Title
RESOLUTION AUTHORIZING A LEASE AGREEMENT WITH CRABBY OL’ BILLS, INC. FOR OPERATION OF ITS FOOD VENDING SERVICE IN CANAL PARK.
Body
CITY PROPOSAL:
RESOLVED, that the proper city officials are hereby authorized to enter into and execute a lease agreement, substantially in the form attached as Exhibit 1, with Crabby Ol’ Bills, Inc., d/b/a Crabby Ol’ Bills Canal Park, for use of the real property in Canal Park near the Lighthouse Lot to operate its food vending service for the period May 15, 2017 through October 31, 2021. Rent payments shall be deposited to Fund No. 110-121-1222-4627 (General Fund, Public Admin, Facilities Management, Concessions and Commissions).
Statement of Purpose
STATEMENT OF PURPOSE: This resolution authorizes the city to enter into a lease agreement with Crabby Ol’ Bills, Inc., d/b/a Crabby Ol’ Bills Canal Park (“Crabby Ol’ Bills”), for use of real property in Canal Park adjacent to the Lighthouse House to operate its food vending service for the period May 15, 2017 through October 31, 2021. The real estate to be leased is outlined in red on the attached Exhibit 2.
This food vending service has operated at this location in Canal Park for many years under prior agreements with different owners. Recently the company has been sold to Crabby Ol’ Bills, Inc., and the new owner desires to continue the food vending service under similar conditions as before. The city desires to lease this property to a private user whose use will complement the development and character of the Canal Park area and generate revenues for the city.
For consideration of the lease agreement, Crabby Ol’ Bills will pay to the City an amount equal to ten percent (10%) its gross receipts (as defined in the lease agreement).
Under the terms of the agreement, the parties may mutually agree to extend the lease agreement to October 31, 2026. Both parties must agree in writing to extend the lease agreement no later than thirty (30) days prior to its expiration on October 31, 2021. If both parties have not agreed to extend the lease agreement in writing by the time period allotted, then the agreement automatically terminates on October 31, 2021.