jj Loucrishi,1 A. Ellis, City Clerk I, Louc,ishia A. Ellis, City Clerk of the City of Englewood, Colorado, hereby certify that the above and foregoing is a true CORY, of the Ordinance pas d on final reading and publi shed by title a s Ordinance No&'_l_, Series of 20 2. -2- • • • • • COUNCIL COMMUNICATION Dat e May 6, ~002 I Agenda ,tem I Subject 11 a ii Purchase of Pro Putt Systems, In c. Initiated By Departm ent of Parks and Rec:eation I Staff Source Dave Lee, Manager of O pen Space COUNCIL GOAL AND PREVIOUS COUNCIL ACTION 1 Y88-lri•ial agreem ent with Pro Putt Systems , Inc. was to provide 54-hole Miniature Golf faci lity. Term was forseven years. (Resoluti o n #1 ) 1990-Chan ge in ~on lrac t to include a Go-Ka rt fac il ity anJ re duce th e number of golf holes to 45. Term of contract was fo r ten years. (Reso luti on #67) Ded11ction fo r in suran ce was included in co ntr act. 1990-Sign agreeme nt fo r lease of entry sign. (Resolution #95) 1992-Am end exis tin g ag ree m ent rega rdin g fee s, (Reso lution #49) 1994-Purchase of clubhouse b u ildin g and leas e of bui ldin g to Fro Putt Sys tems, Inc. (Ordinance #30) 1995-An•end exis tin g agr ee m ent to set fee s, in cluding Drag strip and ex tending co ntrac t to the vea r 201(. (Reso lution #40) 1998-Amend ex isting contrac t to all ow Pro Pu tt Sys tems, In c IO cied uct ins urance costs fr o m m o nth l\' iee payments. (Ordinan ce #63) RECOMMENDED ACTION Staff recommends City Coun c il ado pt a bill for orciinance e.<e rcising right of first refusa l to p urchas e Pr o Pull, In c ior the amount of 53 5,000. IIACKGROUND , ANALYSIS , AND ALTERNATIVES IDENTIFIED Pro Putt Syste ms, In c. (Riverside Miniature Golf/Go Kart s) began a miniat•Jre go lf o perati on in 198e. Th ~ Ci ty o f Eng lewood has lease d th e pr o perty to Pro Putt Systems, In c. and Pro Putt :yst ems , 'nc. pays 15% o f -·,e gross sa les of user fees and I 0% o f food/drink concess ions to th e En glewood Golf Course. Sco tt Simpson, owner o f Pro Putt Systems , In c. gave us his six ty-da y w ritten noti ce to terminate the agreeme 11t with th e City of En glewood wi th hi s las t day oi OJ., ,rati o n to b e MJy 19•, 2002. On April 18'", 2002, Sco tt Simpso n received a bona fide offer '.n p urchase Riversid e Minra:u re Golf/Go Karts in th e amount of $35,000. The contrac t v •ith Pro Putt Sys tems, In c . all ows th e Ci ty oi Eng lewood th e right of first refusa l on ,111y valid offer to purchase th e ~xis tin g bus iness . FINANCIAL IMPACT Starr believes the financial impact to be a loss of S8,000 to $12 ,000 per yea r. The demr!::i on cos t will be arou nd $80,000-$100,000. The funds for the purcha~e and demolition of ~-,e site will come from the EnglewooJ Golf Course fund balance. LIST OF ATTACHMENTS Pro Putt Systems , In c Ag re ement Building Lease Agreement Offer lo Purchase Pro Putt, Inc Sixty-Day Notification from Scott Simpson Proposed Bili for an Ordinance • • • • AGREEMENT FOR OPER:1,TION OF M!NT :l,T URE GOLF COURSE :\NP GO KART TRACK · 199§ THIS AGREEMENT is a co ntract that is binding upon the parties, who are the CITY OF ENGLEWOOD [hereinafter "City") and PRO :: PUTT SYSTEMS , INC . [hereinafter •operator"]. IT IS THE INTENTION of the parties that there be a twenty-seven (27) hole miniature golf course and Go Kart facility to be constructed and operated in a beneficial and aeathetically co mp atible ma nner upon a portion of the premises of the existing Englewood Munici pal Golf Co urse. NOW , THEREFORE . in consideration of the covenants and agreements herein co ntained and of the fees and monies hereinafter set forth, the parties mutually agre, and co ntract as follow s: 1. ~ to Occupv and Onecare The City hereby grants the exclusive right, license, and privilege to Operator to co nstruct, operate . maintain and provide amenities fo r a tw enty~seven (27) bole miniature golf co ur se. Go Kart facility, miniature drag strip, boat ride facility, bike and trail re nt al facility and clubhouse upon a parcel of la nd described in Exhibit A attached he reto , and wluch is presently a part of the e:risting Englewood Ylunicipal Golf Course . The Clubhouse and eightee n (18) holes shall be wheelchair accessi ble . Such construct1o n, operation, maintenance and provisio n of amenities shall he reinafter be referred to as ''Concess ion." The City .ihall at all nmes retain ::ind maintain itS ow nership of the real prope rty so occ:.ipied . No other ac th;t:,.• may be co nd1.1 ·.ced pursuant to this . .\greement without the ?.-ritten consent oi the City :'<lanager. 2. Con ce<;sioo ~ubiect to ;\,ppro val The Conce ssion and its operation. including co nstruction, design, sigt1age , maintenance, and provision of amenities, as well as all activities se t fo rth in the following paragr,µh , shall be subj ect to t he approval of the City, through its designated representative. which ~;:pri,val may be granted or with.held in the City's sole discretion fo r any reacc.r, when acting in good faith . The City must act promptly in deciding to :;rant or witr.ho ld its a pproval fo r any action of the Operator affecting the Concession . The Oper>tor must prom f t!)' provide the City with any and all details of, or changes in . or mak e availab le upon request to the City any and all de tails of, or changes in, the foUowing : Go Kart equipn1ent, co nstructio n design. location. landscaping, scheduling, materials. standards, co ntra cto rs, subcontractors, working personnel. came, oper3tional design, la yout, loc:itio n, landscaping, hours and da ys of opern.tio o, materials, standards, signage, employees, employee dress, food and drink, sale goods, concession items, all business accounts and books, receipt totala, and any and all buaillesa records reasonably necessary to determine accurate, true and correct fees due and owing to the City. Operator shall keep and maintain detailed reC<lrds of all sales of any kind whatever and of all expenditures in the conscruction and operation of the concession. If at any time, co me or any portion of the conatruction or design of the concesaion or its operation is unsatisfactory to the City in its sole discn:tion, then the City may order and requin, that such concession and/or operation be altered and changed forthwith in a fashion determined by the City in its sole satisfaction and at the Operator's sole expense. 3. '.Ill.m. 11iis Agree m ,nt shall be in effect through Septec:b,,: 1. 2010, unless soo ner terminated 1,urs uant to the terms set forth herein; and the Operator shall have the exclusive right to renew for two (2) successive, additional five (5) year terms. · Renewal shall be automatic 11nless either party gives writte r.1. :iotice no le ss than sixty (6 0) days ~rior to the expiration of the then current term of I.his Ap-eement that renewal i terminated. Thia Agreement is not and s hall not be construed as a franchise, and the City and Operator shall have the right to mutually and/or unilaterally cancel this Agreement as set forth herein. The operator •hall co mpensate the City by monthly payments for the following items: A. Miniature Golf -beginning January 1, 1995 • 10% of the gross income from the gross gate fee or of any other fee for admission fo r the miniature golf concession. Beginning January 1, 1996 • 11 % of the gross income from the gross gate fee or of any other fee fo r admission fo r the miniature go lf concession. Beginning January I , 1997 -12% of the gross income from the gross gate fee or of any other fee fo r admission for the miniature golf concession . Beginning January 1, 1998 • 13% of the gross income from the gross gate fee or of any other fee for admission fo r the miniature golf co ncession. Beginning January I, 1999 • 14% of the gross income from the gross gate fee or of any other fee for admission for the miniature golf concession . Beginning January 1, 2000 -15% of the gross income from the gross gate fte or of any othe r fee for admission for the miniature golf conceaaio n. · -2- • • • • • B. Go-Kart, Jr. Dragster and Boat Rental• beginning January I, 1995 . l0% of the gross income from the gross gate fee or of any other fee for admission for tbe Go-Kart, Jr . Dragster and Boat Rental concession. Beginn.ng January I , 1996 • 11 !-I of the gross income from tbe gross gate fee or of any other fee for admission for the Go -Kart, Jr. Dragster and Boat Rental concession. Beginning January I, I ~"~ · 12% of the gross income from the gross gate fee or of any other fee for admission ,r the Go-Kart, Jr. Dragster and Boat Rental concession. Beginning January I . 1998 · 13% of the gross income from the i;ross gate fee or of any other fee for admission for the Go -Kart, Jr. Drag,ter and Boat Rental concession. Beginning January I, 1999 · 14% of the gross income from the gross gate fee or of any other fee for admission for the Go-~. Jr. Drag,ter and Boat Rental concession. Beginning January I , 2000 • 15% of the gross income from the gross gate fee or of any other fee for admission for the Go-Kart, Jr. Dragscer and Boat Rental concession. C. PRO :: P UTT SYSTEMS . INC . will be allowed to deduct the liability insurance cost (not to exce ed $2,000 annually) for Go-Kart and Dragster concessions from its monthly fee payments to the City of Englewood. D. Mountain Bike and ot her Trail Rental -15 % of the gross income for the term of the Agreement. E. Food and drink sales 10% of the gross inco me for the term of the Agreec,ent . All fees shall be due and payable within fifteen (15) days after the end of the prior month. Reports with s ufficient information and approval by the Dirc <to r of Financinl Services shall be made for each month the co ncession is operated. Failure to m:i ke timely payments as required 3hall cause :1 finance charge to accrue against the Operator and fo r the C:icy in :1.n amount tqual to one and one-half percent (1.5 %) of the unpaid balance per ruon th. Any such fail ure to make payment shall be conside red a material br•ach of this Agreem ent. Parking shall include those existing parking s paces presently available to the Englewoo d Municipal Golf Course . 6. Citv Particioation - In addition to those matters set forth elsewhere herein. the City shall also pay the charge for the water tap and the sewer tap . The water tap and sewer tap shall at all times be the property of the City of Englewood, The City shall pay for the installation of a 6.re hydrant within one hundred (lOO) feet of the clubhouse. The City shall pay for the ins tallatio n of the water and sewer lines. The Operator shall be esp onsible for all service charges on water and sewer service. -3 - 7. Utilities ond Security . The Operator shall be responsible for installation, provision and payment for all utilities (ucept water and sewer to the extent they are considered and construed to be utilities as set forth previously herein). Security shall be the responsibility of the Operator, who shall ensure that the public, and any trespasser(s), shall not occupy and use the concession and its premises when it is not open for bwiness. 8. Personnel and Maintenance. The Operator shall be responsible for providing any and all personnel for operation of the concession, and for proper maintenance thereof, sub1e ct to the City's approval as set forth above . The Operator shall be reasonable for maintaining that area two feet (2')·outside perimeter fen ce to the sole satisfaction of the City . The Ci ty shall be responsible for maintenance of remaining Ci ty property , including easements. 9. Sofetv of r.be Public The Operator shall operate the co nces sion so as to keep the public and its users safe fr om reasonably foreseeable harm . Any and all injuries or damage to the public s hall be rep orted to the City witlun one hour thereoi, or if s ame s ho ul d occur after City hours or on weeke nds , then by 8:30 a.m . the next working day. 10 . Obedience to :\H t aws and p3.y;,;nent 2f all Cha r& .. s Operator shall obey ,nd immediotely comply w', ~ ~uy a nd all applicable local, sta,, and fede ral requirements . ordinances , regufa ::vu..:, : ".'":, :.lws and ~tatute s. Operator shall also comply 1vith all ordinances . r•sol ·,r.,ons and rules of the City of Englewood. Oper:itor shall pay all ta.-c es. fees and ch:ll"g'!'J imposed by othe rs on it's concession ope rat ion . 11. P"rformonc:e Bond The Operotnr shall furnish ,o the City• perfo r:nancs bond in the amount of Ten Thousand uollars (S 10 .000) guar,nteeing faithful performance and payment of all terms , covenants, and conditions herein. as well as co mpliance with any and all applic:ib le local , state and federJ l requirements, regulations, rules , law s and statutes as well as in the event of constructio n of improvements . -4- • • • • • 12 . Indemni6c:ation and Insurance Before any constrUction or any activity related to construction s hall commence, the amount of wluch will exceed Ten Thousand Dollus ($10 ,000) in whole or in part, or any activity related to construction, the Operator s hall provide a payment and performance bond to insure payment of all obligations incurred as a result of said construction or activity. The performance bond shall be in a form approved by the City. The Operator shall before any construction begins procure and maintain in full force and effect at it's sole expense a public liability insurance policy naming the City aa an additional named insured. This policy shall remain in full force and effect continuoualy during this and any successive term of this Agreement, and it shall include comprehensive liability cow,rage a. follows : $1 ,000 ,000 for injury or death of any one or more persons : Sl million for inj 1uy or death occurring as a result of any one accident; Sl ,000 ,000 for property dru..~age : ~l.000,0 00 for product liability. A certificate evidencing said ir ~c r.1"·:e policy shall be kept on file at all times with the Cicy and it shall contain a provision ~hat it may not be altered, amended or canceled without fir st giving written notice to the City thirty (30) or more days prior thereto . Such ;,olicy or policies s hall co ntain no right of subrogation against the City . The Operator hereby indemnifies the City from any and all claims against it arising fro m any activities pur suant to this .-.\greement. The City owns and operates a munici pal go lf co urse nearby and e3ch party is res ponsible for its own operations . The Oper:i.tor agr ees to carry adequate lost business. ge neral bus iness, fire , theft, personal in jury and property damage in surance covei.ng all aspects of the concesei1Jn op e ratio n in :in amount and with a co mpa ny to be a.pp roved by the City Director of Financial Servic-.s. _.\.ll policy or policies s hall co ntain no right of subrogation against the Ci ty. 13 . Insnt:c tian 2£ Pren'i se-=. The Ci ty shall have the right to e,amine ~nd ins pect the premises. including, on reasonable notice , private office are as . 14. No ;\-:sirnment or Subletting The Operator , may not sell, assign . mortgJ.ge. sublet or otherwise co nvey, release or pass on any part of its interest in the co ncession without the prior permission of the City , which has a right of fir st refusal as set forth below . The Operator, may not suffer or cause a lien to be filed against the co ncession or any part thereof. The Operntor shall be responsible and liable to the City for any and all fees and pa yments to the City , ad well as any and all other terms and co nditions of this Agreement. Such assignment to the Bank/SBA is conditioned ,pan the City having a right of first refusal to approve s u ccessor Operator appointed by the Bank/SBA. If the City refuses a pr opos ed successor operator other than for cause, City will cash out the lo an. -5 - 15 . Material Breach The parties agree that the happening of any of the following events shall constitute a material breach of this Agreement and City may, at its election, terminate the Agreement upon the happening of any of the following events: a . Operator shall fail to maintain and operate the concession according to the terms of this Agreement. b . Operator shall fail to pay the City the fees provided in Paragrapba 4 or 5, whichever is applicable, within thirty (30) days of date when they are due. c. Operator shall deny the City the right to inspect the concession at reasonable times upon notice . d. Any •••ignment or transfer of any interest of Operator without the City's approval. e. Operator shall be bankrupt as defined by the laws of the United States, of America, be come insolvent, or a rec~iver , whether permanent or temporary, for all or s ubstantially all of the Operator's property s hall be appointed by any Court, or Operator shall make a general assignment for the benefit nf it's creditors, or a voluntary or involuntary petition under any bankruptcy law shall be filed with respect to Operator . f. Operator shall fail to keep in effect insurance as provided herein. 16. Riibt of Fir"t Refusal. In the event :bat the City gives its permi ssio n to the Operator to sell the concession, the City may exercise a first right oi' refusal as fo llows : Operator must present a bona fide offer of sale-purchase to the City. The City may then match or e,ceed the sale - purchase price and purchase the concessio n. 17. Effect ofTt:1nninarion bv Cjcy . lipon termination of this Agreement by the City upon a material breach, the City shall have the option for thirty (30) days following ,uch termination to purchase Ope_rator's leasehold improvements, 6.:ttures , signs, equipment and other property for 3 sum equal to the fair market value less all monies due to the City under this Agreement. Fair market value shall be determined by two ap praisers, one appraiser selected by the City and one appraiser selected by the Operator . If these two appraisers fail to agree on fair market value , then the two appraisers shall select a third appraiser who determine fa ir market value of the proper ty. If the City refuses to purchase the improvements then the Operator shall have thirty (30) days to remove the thtures and equipment. The City may withhold sufficient fi-nures and property in c•der to pay all monie s due to the City under this Agreement. Any sum to be paid shall be offset by any payment to third parties. -6- • • • • • • 18. Trade Name The trade name of RIVERSIDE MINIATURE GOLF CLUB shall remain at all times the property of Operator unless purchased by City. 19. Tenninarinn bv Oncrotor This Agreement may be terminated by Operator upon sixty (60) days' written notia, to the City. Operator shall, at it's option. have the right to remove all buildings , t'untiture, fixtures, signs, equipment and other property and leasehold improvements within thirty (30) daya of notia, of termination delivered to the City other than thoee improvements aupplied by City, which are water and sewer tap and fire hydrant. 20 . Peliverv TlPon Tenninarion - Subject to the terms of thia Agreement, Operator shall deliver the concession and premises to the City at termination of this Agreement in as good condition and state of repair as when rea,ived, except for ordinary wear and tear or loss or damage caused by act of God. 21. Force :\i[aiuett- Performance of this Agreement shall be excused if rendered impossible by act of God . 22. Attornev F"'CS Any breach or failure to pay any fee required b.ereby shall entitle the successful party, who was required to collect a fee sum or charge or enforce this Agreement , reasonable attorneys fees an:i costs of collection. SO AGREED . CITY OF E:-IGLEWOOD PRO :: P UTT, INC. By: fJ~J, Al ✓ ,Q..,, ,,.,,::_ ./ ~~ Secretary/Treasurer -7- BUILDING LEASE This !ease, dated , -r;; ,, • £ I '? '1'.r is between the CITY OF ENGLEWOOD, 3400 South Elati Street , Engle wood, Colorado 80110, as Landlord and PRO ::Ptm SYSTEMS , INC ., 11s Tenant. In co nsideration of the payment of the rent and the performance of the covenants and agreements by the Tenant set forth herein, the Landlord does hereby lease to the Tenant the following des cribed premises situate in Arapahoe County, in the State of Colorado; the address of which is tbe Clubhouse Building at Riverside Miniature Golf Course 2201 West Oxfor d Avenue , Englewood, Colorado 80110. Said premises, with all the appurtenances, are leased to tbe Tenant from tbe date of signing through September 1, 20 10, at and for a rental of Three Thousand Four Hundred Dollars ($3 ,400.00 ) per year, payable according to the following schedule: $100.00 per month for the months of January, February and March October, November and December $200 .0 0 per month for the months of April and September $600 .00 per month for the months of May, June, July and Augu,t. The Tenant may with a pproval of the Landlord extend this lease in co njunction with the 1995 .weement for Operation of :Miniature Golf Course :ind Go Kart Track between the City oi Englewood :1nd Pro ::Putt System s, Inc., notice of extension shall be giv en in writing be iore the termination oi this lease. THE TI:.'1,UiT, IN CONS IDERATIO N OF THE LEASING OF THE PREMISES AGREES A.S FOLLOWS: 1. To pay the rent for the premi ses above-described. 2. To kee p the im proveme nts upo n the premi ses including, dramage, storm sewer; fences, sewer con nection s , plum bing, wiring and glass in good re pair, all at Tenant's exp ense, and at the expiration oi this lease to surrender the premi ses in as _good a condition as when the Tenant entered the premises , loss by 6re, inevitable accident, and ordinary wear exc•pted. To ke ep all si dewo.lks on and around the premises free and clear of ice and snow, and to keep the entire premises fr ee from all litter, dirt, debris and obstructions; to keep the premi ses in a clean :ind sanitary condition as required by the ordinances of the city ond count-; in which the property is situated with no storage of derelict or junk vehicles . 3. To sublet no part of the premises, and not to assign the l,.ase or any interest therei>.. without the written co nse nt of the Landlord. 4. To use the premises for no purposes prohibited by the laws of th,e United States or the State of Colorado , City of En glew ood, or oi the ordinances of the city or town in wbich said premises are located, and fo r no improper or questionable purposes whatsoever, _and to neither permit nor suffer :1ny di sorderly conduct, noise or nuisance bavini a tendency to annoy or di.turb any pe rs ons occupying' adjacent premises. 5. To neither bold nor attempt to hold the Landlord liable for any inj ury or damage, either pr~tim,te or remote, occurring through or caused by the repairs, alterations, injury or acddent to th e premises, or acljacent premises, or other parts of the above premises not herein de mis ed, or by reason of the negligence or default of the owners or occupants th<-reof or any other perso n, nor to hold the L:indlord li able for any injury or damaiie occasioned by defective ele ctric wiring, storm water, nor said premises to be 113ed for any purpose which would re nder the insur:inc e thereon vo id or the in surance risk more hazardous, nor make any alterations in or c:h.:inge s in , up on, or about a,jd ob ►aining the written consent of the Landl ord therefor. • • • • • • 6. To allo w the LJ.11d lor d to enter upon th e prem is es at J.11y reasonable hour. r r IS EXPRE SS LY l;:-I DERST OOD AND AGREED BETWEE:-1 LA.'IDLORD AND TE:-IA..'i T A.S FOLL OWS : 7. No assent, «pr ess or implied, to auy breach of any one or mor e of the agreements hereof shall be deemed or t:iken to be a waiver of any suc ceedi ng or ot her breach . 8. If, after th e «;,iution of this lease, the Tenant shall remain in possession of the premises and continue to pay ren t without ,1 written agreement as to such possession, then such tenancy shall be regarded as a month-to-month tenancy , at a monthly rental, payable in advan ce, equi valent to the last month"s ren t paid under this lease, and subject to all the terms and conditions of this lease. 9. If the premises are left vacant and a11y part of the rent reserved hereunder is not paid, then the Landlord may, without being obligated to do so, and without terminating this lease, retake possession of the said premises, making such changes and repairs as may be required, giving credit for the amount of rent so received less all expenses of such changes and r epairs, and the Tenant shall be liable for the balance of the rent herein reserved until the e:tpiro.t ion of the tenn of th.is lease. 10 . The Landlord acknowledges receipt of a deposit in the amount of S-0-. ll. At the Landlord's option, it sh c..1 1 be deemed a breach of this lease if the Tenant deiaults (a ) in the paymen t of the rent or any other mone t:u·y oblig,tion herein; or (b) in the pen·ormance of any ot.',er term or condition of this lease. The Landlord may elect to cure such defau lt and any expen s es of curing may be ,dded to the rent and shall bec ome immedia:.e ly due :ind pay able . In the eve nt th at t.'ie Landlord elects to decl are a breach of this lease, the Landlord shall have th e right to giv e the Tenant three (3) days wri t:en notice requiring payment of the rent or compliance wit.1 other terms or provisions Jf the les.~e . or deli very of the possessio n of the prem is es. In the event any default remains uncor.ec::ad after three (3) days wri tten notice, the Land lo rd, at Lan dlor d's option, m:iy decl are the term ended , repossess the premises, expe l t.he T enant and th ose cl a iming through or Wl C.er :.1.e Tenant and remove the effects of the Tenant, :ill •Ni t:lout being deemed gui lty in trespass or of a fo rcible entr:, and detainer an d ·Nit.i.out ;,r ej u ciice :.o an y other re m edie s to which t.i.e Landlo rd may be entitled. If at an y ;;i mt? th is lease is te rminate Wlder th is par::igr:iph , the Tenant agrees to pe acefully surrendec t~e ;,re :-:i ise s t o the Landlord immediately u pon te r:nination , and ii the Tenant rem ai ns in possession of the pr emises, the Tenant shall be d~emed guilty of unlawful detenti on of the premises . The Landlord shall be entitled to recover from the Tenant all damages by re:i.s on of the Tenant"; defaul t, including but not limited to the cost to recover and repossess th e ;,re mises, the expenses of re le eting, necess2r1 renovation and alteration expen ses, commist'ons and the rent for the balance oithe term oithis lease. 12. In the event of any dispute arising under the terms of this lease, or in the event of non- payment of an ? su."Ils arising under this lease and in the event the ruatter is turned over to an at::orney , t.',o party prevaili ng in such dispute shall be entitled, in addition 1:0 other damages or costs, to receive reasonable attorneys' fees from the other part'/. 13 . In the ~vent any payment required hereunder is not made within (10) da ys after the payment is du e, a late c~arge in the amount of five percent (5%) of the payment ,,..;n be paid by the Tenant. 14 . In the event of a condemnation or other taking by any go vernmental agency, all proceeds sh,ll be ;,ai d to the Landlord hereunder, the Tenant waiving all right to any such payments . 15. Th is le:,.,e is made with the express understandi ng o..nd agr eement that in the event the Tenant be co mes ins ol vent, the Lan cii ord ma y declare this lease ended , and all rights of the Tenant here under shall terminate and cease. 16. Tenan t shall insure the prem ises for public liabilk/ and property damage in the sum of Cne :Vlill ion Do ll ars with the City of Englewood as an addi tio na l insu· . d. -'.!- SHOULD ANY PROVISION of this lease V1olat1t any federal, state, or local law or ordinance, that provision shall be deemed amended '.o so comply with such law or · ordinance, and shall be construed in a manner so u to comply. This lease ,hall be binding on the parties, thei:· penonal represent.atives, successors and assigns. When used herein, the singular shall include thu plu.r:i.1, ar.-\ tho 115a of any gender shall apply to both genders . LANDLORD TENANTS CITY OF ENGLEWOOD PRO ::PUTl' SYSTEMS, INC . ~ (!lb,. J! ~ By~, 1,1/!r? _ Bv·~~ I --Scott m,pson STATE OF COLORADO ) )ss . c.;ouNTY OF ARAPAHOE ) The foregoing instrument wa.s acknowledged before me tlus .J.i!'3.ay of ~~ 1995, by Scott L. Simpson as President of Pro::Putt Systems, Inc . . IN WITNESS WH"..-:REOF, I have hereunto set my hand and affixed my official seal the day and year first a..,ove written. My commission expires : -'/.,'/....1.,0,.:./ ..... ?'_.,_7 __ 7 I . 3. • • • \ ' ' , ' . , ·_ l "' •. 1 ~ I , .. _ 1 · I -\ ·, ' 1641H Samord ~ ... Awon. co 10015 , ""°""J0J-69J.94n · Fu: J0l •l64-IU2 c,11 , no.J6J-ma .OFFER PURCHASE R IVERSIDE l\illNI GOLF AND GO-KARTS 4-18-02 On this dale , I, Jay Summey offer to Scott Simpson , owner of Riverside Miniature Golf and Go-Kart speedway , to purchase ex isting contract with the City of Englewo cd and the assets of Riv ers ide for S35 ,000 (thirty-five thousand dollars) I have attached an amortization schedule showing the terms of this offer. As li:ne i$ of the essence please give th is your immediate attention and consideration . Thank you tor this opportun ity . March 6, 02 Jerrell Black Bob Spada Scott & Debbie Simpson Options Concerning Contract Between City of Englewood And Pro Putt Systems Inc . 1) Sixty Day Written Notice : At this time we are projecting May 19, 02 as are last day of operation, thi s date would mean March 21 ,02 is the offic al notification date of termination . 2) If contract is termin ated We are requesting payment from the City of Englewood for two pe1minate lease hold improvments . First the go-kart main tenance ;hop at fair market vaule approx. (S 18 ,000 -S20 ,000 ) our cost of ,;onstrucrion minis labor. This building is in great condition and would have multi use for the Emtlewood Golf Course . Second is the outdoor Musko Overhead Ligthin g System and the electrical servic e to operate them at fair market value (SI 1,000-$13 ,000 ) our cost . This system lights the entire 3 acre property with bright white light. Today 's replacement cost would be well over S25 ,0 00 . 3) Pending : As of 3-5-0 2 there is one quaified buyer for the business at a price of 560 ,000 we ha ve a meeting with this party today. We will keep the City informed about this prospect. 4) As always time is of imponance for the operating season is upon us , and ways heavy on all options concerning this issue . Thank you for your concern in this matter . •