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Home My WebLink About202-90 RESOLUTIONRESOLUTION NO. 202-90 A RESOLUTION APPROVING A LEASE AGREEMENT WITH MR. AND MRS. DALE WARREN TO OPERATE THE AIRPORT RESTAURANT. • BE IT RESOLVED BY THE BOARD OF .DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1. That the Mayor and City Clerk are hereby authorized and directed to execute a three year lease agreement with Mr. and Mrs. Dale Warren to operate Travelers Treat, dba Airport Restaurant. A copy of the lease agreement authorized for execution hereby is attached hereto marked Exhibit "A" and made a part hereof. ST }ATTEST: PASSED AND APPROVED this r• 4. at ;,l City Gyle Vie. 44 • 18th day of December APPROVED: By: /2 Mayor , 1990. LEASE AGREEMENT This AGREEMENT executed this 19 90 18th day December , by and between the City of Fayetteville, Arkansas, hereinafter called "Lessor", and Mr. and Mrs. Dale Warren, hereinafter called "Lessee". IN CONSIDERATION OF THE MUTUAL COVENANTS CONTAINED HEREIN, Lessor and Lessee hereby agree as follows: 1.. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, 1,144.5 square feet of floor space, more or less, in the Commercial Terminal Building at the Fayetteville Municipal Airport (Drake Field) which floor space is more particularly identified on the floor plan attached hereto marked Exhibit "A" and made a part hereof. 2. Lessee shall establish and operate a fast food service on the demised premises. Said fast food service shall be open to the public not less than twelve (12) hours per day seven (7) days each week and shall be open to coincide with regularly scheduled airline passenger service at the Airport. All necessary equipment and furnishings or structural alterations except those agreed upon in writing or made service October prior to the execution of this agreement shall be installed by Lessee at Lessee's cost. Lessee agrees to provide food as outlined in Lessee's proposal for Bid No. 90-13 dated 24, 1990 with the revision of the following items: a) Uniforms are to consist, at a minimum of bibbed aprons or smocks. b) The airport shall have approval over menu items and pricing, however if agreement cannot be reached, a third party shall be utilized to arbitrate and settle the dispute. Both parties agree to abide by the decision of the arbitrator who shall be chosen from the food service industry and agreed upon by both parties. Bid 90-13 is attached hereto marked Exhibit "8" and made a part hereof. 1 3. Lessee shall be permitted to,serve beer and light wines for on -premise consumption provided Lessee has obtained all required federal, state and local permits. 4. The term of this Agreement shall be for a period of three (3) years from the execution date with the schedule of payments and rates to remain the same throughout the contract term, provided either party may terminate this Agreement by giving ninety (90) days written notice of termination to the other party. 5. Lessee shall pay Lessor as rent for use of the demised premises during the term of this Lease the following per cent of Lessee's gross sales per category on a monthly basis or a minimum guarantee of $1,666 per month, whichever is higher. FOOD SALES: 8% BEVERAGE SALES: 8% BEER & WINES: 12% MAGAZINES: 11.5% GIFTS: 15% MISC. ITEMS: 15% The term "gross sales" as used herein shall mean Lessee's actual selling price of all goods, merchandise„ food and beverages sold on the demised premises, including beer and, light wines, and excluding any taxes or imposition billed separately to the purchaser. Said rent shall be payable within twenty (20) days after expiration of each month under this Lease and shall be accompanied by a sales report on forms to be prescribed by Lessor's Airport Manager. In the event said rental is not paid on or before the due date, Lessee shall pay a penalty equivalent to 10% of the amount due, said penalty to be compounded monthly until the rent and penalty are paid in full. 6. Lessee shall maintain at all times a current, complete record of account of all sales. Lessor shall have complete access to said record of accounts during all reasonable hours and shall have the right to inspect Lessee's books and records of business and transactions including, but not limited to, cash register tapes, sales tickets and tax returns or reports. Lessee shall furnish to Lessor a copy of all sales tax reports filed by Lessee in the office of the Commissioner of Revenues of the State of Arkansas. 2 7. Lessor shall pay for all gas,electricity, water service and sewer services provided to the demised premises. Lessee shall pay for sanitation service, telephone services, and any other utility services desired by Lessee. 8. If at any time the Leased Premises or the building which forms the principal component of the Leased Premises should be damaged by fire or any major casualty to the fault of the Lessee and the cost of repairing the damage does not exceed 50% of the value of the improvements of the premises herein leased or the building which forms the principal component part of the Leased Premises, then Lessor shall as soon as,reasonably practical repair the damage caused by said fire or other casualty. If, however, the damage should exceed 50% of the value of the improvements of the premises herein leased or the buildingwhich forms the principal component part of the Leased Premises, then Lessor shall have the option of either repairing said premises or terminating this Lease as of the date of said fire or other casualty by notice to Lessee within thirty (30) days after said date. If the damages should render the Leased premises untenantable for the use of Lessee's business as setforth herein, the rental from the date of said fire, or any major casualty not the fault of the Lessee, to the date of the completion of the restoration of the premises shall be abated, such abatement being figured on a pro rata basis of the rentals, herein provided. 9. During the term of this lease, Lessee shall maintain, at Lessee's expense, the following insurance coverage with solvent insurance companies authorized to do business in the State of Arkansas: - a) Workmen's Compensation Insurance as required by Arkansas Law. b) General public liability insurance with limits of not less than $100,000.00 for injuryor death of one person; $300,000.00 for injuries or deaths in any one accident; and $20,000.00 for property damage in any one accident. Lessee shall provide certificates evidencing all such insurance to the City Clerk of Lessor with the City listed as additional insured. 3 10. Lessee agrees to hold Lessor harmless from any claim, expense, loss or liability suffered or occasioned as a result of Lessee's use or occupancy of the demised premises. 11. Lessee agrees that it will not, on the grounds of race, color, or national origin, discriminate or prevent discrimination against any person or group of persons. 12. Lessee will assure compliance with all regulations in regard to Nondiscrimination and Affirmative Action as enumerated on page sever (7) of Bid 90-13 attached hereto as exhibit "B" and made a part hereof. 13. The parties acknowledge that it is the policy of the Fayetteville Municipal Airport that minority owned business enterprises and female owned business enterprises, hereinafter called DBE, as defined in 49 CFR, Part 23, hereinafter called the "Regulations", shall have the same maximum opportunity to participate in the performance of all Airport contracts awarded by the City, and that DBE requirements of the Regulations shall be included in and become a binding part of such contracts awarded to contractors, sub-contractors, vendors, and other entities. The parties further acknowledge that it is the policy of the Fayetteville Municipal Airport that it shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of all Airport contracts. The DBE requirements of 49 CFR, Part 23, as may be amended from time to time, are incorporated herein by reference thereto. 15. Lessee shall not, without the prior written consent of the Lessor, assign .or sublet this lease or, any rights thereunder, or any part of the leased premises without prior approval of the Board of Directors, such approval shall not unreasonably withheld. 4 IN WITNESS WHEREOF, the parties have executed this Agreement on the date first above written. 4 .ATTEST I -By : St k anne co/ t. ATTEST By: 5 CITY OF FAYETTEVILLE, ARKANSAS LESSOR By: �.C�t:L/9%/, Mayor LESSOR 4.29 42 Traveldrs Treat/ by Dale Warren 0 A m r` •,y.'•i1: • i rt r� I • _� ] L1'42 -I•, r <,�� 1 �1 m • 1 1 'd&f103 ed 6 3S11f103N00 ONI18Vd30 G. 0 2 m n fg Ea 1 ` m K m CIllo'z :{� I n . , _:t,� 9, 1 .I 0 _ i L4 r m 1 D r A 14-0 �1 I 0 M—i r- 1 1I 1 0 �. m z -1 • • •1 • • • • 64 L an • Exhibit "A" Bid 90-13