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HomeMy WebLinkAboutBartusick, Michael & Christie dba Park Bench Cafe - 1997-02-18e sa luill NO7- rt�,riv Council/Agency Meeting Held: 9 BA 6,00-&J- Deferred/Continued to: ;Hpprove ❑ Condit'ona ly Appr v ❑ Denied bZA)I t Jerk's Signature i Council Meeting Date: March 15, 1999 Department ID Number: CS99-011 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS SUBMITTED BY: RAY SILVER, City Administrator PREPARED BY: RON HAGAN, Director, Community Services *11 SUBJECT: APPROVE AMENDMENT NO. 1 TO LEASE AGREEMENT WITH MICHAEL AND CHRISTIE BARTUSICK D.B.A. PARK BENCH CAFE Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s) Statement of Issue: Should the city amend the concession agreement with Michael and Christie Bartusick reducing the percentage rent for the Park Bench Cafe in Huntington Central Park? Funding Source: N/A Recommended Action: Motion to approve the attached .Amendment No. 1 to Lease Agreement with Michael and Christie Bartusick d.b.a. Park Bench Cafe, and authorize the Mayor and City Clerk to execute same. Alternative Action(s): Do not approve Amendment No. 1 to Lease Agreement with Michael and Christie Bartusick d.b.a. Park Bench Cafe, and direct staff to renegotiate the terms. Analysis: Since 1988, Michael and Christie Bartusick have operated the Park Bench Cafe in Huntington Central Park. The Bartusicks took over the concession after several previous concessionaires were unable to make a success of the business. The facility was built in 1974 when the first phase of Huntington Central Park was developed. The structure was a fast food stand/bait shop. The Bartusicks have made numerous improvements to the site over the years to keep up with health and building code changes. However, the time has come when both the concessionaire and the city must address rebuilding the existing. facility. The structure has deteriorated to the point where it no longer makes sense to invest major capital dollars. Staff is currently working with the Bartusicks to develop a proposal for Council's consideration to rebuild the structure within the same leasehold footprint and architectural style while meeting new building, safety and health codes for food establishments. 1EQUEST FOR COUNCIL AC�ON MEETING DATE: March 15, 1999 DEPARTMENT ID NUMBER: CS99-011 Since this project will take one to two years, there is an immediate need for some temporary fixes and improvements to continue operation of the facility. These items are related to electrical, plumbing, and structure. The Bartusicks are willing to invest in these temporary improvements if the city will reduce the percentage rent to offset the cost. The alternative is for the city to front the money for the improvements and leave the percentage rent as is. The rent on the current lease, which runs through 2002, is: Annual Sales Volume Percentage Rate $1.00 - $100,000 10.5% $100,001 - $200,000 12.5% $200,001 — plus 14.5% Staff is recommending that the Bartusicks pay a flat 8% on the accumulated annual gross sales until such time as staff can prepare a new agreement for the rebuilding of the facility. In exchange, the Bartusicks will make the necessary temporary improvements and continue to operate the Park Bench Cafe. The cafe is an important and popular amenity to Huntington Central Park. The Bartusicks' service and food quality have always been exceptional, and the community has always been very supportive of the concession. Staff has reviewed the financial records for the Bartusicks' operation and has concluded that the above recommendation is the best financial option for the city. The Park Bench Cafe has paid an average, annual rent to the city of approximately $30,000. According to their income tax records, the business has produced an annual net income to the Bartusicks of $35,000. This is based on average, annual gross sales for the past five years of approximately $380,000. Staff believes that a percentage reduction in rent will allow the concessionaire to continue keeping the cafe open while staff negotiates a new agreement and process new plans for approval. Environmental Status: N/A Attachment(s1: RCA Author: RH:cr Documents -2- 02/25/99 2:27 PM ATTACHMENT* 1 q.COM CERTIFICATR OF. LIABILITY INSUIZ rRonl t:►R THIS CERTIFICATE IS ISSt list► AS A ?MA'-1713t OF 1XIlIltNIA LION �- ONLY ANTI COrl7sA5 NO k1(;I I741.31ON Till-'(7:727'! ACATI : A C I C41M`IERCIAL INSURANCE IIv1.nrR. THIS CERI IFICATi,, DOF.S NOT ANil..ND. i_%I w:,`t) UR 1504 BROOKII)LLOW DRIVE # 114 ALTER TII COVLRAGE, Aw•RIKI)V» RV TIIE Mn u:n ; nw:r,()►► . SAMTA ANA CA 92705 roi►mAnH :c AFFORDUN CQ%T'RAn(;e, _...__.. A C I COMMERCIAL INSURANCE 714-7U.!R4 THE PARK BENCH CAFE 17732 GOLDENWEST STREET HUNTINGTON BEACH CA 92648 C(IMPnNY ACOMMERCIAL UNION INSURANCE CONSPANY Ii COMPANY C COMPANY u THIS IS TO 0:I11IFY THAT" l HE POLICIES OF INSURANCE LISTTT) lll:1.OW HAVE SCL14 ISSUED TV 711E INSURCID NAMED A110W.. I OR 111E POLICY PCkl(SI) INDICATED, NOTWIT)ISTANDING ANY REQUIREMENT, 11lRM OR CONL11110N OF ANY CONTRACT Ok 01-IICR DOCUMUNT WIT11 F.I SPI-1'"T 7U W111 i WIS CERTIFICATE MAY BE ISSL!1:0 OR MAY PERTAIN, '111E INSURANCE ATFORDED BY THE POLIC1rS DESCRI10) III.RLIN 1S SU81( ("T 10 ALLIRE -11 RhiS, EXCLUSIONS AND C014DITIONS OF SUCH POLICIES. LIMOS SHOWN MAY HAVE BEEN RF.UU('LD BY PAID CLAIMS- -- • .— ._... __ ....�_ .... ._ .._._.__._.._.... _......._ .... ......._._ co T YOI.ICY EFFLr TIVg�iY1LICY f,XPIRATt co TYI'k 01 IVSLRA*%0. I —�- • - POLfCY NL11U17k �UATI: (1f>1/DPA'►'1 IrA7F MSS'[IU.11 � GEN'LkA1.11ATlli.t71' A x COMMCRMIL (A N[RAL L!ANL,TrY FALK40191 J CLAt%:S MAUL i •• t occuo OWW-..R'S do CONTRAr, OR-S PROT A IT(MOLH.I.I.IA R 11-IT1- A-4 AlF10 All OWNLD AUTOS SCHNIVI.En AURA lSIR 1:1) AUT05 NON OI%'NCO AUMS GAR %(7V 1.1 kPIL171 ANY ALTO .i- I.lcLsslI%h)l.11►" D .F t S1MR R Et I A FOt M � C1 ,:y r � tYf11LR I11AN ITIp RI-1 LA rORA( WOR1(I:25 CO.I1IR.NSA110N Abl klt1VIA) YEAS' llARl1.ITY TIM PROI�RI)l(fIU IN(-j, PA RTNLRS/C\T.('V rIVC OI-►IL'LRSAIM: LXcl. A (BUILDING I FALK40191 A CONTENTS ` FALK40191 09/20/98 T'u ll;NLIZALAU.lklGlll.•-- li..l,000,000 --•�- 09/20/99 rla7»�x'�a.cu!+r;orA�,c - s 1r000,000r-._.. 1'l.fiy(LNAI. Ii AIN {[11•'RY 1,000.000 EACH (1CC,(ipRi NO: I 1. 00.000 IMF. PAMACC tAnh tw (,,.I 1 '- 100.000 Ail llrxl,llk,.) 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HUNTINGTON BEACH CA 92646 ALTiI(IkllrnkTl'xi"ti{:\lA1lt't r `` `— A C I COMMERCIALC1 t 4} '� ktORD 1 I. • At:0R0 C()k1•i)1•tATION 19g3 ED 'd bZ I b 55L b I L 'ON X6i !Ada JM0 6 3AVH Wd 00.50 3nl 66-91-833 insured: TUe Park Bunch Cafe COMMERCIAL UNFRAL UAT111.1TY Policy No, FALK40191 THIS ENDO&SEMENT CHANGES THE POUC:Y. PLEASE READ IT CAW,',FUI,I.Y ADDITIONAL, INSURED -MANAGERS OR. LESSORS OF PREMISES CG 20111 11/85 This cr dorsemcnt modifies insurance provided under the following: COMMERCIAL GENERAL 1AAI3I1.,>t'f Y COVERAGE PART SCIIEUUL , 1. Desi;;nation of Premises (fart leased to you) . 17732 Goldenwcst St., Huntington Beach, Ca. Name of Person or Organizition (Additional Insured) City of Huntington Beach, ca. 3. Additional Premium: WHO 1''.INSURED (Section 11) is amended to include: as an ins ured the person or organization shown in the Schedule but only wish respect to liability arising. out ofthc ownership, maintenance or use of that part of the premises ]used to you and shown in the SchedUlt: and subject to the following additional cxclusimis: 2/11 /99 £0 'd This insurance does not apply to: 1. Any "acc1111'rucc° which t,AC` plaWe after you cease to be a tcnaht in fttt preniisca. 2, Structural alteration~, nuw constinetion or demolition operations perrormed by or on behalf of the person or orgunizaation slsuvvn in the Schedule bZi� 99L bjZ 'ON XU ;AVG 1d3N0 d 3AVH Wd- ti0.:90 nH1 66-[[-83. FEB-11-99 THU 04 :53 PM PARK. BENCH —CAFE _ 7148421245 P. 01 CorNpENSATtgN P.O. 80X 847, SAN `FRANC15G0 °. , N .CA b410 f.�b80� ,. '1 .�'...:.. SUN t�F>n.,�lt. „ f ce C,EF T1F1CAtt,.QP WORK�Ft3 ISSUE b F ATE: QB-30 'Ab4iCY'RhlUN1 t r tit L r,• ? %a;;?I..s�; .r, CEFtTi1=1G�A6�:'CX0p{�ES yqqyy�� Tr,Q6�0 , ,.` ,.� ,•x;� , t 1 .. is 'as t;•'r.. Ss t. r~f K,�� CITY OF r�►, � L ; Via;. C 1 HUNT,! 900 _ R;'~ ':, aRISK �EACFI " MANAGE ENT �. 2000 wl � MAIN, HUNTING H 'jai' TON. 8FAC , C9: 9�648 �,?�'., California This is to certify that we have Issued: a• valid Workers' GOm ens ti .K "a`'' Insurance Commissioner to the P a oq.insurance olfe in ''f r .' �' ="� �• ='A :` employer named below f the p . Y �y 0 �1 apj,il;ed.b{''t or poliCVpel;fod inVcat This policy '. .. .• .'.'p cy is not subject to Cancellation by, nd the F4 except upon 30 days'' a0vanc6 .V...yritteri t' t e ' .� • • ''� We will also give you 30 days' advan Ce notice should• this Policy Cy be can'ceilee 6. ,to Its, 46rrrlal.'exQirat'on, This certificate of insurance P �" � '• - • � *`"• _ '' s"� «;•15'i'•�.�t' .. 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EMPl.OYEi S AND`'HUSSAND AND WIFE' EMPLOYER$ �lkE .NC7 LIOYiL EMPLOYEES,UNDER "1`HIS POLICY. 4,• A t .� ENDORSEMENT N0015 ENTItQD ADDYTXONAL INSURED EMPLOYER -EFFECTIVE, 06 < /30t9g IS ATTgFHEp;Yr(i1Wpi�°' q;.• FORMS A PART OF THZ�' POLICY..'' '. •,. � F•.... -fi: �! . -:e�'i:�:;'� NAME OF ADDITIONAL SURED: I . TIONAL IN CITY 'OF FEUNTINGTISIV BEACH . t; ,�. i �',�; ;n., s �i,l,• � V. ENDORSEMENT #2005 ENTITLED CERTIFICATE HOLDERS' NOTICE E " t }�tt. r.•L:'' FFEGr1V9, QB/30/88,: XS.'AtT E �IS.' D M'+' `i• (' FORM$ A PART OF .TMIS`.POLICY. Y^ q`' " r*nyr. ..d :• i•i.` A' ., I:•. ,, ..4, f�'_i;�.': ♦.j"'�. ✓J`h YL,, ; _ ; JL '� - ,'_:�•�_''•'r:Lr1Fy�):?a'_r'.,(,:•r<1•. •,. 14;' ,5S�j,, 31�'P;" TO FORM- L IT VY 4. f, hL�/ Iry So • '' `.+ ,; l�'�'''i i_. .� a �}j��l •\� ,�•.';r•' =C J ,. - J �- �1. .Y s "e 9:5',.�.lJ •:,iGi:; ,! +'';'Lit ,i ,i. �.K •:�•,• , 5:''�{i',;. ' V. ',�', w,..y .ry, 1•�" '.�J•'?G��,r lrtrr .?r„ V. s<. ...�3.. 'a•e , �, . ` .�`!i'P� �t;'.�, • nip• ; �,':' . EMPLOYER . .,. "OAb;:N _ JLp 1�y� :r',, THE PARK. B�N,Gµ CA1 r• .BIY�,Ii.I M ,.s�LELfY�CEN1D4 :l' 'J, CK_,,. ;CfFIII v 43.r,'�"' 17732 GOLdEF1W1;ST. S�. -RARTOS= it,,.� �•IBYSTxE••LYNy;�,. '1 . r, •• ,. HUNTI r;, + NGTON 9ACH CA`;J24$ _.�;; ,',M;' tf`;,':;'�,.f,.,.:,:J I .l t., •,' 1+: s" • _ � � ._'.o�n�,.�,�r��.:�s,�..�(.+�.�.ur:Sl,,t.•�,{i.ir;'�1�,'•d�:y yr'! L. THIS DOCUMENT HAS A BLUE PATTERNED BACKGROUND RCA ROUTING SHEET INITIATING DEPARTMENT: COMMUNITY SERVICES SUBJECT: APPROVE AMENDMENT NO. 1 TO LEASE AGREEMENT WITH MICHAEUCHRISTIE BARTUSICK D.B.A PARK BENCH CAFE COUNCIL MEETING DATE: 3-/5-17 Ordinance (w/exhibits & legislative draft if applicable) Not Applicable Resolution (w/exhibits & legislative draft if applicable) Not Applicable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) (Signed in full by the City Attorney) Attached Subleases, Third Party Agreements, etc. (Approved as to form by City Attorne) Not Applicable Certificates of Insurance (Approved by the City Attorney) Attached Financial Impact Statement Unbudget, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report (If applicable) Not Applicable Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION.F : R .M:ISSING ATTACHMENTS . . ........ . _.... ......... RCA Author: Council/Agency Meeting Held:abol Deferred/Continued to: ❑ Approved ❑ Conditionally A roved ❑ Denied City Clerk's nature Council Meeting Date: Febrluary 18, 1997 Department ID Number: 95-024 CITY OF HUNTINGTON BEACH REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR/CHAIRMAN AND CITY COUNCIL MEMBERS/REDEVELOPMENT AGENCY MEMBERS SUBMITTED BY: PREPARED BY: UBERUAGA, City Administrator/Exe FRANZ,Deputy City Administrator APPROVAL OF THE PARK BENCH CAFE LEASE Statement of Issue: The renewal of a park concession lease between Michael W. and Christie L. Bartusick, husband and wife, dba "The Park Bench Cafe" as Lessee and the City of Huntington Beach as Lessor. A new term of five (5) years is proposed, with three five (5) year options if mutually agreed by concessionaire and the City Council. Step Increase Rents as follows: Annual Sales Volume $ 1 to 100,000 $100,000 to 200,000 $200,000 - Plus Funding Source: None Percentage Rate 10.5% 12.5% 14.5% Recommended Action: Approve the lease with Michael and Christie Bartusick, H/W, dba "The Park Bench Cafe" and authorize Mayor and City Clerk to sign Lease Agreement. REQUEST FOR4�-OUNCIL/REDEVELOPMENT410ENCY ACTION MEETING DATE: Febrluary 18, 1997 DEPARTMENT ID NUMBER: 95-024 Analysis: Michael and Christie Bartusick have been associated with the City's "The Park Bench Cafe" concession since they leased this location six years ago. Since that time Mr. and =Mrs. Bartusick have operated this attractive and popular restaurant successfully. With the City's approval of this new lease, Mr. and Mrs. Bartusick will proceed with certain needed improvements and continue their operation of this concession for the benefit of both the public and the City. The proposed step increase in the rents will allow the City a greater income return as gross sales increase. This lease, with renewed terms which are in line with the current concession lease market, will continue proven good service to the public and maximize profitability for the City. This lease will further enable the concessionaire to continue improving the present City owned facility Environmental Status: n/a Attachment(s): 1. Proposed Lease Agreement 2. Certificate of Insurance RCAPKBCH.DOC -2- 02/07/97 8:37 AM REQUEST FO*OUNCIL/REDEVELOPMENAGENCY ACTION MEETING DATE: Febrluary 18, 1997 DEPARTMENT ID NUMBER: 95-024 THE PARK BENCH CAFE @ 12.5% RENT Year Sales Revenue to City 1992 $186,843 $23,485 1993 $207, 876 $26,166 1994 $246, 975 $31, 067 1995 $314,443 $39,308 1996 (est.) $352,000 $44,000 Proposed New Lease Projections 1997 $352,000 $45, 040 1998 $352,000 $45,040 RCAPKBCH.DOC -3- 01/30/97 2:52 PM CITY OF I-IUNTINGTON BEACH 2000 MAIN STREET OFFICE OF THE CITY CLERK CONNIE BROCKWAY CITY CLERK February 28, 1997 Michael and Christie Bartusick 9685 Pettswood Drive Huntington Beach California 92648 Dear Michael and Christie Bartusick: CALIFORNIA 92648 The City Council of the City of Huntington Beach at the regular meeting held February 18, 1997, approved the lease agreement between the city and Michael and Christie Bartusick, dba Park Bench Cafe. Enclosed is a duly executed copy of the agreement for your records. Sincerely, 67t.�uc,&e'"r Connie Brockway City Clerk CB:jc Enclosure: Agreement G:followup:cashcon/ agrmtlrParkBench/jc 1 Telephone: 714.536-5227 ) 0 C� AMENDMENT NO. 1 TO LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MICHAEL AND CHRISTIE BARTUSICK, dba _PARK BENCH CAFE THIS AMENDMENT is made and entered into this day of , 1999, by and between THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California (hereinafter referred to as "LESSOR"), and MICHAEL AND CHRISTIE BARTUSICK, dba PARK BENCH CAFE, (hereinafter referred to as "LESSEE"). WHEREAS, LESSOR and LESSEE are parties to a Lease Agreement, effective February 18, 1997, entitled "Lease Agreement Between the City of Huntington Beach and Michael and Christie Bartusick, dba Park Bench Cafe. LESSOR and LESSEE wish to amend certain sections of the Lease Agreement. to more precisely define the intent of the parties. NOW, THEREFORE, the parties covenant and agree as follows: 1. Section 6 RENT shall read as follows: LESSEE agrees to pay to LESSOR as rent for the use and occupancy of said Premises a sum equal to eight percent (8%) of the amount of the cumulative annual gross sales as defined in the Agreement, with payments made each month by LESSEE in, on or from said Premises. 2. TERM This amendment is effective as of - , 1999, and runs through the term of the original Lease Agreement. 1 jmp/k/agree/parkamnd/02/11 /99 REAFFIRMATION Except as specifically modified herein, all other terms and conditions of the original Lease Agreement shall remain in full force and effect. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first above written. LESSEE: I.11g Michael B By: ' I Christie 1 ATTEST: City Clerk REVIEWED AND APPROVED: 42�&o4,- Ci Administrator LESSOR: CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California — - N4 A 11 1 — Mayor APPROVED AS TO FORM: 2(L' ity Attorney t 'Ci41 INITIATEI A/'N7D APPROVED: Direet br,,...UKhk uni ty : _ Servi c e s 2 jmp/k/agree/parkamnd/02/ 10/99 i C LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MICHAEL AND CHRISTIE BARTUSICK, dba PARK BENCH CAFE P R O P E R T Y Page 1. DESCRIPTION OF PREMISES 1 2. ORIGINAL TERM 1 3. OPTION TO EXTEND 1 4. TERMS AND CONDITIONS 2 5. HOLD OVER 2 6. RENT 2 7. LATE CHARGE 3 8. GROSS SALES DEFINED 3 9. GROSS SALES EXCLUSIONS 4 10. BOOKS AND RECORDS 4 11. STATEMENT OF GROSS SALES 5 12. PERMITTED USE 5 13. PAYMENT OF UTILITY CHARGES 6 14. PERSONAL PROPERTY TAXES 6 15. REAL PROPERTY TAXES 6 16. MAINTENANCE BY LESSEE 6 17. MAINTENANCE OF SHOW WINDOW GLASS 7 18. ALTERATIONS AND LIENS 8 19. INSPECTION BY LESSOR 8 20. SURRENDER OF PREMISES 8 21. INSTALLATION AND REMOVAL OF TRADE FIXTURES 9 21. TRADE FIXTURES AS SECURITY FOR LEASE 9 23. UNREMOVED TRADE FIXTURES 10 24. SIGNS 10 25. PARTIAL DESTRUCTION 10 26. TOTAL DESTRUCTION 11 27. INSURANCE PROCEEDS 11 28. ABATEMENT OF RENT 11 29. CONDEMNATION COMPENSATION 12 30. RELOCATION AND ASSISTANCE 12 31. SUBLEASING OR ASSIGNING AS BREACH 12 32. ABANDONMENT BY LESSEE 13 33. DEFAULT BY LESSEE 14 34. INSOLVENCY OF LESSEE 14 35. CUMULATIVE REMEDIES 15 36. WAIVER OF BREACH 15 37. FORCE MAJEURE - UNAVOIDABLE DELAYS 15 38. CARE OF PREMISES - MAINTENANCE DEPOSIT 15 39. SECURITY DEPOSIT 16 40. EMERGENCY CLOSING OR CLOSING 16 41. DELIVERIES OF SUPPLIES 17 42. PARKING 17 43. NOTICE 17 44. LESSEE'S RIGHT TO RENEGOTIATE 18 45. INSURANCE HAZARDS 18 46. WASTE OR NUISANCE 18 47. COMPLIANCE WITH LAW 18 48. BINDING ON HEIRS 19 49. PARTIAL INVALIDITY _ 19 50. SOLE AND ONLY AGREEMENT 19 51. TIME OF ESSENCE 19 52. INDEMNIFICATION/HOLD HARMLESS 19 53. WORKERS COMPENSATION 20 54. INSURANCE 20 55. TERMINATION OF PRIOR LEASE 21 56. ADJACENT PARK AREA 21 57. ATTORNEY FEES 22 7� 11 r 2 7 1996 MANAGEMENT 3parkbenc/3/26/96 PJ • LEASE AGREEMENT BETWEEN THE CITY OF HUNTINGTON BEACH AND MICHAEL AND CHRISTIE BARTUSICK, dba PARK BENCH CAFE THIS AGREEMENT is made and entered into thisi.ELday of F P h r,, a r; , 1991, by and between THE CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California (hereinafter referred to as "LESSOR"), and MICHAEL AND CHRISTIE BARTUSICK, dba PARK BENCH CAFE, (hereinafter referred to as "LESSEE"). WHEREAS, LESSOR owns certain real property (hereinafter referred to as the "Premises"), in the City of Huntington Beach, and LESSEE desires to lease the aforesaid Premises in the manner set forth below. NOW, THEREFORE, the parties covenant and agree as follows: SECTION 1. DESCRIPTION OF PREMISES LESSOR hereby leases to LESSEE that certain real property commonly known and described as THE PARK BENCH CAFE, located in the City of Huntington Beach, and as outlined on the attached map marked as Exhibit A. SECTION 2. ORIGINAL TERM This lease shall be for a term of five (5) years commencing at 12:01 A.M. on 1991 and ending at 12:01 A.M. on fLIJ, -9- , unless sooner terminated as herein provided. SECTION 3. OPTION TO EXTEND LESSEE is hereby granted, subject to City Council approval and if not then in, nor been in, a default that has not been cured during the initial term or the current option of this lease, an additional period of five (5) years. LESSEE may exercise this option by giving LESSOR no less than six (6) months prior written notice during the last year of the initial term or an option term of LESSEE's intention to exercise such option. LESSEE shall be allowed no more than 3/k/parkbenc/3/26/96 • • three (3) such option periods on the same terms, covenants and conditions and subject to the same exceptions and reservations contained in this lease. SECTION 4. TERMS AND CONDITIONS LESSOR may upon three (3) days notice in writing to LESSEE for rent and thirty (30) days notice in writing to LESSEE for covenants, terminate this agreement and the lease granted herein without liability to the LESSOR in the event of failure of LESSEE to comply with any of the terms or conditions or agreements hereof, or when public necessity so requires. In the event of termination, LESSEE shall be allowed fifteen (15) days after notice within which to cure the failure or default which gave rise to such termination; provided, further that if the nature of LESSEE's default is such that more than fifteen (15) days are reasonably required for its cure, then LESSEE shall not be deemed to be in default if LESSEE commences such cure within said fifteen (15) day period and thereafter diligently prosecutes such cure to completion. SECTION 5. HOLD OVER Should LESSEE hold over and continue in possession of said Premises after expiration of the terms of this lease or any extension thereof, LESSEE's continued occupancy of said Premises shall be considered a month -to -month tenancy subject to all the terms and conditions of this lease. SECTION 6. RENT LESSEE agrees to pay to LESSOR as rent for the use and occupancy of said Premises a sum equal to the following percentages of the amount of the cumulative annual gross sales as defined in this Article, with payments made each month by LESSEE in, on or from said Premises. 2 3/k/parkbenc/3/26/96 • 411 Annual Sales Volume $1.00 - $100,000 $100,001 - $200,000 $200,001 - plus Percentage Rate 10.5% 12.5% 14.5% The rent specified in this section shall be paid by LESSEE to LESSOR at 2000 Main Street, Huntington Beach, California, 92648, or at such other place or places as LESSOR may from time to time designate by written notice within fifteen (15) days after the end of each. calendar month during which the cumulative annual gross sales on which it was computed were made. SECTION 7. LATE CHARGE In the event that any rental payment is not received by the LESSOR on or before the due date as herein provided, a late charge of ten percent (10%) of the amount of each rental payment shall be assessed. If received after the 15th day, but postmarked on or before the 15th, the payment will be accepted without penalty. This charge will compound monthly. SECTION 8. GROSS SALES DEFINED For the purposes of this Article, the term "gross sales" shall mean the cumulative annual selling price of all merchandise or services sold or rendered in, or property rented on, or from said Premises by LESSEE, their sublessees, licensees, or concessionaires, whether for cash or on credit, and if on credit whether or not paid, and shall include, without limitation: (a) Proceeds from all automatic vending, weighing, and other machines owned and operated by LESSEE in or on said Premises; (b) Commissions received by LESSEE from such automatic vending, weighing, and other machines not owned by LESSEE but operated in or on said Premises; 3 3/k/parkbenc/3/26/96 (c) Commissions received by LESSEE from the operation of public telephones in or on said Premises; (d) Proceeds from sales based on orders solicited or taken from, in, or on said Premises for merchandise or services to be delivered or rendered off, or from sources outside, said Premises. SECTION 9. GROSS SALES EXCLUSIONS Notwithstanding the provisions of Section 8 of this lease, the term "gross sales" shall not include the following items, and such items may be deducted from "gross sales" to the extent they have been included therein or have been included in a prior computation of "gross sales" on which a percentage rental has been paid under this lease to LESSOR: (a) Any sales or excise taxes otherwise includable in "gross sales" as defined in this Article become part of the total selling price of merchandise or services rendered in, from, or on -said Premises where LESSEE must account for and remit the taxes to the government entity or entities by which they are imposed; and (b) Any transfer of merchandise from said Premises to the manufacturer or supplier from whom it was obtained by LESSEE. SECTION 10. BOOKS AND RECORDS LESSEE shall at all times keep or cause to be kept on the said Premises full, complete, and accurate records and books of account showing the total amount of gross sales as defined in this Article made each calendar month in, on, or from said Premises. Furthermore, LESSEE shall at the time of sale and in the presence of the customer cause the full selling price of each piece of merchandise and each service rendered in, on, or from said Premises to be recorded in a cash register or cash registers that have cumulative totals and are sealed in a manner approved by LESSOR. LESSEE agrees to maintain on said Premises for a period of three (3) years following the close of each calendar month all records and books of account 4 3/k/parkbenc/3/26/96 and all cash register tapes showing or in any way pertaining to the gross sale made in, or from said Premises during such calendar month. SECTION 11. STATEMENT OF GROSS SALES At the time specified in Section 6 of this lease for the payment of the rent specified in thatisection, LESSEE shall deliver to LESSOR a true and accurate statement signed by LESSEE or by an authorized employee of LESSEE showing the total gross sales made during the preceding calendar month in, on, or from said Premises and the amount of rent then being paid calculated on the cumulative annual gross sales pursuant to this lease. LESSOR may at any time within three (3) years after receiving any such statement, at their own cost and expense, cause all books, records, and cash register tapes described in Section 10 of this lease for the calendar month purportedly covered by the statement to be audited by a public or certified public accountant selected by LESSOR. LESSEE shall on receiving written notice of LESSOR's desires for such an audit deliver and make available all such books, records, and cash register tapes to the public or certified public accountant selected by LESSOR. Furthermore, LESSEE shall promptly on demand reimburse LESSOR for the full cost and expense of the audit should the audit disclose that the questioned statement understated gross sales or the rent payable because of gross sales by five (5) percent or more. LESSEE shall also furnish to CITY copies of its quarterly California sales and use tax returns at the time each is filed with the State of California. SECTION 12 PERMITTED USE The Premises are let for the purpose of operation of a park concession for the sale of merchandise, food, and other such uses as may from time to time be approved in writing by. LESSOR. LESSOR reserves the right to prohibit the sale of any item or article which is objectionable or beyond the scope of the merchandise necessary for proper service to the public or public safety. The prices for the merchandise sold shall be fixed by LESSEE, and LESSOR reserves the right to establish and revise a schedule of maximum prices for any or all 5 3/k/parkbencrM6f96 • items sold or rented to the public by LESSEE; provided, however, that such schedule of maximum prices established by LESSOR shall be reasonable and in accordance with the best interests of the public, the LESSEE, and the LESSOR. SECTION 13. PAYMENT OF UTILITY CHARGES LESSEE shall pay, and hold LESSOR and the property of LESSOR free and harmless from, all charges for the furnishing of gas, water, electricity, telephone services, and other public utilities to said Premises during the term of this lease or any extension thereof and for the removal of garbage and rubbish from said Premises during the term of this lease or any extensions thereof. SECTION 14. PERSONAL PROPERTY TAXES LESSEE shall pay before they become delinquent all taxes, assessments, or other charges levied or imposed by any governmental entity on the furniture, trade fixtures, appliances, and other personal property placed by LESSEE in, on, or about said Premises including, without limiting the generality of the other terms used in this section, any shelves, counters, vaults, vault doors, wall safes, partitions, fixtures, machinery, plant equipment, office equipment, television or radio antennas, or communication equipment brought on said Premises by LESSEE. SECTION 15. REAL PROPERTY TAXES All real property taxes or possessory interest taxes and assessments levied or assessed against said Premises by any governmental entity, shall be paid, before they become. delinquent by LESSEE. SECTION 16. MAINTENANCE LESSOR shall, at their own cost and expense, maintain in good condition and repair the items as follows: 6 3/k/parkbenc/3/26/96 Exterior roof Exterior walls Structural supports Sewers Foundation of said Premises Electrical from power pole to circuit breaker Installation of gas service to the Premises, up to the meter. LESSEE shall, at their own cost and expense, maintain in good condition and repair the items and work as follows: Painting of the interior of the Premises Painting of the exterior of the Premises All windows/glass Removal of Graffiti Repairs of damage caused by vandalism Rugs and carpeting Tenant improvements Electrical, downflow of circuit breaker LESSOR shall promptly be reimbursed by LESSEE for the full cost of any such repairs made by LESSOR. Except as otherwise expressly -provided in Sections 16 and 17 of this lease, LESSEE shall at their own cost and expense keep and maintain all portions of said Premises as well as all improvements on said Premises and all facilities appurtenant to said Premises in good order and repair and in as safe and clean a condition as they were when received by LESSEE from LESSOR, reasonable wear and tear also excepted. SECTION 17. MAINTENANCE OF WINDOW GLASS LESSEE shall, at their own cost and expense, repair and replace any glass in any window on said Premises that becomes broken regardless of cause, including window glass that is broken by fire, by act of God, except by fault of LESSOR, or by fault of some employee or agent of LESSOR. Should LESSEE fail to repair or replace any glass broken in a window, LESSOR may replace or repair the broken glass and LESSEE will promptly reimburse LESSOR for the cost thereof and pay LESSOR interest on such costs at the rate of ten (10) 7 3/k/parkbenc/3/26/96 • • percent per annum from the date the costs were incurred by LESSOR to the date they are reimbursed to LESSOR by LESSEE. SECTION 18. ALTERATIONS AND LIENS LESSEE shall not make or permit any other person to make any alterations to said Premises or to any improvement thereon or facility appurtenant hereto without the written consent of LESSOR first had and obtained, unless such alteration is at a cost of under $5,000.00. LESSEE shall keep the Premises free and clear from any and all liens, claims, and demands for work performed, materials furnished, or operations conducted on such Premises at the instance or request of LESSEE. Furthermore, any and all alterations, additions, improvements, and fixtures, except furniture and trade fixtures, made or placed in or on said Premises by LESSEE or any other person shall on expiration or sooner termination of this lease become the property of LESSOR and remain on said Premises provided, however, that LESSOR shall have the option on expiration or sooner termination of this lease of requiring LESSEE, at LESSEE's sole cost and expense, to remove any or all such alterations, additions, improvements, or fixtures from said Premises. SECTION 19. INSPECTION BY LESSOR LESSEE shall permit LESSOR or LESSOR's agents, representatives, or employees to enter said Premises at all reasonable times for the purpose of inspecting said Premises to determine whether LESSEE is complying with the terms of this lease and for the purpose of doing other lawful acts that may be necessary to protect LESSOR's interest in said Premises under this lease or to perform LESSOR's duties under this lease. SECTION 20. SURRENDER OF PREMISES On expiration or sooner termination of this lease, or any extensions or renewals of this lease, LESSEE shall promptly surrender and deliver said Premises to LESSOR in as good condition as they are now at the date of this lease, reasonable wear and tear and repairs herein required to be made by LESSOR excepted. 8 3/k/parkbenc/3/26/96 SECTION 21. INSTALLATION AND REMOVAL OF TRADE FIXTURES LESSEE shall have the right at any time and from time to time during the term of this lease and any renewal or extension of such term, at LESSEE's sole cost and expense, to install and affix in, to, or on said Premises such items, herein called "trade fixture", for use in LESSEE's trade or business as LESSEE may, in their sole discretion, deem advisable. Any and all such trade fixtures that can be removed without structural damage to said Premises or any building or improvements on said Premises shall, subject to Section 22 of this lease, remain the property of the LESSEE and may be removed by LESSEE at any time prior to the expiration or sooner termination of this lease. SECTION 22. TRADE FIXTURES AS SECURITY FOR LEASE Subject to and to be subordinated to any security interest which LESSEE may give to any leading institution and/or financing source for the purpose of obtaining financing for the purchase of trade fixtures and equipment or the operation of said Premises, LESSEE hereby grants to LESSOR a security interest in all trade fixtures and equipment owned by LESSEE and now or hereafter placed on said Premises by LESSEE as security for the faithful performance of all the terms, conditions and covenants of this lease to be performed by LESSEE. Any rights or rights of removal of trade fixtures given LESSEE by the provisions of Section 21 of this lease shall be exercisable only if, at the time of removal, LESSEE is not in default in performance of this lease. LESSEE may, however, at any time they are not in default in performance.of this lease, trade in or replace any trade fixture free of the security interest created by this section and this security interest will then attach to the item that replaced such trade fixture. On default in performance of any obligation of this lease to be performed by LESSEE, LESSOR shall immediately have as to the trade fixtures the remedies provided to a secured party under the Uniform Commercial Code as enacted in the State of California. 9 3/k/parkbene/3/26/96 SECTION 23. UNREMOVED TRADE FIXTURES Any trade fixtures described in this Article that are not removed from said Premises by LESSEE within thirty (30) days after the expiration or sooner termination, regardless of cause, of this lease shall be deemed abandoned by LESSEE and shall automatically become the property of LESSOR as owner of the real property to which they are affixed and not simply because of the lien described in Section 22 of this lease. SECTION 24. SIGNS LESSEE shall.not place nor maintain, nor permit any other person to place or;maintain, on or in any exterior door, wall, or window of said Premises any sign, awning, canopy, marquee, or other advertising without the express written consent and approval of LESSOR. Furthermore, LESSEE shall not place any decoration, lettering, or advertising matter on the glass of any interior or exterior shop window of said Premises without the written approval and consent of LESSOR. Should LESSOR consent to any such sign, awning, canopy, marquee, decoration, or advertising matter, LESSEE shall maintain it at all times during this lease in good appearance and repair. On expiration or sooner termination of this lease, any of the items mentioned in this section not removed from said Premises by LESSEE on such expiration or termination of this lease may, without damage or liability, be destroyed by LESSOR. This lease is expressly contingent upon approval of all signs by both LESSOR and LESSEE. SECTION 25. PARTIAL DESTRUCTION Should said Premises of the building on said Premises be partially destroyed by any cause not the fault of LESSEE or any person in or about said Premises with the consent, express or implied, of LESSEE, this lease shall continue in full force and effect and LESSOR, at LESSOR's own cost and expense, shall promptly commence and diligently continue and complete the work of repairing and restoring said Premises to their prior condition providing such work can be accomplished under all applicable governmental laws and regulations within 10 3/k/parkbenc/3/26/96 s one hundred eighty (180) working days; provided, however, LESSEE may terminate this Lease if LESSEE gives LESSOR written notice of LESSEE's intention to do so within sixty (60) days following such a partial destruction. SECTION 26. TOTAL DESTRUCTION "-Should said Premises or the building on said Premises be so far destroyed by any cause not the fault of LESSEE or any person in or about said Premises with the consent, express or implied, of LESSEE that they cannot be repaired or restored to their former condition within one -hundred eighty (180) working days, LESSOR may, at LESSOR's option: (a) Continue this lease in full force and effect by repairing and restoring, at LESSOR's own cost and expense, said Premises to their former condition; or (b) Terminate this lease by giving LESSEE written notice of such termination. (c) LESSEE may, however, terminate this Lease if LESSEE gives LESSOR written notice of LESSEE's intention to do so within sixty (60) days following such total destruction. SECTION 27. INSURANCE PROCEEDS Any insurance proceeds received by LESSOR because of the total or partial destruction of said Premises or the building on said Premises shall be the sole property of LESSOR, except LESSEE shall be compensated for loss to leasehold improvements and fixtures beyond any and all insurance proceeds including business interruption insurance which would ordinarily flow to the benefit of LESSEE. SECTION 28. ABATEMENT OF RENT Should LESSOR elect under Section 26 of this lease or be required under Section 25 of this lease to repair and restore said Premises to their former condition following partial or full destruction of said Premises or the building on said Premises: (a) LESSOR shall have full right to enter said Premises and take possession of so much of said Premises, including the whole of said Premises, as may be 11 3/k/parkbenc/3/26/96 reasonably necessary to enable LESSOR promptly and efficiently to carry out the work of repair and restoration; and (b) The percentage rent described in Section 25 of this lease shall be not abated for the time LESSEE is prevented from using the whole of said Premises. *SECTION 29. CONDEMNATION COMPENSATION All compensation and damages awarded for a total taking of the PREMISES shall belong to and be the sole property of LESSOR, and LESSEE shall have no claim to any amount or part of any award except, -however, that LESSEE shall be entitled to receive the portion of any award attributable to the taking of those leasehold improvements and fixtures that LESSEE has the right to remove under this lease but does not remove from the PREMISES; or when LESSEE does remove the fixtures or improvements, a reasonable amount for removal and relocation expenses, provided that amount does not exceed the market value of the improvements and fixtures. This Lease shall have no condemnation value to LESSEE. SECTION 30. RELOCATION AND ASSISTANCE In the event this lease is terminated for any legal reason by LESSOR, LESSEE shall not be entitled to any relocation rights or benefits and, except those itemized in Section 29, expressly waives such benefits and rights under City, State or Federal Relocation Assistance Plans. LESSEE shall be entitled to receive non -monetary relocation benefits and LESSOR shall make every effort possible to relocate LESSEE to another available comparable site. However, if another comparable site is not available upon which to relocate LESSEE, then, in that event, LESSEE shall have no rights to receive monetary assistance and/or monetary benefits. SECTION 31. SUBLEASING OR ASSIGNING AS BREACH LESSEE shall not encumber, assign, or otherwise transfer this lease, any right or interest in this lease, or any right or interest in said Premises or any of the improvements that 12 3/k/parkbenc/3/26/96 may now or hereafter be constructed or installed on said Premises without the express written consent of LESSOR first had and obtained. Neither shall LESSEE sublet said Premises or any part thereof or allow any other person, other than LESSEE's agents, servants, and employees, to occupy said Premises or any part thereof without the prior written consent of LESSOR. A consent by LESSOR to one assignment, one subletting, or one occupation of said Premises by another person shall not be deemed to be a consent to any subsequent assignment, subletting, or occupation of said Premises by another person. Any encumbrance, assignment, transfer, or subletting without the prior written consent of LESSOR, whether it be voluntary or involuntary, by operation of law or otherwise, is void and shall, at the option of LESSOR, terminate this lease. The consent of LESSOR to any encumbrance, assignment including occupation or transfer hereof of LESSEE's interest in this lease or the subletting by LESSEE of said Premises or parts of said Premises shall not be unreasonably withheld; however, LESSOR shall have the right of first refusal to meet any bona fide offer of assignment, sale, sublease or transfer of LESSEE's interest in this Lease on the same terms and conditions of such offer and, agrees to exercise or refuse such right in writing within thirty (30) days of notice by LESSEE. Such right shall not apply, however, to assignments, transfers, or sublettings to immediate family members of LESSEE, a family trust, or to any corporate entity of which LESSEE, or any of LESSEE's immediate family, are sole stockholders. If LESSOR does not exercise this right, LESSOR shall approve LESSEE's request for assignment, sale, sublease, or transfer provided that LESSEE is not in default at the time of request. SECTION 32. ABANDONMENT BY LESSEE Should LESSEE breach this lease and abandon said Premises prior to the natural expiration of the term of this lease, LESSOR may: 13 3/k/parkbenc/3/26/96 (a) Continue this lease in effect by not terminating LESSEE's right to possession of said Premises, in which event LESSOR shall be entitled to enforce all their right and remedies under this lease, including the right to recover the rent specified in this lease as it becomes due under this lease; (b) Terminate this lease and recover from LESSEE: (1) The -worth at the -time of award of the unpaid rent which had been earned at the time of termination of the lease; (2) The worth at the time of award of the amount by which the unpaid rent which would have been earned after termination of the lease until the time of award exceeds the amount of rental loss that LESSEE proves could have been reasonably avoided; (3) The worth at the time of award of the amount by which the unpaid rent for the balance of the term of this lease after the time of award exceeds the amount of rental loss that LESSEE proves could be reasonably avoided; and (4) Any other amount necessary to compensate LESSOR for all detriment proximately caused by LESSEE's failure to perform their obligations under this lease. SECTION 33. DEFAULT BY LESSEE Should LESSEE default in the performance of any of the covenants, conditions, or agreements contained in this lease, LESSEE shall have breached the lease and LESSOR may, in addition to the remedy specified in the subparagraph (b) of Section 36 of this lease, re- enter and regain possession of said Premises in the manner provided by the laws of unlawful detainer of the State of California then in effect. 14 3/k/parkbene/3/26/96 SECTION 34. INSOLVENCY OF LESSEE The insolvency of LESSEE as evidenced by a receiver being appointed to take possession of all or substantially all of the property of LESSEE, or the making of a general assignment for the benefit of creditors by LESSEE, or filing a petition in bankruptcy shall terminate this lease and entitle LESSOR to re-enter and regain possession of said Premises. SECTION 35. CUMULATIVE REMEDIES The remedies given to LESSOR in this Article shall not be exclusive but shall be cumulative and in addition to all remedies now or hereafter allowed by law or elsewhere provided in this lease. SECTION 36. WAIVER OF BREACH The waiver by LESSOR of any breach by LESSEE of any of the provisions of this lease shall not constitute a continuing waiver or a waiver of any subsequent breach by LESSEE either of the same or another provision of this lease. SECTION 37. FORCE MAJEURE - UNAVOIDABLE DELAYS Should the performance of any act required by this lease to be performed by either LESSOR or LESSEE be prevented or delayed by reason of an act of God, strike, lockout, labor troubles, inability to secure materials, restrictive governmental laws or regulations, or any other cause except financial inability not the fault of the party required to perform the act, the time for performance of the act will be extended for a period equivalent to the period of delay and performance of the act during the period of delay will be excused; provided, however, that nothing contained in this section shall excuse the prompt payment of rent by LESSEE as required by this lease or the performance of any act rendered difficult solely because of the financial condition of the party, LESSOR or LESSEE, required to perform the act. 15 3/k/parkbenc/3/26/96 SECTION 38. CARE OF PREMISES - MAINTENANCE DEPOSIT (a) LESSEE shall paint, stain or seal the Premises' wood, trim, etc., a minimum of every five years, unless it is mutually determined by LESSOR and LESSEE, that such work shall be needed sooner than five years. All exterior metal surfaces shall be painted no less than once each year except the roof. (b) Any and all graffiti shall be removed by LESSEE at their own expense from the leased Premises within forty-eight (48) hours of notice thereof. (c) LESSEE shall not obstruct, cause or permit any obstruction surrounding the Premises or any part thereof in any manner whatsoever. (d) LESSEE shall comply with all written notice served by LESSOR with regard to the care and maintenance of the Premises. Any written notice hereunder shall specify the work to be done, the estimated cost thereof, and the period of time deemed to be reasonably necessary for completion of such work. Should LESSEE fail to comply with LESSOR's written notice within fifteen (15) days, or within a time deemed reasonably necessary of the time specified therein, LESSEE shall pay over to LESSOR the estimated cost of such work as set forth in the notice. Upon receipt of such sum, LESSOR shall then proceed to cause the required work to be performed. SECTION 39. SECURITY DEPOSIT Upon execution hereof, LESSEE shall continue to maintain at all times hereunder, a security deposit with LESSOR as previously deposited in a sum of Two Thousand Five Hundred Dollars ($2,500) to guarantee the repair and maintenance of the leased Premises as provided hereinabove. Such deposit may be in the form of cash or an assignment of certificate of deposit or savings account. The form of any such assignment shall be approved by the City Attorney. The interest accrued on said deposit shall be paid to LESSEE annually. 16 3/k/parkbenc/3/27/96 • • SECTION 40. EMERGENCY CLOSING OR CLOSING TO EFFECT REPAIR/REMODELING THE PREMISES. LESSOR may close the park without liability therefore at any time it deems necessary for the protection of life, limb or property, or upon reasonable notice to effect any repair, remodeling or rebuilding deemed necessary by LESSOR. SECTION 41. DELIVERIES OF SUPPLIES. LESSOR shall establish the days and times deliveries of supplies may be made and advise LESSEE in writing thereof. SECTION 42. PARKING. LESSEE shall be permitted to erect signs at the twenty (20) parking spaces adjacent to the restaurant, which signs shall indicate parking for restaurant patrons on Saturdays, Sundays and holidays. LESSOR shall establish the days and times when LESSEE's and LESSEE's employees and number of automobiles, trucks, and other motorized and non -motorized vehicles may park and where and advise LESSEE in writing thereof. SECTION 43. NOTICE. Any written notice, given under the terms of this agreement, shall be either delivered personally or mailed, certified mail, postage. prepaid, addressed to the party concerned, as follows: CITY OF HUNTINGTON BEACH: Mr. Ron Hagan Director of Community Services City of Huntington Beach 2000 Main Street, P.O. Box 190 Huntington Beach, CA 92648 LESSEE: Michael and Christie Bartusick 9685 Pettswood Drive Huntington Beach, CA 92648 3/k/parkbenc/3/27/96 17 • • SECTION 44. LESSEE'S RIGHT TO RENEGOTIATE LEASE. If, in the event, LESSOR shall at some future time within the term of this lease or any extension thereof, redevelop the immediate area on which said Premises is situated, or the immediate adjacent surrounding area thereto, to the extent that one or more new eating facilities are constructed and situated either on said immediate area or adjacent thereto, and, in such event, LESSEE can demonstrate that such has or will cause them to be detrimentally affected thereby, then, in such event, LESSEE shall have the right to request that the terms, conditions, and provisions of this lease be renegotiated. The parties agree that -each shall deal with the other in good faith. SECTION 45. INSURANCE HAZARDS. LESSEE shall not commit or permit the commission of any acts on said Premises nor use or permit the use of said Premises in any manner that will increase the existing rates for or cause the cancellation of any fire, liability, or other insurance policy insuring said Premises or the improvements on said Premises. LESSEE shall, at their own cost and expense, comply with any and all requirements of LESSOR's insurance carriers necessary for the continued maintenance at reasonable rates of fire and liability insurance policies on said Premises and the improvements on said Premises. SECTION 46. WASTE OR NUISANCE. LESSEE shall not commit or permit the commission by others of any waste on said Premises; LESSEE shall not maintain, commit, or permit the maintenance or commission of any nuisance as defined in Section 3479 of the California Civil Code on said Premises; and LESSEE shall not use or permit the use of said Premises for any unlawful purpose. SECTION 47. COMPLIANCE WITH LAW. LESSEE shall at LESSEE's own cost and expense comply with all statutes, ordinances, regulations, and requirements of all governmental entities, both federal and state and county or municipal, relating to LESSEE's use and occupancy of said Premises whether such 18 3/k/parkbenc/3/27/96 • f� U statutes, ordinances, regulations, and requirements be now in force or hereinafter enacted. The judgment of any court of competent jurisdiction, or the admission by LESSEE in a proceeding brought against LESSEE by any government entity, that LESSEE has violated any such statute, ordinance, regulation, or requirement shall be conclusive as between LESSOR and LESSEE and shall be ground for termination of this lease by LESSOR. SECTION 48. BINDING ON HEIRS AND SUCCESSORS. This lease shall be binding on and shall inure to the benefit of the heirs, executors, administrators, successors and assigns of the parties hereto. SECTION 49. PARTIAL INVALIDITY. Should any provision of this lease be held by a court of competent jurisdiction to be either invalid, void, or unenforceable, the remaining provisions of this lease shall remain in full force and effect unimpaired by the holding, so long as the reasonable expectations of the parties hereto are not materially impaired. SECTION 50. SOLE AND ONLY AGREEMENT. This instrument constitutes the sole and only agreement between LESSOR and LESSEE respecting said Premises, the leasing of said Premises to LESSEE, or the lease term herein specified, and correctly sets forth the obligations of LESSOR and LESSEE to each other as of its date. Any agreements or representations respecting said Premises or their leasing by LESSOR to LESSEE not expressly set forth in this instrument are null and void. SECTION 51. TIME OF ESSENCE. Time is expressly declared to be the essence of this lease. SECTION 52. INDEMNIFICATION, DEFENSE, HOLD HARMLESS LESSEE shall indemnify and save and hold harmless LESSOR, its officers and employees, from any and all liability, including any claim of liability and any and all losses or costs arising out of the negligent performance of this agreement by LESSEE, their officers or 19 3/k/parkbenc/3/27/96 • 0 employees or from any willful misconduct of LESSEE, their officers or employees while engaged in the performance of this -agreement. SECTION 53. WORKERS' COMPENSATION LESSEE shall comply with all of the provisions of the Workers' Compensation Insurance and Safety Acts of the State of California, the applicable provisions of Division 4 and 5 of the California Labor Code and all amendments thereto; and all similar state or federal acts or laws applicable; and shall indemnify, defend and hold harmless LESSOR from and against all claims, demands, payments, suits, actions, proceedings and judgments of every nature and description, including attorney's fees and costs presented, brought or recovered against LESSOR, for or on account of any liability under any of said acts which may be incurred by reason of any work to be performed by LESSEE under this Agreement. LESSEE shall obtain and furnish evidence to LESSOR of maintenance of statutory workers' compensation insurance and employers' liability in an amount of not less than $500,000 bodily injury by accident, each accident, $500,000 bodily injury by disease, each employee, and $1,000,000 bodily injury by disease, policy limit. SECTION 54 INSURANCE In addition to the workers' compensation insurance and LESSEE's covenant to indemnify LESSOR, LESSEE shall obtain and furnish to LESSOR the following insurance policies covering the PREMISES: (a) General Liability Insurance. A policy of general public liability insurance, including motor vehicle coverage. Said policy shall indemnify LESSEE, their officers, agents and employees, while acting within the scope of their duties, against any and all claims of arising out of or on or in connection with the Premises, and shall provide coverage in not less than the following amount: combined single limit bodily injury and property damage, including products/completed operations liability and blanket contractual liability, of $1,000,000 per occurrence and in the annual aggregate. Said policy shall name LESSOR, its officers, and 20 3/k/parkbenc/3/27/96 • n LJ employees as Additional Insureds, and shall specifically provide that any other insurance coverage which may be applicable to the PREMISES shall be deemed excess coverage and that LESSEE'S insurance shall be primary. (b) Fire Insurance. In order that the business of LESSEE and the gross sales of LESSEE as defined in this lease may continue with as little interruption as possible, LESSEE shall, during the full term of this lease and any renewals or extensions thereof, maintain at LESSEE'S own cost and expense an insurance policy issued by a reputable company authorized to conduct insurance business in California insuring for their full insurable value all fixtures and equipment and, to the extent possible, all merchandise that is, at any time during the term of this lease or any renewal or extension thereof, in or on the Premises against damage or destruction by fire, theft, or the elements. LESSEE shall also maintain in force during the entire term of this agreement, a standard broad form fire insurance policy in which the LESSOR is named and which any and all losses are made payable to LESSOR. The face amount of the policy shall be for ninety (90) percent of the replacement value of the Premises, and be in a form acceptable to the City Attorney. SECTION 55. TERMINATION OF PRIOR LEASE Concurrently with the parties' execution of this Lease, the previous Lease for this Premises, executed in or about 1987 by LESSOR and LESSEE's deceased husband, shall be, and the same hereby is, terminated. SECTION 56. ADJACENT PARK AREA By permit and approval of the Director of Community Services, the LESSEE may use the park area adjacent to the PARK BENCH CAFE structure as is reasonable and necessary to serve the public demand. The LESSOR will, at all times, retain the authority to determine or restrict use of this park area. 21 3/k/parkbene/3/27/96 SECTION 57. ATTORNEY FEES In the event suit is brought by either party to enforce the terms and provisions of this agreement or to secure the performance hereof, each party shall bear its own attorney's fees. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by and through their authorized officers the day, month and year first above written. LESSEE: By: Michael Bartr ick By: 31 Christie Bartusick ATTE City Clerk REVIEWED AND'APPROVED: �--, e City A ministrator LESSOR: CITY OF HUNTINGTON BEACH, a municipal corporation of the State of California Mayor APPROV D AS TO FORM: City Attorney3I 12,1�'RL IN D D P R ED: Deputy City A mi 'strator/Adminis ati Services 22 3/k/parkbenc/3/27/96 SUBJECT I B Hv+n.cea+ KACK W I BIT A' BY DATE CC NO. --....... _...._...... - dC�T't`R- AVF - �LT � fie` L`-'�: �• _� . -i _ -� . .._..- a�—. � : .__ : \ ��__� R:-Z.�i:"�.�T�IL.:��Y'S.: �..�C�9�T�:�ZTZC.T •_ _. _._.._.`... y _..... NOT TO HS /'4 A 3-31 -9't P.S. L CHKO. BY DATE SHEET NO. OF 6 Z W � c CO T m PARK 13ENC H cAFE I, N 70 0 , q' MI :1 a0 M R5.L *�l JAN-28-97 TUE�02:45 PM HAVE A GREAT DAY 1 CORD,M 'CERTIFICA OF LIABILITY INSU PRODUCER 1' A C I; COMMERCIAL'`INSURANCE 1504 BROOKHOLLOW.ORIVE # 114 SANTA ANA CA 92765` ! I MICHAEL B, CONDY I ' I ' vtR y,. 714.755_-1575`11; , ..rya 714.755.4124 INSURED THE PARK BENCH _ CAFE 17732 GOLDENWEST:STREET HUNTINGTONjBEACH CA 92648 FAX NO. 714 755 4124 P. 01 rr++ VVWW DATE(uul /DDf CEpasEN 01/28/97 THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. COMPANIES AFFORDING COVERAGE COMPAAA COMMERCIAL UNION INSURANCE OOMPANY �•� e COMPANY C COMPANY D COVERAGES THIS IS TO CEATIF'YTHAT;THE POLICIES OPINSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE -ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POUCIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDIT 16NS OF SUCH POUCIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. CO . POUCYEFFECTIVE POUCYEXPIRA71ON TYPE OF INSURAlICE•:.w POLICY NUMBER UYITS I.TR •;;•(.} •^;t DATE 111M/DDMtI I DATE (LeN/DD/YY) 4ENERAL LIABILITY A X COMMCROIAL GENkAAL UA81UTY FALK40191 CLAIMS MADE EclOCCUR DWNENS 4 CONTRACTOR'S PROT AUTOMOBILE LIADILITY ANY AUTO ALL OWNCO AUTOS SCHEDULED AUTOS HIRED AUTOS NON•OWNFO AUTOS 6ARADE ►IABIUTY ANY AUTO D(CESS LIABILITY ''t'.' - - L liv y, UMBRELLA FORM i',.U3 OTHER THAN UMBFIi "u FORM - WORKERS COMPENSATION AND KMPLOVERS' LIABILITY" THE PROPRICTOW INCL PA"ERS/EXECU71VE f orrlcEPIS ARE.; R 6rCL APPPr,I JF,D AS GAIL HUTT N CITY ATi'ORIC By/ 1 A1j / t�i] ti�GOhS�fv;E A I BUILDING I FALK40191 A CONTENTS FALK40191 GENERAL AGGREGATE _II L . UUU . 09/20/96 09/20197 PRODUCTS -COMP/OPAGG 51.000. PERSONAL & ADV INJURY EACH OCCURRENCE FIRE DAMAGE (Any one 11m) $1. 000 . 3 1.000. 3 ^ 100 . MED EXP (Any one pawn) COMBINED SINGLE LIMIT i 51 3 FORM : BODILY INJURY i (PC, person) BODILYINJURY 3 f (Per M1¢CWent PROPERTY DAMAGE i ey AUTO ONLY - EA ACCIDENT S OTHER THAN AUTO ONLY; EACH ACCIDENT 3 R_ AGGREGATE S EACH OCCURRENCE $ AGGREGATE 3 EACH ACCIDENT i ISEASE • POLICY LIMIT 3 ISEASE • EL EMPLOYEE i 09/20/96 ! 09/20/97 I $79,000 $250. DEO 09/20/96 09/20/97 I $30,000 $250. DED 1f1W66ENMTESTREfNURTINGTONS$EACH. �pNDLOR�GZOlIEATTACRED CERTIFICATE HOLDER CANCELLATION CTYH804 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE ISSUING COMPANY WU NAIL CITY OF HUNTI NGTON BEACH. 30 DAYS WRITTEN NOTICE TO THE CERTIFICATE HOLDER NAMED TO THE LEFT. RISK MANAGEMENT 2000 MAIN STREET HUNTINGTON BEACH CA 92646 AUTHORIZED REPRESENTATI MICHAEL B. CONDY ACORD 25•S �.t CORPORATION 1988 JAN-28-97 TUE42:46 PM HAVE A GREAT DAY FAX NO. 714 755 4124 Insured;°THE PARK BENCH CAFE Policy; 4ALK40191 COMMERCIAL GENERAL LIABILITY ' THIS ENDORSEMENT CHANGES THE POLICY, PLEASE READ IT CAREFULLY ADDITIONAL INSURED -MANAGERS OR LESSORS OF PREMISES CG 201111/85 This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE 1. Designation of Premises (Pa:t Leased to you) 17732 GOLDENWEST ST., HUNTINGTON BEACH 2. N'ame of; Person or Organi ation (Additional Insured) ,, THE CItY OF HUNTINGTON BEACH, ITS OFFICERS, EMPLOYEES, AND AGENTS 3. Additional Premium: WHO 1S INSURED ($onion 11) is amended to include as an insured the person or organifation shorn in the Schedule but only with respect to liability arising out of the ownership, maintenance or use of that part or the premises leased to you and shown in the Schedule and subject to the following additional exclusions: 11/26/96 This insurance does not appty to: I . Any "occurrence" which takes place After ,you cease to be a tenant in that premises. 2. Structural alterations, new construction or demolition operations performed by or out behalf of the person or organization shown in the Schedule P. 02 STATE P.O. BOX 420807. SAN FRANCISCO, CA 94142-0807 COMPENSATION INSURANCE FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE DECEP BER 10, 1996 POLICY NUMBER: 109I554 - SS CERTIFICATE EXPIRES: , CITY OF HUNTINGTON BEACH RISK MANAGEMENT 2000 14,AI N STREET HUNTINGTON BEACH, CA 92643 ''' JOB: ALL CPERATICNS `ty Attorney L This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California Insurance Commissioner to the employer named below for the policy period indicated. This policy is not subject to cancellation by the Fund except upon den days' advance written notice to the employer. 30 We will also give you J�N days' advance notice should this policy be cancelled prior to its normal expiration. 'This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding any requirement, term, or condition of any contract or other document with respect to which, this certificate of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies. AUTHORI? REP'Ir NTATIVE PRESIDENT EMPLOYER'S LIABILITY LI►M"IT IkXLUDINCZ DEFZNSE COSTS: Q,00,ODG PE{ OCCUR%Ei•C; EN00RSE'r�ENT ;rN" 2065-ETI TLEO C E P T IFIC;°:7E i^0Lt ETj 0 S` TICE EirFECi irG 03/0119. IS ATTACHED TO at 0 FORNS n i?AJ:T OF THIS POLICY. • STATE /"'ATE P.O. BOX 420807, SAN FRANCISCO, CA 94142-0807 compENSATION INSURANCE FUND CERTIFICATE OF WORKERS' COMPENSATION INSURANCE D E C E i%f B E R 10, 19 9 C POLICY NUMBER: 10 916 5 4 —: b CERTIFICATE EXPIRES- r CITY OF HUNTINGTON BEACH At°ti ...;-_ .: 10 N`uRM: erISK MANAGEMENT GAIL, HUTT101q 2000 f•,AIN STREET 01TY ATTORNEY HUNTINGTON BEACH, CA 92645 JOB: ALL OPERATIOMS )',-;;Yry City Attorney L This is to certify that we have issued a valid Workers' Compensation insurance policy in a form approved by the California insurance Commissioner to the employer named below_for the policy period indicated. This policy is not subject to cancellation by the Fund except upon Oa days' advance written notice to the employer. We will also give you JFN days' advance notice should this policy be cancelled prior to its normal expiration. %This certificate of insurance is not an insurance policy and does not amend, extend or alter the coverage afforded by the policies listed herein. Notwithstanding. any requirement, term, or condition of any contract or other document with -respect to which. this certificate of insurance may be issued or may pertain, the insurance afforded by the policies described herein is subject to all the terms, exclusions and conditions of such policies. AUTHORIZED REPeNTATIVE PRESIOENT EMPLOYER'S LIASILITY 01-11T I6:CLUDING DEFENSE COSTS: $1,C'00,000 PLR G:%l;�'ZriCF E1'OORS'E 1ENT 1#2065'EN'TITLED. CE.RTIFICATIE "HOLDERS' NOTICE EFFECTIVE 03/01/96 IS ATTACHED TO AND FORMS A PASS OF THIS POLICY. 1;-'03/199E 14:40 7147554124 HAVE A GREAT DAY!! PAGE 02 AC`ORD ERTtFi AT OF LIABILITY 1.NSUR CEmkat 11/26/96 PRODUCER THIS CERTIFICATE IS ISSU :D AS A MATTER OF INFORMATION ONLY AND CONFERS NO R GHTS UPON THE CERTIFICATE A C I COMMERCIAL INSURANCE HOLDER. THIS CERTIFICATE DOES NOT AMEND, EXTEND OR 1504 BROOKHOLLOW DRIVE # 114 ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. SANTA ANA CA 92705 COMPANIE! AFFORDING COVERAGE MICHAEL B. CDNDY COMPANY A COMMERCIAL UAION INSURANCE PIWn�NO, 714.755-1575 I•,�,Na714--7. -4.�24 -. _ -,..- .... _ - - . ...... ....... _ INSURED COMPANY COMPANY THE PARK BENCH -CAFE C 17732 STREET COMPANY HUNTINGTON BEACH CA 92648 D COVERAGES THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMI'D ABOVE FOR THE POLICY PFRIOD INDICATED, NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN. THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO AI_I. THE TEAMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES, LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. i co Policy OF INSURANCE POLICYNUMBER POi1CY EFFEC"4 POLICY EXPIRATION! LIMITS LTA DATE (MM/)D/YY) DATE (MM/DD,MY) GENERAL LIABILITY 1 o F I GENERAL AGGREGATE S 2000000 A x I. COMMERCIALGENERAL UAQ1LITY FALK40 1o',] i�r AS 1 09/20/96 09/20/97 `PRODUCTS • COMP;OP AGO j s .1000000 CL.NM0 MADE I •• 100oun, Ap tU'i 1C Lv'� PERSONAL a ADV INJURY S 1000000 Oft £R'9ACONTRACTOR'9PROT GAST'' TiOr�SZ�'Y EACH OCCURRENCE j S 1000000 al rn0y FIRE DAMAGE Any one fire) S 100000 t1......... <; ity A — ...-- MED EXP (Any one person) $ 5000 AUTOMO&LELIABILITY J ANY AUTO U COMBINED SINGLE LIMIT S--- i - - - ALL OWNED AUTOS SOD1lY INJURY i S SCHEDULED AUTOS (Par pardon) HFrEb AUTOS BODILY INJURY S NON -OWNED AUT06 I (Per accidentj I I PROPERTY DAMAGE : S i GARAGE 1L4B1UTY i AUTO ONLY . EA ACCIDENT 1 S ANY AUTO OTHER THAN AUTO ONLY; EACH ACCIDENT 3 AGGREGATE S EXCESS UABIUTY i EACH OCCURRENCE j S UMBRELLA FORM AGGREGATE S OTHER THAN UMBRELLA FORM ; is WORKERS COMPENI ATION AND ; WC STATU• ;OTH T I IT -L _ ER ED EMPLOYERS' UAOILITY ADD�L• IN3,./,;L✓ LI ✓" ,J Li I r, , •v i EL EACH ACCIDENT I S — - THE PROPRIETOR/ I INCL PARTNERS/'EXECLMVE EL DISEASE - POLICY LIMIT y OFFICERS ARE: EXCL EL DISEASE - FA EMPLOYEE S ---- - - --- - I OTHER DESCRIPTION OF OPERAT1~1 ^CATk0wmwrwLSLEs/S"c1AL (TENSLAN 17732FGOlDENWE STREET-AUFTTINGTONS CH, C DLO CGNBTTACRED CERTIFICATE HOLDER . CANCELLATION C 1T1V HB04 SHOULD ANY OF THE ABOVE DESCIISEO POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, THE II:SUING COMPANY WILL MAIL CITY OF HUNTINGTON BEACH w DAYS WRITTEN 1411 TO -HE CERTIFICATE HOLDER NAMED TO THE LEFT, RISK MANAGEMENT 2000 MAIN STREET HUNTINGTON BEACH CA 92646 A R P TAT1 IC L C ACOp025S (1lt�bj — E'rACOFiD O ORATION 1888 r ,.j 1996 14:40 M 7147- = i2'4 i HAVE A GREAT DAY!! • PAGE 03 Imured: THE PARK BENCH CAFE Policy: FALK40191 COMMERCIAL GENERAL LIABILITY THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY ADDITIONAL INSURED -MANAGERS OR LESSORS OF PREMISES CG 2011 11/95 This endorsement modifies insurance provided under the following: COMMERCIAL GENERAL LIABILITY COVERAGE PART SCHEDULE 1. Designation of Premises (Part Leased to you) 17732 GOLQENWEST Sr., HUN? MGTON BEACH 2. Name of Person or Orgamzadon (Additional Insured) THE CITY OF HUNTINGTON BEACH, lTS OFFICERS, EMPLOYEES, AND AGENTS 3. Additional Premium: WHO IS INSURED (Section II) is amended to include as an insured the person or organization shown in the Schedule but only with respect to liability arising out of the ownership, maintenance or use of that part of the premises ]cased to you and shown in the Schedule and subject to the following additional ezchisions: This insurance does not apply to: 1. Any "occurrence" which takes place after you cease to be a tenant in that premises. 2. Structural alteratOns, new construction or demolition operations performed by or on behalf of the person x orgAnization shown in the Schedule 11/26/96