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HomeMy WebLinkAboutOrdinance 6404113 West Mountain Street Fayetteville, AR 72701 (479) 575-8323 Ordinance: 6404 File Number: 2020-1066 CLUB RUSH HOOKAH AND CIGAR LOUNGE: AN ORDINANCE TO APPROVE THE APPLICATION OF SAMI AMMAR HADDAJI, ON BEHALF OF CLUB RUSH HOOKAH AND CIGAR LOUNGE, FOR A PERMIT TO OPERATE AS A PRIVATE CLUB IN THE CITY OF FAYETTEVILLE AT 550-B WEST DICKSON STREET WHEREAS, Act 1112 of 2017, which amended the permitting procedure set forth in Ark. Code Ann. § 3-9-222 for private clubs in the State of Arkansas, requires the City Council to approve "by ordinance an application for a permit to operate as a private club" before the applicant can submit the application to the state Alcoholic Beverage Control Division. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the application of Sami Ammar Haddaji, on behalf of Club Rush Hookah and Cigar Lounge, a copy of which is attached to the agenda memo, for a permit to operate as a private club in the City of Fayetteville at 550-B West Dickson Street under the conditions set forth in Section 2. Section 2: This approval is subject to the following conditions, which must be satisfied prior to the issuance of a City private club permit: I . The business owner and business manager shall comply with all City of Fayetteville and Arkansas Alcohol Beverage Control (ABC) permitting regulations. Page 1 Printed on 1/20/21 Ordinance 6404 File Number 2020-1066 The business owner or business manager shall contact the Fayetteville Police Department's Community Oriented Policing Division to schedule training for their staff to properly identify fraudulent IDs. It is recommended that the business owner and business manager research different phone apps or programs to assist their employees in identifying fraudulent IDs. 4. A multi -camera surveillance system must be installed on the inside of the business to provide video surveillance of the main entrance/exit, bar area and registers. 5. The business owner and business manager shall provide a "good neighbor" policy to surrounding businesses and residents of the private club. 6. The private club representative who holds the ABC alcohol permit shall obtain the minimum training requirements as a Private Security Officer as defined in Arkansas Code Annotated 17-40-208. Upon completing the training, the private club representative shall receive a Private Security Officer training certificate. Anytime the ABC permit holder changes and a new ABC application for a "Change of Manager / Additional Stockholder(s) / Partner(s)" is completed, the newly approved ABC permit holder shall obtain the Private Security Officer training and certification as outlined in A.C.A. 17-40-208. The applicant will contact the Fayetteville Police Department's Special Events Division supervisor at 479-575-8350 to obtain additional information to complete this training. Upon completion of the required Private Security Officer training, the private club ABC permit holder shall provide a copy of the training certificate to the Fayetteville Police Department's Special Events Division supervisor. PASSED and APPROVED on 1/19/2021 Attest: Kara Paxton, City Clerk �r`i• •`;:F,9���. ,��_��� • GAT Y O'c •sG��': FAYETTEVILLE;�= •• 9 10P%;fANSP••���. ; ; ; ON 1, Page 2 Printed on 1120121 City of Fayetteville, Arkansas 113West Mountain Street rw \` Fayetteville, AR 72701 (479) 575-8323 Text File File Number: 2020-1066 Agenda Date: 1/19/2021 Version: 1 Status: Passed In Control: City Council Meeting File Type: Ordinance Agenda Number: B 3 CLUB RUSH HOOKAH AND CIGAR LOUNGE: AN ORDINANCE TO APPROVE THE APPLICATION OF SAMI AMMAR HADDAJI, ON BEHALF OF CLUB RUSH HOOKAH AND CIGAR LOUNGE, FOR A PERMIT TO OPERATE AS A PRIVATE CLUB IN THE CITY OF FAYETTEVILLE AT 550-B WEST DICKSON STREET WHEREAS, Act 1112 of 2017, which amended the permitting procedure set forth in Ark. Code Ann. § 3-9-222 for private clubs in the State of Arkansas, requires the City Council to approve "by ordinance an application for a permit to operate as a private club" before the applicant can submit the application to the state Alcoholic Beverage Control Division. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the application of Sami Ammar Haddaji, on behalf of Club Rush Hookah and Cigar Lounge, a copy of which is attached to the agenda memo, for a permit to operate as a private club in the City of Fayetteville at 550-B West Dickson Street under the conditions set forth in Section 2. Section 2: This approval is subject to the following conditions, which must be satisfied prior to the issuance of a City private club permit: 1. The business owner and business manager shall comply with all City of Fayetteville and Arkansas Alcohol Beverage Control (ABC) permitting regulations. 2. The business owner or business manager shall contact the Fayetteville Police Department's Community Oriented Policing Division to schedule training for their staff to properly identify fraudulent IDs. 3. It is recommended that the business owner and business manager research different phone apps or programs to assist their employees in identifying fraudulent IDs. 4. A multi -camera surveillance system must be installed on the inside of the business to provide video surveillance of the main entrance/exit, bar area and registers. 5. The business owner and business manager shall provide a "good neighbor" policy to surrounding City of Fayetteville, Arkansas page I Printed on 112012021 File Number 2020-1066 businesses and residents of the private club. 6. The private club representative who holds the ABC alcohol permit shall obtain the minimum training requirements as a Private Security Officer as defined in Arkansas Code Annotated 17-40-208. Upon completing the training, the private club representative shall receive a Private Security Officer training certificate. Anytime the ABC permit holder changes and a new ABC application for a "Change of Manager / Additional Stockholder(s) / Partner(s)" is completed, the newly approved ABC permit holder shall obtain the Private Security Officer training and certification as outlined in A.C.A. 17-40-208. The applicant will contact the Fayetteville Police Department's Special Events Division supervisor at 479-575-8350 to obtain additional information to complete this training. 7. Upon completion of the required Private Security Officer training, the private club ABC permit holder shall provide a copy of the training certificate to the Fayetteville Police Department's Special Events Division supervisor. City of Fayetteville, Arkansas Page 2 Printed on 112012021 City of Fayetteville Staff Review Form 2020-1066 Legistar File ID 1/5/2021 City Council Meeting Date - Agenda Item Only N/A for Non -Agenda Item Deputy Chief Jamie Field 12/2/2020 Submitted By Submitted Date Action Recommendation: POLICE (200) Division / Department Staff recommends approval of the private club application for the Club Rush Hookah and Cigar Lounge. Account Number Project Number Budgeted Item? Does item have a cost? Budget Adjustment Attached? Budget Impact: Current Budget Funds Obligated Current Balance Item Cost Budget Adjustment Remaining Budget Fund Project Title O V20180321 Purchase Order Number: Previous Ordinance or Resolution # Change Order Number: Approval Date: Original Contract Number: Comments: r4d; CITY COUNCIL AGENDA MEMO CITY OF FAYETTEVILLE ARKANSAS MEETING OF JANUARY 5, 2021 TO: Mayor and City Council FROM: Jamie Fields, Deputy Chief of li DATE: December 1, 2020 SUBJECT: Private Club Application for "Club Rush Hookah and Cigar Lounge" RECOMMENDATION: Staff recommends approval of this private club application with stipulations for Club Rush Hookah and Cigar Lounge BACKGROUND: Pursuant to Act 1112 of 2017, which amended the permitting procedure set forth in Ark. Code Ann. § 3-9-222 for private clubs in the State of Arkansas, requires the City Council to approve "by ordinance an application for a permit to operate as a private club" before the applicant can submit the application to the state Alcoholic Beverage Control Division. DISCUSSION: Sami Haddaji submitted a City of Fayetteville private club application on October 29, 2020 for private club "Club Rush Hookah and Cigar Lounge". Please refer to the list of internal stipulations on page 4 of the attached private club application. The previously established internal stipulations were provided by City Attorney's office, Chief of Staff, and the police department. BUDGET/STAFF IMPACT: The item has no impact on city budget or staffing. Attachments: Private club application for Club Rush Hookah and Cigar Lounge. Mailing Address: 113 W. Mountain Street www.fayetteviIfe-ar.gov Fayetteville, AR 72701 Fayetteville Police Department Regular Stipulations to Private Club Applications The Fayetteville Police Department approves of this private club application with the following stipulations: 1. The business owner and business manager shall comply with all City of Fayetteville and Arkansas Alcohol Beverage Control (ABC) permitting regulations. 2. The business owner or business manager shall contact the Fayetteville Police Department's Community Oriented Policing Division to schedule training for their staff to properly identify fraudulent ID's. 3. It is recommended that the business owner and business manager research different phone apps or programs to assist their employees in identifying fraudulent ID's. 4. A multi -camera Surveillance system must be installed on the inside of the business to provide video surveillance of the main entrance/exit, bar area and registers. 5. The business owner and business manager shall provide a "good neighbor" policy to surrounding businesses and residents of the private club. 6. The private club representative who holds the ABC alcohol permit shall obtain the minimum training requirements as a Private Security Officer (PSO) as defined in Arkansas Code Annotated 17-40-208. Upon completing the training, the private club representative shall receive a PSO training certificate, and the ABC permit holder shall be required to be retrained every two (2) years. Anytime the ABC permit holder changes and a new ABC application for a "Change of Manager / Additional Stockholder(s) / Partner(s)" is completed, the newly approved ABC permit holder shall obtain the Private Security Officer training and certification as outlined in A.C.A. 17-40-208. The applicant will contact the Fayetteville Police Department's Special Events Division supervisor at 479-575-8350 to obtain additional information to complete this training. 7. Upon completion of the required PSO training, the private club ABC permit holder shall provide a copy of their PSO training certificate to the Fayetteville Police Department's Special Events Division supervisor. 121112020 Staff Review �. Process of filing application for Private Club 1. You will have to contact ABC and request for the Private Club Application. 2. Once you get the application, please fill it out and upload it under the Prerequisites section. 3. Please go to the below listed website and make sure that your address is a VERIFIED address. http:/Iwww.fayetteville-ar.gov/3263/Address-Verification Please ppage 1 and 2 of the "Official Address Verification" letter. 4. Please upload all necessary documents and fill out all the information. You do not have to fill out the !Notarization section at this time. 5. Submit the form without filling out notarization section. You can at this time download and print the form. 6. When your completed application has been received, your request will be added to a City Council agenda for a public hearing and you will be notified of the date of the meeting. Please plan to attend the meeting to present your proposal to the City Council and answer any questions Council Members may have 7. Once the Ordinance is passed by the city, you will be notified. 8. You will send the Ordinance to ABC, so that ABC can mail you the Permit. 9. You will finally submit the Notarized copy of this application, a check in the amount of $250 and the State Copy Prerequisites ABC Application Upload Haddaji.ABC Application.pdf 121.05KB Official Address Upload Verification Haddaji.Address Verificatior.pdf 195.88KB Member List Upload Haddaji.Member List.pdf 281.14KB (No less than 100 members) Lease/Deed Upload agreement Haddaji.Lease.pdf 1.01MB (for the building that will be used) https:llcot-Ifforms.city.fyv.usIFormsffoffnlapproval/0ag7d376-d356Ae96-segbA46b67fae2319hideHeader-true 1/5 12/1 /2020 Staff Review Certificate of Good Upload Standing Haddaii.Certificate of Good Standing.pdf 52.28KB Start Application I (We) do hereby make application to the City of Fayetteville, Arkansas, for a Private Club Permit. Private Club Name Club Rush Hookah and Cigar Lounge Business Address Street Address 550-B W. Dickson Street Address Line 2 City State / Province / Region Fayetteville Arkansas Postal / Zip Code 72701 Is Mailing address Yes v same as Billing address List All Persons Owning or Holding an Interest in the Private Club (Attach supplement, if necessary) Name Address (#, Street, City, State, Zip) Phone Birth Date Sami Haddaji 2128 N. Garland Ave., #1, Fayettt 479-228-8530 01/29/1986 000-000-0000 mm/dd/yyyy Trisha Caldwell 2128 N. Garland Ave., #1, Fayettt 479-601-3969 01/13/1976 000-000-0000 mm/dd/yyyy Add Owner of building in which business is located: Name Address Phone https:/lcof-Ifforms.city.f*usIFormslformlapproval/Oa97d376-d356-4e96-aegb-446b67f8e2311hideHeader--true 2/5 12/1/2020 Staff Review Fayetteville Depot, LLC c/o Greg House 217 N. East Ave., Fayetteville, A 479-521-9155 000-000-0000 Add Date Club Organized 06/28/2004 mm/ddlyyyy Current Number of 105 Members Amount of $5 Membership Dues Check One Q Annual Lj Monthly j N/A Method used for ❑ Locker System (Beverages owned by members individually) : dispensing alcoholic Pool or revolving fund system (Beverages owned in common by membership) : beverages: Applicant's Name Sami Haddaji (Please Print) (Must be person listed on State Permit) Title President/Director Date of Birth 01/29/1986 mm/dd/yyyy Applicant's signature 1w #W14G (Must be person listed on State Permit) Notarization Subscribed and swom before me this day of ,20 Notary Public https.11cof4ffomts.city.fyv.us/Formalform/approvaUOag7d376-d356-4e96-aegb446b67ff23i?hidsHeader-true 36 12/112020 Staff Review (Seal) Internal My commission expires Police Comments The Fayetteville Police Department approves of this private club application with the following stipulations: 1. The business owner and business manager shall comply with all City of Fayetteville and Arkansas Alcohol Beverage Control (ABC) permitting regulations. 2. The business owner or business manager shall contact the Fayetteville Police Department's Community Oriented Policing Division to schedule training for their staff to properly identify fraudulent Us. 3. It is recommended that the business owner and business manager • Attorney's Office No comments. Comments Chief of Staff I agree with the stipulations as specified by Sgt. Lindley and the Police Comments Department. https://cof-ifforms.city.fyv.usIFormstform/approva110a97d376-d366-4e96-aegb-446b67f8e2317hideHeader—true 4/5 1211l2020 Staff Review Chiefs Comments All FPD stipulations have been outlined by Sgt. Lindley in the Police Comments section. Arkansas Code Annotated 3-9-222 requires the City Council to approve by ordinance an application for a permit to operate as a private club before the applicant can submit the application to the state Alcoholic Beverage Control Division. Mike Reynolds Chief of Police Final Comments * Comments https:llcof--I(forms.city.fyv.us/ForrnaMormlapproval/Oa97d376-d356-4e96-ae9b-446b67f8e2317hIdeHeader=true 515 STATE OF ARKANSAS ALCOHOLIC BEVERAGE CONTROL DIVISION APPLICATION FOR PRIVATE CLUB PERMIT Private Club Permit No. 04224 We hereby make applications for permits to serve alcoholic beverages on our premises to the club's adult members, members of their families over the age of 21, and duly qualified guests. Deia Vu Dueling Pianos, Inc. FEIN# Non -Profit Corporation APPLICANT ON BEHALF OF CLUB Sam! First Middle Haddaji Last HOME ADDRESS 2128 N. Garland Ave., #1, Fayetteville 72704 Washington Street y City Zip County BUSINESS NAME Cluh Rush Hookah and Cigar Lounge BUSINESS ADDRESS , 550-B W. Dickson St. Fayetteville 72701 Washington Street City Zip County Is proposed location inside or outside city limits? Inside Does the club own the premises? No If leased, give name and address of owner: Favetteville Depot, LLC c/o Greg House 217 N. East Ave.. Fayetteville, Arkansas 72701 Is your establishment primarily engaged in the business of serving food for consumption on the premises? No Under which system of dispensing alcoholic beverages will the club operate? Pool/Revolving X Locker Does anyone now hold an alcoholic beverage permit a this location? Yes If so, give name, address and permit no. (s) Sami Haddaji, 550-B W. Dickson Street, Fayetteville Permit No. 04224 Amount of Dues $ 5 ANNUAL (A) MONTHLY () Give names and addresses of all officers/directors of the non-profit organization: NAME TITLE ADDRESS 2128 N. Garland Ave., #1 Sami Haddaii President/Director Fayetteville, Arkansas 72704 2128 N. Garland Ave., #1 Trisha Caldwell Secretary/Director Fayetteville Arkansas 72704 Has any member of the club's board of directors or other governing body, or any club officer, been under the sentence, whether suspended or otherwise, of any court for the conv%tion of a felony rvlthin two (2) years preceding the date of this application? YES NO � X Tf yes, please explain Signed this _A(D day of akv ,(' Signa`" p licant/ Managing Agent �(r-n,tA t_,4, Official Title Subscribed and sworn to before me this 2G day of i a Notary Public My Commission Expires: TEO �.�``�►�� tss+aiv'"�9Q'''rs • 0'1'�t y THE CITY OF FAYETTEVILLE, AR October 20, 2020 Official Address Verification To Whom It May Concern: This letter is to serve as a notification for address verification. The following is a valid address in the City of Fayetteville E911 system: ADDRESS ZIP CODE COUNTY PARCEL 550 W DICKSON ST 2 72701 I 765-12875-000 For your convenience, a map of the above address is attached. Please feel free to contact the Fayetteville E911 Addressing Coordinator should you have any questions or concerns. 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I .,.....a R.,... +. •• �.1. ,., ., : m..,- . d......, + . - .. .t ..'"- r•NMw Nelb 101.P+dM.M.IIeI qI NeeUr�V11p.IPM•MwVeIA Adams. Cameron 474 N Coral Canyon Apt. 423 Fayetteville, AR 72703 Allred. Jcob 15412 meadow In Lowell AR 72745 Alvarez, Luis 2323 W Beechwood Dr, Rogers. AR 72756 Balbad, Farris 655 Whitham, Fayetteville, AR 72701 Bell, jay 2343 N Hatterly Ln, Fayetteville, AR 72704 Bell, Bryan 2343 N Hatterly LN, Fayetteville, AR 72704 Benton, Christen 3727 Rebecca Dr, Greenwood, AR 72937 Betts, Danielle 1953 Citrine Link, Fayetteville, AR 72701 Bonds, Tiffany 708 Greenway St., Lowell AR 72745 Burdick, Daniel 4621 W Mountain Grove Rd, Alma, AR 72921 Burdict Nathan 9927 Booth Rd, Mulberry, AR 72947 Castillo, RJ 9220 WPA Rd, Gentry, Ar 72734 Cervantes, Carlos 1106 Rozell St, Rogers, AR 72756 Clark, Jennifer 925 E. Jackson Dr, Fayetteville, AR 72701 Cluck, Madison 300 cabana- Cay circle, #121 Panama City,FL 32413 Coalz, Katherine 2064 Peridot PI, Fayetteville, AR 72703 Collins, Debra 226 E 13th St, Fayetteville, AR 72703 Convirs, Charity RR 2 Box 1751 Sbiwell, OK 74960 Convirs, Chris RR 2 Box 1751 stilwell, OK 749 Convirs, Hope 1188 N Haven Dr, Apt. D101 Fayetteville, AR 72703 Convirs, Minnie RR 2 Box 1751 stilwell, OK 74960 Creekmore, Jeff 1007 S 1st. St, Rogers, AR 72756 Daine, Ronald 226 E 13th St, Fayetteville, AR 72703 Dans, Lena 12461 Paige Ln Farmington, AR 72730 Darafree. Jacob 716 E Sumac ST, Rogers, AR 72756 De La Luz, Itzel 561 Caboose Ln #104 Springdale, AR 72764 Debbie maples 202 W. Caldwell St., Fayetteville AR 72703 Deloach, Seth 988 S Kin fisher Ln, Fayetteville, AR Diaz, Monica 1877 N Batsford Dr, Rogers, AR 72704 Dinku. Meti 833 W Sycamore St. Apt. 2 Fayetteville, AR 72701 Dinku, Yadi 833 W Sycamore St, Apt. 6 Fayetteville, AR 72701 Fry, Jackie 1384 Kay Lyn Dr, Pea Ridge, AR 72751 Gasasu, Eddy 707 W Treadwell St, Fayetteville, AR 72701 Gasasu, Mike 707 W Treadwell St, F etteville, AR 72701 Gedinoz, Victor 501 E Pinion, Rogers. AR 72756 Gil en, Chandler 2303 W Worthington Ave, Bentonville, AR 72713 Gonzales, Janet 2504 SW Ryder St, Apt. 36 Bentonville; AR 72712 Gonzalez, Eddie 7483 Newport Dr, Apt. 9, Rogers. AR 72703 Greene, Alissa 5900 Kinhead Ave, Fortsmith AR 72903 Guest, Sydney 402 Bilek Dr, Texarkana, TX 75501 Gus, Facio 606 S West End St, S do dale, AR 72764 Hardin, Timothy 1713 S Q St Fortsmith AR 72903 Herera, Chris 3000 N Dixieland Rd, Rogers, AR 72758 Hemandez, Jessica 206 Sage St. Springdale, AR 72764 Hightower. Ashleigh 1720 River Overlook Loop, Van Buren AR, 72956 Hishtower, Mike 3027 S 66th St, Fort Smith, AR 72903 Holcomb. Clifton 165 Terry st Farmington, AR 72730 Jeffries, Elizabeth 1301 Avenue 3 Southeast Atkins AR 72823 Jones, Kelley 3191 dogwood views rin dale AR 72702 Ka a u, Sheila 763 W Rainbow dr Fayetteville AR 72703 Kamarade Douglas 850 n Oakland Ave Apt 4 Fayetteville AR 72701 KAMARADE. LIZ 850 N OAKLAND ave Apt 4 fa etteville AR 72701 Kamarade, Sonia 1010 S Dunn st apt 203 fa etteville AR 72701 Knight, Ton a 260 W. MLK Boulevard Fayetteville, AR 72701 Labelle, Kevin 2024 N Shannon Dr Fayetteville AR 72703 L.a ueux, Jay 2606 E central Ave #21 bentonville AR 72712 Lamb, Jessica 260 W. MLK Boulevard Fayetteville Arkansas 72701 Lamb, loweil 360 Gillette Ln., Clinton, AR 72031 Leal, Alberto 1421 mulberry IN, bethel heights AR 72764 Leal, cados 578 mulberry IN, bethel heights AR 72764 Lenmmon, Jenna 1007 S 1ST ST roers AR 72756 Lewis. Colton 692 North Wordsworth Lane Fayetteville AR 727704 Lions, Daniel 360 Gillette Ln., Clinton, AR 72031 Lopez. Alex 6001 W knoll view way Rogers AR 72758 Louis, Colton 692 N. wards worth Ln., Fayetteville, AR 72704 Lynn, Tori 1223 N haven dr Apt E 401 Fayetteville AR 72703 Maurer, Zach 14850 Ireland Ln., Frisco, TX 75035 Melon , melong 2722 Crooked Creek Circle, Springdale AR 72764 Neiderbaumer, Liam 15206 N. Laurma Ln. fountain Hills AZ 85268 nun, Maggie 1914 Willow Ridge Ave., Springdale AR 72764 No a, aubin 707 W. Treadwell St. Apt seven Fayetteville, AR 72701 O'Connor, Erin 1833 E. Viewpoint Dr. Fayetteville AR 72701 Peredo, lourdes 7274 Hayden Way Springdale, AR 72762 Phelan, Cherokee 2550 Iron Ave., Farmington, AR 72730 Pineda, David 1110 S. C Court, Rogers, AR 72758 Quezada, mano 406 W. East St, Rogers, AR 72756 Ramirez. Edwin 501 E. Pinion St., Rogers AR 72756 Ramos. Nico 2020 N. Chestnut Ave., Apt 12 Fayetteville, AR 72703 Rice. Abigail 1404 Abraham Dr., Siloam S rin s AR 72761 Roberts, Austin 1404 Abraham Dr., Siloam Springs AR 72761 Samuel Manson 1211 W. James St., Fayetteville 72703 Sandoval, 'ose 602 Topaz St, Lowell AR 72745 Schmidt, Mary 1107 Rozell St Rogers, AR 72756 Schmidt, Shannon 1107 Rozell St Rogers, AR 72756 Schultz, grant 3000 S. 28th PI. Rogers, AR 72758 Seifu, Johannes 1571 N. Leverett Ave. apartment 51, Fayetteville, AR 72703 Seifu, Nehemia 833 W. Sycamore St. Apt. six Fayetteville, AR 72703 Seifu, Rebecca 833 West Sycamore St., Apt. 6, Fayetteville, AR 72701 Stags. Tyler 4609 County Creek Drive unit 1018, Dallas, TX 75236 Stratton, Sandra 165 Terry st Farmington, AR 72730 Thomas, charu 1223 N. Hamann Dr. Apartment E401 Fayetteville AR 72703 Toros, Pamela 709 N. Arkansas St. Rogers AR 72756 Tumer, Kelsey 219 apartment a Raven Wood St., SiloamS rin s, AR 72761 Vinson, Thomas 702 Janet St., Springdale AR 72762 Wappler, Paul 17 Carroll Dr., Bella Vista AR 72714 Ware, Shawna 606 SW. End St., Springdale AR 72762 White. Lathan 10080 N. 427 Rd., Hulbert Oklahoma 74441 Xion . Lily 1106 W. Cunningham Ave. Rogers AR 72758 Zanotto, Bethany 688 N. Leverett Ave. Fayetteville Arkansas72701 Zinc, Jack 3315 Hill Ave., Fayetteville AR 72701 COMMERCIAL LEASE CONTRACT Date Jantiar; 0 2t)tL IT 15 U(IDERSTOOD, COVENANTED AND AGREED that In consideration of the promises contained herein, the rent herein reserved, and of the covenants herein contained by sa;d Lessee to ne performed, the Lessor hereby leases to the Lessee, and the Lessee hereby agrees to lease from the Lessor. 55C B West Dickson -St Fayetteville, AR 72701 , hereafter the Leased Premises, according to the following terms and conditions 1. PARTIES: This Lease is between_H_ADDA.JIAMIR LLC (Lessee), and SarniHaddaji as Guarantor, and I louses Incorporated. agent for owner, Fayetteville Depot, LLC. With offices at 217 North East Avenue, Fayetteville, AR 72701 (Lessor), for use as a hookah bar only. 2. LEASE TERM: The Initial term of the Lease shall be for 2 Years and shall begin on Fehniary ly 2010 _ and shall end on January 31 2020 3_ RENT: Lessee will Gay as rent _�!t8.000.00/annum for the initial term, payable in installments of S4000.00 per month. The monthly rent shall be payable, without demand, at Lessor's office at 217 North East Avenue, Fayedeville, AR 72701. on or before the first (1") day of eacli month. If all rent is not paid on or before the third (31h) of the month, Lessee agrees to pay a tale charge of 5% of amount due plus $50 00 per day thereafter until paid. Rent unpaid after the seventh (71") day of the month is delinquent and will authorize all remedies In the Lease. Lessee agrees to pay a $25.00 charge per check for any returned checks. 4. OPTION TO RENEW: Provided that this Lease is then in full force and effect and has not been terminated by lessor or Lessee, i.essee shall have the opt:on to renew this Lease for an additional year at $4.500.00/ month Following year 3 of this lease and promded all terms and conditions of this lease have been met by Lessee, Lessee to have an additional option term of 3 years Rent for said option term to be negotiated and agreed to 120 days before expiration of previous lease term. Base rent for each Option Term shall be subject to the annual CPf adiustments described in paragraph 5 5. COST OF LIVING ADJUSTMENT: Sass Rent after the 1"year, shall be adjusted at the beginning of each year during the remainder of the Lease and for each year of any Option Term, by a percentage increase in the Consumer Price Index for all Urban Consumers (CPI-U) for the U.S. City Average for Ail Items from the first month of the previous term year to the end of such term year. Any CPI Rate increase to be capped at 3% per annum. 6. SECURITY DEPOSIT: Lessee will deposit with Lessor the sum of 110.000.00 Said deposit shall be held by Lessor as security for the faithful performance by Lessee of all the terms, covenants, and conditions of this Lease. $5,000.00 of the security deposit shall be refunded once Lessee's improvements are completed, paid for and Lessee is open for business If at any time during or after the term of this Lease, any of the rent or other moneys due hereunder shall be overdue and unpaid, or any other sum payable to Lessee to Lessor hereunder shall be overdue and unpaid, Lessor may, at the option of Lessor (but Lessor shall not be required to), appropriate and apply any portion of sa;d doposit to said sums. Lessor and Lessee acknowledge antl agree that the aforementioned deposit and rights of Lessor to appropriate same are not Lessor's scle remedy against Lessee for the performance of Lessee's obligation hereunder Such remedy and the remedies set forth in the remainder of this paragraph shall not be deemed to be the exclusive remedies for Lessee's breach of this Lease but shall be in addition to aQ other remedies available at law or equity !o Lessor. Should Lessee comply with all of the terms, covenants and conditions and promptly pay all of the rental herein provided as due, and all other sums payable to Lessee to Lessor hereunder, the said deposit shall be returned in full to lessee at the end of the term of COMMERCJAL LEASE CONTRACT Page 1 (his Lease and/or any option period. MAINTENANCE BY LESSEE: Lessee shall be responsible for: a. All cleaning of the interior area of the Leased Premises, interior and exterior window cleaning and; b. Routine maintenance of the heating, ventilation and air-condition system, plumbing and electrical systems. MAINTENANCE BY LESSOR: Lessor to be responsible for: a. All maintenance, replacement and repair to the roof, outer walls exclusive of plate glass, and structural portion of the buildings which shall be necessary to maintain the building in a safe, dry and tenantable condition. b. All major repairs to HVAC, plumbing, and electrical system. C. All grounds and parking lot maintenance. 9. REAL ESTATE TAXES, INSURANCE AND OTHER ASSESSMENTS: Lessor will pay all real estate taxes and property damage insurance, and other assessments which are assessed or imposed upon the Leased Premises or any part thereof, and due and/or payable during the term of this Lease. 10, UTILITIES: Lessee shall be solely responsible for and promptly pay all its utilities, including its prorate shar for trash dumpster service based on total sq. footage of use 11. PURPOSE: Said premises shall be occupied by Lessee for the operation of a hookah bar and for no other purpose or purposes without written consent of Lessor, such consent not to be unreasonably withhold. 12, PROPER USE OF PREMISES: Lessee shall not perform any acts or carry on any practice which may injure the building or be a nuisance or a menace to others, and shall keep the Premises under its control, clean and free from rubbish and dirt of all kinds Lessee agrees to use diligence in keeping trash and fitter picked up in the area around the premises, to keep Premises clear and free from rodents, bugs and vermin, and to bear the expense of general extermination. The lessee shall not use or permit the use of any portion of said Premises for sleeping apartments, lodging room, or for any immoral or unlawful purpose or purposes. If Lessee fails (o maintain the Premises in a neat, clean and orderly manner. Lessor may give Lessee written notice to do so, stating with particularity the deficiencies and if Lessee fads or refuses to remedy the situation set forth in the written notice for a period of ten (10) days. Lessor may have sucn deficiencies corrected at the expense of the Lessee. 13. NOW COMPETE: Lessee shall have the exclusive right to operate a hookah bar at the center and neither Lessor nor its affiliates or successors or assigns shall permk or suffer any other Lessee in the center to operate a hookah bar Lessor agrees to enforce Lessee's rights under this Section against other Lessees in the center using all reasonable legal means. Lessor covenants that leases in the Center dated later in time to the dale this Lease is fully executed shall require those Lessee's to honor Lessee's nights hereunder Lessor understands that its breach of this provision will cause Lessee irreparable harm for which Lessee has no adequate legal remedy, and that in the event of such breach, Lessee shall be entitled to immediately abate 50% of its Base Rent, and shall be entitled to Injunctive relief as well as all other remedies available at law or equity. If the breach of this provision is not cured within three -hundred and sixty-five (365) days from that date of such breach, then Lessee shall have the right to terminate this Lease and recover from Lessor the costs of Lessee's leasehold improvements to the Premises as of the date of such breach, decreased by amortization, based on the straight line method of amortization, over a period equal to the length of Term of the Lease (including any Extension Options), but not to exceed twenty (20) years Lessee is aware of and has been provided a copy of Lessor's non -compete agreement with Chipotle COMMERCIAL LEASE CONTRACT Page 2 Mexican Grill Furthermore Lessee or it's assigns will not offer specialized coffees ;with the exception of Turkish tea and Moroccan coffee provided Arsaga's grants approval) or crepes In compnnt,on with Arsaga's located tc the north of Lessee's Premises is OCCUPANTS: Tne premises will ba occupied by Lessee and/or such officers, directors. agents, employees, guests. mv,tees or customer; of Lessee as would be normal in the ordinary course of Lessee s business No other occupants are permrted Res:d:ng on Uie leased premises is forbidden It is agreed that breach of this section constitutes a default, which cannot be cured. and at the option of the Lessor• will provide cause for immediate termination of the tenancy Whether or not the Lessor makes the election to terminate the tenancy. Lessee and/or his co -obligors or successors agree to pay as liquidated damages an amount equal to 11101h of the monthly rental rate then in effect, per person, per day, for each day Lessee is in violation of the sut,�-section Said liquidated damages shall be in addition to any other remedies Lessor may have at law or equity, or pursuant to this Lease Agreement, 15. SUBLETTING, ASSIGNMENT: The Leased Premises may not be sublet not can Lessee assign this Lease without the prior written consent of Lessor, which Lessor will not unreasonably withhold. 16 SIGNS, AWNINGS, CANOPIES, FIXTURES, ALTERATIONS: Lessee may at ds sole cost and expense, make such non structural alterations, additions or changes, in and to the Leased Premises as it may desire provided, however, Lessee shall first obtain Lessor's prior wntten consent for any such non- structural alterations, additions or changes Lessee shall not make or cause to be made any alterations, additions or improvements or install or cause to be installed any exterior trade fixture. extenor signs. exterior lighting, light bulbs in the units plumbing fixtures, shades or awnings or make any other changes to the exterior without first obtaining Lessor's wntter approval and consent Lessee may make nn afteiations, additions or changes which, in the opinion, of Lessor or its engineers, affect the stuctural irriegnty or historical or architectural character of the Leased Premises without Lessor's prior written consent. Lessee shall present to Lessor Plans and Specifications for any work proposed by Lessee at the time approval Is sought and Lessor shall not unreasonably withhold such consent 17. OWNERSHIP OF IMPROVEMENTS: All alterations, additions and improvements which may be made by either of the above parties hereto upon the Premises and which in any manner are permanently attached to the floors, wall or ceiling, shalt be considered the property of the Lessor and shall remain with the surrendered Premises as a part thereof without disturbance, molestation or injury at the termination of the Lease Light fixtures, tables and chairs or seating, TVs sound or electronics, s:gnage, additional equipment added to the Premises not Included on Exhibit A. and any other improvement that can be reasonably detached from the Premises without damage to the Premises, will remain the property of the Lessee and Lessee will have right to remove said improvements from Premises 1& SECURITY AGREEMENT: Any rents or other monies due the Lessor by the Lessee that are not paid when due shall bear interest at the rate of ten percent (10%) per annum until paid. Pursuant to the Arkansas Uniform Commercia! Code (Ark Stat 65.9-101ff), the Lessee hereby grants to the Lessor a security interest :n all goods, wares, merchandise, fumiture and equipment in which the Lessee has an interest and placed in or on said Premises to secure rents, other monies and interest due or to become due to the Lessor under the Lease It is understood between the parties that such security interest, as it pertains to items of inventory only, shall rot be enforceable unless Lessee is in default of its obiigations under this Lease and until said items are in possession of Lessor Lessor agrees to subordinate its security interest herein to Lessee's purchase money lender 19 ALTERATIONS, ADDITIONS S EXTENSIONS TO THE BUILDING, COMMON AREAS, OR THE LEASED PREMISES: Lessor hereby expressly reserves the right to make any alterations, additions, or extensions to the building the premises, and/or common areas, including the Parking area that Lessor deems necessary or reasonable in Lessor's sole discretion during the Lease Term Lessor reser es the COMMERCIAL LEASE CONTRACT Page 3 right to alter Premises as may be required by any governmental authority or as may be required to reserve. maintain, and/or protect the building or Premise. Such alterations shall not reasonably interfere with operation of Lessee's business or in the usefulness of the Premises to Lessee for the herein stated purpose. Any future development, alteration, addition or extension to common area, parking lot, center or building that interferes with the operations of Lessee's business shall violate the terms of this lease and Lessee shall have first right to terminate this lease and its sole discretion and recover from Lessor or Landlord or Assigns the costs of Lessee's household improvements to the Premises. 20. CONDITION OF PREMISES ON MOVING IN AND MOVING OUT: Upon taking possession Lessee accepts the premises fixtures, and/or appliances as is except for conditions matenally affecting health or safety of ordinary persons. Lessor makes no impl(ed warranties Within 1 week after move -in. Lessee shall note any defects or damages in the premises by notifying the Lessor in writing, otherwise, everything will be deemed to be in clean and good condition. Within 10 days after taking possession, Lessee shall note any defects or damages to the equipment listed in Exhibit A attached by, notifying the Lessor in writing; otherwise, everything will be deemed to be acceptable and in operating condition. Lessee shall have right to use ALL Items listed on Exhibit A as it sees fit Lessee is not liable for normal wear and tear of the items listed on Exhibit A, nor will Lessee be required to repair or replace said items if they are reasonably beyond repair as a result of normal wear and tear or length of use or if Lessee decides to discontinue their use. Lessee will hand over any unwanted or unused contents or equipment to Lessor. 21 SUBORDINATION: This lease is subject to all present or future mortgages. deeds of trust or hens, affecting the demised premises and Lessee hereby appoints the Lessor as Lessee's Attorney -tin -Fad to execute and deliver any and all necessary documents to subordinate this lease to any present or future mortgages or deeds of trust affecting the demised premises. 22 CONDEMNATION: In the event the demised premises, or any part thereof, are taken by condemnation by the United States, the State of Arkansas, or any other governmental agency of authority in such a fashion that Lessee cannot use the premises for its intended purposes, this lease can be terminated at the option of the Lessor or Lessee If part of the property is condemned, the Lessee may elect to continue under the lease and shall be entitled to equitable abatement of rent The Lessee shall be entitled to any condemnation award allocable to improvements that the Lessee made to the property. 23. LIABILITY: Lessor will not be liable to Lessee, Lessee's agents, employees, guests. Invites. customers, or other occupants for any damage or loss to person, entity, or property caused by other persons Including theft, burglary, assault, vandalism, or other crimes Lessor will not be liabie to Lessee. or any of Lessee's agents, employees, guests, invites, customers, or other occupants for personal injury or for damage to or loss of their personal property from fire, flood. water leaks, rain, hail, ice, snow. smoke, lightning, wind, explosions, interruption of utilities or other occurrences unless such injury, loss or damage is caused by negligence of Lessor. Lessor will furnish locks and latches as required by statute Except as required by statute, Lessor will furnish no additional extra locks and latches, security guards or patrols, security lighting, security gates or fences, or other forms of security Lessee agrees to exercise due care for the safety and security of Lessee and all persons in Lessee's premises. Lessee is urged to keep doors and windows locked at all times,- window screens and screen doors are not to be considered as secure windows and doors, but are furnished for ventilation purposes only Lessee acknowledges that any security measures provided should not and will not be treated by Lessee as a guarantee against crime, but are provided for the purpose of protecting the physical property of the Lessor and not to guarantee safety of the Lessee If Lessee is in need of security services, Lessee should contact local law enforcement and/or other private security companies, If Lessor's employees or sub -contractors are requested to render services not contemplated in this Lease. Lessee agrees to hold Lessor harmless from ail liability regarding same h is expressly understood and agreed by the Lessee that if the Lessor shall furnish any automobile parking space, elevators or other "common areas," or any other facilities outside of the premises herein expressly demised to the Lessee same shalt be deemed to be gratuitously furnished by the Lessor and that if any person shall use the same, he or she does so at his or her own risk and upon the express understanding and stipulation that the Lessor shall not be liable for any loss of property through theft, casualty, or otherwise, or for any damage or injury whatever any to person or property unless such injury, COMMERCIAL LEASE CONTRACT Page 4 loss or damage is caused by negligence of Lessor 24 INSURANCE: Lessee and/or its permgteo assigns under this agreement shall procure and maintain at all Arnes during the Term, at its sole expense a colrcy or policies of uomprehensrve general tusiness insurance, public liability insurance, liquor liability (DRAM) it appl:cable to Lessee s and/or assign's use and Are extended coverage Crooerty damage insurance naming both Lessor and Lessce as properly or person Such insurance shall be in an amount of at least $1,000.000 00 for general business, public liability and liquor liability, and $500,000 00 per occurrence of damage to property or person All insurance shall be procured from Insurance companies authorized to do business in Arkansas and approved by Lessor, such approval shalt not unreasonably he withheld Lessee shall, within three (3) business days of the delivery of notice that the space is ready for occupancy, and thereafter upon request, provtdo Lessor with proof of its or assignee s procurement or maintenance cf any insurance Each such insurance policy shall not be cancelable without 10 days' prior written notice to Lessor. If Lessee fails to procure or maintain any insurance required hereunder, Lessor may procure or maintain reasonable insurance and charge Lessee w1h actual expense thereof with interest at the highest lawful rate. 25. REPAIRS AND MALFUNCTION: Lessee agrees to request ail repairs and services to writing to Lessors designated represenative except in an emergency when telephone cWs mil be accepted Lessor shall have the right to temporanly turn oft equipment and interrupt utilities to avoid damage to property or to perform repairs or maintenance, which require such interruption In case of malfunction of utilities or damage by fire, water or similar cause. Lessee shall notify Lessors representatives Lessor shall act with diligence in making repairs, and the lease shall continue and the rent shall not abate during such periods unless malfunctions or damages unreasonably restrict Lessee from performing usual daily work If fire or catastrophe damages ,n the premises are substantial in the reasonable judgment of Lessor, Lessor may terminate this Lease within a reasonable time by giving wntten notice to Lessee. If the Lease Is so terminated, rent shall be prorated and the balance refunded along with all deposits, less lawful deductions. 26 REIMBURSEMENTS: Lessee shall promptly reimburse Lessor for any loss, property damage, or cost of repairs of service caused in the premises or community by negligence or improper use by Lessee of lessee's agents, employees, invites. customers, or other occupants Lessor will not be liable for and Lessee shall pay for the following if it occurs during the lease term or renewal period (a) damage to doors, windows, or screens unless due to negligence of Lessor. (b) repair costs and damages from plumbing stappages in lines exclusively serving Lessee's premises and (r,) damages Irom windows or doors left open: Lessors failure or delay rn demanding rent, damage reimbursement, late -payment charges. returned check charges, or other sums due by lessee shall not be deemed a waiver, and Lessor may require payment of same at any time, including deduction from security deposit Lessor may require advance payment for repairs for which Lessee is liable 27 LESSEE INDEMNIFICATION OF LESSOR: Lessee will indemnify defend and hold harmless Lessor from and against any and all loss, cost, claims, damages, actions, liability and/or expense in connection with loss of life. personal injury and/or damages to property, tangible or intangible, including the Leased Premises, and any personal property brought onto the Leased Premises arising from or out of any occurrence In, upon or at the Leased Premises, or the occupancy or use by Lessee of the Leased Premises or any part thereof, or occasioned wholly or in part by any act or omission of Lessee, Lessees agents employees, invites, guests, contractors, sub -!eases. concessionaires or customers. In the evert Lessor, shall, without fault on its par.. be made a party to any litigation commenced by or against Lessee. then Lessee shall indemnity, defend and hold Lessor harmless and shall pay ail reasonable costs, reasonable expenses and reasonable attorney's fees that may be incurred or paid by Lessor in enforcing the covenants and agreements in this Lease. 28. HOLD -OVER: If Lessee holds over without Lessors written permission and fails to move out on or before the exact date required under this Agreement (I.e., the end of the lease term or the end of the month of any renewal or extension term, as set forth in the written notice of termination), Lessee shall be liable to pay double rents for the hold -over period ane to indemnify Lessor and/or prospective Lessees for damages CO! )AFRCIAL LEASE CONTRACT Page 5 lriciurred, including !oat rentals and lodging expenses. Holdover rents shall be immediately due on a daily basis and shall be deemed delinquent without notice or demand. 29. LESSOR'S COVENANT OF QUIET ENJOYMENT: Upon payment by the Lessee of the rents herein p,ov!dcd, and upon the obseivanca and performance of all the covenants, terms and conditions on Lessee's part to be observed and performed. Lessee shall peaceably and quietly hold and enjoy the demised premises for the term hereby demised without hindrance or interruption oy Lessor or any other person cr persons lawfully or equitably claiming by, through or under the Lessor subject to the terms and condilicns of this Lease However, any repairs or maintenance that are performed, should be performed by the mutual consent of Lessor and Lessee at a time and in a manner which are calculated in exercise of good faith and reasonable business practice to minimize any disruption of Lessee's business. Lessee or Lessee's guests not be loud or boisterous outside the building, in the common areas of the building, or in the space the Lessee is renting. There is no sleeping or residing in the office sr.•ace 30, RIGHT OF ENTRY: If Lessee or Lessee's employee is present, then repairmen, servicemen or Lessor's representatives may enter the premises during reasonable times for reasonable business purposes. If no one is in the premises, then repairmen. servicemen, Lessor or Lessor's representatrv: may enter at reasonable times by duplicate or master key for the following purposes. responding to Lessee's requests to make repairs, estimating repair or refurbishing costs. emergency safety or fire rr.sFections, avoiding property damage, exercising contractual rights, remcvrr:g or re -keying authorized locks or latches Lessor may enter with 24-hour notice for purpose of placing 'For Lease' signs on premises or showing the premises to prospective Lessees, (up to 120 days pner to end of lease term, or once notice to vacate has been given), or to allow access to government inspectors, fire marshals, lenders, appraisers, prospective purchasers or insurance agents. 31. DEFAULT BY LESSEE: Any one or more of the following events shall constitute an "Event of Default": a. The filing of a petifiwn proposing the adjudication of Lessee or any guarantor of Lessee's obligations hereunder as a bankrupt of insolvent or the reorganization of the Lessee or any such guarantor or an arrangement by Lessee or any such guarantor with its creditors, whether pursuant to the Federal Bankruptcy Act or any similar federal or state proceeding, unless such petition is filed by a party other than Lessee or any such guarantor and said petition is withdrawn or dismissed within sixty (60) days after the date of its filing; or. b. The appointment of a recerver or trustee for the business or property of Lessee or any such guarantor, unless such appointment shall be vacated within sixty (60) days of its entry; or, or, c. The making by Lessee or any Ruch guarantor of an assignment for the benefit of its creditors; d, The failure of Lessee to pay any rtem of rent, or rent is not paid within seven (7) days after notice of default is received by Lessee, or other sum of money within ten (10) days aher notice of default is received by Lessee; or, e. Vacating or removing property from the Leased Premises other than in the normal course of business, or, f. Failure by Lessee in the performance or observance of any covenant or agreement of this Lease (other than a failure involving the payment of money), which failure Is not cured within thirty (30) days of receipt by Lessee of notice of default or, g. Violation by Lessee of any applicable Federal, state or local laws as same pertain to this Lease; or, h. Lessee abandons the Premises for more than thirty (30) continuous days. I. There is absolutely no residing in the unit; tenant or tenant guests may not steep in the unit. k. There is no pets allowed in or on the property. 32 REMEDIES IN EVENT OF DEFAULT: Upon the occurrence and continuance of an Event of Default. Lessor may, without notice to Lessee (except where notice is expressly required by law), do any one or more of the following a Perform, on behalf and at the expense of Lessee, any obligation of Lessee under this Lease COMMERCIAL LEASE CONTRACT Page 6 Which Lessee has faded to perform, the cost of %:hich Pertormance by Lessortogether with interest thereon at the highest rate permitted ty taw from tt'e date cif s, uch expenditure, shall be deemed additional rental hereunder and shall be payable by Lessee to Lessor upon demand; b Elect to terminate this Lease and the tenarcy created hereby by giving notice of such election to Lessee. and may reenter the Leased Premises. wilhuut the necessity of legal proceedings and may remove Lessee and all other parsons (if Lessee Is stilt In possession) and property from the Premises and may store such property in a public warehouse nr of ewhere a1 the cost of and in the account of Lessee without resort to legal process and vritnout Lessor oeing deemed guilty of trespass or becoming liable for any loss or damage occasioned thereby. c, Lessor may declare immediately due and Payable the balance of any rent Operating Costs and other charges that may otherwise be due and payable over the remainder of the term, d. Exercise any other legal or equ!tabfe right or remedy it may have, and e Lessor may report unpaid rents or unpaid damages to local credit agencies for recordation in Lessee's credit record. Notwithstanding the provisions of clause (b) above and regardless of whether an Event of Default shall have occurred, Lessor may exercise the remedy described in clause (b) without notice to Lessee if Lessor, in its good faith Judgment, believes it would be injured by failure to take rapid action or if the unperformed obligalion of Lessee constitutes an emergency. Any costs and expenses incurred by Lessor (including, without limitation attorney's fees) in enforcing any of its rights or remedies under this Lease shall be deemed to be additional rental hereunder and shall be repaid to Lessor by Lessee upon demand, Any notice required herein will be deemed delivered if left with the Lessor or Lessor's guarantor or if left or posted at a conspicuous place at the Leased Premises 33. LEGAL EXPENSES: In case suit shall be brought for recovery of possession of the Leased Premises, for the recovery of rent or any other amount due hereunder, or because of the breach of any other covenant herein contained on the part of Lessee to be kept or performed, and a breach shad be established, Lessee shall pay to Lessor all expenses therefor, including Lessor's reasonable attorney's fees Should a breach be established as to an obligation due by Lessor, then Lessor shall pay all expenses therefor, including Lessee's attorney's fees, 34 SURRENDER OF PREMISES: At the expiration of the tenancy hereby created, Lessee shall surrender the Leased Premises in the same condition as the Leased Premises were in upon delivery of possession thereto under this Lease, reasonable wear and tear excepted, and shall surrender all keys for the Leased Premises to Lessor at the place then fixed for the payment of rent, and shall inform Lessor of all combinations on locks, safes, and vaults, it any, in the Leased Premises Lessee shall remove ail its trade fixtures, before surrendering the Leased Premises as foresaid, and shall repair any damage to the Leased Premises caused thereby 35. WAIVER: The waiver by Lessor of any breach of any term, covenant or condition herein contained shall not be deemed to be a continuing waiver of such'erm, covenant or condition or any subsequent breach of the same or any other term, covenant or condition herein contained The subsequent acceptance of rent hereunder by Lessor shall not be deemed to be a waiver of any prior breach by Lessee of any term, covenant or condition of this Lease, other than the failure of Lessee to pay the particular rental so accepted, regardless of Lessor's knowledge of such pnor breach at the time of acceptance of such rent. No covenant, term or condition of this Lease shall be deemed to have been waived by Lessor, unless such waiver be in writing by Lessor. 36. COPIES: This lease has been executed in multiple copies, one for Lessee and one or more for Lessor. 37. ADDENDUMS: Any and all addendums attached hereto shall become a part of this lease and shall be considered incorporated herein by reference as if set forth word ttx word. 38. PERSONAL GUARANTEE: The principle owner of the business is known as Sami Hadda)i and does hereby individually and personally guarantee the payment of the rent due hereunder and all COMMERCIAL LEASE CONIRACT Page 7 conditions and obligations of the Lessee by affixing his signature hereto as guarartor. 39. PERSONAL PROPERTY OF THE LESSOR: The items listed on Exhibit A attached hereto are persona property of the Lessor. All of these items may be used by the Lessee during the term of the !ease and any option period at no additional cost to Lessee All of these items shall remain with the property upon Lessee vacating the premises Lessee sha�l !:to responsible for regular care, maintenance, and replacement of all items deemed Lessors personal property, 40. AGENCY: Lessee is aware that Lessor's agent is a licensed attorney and/or Real Estate Broker and/or Real Estate Sales Agent Lessor's agent represents Lessor only. Lessor hereby acknowledges the services of Flake & Kelley Commercial as procuring Broker and agrees to pay Flake °u Kelley Commercial a total fee of $2000.00 upon execution of th;s lease by Lessee and receipt by Lessor of 15, Mowh's Rent. 41. ENVIRONMENTAL REPRESENTATIONS, WARRANTIES AND CONVENANTS: a, During the term of this Lease, Lessee shall: t 1 f not knowingly store, dispose of, release, or allow the disposal of release of any Hazardous Malenals on the Premises (except In compliance with all laws, o(dinances, and regulations pertaining thereto), (2) neither direMly nor indirectly transport or arrange for the transport of any Hazardous Materials on or from the Premises (except in compliance with all laws, ordinances, and regulations pertaining thereto); (3) if during, the term of this Agreement, any release or disposal of Hazardous Materials shall occur on the Premises in violation of law, Lessee shall cause the prompt containment and removal of such Hazardous Materials and remediation of the Premises in full compliance with all Environmental Laws and other applicable laws and regulations. b. Lessee covenants and agrees promptly to provide Lessor w th written notice: (i) upon Lessee's obtaining knowledge of any violation of any Environmental Law regarding the Premises or Lessee's operations; (ii) upon Lessee's obtaining knowledge of any potential or known release or disposal, or threat of release or disposal , of any Hazardous Materials at, from, or into the Premises which it reports in writing or is reportable by it in writing to any governmental authority or which could affect the value of the Premises, (if!) upon Lessee's receipt of any notice of violation of any Environmental Laws or of any release or disposal or threatened release or disposal of Hazardous Materials, including a notice or claim of liability or Wential responsibility from any third party (including without limitation ant federal, state or local governmental officials) and including notice of any format inquiry, proceeding, demand, investigation or other action with regard to (A) Lessee's or any person's operation of the Premises, (B) corriamination on, from or into the Premises, or (C) investigation or remediation of offsde locations at which Lessee or its predecessors are alleged to have directly or indirectly Disposed of Hazardous Materials, or (D) upon Lessee's obtaining kr:owtedge that any expense or toss has been incurred by such governmental authority in connection with the assessment, containment, removal or remediation of any Hazardous Materials with respect to which Lessee may be liable or for which a lien may be imposed on the Premises. C. Lessee covenants and agrees that it shall pay, indemnify and hold harmless the Indemnified Parties (as defined herein) for, from and against, and shall promptly reimburse the Indemnified Parties for, any and all claims, damages, liabilities, losses, costs and expenses (including reasonable attonieys' and consultants fees and expenses, investigation and laboratory fees, removal remedial response and corrective action costs, and amounts paid in settlement) incurred, paid or sustained by the Indemnified Parties as a result of or relating to (i) any release or disposal or threatened release or disposal of Hazardous Materials on the Premises arising during the Term of the Agreement or from Lessee's use or occupancy of the Premises, (it) any violation of any Environmental Laws with respect to conditions at the Premises or the operations conducted thereon arising during the Temi of !his Agreement or from Lessee's use or occupancy of the Premises, or (iii) the investigation of remediation of offsite locations at which Lessee is alleged to have directly or indirectly Disposed of Hazardous Materials. This indemnity shall survive the expiration or other termination of this Agreement. As used herein, the term 'indemnity shall survive the expiration or other termination of this Agreement As used COMMERCIAL LEASE CONTRACT Page 3 herein, the term 'indemnified Parties" shall mean Lessor, its successors, assigns, officers, directors, agents and representatives. d The term "release' shalt have the meaning specified in CERCLA; provided, in the event CERCIA is amended so as to broaden the meaning of the any term defined thereby, such broader meaning shall apply as of the effective date of such amendment and provided further, to the extent that the laws of the State of Arkansas establish a meaning for 'release' that is broader than specified in CERCtA, such broader meaning shall apply. The term "disposal' or'disposed' shall have the meaning speed in RCRA and regulations promulgated thereunder: provided, in the event RCRA is amended so as to broaden the meaning of any term defined thereby, such broader meaning shall apply as of the effective date of such amendment and provided further, to the extent that state law establishes a meaning for -disposal" that is broader than specified in RCRA, such broader meaning shall apply 42. SPECIAL CONDITIONS: (a ) Lessee's right to occupy the Leased Premises are subject to lessor's Future Development Plans for the Leased Premises If, during the initial term or any Renewal Term, Lessor develops and implements a plan that will alter the Leased Premises in a fashion deemed to effect Lessee's use, in Lessee's sole discretion, Lessee shall be permitted to terminate its agreement upon 90 days written notice to Lessor. Lessor must provide 6 months' notice of its Intent to alter the Leased Premises. Lessee shall have the I" Right of Refusal to lease space of a comparable size in any Future Development of the Depot site. (b.) Lessee shall be responsible for installing its own signage, however signage must be approved by Lessor. (c.) Parking lot is paid parking operated by Fayetteville Depot, LLC, and will be inaccessible during the Bikes Blues & BBQ Festival. IN WITNESS, WHEREOF, the parties hereto have caused these presents to be signed in person thereunto duly authorized and their respective seals to be hereunto affixed, the day and year first hereinab ove written. THIS IS A BINDING LEGAL DOCUMENT - READ CAREFULLY BEFORE SIGNING LESSOR: MqSESINCORPORATED LESSEE: ;;NL- GUARANTO LEASE CONTRACT Page 9 Walk- In- Cooler 13' z 10' Vent Hood Equipment Stand 58. SS Sink 14 Bar Stools 40 Wood Chairs 5 Square Ion Patio Tables 3 Round Iron patio Tables 35 Iron Patio Chairs 3 Door under counter bottle cooler Dishwasher Table, sprayer Walk- In Shelving 5 Units 2 Speakers 36" Bar Ice Well 5- Compartment Steam Table 4DARAM IR. LLC. ngrw Exhibit -A- To Lease Dated January 6, 2019 C 1 Greg House Houses, hw. Arkansas Secretary of State John Thurston State Capitol Building • Little Rock, Arkansas 72201-1094 •501-682-3409 Certificate of Good Standing I, John Thurston, Secretary of State of the State of Arkansas, and as such, keeper of the records of domestic and foreign corporations, do hereby certify that the records of this office show DEJA VU DUELING PIANOS, INC. authorized to transact business in the State of Arkansas as a Non -Profit Corporation, filed Articles of Incorporation in this office April 13, 1999. Our records reflect that said entity, having complied with all statutory requirements in the State of Arkansas, is qualified to transact business in this State. In Testimony Whereof, I have hereunto set my hand and affixed my official Seal. Done at my office in the City of Little Rock, this 29th day of October 2020. C O tCade: M818b5a5d882 c To`ven�Yq'1�u9onza?oa Code, visit sos,arkawas.gov HALL Robert K.Rhoads EESTILL 75 N.East Ave,Suite 500 Fayetteville,AR ,Suite72701-5388 Direct Dial: (479)973-5202 rrhoads@hallestll.com January 19, 2021 Fayetteville Mayor and City Council Dear Mayor and Council: I write to you as a follow up of the questions that were posed at the last meeting,specifically what has the applicant done to protect his employees, patrons, and the general public after receiving A.B.C. Division violations regarding the wearing of masks and social distancing. First if I may give you some background. This request for a mixed drink permit is for the Hookah Cigar Lounge, not the VIP Club. The Hookah Cigar Lounge has never had any kind of violation in its three year existence. However, the VIP Club has the same owner, Mr. Haddaji. I can see why City Council would be interested in what is going on at that Club as well. The VIP Club has been in existence for three years,and as eluded to by Council Member Kinion at the last meeting,when he applied before this Council for the Ordinance, people were aware that this location under previous ownership had a poor reputation. Mr.Haddaji in requesting to open his business,the VIP Club,was questioned very intensely and he promised City Council back then that he would uphold higher standards than the bar that had been there before him. City Council took a chance on him and he has followed through on his promises. He has changed the reputation of that location completely and up until before the pandemic hit VIP had never received any kind of violation whatsoever. As Deputy Police Chief Fields said at the last City Council meeting,Mr. Haddaji has been very "available, accommodating, and helpful to our Officers on Dickson Street". She also indicated that all conditions had been agreed to and that the police do not oppose this Ordinance to upgrade the Cigar Lounge's permit. Mr.Haddaji does not take the pandemic and the social distancing requirements lightly. He is in his two businesses every night running them and then he goes home to an immune compromised wife and a three year old son. So he tries to be very diligent to follow the mask and cleaning mandates. Here are the things he is doing, not just in the VIP Club, but the Hookah Lounge too, in order to address the A.B.C. violations and to do the right thing for his community and patrons: 1) You must wear a mask to get into the clubs and if you do not have one, a mask will be provided. 2) Patrons are asked to keep their mask on unless they are actually drinking a beverage. 3) He has created socially distanced areas. 4) He is allowed to operate at 66% capacity, however he has chosen to operate at only 33% in order to better socially distance his patrons. Hall, Estill,Hardwick,Gable,Golden&Nelson,P.C. Tulsa • Oklahoma City • Northwest Arkansas • Denver www.hallestill.com Fayetteville Mayor and City Council January 19, 2021 Page 2 5) He has installed plexiglass dividers in the VIP Club so patrons have to approach the bartenders one on one. 6) In response to the A.B.0 he has brought in more seating to discourage dancing and large groups standing close together. 7) In the VIP Club in order to inforce the above protocol, as was mentioned in the last City Council Meeting, he has three bartenders, four security, a manager, and he is in his businesses every night. 8) He has trained and continues to coach his entire staff on the necessity to enforce the Covid rules of masking and social distancing in a club atmosphere. 9) He has voluntarily closed down his business on busy holidays and for a five week period after the initial Covid mandate came out from the State because he wanted to do his best to protect his community. He reopened his business because his staff and his business needed the income, which is also why he is trying to upgrade his beer and wine permit to a mixed drink permit. Also the change in smoking laws from 18 years old to 21 makes for another reason to be a private club. In conclusion, Mr. Haddaji is here before you requesting this Ordinance because his two businesses are financially strapped and this is what he needs for his business to survive. It also might be interesting to note that of the numerous bars that joined in as Plaintiffs last week in regard to the curfew ban lawsuit,Mr.Haddaji and his two businesses denied the request to join in. As pursuant to protocol your City Attorney and Police have put forth the seven conditions that as stated in the last City Council Meeting Mr.Haddaji has agreed to. This letter contains what I hope you consider to be a thorough discussion and protocol to not just prevent another A.B.C.violation, but to uphold the spirit of the Covid masking and social distancing rules. I thank you in advance and ask you to pass the Ordinance. Sin 1 , Robert K. Rhoads RKR:dmc cc: Chief of Police City Attorney City Clerk 4734763.1.007730.00001 NORTHWEST ARKAISAS Democrat v 0axette P.Q.'v3XTUC PAYti"E`rILFAR71.7C2•479-24-170C•>0:C,7?_63=_rle•11.r�;Y�.\1:' �.DG.C7u AFFIDAVIT OF PUBLICATION I, Brittany Smith, do solemnly swear that I am the Accounting Legal Clerk of the Northwest Arkansas Democrat -Gazette, a daily newspaper printed and published in said County, State of Arkansas; that I was so related to this publication at and during the publication of the annexed legal advertisement the matter of. Notice pending in the Court, in said County, and at the dates of the several publications of said advertisement stated below, and that during said periods and at said dates, said newspaper was printed and had a bona fide circulation in said County; that said newspaper had been regularly printed and published in said County, and had a bona fide circulation therein for the period of one month before the date of the first publication of said advertisement; and that said advertisement was published in the regular daily issues of said newspaper as stated below. City of Fayetteville Ord 6404 Was inserted in the Regular Edition on: January 24, 2021 Publication Charges: $223.44 Srsdalc Brittany Smith Subscribed and sworn to before me This 2S— day of j , , 2021. &CL Notary Public My Commission Expires: Z f Zo (2-q **NOTE** Please do not pay from Affidavit Invoice will be sent. Ordinance:6404 File Number: 2020-1066 CLUB RUSH HOOKAH AND CIGAR LOUNGE: AN ORDINANCE TO APPROVE THE APPLICATION OF SAMI AMMAR HADDAJI, ON BEHALF OF CLUB RUSH HOOKAH AND CIGAR LOUNGE, FOR A PERMIT TO OPERATE AS A PRIVATE CLUB IN THE CITY OF FAYETTEVILLE AT 550-B WEST DICKSON STREET WHEREAS, Act 1112 of2017, which amended the permitting procedure set forth in Ark. Code Ann. § 3-9-222 for private clubs in the State of Arkansas, requires the City Council to approve "by ordinance an application for a permit to operate as a private club" before the applicant can submit the application to the state Alcoholic Beverage Control Division. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FAYETTEVILLE, ARKANSAS: Section 1: That the City Council of the City of Fayetteville, Arkansas hereby approves the application of Sarni Ammar Haddaji, on behalf of Club Rush Hookah and Cigar Lounge, a copy of which is attached to the agenda memo, for a permit to operate as a private club in the City of Fayetteville at 550-B West Dickson Street under the conditions set forth in Section 2. Section 2: This approval is subject to the following conditions, which must be satisfied prior to the issuance of a City private club permit: I. The business owner and business manager shalt comply with all City of Fayetteville and Arkansas Alcohol Beverage Control (ABC) permitting regulations. 2. The business owner or business manager shall contact the Fayetteville Police Department's Community Oriented Policing Division to schedule training for their staff to properly identify fraudulent IDs. 3. It is recommended that the business owner and business manager research different phone apps or programs to assist their employees in identifying fraudulent Ts. 4. A multi -camera surveillance system must be installed on the inside of the business to provide video surveillance of the main entrance/exit, bar area and registers. 5. The business owner and business manager shall provide a "good neighbor" policy to surrounding businesses and residents of the private club. 6. The private club representative who holds the ABC alcohol permit shall obtain the minimum training requirements as a Private Security Officer as defined in Arkansas Code Annotated f 7-40- 208. Upon completing the training, the private club representative shall receive a Private Security Officer training certificate. Anytime the ABC permit holder changes and a new ABC application for a "Change of Manager / Additional Stockholder(s) / Partner(s)" is completed, the newly approved ABC permit holder shall obtain the Private Security Officer training and certification as outlined in A.C.A. 1740-208. The apica pint will contact the Fayetteville Police Department's Special Events Division supervisor at 479-575-8350 to obtain additional information to complete this training. 7. Upon completion of the required Private Security Officer training, the private club ABC permit holder shall provide a copy of the training certificate to the Fayetteville Police Department's Special Events Division supervisor. PASSED and APPROVED on 1/192021 Approved: Lioneld Jordan, Mayor Attest: Kara Paxton, City Clerk Treasurer 75373399 Jan 24,2021