HomeMy WebLinkAboutAUGUSTA PORTS AUTHORITY
STATE OF GEORGIA )
COUNTY OF RICHMOND )
LEASE AGREEMENT
THIS LEASE AGREEMENT, made and entered into, effective the f.Q day of
j..tk.- , .~ tiO 7 by AUGUSTA PORTS AUTHORITY, hereinafter called "Lessor," and
MOBILE MARINE SERVICE, INC., a corporation organized and existing under the laws of
Georgia, hereinafter called "Lessee."
WIT N E SSE T H:
WHEREAS, Lessor is the owner of a building and real property more particularly described
in Exhibit "A" attached hereto and incorporated herein by reference, which is located at One Levee
Road in Augusta, Richmond County, Georgia; and
WHEREAS, Lessor wishes to lease to Lessee, and Lessee desires to lease from Lessor, said
building and property;
NOW THEREFORE, the parties hereto, for and in consideration of the mutual promises
herein contained, and other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, DO HEREBY AGREE, each for itself and its successors and assigns, as
follows:
1. LEASED PREMISES. Lessor, duly authorized, does hereby lease unto Lessee, and
the Lessee does hereby lease and obtain for the purposes herein set forth from the Lessor, for
Lessee's exclusive use, except as herein provided in Paragraph 15, the area described in the attached
Exhibit "A" (hereinafter called the "Leased Premises.") "Leased Premises" shall also include any
changes, additions, alterations, modifications and/or improvements on or to the Leased Premises
made in accordance with this Lease Agreement.
Said property and improvements thereon being shown on a sketch attached hereto as Exhibit
"A", which are commonly known as the "Old Georgia Ports Authority Building".
2. Term. Lessor hereby rents, leases and lets unto Lessee, and Lessee hereby rents and
leases from Lessor, the Leased Premises, for the rental and upon and subject to the terms and
conditions set forth herein, for an initial term of five (5) years, commencing December 1, 2006.
Lessee shall have the first option to renew this lease for an additional five (5) year term, subject to
the parties reaching agreement upon the rental for said renewal term. Said option shall expire on or
before September 30, 2011.
This Lease shall create a usufruct only and not an estate for years.
3.
RENTAL.
During the term of this Agreement, Lessee agrees to pay Lessor
monthly rental of One Thousand Two Hundred Dollars ($1,200.00) beginning December 1, 2006, for
the entire initial term hereof, payable in advance. The rental for any renewal term shall be negotiated
by parties.
4.
Utilities.
Lessee shall pay all charges for electricity, gas, water, sewer service,
sewer treatment, telephone and any other communication or utility service used in or rendered or
supplied to the Leased Premises throughout the term of this Agreement and shall indemnify Lessor
and hold it forever harmless against any and all liability or damages related thereto. Lessee
acknowledges there are no bathrooms on the premises and shall solely be responsible for renting and
maintaining port-a-Iet facilities.
5. Use of the Leased Premises. Lessee shall use the Leased Premises only for the
purpose of a boat repair service and other services incident to the marine business.
6.
Repairs and Maintenance.
Lessee shall maintain the exterior surfaces ofthe Leased
Premises, including any changes, additions, alterations, modifications and/or improvements made by
Lessee as provided in Section 8 hereof, normal wear and tear excepted. The Lessee shall keep the
Premises net, clean, free of trash and in good and well maintained condition with an attractive
appearance.
7.
Changes, Additions, Alterations, Modifications, Improvements.
Lessor agrees to
construct, or have constructed, a security fence in the back of the building, provided, however, such
fence shall not be greater than 100 fee in length. Lessee shall not without prior written consent of
Lessor, make any changes, additions, alterations, modifications and/or improvements, structural or
otherwise, in or upon any part of the Leased Premises. The foregoing shall not apply to any exterior
signs, notices, placement of machinery or equipment either attached or placed outside of the Leased
Premises. Lessee agrees to submit any and all plans for any changes, additions, alterations,
modifications and/or improvements to the Leased Premises to Lessor for approval before said
alterations, changes or additions are begun. Lessor shall not unreasonably withhold its approval of
said plans.
8. Title to Changes, Additions, Alterations, Modifications, Improvements. It IS
mutually understood and agreed that title to any changes, additions, alterations, modifications and/or
improvements, whether existing on the Leased Premises at the effective date of this Agreement or
added to the Leased Premises during the term of this Agreement, and to all of the building and
structures and all other improvements of a permanent character that may be built upon the Leased
Premises by the Lessee during the term ofthe Agreement shall remain the property ofthe Lessor and
that fee simple title to the same shall be vested in Lessor.
9. Inspection by Lessor. Lessor, its authorized agents or representatives shall have the
right to enter upon the Leased premises to make inspections during regular business hours when a
representative of the Lessee is present, or at any time in case of an emergency to determine whether
Lessee had complied with and is complying with the terms and conditions of this Agreement;
provided, however, that said inspection shall in no event unduly disrupt or interfere with the
operation of Lessee. Any deficiencies noted during the inspection shall be corrected in thirty (30)
days.
10. Taxes. Lessee shall pay any and all personal property taxes that may be assessed
against its equipment, merchandise, or other property located on or about the Leased Premises and
any franchise fees or other taxes which may be imposed or assessed against Lessee or its leasehold
interest.
11. Rules and Regulations. Lessee agrees that use of the Leased Premises shall be
conducted in compliance with all local, state and federal laws, the ordinances of Augusta, Georgia,
and the rules and regulations of the Augusta-Richmond County Commission and the Augusta Ports
Authority. Lessee further agrees to endeavor to conduct its business in such a manner as will
develop and maintain the good will and active interest of the general public.
Lessee specifically agrees that its operations shall be conducted in compliance with all
federal, state and local environmental laws, rules and regulations, and agrees to indemnify and hold
harmless Lessor (and each of Lessor's elected officials, officers, agents, employees and
representatives), from and against any claims, actions, demands or liabilities of any kind arising out
of or relating to Lessee's use of the Leased Premises.
12. Indemnity; Insurance. Lessee agrees to indemnify and hold harmless Lessor from any
and all claims in any way related to or arising out of any failure of Lessee to perform its obligations
hereunder or related to or arising out of any damage or injury to property or persons, occurring or
allegedly occurring in, on or about the Leased Premises during the period from the date of this
Agreement to the end of the Lease Term, including reasonable attorney's fees and expenses of
litigation incurred by Lessor in connection therewith. Lessee further agrees that the foregoing
Agreement to indemnify and hold harmless applies to any claims for damage or injury to itself and/or
any individuals employed or retained by it in connection with any changes, additions, alterations,
modifications and/or improvements made to the Leased Premises, and hereby releases Lessor from
liability in connection with any such claims.
Without limiting the foregoing, Lessee further agrees to maintain at all times during said
period, at Lessee's expense, comprehensive and general public liability insurance coverage against
claims for personal injury, death and/or property damage occurring in connection with the use and
occupancy of the Leased Premises or arising out of their ownership, improvement, repair or
alteration ofthe Leased Premises with limits of coverage of not less than $500,000 per occurrence.
Lessee shall also purchase and maintain in effect during the term of this Lease Agreement,
any extension or renewal of this Lease Agreement, policies of insurance written by a company or
companies qualified to do business in the State of Georgia, providing insurance coverage against fire
and casualty to the Leased Premises, which policies shall be in an amount equal and sufficient,
subject to approval by Lessor, to cover the value of the Leased Premises. Lessee shall increase such
property damages insurance coverage in an amount equal and sufficient to cover the value of any
additional changes, additions, alterations, modifications and/or improvements, structural or
otherwise, on the Leased Premises, should such changes, additions, alterations, modifications, and/or
improvements be made during the term, or any extension or renewal of, this Lease Agreement.
The cost of premiums for all policies of insurance required by this Lease Agreement shall be
paid by Lessee. Policies shall be jointly in the names of Lessor and Lessee, and duplicate copies of
the policies shall be delivered to Lessor.
All policies providing insurance coverage required to be maintained by Lessee hereunder
shall list Lessor, the Augusta Ports Authority, Lessee and their officers, agents, members, employees
and successors as named insureds, as their interests may appear, and shall be issued by an insurance
carrier or carriers licensed to do business in the State of Georgia and reasonably acceptable to Lessor.
All such policies shall provide that no act or omission of Lessee or its agents, servants, or employees
shall in any way invalidate any insurance coverage for the other named insureds. No insurance
policy providing any insurance coverage required to be provided by Lessee hereunder shall be
cancelable without at least 15 days advance written notice to Lessor. All insurance policies required
hereunder, or copies thereof, shall be provided to Lessor by Lessee.
13. Assignments. Lessee shall not, without the prior written consent of the Lessor, assign
this Lease or any interest thereunder, sublet the Leased Premises or any part thereof or permit the use
ofthe Leased Premises by any party other than Lessee. Any consent to one assignment or sublease
shall not destroy or waive this provision, and all later assignments and subleases shall likewise be
made only upon prior written consent of the Lessor. Subtenants or assignees shall become liable
directly to the Lessor for all obligations of Lessee, without relieving Lessee's liability.
14.
Default.
In the event that Lessee should fail to observe any of its covenants and
obligations as herein expressed or should Lessee abandon the Premises or cease to operate the
premises for the purposes set out herein, then upon the happening of such event, Lessor shall give
Lessee thirty (30) days notice to comply with the provisions of this Lease Agreement, or if the
conditions cannot be remedied with said thirty (30) days period to commence the remedy within said
thirty (30) day period and diligently pursue it to completion; and should Lessee fail to do so, Lessor
shall have the option to declare this Lease Agreement terminated and at once take possession ofthe
Leased Premises.
The rights and options given to Lessor under this Paragraph 14 shall not be construed to in
lieu of, nor restrictive of, any other rights which Lessor may have under the law for the enforcement
of this Lease Agreement.
The failure of Lessor avail itself of any remedy which it may have hereunder shall at no time
be construed to waiver of Lessor's rights.
15.
Quiet Enioyment, Ingress and Egress.
Lessor covenants and warrants that
Lessee, so long as it shall perform the duties and obligations herein agreed to be performed by it,
shall peaceably and quietly have, hold and occupy and shall have the exclusive use and enjoyment of
the Leased Premises during the term ofthis Lease Agreement and any extensions thereof; provided
however,
(a) The outside paved areas of the building would be available for
utilization by the Augusta Southern National competition. The outside paved
area between the Augusta Ports Building and the river would be available for
use for the Head of the South Regatta during the South Regatta to be held in
the fall annually;
(b) Two (2) no-wake buoys will be installed in front of the property;
( c) Augusta Southern Nationals will be allowed to store equipment in the
Augusta Ports Building for a small rental fee under the lease of Mobile Marine
Service, Inc. if the Augusta Southern Nationals Committee provides
appropriate security measures for the stored equipment; this does not apply to
any materials deemed chemical or hazardous that may affect the insurance
liability of Mobile Marine Service. Augusta Southern Nationals will provide
10 tickets for the event.
16. Leased Premises accepted "as-is". Lessee acknowledges and agrees that it has
inspected the Leased Premises prior to its execution ofthis Lease Agreement, that it is aware of the
condition ofthe Leased Premises as of the date of execution of this Lease Agreement, and Lessee
leases the Leased Premises "as-is."
17. Miscellaneous.
17.1 Notices.
All notices, demands, and requests which mayor are required
to be given by either Lessor or Lessee to the other shall be in writing and shall be deemed to have
been properly given when sent postage pre-paid by registered or certified mail (with return receipt
requested) addressed as follows:
If intended for Lessee:
MOBILE MARINE SERVICE, INe.
298 PREP PHILLIPS DRNE
AUGUSTA, GA 30901
If intended for Lessor:
AUGUSTA PORTS AUTHORITY
AUGUSTA, GA 30901
Either party may change the address and name of addressee to which
subsequent notices are to be sent by notice to the other given as aforesaid.
17.2 Exculpation; Indemnity. Wherever in this Agreement Lessor's liability is
limited, modified or exculpated or Lessee agrees to indemnify or hold Lessor harmless or have
Lessor named as an additional insured, the term Lessor shall mean and include the Augusta Ports
Authority and its members, officer, elected officials, agents, servants, employees and successors in
office.
17.3 Covenants Bind and Benefit Successors and Assigns. The provisions of this
Agreement shall be binding upon and inure to the benefit ofthe parties hereto and their respective
successors and permitted assigns; provided, however, that no one shall have any benefit or acquire
any rights under this Agreement pursuant to any conveyance, transfer, or assignment in violation of
any of its provisions.
17.4 Governing Law.
This Agreement shall be governed and interpreted by
the laws of the State of Georgia.
17.5 Venue. All claims, disputes and other matters in questions between all parties
arising out of or relating to this Agreement, or the breach thereof, shall be decided in the Superior
Court of Richmond County, Georgia. All parties, by executing this Agreement, specifically consent
to venue and jurisdiction in the Richmond County and waive any right to contest venue in the
Superior Court of Richmond County, Georgia.
18.
Entire Agreement.
This Agreement contains the entire Agreement of the parties,
and no representations, inducements, promises or agreements, oral or otherwise, between the parties
not embodied herein shall be of any force or effect. No failure of either party of any obligations
hereunder, and no custom or practice ofthe parties at variance with the terms hereof shall constitute
a waiver of either party's right to demand exact compliance with the terms hereof.
IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed, the
day and year first above written.
A~~JTY
fj2 By: Chairman
Attest:
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By: As Its President
My commission expires
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AUGUSTA PORTS AUTHORITY
January 16, 2007
The Honorable Deke Copenhaver
The Augusta Commission
REF: Renewal of Warehouse Lease and Marina Operating Agreement
Dear Mr. Mayor and Commissioners,
The Augusta Port Authority voted at it's December 13, 2006 meeting to renew the Warehouse
Lease and the Marina Operating Agreement as recommended by the subcommittee. Both
renewals are extentions of agreements already in place. Combined, these agreements generate
$2,700.00 per month for the City of Augusta.
Listed below are the highlights of each agreement.
Warehouse Lease - Pertains to the Old Ports building located on the river just below the
Boathouse. Lease agreement is for the Ports Warehouse Building and is a 5-year extension of
the previous lease which expired November 30,2006. The only exception is we left the lease
payment at $1,200 per month instead of upping to $1,500 per month.
Marina Operating Agreement - Pertains to the operating of the Riverwalk and Riverfront
Marinas by outside company. The Marina Agreement is for operating the Augusta Marinas. It is a
5-year extension to the agreement that expired Dec 31, 2006. The Ports Authority voted to keep
the payment at $1,500 per month instead of upping it to $1,700. We also added the 10th Street
Dock to the agreement as we have a tour boat interested in using that dock. Nothing else in the
agreement changed.
I apologize for the delay in bringing this matter to the commission. Being extentions of existing
agreements, there was some discussion as to what approval was needed. On the advice of Mr.
Shepard, we request that the commission approval of both agreements. Should you have any
questions regarding these agreements please feel free to contact me at 706-339-0944.
Sincerely,
Trent Mercer as Chairman