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HomeMy WebLinkAboutAUGUSTA AVIATION COMMISSION TAILWINDS LOUNGE , . . . STATE OF GEORGIA ) COUNTY OF RICHMOND ) THIS LEASE AGREEMENT, made and entered into this /'� day of +.�� , 2006 by and between AUGUSTA, GEORGIA, a political subdivision of the State of Georgia (hereinafter referred to as "Augusta") acting by and through the AUGUSTA AVIATION COMMISSION (hereinafter called "Lessor") and Tailwinds Lounge, (hereinafter called "Lessee"); WITNESSETH: WHEREAS, Augusta is the owner of Augusta Regional Airport at Bush Field, which is under the direction and control of the Lessor, said Bush Field being located in the County of Richmond, State of Georgia; and WHEREAS, the Lessor wishes to enter into a Lease for a certain portion of the Airport premises in the interest of furthering and carrying out its purpose in the operation of the airport and in the promotion of aviation in the interest of the public, and the Lessee desires to obtain a Lease for certain premises located at the Airport for food service. NOW, THEREFORE, the parties hereto for and in consideration of the mutual promises herein contained, do hereby agree each for itself and its successars and assigns as follows: Section 1. Premises. The Lessor does hereby lease and let to Lessee, and the Lessee, for its exclusive use, does hereby lease and obtain from the Lessor for the purposes hereinafter set forth that portion of the Airline Terminal Building known as the Food Concession ' 1 , . (Secure) and Food Concession (Non Secure) area and shown on Exhibit "A" (hatched in red), being hereinafter called the "Premises". Exhibit "A" is attached hereto and made a part hereof. [NOTE: plat is not attached] Section 2. Term. Subject to the terms, provisions, and conditions hereof, this Lease Agreement shall be for a term of two (2) years with a one-year option to renew commencing on October l, 2007 or final occupancy of the terminal whichever comes first. Section 3. Rental. As rental for the Premises, Lessee agrees to pay to the Lessor monthly the greater of the sum of $750.00 or five percent (5%) of the gross revenue, less applicable sales tax. In determining gross revenue from the operation of said business for the purpose of computing the percentage rental, gross revenue shall mean all revenue or income received or recorded to be received resulting from Lessee's operation on the Premises including, but not limited to, revenue from cash transactions, charge accounts locally controlled or billed through central offices, credit card transactions, and any other form of billing used in the transacting of business by Lessee on said Airport. Lessee agrees during the term of this Agreement to submit to Lessor monthly statements of gross revenues. Rental payments and statements of gross revenue are to be submitted on or before the tenth (lO day of the month following the month within which the gross revenue hereinabove described has been realized or rental payment becomes due. Lessee further agrees that complete books and records of Lessee's operation reflecting every phase of activity in connection with this Lease shall be maintained by Lessee. 2 . ` , . 1 Said books and records shall be subject to inspection and audit by Lessor at any time during the normal working day. Upon request, Lessee shall provide to Lessor a statement verifying monthly gross revenues as previously reported by Lessee to the Lessor. Said verification shall be compiled by a competent and registered accountant. Section 4. Use of the Premises. Lessee shall use the Premises only for the purpose of operating a dining room, coffee shop, cocktail lounge, and other Airport Terminal food and beverage related activities. Section 5. Operation of the Premises. Lessee shall provide adequate qualified personnel, equipment, and resale products in such a manner as to develop and maintain the good will of the general public utilizing the Airport. All prices charged the general public for the services rendered upon the Premises shall be commensurate with and in no case in excess of the highest charged at the principal air carrier airports serving the cities of Columbia, South Carolina, Charleston, South Carolina, Greenville-Spartanburg, South Carolina, Savannah, Georgia, and Tallahassee, Florida. Lessee shall operate the Premises seven (7) days per week, including holidays, for the following hours: open one (1) hour prior to the first scheduled departure and remain open until the last scheduled departure. No change in the opening and closing hours shall be made without the prior written consent of the Lessor. 3 . Lessee may not, without the prior written consent of Lessor, install or operate any coin operated vending machines, including those dispensing or providing music or entertainment. Section 6. Additions, Alterations, Changes, and Improvements. Lessee shall not, without the prior written consent of Lessor, make any additions, alterations, including painting and decorating, changes, or improvements, structural or otherwise, in or upon any part of the Premises. Lessee shall submit in writing to Lessor plans and specifications for any such proposed additions, alterations, changes, or improvements and no work shall be commenced thereon until such time as Lessor's written consent has been obtained. Upon the expiration of the lease, Lessee shall, at Lesson's option, return the premises in the same condition as it existed at the commencement of the lease, or any such additions, alterations, changes, or improvements made by Lessee, excluding trade fixtures, shall become the property of the Lessor upon the termination of this Lease, whether by lapse of time otherwise, and shall be surrendered to Lessor at the time of taking possession of the Premises by Lessor. Lessee shall not attach or install any fixtures, equipment, posters, signs, pictures, advertisements, etc. to the interior or exterior of the Premises or in the public view without the prior approval of Lessor. Section 7. Cleanine. Lessee shall be responsible for the cleaning of the Premises. Cleanliness measures shall conform to all city, state, and federal health regulations, 4 including but limited to those regulations relating to the preparation, storage and serving of food and food products Lessee shall be responsible for the handling, preparation, and storage of all items sold by the Lessee for consumption by the public in accordance with USDA guidelines, as well as all city, state, and federal health regulations. Section 8. Maintenance and Repair. Lessee accepts the Premises and the equipment installed therein "as is" and in their present condition and agrees to maintain them throughout the term of this Lease. In the event installed equipment owned by Lessor and used by Lessee is determined to be unserviceable, then such equipment shall be returned to Lessor. If the equipment should need replacing, it is the responsibility of the Lessee not the Lessor to replace this equipment. Lessor shall be responsible for and shall pay for all repairs and maintenance which may be necessary to the exterior building walls and roof, except plate glass and except where the need for any such repairs is due to act of Lessee or any of Lessee's employees, agents, representatives, contractors, or invitees, in which case Lessee shall be responsible for and shall pay for the costs of such repairs and maintenance. Lessor reserves the right to enter upon the Premises at any time during the normal working day for the purpose of making inspections, further developing, and improving said Premises. Section 9. Utilities. Lessee shall pay for all utilities used and required in connection with the conduct of its business on the Premises. In the event separate metering of utilities is not available, Lessor shall have the right to prorate utility charges to Lessee on a fair and equitable basis, with Lessor's prorations being conclusive and final. 5 Section 10. Rules and Regulations. Lessee agrees that use of the leased Premises shall be conducted in conformity with all local, State, and Federal laws and published or written Airport regulations and procedures. It is further agreed that Lessor's designated Manager's (who shall be at all times in full and complete charge of said Airport in its entirety) directions as to policy and procedures shall be final and conclusive upon Lessee. Section 11. Taxes, Permits, and Licenses. Lessee shall be responsible for and shall pay all taxes which may be levied or assessed against the machinery, equipment, or other personal property owned or used by Lessee and located on the leased Premises. Lessee shall not be required to pay any real property taxes. Lessee shall be solely responsible for purchasing and maintaining all applicable licenses and permits (including liquor license) necessary for the operation of the entire Premises herein leased. In the event any necessary license shall be finally denied to or revoked from Lessee, this lease shall terminate. Section 12. Insurance. Lessor shall not be liable to Lessee or to Lessee's agents, patrons, visitors, subtenants' employees, or contractors for any damage to person or property caused by any act of negligence of Lessee or any of Lessee's directors, offficers, agents, contractors, servants, or employees or for damages resulting from business activities conducted by Lessee on the leased Premises. Lessee agrees to obtain and keep in effect at all times during the term of this Lease insurance coverage as follows: Lessee hereby agrees to maintain at all times at Lessee's expense, $1,000,000 Broad Form Comprehensive General Liability to include Products Liability and Liquor Liability, 6 naming Augusta, Georgia, the Augusta — Richmond County Commission, the Augusta Regional Airport and the Augusta Aviation Commission as additional named insureds and contain a 30 day notice of cancellation to the Airport in the event the policy is cancelled for any reason. Lessee agrees to furnish an annual certificate of insurance to Lessor. Section 13. Liabilities and Indemnification. Lessee agrees to indemnify, save, and hold harmless Lessor, its officers, agents, servants, and employees of and from any and all costs, liability, damage, and expense, including costs of suit and reasonable expenses of legal services, claimed or recovered by any person, firm, or corparation by reason of injury to, or death of, any person or persons, and damage to, destruction, or loss of use of any and all property, including Lessor's personnel and property, directly arising from, or resulting from, nay operations, works, acts, or omissions of Lessee, its agents, servants, employees, contrators, sublessees, or tenants, excepting such liability as may be caused by the operations, works, acts, negligence, or omissions or Lessor, its agents, or employees. Any final judgment rendered against Lessee for any cause for which Lessee is liable hereunder shall be conclusive against Lessee as to liability and amount upon the expiration of the time for appeal. In addition to Lessee's undertaking in this provision, and as a means of further protecting the Lessor, its officers, agents, servants, and employees, Lessee shall at all times during the term of this Lease obtain and maintain in effect public liability insurance coverage of the types and with the minimum limits set forth elsewhere in this Lease. Section 14. Fire ar Other Casualtv. In the event the Premises are totally destroyed (or so substantially damaged as to be untenantable) by storm, fire, earthquake, or other 7 casualty, this Lease shall terminate as of the date of such destruction or damage and the rental shall be accounted for as between the parties hereto as of that date. Section 15. Sublettin�. Lessee shall not assign this Lease or any interest hereunder, or sublet the Premises or any part thereof, or permit the use of some or any part thereof, by any party, other than as above stipulated, or become inactive in the operation of said Premises without the prior written consent of the Lessor. This Lease shall create the relationship of Landlord and Tenant between the Lessor and Lessee; no estate shall pass out of the Lessor; Lessee has only an usufruct, not subject to levy and sale and not assignable by Lessee except by Lessor's written consent. Section 16. Default bv Lessee. If Lessee defaults in the payment of any rent and such default continues for a period of ten (10) days after written notice from Lessor or its agent, or is Lessee defaults in fulfilling any of the covenants or agreements of the Lease Agreement on its part to be kept or performed and such default is not made good within ten (10) days after written notice from Lessor or its agent, then in any one or more of such events and at any time thereafter, Lessor may, at its election, declare this Lease canceled and terminated and may be its representatives, enter upon said Premises with or without process of law and take possession thereof. Section 17. Default bv Lessor. In the event Lessor should default in the performance of any of its duties or obligations under this Lease Agreement and such default should not be cured by Lessor and should be of such a nature that nonperformance thereof would result in a termination of the Lease, and such default does not arise out of a default by Lessee in 8 the performance of its duties and obligations under this Lease Agreement, then, in any such event, Lessee herein may, upon thirty (30) days prior written notice to Lessor, termination this Lease Agreement and be relieved of all unaccrued liability and obligations hereunder. Section 18. Insolvencv. If at any time during the term of this Lease or any extensions or renewals thereof , there shall be filed by or against Lessee in any court pursuant to any statute either of the United States or of any State, a petition in bankruptcy or insolvency or for reorganization or for the appointment of a receiver or trustee of all or a portion of Lessee's property, and within thirty (30) days there Lessee fails to secure a discharge thereof, or if Lessee makes an assignment for the benefit of creditors or petitions for or enters into such an arrangement, this Lease Agreement shall ipso facto be canceled and terminated and in which event neither Lessee nor any person claiming through or under Lessee, or by virtue of any statute or of an order of any court shall be entitled to possession of the leased Premises and Lessor, in addition to the other rights and remedies of Lessor by virtue of any other provisions herein or elsewhere in this Lease Agreement contained or by virtue of any statute or rule of law, may retain as liquidated damages any equipment, rent, security deposit, or monies received from Lessee or others in behalf of Lessee. Section 19. Surrender upon Ex iration. Lessee covenants that at the expiration or prior termination of this Lease Agreement, it will quit and surrender possession of the leased Premises free and clear of any and all liens and encumbrances and in good repair and condition, reasonable wear and tear and damage by fire, acts of God, the public enemy, or action of the 9 elements, or by any cause not due to any act or omission of Lessee and beyond its reasonable control, excepted. Section 20. Notices. Whenever, under this Lease, provision is made for notice of any kind, it shall be deemed a sufficient service of such notice if the said notice is in writing and is deposited with the United States Postal Service as first class mail in a sealed envelope, properly stamped, addressed as follows: If to Lessor: Augusta Regional Airport Executive Director 1501 Aviation Way Augusta, GA 30906 If to Lessee: Jay Jahn Tailwinds Lounge 1543 Aviation Way Augusta, GA 30906 Section 21. Miscellaneous A. Captioned herein are included for convenience of the parties only and shall not be deemed to modify or restrict the meaning or interpretation of any of the terms or provisions hereof. B. In the event any covenant, condition, or provision herein contained is held to be invalid by a court of competent jurisdiction, the invalidity of any such covenant, condition, or provision shall in no way affect any other covenant, condition, or provision herein contained provided that the invalidity of any such covenant, condition, or provision does not materially 10 prejudice either Lessor or Lessee in its respective rights and obligations contained in the valid covenants, conditions, and provisions of this Lease. C. As between Lessor and Lessee, Lessee in the occupancy, use, and maintenance of the leased Premises under the terms hereof, shall at all times act in the capacity of an independent contractor. D. All claims, disputes and other matters in question between the Lessor and the Lessee arising out of or relating to the Agreement, or the breach thereof, shall be decided in the Superior Court of Richmond County, Georgia. E. Lessee acknowledges that all records relating to this Agreement and the services to be provided under the contract may be a public record subject to Georgia's Open Records Act (O.C.G.A. § 50-18-70, et seq.). Lessee shall cooperate fully in responding to such request and making all records, not exempt, available for inspection and copying as provided by law. F. This Lease 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 to exercise any power given it hereunder, or to insist upon strict compliance by either party of any obligations hereunder and no custom or practice of the 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 hereof have caused this Agreement to be executed as of the day and year first above written. 11 Signed, sealed, and delivered In the presence o£ CITY OF UGUSTA �r�f .�t:��t r�.i� �, By: ;' .. Notary:��i�lic, State of GA r�Its: ayor My Commission Expires: Attest: % Notary Pub�f�� Ge�rS�a Its: Cl of Co ssion Columbia CountY� pg �SE�,� My Cornrn��ion Expires A�S• � ' 20 Signed, sealed, and delivered AUGUSTA AVIATION In the presence of: COM ION � � _ B ary Public, State of GA As its: HAIRMAN My Commission Expires: : � � � , [SEAL] Signed, sealed, and delivered in the presence of: � � By: ary Public, State of GA Its• re e t My Commission Expires:����p� � 12 �! . ' r� , � #.,,_. ;, `a I II � "� i � >� . � A ; f +P�. � { � ; � C ' x ; . . . �. ,3� a � ��:: � ,� i : �� , .. • . a • . . � : _: ,i�, � . i ' �Y � d ; , s �.., r: ..,. .� .. ,. .__. , . s '� r . . i, a , �: �.. ` �r � ,, , f ti � � � �� 1 .. . �� �� � .S � 4��"w :��.. . �-:. & � _ � � ,� ,�.. d �' 'Q v {�Q '�� 8�a . � ` � � __ _�_�._ ,� .� � .� � w