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HomeMy WebLinkAboutRes 43-98 08/18/1998 WL/ 8/13/98 RESOLUTION NO. 43-98 A RESOLUTION AUTHORIZING EXECUTION OF A LEASE BETVVEEN THE VILLAGE OF MOUNT PROSPECT AND HEINEMANN'S BAKERY WHEREAS, the Village of Mount Prospect leases the Union Pacific Train Station in Mount Prospect; and WHEREAS, the Village of Mount Prospect is desirous of entering into a lease agreement with Michel's USA, Inc. d/b/a Heinemann's Bakery Cafe & Heinemann's Bakery EXPRESS at the train station mentioned herein; and WHEREAS, it such agreement will provide retail commuter services in the train station that will benefit the citizens of Mount Prospect; and NOW, THEREFORE, BE IT RESOLVED BY THE MAYOR AND BOARD OF TRUSTEES OF THE VILLAGE OF MOUNT PROSPECT, COOK COUNTY, ILLINOIS: SECTION ONE: That the Mayor and Board of Trustees of the Village of Mount Prospect do hereby authorize execution of a Lease Agreement between Michel's USA, Inc. (Heinemann's Bakery EXPRESS) and the Village of Mount Prospect for the purpose of permitting a bakery to be located within the Union Pacific Train Station in Mount Prospect, and said Lease shall be for a period of 5 years, as set forth in the Lease, a copy of which is attached hereto and hereby made a part hereof as Exhibit "A". SECTION TWO: That this Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: Clowes, Hoefert, Lohrstorfer, Nocchi, Wilks NAYS: None ABSENT: Corcoran PASSED and APPROVED this 18th day of August, 1998. Velma W'. Lowe ~ Acting Village Clerk H:\GEN\olddoc\WlN\RES\LEASE.train,doc LEASE AGREEMENT DOWNTOWN TRAIN STATION - RETAIL SPACE On this2~'ffAd~ty of ~o~o~-T", 1998, Michel's USA, Inc. ("Michel's") d/b/a Heinemann's Bakery Caf6 & Heinemann's Bakery EXPRESS, agrees to lease from the Village of Mount Prospect, a municipal corporation, ("Village"), space, illustrated on Exhibit A (the "Premises"), within the downtown train station ("Train Station") located at 11 East Northwest Highway, Mount Prospect, Iltinnis Whereas, the Village wants to enter into an agreement that will provide retail commuter services in the train station and that will benefit the citizens of Mount Prospect; and Whereas, Michel's is willing to provide these services according to the following terms of tins agreement. Now, therefore, the parties agree as follows: 1. TERM. The term of this Lease is five (5) years from the date posted on the Certificate of Occupancy and may be extended for additional five (5) year periods if approved in writig by both parties. Notice of renewal of the Agreement shall be made no later than 120 days from the expiration of the current lease term. 2. ANNUAL BASE RENT. The rent will be $300 per month for the first two years of the lease, $400 per month the third year of the lease, and $600 per month for the remaining two years of the lease. Pent will be paid and will be due the tenth day of each month. Upon opening, Michel's will pay a pro-rated share of that month's rent, based on $300 per month. AIl payments will be sent to the attention of the Finance Director, Village of Mount Prospect, 100 South Emerson Street, Mount Prospect, Illinois 60056. 3. PREMISES. The area occupied by Michel's will eonsist of epproxLraately five hundred (500) square feet. The Village will prepare the Premises space to the specifications outlined in Extn'oit B, herein attached~ The Village warrants that upon the date of delivery, there will be no easement, encumbrances, zoning r.~gulations and/or restrictions that would inhibit Michel's from opening a retail bakery facility. 4. USE. Michel's shall have the exclusive right to serve hot and cold refreshments and will have the exclusive right to sell all items genera!ly classified as bakery items, sandwiches (hot or cold), entrees and desserts. Michel's may sell canned or bottled beverages except those alcoholic in nature, cold, and carbonated "fountain drinks". Sale,may also include customer convenience items such as newspapers, magazines, and flowers. The Village and i~s successors and assigns will not operate, or pemfit to be operated within the Premises, another bakery selling, or displaying for sale, any bakery items deemed comparable fo those normally served by Michel's. In the event the Village breaches the covenants contained in this paragraph and the breach continues for 30 days, Michel's will have, in addition to all the other available remedies, the right to terminate this Lease afwr giving the Village one hundred and twenty (120) days written notice of tennination. 5. HOURS OF OPERATION. Michel's will maintain these base hours of operation: Monday through Friday: 5:00 a.m. to 10 a.m. Saturday: Closed Sunday: Closed The hours may be extended by Michel's but will not be shortened or changed without the written penmssion of the Village. 6. STANDARDS OF SERVICE. Michel's will carry out and perform all operations and services in a professional manner and in keeping with ingh standards for customer service and cleanliness. If, in the Village's reasonable judgment, Michel's is not meeting these standards, then Michel's will promptly change and comply with these standards within 10 days of receiving written notice from the Village. DOWNTOWN '1,_ ~ STATION LEASE - HEINEMANN'S BAKERY August 13, 1998 Page 2 7. LICENSE AND PERMITS. Michel's will obtain all necessary licenses end permits needed to conduct the business required under the terms of this Lease. 8. COMMON AREA MAINTENANCE. The Village of Mount Prospect will maintain the common areas of the Train Station. The common areas are illustrated on Exhibit A, herein attached. The Village will maintain these areas of the Train Station on an as needed basis, including mopping, sweeping, and trash collection in and around the station. 9. ADDITIONAL CHARGES. Michel's will pay a common area maintenance charge (prorated based on the square footage), garbage collection, insurance and utilities including water/sewer, gas end electric applicable to their space. Where possible, these expenses will be metered separately. 10. TERMiNATION. In the event of Michel's non-performance or breach of the Lease terms, the Lease may be cenceled by the Village, in whole or in part, after the Village provides written notice of default and Michel's fails to cure the default within (10) ten days of the notice, unless such default cannot be cured within the ten (10) days period end Michel's moves diligently to cure the default within a reasonable time period. If Michel's intends to close its operation for any reason, except for a temporary closing for en emergency as outlined herein, it must notify the Village in writing one hundred end twenty (120) days prior to shutting down. If Michel's must cease operation as a result of en emergency, it must notify the Village as soon as possible, the reason, end the anticipated duration. The Village may terminate the Lease immediately if Michel's closes for seven (7) days, without reasonable cause, and fails to reopen after receiving written notice from the Village. If Michel's terminates this lease for eny reason, or at the Village's request, Michel's will return the premises to the condition it was in prior to Michel's installation of its furniture, fixtures and equipment. Except as stated specifically herein to the contrary, upon termination of the Lease between the parties, Michel's shall be relieved from any and all further obligations under the Lease. 11. INDEMNII*ICATION. Michel's agrees to indemnify end hold harmless the Village, its officers} agents end employees from uny end all liability, losses or damages including attorney's fees and costs of defense the Village may suffer in any Way resulting.from or arising out of the opc~ration of Michel's or its agents under this Lease, except as a result of the negligence of the Village, its officers, agents or employees, end Michel's will, at its own expense, appear, defend end pay all fees of attorneys and all costs end other expenses arising therefrom or incurred in connection therewith; end if eny judgments will be rendered against the Village in any such action, Michel's will, at its own expense, satisfy end discharge the same except that Michel's will not defend, indemnify, and/or save harmless the Village from and against the Village's own negligence. 12. iNSURANCE. Michel's agrees to obtain at its own cost end expense, end to keep in full force and effect during the term of this Lease, general hability insurance in the amount of $500,000 single claim end $I,000,000 aggregate from en insurance carrier having at least an "A" rating as defined in A. M. Best's Key Rating Guide. The Village will be named as en additional insured. 13. ASSIGNMENT. Michel's will not assign this Lease or eny part thereof, to any other person, £n'm or corporation, except affiliates, without the written consent of the Village. Notwithstanding anything contained heroin, Michel's shall have the fight to sublease the location to a qualified franchisee of Michel's with the written consent of the Village, which consent shall not be unreasonably withheld or delayed. Such sublease arrangement shall not relieve Michel's from any Tenant obligation, as outlined in the Agreement, including but not limited to, the reasonable quality standards established by the Village. Further, the Village will look to Heinemenn should any ,default arise as a result of actions of the sub-lessee. 14. AMENDMENTS. Any amendments to this Lease must be in writing and signed by both parties. OWNTOW2q 'I. . STATION LEASE - HEINEMANI~S BAKERY August 13, 1998 Page 3 IN WITNESS WHEREOF, the parties hereof have executed this Lease the day and year first written above. Title Title Date Date Att~ ~\~I~V~2\DEPTxCOM DEV~GEN~PLNG\Train 8tation~Lease - Downtown Train Station - FINAL.doe