Agenda - Council - 12/11/2012 - Laserfiche WebLink

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WHEREAS, TK agrees to insure the Go -Kart Track and its related operations need to be insured for public liability purposes; and WHEREAS, the City desires to limit its expense outlay to no more than $8,000.00; and WHEREAS, TK proposes to pay as rent $100.00/mo. (the "Base Rent") plus 50% of the net profit from the Go -Kart -Track operation (the "Profit Sharing Rent"). See attached Exhibit B, incorporated herein by reference which Exhibit defines in general terms the revenue/expense items which will be considered in determining the Profit Sharing Rent. The expense items identified in the determination of the Profit Sharing Rent shall EXCLUDE any Base Rent Paid; and WHEREAS, there is an existing building on the Property which is need of demolition; and WHEREAS, the potential for ground contamination exists on the Property which potential cannot be determined until after the above referenced building demolition; and WHEREAS, depending if contamination is found and its severity, it may not be possible for the City to Lease Agreement the Property. NOW, THEREFORE, it is agreed by and between the parties hereto as follows: 1. Incorporation of Recitals. The recitals above are integral hereto and incorporated herein by this reference. 2. Lease. The City will Lease, subject to the terms and conditions defined below, to TK the Property for the period, June 1, 2011 (the Commencement Date") through October 31, 2014 (the "Termination Date") for the purpose of operating a Go -Kart Track conditioned upon the City's issuance of an IUP for operation on the Property. The Lease Term as used herein is the period June 1, 2011 through October 31, 2014 (the "Lease Term"). 3. Early Termination. Notwithstanding the 42 month Lease Term, the City, at its option, may terminate this Lease Agreement for any reason at any time during the Lease Term upon six (6) months prior written notice to TK. 4. Interim Use Permit. This Lease Agreement will be cancelled and void in the event the. City does not issue to TK an Interim Use Permit ("IUP") for the Go -Kart Track use in 2011. Notwithstanding this Lease Agreement, the parties acknowledge that the City is under no obligation to issue an IUP for the Property, and that independent of this Lease Agreement, the City will follow its City Code in considering the IUP. Notwithstanding the Lease Term the GO - Kart Track will not be permitted to operate if it does not then have a current IUP permitting its use and operation for every event scheduled. Tenant will be permitted to have up to a total number of events per year during the Lease Term as indicated in the IUP. In the event an IUP is issued, that IUP will be attached hereto as Exhibit C and its contents incorporated herein as if fully set forth at this point. 141437.2 2