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HomeMy WebLinkAboutLEASE AGREEMENT BETWEEN AUGUSTA GEORGIA AND THE PATCH IN AUGUSTA LLC FINALIZED as of September 2011 AUGUSTA MUNICIPAL GOLF COURSE LEASE AGREEMENT THIS LEASE AGREEMENT ("Lease") is made and entered into this � v day of ��, 2011 by and between AUGUSTA, GEORGIA ("The Lessor"), with its pruicipal place of business at 501 Greene Street Augusta, Georgia 30901, and THE PATCH IN AUGUSTA, LLC (The "Lessee"), a Georgia limited liability company, with its principal place of business at 3540 Wheeler Road Augusta, Georgia, 30909. PRELINIINARY STATEMENT 1. The Lessor owns certain real property located within the geographical limits of the consolidated government of Augusta, Georgia which is described in that legal description which is attached hereto, incorporated herein by reference, and marked Exhibit "B". The real property covered by this Lease together with all buildings, structures, and improvements located thereon, and any buildings, structures, and improvements that may in the future be located thereon are commonly known as The Au�usta Municipal Golf Course (the "Golf Course") is all together hereinafter referred to as the "Leased Premises"; and 2. WHEREAS, The Lessor issued a Request for Proposal for operation for the Golf Course (RFP #10-142A), which requested proposals for a long term lease of the Golf Course in which the proposer would assume full responsibility for the service, operation, and maintenance of the Golf Course with the intent of removing the Lessor from the day to day operation of the Golf Course; and 3. WHEREAS, the Lessee was the only company to respond to RFP # 10-142A; and 4. WHEREAS, Lessor believes it is in the best interest of Augusta, Georgia and the citizens who utilize the Golf Course to enter into this Lease with the Lessee pursuant to the terms and conditions contained herein. NOW, THEREFORE, for and in consideration of One Dollar ($1.00) and other valuable consideration, the Lessor and the Lessee hereby agree as follows: ARTICLE I DEFINITIONS 1.01 Definitions. As used in this Lease, the following terms shall have the respective meanings indicated below: Affiliate. Any and all corporations, partnerships, trusts, and other entities directly or indirectly controlled by, controlling, or subject to direct or indirect common control of any entity or person. Capital Improvements. Any alteration or addition to, or rebuilding or renovation of, the Golf Course, the cost of which is not commonly charged to property operation and maintenance. Augusta, Geor�ia. Augusta, Georgia is a political subdivision of the State of Georgia, acting by and through its Board of Commissioners. Augusta, Georgia is the Owner of the Golf Course and the Lessor of the Leased Premises described in Exhibit A(real property consisting of approximately 118.7 acres). Commencement Date. The date upon which the Lessee leases the Golf Course and assumes its obligations under this Lease to manage and operate the Golf Course. Such date shall be as of midnight, Director. The Director of the Augusta, Georgia Recreation, Parks and Facilities Department. Exhibit "A". A list of Augusta, Georgia-owned Grounds Equipment—that the Lessee is required to purchase on the date this Lease is executed. Exhibit "B". The legal description of the real property leased hereunder. Exhibit "C". A list of furniture, office and misc. course equipment left by the Lessor for the Lessee's use during the term of the lease. Impositions. All taxes, assessments, water, sewer or other similar rents, rates and charges, levies, license fees, permit fees, inspection fees and other authorization fees and charges, which at any time may be assessed, levied, confirmed or imposed on the Golf Course or the operation of the Golf Course. Improvements. The buildings, structures (surface and subsurface) and other improvements now or hereafter located on the Premises. Insurance Requirements. All requirements of each insurance policy, and all orders, rules, regulations, and other reyuirements of the Augusta, Georgia Risk Management Department which are applicable to the Golf Course or the operation of the Golf Course. Land. The parcel or parcels of Land indicated by hatch marks in Exhibit "B" attached to this Agreement and incorporated herein by this reference. Legal Repuirements. All laws, statutes, ordinances, orders, rules, regulations, permits, licenses, authorizations, directives and requirements of all governments and governmental authorities, which now or hereafter may be applicable to the Golf Course, the Premises and the construction, management, and operation of the Golf Course and Premises. Lessee. The Patch In Augusta, LLC Lessor. Au�usta, Georgia 2 Operatin� Period. The period beginning on the Commencement Date and ending on the earlier to occur of (a) the last day of the term of this Lease, or (b) if this Lease is terminated pursuant to Article XIII below, the effective date of such termination ("Last Operating Day"). Operating Inventorv. Consumable items used in or held in storage for use in the operation of the Golf Course, including scorecard and cart tickets, driving range balls, professional shop merchandise, food and beverages, paper and plastic ware, fuels, cleaning materials, fertilizers, pesticides, supplies and other similar items. Operating Year. (a) The Operating Year shall be January 1 through December 31 of each year. Leased Premises. A collective term for the Land and improvements and Lessor's interest in the Land and improvements, and any greater estate or interest hereafter acquired, together with all entrances, exits, rights of ingress and egress, easements and appurtenances belonging or pertaining to the Premises. A legal description of the real property is found in Exhibit B, attached hereto. ARTICLE II TERM OF LEASE 2.01 Term of Agreement and Option. The initial term of this Sublease shall commence on the "Commencement Date", which shall be as of midnight, January 1, 2012, and shall expire at the end of the business day on the 31st day of December 31, 2019 unless terminated sooner pursuant to the terms of this Lease. Upon mutual agreement of the parties, this Lease may be extended for one additional term of eight (8) years commencing on January 1, 2020 and continuing up and through December 31, 2027. If Lessee desires to extend the lease for the additional term, Lessee must send a written request to renew this Lease to the Director no later than 120 days prior to the eXpiration of the initial term of this Lease. ARTICLE III LEASED PREMISES 3A1 Lease of Premises The Lessor does lease to the Lessee and the Lessee does lease from the Lessor subject to the terms, covenants, conditions and provisions hereof the Lease Premises. 3.02 Condition and Suitabilitv of the Premises. THE LESSEE AGREES THAT LESSEE IS LEASING THE PREMISES, "AS IS," "WHERE IS" and "WITH ALL FAULTS" AND THE LESSOR MAKES NO WARRANTIES, EXPRESS OR IMPLIED, AS TO FITNESS, MERCHANTABILITY, USE OR CONDITION OF EITHER THE PREMISES OR ITS SUITABILITY FOR LESSEE'S INTENDED PURPOSES. Lessee leases the Leased Premises and accepts the Leased Premises without representation or warranty by Lessor, express or implied, 3 in fact or by law, and without recourse, with respect to the condition of the Premises, including, but not limited to the soil and subsurface conditions thereof. Lessee has been provided the opportunity to enter upon the Premises to inspect, test, examine, survey, make test borings, soil bearing tests or other engineering or landscaping tests, surveys, observations, or studies as the Lessee may deem necessary, and to ascertain the availability of utilities and services, zoning approvals for Lessee's intended use, all federal, state or other local permits or licenses and approvals for the operation of Lessee's intended use. Lessee shall, and does hereby, indemnify and hold harmless Lessor from and against any and all damages and claims, including without limitation, all attorneys' fees and expenses at both the trial and appellate levels, which in any way arise out of or are related to any inspection of the Premises by Lessee or any mechanic's or materialman's liens which may arise in connection with the performance of any work by or at the request of the Lessee with respect to any such inspections. The foregoing indemnity provision shall expressly survive any termination or expiration of this Lease. 3.03 Lessee Responsibilitv. Lessee agrees to be solely responsible for, and absolve the Lessor of and from, any and all responsibility as to, site, drainage, environmental, or use and development costs and issues of any kind. ARTICLE IV LEASE PAYMENTS 4.01 Lease Pavments. In addition to other payments, Required Improvements, and responsibilities the Lessee is required to comply with, Lessee, for and in consideration of this Lease shall make lease payments to the Lessor by paying to the Lessor the sum of $1,000 per month commencing January 1, 2012 and continuing on the first day of each month thereafter during the initial term of this Lease and any renewal term (the "Lease Payments"). ARTICLE V REVENUE BOND NA omitted on purpose. 4 ARTICLE VI EQUIPMENT AND FURNITURE Lessor owns and leases certain equipment and furniture utilized for the Golf Course. A list of the equipment is set forth in Exhibits "A" and "C", attached hereto and specifically made a part hereof (separately and collectively the "Equipment"). 6.01 Lessor-owned Grounds Epuipment. Lessee shall purchase all Lessor-owned Grounds Equipment set forth in Exhibit "A" at the agreed upon fair price of $80,000. Payment with certified funds to Lessor for such Equipment shall be made upon Lessee's execution and delivery of this Lease to Lessor. 6.02 Lessor-owned Furniture and office epuipment. Lessor shall leave furniture and various other operating materials and supplies for the Lessee's use during the term of this lease, set forth in Exhibit "C". Upon termination of lease, this equipment shall be returned to the Lessor in a condition reasonable for normal wear and tear of the time frame considered. 6.03 Lessor-leased Epuipment. Lessor intends to terminate its lease obligations with EZ Go for the 50 golf cars it presently leases. A requirement set forth in RFP# 10-142A that the Lessee sha11 maintain a minimum of 50 golf cars is also a requirement under the terms of this Lease and the failure of the Lessee to maintain at least 50 golf cars for use by the patrons of said Golf Course shall constitute a default hereunder. 6.04 O�tion to Purchase or Accent Assignment of Lessee Epuipment. Upon the expiration or termination of this Lease, Lessee shall have the option but not the obligation to purchase any equipment owned by Lessee and utilized primarily at the Golf Course at its fair market value (using straight line depreciation method), or to require Lessee to assign any leases Lessee has related to equipment primarily used at the Golf Course to the Lessor. ARTICLE VII RIGHTS AND OBLIGATIONS OF THE LESSEE 7.01 Use. Lessee may use and occupy the Premises for the operation and management of a public Golf Course, including the operation and management of a Golf Shop and for no other use or purpose. All materials, goods and equipment stored, delivered to, or offered for sale on the Premises shall be the property of the Lessee except those owned by Lessor. Furthermore, these materials shall not be hazardous, explosive, or of a nature that would attract wildlife. 5 Lessee shall comply with all federal, state, and local laws, rules and regulations including, but not limited to, those relating to tax, environmental, Americans with Disabilities, immigration, fire, building, and safety which may apply to the operation and management of the Golf Course and the improvements constructed at the Premises and other activities at the Premises, including regulations promulgated by Lessor, and Lessee shall maintain in effect and post in a prominent place all necessary and/or required licenses or permits. If there is any discrepancy amongst the laws, rules, and/or regulations, the most restrictive provision shall apply. 7.02 Signs and ReBrandin�. During the term of this Agreement, Lessee shall have the right, at its expense and subject to the terms hereof, to place in or on the Premises a sign or signs identifying the Golf Course. Lessee shall be responsible for obtaining from the appropriate governing body all necessary permits for such signage. Lessee shall also have the right to rebrand the Golf Course as "The Patch" in order to increase and maintain interest of patron to use the Golf Course and the amenities of the Leased Premises. 7.03 Trade Fixtures. During the term of this Agreement, Lessee shall have the right, at its expense, to place in or on the Premises trade fixtures, furnishings, personal property, equipment and materials necessary to perform its services or any other services required or authorized hereunder. Said trade fixtures, furnishings, personal property, equipment and materials shall remain the property of Lessee, and except as may otherwise be directed by Lessor, Lessee shall remove immediately such fixtures and personal property at the expiration or termination of this Lease and repair any damage to the Premises resulting from such removal. ARTICLE VIII LEASEHOLD IMPROVEMENTS 8.01 Improvements Approval. (a) Lessee shall NOT be required to make specific improvement(s) to the Golf Course during the term of this lease. However, any improvements other than the normal and necessary day to day maintenance required to maintain the Leased Premises shall be done in conformity with plans and specifications prepared by or for the Lessee and Lessee shall not commence any such work until Lessor (by and through its Director) shall have approved said plans and specifications. Lessor shall review the plans and respond to Lessee within fourteen (14) days with regard to Lessee's proposed plans and specifications. All of Lessee's work shall be done in accordance with the plans and specifications approved by the Lessor; provided, however, that no approval by the Lessor shall be deemed an affirmation that such drawings or improvements constructed in accordance therewith are in compliance with applicable building codes or other applicable ordinances and regulations, nor shall any such approval by Lessor relieve Lessee from its obligations, at Lessee's sole cost and expense, to 6 make any architectural and/or construction changes to such drawings or improvements necessary to comply with all applicable governmental ordinances and regulations, and the approved plans and specifications. (b) Any Improvements that may potentially impact any lake, river, stream, creek, drainage ditch or other body of water shall be reviewed and approved by Lessor and any other appropriate or required local, State and/or Federal regulatory offices and agencies, including the U.S. Army Corps of Engineers, prior to construction of these Required Improvements. 8.02 Improvements upon Lease Termination. Upon the expiration or earlier termination of this Lease, improvements benefitting the Leased Premises shall remain the property of the Lessor. 8.03 General Imnrovements. Separate and apart from the Improvements that are approved by the Lessor, it is anticipated over the life of the Lease that additional Capital Improvements ("General Improvements") may be needed. If such General Improvements are deemed necessary by the Lessee then, in that event, it shall be Lessee's responsibility to make and pay for these General Improvements. 8.04 Construction. Lessee agrees to indemnify and hold harmless Lessor and its Board of Commissioners, directors, agents, employees, and assigns against any mechanics' or materialsmen's liens against the Premises and against any claims, losses, damages or liability whatsoever to person or property arising out of the construction or maintenance thereof, however caused, whether due to the acts or omissions of Lessee, its agents, contractors, servants or employees, or by reason of any unsafe condition of the Premises caused thereby; and Lessee agrees to carry and cause its contractors and subcontractors to carry, adequate workmen's compensation insurance to protect Lessor against claims of employees of Lessee. The construction, erection, and placement of all Capital Improvements shall be subject to Lessor's review and approval and shall be in accordance with all federal, state, and local laws and regulations, the most restrictive of which shall apply. In no event shall Lessee be permitted to remove or demolish any improvement(s) or fixtures constructed or installed at the Premises without Lessor's prior written consent. Upon the expiration or termination of this Sublease, the improvements and all appurtenances and attachments thereto constructed by The Patch hereunder shall be and remain the property of the Lessor and in the event of an anticipatory breach of this Lease by reason of the filing of any voluntary or involuntary petition for receivership or bankruptcy, or the appointment of any trustee for Lessee, the buildings and improvements so erected by Lessee shall be retained by Lessor. 7 ARTICLE IX ACCEPTANCE, MAINTENANCE AND REPAIR 9.01 "AS IS" Condition. Lessor warrants that it has inspected the Golf Course and Premises and accepts possession of the Golf Course and Premises and the improvements thereon "as is" in their present condition, and agrees that the Premises are suitable and sufficient for the uses required and/or permitted hereunder. 9.02 No Obligation. Lessor shall not be required to remove nor to maintain nor to make any improvements, repairs or restorations upon or to the Golf Course or Premises or to any of the improvements presently located thereon or to any improvements placed upon the Premises by Lessee, its successors, or assigns. 9.03 Lessee Obli�ations. Lessee shall throughout the term of this Lease assume the entire responsibility, cost, and expense for all repair, maintenance and replacement whatsoever to the Golf Course and the Premises whether such repair or maintenance be ordinary or extraordinary, structural or otherwise, and shall keep the Premises in a good condition and repair as reasonably determined by the Lessor. Any replacements Lessee makes under this Lease shall be of equal or better quality as the item being replaced and shall be approved by the Lessor. Without limiting the generality of the foregoing, Lessee shall: (a) keep at all times, in a clean, professional, and orderly condition and appearance, the Golf Course and Premises, all improvements thereon, and all of Lessee's fixtures, equipment and personal property which are located on any part of the Premises; (b) maintain, repair, renovate, and replace when necessary the greens, bunkers, irrigation systems, building, and other property associated with the Golf Course; (c) repair any damage caused by Lessee or its invitees, tenants, or contractors to paving, grasses, turf, soils, water or other parts of the Golf Course or Premises caused by any oil, gasoline, grease, lubricants, solvents, flammable liquids, or substances having a corrosive or detrimental effect thereon, and remediate any release caused by Lessee or any of its invitees, tenants or contractors of any substance that has or potentially has a harmful effect on human health or the environment as determined by any regulatory agency; 8 (d) take whatever measures are necessary to adequately control sedimentation and erosion, and to address all sanitary and stormwater issues related to the Premises and surrounding property affected by the Premises and its use; (e) maintain and repair all utility service lines placed on the Premises, including but not limited to, water lines, gas lines, electrical power and telephone conduits and lines, sanitary sewers and storm sewers. 9.04 Failure to Maintain. In the event Lessee fails to maintain, clean, repair, rebuild, replace, repaint or perform in accordance with this Article or any other Article of this Lease within a period of sixty (60) days after written notice from Lessor to perform any obligations required to be done under the provisions of this Lease, then Lessor may, at its option, and in addition to any other remedies which may be available to it under this Lease, at law, or in equity, enter the Golf Course and Premises, without such entering causing or constituting a trespass, a cancellation of this Lease, or an interference with the possession of the Premises, and perform any obligation of Lease, including, repair, replace, rebuild, paint all or any part of the Premises or the improvements thereon, and do all things reasonably necessary or desirable to accomplish the work required, and the cost and expense thereof shall be paid to Lessor by Lessee on demand. If, however, in the sole opinion of Lessor, Lessee's failure to perform any such obligations endangers the safety of the public, the property of Lessor or other tenants, users, or occupants at the Premises, and Lessor so states same in its notice to Lessee, Lessor may, at its sole option, in addition to all other remedies which may be available to it, elect to perform such obligations at any time after the giving of such notice, and Lessee agrees to pay to Lessor the cost and expense of such performance on demand. The rights of Lessor under this Article shall be in addition to, and not in lieu of, the rights and remedies set forth in Article XIII below. Furthermore, should Lessor, its officers, employees or agents undertake any work hereunder, Lessee hereby waives any claim for damages arising from Lessor's, its officials', employees', or agents' conduct, including negligence. The foregoing shall in no way affect or alter the primary obligations of Lessee as set forth in this Agreement, and shall not impose or be construed to impose upon Lessor any obligations to maintain the Golf Course or Premises. 9.05 Right of Entrv. Lessor may enter the Golf Course and Premises at reasonable hours to inspect same, and determine whether The Patch is complying with all its obligations hereunder. Lessee hereby waives any claim for damages for any injury to, inconvenience to, or interference with Lessee or Lessee's business operations resulting from any such entry by Lessor. 9.06 Water rates. Lessee shall pay a flat monthly rate for irrigation system water to Lessor (thru Augusta Utilities Department) in the amount of two-hundred and seventy-five dollars ($275). All other water and sewer use will be metered and billed at the standard commercial rate. 9 ARTICLE X OPERATING RESPONSIBILITIES 10.01 Standard of Operation. Lessee agrees it will manage and operate the Golf Course on a continual basis throughout the term of this Lease and in a professional and competent manner and in a manner as reasonably determined by Lessor to be comparable to and consistent with the management and operational practices at other public golf courses in Georgia and surrounding area. Lessee shall have the responsibility to: (a) at all times maintain the Golf Course and the Premises as a Public course; (b) determine, establish, and implement the policies, standards, and schedules for the operation and maintenance of the Golf Course and all matters affecting customer relations; (c) hire, train, and supervise the golf professional/manager, course superintendent, and all Golf Course employees; (d) supervise and direct all phases of advertising, sales, and business promotion for the Golf Course; and (e) establish accounting and payroll procedures and functions for the Golf Course. Lessee agrees, for itself, its successors and assigns, that all policies and practices related to the functions and responsibilities described herein shall comply with all Federal requirements including, but not limited to, the provisions of Title VI of the Civil Rights Act of 1964. 10.02 Resnonsibilities of Lessee. Lessee shall, in accordance with the terms of this Lease, perform or have performed the following services: (a) Enter into such contracts for the furnishing of utilities, maintenance, equipment and other services to the Golf Course; (b) Make all repairs, decorations, revisions, alterations and improvements to the Golf Course and Premises as shall be reasonably necessary for maintaining the Golf Course in good order, condition, and repair and reasonably acceptable to Lessor; (c) Incur such expenses as shall be necessary for the proper operation and maintenance of the Golf Course, including, but not limited to, lease or purchase expenses for Equipment and Furnishings and costs for Operating Inventory; (d) Maintain levels of Operating Inventory deemed appropriate by Lessee for supplying the needs of the Golf Course and its customers; (e) Apply for, and obtain and maintain, all licenses and permits required for Lessee in connection with the operation and management of the Golf Course. Lessor agrees to execute any and all applications and such other documents as shall be reasonably required and to otherwise cooperate, in all reasonable respects with Lessee in the application for, and obtaining and maintenance of, such licenses and permits; lo ( fl Perform or have performed, all such acts and things in and about the Golf Course as shall be reasonably necessary to comply with all Insurance Requirements and Legal Requirements and to timely discharge any lien, encumbrance or other charge on the Golf Course or this Lease; (g) Pay all Impositions and insurance premiums when due on policies required to be obtained and maintained by Lessor under Article XVI of this Lease. The insured shall be Lessee and Lessor shall be an additional named- insured on all policies; (h) Have on Premises a minimum of fifty (50) golf cars for lease to patrons of the Golf Course. (i) Have the Golf Course open to the public 364 days of the year. (j) Provide golf pro shop sales and services. (k) Provide membership plans and related services. (1) Provide Food and Beverage sales and services. (m) Provide a Golf Instruction Program. (n) Maintain all pre-scheduled tournaments/events. (o) Provide the availability of course time for scheduling Charity/Group Tournaments and outings. 10.03 Non-Discrimination. During the term of this Lease, Lessee not discriminate against any person because of race, color, religion, sex or national origin. Lessee will take affirmative action to ensure that applicants are employed without regard to their race, color, religion, sex or national origin. 10.04 Passes. None. ARTICLE XI GOLF SHOP OPERATIONS 11.01 Record of Sales. Except as otherwise provided by law, Lessee shall NOT be required to report to the Lessor any accounts of all sales and other Gross Revenues on merchandise or services from its operation of the Golf Course during the term of this Lease. Pursuant to RFP #11-142A, all revenues generated from golf sales remain with the Lessee. 11.02 Fixtures. Lessor has supplied and furnished all the necessary shelves, cabinets, countertops, display cases, display racks and other furniture fixtures, equipment 11 and appliances needed for the operation of the golf pro shop. Lessee, may at its own expense, shall supply and furnish any supplemental display fixtures, such as mannequins and temporary display fixtures, that Lessee in its discretion elects to purchase for the golf pro shop. Title to fixtures, equipment and appliances which are built into or fastened to the Premises shall remain with Lessee at the termination of this Lease, without any payment therefore, from Lessor to Lessee. 11.03 Taxes and Fees. Any and all taxes, fees and assessments, including but not limited to license fees, fees for permits, profits, sales or use taxes, personal property taxes or any other taxes which may be levied or assessed on the assets, business or capital of the pro shop or the income therefrom or on the merchandise carried therein by any duly constituted local, city, county, state, federal or other governmental authority, shall be borne and paid by Lessee. 11.04 Indemnification. Lessee will at all times indemnify and hold harmless Lessor against all actions, claims, demands, liabilities and damages which may in any manner be brought, imposed on or incurred by Lessor as a consequence or arising out of any act, default, or omission on the part of Lessee or any of its officers, employees or agents, or the use or infringement by Lessee, its officers, employees or agents of any trademark, copyright or patent in connection with the operation of the Golf Pro Shop. 11.05 Repurchase Of Inventorv. Upon expiration or termination of this Lease for any reason, Lessee shall prepare, at its own expense, a physical inventory of all saleable goods and merchandise located in the golf pro shop at the close of business on the last day of this Lease, together with invoices and receipts showing the cost of such inventory based on the FIFO method of inventory costing and evidence of payment of such invoices and receipts. The inventory shall consist of two categories of inerchandise: (1) saleable items carrying the Augusta Municipal Golf Course (or "The Patch") name and/or logo; and (2) all remaining saleable goods and merchandise not listed under Category (1). The results of such inventory, with copies of supporting documentation, shall be furnished by Lessee to Lessor as soon as possible for Lessor's review and verification. Lessor shall have the option to purchase any or all of the Category (1) or (2) remaining saleable goods and merchandise at the cost as shown on such invoices, including the cost of freight, shipping and handling charges, sales, excise or use taxes and the cost of logo embroidery, such option to run for sixty (60) days after receipt by Lessor of the inventory information from Lessee. Lessor shall have sole discretion as to which items it shall purchase. Lessee shall make the inventory available to Lessor for inspection immediately after submitting the inventory information to Lessor, and for sixty (60) days thereafter. ARTICLE XII ACCOUNTS; RECORDS AND REPORTS 12.01 Reports to Lessor. Omitted on Purpose. 12 ARTICLE XIII DEFAULT, TERMINATION AND EXPIRATION OF LEASE 13.01 Default bv Lessee. Lessee shall be in default of the Lease upon the occurrence of any one of the following events: (a) Lessee fails to make its Lease Payments to Lessor pursuant to Section 4.03 of this Sublease, and such failure continues for a period of ten (10) days after written notice by Lessor requesting such payments be made; or (b) Lessee fails to keep, observe, or perform any material covenant, agreement, term or provision of this Lease to be kept, observed, or performed by Lessee, and such default continues uncured for a period of forty-five (45) days after written notice of such default by Lessor to Lessee. (c) Lessee applies for or consents to the appointment of a receiver, trustee or liquidator of Lessee or of all or a substantial part of its assets; (ii) Lessee files a voluntary petition in bankruptcy or commences a proceeding seeking reorganization, liquidation, or an arrangement with creditors; (iii) Lessee files an answer admitting the material allegations of a bankruptcy petition, reorganization proceeding, or insolvency proceeding filed against Lessee; (iv) Lessee admits in writing its inability to pay its debts as they come due; (v) Lessee makes a general assignment for the benefit of creditors; or (vi) an order, judgment or decree is entered by a court of competent jurisdiction, on the application of a creditor, adjudicating Lessee a bankrupt or insolvent or approving a petition seeking reorganization of Lessee or appointing a receiver, trustee, or liquidator of Lessee or of all or a substantial part of its assets, and such order, judgment, or decree continues in effect for any period of sixty (60) consecutive days. In the event of default by Lessee, Lessor shall have all rights and remedies afforded to it under all applicable laws and shall have the right to enforce any and all claims as a result of said default against Lessee, its successors and/or assigns. In addition to any and all rights under the law, Lessor shall have the option to terminate this Lease immediately and shall have the option to immediately take over management and operation of the Golf Course with its own forces or through a third party without jeopardizing any and all rights it might have against Lessee, its successors and/or assigns due to said default, and Lessee, its successors and/or assigns shall have no cause of action of any kind against Lessor. 13.02 Default. In the event of default and/or termination of this Agreement, Lessee shall surrender the Leased Premises to the Lessor. 13 13.03 Default bv Lessor. Lessor shall be in default of this Lease on the occurrence of any one of the following events: (a) Lessor fails to keep, observe, or perform any other material covenant, agreement, term or provision of this Agreement to be kept, observed, or performed by Lessor, and such default continues for a period of forty-five (45) days after notice of such default by Lessee to Lessor; or (b) Lessor applies for or consents to the appointment of a receiver, trustee, or liquidator of Lessor or of all or a substantial part of its assets; (ii) Lessor files a voluntary petition in bankruptcy or commences a proceeding seeking reorganization, liquidation, or an arrangement with creditors; (iii) Lessor files an answer admitting the material allegations or a bankruptcy petition, reorganization proceeding, or insolvency proceeding filed against Lessor; (iv) Lessor admits in writing its inability to pay its debts as they come due; (v) Lessor makes a general assignment for the benefit of creditors; or (vi) an order, judgment or decree is entered by a court of competent jurisdiction, on the application of a creditor, adjudicating Lessor a bankrupt or insolvent or approving a petition seeking reorganization of Lessor or appointing a receiver, trustee or liquidator of Lessor or of all or a substantial part of the assets of Lessor, and such order, judgment, or decree continues unstayed and in effect for any period of sixty (60) consecutive days; or (c) Except as otherwise set forth in this Agreement, Lessor voluntarily transfers or otherwise voluntarily conveys its interest in all or any portion of the Premises to a person or entity other than another governmental entity. In the event of default by Lessor, Lessee shall have all rights and remedies afforded to it under applicable laws and shall have the right to enforce any and all claims as a result of said default against Lessor, its successors and assigns. In addition to any and all rights under the law, Lessee shall have the option to terminate this Lease after the applicable grace period without jeopardizing any and all other rights it may have against Lessor, its successors and/or assigns due to said default. Lessee's right to terminate this Lease pursuant to this Section 13.03 shall be exercised upon written notice to Lessor given at any time after the applicable grace period has expired. Lessee's termination notice shall specify the effective date of such termination, which date shall not be less than sixty (60) days after the date of Lessee's termination notice. 13.04 Curing Defaults. Any default by Lessee or Lessor under the provisions of Section 13.01 or 13.03, as the case may be, which is susceptible of being cured shall not constitute a basis for termination of this Lease if the nature of such default will permit it to be cured within the grace period allotted; provided, that within such grace period the alleged party in default shall have given notice of its intent to cure, have commenced to cure such default, is proceeding to complete 14 the cure in good faith and with reasonable diligence, and completes such cure within sixty (60) days after the expiration of such grace period. 13.05 Effect of Termination. The termination of this Agreement under the provisions of this Article XIII shall not affect the rights to the terminating party with respect to any liability or claims accrued, or arising out of events occurring prior to the date of termination. 13.06 Remedies Cumulative. Neither the right of termination, the right to sue for damages, nor any other remedy available existing in law or in equity to a party under this Sublease shall be exclusive. ARTICLE XIV ASSIGNMENT 14.01 Assignment. Lessee shall not have the right to assign or in any manner transfer any of its interest or obligations in and under this lease nor contract or subcontract for the operation of the Golf Course, nor permit occupancy of the Premises or any portion thereof by anyone with, through or under Lessee, without the prior written consent of Lessor, such approval to not unreasonably be withheld. Consent by Lessor to one or more such acts, transfers, or assignments of this Sublease shall not operate as a waiver of Lessor's rights under this Section or any subsequent act, transfer, or assignment. No such assignment shall release Lessee as assigning party, from any obligation or liability hereunder with respect to acts, facts, or circumstances arising prior to the date of such assignment unless Lessor specifically agrees in writing to such release. Notwithstanding the foregoing, Lessee shall be entitled to assign all its rights and obligations under this Agreement without the prior written consent of the Lessor to a limited partnership in which Lessee serves as managing general partner or to a Limited Liability Company in which the Lessee serves as the managing member. Subject to the foregoing, all provisions of this Lease shall inure to and be binding upon Lessee, and its legal representatives, successors and assigns. 14.02 Permitted Assignment bv Lessor. Lessor shall have the right, without the consent of Lessee, to assign this Agreement. 14.03 Remedies. Any assignment by Lessee in violation of the provisions of this Article XN shall be null and void and shall result in a termination of this Agreement. In addition to any other remedies available to Lessor, the provisions of this Section 14.03 shall be enforceable by injunctive proceeding or by a suit for specific performance. 15 ARTICLE XV DAMAGE OR DESTRUCTION; EMINENT DOMAIN 15.01 Damage or Destruction. Should the Golf Course be destroyed or substantially damaged by fire, tornadoes, and/or other casualty or acts of God Lessee shall have the option to either restore, repair, or rebuild the Golf Course using the insurance proceeds from the policies procured by Lessee herein, or, by written notice to Lessor terminate this Lease, and in such termination event Lessor shall receive the insurance proceeds and neither party shall have any further obligation to the other party under this Lease, except with respect to liabilities accruing, or based upon events occurring, prior to the effective date of such termination, and Lessor shall have no claim for damages of any character against Lessee. For the purpose of this Section, the Golf Course shall be deemed to have been substantially damaged if the Lessee's estimated length of time required to restore the Golf Course substantially to its condition and character just prior to the occurrence of this casualty shall be in excess of six (6) months. 15.02 Eminent Domain. If all of the Premises, (or such a substantial portion of the Premises so as to make it unfeasible, in the reasonable opinion of Lessor, to restore and continue to operate the remaining portion of the Premises for the purposes contemplated in this Agreement), shall be taken through the exercise (or by agreement in lieu of exercise) of the power of eminent domain, then upon that date this Lease shall terminate and neither party shall have any further obligation to the other party under this Agreement except with respect to liabilities accruing, or based upon events occurring, prior to the effective date of such termination, and Lessee shall have no claim for damages of any character against Lessor, its elected officials, employees, or agents on account of such termination. Nothing in this Section shall be construed to limit the right of Lessee to seek compensation from the taking authority for the termination of its rights under this Lease as a result of such taking, or prevent Lessee from retaining any such compensation so obtained, without accounting to Lessor for any such compensation so received. ARTICLE XVI INSURANCE AND BONDS 16.01 Covera�e. Lessee agrees to procure and maintain, at all times during the term of this Lease, a minimum of the following insurance: 1. Insurance on the Golf Course buildings and contents, including the Furnishings and Equipment and Operating Inventories, against loss or damage by fire, lightning, and/or any other perils insurable under the form of "all risk" coverage to full replacement cost. 16 2. Business interruption insurance, payable to Lessee, covering actual losses sustained due to fire, lightning and other perils insurable under the form of "all risk" coverage. 3. Insurance on the Golf Course and contents, including without limitation the Furnishings and Equipment and Operating Inventories, against loss from accidental damage to, or from the explosion of boilers, air conditioning systems, refrigeration and heating apparatus, pressure vessels and pressure pipes installed on the Golf Course (but such coverage shall be required only in the event that there are fired pressure vessels-boilers on the Premises), in an amount not less than one million dollars ($1,000,000.00) with respect to any one accident and with no co-insurance provisions. 4. Liquor liability Insurance. 5. All coverages provided under section 16.01 shall be endorsed to show Lessee as Loss Payee. 16.02 Kind and Limitation of Insurance. (a) Lessee agrees to procure and maintain at all times during the term of this Lease a minimum of the following insurance: l. Comprehensive general liability insurance, including without limitation, bodily injury, personal injury, property damage, products liability, innkeeper's liability, contractual liability covering the provisions of this Agreement, and liquor liability, in an amount not less than two million dollars ($2,000,000.00) single limit per occurrence. Lessor and its officials and employees shall be named as an additional insured. 2. Automobile liability and garage keeper's liability insurance in an amount not less than two million dollars ($2,000,000.00) single limit per occurrence. Lessor and its officials shall be named as an additional insured. 3. Worker's compensation insurance and employer's liability insurance in an amount not less than two hundred thousand dollars ($200,000.00) or as required by law. 4. Property insurance covering any real or personal property owned by Lessee, any property in their care, custody, and control, and any property on consignment or being held by them for sale in the pro shop under the form of "all risk" coverage. 5. Business interruption insurance, payable to Lessee, covering actual losses sustained due to fire, lightning, and other peril insurable under the form of "all risk" coverage. (See 16.01 2) 6. Commercial crime coverage which includes employee dishonesty coverage written on a"blanket" basis covering all employees with a limit of no less than $100,000 per occurrence; and theft, disappearance, and destruction coverage "inside" the Premises and "outside" the Premises with a limit of no less than $50,000 per occurrence. 17 (a) Lessee shall furnish a certificate of insurance to Lessor reflecting the effective maintenance of the required policies of insurance as specified in Subsection 16A1 (a) and (b) prior to the Commencement Date. (b) The types of insurance and the coverage amounts specified in this Article XVI are the minimum insurance required in connection with the Lease and operation of the Golf Course. 16.03 Policies and Endorsements. (a) Policies. All insurance coverage provided for above shall be issued by insurance companies having a rating of not less than "B+" and a financial rating of not less than Class "VIII" in the most current edition of Best's Insurance Reports or otherwise acceptable to Lessor. Lessee shall deliver to Lessor certificates of insurance with respect to all of the policies or insurance so procured, and in the case of insurance about to expire, shall deliver certificates of insurance with respect to renewal policies not less than ten (10) days prior to the respective dates of expiration. (b) Endorsements. All policies of insurance provided for under this Article XVI shall have attached an endorsement that such policy shall not be canceled or materially changed without at least sixty (60) days' prior written notice to Lessor. (c) Blanket Policies. Any insurance policies provided by Lessee under this Article XVI may be affected under policies of blanket insurance which cover other properties in addition to the Golf Course. 16.04 Handlin� of Claims. Lessee shall be responsible for handling all claims for any losses, damages, liability, and expenses (including without limitation personal injury and property damage claims) arising out of the operation, maintenance, repair, or improvement of the Premises. Handling such claims shall include without limitation responding to such claims, investigating such claims, retaining legal counsel to defend such claims, so long as said counsel is reasonably acceptable to Lessor, settling such claims, and paying any losses, damages, and expenses relating to such claims. Lessee and Lessor understand and agree that with respect to the policies of insurance reyuired under Article XVI, the portion of any losses, damages, and expenses paid with respect to such claims which is subject to a deductible amount or a self-insurance or a self-assumption amount shall be the sole responsibility of Lessee. 16.05 Renorting of Claims. Lessee will furnish annually loss run reports from the insurance company on claims filed under all coverage required under Section 16.05. Lessee is also reyuired to notify Lessor immediately of any loss resulting in serious bodily injury. ARTICLE XVII GENERAL PROVISIONS 17.01 Indemnities. (a) Indemnity. Lessee agrees to indemnify and hold Lessor, its officials, authorities, employees, and agents harmless from and against any and all losses, liabilities, including strict liability injuries, claims, demands, damages, 18 judgments, cost and expenses, including attorneys fees and witness fees for the defense thereof, arising out of or resulting from the operation, maintenance or management of the Golf Course (excluding, operating losses or Lessor contractual obligations) of the Golf Course or from any breach or default on the part of Lessee in the performance of any covenant or agreement on the part of Lessee to be performed pursuant to the terms of this Sublease, or from any acts, omissions, or negligence of Lessee, its agents, contractors, servants, employees, sub- contractors, concessionaries or licensees, arising out of or resulting from the operation, maintenance, or management of the Golf Course. In case of any action . or proceeding brought against Lessor, its officials, authorities, employees or agents, by reason of any such claim, upon notice from Lessor, Lessee covenants to defend such action or proceeding by counsel reasonably satisfactory to Lessor. (b) Environmental Indemnification. (1) For purposes of this Sublease, "Hazardous Substance" shall mean any toxic or hazardous wastes, materials, pollutants or substances, including without limitation, petroleum products and by-products, flammable explosives, radioactive materials, asbestos, polychlorinated biphenals, and substances defined as "hazardous substances" or "toxic substances" or similarly identified in or pursuant to the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. 6901 et• sea•, as amended; any chemical substance or mixture regulated under the Toxic Substance Control Act of 1976, 15 U.S.C. 2601 et.sea•, as amended; any "toxic pollutant" under the Clean Water Act, 33 U.S.C. 466 et. s�, as amended; any hazardous air pollutant under the Clean Air Act, 42 U.S.C. 7401 et• sea•, as amended; and any toxic or hazardous wastes, materials, pollutants or substances regulated under any other federal, state local or other governmental legislation, statute, law, code, rule, regulation, order, requirement, ordinance or guideline now existing or hereafter enacted, identified by its terms as pertaining to toxic or hazardous wastes, materials, pollutants, or substances. "Environmental Laws" as used herein shall mean all such laws described above and any other applicable federal, state and local laws, rules and regulations related to air quality, environmental control, release of hazardous materials, hazardous wastes and hazardous substances, and any and all other applicable environmental laws. (2) Lessee hereby agrees that it shall: (i) Not dispose of, store, or allow the release of any Hazardous Substances on or from the Golf Course (except in compliance with all environmental laws and all other laws, ordinances, orders, requirements, rules or regulations of governmental authorities pertaining thereto), and (ii) Provide Lessor with written notice: a. upon Lessee's obtaining knowledge of any potential or known release of any Hazardous Substances on or from the Facility in violation of any Environmental Law or other law, ordinance, order, requirement, rule or regulation of governmental authorities; 19 b. upon Lessee's receipt of any notice of any such potential or known release, or threat of release, from any governmental authority; or c. upon Lessee's obtaining knowledge of the incurring of any expense or loss by such governmental authority in connection with the assessment, containment, or removal of any hazardous substances for which expense or loss Lessee or the Lessor may be liable or for which expense a lien may be imposed on the Premises. (iii)Indemnify, defend and hold harmless Lessor, its officials, authorities, employees, and agents from and against any and all losses, liabilities, including strict liability, injuries, damages, and expenses (including, but not limited to, attorney fees and expenses and court costs and other costs of any litigation or other proceeding), related to costs of settlement or judgment and claims of every kind whatsoever paid, incurred or suffered by, or asserted against Lessor by any person or governmental agency and/or pursuant to any Environmental laws, as a direct or indirect result of, the presence on or under, or the escape seepage, leakage, spillage, discharge, or release on or from the Premises or any improvements constructed thereon of any Hazardous substance. (iv)Notwithstanding any other provisions of this Lease to the contrary, the indemnification and notice provisions of this paragraph (Environmental Indemnification) shall remain in full force and effect and be fully binding upon Lessee for the benefit of the Lessor until such time as set forth below. Within one hundred twenty (120) days following the termination of the Sublease, the Lessor will inspect the Premises (including undertaking any environmental inspection with respect thereto), and unless such inspection results in identification of any environmental problems of the type for which Lessee has agreed to indemnify Lessor, Lessee will be released from any further liability. 17.03 Leasehold Mortgaging. This Lease and Lessee's right, title and interest herein and in the Premises shall not be subordinated to the lien, priority and security title of any encumbrance of this Lease or the interest of Lease hereunder as security for any indebtedness Lessee may incur, whether by deed to secure debt, mortgage, deed of trust of other security instrument (all or any one of which hereinafter referred to as "Leasehold Mortgage" and the owner or owners or holder or holders of all or any of which hereinafter referred to as "Leasehold Mortgagee") unless approved by Lessor, and Lessor's right to receive rent and all other hereunder shall have priority over any rights of any Leasehold Mortgagee. The terms and conditions of any loan encumbering Lessee's leasehold interest in the Premises and/or any improvements constructed thereon shall be subject to Lessor's prior written approval, which approval shall not be unreasonably withheld. No Leasehold Mortgagee or purchaser at foreclosure shall be entitled to become the owner of Lessee's interest in this Lease unless such Leasehold Mortgagee or purchaser shall first have cured any and all defaults by Lessee hereunder and shall have delivered to Lessor an assumption agreement, executed in recordable form, wherein and whereby such Leasehold Mortgagee or purchaser assumes the 20 performance of all the terms, covenants and conditions of this Agreement, expressly confirms that the same are in full force and effect, and is qualified to perform such terms, covenants, and conditions as determined by Lessor. 17.04 Notices. All notices, demands, requests, consents, approvals, replies and other communications ("Notices") required or permitted by this Sublease shall be in writing and may be delivered by any one of the following methods: (a) by personal delivery; (b) by deposit with the United States Postal Service as certified or registered mail, return receipt requested, postage prepaid to the addresses stated below; or (c) by deposit with an overnight express delivery service. Notice deposited with the United States Postal Service in the manner described above shall be deemed effective three (3) business days after deposit with the Postal Service. Notice by overnight express delivery services shall be deemed effective one (1) business day after deposit with the express delivery service: Notice by personal delivery shall be deemed effective at the time of personal delivery. Notice also may be given by means of electronic facsimile transmission ("Fax"), provided, however, that in order for a Fax Notice to be deemed effective, it must be addressed to the attention of the appropriate individual listed below, and the party giving notice by Fax shall provide a"hard copy" of the Fax Notice thereafter to the other party pursuant to one of the three methods of "hard copy" delivery specified in this Section. For purposes of Notices hereunder, the address of Lessor shall be: As to City: Administrator Augusta, Georgia 530 Greene Street Room 801 Augusta, Georgia 30901 Fax: (706) 821-2819 With a copy to: Augusta, Georgia's Law Department 501 Greene Street Suite 302 Augusta, Georgia 30901 Fax: : (706) 821-5556 For purposes of Notices hereunder, the address of Lessee shall be: The Patch of Augusta, LLC 3540 Wheeler Road Suite 309 Augusta, GA 30909 Fax:706-738-9761 21 Each party shall have the right to designate a different address within the United States of America by the giving of notice in conformity with this Section 17.02. 17.05 No Partnershin or Joint Venture. Nothing contained in this Lease shall be construed to be or create a partnership or joint venture between Lessor and its successors and assigns, on the one part, and Lessee and its successors and assigns, on the other part. 17.06 Modifications and Chan�es. This Lease may be amended or modified only by a writing signed by both parties. 17.07 Understandin�s and Agreements. This Lease constitutes all of the understandings and agreements of whatever nature or kind existing between the parties with respect to Lessee's Lease and operation of the Golf Course. 17.08 Headin�s. The Article, Section and Subsection headings contained in this agreement are for convenience and reference only and are not intended to define, limit or describe the scope or intent of any provision of this agreement. 17.09 Survival of Covenants. Any covenant, term or provision of this Agreement which in order to be effective must survive the termination of this Agreement shall survive such termination. 17.10 Third Parties. None of the obligations under this Lease of either party shall run to or be enforceable by any party other than the party to this Sublease or by a party deriving rights under this Lease as a result of assignment permitted pursuant to the terms of this Lease. 17.11 Waivers. No failure by Lessee or Lessor to insist upon the strict performance of any covenant, agreement, term or condition of this Lease or to exercise any right or remedy consequent upon the breach of any subsequent breach at the same covenant, agreement, term or condition. No covenant, agreement, term or condition of this Lease and no breach of this Lease shall be waived, altered, or modified except by a written instrument. A waiver of any breach of this Lease shall only affect this Lease to the extent of the specific waiver, and all covenants, agreements, terms and conditions of this Lease shall continue in full force and effect. 17.12 Apnlicable Law. This Lease shall be construed and interpreted in accordance with, and shall be governed by, the laws of the State of Georgia, and exclusive jurisdiction shall be in the Superior Court of Richmond County, Georgia. 17.13 No Presumntion Re�arding Drafter. Lessor and Lessee acknowledge and agree that the terms and provisions of this Lease have been negotiated and discussed between Lessor and Lessee, and that this Lease reflects their mutual agreement regarding the subject matter of this Lease. Because of the nature of such negotiations and discussions, it would be inappropriate to deem either Lessor or Lessee to be the drafter of this Lease, and therefore no presumption for or against the drafter shall be applicable in interpreting or enforcing this Lease. 17.14 Enforceability of Anv Provision. If any term, condition, covenant, or obligation of this Lease shall be determined to be unenforceable, invalid, or void, such 22 determination shall not affect, impair, invalidate, or render unenforceable any other term, condition, covenant, or obligation of this Lease. 17.15 United States Currencv. All amounts payable pursuant to this Lease shall be paid in lawful money of the United States of America. 17.16 Counterparts. This Lease and any amendment may be executed in counterparts, and upon all counterparts being so executed each such counterpart shall be considered as an original of this Lease or any amendment and all counterparts shall be considered together as one agreement. ARTICLE XVIII OTHER PROVISIONS 18.01 Non-Compete Lessor agrees that during the term of this Lease, Lessor shall not acquire, lease, or construct any public golf course within 10 miles of Premises. 18.02 Irri�ation Water Lessor agrees that it will provide Lessee and premises adequate water for the irrigation of the golf course at the same rates set forth in disclosures made during discussion on RFP # 10-142A. Said water may be effluent water or potable water. 18.03 Propertv Taxes Lessor shall not charge and Lessee shall not be obligated to pay any real estate taxes during the term of the Lease. [SIGNATURES ON FOLLOWING PAGE] 23 IN WITNESS WHEREOF, the parties have executed or caused this Lease to be executed as of the day and year first written above. ,� AUGUSTA, GEORGIA , � � C.- � " � B (�.. �� �, i Y• �,� David S. Copen aver �������� As its Mayor ��a���� � e By: .-: +� , p � � Lena J. � "r, �' °. �G� �� G�'� , ae s ?� • � I Clerk o�' �n " . / � �� � � � � MC ���W Ii�p����� e � � � �� � � �_ �So�l� � � � �«. R �" .� �, �� �., �� 'r �•.,,�4�� �/ �� c � t / o � � Q � . CA /Q '+��,� � � �� � 9� 4° v`� � � � � �� �,.�� � Signed, sealed ��d el�ve�• /►_ _ � ��� � �� F °� A �V � Q � �� � �m�.a�s: �� - � °' ��,c� ip the presence �►� �, (�8�, �� '�'r Notary � blic �a�/��0�`� Witness By: Name: � w THE PATCH IN ALJ�GUSTA, LLC By: _ � Its: Managing Member ` � l ����d� j .: � N1cE[,� �o�� (seal) •�,..... , Signed, sealed and delivered ����.•• '••. 4�,+�� in the pr � of: ,� �Q; ,�'� p► �j' • :y �l� r . . 4Z. � .,d/ � '�' � �� � ' � 3 � ♦ �. Notary Public O� : PU��' ti °�� � Witness ,� �it; �; Au9•.�� ?.: � ••.....•• Q �� By: s � ���OND G .�;.��wo�°" Name: �,`o;�� S 24 ExxISIT A Augusta Municipal Golf Course Equipment Listed below is the equipment inventory at Augusta Municipal Golf Course to be purchased by the Operator as a condition of the Lease: Item A e/ rs. Purpose Condition Jacobsen Greens King 4 Plus 5 Cut Greens Good Jacobsen Greens king 4 Plus 9 Cut Greens Poor Jacobsen Greens King 4 Plus 9 Cut Tees Good Jacobsen Greens 6 Verticut Good Jacobsen Greens 6 Spikes Greens Good Jacobsen Turf Cat 6 Cuts Rough Good Ransome 700 9 Cuts Rough Poor Steiner 430 9 Blower Trencher Fair John Deere 5105 9 Cuts Fairways Good Groom Master 8 Rakes Traps Good Ransome Aerator 8 Aerates Greens Good Toro Reelmaster 10 Cuts Fairways Fair Ransome Aerator 9 Aerates Fairways Good Jacobsen 1900 6 Multiuse Push Mower Good Ford 1500 Bush Hog 12 Cuts Off Course Poor Kabota Tractor 12 Frontend Loader Fair Ransome Sod Cutter 9 Cuts Sod Good Cushman Sprayer 12 Fertilizer Good Jacobsen Green King 4 12 Use for parts Jacobsen Greens Mower 16 Use for parts Ransome 700 14 Use for parts *��e�t�r��4e��io,. , � �.o�� Cushman Utility Vehicle 6 Multiuse Good Cushman Utility Vehicle 9 Multiuse Good Cushman Utility Vehicle 9 Multiuse Fair Cushman Utility Vehicle 12 Multiuse Fair Turfmaster 300 Cushman 4 Fairway Sprayer Good EZ Go Work Cart 3 Good EZ Go Work Cart 3 Good EZ Go Work Cart 3 Fair Ranger Picker 1 Good Range Cart 1 Good **Gas tank(regular) 2 Good **Ford Dump Truck 27 Poor **Ford Front end loader 22 Poor *deleted fi•om original list in RFP **added to original list in RFP 25 EXHIBIT B ALL that lot, tract or parcel of land, with any improvements thereon, situate, lying and being in Augusta-Richmond County, Georgia, lying on the western side of Highland Avenue, containing 142.00 acres more or less, and being bounded as follows: On the North, by the following tracts of land: (1) property of Brickle, Huffman, and property of Samples, which property is shown as a consolidated tract of land on a plat recorded the Office of the Clerk of Superior Court of Richmond County, Georgia, in Realty Book 11U, page 319 (the "Brickle Property"); and (2) by property of Augusta- Richmond, County, Georgia known as the "Daniel Field Airport", and as shown on a plat dated February 28, 1987, prepared by James G. Swift & Associates which is recorded in Realty Ree1411, pages 1759-1764, in said Clerk's Office (the "Airport Property"). On the East, by the Airport Property and by the right-of-way of Highland Avenue. On the South, by the right-of-way of Damascus Road; and On the West, by the following tracts of land: (1) property of Garren and Nordman, as shown on that certain plat dated February 26, 1987, prepared by George L. Godman and recorded in Realty Reel 259, page 1729, in said Clerk's Office; (2) property of Donahue which is shown on a plat dated April 17, 1989, prepared by James G. Swift & Associates and recorded in Realty Reel 310, pages 2253-2254, in said Clerk's Office; (3) property of Donahue which is shown on a plat dated February 2, 1989, prepared by George L. Godman & Associates and recorded in Realty Reel 305, page 1439, in said Clerk's Office; (4) property of Charon Enterprises, Inc., acquired by deed dated May 9, 1995, and recorded in Realty Reel 490, pages 1414-1415, in said Clerk's Office, which is a part of the property depicted on that certain plat dated November 26, 1968, last revised December 18, 1974, prepared by Baldwin & Cranston Associates, Inc. and recorded in Realty Reel 43, pages 1544-1546, in said Clerk's Office; (5) properry of Augusta- Richmond County, Georgia acquired by deed dated August 4, 1994, and recorded in Realty Reel 467, pages 370-372, in said Clerk's Office, and shown on that certain plat recorded in Realty Book 17B, page 409, in said Clerk's Office; and (6) the Brickle Property. REFERENCE is hereby made to the recorded plats and deeds referenced above for a more complete and accurate description as to the metes, bounds, and location of the subject property. THE subject property is currently designated as Parcel 2.01 on Tax map 56-1 of the tax records of Augusta-Richmond County, Georgia. SAID property is conveyed subject to the right-of-way of Old Camp Road which bisects the subject property in a general north-south direction. 26 Exx�iT C Augusta Municipal Golf Course Equipment to remain on site for Operator's Use Snack bar/kitchen/banquet area *Bar Stools � 5 Good Banyuet Tables 18 Good *Banquet Chairs � 61 Good Refrigerator 1 Good *Lounge Chairs � 2 Good Patio Chairs 15 Good Patio Tables 4 Good Golf Cart Storage Area 600 lb. capacity Ice Machine 1 Good Air Compressor 1 Good Pro Shop Equipment Clothing Stand Racks 1 Fair Golf Course(on course) Equipment Granite Hole Marker 18 Good *Tee Markers � 192 Good Flag Sticks 36 Good Ball Washers 9 5 Good / 4 Poor Trashcans 5 Good Water Coolers 3 Good Maintenance Shop Chemical Storage Shed (10' x 12') 1 Fair Work Benches (15' x 15') 1 Good Computer System (irrigation) 1 Good Hydraulic Lift 1 Good Air Compressor 1 Good Portable Welder 1 Good Computer Equipment(club house) * *Personal Computer 5 Good * *Printer 2 Good Office **Metal desk 1 Good ** Wood desWwork station 1 Good *Denotes change from original count in RFP **Denotes addition to original list in RFP 27 -/= - : AUGUSTA LAW DEPARTMENT G ! Ll R: G I: A Matt Aitken ANDREW G. MACKENZIE Corey 7ohnson GENERAL COLINSEL Joe Bowles Augusta Law Department Alvin Mason DAVID S. COPENHAVER Biil Lockett Mayor WAYNE BROWN Joe Jackson Senior StaffAttorney Jerry Brigham Wayne Guilfoyle KENNETH S. BRAY J. R. Hatney JODY M. SMITHERMAN Grady Smith JoE BowLES KAYLA E. COOPER Mayor Pro Tem StaffAttorneys FREDERICK L. RUSSELL Administrator MEMORANDUM OF TRANSMITTAL To: Lena J. Bonner Clerk of Commission � � From: Kayla E. Cooper, Staff Attorney Augusta Law Department Date: October 18, 2011 Re: Lease Agreement for the Augusta Municipal Golf Course ("The Patch") Enclosed please find two (2) originals of the above-referenced Lease Agreement for Mayor Copenhaver's signature and execution. Please forward one of the 'Lease Agreements to me once it has been signed so that I may forward it to the attorney for Patch, LLC. Also enclosed is a copy of the approval letter for your records. Should you need additional information please contact me at (706)842-5550. Thank you. \ KEC/dh z Enclosures �;�� ,� ,; , ; 4 � =_ � ti ' � "� �.: ' ,- Augusta Law Department 501 Greene Street, Suite 302, Augusta, Georgia 30901 (706) 842-5550 - Faz� (706) 842-5556