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HomeMy WebLinkAboutRes 02-02 02/05/2002 w~ 1/15/02 RESOLUTION NO. 2-02 A RESOLUTION AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE VILLAGE OF MOUNT PROSPECT AND WINDY CITY BAKING, INC. 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 Chicago Express Caf6, a subsidiary of Windy City Baking, Inc., at the train station mentioned herein; and WHEREAS, 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: The Mayor and Board of Trustees of the Village of Mount Prospect do hereby authorize execution of a Lease Agreement between Chicago Express Caf6 (dba Java Depot) and the Village of Mount Prospect for the purpose of permitting a retail bakery to be located within the Union Pacific Train Station in Mount Prospect; and SECTION TWO: Said Lease shall be for the twenty (20) months remaining on the existing Lease, entered into on August 20, 1998 by Michel's USA, Inc., (dba Heinemann's Bakery EXPRESS), now declared null and void, which expires on August 20, 2003; and SECTION THREE: Said Lease shall, at such time of expiration, be renewed for a an additional period of five (5) years, as set forth in the Lease, a copy of which is attached hereto and hereby made a part hereof. SECTION FOUR: This Resolution shall be in full force and effect from and after its passage and approval in the manner provided by law. AYES: Corcoran, Hoefert, Lohrstorfer, Skowron, Wilks, Zadel NAYS: None ABSENT: Farley PASSED and APPROVED this 5th day of February, 2002. Velma W. Lo'~'e, Village Clerk H:\G~N\fitaS\WIN\RES~Auth agrmt, train station bakery, 02.doc MAYOR Gerald L. Farley TRUSTEES Timothy J. Corcoran Paul Wm. Hocfert Richard M. Lohrstorfer Michaele Skowron Irvana K. Wilks Michael A. Zadel Village of Mount Prospect VILLAGE MANAGER Michael E. Janonis VILLAGE CLERK Velma W. Lowe Community Development Department Phone:847/818-5328 Fax: 847/818-5329 100 South Emerson Street Mount Prospect, Illinois 60056 ?DO: 847/392-6064 LEASE AGREEMENT DOWNTOWN TRAIN STATION -RETAIL SP ACE On this 5th day of February of 2002, Chicago Express Caf6, ("CEC"), agrees to lease from the Village of Mount Prospect, a~municipal corporation, ("Village"), space, illustrated on Exhibit A (the 'Premises"), within the downtown tram station ("Train Station") located at 11 East Northwest Highway, Mount Prospect, Illinois 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, CEC is willing to provide these services according to the following terms of this agreement. Now, therefore, the parties agree as follows: 1. TERM. The term of this Lease is two (2) years from the date of this Agreement and may be extended for additional five (5) yearperiods if approved in writing by both parties at a rent to be agreed upon by the parties. Notice of renewal of the Agreement shall be made no later than 120 days from the expiration of the current lease term. 2. SECURITY DEPOSIT. There will be a security deposit equal to one month's rent. This will be returned upon expiration of the lease if there are no further charges pending. Further charges may include damage to property, unpaid utilities, or back rent. 3. ANNUAL BASE RENT. The rent will be $600 per month. Rent will be paid and will be due the tenth (10th) day of each month. For the initial month's rent, CEC will pay a pro-rated share of $600 based upon the number of days that CEC has occupancy that month. All payments will be sent to the attention of the Finance Director, Village of Mount Prospect, 100 South Emerson Street, Mount Prospect, Illinois 60056. 3A. ADDITIONAL RENT. In addition to the base rent, the Village shall be entitled to 7% of the revenue provided by all gross sales over $25,000 per year. CEC shall pay the additional rent on a monthly basis as soon as the $25,000 annual gross sales figure is reached. In order to evaluate sales figures, CEC will provide the Village with month and year to date sales reports as well as an annual report from the lease date. 4. PREMISES. The area occupied by CEC will consist of approximately five hundred (500) square feet. The Village will prepare the Premises space to the specifications set forth in Exhibit B, herein attached. The Village warrants that upon the date of delivery, there will be no easement, encumbrances, zoning regulations and/or restrictions that would prohibit CEC from opening a retail bakery facility. LEASE AGREEMENT DOWNTOWN TRAIN STATION -RETAIL SP ACE Page 2 2/5/2002 5. USE. CEC shall have the exclusive right to serve hot and cold refreshments and will have the exclusive right to sell all items generally classified as bakery items, sandwiches (hot or cold), entrees and desserts, CEC may sell canned or bottled beverages except those alcoholic in nature and cold, and carbonated fountain drinks. Sales may also include customer convenience items such as newspapers, magazines, and flowers. The Village and its successors and assigns will not operate, or permit to be operated within the Premises, another bakery selling, or displaying for sale, any bakery items deemed comparable to those normally served by CEC. In the event the Village breaches the covenants contained in this paragraph and the breach continues for 30 days, CEC will have, in addition to all the other available remedies, the right to terminate this Lease after giving the Village one hundred and twenty (120) days written notice of termination. 6. HOURS OF OPERATION. CEC will maintain these base hours of operation: Monday through Friday: 5:00 a.m. to 11 a.m. Saturday: Closed Sunday: Closed The hours may be extended by CEC but will not be shortened or changed without the written permission of the Village. 7. STANDARDS OF SERVICE. CEC will carry out and perform all operations and services in a professional mariner and in keeping with high standards for customer service and cleanliness. If, in the Village's reasonable judgment, CEC is not meeting these standards, then CEC will promptly change and comply with these standards within 10 days of receiving written notice from the Village. 8. LICENSE AND PERMITS. CEC will obtain all necessary licenses and permits needed to conduct the business required under the terms of this Lease. 9. 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. 10. ADDITIONAL CHARGES. CEC will pay a common area maintenance charge (prorated to based on the square footage), garbage collection, insurance and utilities including water/sewer, gas and electric applicable to their space. Where possible, these expenses will be metered separately. This charge will be calculated and charged on a quarterly basis. 11. TERMINATION. In the event of CEC non-performance or breach of the Lease terms, the Lease may be canceled by the Village, in whole or in part, after the Village provides written notice of default and CEC fails to cure the default within (10) ten days of the notice, unless such default cannot be cured within the ten (10) days period and CEC moves diligently to cure the default within a reasonable time period. If CEC intends to close its operation for any reason, except for a temporary closing for an emergency as set forth herein, it must notify the Village in writing one hundred and twenty (120) days prior to shutting down. IfCEC must cease operation as a result of an emergc~ncy, it must notify the Village as soon as possible of the reason and the anticipated duration. The Village may terminate the Lease immediately if CEC closes for seven (7) days, without reasonable cause, and fails to reopen after receiving written notice from the Village. If CEC terminates this lease for any reason, or at the Village's request, CEC will return the premises to the condition it was in prior to CEC installation of its furniture, fixtures and equipment. Except as stated specifically herein to the contrary, upon termination of the Lease between the parties, CEC shall be relieved from any and all further obligations under the Lease. EASE AGREEMENT DOWNTOWN TRAIN STATION -RETAIL SP ACE Page 3 2/5/2002 12. INDEMNIFICATION. CEC agrees to indemnify and hold harmless the Village, its officers, agents and employees from any and 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 operation of CEC or its agents under this Lease, except as a result of the negligence of the Village, its officers, agents or employees, and CEC will, at its own expense, appear, defend and pay all fees of attorneys and all costs and other expenses arising there from or incurred in connection therewith; and if any judgments will be rendered against the Village in any such action, CEC will, at its own expense, satisfy and discharge the same except that CEC will not defend, indemnify, and/or save harmless the Village from and against the Village's own negligence. 13. INSURANCE. CEC agrees to obtain at its own cost and expense, and to keep in full force and effect during the term of this Lease, general liability insurance in the amount of $500,000 single claim and $1,000,000 aggregate from an insurance cartier having at least an A., rating as defined in A. M. Best C's Key Rating Guide. The Village will be named as an additional insured on any CEC policy. 14. ASSIGNMENT. CEC will not assign this Lease or any part thereof, to any other person, firm or corporation, except affiliates, without the written consent of the Village. Notwithstanding anything contained herein, CEC shall have the right to sublease the location to a qualified franchisee of CEC with the written consent of the Village, which consent shall not be unreasonably withheld or delayed. Such sublease or arrangement shall not relieve CEC from any Tenant obligation, as set forth in the Agreement, including but not limited to, the reasonable quality standards established by the Village. Further, the Village will look to CEC should any default arise as a result of actions of the sub-lessee. 15. AMENDMENTS. Any amendments to this Lease must be in writing and signed by both parties. IN WITNESS WHEREOF, the parties hereof have executed this Lease the day and year first written above. Title ~(~r ChiCago Express Caf6 ~, Title Date Date H :\GENkP LANN lNG~Downtown Bddrc\Train Station\Train station lease 2002.doc