HomeMy WebLinkAbout1997 Ordinance No. 042-'• 10 b iv
BY AUTHORITY
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ORDINANCE NO. YJ-.
SERIES OF 1997
COUNCIL BILL NO . 48
INTRODUCED BY COUNCIL
MEMBER WAGGONER
AN ORDINANCE AMENDING THE GOLF COURSE RESTAURANT
CONCESSIONAIRE AGREEMENT BETWEEN THE CITY OF ENGLEWOOD
AND JOQ CORP ..
WHEREAS, the Englewood City Council authorized the current Agreement with
JOQ Corp. with the passage of Resolution No. 4 , Series of 1996 as the concessionaire
for the restaurant at the Englewood Golf Course ; and
WHEREAS , the current agreement requires a monthly payment of $1 ,500 .00 per
month for the months of November through March and $3650 per month for the months
of April through October totaling $33,050 .00 per year; and
WHEREAS , the current agreement also includes the monthly Golf Course Entry
Sign Lease payments of $37 .50 per month for a grand total of $33,500 .00 per year; and
WHEREAS , approximately 76 % of the revenue is generated during the months of
April through October; and
WHEREAS , this Ordinance would amend the current Agreement as to the same
annual total of $33 ,500.00; however, it would be collected during the heavy months of
April through October;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF ENGLEWOOD , COLORADO , AS FOLLOWS:
Section 1. The City Council of the City of Englewood , Colorado hereby approves the
amendment to the Golf Course Restaurant concessionaire Agreement between the
City of Englewood and JOQ Corp ., attached hereto as Exhibit A.
Section 2 . The Mayor is authorized to execute and the City Clerk to attest and seal
the Agreement for and on behalf of the City of Englewood , Colorado .
Introduced, read in full , and passed on first reading on the 19th day of May, 1997 .
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Published as a Bill for an Ordinance on the 22nd day of May, 1997 .
Read by title and passed on final reading on the 2nd day of June, 1997.
Published by title as Ordinance No. ~eries of 1997, on the 5th day of June,
1997.
I , Loucrishia A. Ellis, City Clerk of the City of Englewood, Colorado , hereby
certify that the above and foregoing is a true cop)/ S7f the Ordinance passed on final
reading and published by title as Ordinance No . Jl:;-Series of 997 .
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AGREEMENT
THIS AGREEMENT, hereinafter called "Lease", made and entered into this 15th day of
January, 1996, and as amended this 2nd day of June, 1997, by and between the CITY OF
ENGLEWOOD, a Colorado municipal corporation, hereinafter referred to as "City", and
JOQ CORP ., hereinafter referred to as "Concessionaire";
WITNESSETH:
WHEREAS, the City owns certain real property which is known as the Englewood
Municipal Golf Course, hereinafter called "Golf Course", and located in the City of
Sheridan; and
WHEREAS, City and Concessionaire desire to enter into a lease for the management of
the restaurant and lounge located at the Englewood Municipal Golf Course;
NOW, THEREFORE, for and in consideration of the mutual covenants hereinafter
appearing and of the payment of the monies hereinafter set forth , the parties hereto agree as
follows :
Section 1. STATEMENT OF INTENT.
The purpose of this Lease to provide snack bar, grill and bar services to the golfing
public and a quality, full-service restaurant facility offering breakfast, lunch and
dinner for group meetings, service clubs and informal evening dining.
Section 2 . GRANT .
The City hereby leases to Concessionaire the portion of its golf clubhouse presently
used as its restaurant concession, together with the improvements thereon, located at
2101 West Oxford Avenue, Sheridan, Colorado 80110, for the purposes of serving food
and beverages , including alcoholic beverages , and for locating optional vending
machines to be used in the purveyance of food, snacks or soft drinks, and
Concessionaire hereby leases from the City the Leased Premises and improvements
therein .
Section 3 . DEFINITION OF PREMISES.
The "Leased Premises" as referred to herein is defined to be the golf clubhouse
restaurant and lounge which is owned by the City of Englewood, Colorado. See
Exhibit "A". Proposed food and beverage operations shall also be allowed on the golf
course . Nothing herein gives Concessionaire any right to interfere with or
participate in the operation of the Golf Course as a golf course, i.e. fairways and
greens, Pro Shop, and all other golf course operations.
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Section 4. TERM OF AGREEMENT .
This Lease shall not be effective until Concessionaire has obtained a liquor license to
dispense alcoholic beverages pursuant to C.R.S . 12-47-101 et. seq. From the date of
signature until the liquor license is authorized by the proper officials, this Lease
shall be considered an Option to Lease that may not be terminated by either party,
except that if the liquor license is not granted and in operation on or before March 1,
1996 , the City may terminate this Option to Lease. The City hereby grants to
Concessionaire the right to hold the Leased Premises pursuant to the terms of this
Lease for a term of five years commencing on January 15, 1996, the date of this Lease,
and ending on January 15 , 2001, unless the term of the Lease is terminated as
hereinafter provided.
Section 5 . USE OF THE PREMISES.
Concessionaire shall have the right to possession of the Leased Premises for the
purpose of serving food and/or beverages, including alcoholic beverages , for
consumption on the golf course. However, nothing in this Lease shall be construed to
authorize that which is prohibited under United States, State or local law, ordinance,
code or regulation. The Leased Premises shall be used by the Concessionaire for the
purveying of alcoholic beverages , as the same may be authorized by and regulated
under the Colorado Liquor Code , C .R.S . 12-47-101 , et seq., and for the operation of a
restaurant. Concessionaire shall operate the Leased Premises in a careful , safe,
quiet, orderly, and businesslike manner. Concessionaire shall not use or permit the
premises to be used for any purpose that is prohibited under the laws of the United
States, statutes of the State of Colorado , or ordinances , regulations or codes of the City
of Englewood or the City of Sheridan.
Concessionaire shall provide food and/or beverages including alcoholic beverages
on the golf course through the use of sheds, a cart or a combination thereof. Shed
design shall be approved by the City Manager or his designee. Use of a cart shall not
interfere with the operation of the golf course. Service to the golfers on the course
shall be reviewed by the City Manager or his designee every six (6 ) months.
Entertainment of any nature that Concessionaire proposes on the premises shall be
subject to prior approval by the Englewood City Manager or his designee, which
approval shall not be unreasonably withheld. If the City determines any
entertainment to be objectionable, City shall notify Concessionaire in writing thereof
and Concessionaire shall terminate said entertainment immediately.
Section 6. EXCLUSIVE RIGHT TO USE PREMISES .
City hereby grants to Concessionaire the exclusive right to use the Leased Premises to
operate a restaurant and to purvey alcoholic beverages . The City shall not operate
any vending machine, dispense food , snacks or beverages without the express
approval of Concessionaire on the Leased Premises .
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• Section 7. MENU.
The Concessionaire shall provide an attractive menu for breakfast, lunch, and
evening meals listing meal items, beverages available and current pricing. Menus ,
pricing and changes to menus or pricing of menu items shall be reviewed and
approved by the City Manager or his designee.
Section 8. HOURS OF OPERATION.
a) From April 1st through October 31st of each year, the Concessionaire shall
operate the restaurant facility seven (7) days per week and during these months
shall be open each day to serve meals to the public from one-half hour before
dawn and shall remain open until at least 10:00 p.m.
b) During the months of November 1st through March 31st of each year, the
Concessionaire shall operate the restaurant facility seven (7) days per week
and during these months shall be open each day to serve meals to the public at
dawn and shall remain open until at least 8 :00 p .m.
c) Hours of operation may be modified with written approval from the City
Manager or his designee.
d ) Sunday closing at 8:00 p.m. is permi tted. Nothing herein shall be construed as
prohibiting the Concessionaire from being open for other hours in addition to
those stated in paragraphs "a" and "b" above. Restaurant may close on
Christmas Day .
e ) Concessionaire agrees to cooperate with the Golf Course Manager in
scheduling golf meetings and events that involve use of the grill, meeting room
and dining room . In the event of any disagreement, the matter shall be
referred to the City Manager or his designee.
f) MAINTENANCE , REPAIR AND REPLACEMENT .
1 . The City shall be responsible for the cost of maintenance, repairs and
replacement of the stove and oven , deep fat fryer , sinks, cabinets,
dishwasher, freezer, walk-in cooler, bar refrigeration, and snack bar
cooler unless such cost is due to negligence or other acts by
Concessionaire or employees of Concessionaire.
2. The Concessionaire shall be responsible for repairs and/or replacement
of light bulbs, furniture, small appliances, dishes , glasses, silverware,
and other equipment and miscellaneous cooking pots, pans and utensils .
g ) Concessionaire and or the City may temporarily close the restaurant facility
for cleaning, construction and maintenance under a mutually agreed upon
schedule.
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Section 9. RENT.
a) Concessionaire shall pay rent to the City in accordance with the following
schedule:
1. Effective on the date that Concessionaire begins business operation and
until the date that a liquor license is issued and effective, the
Concessionaire will pay rent to the City in an amount equal to twelve
percent (12%) of gross sales (excluding sales tax). Said rent shall be paid
on the 10th day of each month for sales made in the preceding month.
2. Commencing on April 1, 1997, the Concessionaire shall pay monthly rent
per the revised schedule as follows:
Month
January
February
March
April
May
June
July
August
September
October
November
Total
Revised
Schedule
$4,785.72
$4,785.72
$4,785.72
$4,785.71
$4,785.71
$4,785.71
$4,785.71
$33,500.00
The aforesaid fixed rent payments shall be paid each month, in advance,
on the first day of each month or on the first Monday of each month if the
first day falls on Saturday or Sunday.
A penalty fee of $10.00 per day or part thereof shall be charged for each day
or part thereof that the rent is past due, until 12:00 midnight on the 14th day
past due. If the rent payment is not received by midnight on the 14th day
past due, the Concessionaire shall be in violation of the terms of this
Agreement, and subject to termination.
b) In addition to the fixed monthly rental as specified in this Section, the
Concessionaire shall pay an amount equal to twelve percent 12% of all gross
sales, including any revenue derived from catering services originating from
the restaurant, in excess of $240,000 per calendar year, payable on or before
April 1st of each year.
c) For purposes of this Lease only, the following shall be excluded from gross
sales: (a ) all sales tax which is both collected by the Concessionaire and
remitted by the Concessionaire to any government or governmental agency;
and (b ) the amount of any refund or credit actually made or given by
Concessionaire for a sale, the amount of which sale had been included by
Concessionaire in Concessionaire's gross sales. For purposes of this Lease,
and except as provided above , "gross sales" shall mean (a ) the gross amount
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received by Concessionaire from all sales made on the Leased Premises and
golf course, including sales made from vending machines owned, leased or
operated by Concessionaire; and (b) all charges rendered by Concessionaire for
services, on the Leased Premises, including services performed on or within
the Golf Course; and (c) the gross amount received by Concessionaire from any
other source of income derived from the business conducted on the Leased
Premises and golf course. Along with the percentage payment, Concessionaire
shall send to City a statement which shall set forth the gross sales for the year
and the authorized deductions, if any, therefrom.
d) When the City meeting is an official business meeting with a meal, there
should be no set-up charge; an official City meeting without a meal shall be
charged a set-up fee . If the meeting is an unofficial meeting, with or without a
meal, the set-up fee can be charged.
For clarification, an official meeting is a meeting called to conduct official
business of the City.
Section 10. UTILITIES .
City shall provide all utility costs for operation with the exception of restaurant
telephone. Concessionaire shall be efficient in the use of utilities .
Section 11. JANITORIAL SERVICE AND TRASH REMOVAL .
City shall be responsible for the reasonable cost of trash removal and janitorial
service for the Leased Premises except for the kitchen, area behind the bar, office area
and storage areas .
Section 12. PARKING FACILITIES .
a ) The existing parking facility adjacent to the Restaurant concession
(hereinafter called "parking facility") shall be open for use by Concessionaire
and its customers ; such right of use of the said parking facilities shall be non-
exclusive right. City shall mark three parking spaces of the parking facility to
indicate that they are reserved for use by Concessionaire .
b) City shall at its own expense maintain the parking facility, which shall
include snow removal when necessary.
Section 13. SIGNS.
The City and the Concessionaire shall share proportionately in the cost of
installation and maintenance of a sign or signs at a location(s ) and containing
language that is mutually agreeable.
Section 14. PHYSICAL FACILITY AND EQUIPMENT.
City agrees to provide space, fixtures, equipment and furniture for an equipped
kitchen, bar, lounge area, grill , snack bar and two dining/meeting rooms .
Concessionaire agrees not to move existing partitions separating dining area and
meeting room without the written permission of the City Manager or his designee.
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Section 15 . ADDITIONAL FACILITIES AND EQUIPMENT.
Concessionaire shall have the right to install additional facilities and equipment
with the consent of the City Manager or his designee. Cost for same shall be by
mutual agreement of the parties.
Section 16 . SECURITY.
Concessionaire is responsible for the obtaining of theft insurance covering all food,
liquor, and other supplies and personal property of Concessionaire. Such policies
shall contain no right of subrogation against the City. Concessionaire shall provide
a copy of the policy to the City Manager or his designee.
Section 17 . PERSONNEL.
a ) Concessionaire shall at its own expense employ such qualified personnel as
may be necessary for the concession operation and shall require all personnel
to be clean, polite, and courteous in their transactions with the public.
b ) Concessionaire shall give personal supervision and direction to the operation
of the concession and, when absent, keep competent personnel in charge.
c ) City shall not be responsible for the wages or salaries of any employee or
representative of Concessionaire, nor for any debts , liabilities or other
obligations of Concessionaire.
d ) Neither the Concessionaire nor the employees who perform services pursuant to
the Agreement shall be considered employees, servants or agents of the City of
Englewood as a result of the performance of services under the Agreement.
e ) Violence and acts prohibited by law committed by Concessionaire or employees
of Concessionaire shall cause immediate termination of the Lease.
Section 18 . LICENSES AND PERMITS.
Concessionaire , at its own expense, shall secure any and all licenses and permits for
food services and purveyance of alcoholic and non-alcoholic beverages .
Concessionaire agrees to promptly initiate an application and obtain a Hotel and
Restaurant Liquor License pursuant to C.R.S. 12-47-101 et seq. Concessionaire shall
have the responsibility of the enforcement of all liquor laws and regulations on the
premises.
Concessionaire shall reimburse the City for all license fees it has paid to Sheridan
and the State of Colorado .
Section 19. COMPLIANCE WITH STATE AND CITY HEALTH CODES.
Concessionaire shall keep all concession areas in a clean and sanitary condition at
all times and shall comply with all state, county and city health laws relating to the
dispensing of food and beverages.
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Section 20 . INSURANCE/INDEMNIFICATION.
a ) Concessionaire agrees to furnish to City a performance bond in the amount of
Fifty Thousand Dollars ($50 ,000 .00 ) guaranteeing faithful performance by
Concessionaire of all terms, covenants, and conditions herein contained and
compliance with applicable City ordinances. Said bond shall be furnished as of
the date of execution of this Lease.
b ) Concessionaire shall at Concessionaire's own expense keep in full force and
effect during the term of this Lease statutory Workmen's Compensation
coverage.
c ) INDEMNIFICATION. Concessionaire agrees to indemnify and hold
harmless the City of Englewood, its officers , employees , insurers, and self-
insurance pool , from and against all liability, claims , and demands , on
account of injury, loss or damage, of any kind whatsoever, which arise out of or
are in any manner connected with concessionaire , if such injury, loss, or
damage is caused in whole or in part by the act, omission, or other fault of
concessionaire , or any officer or e mployee of concessionaire. Concessionaire
agrees to investigate, handle , respond t o, and to provide defense for any such
liability, claims, or demands at the sole expense of concessionaire , and agrees
to bear all other costs and expenses related thereto , including court costs and
attorney fees, whether or not any such liability, claims , or demands alleged are
groundless , false , or fraudulent .
d ) INSURANCE.
1 . Concessi onaire is to procure and maintain, at its own cost, a policy or
policies of insurance sufficient to insure against all obligations assumed
by Concessionaire pursuant to this Lease.
2 . Concessionaire shall procure and continuously maintain the minimum
insurance coverage's listed below , with the forms and insurers acceptable
to t he City of Englewood . In the case of any claims-made policy, the
necessary retroactive dates and extended reporting periods shall be
procured to maintain such continuous coverage.
(a ) General liability and errors and omissions insurance with
minimum limits of ONE HUNDRED FIFTY THOUSAND
DOLLARS ($150 ,000.00 ) per each person and SIX HUNDRED
THOUSAND DOLLARS ($600 ,000 .00 ) per each occurrence, plus
an additional amount s ufficient to pay related attorneys' fees and
defense costs.
(b ) Liquor Legal Liability Insurance, with minimum limits of
$500 ,000.00 for injury or death of any one person; $1 ,000 ,000 .00 for
injuries or death occurring as a result of any one accident;
$50 ,000 .00 for property damage; and $500 ,000 .00 for products
liability. A certificate evidencing said insurance policies shall
be kept on file with the Clerk of the City and shall have a provision
that the same shall not be altered, amended, or canceled without
first giving written notification thereof to the City thirty days prior
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thereto. Concessionaire further agrees to indemnify the City for
any claims brought against the City because of or on account of
Concessionaire's operation.
3. Fire and Extended Coverage Insurance shall be provided by the City on
the Club House building, and extended buildings included in Leased
Premises, only. Concessionaire shall be solely responsible for securing
and paying for insurance coverage on those improvements and contents
belonging to Concessionaire located in or on the Leased Premises .
Concessionaire hereby expressly waives any cause of action or right of
recovery which Concessionaire may hereafter have against City for any
loss or damage to Leased Premises or to any contents or improvements
thereto belonging to either party, caused by fire or explosion.
4 . The policies required above shall be endorsed to include the City of
Englewood and the City of Englewood's officers and employees as
additional insured. Every policy required above shall be primary
insurance, and any insurance carried by the City of Englewood, its
officers, or its employees, or carried by or provided through any self-
insurance pool of the City of Englewood, shall be excess and not
contributory insurance to that provided by Concessionaire.
5. The certificate of insurance provided to the City of Englewood shall be
completed by the concessionaire's insurance agent as evidence that
policies providing the required coverage's, conditions , and minimum
limits are in full force and effect, and shall be reviewed and approved by
the City of Englewood prior to commencement of the Agreement. No other
form of certificate shall be used. The certificate shall identify this
Agreement and shall provide that the coverage's afforded under the
policies shall not be canceled, terminated or materially changed until at
least 30 days prior written notice has been given to the City of Englewood.
The completed certificate of insurance shall be sent to:
City Clerk
City of Englewood
3400 South Elati Street
Englewood, Colorado 80110
A certified copy of any policy shall be provided to the City of Englewood at
its request.
6 . The parties hereto understand and agree that the parties are relying on,
and do not waive or intend to waive by any provision of this Agreement,
the monetary limitations (presently $150,000.00 per person and $600,000 .00
per occurrence ) or any other rights , immunities , and protections provided
by the Colorado Governmental Immunity Act, C .R.S. 24-10-101 et seq., as
from time to time amended, or otherwise available to the parties, their
officers , or their employees.
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A certificate evidencing said insurance policy shall be kept on file with
the City Clerk of the City and shall have a provision that the same shall
not be altered, amended, or canceled without first giving written
notification thereof to the City thirty days prior thereto. Concessionaire
further agrees to indemnify the City for any claims brought against the
Ci ty because or on account of Concessionaire 's operation .
Section 21. FIRE OR NATURAL DISASTERS.
In the event fire or natural disaster renders the Club House and its concession
facilities inoperable , the Concessionaire shall be released from the terms of
compensation to be paid the City until such time as the Club House and i ts concession
facilities are declared open and operable by the City. If in the event such concession
facilities are not open and operable within a period of thirty (30) days from the time of
such disaster, Concessionaire has the right to terminate its contract and Lease with
the City under Section 24, Termination of Lease , contained herein.
Section 22. TENANT RECORDS .
Concessionaire sha ll keep and maintain complete and accurate records and
accounts of its business on a calendar year basis . A monthly report shall be
generated providing a breakdown of "gross sales" into the following categories:
Restaurant Operations ,
Catering Operations ,
Bar Operations .
Such records shall be maintained in a ccordance with generally accepted accounting
principles and shall be audited annually by an independent accountant certified in
the State of Colorado . The records shall clearly show Concessionaire's gross sales ,
as defined in Section 9(c ) of this Agreement, including proceeds from all catering
activities . Gross sales shall be divided in restaurant operations , catering operations
and bar operations. Such records and accounts , including all s ales tax reports that
Concessionaire furnishes to any government or governmental agency shall be made
available for inspection at any reasonable time upon request of the City, the City's
auditor, or other authorized representative, and a copy of such annual audit,
including all written comments and recommendations of such independent
accountant, shall be furnished to the City Clerk within 90 days of the close of the fiscal
year being so audited. Concessionaire shall at this time pay the additional rent as
specified in Section 9(b ) of this Agreement along with a separate statement from the
auditor stating the gross sales of Concessionaire.
Section 23 . TERMINATION OF LEASE.
a ) This Lease may, at any time, be terminated by either party upon ninety (90 ) days'
written notice to the other without cause.
b ) The parties may terminate the Lease by giving thirty (30) days' written notice of
a violation of paragraphs 5, 7, 8, 9 , 10 , 11, 12 , 13, 14, 15 , 16 , and 17 .
c) Violation of paragraphs 18 , 19, 20 , and 21 shall be grounds for immediate
termination of the Lease.
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Section 24 . DELIVERY AND REMOVAL UPON TERMINATION.
Concessionaire will deliver the premises at the termination of this Lease in as good
condition and state of repair as when received, except for ordinary wear and tear or
loss or damage caused by an act of G-Od. Upon termination, Concessionaire shall
have the right to remove any supplies or personal property belonging to or installed by
the operator, subject, however, to any valid lien or claim which City may have for
unpaid fees. Provided also that if said removal causes any damage to the premises ,
said Concessionaire will repair the same in a proper and satisfactory manner at its
own expense.
All liquor licenses shall be transferred to the City of Englewood. At no time shall
Concessionaire terminate, alter or surrender the liquor license without approval of
the City of Englewood. The Concessionaire shall be subject to injunction to prevent
surrender or injury to the liquor license . Upon termination, the attached Power of
Attorney shall be operative and shall allow the City to operate the establishment
pursuant to law. In the event the liquor license is transferred to the City of
Englewood, the City shall pay the Concessionaire $2 ,500 .00 less any offsets allowed by
the prior provisions of this Agreement.
Section 25 . NOTICES .
All notices , demands and communications hereunder shall be personally served or
given by certified or registered mail, and:
A. If intended for City shall be addressed to City at:
City of Englewood
Attention: City Manager
3400 South Elati Street
Englewood , Colorado 80110
with a copy to:
City of Englewood
Attention: City Attorney
3400 South Elati Street
Englewood, Colorado 80110
B . If intended for Concessionaire shall be addressed to Concessionaire at:
JOQ CORP .
Julie L. Quinlivan, President
John W . Quinlivan, Secretary
7229 West Chestnut Drive
Littleton, Colorado 80123
with a copy to:
R. Jerold Gerome , Esq.
550 South Wadsworth Blvd., #300
Lakewood, Colorado 80226-3117
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C . Any notice given by mail shall be deemed delivered when deposited in a United
States general or branch post office, addressed as above, with postage prepaid, or
when served personally at the applicable address.
Section 26 . ENTIRE AGREEMENT.
This Lease, together with the exhibits attached hereto:
A . Contains the entire agreement between the parties; and
B . Shall be governed by the laws of the State of Colorado.
Section 27. SEVERABILITY.
If any clause of provision of this Lease is illegal, invalid or unenforceable under
present or future laws effective during the term of this Lease, then and in that event, it
is the intention of the parties hereto that the remainder of this Lease shall not be
affected thereby. It is also the intention of the parties to this Lease that in lieu of each
clause or provision of this Lease that is illegal, invalid or unenforceable, there be
added as a part of this Lease a clause or provision as similar in terms to such illegal,
invalid or unenforceable clause or provision as may be possible and be legal, valid
and enforceable .
Section 28. CAPTIONS.
The caption of each Section is added as a matter of convenience only and shall not be
considered in the construction of any provision or provisions of this Lease.
Section 29 . BINDING EFFECT.
All terms , conditions and covenants to be observed and performed by the parties
hereto shall be applicable to and binding upon their respective heirs, administrators ,
executors , successors and assigns .
IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and
seals as of the day and year first above written.
CITY OF ENGLEWOOD , COLORADO
"City"
Thomas J. Burns, Mayor
ATTEST :
Loucrishia A. Ellis , City Clerk
JOQ CORP .
"Concessionaire"
Julie L. Quinlivan, President
John W. Quinlivan, Secretary
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COUNCIL COMMUNICATION
Date Agenda Item Subject
May 19 ,1997 10 a v Amendment to Restaurant
Contract-Golf Course
Initiated By Staff Source
Department of Parks and Recreation Jerrell Black, Director of Parks and Recreation
Bob Burgener, Golf Course Manager
COUNCIL GOAL AND PREVIOUS COUNCIL ACTION
Resolution #4, Series of 1996-Approval of Restaurant Contract JOQ Corp
RECOMMENDED ACTION
Staff recommends passage of an Ordinance t o amend existing contract agreement
Section 9, Paragraph 2 which pertains to the schedule of monthly rent payments .
BACKGROUND, ANALYSIS, AND ALTERNATIVES IDENTIFIED
The current contract requires a monthly payment of $1500 .00 per month for the months
of November through March and $3650.00 per month for the months of April through
October for a total of $33 ,050.00 per year. Also included in this schedule are t he
monthly Golf Course Entry Sign Lease payments of $37 .50 per month for a grand total
of $33 ,500 per year. Since approximately 76% of the revenue is generated during the
months of April through October we are requesting the agreement be amended to where
the total annual rent of $33 ,500.00 would be collected during these heavy income
months . See attached payment schedule .
FINANCIAL IMPACT
The total dollar figure would remain unchanged , however this would be establishing a
three month building and sign rental deposit.
LIST OF ATTACHMENTS
Current Restaurant Agreement
Proposed Payment Schedule
Golf Course Entry Sign Lease
CITY OF ENGLEWOOD
GOLF COURSE e RESTAURANT LEASE CALCULATIONS -1997
(Lease payments due the first day of the month . Please make payments to the
City of Englewood .)
TOTAL LEASE
RENT ORIGINAL SIGN ORIGINAL PAYMENT REVISED
SCHEDULE SCHEDULE SCHEDULE SCHEDULE
JAN 1,500 .00 37 .50 1,537 .50
FEB 1,500 .00 . 37 .50 1,537 .50
MAR 1,500 .00 37 .50 1,537 .50
APR 3 ,650.00 37 .50 3 ,687.50 4 ,785 .72 DUE 4/1
MAY 3 ,650.00 37 .50 3,687 .50 4 ,785 .72 DUE 5/1
JUN 3 ,650 .00 37 .50 3 ,687 .50 4 ,785 .72 DUE 6/1
JUL 3 ,650 .00 37 .50 3,687 .50 4 ,785 .71 DUE 7/1
AUG 3 ,650 .00 37 .50 3,687 .50 4 ,785 .71 DUE 8/1
SEP 3 ,650 .00 37.50 3,687.50 4,785 .71 DUE 9/1
OCT 3 ,650.00 37 .50 3,687 .50 4 , 785 . 71-/ DUE 10/1
NOV 1,500 .00 37 .50 1,537 .50
DEC 1,500 .00 37 .50 1,537 .50
TOTAL 33 ,050.00 450 .00 33 ,500 .00 33 ,500 .00
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GOLF COURSE ENTRY SIGN LE.ASE
THIS AGREEMENT, is made the _dfday of _ _::~.u...::c..::>.-_ ___, 1996, between the
CITY OF ENGLEWOOD (hereinafter City) and JO ORP./Q's TEE II GREEN
(hereinafter Q's).
I. PROPERTY COVERED:
This Lease shall be for space on the sign located at the corner of entry way to the
Englewood Golf Course at 2101 West Oxford Avenue (hereinafter Entry Sign).
Design of the Entry Sign is attached hereto and incorporated herein.
II. TERM OF THE LEASE :
This Lease shall run from passage of this Lease by the Englewood City Council
to the termination of the individual Lease Agreement of Q's, Resolution No. 4,
Series of 1996.
III. THE LEASE PAYMENT:
Q's shall pay $37.50 per month or a pro-rata share of that month. The Lease
payment shall not result in ownership or in any property right to the Entry
Sign. This payment is due on the same day as the monthly check as provided in
Resolution No . 4, Series of 1996, for Q's. Payment may be made by in a single
check so long as a breakdown of the payment is provided. The payment should
be made to the City of Englewood, Financial Services Department, 3400 South
Elati Street, Englewood, Colorado 80l10.
IV. ENTRY SIGN DESIGN:
Q's shall limit their advertising messages to those of the present design and
that relate directly to the on-site amenity. Any change in the current design
shall be approved in writing by the City.
V. If the entry Sign is inoperable for 30 days or more, no payment shall be required
until the entry Sign is fully operational.
VI. OPERATION OF SIGN:
It shall be at the sole discretion of the City to repair, replace or abandon the entry
Sign completely due to damage caused by vehicle collision or acts of God.
VII. UTILITY SUPPLY:
It shall be the sole responsibility of the City for all electrical wiring and power
supply to the Entry Sign and all utility charges directly related to the operation
of the Entry Sign.
VIII. TERMINATION OF AGREEMENT:
Any party may terminate this Agreement without cause as to the Entry Sign by
giving the other party 60 days prior written notice of its intent to do so.
IX. FAILURE TO MAKE PAYMENTS :
The City may, at its option , after having given Q's seven days prior written
notice and regardless of the provisions of No. VIII, terminate this Agreement if
Q's fails or refuses to make Lease payments in accordance with the provisions
hereof, or if Q's fails or refuses to perform any other obligation imposed upon it
hereunder, or if either becomes insolvent, files for voluntary petition and
bankruptcy, makes an assignment for the benefit of creditors, is adjudicated a
bankrupt by any court of competent jurisdiction, permits a receiver to be
appointed for its business or permits or suffers a material disposition of its
assets .
X. This Agreement constitutes the entire Agreement and understanding between
the parties concerning the Entry Sign regardless of any previous writings or
oral understandings, and its terms will not hereinafter be altered by any oral
Agreement or informal writing nor by failure to insist upon performance, or
failure to exercise any rights or privileges. Alterations, additions, or changes
in this Agreement will be accomplished only by written endorsement,
amendment, duly executed by all parties .
CITY OF ENGLEWOOD
Thomas, J. Burns, Mayor
ATTEST:
Loucrishia A. Ellis, City Clerk
JOQ CORP.
By: Date: -~6~-_J_l_-_7~~---
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