Loading...
HomeMy WebLinkAbout04/12/1989 Donald K. Ratty, Chair Kevin McDermott Staff: John'Stinson AGENDA BUDGET AND FINANCE COMMITTEE Wednesday, April 12, 1989 12:00 Noon City Manager's Conference Room 1. BAKERSFIELD COURTHOUSE RACQUETBALL FACILITY LEASE ARTICLE III. USE AND OCCUPANCY 3.01. During the Term, Tenant shall, at Tenant's sole cost, us~ and occupy the Leased Land for the construction, maintenance and operation of a first-rate indoor public recreation building. Tenant shall have the right to provide facilities fOr and to sell soft drinks and alcoholic beverages for on-premises consumption only. Tenant shall throughout the term of this agreement maintain a minimum of two (2) racquetball/handball courts for public use. Tenant may use the property for other public recreation and purposes incidental thereto as such uses are allowable under zoning, by conditional use permit or other administrative proceedures that may be adopted by zoning ordinance. 3.04 This Amendment hereby acknowledges the existence and continued rights to use the premises herin referred to in such manner as originally agreed to in lea~e 76-110. It shall not be construed as requiring any new zoning permits 'for existing uses. Additional uses or changes in uses shall be in accordance with conditions set forth in section 3.01 above and consistent with the Bakersfield Municipal Code. Tenant is hereby authorized to make applications for permits and approvals on behalf of tho property owner for uses consistent with this lease. ARTICLE IV. OPERATING POLICY 4.01. Tennant shall make available to the general public, groups and individuals on a first come, first serve reservation basis a minimum of two racquetball/handball courts from 6:00 a.m to 11:00 p.m.. 4.02. Tenant shall operate the Leased Land in a manner comparable with other indoor publicly available recreational facilities in the Southern California area furnishing the same basic services and amenities. Tenant shall have sole authority to establish the rate structure for court play and shall have sole authority to establish rate and price structures for its other facilities and services. 4.03. (Deleted) 4.04. Tenant may charge a membership fee for the use of Tenant's facility allowing high frequency patrons of Tenant's facility to purchase court time at a lower cost; providing, however, not less than two (2) racquetball/handball courts shall be available for the general public (non-members).. Tenant may also, schedule league play and 'tournament programs, classes, clinics and other similar activities. 4.05 Non-Discrimination. Lesee shall not discriminate because of race, religion, color, sex or national origin, against any person by refusing to furnish such person any accomodations, facility, service or privilege offered to or enjoyed by the general public.. ,~ ~, Nor shall Lessee or any of its agents, or licensees publicize the accommodations, facilities, services or privileges in any manner . that would directly or inferentially reflect upon or question the acceptability of the patronage of a~ person because of race, religion, color, sex, or national origin. In addition, neither Lessee, nor any of 'his agents, or licensees, shall discriminate against any employee or'applicant for employment because of race, religion or national origin. ARTICLE V. RENT 5.01. Fixed Minimum Annual Rent. The Lesee shall pay to Lessor a fixed annual minimum rent of three thousand six hundred dollars ($3,600.00) per yearly lease period, except for adjustments to the Fixed Minimum Annual Rent as set forth in Section 5.02. For the purpose of this Lease rental shall be computed using an annual lease period. The annual lease period is hereby defined as the period from July 1 through June 30th of each year to correspond to the Lessor's fiscal year. As of the effective date of this amendment to the Lease 76-110 and as of the date of termination of this Lease, rents shall be adjusted prorata in the event the lease does not commence or terminate on July 1 or June 30th of that particular year. 5.02. Adjustment of Fixed Minimum Annual Rent. The fixed minimum annual rent set forth in clause 5.01 shall be adjusted each year by the Los Angeles/Long Beach/Anaheim Consumer Price Index as set forth in clause 5.02.1 5.02.1 Adjustments to Fixed Minimum Annual Rent by the Los Angeles/Long Beach/Anaheim Consumer Price Index. As of July 1, 1990 and each year thereafter, the Consumer Price Index of the United States Commerce Department for Los Angeles, Long Beach and Anaheim shall be consulted and the rates to be paid to the city for the annual rent hereunder shall be revised upward according to the percentage of difference between the cost of living factor reflected by said publication for the month of April immediately preceding the calendar year under consideration and the cost of living factor reflected by the publication for the month of April of the year before. In no event shall the annual rent to be paid by Tenant hereunder be decreased. Should the cost of living factor reflect by said publication after calculation as set forth above indiCate a decrease in the consumer price index, Tenant's annual rent shall remain the same. 5.03. Annual Percentaqe Rent. In addition to the fixed minimum annual rent, Tenant shall pay to City at the time and in the~manner herein specified, an annual percentage rental in an amount equal to four percent (4%) of the amount of Tenant's gross annual receipts 'or sales as reported on lesee's U.S. Partnership Return of Income (Form 1065) (lines la and 7) or other Federal Tax Return acceptable to the Lessor less any sales ar entertainment taxes as referenced in Section 5.04. and less the amount of the fixed annual minimum rent. The annual percentage rental due April 1, 1989, under the provisions of Section 5.05. shall be 25% of such gross anual receipts as shown on tenants tax returns for calendar year 1988. 5.04. Tenant's gross annual receipts shall include all receipts received by Tenant from the operation of the facility, including Payments received from assignment or sublease of'the facility, but shall not include any sales or entertainment tax imposed by the State or City and separately stated and separately collected by Tenant from patrons. 5.05. Payments A. The fixed annual minimum rent shall be payable quarterly, in advance, commencing July 1, 1989; B. The annual percentage rental due hereunder shall be paid by Tenant to City not later April 1st each year for the preeceeding calendar year; '!~i~ C. Late payments shall be assessed a late payment fee of one and one half percent (1 1/2%) per month on the balance outstanding at the time the payment becomes due and payable. Said late fees shall be calculated on a daily basis and shall be payable to City · immediately upon assessment. Failure to pay beyond forty-five (45) days past the day Upon which the quarterly payment falls due shall be deemed a material breach of this lease. 5.06. Tenant shall keep true and complete records and accounts of all receipts for court rentals and shall give City access, during reasonable hours, to such records and accounts. 5.07. Parking. Tenant may use the parking lot east of Tenant's facility without restriction by the City. The parking lot west of Tenant's facility is constructed for use by the general public and City does not guarantee Tenant the availability'of parking spaces in that lot. The City may, with 48 hours notice, request use of all or a portion of the east parking lot providing that an amount equal to the parking spaces needed by the City be designated~for use by Tenant in the west parking lot. 5.08. Contact Person. Tenant's contact person for all dealings with this lease is the City Manager or his designee. 13.05. Tenant shall have the absolute right to sublet all or any part or parts of the Leased Land and the improvements, for uses · permitted under section 3.01, above, and to assign, encumber, eXtend or renew any sublease, provided each sublease shall require the sublessee to pay not less than the fair market rental value as determined by the City, for the portion of the facility subleased, and further provided the following provisions are complied with: B. Tenant shall, promptly after execution of each sublease, notify City of the~name and mailing address of the sublessee and shall provide to City an executed copy of the sublease. E. Should City Manager determine that Tenant has subleased any portion of the facility for less than fair market value, the difference shall be added to the tennant's gross annual receipts for purposes of calculating Tennant's annual prcentage rent, unless the City Manager approved such sublease in writing prior to it's execution.