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027-Mayfair Golf Course-Lease/Seminole Club IncU 7523 ALOMA AVENUE SUITE 202 WINTER PARK, FLORIDA 32792 TELEPHONE (407) 657 -6067 MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FLORIDA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS RECEIVED C.J L " JUN 0 4 1993 CITY OF SANFORD BOARD OF DIRECTORS SEMINOLE CLUB, INC. D /B /A MAYFAIR COUNTRY CLUB: WE HAVE EXAMINED THE SCHEDULE OF GROSS REVENUES (AS DEFINED IN THE LEASE AGREEMENT DATED MARCH 11, 1981, BETWEEN THE CITY OF SANFORD, FLORIDA, AS LESSOR, AND SEMINOLE CLUB, INC., AS LESSEE) OF SEMINOLE CLUB, INC., D /B /A MAYFAIR COUNTRY CLUB, FOR THE YEARS ENDED MARCH 31, 1993 AND 1992. OUR EXAMINATION WAS MADE IN ACCORDANCE WITH GENERALLY ACCEPTED AUDITING STANDARDS AND, ACCORDINGLY, INCLUDED SUCH TESTS OF THE ACCOUNTING RECORDS AND SUCH OTHER AUDITING PROCEDURES AS WE CONSIDERED NECESSARY IN THE CIRCUMSTANCES. IN OUR OPINION, THE SCHEDULE OF GROSS REVENUES REFERRED TO ABOVE, PRESENTS FAIRLY THE GROSS REVENUES OF SEMINOLE CLUB, INC., D /B /A MAYFAIR COUNTRY CLUB, FOR THE YEARS ENDED MARCH 31, 1993 AND 1992, ON THE BASIS SPECIFIED IN THE LEASE AGREEMENT REFERRED TO ABOVE. APRIL 27, 1993 Douglas Maniscalco CERTIFIED PUBLIC ACCOUNTANT I roa IQ SEMINOLE CLUB, INC. D /B /A/ MAYFAIR COUNTRY CLUB SCHEDULE OF GROSS REVENUES YEARS ENDED MARCH 31, 1993 AND 1992 (WITH AUDITORS' REPORT THEREON) SEMINOLE CLUB, INC. D /B /A MAYFAIR COUNTRY CLUB SCHEDULE OF GROSS REVENUES YEARS ENDED MARCH 31, 1993 AND 1992 $987,185 $987,353 THE ACCOMPANYING FOOTNOTE IS AN INTEGRAL PART OF THIS STATEMENT. 1993 1992 GREENS FEES $285,048 $244,129 CARTS 414,371 460,412 MERCHANDISE 43,324 45,283 DRIVING RANGE 4,696 14,520 FOOD & BEVERAGE 34,637 34,363 BEER & LIQUOR 66,877 63,339 TOURNAMENTS 38,413 35,540 MEMBERSHIP 35,720 38,714 OTHER 64,099 51,053 $987,185 $987,353 THE ACCOMPANYING FOOTNOTE IS AN INTEGRAL PART OF THIS STATEMENT. SEMINOLE CLUB, INC. D /B /A MAYFAIR COUNTRY CLUB NOTE TO FINANCIAL SCHEDULE NOTE (1) - REVENUE RECOGNITION: ALL REVENUES ON ACCOMPANYING FINANCIAL SCHEDULE, EXCEPT MEMBERSHIP REVENUE, ARE RECOGNIZED AS EARNED (ACCRUAL BASIS) ; MEMBERSHIP REVENUE IS RECOGNIZED AS RECEIVED (CASH BASIS). 1BB2z00 21e054142 STATE OF FLORIDA DEPARTMENT OF BUSINESS REGULATION DIVISION OF HOTELS AND RESTAURANTS TALLAHASSEE. FLORIDA 32399 -1012 ISSUED S(MINOLE CLU8S TP.tC TO: P "AYFAIP COUNTRY CLUB COUNTRY CLUB RD LAKE "64RY FL 32746 RAILED Sf?uNal� CLUBS IN17 TO: P (I KX 950789 LAKP. "AR FL -42715 -0789 w RECEIVED C)/'v JUN 0 41993 CITY OF SANFORD LICENSE. NUMBER 69 00043P -2 LODGIN CLASS I UNITS FOOD SER SEATS SERVICES 200 z. LICENSE FEE $ 1 80.00 HEP FEE $ 6.00 LATE RENEWAL $ TOTAL FEE PAID $ 1 86.00 04/01/94 LAWTON CHILES GOVERNOR lJ AUDIT CONTROL NO 0 I LS - ( 2- IN THE CIRCUIT COURT OF THE EIGHTEENTH JUDICIAL CIRCUIT SEMINOLE COUNTY, FLORIDA SEMINOLE CLUB, INC. Plaintiff, V. THE CITY OF SANFORD, Defendant. Case No: 98- 1113- CA -15 -B MEDIATED SETTLEMENT AGREEMENT At a mediation conference held on May 11, 2000 the parties agreed as follows: 1. Subject to and conditioned upon the approval of the City Commission of the City of Sanford, Florida on or before June 12, 2000: a. The parties shall amend the Effluent Disposal/Irrigation Agreement between them dated April 25, 1988, as follows: (1) City guarantees an average of 450,000 gallons per day at a minimum, measured over a lease year. (2) City guarantees no less than 2,250,000 gallons during any week (7 days). (3) Seminole Club, Inc. shall provide 72 hours advance notice, by fax to the Utilities Director, of intent to fertilize or apply other chemicals. (4) Seminole Club, Inc. may, at its expanse, audit the City's reclaimed water flow records to assure compliance. (5) In the event City fails to meet the above minimums it shall pay Seminole Club, Inc. $.25 per 1000 gallon for shortage at the end of the lease year. Similarly, Seminole Club, Inc. shall pay the City $.25 per 1000 gallons if it does not consume the minimums as determined at the end of the lease year. b. The parties shall amend their Lease Agreement dated March 11, 1981 deleting paragraph number 2 and replacing it with the following: Mediation Summary Seminole Club, Inc. v. The City of Sanford Case No. 98-1113-CA- 15-13 Page 1 Lessee covenants and agrees, during the remaining term hereof, to make rental payments to Lessor in the amount of 5% of gross revenue. The rent shall be due on the thirtieth day following the end of each lease year or following the termination or expiration of the term, as the case may be. Said annual percentage rent shall be payable at City Hall, without any prior demand therefor and without any deductions or setoff whatsoever, except as provided in the Effluent Agreement and /or Irrigation Maintenance Agreement. If assignment occurs before the end of the lease year, then the rent shall be due at the time of assignment from the current Lessee, prorated for the number of months since the beginning of the lease year to the time of assignment. Should the Lessor not be satisfied with the Auditor's annual statement described in paragraph 18 of the lease, the Lessor may at its own expense audit and check Lessee's books and records. Gross revenue shall be defined as all revenues derived from all sources except proceeds from the operation of the pro shop, as long as the pro shop is being operated by the pro as a reimbursement to the pro. Pro shop proceeds shall be limited to the sale of all merchandise, golfing equipment and proceeds from golf lessons, but shall specifically exclude golf rentals. Quarterly and annual accountings shall be rendered to the City of Sanford as provided in paragraphs 18 and 19 of this lease. c. The parties shall amend the Effluent Agreement to provide for the maintenance of the irrigation system by Seminole Club, Inc. for a term concurrent with the lease. Payment for said maintenance shall be the lessor of the amount paid for rent as above in paragraph 1(b), or $65,000 (adjusted annually beginning March 2001 according to the CPI) due 30 days after end of lease year. The responsibility of the City shall be limited to the following: 4) (A) City Responsibilities - The City shall continue to maintain the master pump station at the golf course and all related pump station components with the exception of the fertigation system (this shall include the jockey pump, pond level, etc). The City shall be responsible for maintaining all large diameter pipe lines (4 inch and larger). The City shall have the right to enter upon the premises at any time in order to inspect an monitor the irrigation system to insure that the Golf Course is operating and maintaining the system according to industry standards. Seminole Club, Inc. shall otherwise maintain the irrigation system in working condition. d. During the balance of the term of the lease Seminole Club, Inc. agrees to 1) provide a free golf clinic every Monday from June 1 to September 30 for any Sanford resident 17 years and under (including hot dog and cold drink lunch); and 2) provide any Sanford resident with unlimited play for any given day (including cart) for the Mediation Summary Seminole Club, Inc. v. The City of Sanford Case No. 98- 1113- CA -15 -13 Page 2 published daily rate from June 1 to September 30, except weekends and holidays. e. $25,000 of the money in the registry of the court shall be paid to the City. The balance, including interest shall be paid to Seminole Club, Inc. The expenses of the clerk's fee shall be paid fifty /fifty. f. Within the 120 days following approval of this agreement Seminole Club, Inc. shall spend on labor and materials, no less than $50,000 on repairs and/or replacements to the irrigation system. The City may, at its expense, audit said expenditures. g. The agreement shall be retroactive to March 12, 2000. It. The parties shall execute and deliver mutual general release, except for the amended agreements between them, in a form reasonably satisfactory to counsel. i. Upon payment in full and execution and delivery of the amendments and releases the parties shall, by joint stipulation dismiss this case and 00- 906 -15 -B in the 18 Circuit, each side to pay their own costs and fees. By: /s/ John Daniels Seminole Club, Inc. Counsel, John Bill Mediator, Jay Cohen CVcrr \cdr \Cities \Sanford \Mayfair\Mediated Settlement Agreement.wpd By: /s/ Tony VanDerwom The City of Sanford By: /s/ Mayor Larry Dale The City of Sanford /s/ Counsel, Catherine Reischmann Mediation Summary Seminole Club, Inc. v. The City of Sanford Case No. 98-1113-CA-1 5-B Page 3 so IN THE CIRCUIT COURT OF THE EIGHTEENTH JUDICIAL CIRCUIT SEMINOLE COUNTY, FLORIDA SEMINOLE CLUB, INC. Plaintiff, V. THE CITY OF SANFORD, Defendant. Case No: 98- 1113- CA -15 -B MEDIATED SETTLEMENT AGREEMENT At a mediation conference held on May 11, 2000 the parties agreed as follows: 1. Subject to and conditioned upon the approval of the City Commission of the City of Sanford, Florida on or before June 12, 2000: a. The parties shall amend the Effluent Disposal /Irrigation Agreement between them dated April 25, 1988, as follows: (1) City guarantees an average of 450,000 gallons per day at a minimum, measured over a lease year. (2) City guarantees no less than 2,250,000 gallons during any week (7 days). (3) Seminole Club, Inc. shall provide 72 hours advance notice, by fax to the Utilities Director, of intent to fertilize or apply other chemicals. (4) Seminole Club, Inc. may, at its expanse, audit the City's reclaimed water flow records to assure compliance. (5) In the event City fails to meet the above minimums it shall pay Seminole Club, Inc. $.25 per 1000 gallon for shortage at the end of the lease year. Similarly, Seminole Club, Inc. shall pay the City $.25 per 1000 gallons if it does not consume the minimums as determined at the end of the lease year. b. The parties shall amend their Lease Agreement dated March 11, 1981 deleting paragraph number 2 and replacing it with the following: Mediation Summary Seminole Club, Inc. v. The City of Sanford Case No. 98 -1 1 13- CA -15 -B Page I °^ 00^, Lessee covenants and agrees, during the remaining term hereof, to make rental payments to Lessor in the amount of 5% of gross revenue. The rent shall be due on the thirtieth day following the end of each lease year or following the termination or expiration of the term, as the case may be. Said annual percentage rent shall be payable at City Hall, without any prior demand therefor and without any deductions or setoff whatsoever, except as provided in the Effluent Agreement and /or Irrigation Maintenance Agreement. If assignment occurs before the end of the lease year, then the rent shall be due at the time of assignment from the current Lessee, prorated for the number of months since the beginning of the lease year to the time of assignment. Should the Lessor not be satisfied with the Auditor's annual statement described in paragraph 18 of the lease, the Lessor may at its own expense audit and check Lessee's books and records. Gross revenue shall be defined as all revenues derived from all sources except proceeds from the operation of the pro shop, as long as the pro shop is being operated by the pro as a reimbursement to the pro. Pro shop proceeds shall be limited to the sale of all merchandise, golfing equipment and proceeds from golf lessons, but shall specifically exclude golf rentals. Quarterly and annual accountings shall be rendered to the City of Sanford as provided in paragraphs 18 and 19 of this lease. c. The parties shall amend the Effluent Agreement to provide for the maintenance of the irrigation system by Seminole Club, Inc. for a tern concurrent with the lease. Payment for said maintenance shall be the lessor of the amount paid for rent as above in paragraph I(b), or $65,000 (adjusted annually beginning March 2001 according to the CPI) due 30 days after end of lease year. The responsibility of the City shall be limited to the following: 4) (A) City Responsibilities - The City shall continue to maintain the master pump station at the golf course and all related pump station components with the exception of the fertigation system (this shall include the jockey pump, pond level, etc). The City shall be responsible for maintaining all large diameter pipe lines (4 inch and larger). The City shall have the right to enter upon the premises at any time in order to inspect an monitor the irrigation system to insure that the Golf Course is operating and maintaining the system according to industry standards. Seminole Club, Inc. shall otherwise maintain the irrigation system in working condition. d. During the balance of the term of the lease Seminole Club. Inc. agrees to 1) provide a free golf clinic every Monday from June 1 to September 30 for any Sanford resident 17 years and under (including hot dog and cold drink lunch); and 2) provide any Sanford resident with unlimited play for any given day (including cart) for the Mediation Summary Seminole Club. Inc. v. The City of Sanford Case No. 98-11 13 -CA- 15 -13 Page 2 published daily rate from June 1 to September 30, except weekends and holidays. e. $25,000 of the money in the registry of the court shall be paid to the City. The balance, including interest shall be paid to Seminole Club, Inc. The expenses of the clerk's fee shall be paid fifty /fifty. f. Within the 120 days following approval of this agreement Seminole Club, Inc. shall spend on labor and materials, no less than $50,000 on repairs and/or replacements to the irrigation system. The City may, at its expense, audit said expenditures. g. The agreement shall be retroactive to March 12, 2000. h. The parties shall execute and deliver mutual general release, except for the amended agreements between them, in a form reasonably satisfactory to counsel. i. Upon payment in full and execution and delivery of the amendments and releases the parties shall, by joint stipulation dismiss this case and 00- 906 -15 -B in the 18 Circuit, each side to pay their own costs and fees. By: /s/ John Daniels Seminole Club, Inc. /s/ Counsel, John Bill /s/ Mediator, Jay Cohen 1: \krr \cdr\ Cities \Sanford \Mayfair \Mediated Settlement Agrcement.wpd By: /s/ Tony VanDerworp The City of Sanford By: /s/ Mayor Larry Date The City of Sanford Counsel, Catherine Reischm rm Mediation Summary Seminole Club, Inc. v. The City of Sanford Case No. 98- 1113- CA -15 -B Page 3 ., B LS -�-7 CITY OF SANFORD AND MAYFAIR GOLF COURSE AGREEMENT This Agreement is made and entered into this 3 f s r of ac - r-&A , 1997 by and between Seminole Club, Incorporated, a Florida Corporation, hereinafter know as Golf Course and City of Sanford, Florida a municipal corporation created by the laws of the State of Florida and existing in Seminole County, Florida, hereinafter referred to as City, shall include the successors, assigns, heirs and legal representatives of the respective parties when the context so requires or admits. WITNESSETH WHEREAS the City of Sanford is the legal owner of that property commonly designated as the Sanford Golf Course and Country Club/Mayfair Country Club; and WHEREAS the Sanford Golf Course and Country Club has been out leased to Seminole Club, Incorporated under a lease entered into on March 11, 1981, which contains a more specific legal description of the total property referred to as the Sanford Golf Course and Country Club; and WHEREAS Seminole Club Inc. and the City of Sanford entered into an agreement dated April 25, 1988, for the City to install an irrigation system and provide reclaimed water to the golf course. NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties hereto do agree as follows: 1) The foregoing recitals are true and correct 2) Purpose of the Agreement - The purpose of this AGREEMENT is to shift the responsibility and duties to operate, repair and maintain the J existing reclaimed water irrigation system from the CITY to the GOLF COURSE with compensation provided from the CITY to the GOLF COURSE to perform the required work. 3) Responsibilities of the Golf Course - The Golf Course shall assume responsibility for all maintenance, repair and operation of the irrigation system currently performed by City personnel. These duties shall include, but are not limited to, maintaining and repairing all sprinkler heads, controllers, small diameter pipe line (3 inch and smaller), wires, valves, weather station, computer, MAXI 5 system electrical system components, power source and other appurtenances. If the GOLF COURSE physically determines that a pipe line break occurred in a pipe line with a diameter of more than 4 inches, or if the Golf Course believes that a repair is outside the purview of this agreement, then the Golf Course shall contact the Utility Director or his designee in writing, and the Utility Director will investigate to determine if the repair will require City remediation due to being outside the scope of this agreement. If the City agrees that the repair requires City remediation, then the City will commence remediation activities. The GOLF COURSE shall utilize reclaimed water in accordance with previous agreements. The design rate of reclaimed water to be used at the GOLF COURSE is 0.63 MGD annual average. Nothing in this agreement shall force the GOLF COURSE to utilize any volume of reclaimed water that would be detrimental to the operation or turf of the course.The Golf Course shall provide a written monthly summary by the fifth (5th) of every month. The GOLF COURSE shall employ 2 J "OWN an appropriate number of professionals with experience in irrigation system operation and maintenance to fulfill the obligations of this agreement. The irrigation system shall be maintained to industry standards. 4) (A) City Responsibilities - The City shall continue to maintain the master pump station at the golf course and all related pump station components with the exception of the fertigation system (this shall include the jockey pump, pond level, etc). The City shall be responsible for maintaining all large diameter pipe lines (4 inch and larger). The City shall have the right to enter upon the premises at any time in order to inspect and monitor the irrigation system to insure that the Golf Course is operating and maintaining the system according to industry standards.. (B) City Contact Personal - Should the Golf Course determine a problem that is the City's responsibility, they may contact the Utility Department at: 330 -5640 8:30 a.m. - 5:00 p.m. 322 -4194 After Hours Emergency The City's contact person will be Paul Moore, Utility Director, or his designee. Any telephone contact shall be followed up in writing. 5) Payment - The total annual payment from the City to the Golf Course shall be $56,000. This payment shall include reimbursement for labor, materials, equipment and all other costs associated with the maintenance and operation of the reclaimed water irrigation system. The Golf Course shall be responsible for invoicing the City quarterly N I e W /0%, for payment of the reclaimed water irrigation system maintenance. Quarterly invoices shall be issued in January, April, July and October of each year. The City shall make payment to the Golf Course within thirty (30) days after receipt of the invoice. 6) Record Keeping - The Golf Course shall maintain records of daily work orders, progress reports, employees time, and materials purchased (invoices) involving the reclaimed water irrigation system. This information, along with system operational data, shall be open for inspection to City personnel at all times. A Quarterly report shall be performed by the Golf Course listing all expenses associated with this agreement. This report shall be furnished with each quarterly invoice. 7) Regulatory Requirements - Ae Golf Course agrees to operate the existing reclaimed irrigation system in conformance with all State and local regulations. 8) Term of Agreement - This agreement shall become effective October 1, 1997. This is a one year agreement that may be extended each additional year if agreed to by both parties. Either party may terminate this agreement by giving a minimum six (6) month notice. Additional agreement extensions may involve payment changes and/or other changes if both parties are in agreement. The Golf Course shall notify the City by March of each year if they intend to continue the contract and/or to request a contract price modification. 9) Notices: Proper Form - Any notice required or allowed to be delivered hereunder shall be in writing and be deemed to be delivered when (1) E d. f er0a la of such notice when deposited in United States mail, postage prepaid, certified mail, return receipt requested, addressed to a party at the address set forth opposite the party's name below, or at such other address as the party shall have specified by written notice to the other party delivered in accordance herewith: Seminole Club, Inc.: Mr. Jack Daniels Mayfair Country Club P. O. Box 3911 Lake Mary, F132746 Sanford: City Manager City of Sanford 300 North Park Avenue Sanford, F132771 9 10) Notices_ Default - Each of the parties hereto shall give the other party written notice of any defaults hereunder and shall allow the defaulting party thirty (30) days from the date the notice is sent to cure such defaults. 11) Indemnification - Golf Course shall provide proof of insurance naming both the Golf Course and the City as insured parties and protecting each against mutually responsible risks arising out of the reclaimed water irrigation system, including, but not limited to, public liability insurance with limits to be hereafter agreed upon by the parties in writing. GO 12) Successors and Assigns - The covenants and agreements set forth herein shall inure to the benefit of and be binding upon the parties hereto, their successors and assigns. IN WITNESS WHEREOF the undersigned parties have executed this agreement in a form and manner sufficient to bid them as of the date of joint execution. Attest: l et R, Dougherty, City dlerk State of Florida County of Seminole City of Sanford, A. Dale, Mayor Seminole Club, Inc. 1 =mq 5 �- -'�Vku R �S- S7 Sworn to (or a ffirmed) and subscribed before me this day of A.D. 1997, by ..berme -� s who is personally known to me OR produced identification. Type of identification produced >e�p Notary Public - State of Florida •'•'�^ " " ^2" A. C. PARRISH MY GOMMISEION # CC 435850 EXPIRES: Februaryry 28 ' .P(;,;4.; °• Bonded Thru Notary PebIIC Ond1wtem A R E E M E N T L- Coa.7 THIS Agreement made and entered into this �� t' day of 1 , 1996, by and between the CITY OF SANFORD, FLORIDA, a municipal corporation hereinafter referred to as "City ", and SEMINOLE CLUB, INC., a Florida corporation, hereinafter referred to as "Seminole Club ". WHEREAS, the CITY is fee simple title holder of, and SEMINOLE CLUB is Lessee of the property known as Mayfair Country Club, and WHEREAS, both property interests are effected by the condemnation taking of the Northerly taking of said property by County of Seminole and, WHEREAS, the CITY and SEMINOLE CLUB have separately negotiated their damage claims, and WHEREAS, each party has a mutual legal interest in the repair and restoration of the golf course, and WHEREAS, it is the underlying intent that SEMINOLE CLUB perform restoration and repairs and hold the CITY free and clear of any liens or encumberances, NOW THEREFORE, for good and valuable consideration and the mutual covenants contained herein, the parties agree as follows: 1. SEPARATE IDENTITY OF CLAIMS Each party acknowledges that, subject to this specific Agreement, the CITY and SEMINOLE CLUB have separate and distinct claims in the condemnation action and taking by Seminole County above - referenced. Each party has separately negotiated its claim or interest with the County. SEMINOLE CLUB acknowledges in favor of the CITY that the CITY has not participated in SEMINOLE CLUB's process of settlement nor does the CITY warrant or guarantee the sufficiency of the loss payable to SEMINOLE CLUB. The CITY will not be obligated to supple- ment any funds payable to SEMINOLE CLUB for repair and restoration of Mayfair Country Club. SEMINOLE CLUB shall make no claim against the separate award in favor of the CITY. Except to the extent of the restrictions of this Agreement, the CITY acknowledges in favor of SEMINOLE CLUB that it has no claims to the loss payment made to SEMINOLE CLUB by the County. ,,.k All loss of business or loss of revenue claims made by SEMINOLE CLUB shall remain the separate property of SEMINOLE CLUB. SEMINOLE CLUB shall segregate the loss payment portion attributable to repair and restoration of the golf course and shall manage the funds subject to this Agreement. The CITY shall not supplement this loss claim nor shall the CITY make any claim to any excess should any remain after restoration of the golf course. 2. REPAIR AND RESTORATION OBLIGATION Pursuant to the obligations of its Lease Agreement, dated on or about March 11, 1981, SEMINOLE CLUB shall conduct and perform all reconstruction efforts to substantially reconstruct and restore to present quality condition the par 72 course known as Mayfair Country Club. 3. FUNDS MANAGEMENT SEMINOLE CLUB shall deposit all of its loss payable allocated to reconstruction in the amount of $325,000.00 (Three Hundred Twenty -Five Thousand Dollars) as follows: a) $292,500 shall be deposited with First Union National Bank in a separate fund as an operating account. SEMINOLE CLUB shall be signatory on the account. A 10% (ten percent) retainage in the amount of $32,500.00 shall be deposited in a separate account at First Union National Bank. Said funds shall be accessable only by the joint signatures of SEMINOLE CLUB and the CITY and each such party shall be entitled to all reports and information access. b) Each such account shall be interest bearing and said interest shall accrue to the favor of SEMINOLE CLUB. c) Distributions from the operational account, until the property known as Mayfair Country Club is substantially repaired or restored, shall be limited to expenses reasonably necessary and related to the repair and restoration of the golf course. d) Th.e retainage monies shall be payable to SEMINOLE CLUB upon substantial completion of the repair and restoration which shall be deemed to have occurred when the restored portions of the course are available for play in substantially similar condition as the course exists at the date of this Agreement. 4. LIEN WAIVER PROVISIONS SEMINOLE CLUB, at the outset of its repair and restoration efforts, shall provide to the CITY an Owners /Contractors Affidavit in form sufficient to the CITY detailing all contractors, sub- contract- ors and materialmen known or anticipated at the outset of construction. This Affidavit shall be supplemented from time to time as needed by SEMINOLE CLUB prior to hiring any new contractors, sub - contractors or ordering from new materialmen. Supplemental Affidavits may be faxed to the CITY followed by a hard copy within five (5) business days. a) Partial Lien Waivers Seminole Club shall obtain Partial Lien Waivers with each payment made providing for a waive of all legal and equitable lien rights which could accrue for allm labor performed and material furnished through the date of job pew formance allocated to the payment. b) Final Lien Waivers Any final payment made to any 0 contractor, sub- contractor or materialmen shall be conditioned upon a complete and final Lien Waiver of all legal and equitable R CW rights for the entire job performance at Mayfair Country Club. 4 W Said Lien Waivers shall be obtained and maintained on file U U' at the offices of SEMINOLE CLUB on the premises of Mayfair County Club. Said documents shall be available to the CITY for inspecti m rA at anytime. � �+ 5. LEASE AGREEMENT ACKNOWLEDGMENT SEMINOLE CLUB acknowledges that this Agreement directly relates to its Lease Agreement with the CITY dated on or about March 11, 1981 and specifically is in fulfillment of its obligations in paragraph 3, Conditions, which provides that the Lessee shall during the term of this Lease maintain and operate the golf course. 6. SUFFICIENCY OF CLAIM SEMINOLE CLUB acknowledges that it has agreed to and accepts the payment of $325,000.00 (Three Hundred Twenty Five Thousand Dollars) from Seminole County as full payment for any property acquisition or loss claims. This compensation fully satisfies any claim to any loss or property reduction under the Lease Agreement with the CITY dated March 11, 1981. 7. SEMINOLE CLUB does hereby indemnify and agree to hold the CITY harmless for any and all claims, demands or causes of action which could arise or be made in connection with all construction and renovation activities contemplated under this Contract, including all direct or indirect claims of any contractors, subcontractor, material - men or laborer. S. In the event of any litigation arising under this Contract the prevailing party shall be entitled to an award of a reasonable attorneys fee. 9. Venue for any claim or cause of action arising out of this Contract shall be Seminole County, Florida. IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. SEMINOLE CLUB, INC CITY OF SANFORD, FLORIDA �� ���� B y �1aG[�e�— Ea- ce Presi t &ETiX- B:- �MIT+i,- -Mayor WHITEY ECKSTEIN, ACTING MAYOR Attested to by: Depu i , Clerk erk i i � ✓VV•♦ I h1UL. I 1 746 • 1 , • 5EMINOLE CO. FL. L E A S E THIS INDENTURE OF LEASE, made and entered into in duplicate this 11th day of March, 1981, by and between CITY OF SANFORD, FLORIDA, a municipal corporation created by the laws of the State of Florida and existing in Seminole County, Florida, hereinafter referred to as Lessor, and Seminole Club, Inc., a' Florida Corporation , hereinafter referred to as Lessee, whether one or more, which expressions, Lessor and Lessee, shall include the successors, assigns, heirs and legal representatives of the repsective parties when the context so requires or admits, W I T N P•. S S E T H: 1. PREMISES AND TERM The Lessor has demised, leased and let, and by these h h N M co h x4 N o r+ o 'C� v m N y 0 t4-4 u O C •, CO U W rn o O 0 v CV S7 CV (J presents does demise, lease and let unto the Lessee the following described real property and buildings thereon situate in Seminole County, Florida, at what is commonly designated the Sanford Golf Course and Country Club, a more particular description of said property being,.to -wit: Block 6 of the Bel -Isle Section of Loch Arbor as recorded in Plat Book 7, Page 72, of the Public Records of Seminole County, Florida r1.r. Begin 30 chains south of the northeast corner of Section 4, Township 20 South, Range 30 East, run south 12.83 chains, thence west 7.17 chains, thence north 45 degrees west 4 chains, thence west 20.04 chains, thence south 10 chains, thence west 5 chains, thence south 3 chains, thence west 5 chains, thence north 53 chains, thence east 20 chains, thence south 20 chains, thence east 10 chains, thence south 10 chains, thence east 10 chains, to the point of begin ning, containing 123 acres, more or less, (LESS: Beginning at a point on the East Line of Section 4, Township 20 South, Range 30 East, Seminole County, Florida, 1951 feet.South of the Northeast corner of said Section 4, thence run South along rf> the East Line of said section 106.6 feet, run thence West 98.9 feet, run thence s " North 71 degrees and 14 minutes West 385.5 feet, run thence South 87 degrees 51 minu , tes,and 15 seconds East 464.10 feet to the point Sf beginning). -1- 880 r 1:1 AL RECORDS 13 46 f�4 AND wt111110 CE Co. F, . Begin 53 chains South of NW corner of East 1/2 of Section 4, Township 20 South, Range 30 East, run South 350.3 feet, thence East 200 feet, thence North 56 degrees 49 -1/2 minutes East 222.05 feet, thence North 14 degrees 40 -1/2 minutes East 440.92 feet, thence West 167:1 feet, thence South 198 feet, thence West 330 feet to point of beginning ;. AND Out Lot No. 1, less the North 230 feet, LOCH ARBOR, Country Club Entrance Section, Plat Book 5, Page 72, of the Public Records of Seminole County, Florida, TO HAVE AND TO HOLD the above described real property and buildings, with all the rights, privileges and appurtenances thereunto belonging unto the Lessee for a term of sixty -seven years (67) and seven months (7), beginning on the 11th day of March, 1981 and ending on the 10th day of October, 2048, unless the said term shall be sooner terminated as hereinafter set forth. 2. RENTALS Lessee covenants and agrees during the remaining term hereof, to spend annually on capital improvements, in lieu of rent, first to the golf course itself until such time as the layout and condition of said course are satisfactory to Lessor, and then to building improvement and additional struc.ures, the following sums: five percent (5 %) of all gross revenue. Gross revenue shall be defined as all revenues derived from all sources except proceeds from the operation of the pro shop, as long as the pro shop is being operated by the pro as reimbursement to the pro. Pro shop proceeds shall include the sale of all mer- chandise, golfing equipment and proceeds from golf lessons but shall specifically exclude cart rentals. Quarterly and annual accountings shall be rendered to the City of Sanford as pro- vided in paragraphs 18 and 19 of this lease. In the event any of the aforesaid sums, on an annual basis, are not spent in lieu of rent on such improvements, the same shall be paid as rent to the City. Capital improvements shall be defined as those types 0 -2- i of improvements which become permanent in nature as compared to those improvements which are required only to maintain repair and condition; provided, however, the expenditures required herein for re- working and renovation of tees and greens shall be considered as capital improvements. It is further agreed that the above described sums may be carried over from year to year, for example: if Lessee expends during one year the sum of $25,000.00 in permanent improvements and if under the above described gross revenue formula $5,000.00 would be required during such year, the remaining $20,000.00 would be carried forward to subsequent years and credited toward future required expenditures under the above described formula. 3. CONDITIONS This lease is made subject to the following terms, conditions, covenants and restrictions hereby agreed upon by and between the Lessor and the Lessee, to -wit: (1) Lessee agrees during the term of this lease to maintain and operate the golf course on the above described property as an eighteen hole golf .course, aggregating 6,000 yards in length, with fairways of standard width, and clubhouse and locker rooms as a country club. The annual maintenance Co requirements for the golf course shall include as minimum standards _ proper fertilization, watering, mowing and weed kill- ing programs. The proposed annual maintenance program shall firs cc, i be submitted to the City Commission on an annual basis for approval, rejection or modification. Once an annual maintenance program is approved by the City, it shall be implemented by the Lessee within the following twelve months. (2) The Lessee has a.,nspected the property hereby leased and let and accepts the same in its condition as and of the 11th day of March, A.D., 1981. (3) Taxes The Lessee shall, in addition to the rentals hereby reserved, pay or cause to be paid before they become delinquent, all taxes, assessments and charges for water, 0 -3-- . .... sewage disposal, gas, electricity, and any other utilities and any and all other impositions, general or special, ordinary or extraordinary, of every kind and nature assessed, levied or im- posed by any taxing authority upon said demised real property, buildings or personal property, or any part thereof, or upon any building or buildings from time to time hereafter erected on said real property by the Lessee or upon any personal property hereby leased and let, or which may be levied, assessed, or im- posed upon the interest of the Lessor in or under this lease or upon its reversionary estate in said premises, said obligations on the part of the Lessee to continue throughout the term of this lease. The Lessee shall likewise pay before they become delinquent any and all taxes that may be levied by any taxing authority upon this lease or leasehold interest. The Lessee shall deliver to the Lessor within (30) thirty days after the payment of any taxes, assessments or other rn impositions, the receipts or duplicate copies thereof showing S — payment thereof. Should the Lessee.for any reason fail to pay w u such taxes, assessments and impositions before they become de- c.o - =' liquent and when and where same shall become due, then the tz, Lessor shall have the right at its option and without waiving its right to declare a forfeiture of this lease by reason of such default, to pay the same together with such penalties as may be accrued, and charge the same against the Lessee, where- upon the same, together with all penalties and interest, shall forthwith become due and payable by the Lessee to the Lessor, with interest thereon. (4) Assessments for Public Improvements The Lessee shall pay, before they become deliquent, any and all assessments which may be made by the Lessor or its successor or successors, or by any other authorized taxing body, for any public improvements affecting the real property hereby leased and let, and which are ordinarily assessable against real property. I, -4- w e4m�' (5) Use and Care of Premises The Lessee shall o C, 0 Cam. not permit or suffer the commission of waste of the property hereby leased and let, nor said premises or the buildings there on, to be used for any vicious, illegal or immoral purposes or for any purpose that will substantially increase the rate of insurance thereon, or for any purpose in violation of State Laws, or municipal ordinances, rules or regulations now or there- after in force and applicable thereto; and the Lessee shall con- form its operations and uses of the leased property with all laws, ordinances, rules and regulations of the United States of America, the State of Florida, and the Lessor and of all public authorities, boards or officers relating to said premises, and relating to health and safety and shall keep and maintain said premises and buildings and every part thereof and all sidewalks and areas adjoining the same in a clean, safe, secure and whole- some condition. (6) Maintenance of Buildings The Lessee shall �a m J l� 0 c� maintain at its own expense all of the aforesaid buildings and additions thereto and fixtures therein, and at its own expense keep the same in a state of sound condition and repair. This provision shall likewise apply to any building or buildings that may be constructed on the leased premises. (7) New Buildings to Become Property of Lessor Any building or buildings erected on the leased premises and all additions thereto and fixtures thereon shall be and become a part of the land upon which erected, and shall not be removed by the Lessee before or at the termination of this lease, by lapse of time or otherwise, except as provided in Paragraph (8). (8) Removal of Buildings None of the buildings hereby leased and let or replacement or replacements thereof or additional building or buildings shall be removed by the Lessee unless by reason of age the same shall become incapable of re- pair; in which event the Lessee may, with the written approval of Lessor, remove such building or buildings so incapable of being M -5- c� A a co C' -� repaired. In the event of the removal of any building or build- ings by the Lessee the Lessee may erect at its own expense in place thereof another building or buildings, in value equal to or greater than the building or buildings so removed. The plans and specifications for any building or buildings proposed to be erected by the Lessee shall be subject to the approval of the Lessor. The Lessee shall, before commencing construction of any new building, furnish and deliver to the Lessor a good and sufficient bond of indemnity or other security acceptable to the Lessor, to secure and safeguard said premises and the Lessor against any and all liens, claims, levies, attachments, demands, costs, expenses, loss or damage in relation thereto, and the work and labor done thereon and the materials furnished there- for and against all claims and demands or contractors, subcon- tractors, laborers, materialmen and all other persons in respect thereto. The Lessee shall, in no event, have power, authority or right hereunder to incur and create any obligation in such respect to said premises, buildings, or improvements which shall create or constitute a lien or claim in favor of Lessee or a third party against the right, title and interest of the Lessor in or to said premises, buildings or improvements which now or hereafter be erected thereon and notice of hereby given to all persons furnishing labor or materials therefor that any liens therefor shall attach only to the leasehold interest hereunder and be subordinate to all of the rights, title and interest of the Lessor in and to said premises, buildings and improvements under this lease. The materials of any building removed hereunder shall be the property of the Lessor. (91 Indemnity for Lessor and Others The Lessee shall keep the Lessor harmless and indemnified at all times against any loss, cost, damage or expense by reason of any accident, loss, casualty or damage to person or property sub stained by any of Lessee's employees, patrons, guests or anyone else while on or occupying any of the leased premises and while N using or operating any of the leased personal property, and to that end shall maintain at all times, in full force and effect, insurance against liability for damage sustained by negligence /-' of the Lessee, their agents, servants, employees, or sub - tenants or by reason of any accident, loss, casualty or damage resulting to any person or property through any use, misuse or non -use of said premises or personal property or by reason of any act or thing done or undone on, in or about said premises, or in relation thereto. (10) Alterations, Fixtures, Etc The Lessee shall 0 c o n- 8 K U W � O CJ 2t N L(7 ti C� �7 J of U' 4J �7 'Iw N have the right, at their own expense, to make alterations, attach fixtures and erect partitions and signs and upon the buildings hereby leased or any replacements or additional buildings on the premises, subject to any and all building restrictions now or hereafter imposed by the City of Sanford and to inspection by the Lessor or its duly constituted representatives; but Lessee, if required by the Lessor, shall upon the termination of this lease, restore said premises to a condition equal to that existing at the time of the Lessee's entering upon the same under this lease, reasonable and ordinary wear.and tear and damage by war, fire, flood, windstorm or any of the other elements or by circumstances over which the Lessee has no control, excepted, except,however, that if the Lessor requires such restoration, the Lessee shall be given written notice by the Lessor at least thrity (30) days be- fore the termination of this lease. (11) Inspection of Property by Lessor The Lessor shall have the right to enter upon all of the real property and buildings hereby leased and let, for the purpose of inspect- ing the property leased and let, to determine whether the terms and conditions of this lease are being observed and carried out by the Lessee, and for any other purpose necessary or proper.for the reasonable protection of Lessor's interest in said property. (12) Reservations for Utility Purposes The Lessor hereby makes reservations of so much of the property N -7- W , LrD q d. fti G 4N CC s w CO CD J LL Ci V w hereby leased and let as may be reasonably necessary for any and all kinds of utility servies and purposes, with the right to enter upon any of said property for the installation, main- tenance, repair, removal or transfer thereof, either to existing buildings and installations of any hereafter placed upon any part of the property herein demised., (13) Damage by Fire or Elements Lessor shall carry such insurance against fire and /or windstorm covering the buildings now or hereafter existing on said demised property as Lessor shall consider necessary, provided however, that Lessee, shall reimburse in full to Lessor any premium or charge paid for such,insurance not less than three (3) months after Lessor shall have paid such premium or charge. There shall be no liability on Lessor for restoration of any buildings on premises hereby demised which are damaged or destroyed by causes not covered by insurance carried by Lessor and the Lessor's liability for damage or destruction insured against shall extend under the conditions hereafter set forth only to the amount of the proceeds of any insurance paid to Lessor on policies covering said pro- perty. Any insurance proceeds paid to Lessor by reason of loss as aforesaid shall be applied to restoration of the b or I� buildings damaged or destroyed, provided that Lessee shall pay any additional amount required to effect such restoration to. substantially equal condition to that prior to such damage or destruction. Should Lessor and Lessee agree not to restore any such building or should restoration not be substantially begun within six months after the damage or destruction shall occur,. the Lessee may retain all insurance proceeds received by it to be expended for any municipal purpose. (14) Assignment of Lease, Subletting The Lessee shall not assign this lease nor sublet the premises or any part thereof without the written consent of the Lessor. Lessee shall exhibit this lease for examination by any prospective subtenant before requesting such consent to sublease, and the rights of any _g_ 1W T kWW subtenants permitted by Lessor shall always be subject to and subordinate to the rights, title and interst of the Lessor here- under, and sub subletting shall not relieve the Lessor from its responsibility to carry out the terms of this lease, and the Lessor shall not be required to look to any sub - leasee or sub- tenant for the performance of any of the covenants required to be performed by the Lessee hereunder; and the Lessee shall con- tinue to be bound by all of the terms, agreements and covenants and conditions hereof. (15) Service of Notices Whenever it shall become necessary or desirable to serve notice upon one party by the V other, said notice shall be in writing or printing and may be sent by registered mail with full postage prepaid to the last known post office address of the then Lessor or Lessee who is such of record; and notice to the then Lessor or Lessee of re- cord shall, for all purposes, be deemed notice to eabh and every- one of their predecessors in interest respectively, and to all persons holding under or through them. (16) Five Year Improvement Program Lessee coven- ants and agrees that during five years immediately succeeding the execution of this instrument Lessee will make the following G C. w 2 -�Y U c, c� ux co m 0 U U7 V) improvements to the golf course: I. STAFFING A. Pro - Manager -Golf Director B. Assistant Pro - Manager C. Course Superintendent D. Head Professional FIVE YEAR PROGRAM FOR MAYFAIR COUNTRY CLUB 1. Pro -Staff 2. Teaching Staff 3. Carts 4. Starters & Rangers E. Club House - Assistant Pro- Manager II. COURSE MAINTENANCE A. Immediate adherence to a complete, consistent and sound maintenance program. 1. Mowing Schedule 2. Watering schedule, according to need mr 3. Fertilizing schedule according to soil analysis 4. Chemical program a. Insecticide b. Fungicide c. Herbicide d. Nematicide B. Special Programs - Golf Course 1. Strong herbicide program and resprigging of fairways 10 -18 2. Construction of proper paths Asphalt 8' wide with rock base 3. Rebuilding of closed bunkers that were on original design 4. Re- dragging and beautifying existing lakes 5. Tree planting program to outline fairways, #10, #11, 412, #13 6. Converting existing range into first class practice and teaching facility 7. Modernize all equipment and sprinkler syst 8. Improve security by fencing III. CLUBHOUSE AND PRO SHOP: A. Special Programs a � o _ U Q U 4:J W C-rJ 1. Renovating clubhouse 2. Renovating pro shop and cart barns 3. Beautifying grounds around clubhouse and pro shop 4. Renovating locker room 5. Landscaping existing entrance to clubhouse and parking lot 6. Renovating swimming pool and pool house IV. GOLF ACTIVITIES: A. Hire outstanding head pro, pro shop 'staff and teaching staff B. Redecorate and restock pro shop to compete with better pro shops in the area C. Initiate comprehensive teaching program 1. Free Clinics 2. Free Jr. Program 3. Private lessons 4. T.V. lessons 5. International golf school D. Organized Golf Club 1.. Men's golf association and tournament schedule 2. Women's golf association -and tournament schedule 3. Twi -lite golf 4. Pro -am schedule 5. Pro tournaments a. Winter open . b. Summer open c. Space coast tour (4) 6. Area Junior Tournament 7. Summer Junior training program M V. EXPAND FOOD AND BEVERAGE PROGRAM COST OF PLAN OVER AND ABOVE NORMAL EXPENSES Chemical Program Renovation of Fairways, trees, Bunkers Cart Path Construction Lake Program Irrigation Upgrade Range Facilities Clubhbuse and Building Parking Lot and Landscaping Fencing TOTAL Yearly Average for five Years $ 50,000.00 $ 50,000.00 $ 55,000.00 $ 20,000.00 $ 30,000.00 $ 20,000.00 $150,000.00 $ 50,000.00 $ 30,000.00 $455,000.00 91,000.00 Lessee further covenants and agrees to expend a o G 0 w ° rt C+ co I\ C-0 c;, J Li O c.� «t .t c:. average of $91,000.00 annually during the five years immediately succeeding the execution of this lease for the programs outlined in the preceding paragraph. It is expressly understood and agreed between the parties that this sum is in addition to the maintenance program identified in paragraph 3 (1) or any other expenditures provided for elsewhere in this lease. It is agreed between the parties that any expenditures herein shall be cumula- tive and any amount spent in excess of the $91,000.00 minimum shall be credited toward expenditures in subsequent years. It is further agreed that sums spend for labor shall be considered in computing the expenditures described above. The renovation of the back nine holes shall be considered a priority item by the parties and shall be completed by October 1, 1981. (17) Statements as to Lessee's Receipts Lessee shall furnish to Lessor on or before thirty (30) days after the end of each quarter during the entire term of this lease, a statement of all gross revenues of the business opera- tions conducted by :Lessee on the leased premises during such preceding months, which statement shall show the actual amount of gross revenue as herein defined and any other receipts from sales or services for the preceding quarter and which shall be broken down so as to show the gross revenues of each catagory . of operations, and shall be sworn to by an officer of Lessee who of his own knowledgd knows the correctness of each statement. W (18) Auditor's Annual Certificate Lessee shall furnish Lessor within sixty (60) days after the expiration of each lease year during the term of the lease, a complete state- ment of all gross revenues as herein defined from sales, services rendered, and all other business operations conducted on the leased premises during the preceding lease year. Said statement shall show all of the gross revenues of each catagory of opera- tions, and shall be certified as acurate by a licensed, practic- ing Certified Public Accountant who does not hold any ownership interest in the operation of said business. (19) Liability Insurance Supplementing the insurance �u 0 W C KC ti Lr) co indemnification provision of this lease, Lessee agrees to carry a policy of public liability and property damage insurance in which the limits of liability shall not be less that $500,000.00 per person, and $1,000,000.00 for each accident or occurance for bodily injury, and $50 for property damage. Said policy shall name Lessor as co- insured and shall be insured by such companies as are first approved and acceptable to Lessor. (20) Restrictions Against Removal of Trees or Sublettinq. During the remaining term of said lease Lessee - is prohibited, without the written consent of Lessor, from cutting or removing any timber or trees, except dead trees, upon the demised premises, and is further prohibited from subleasing any of the areas not now presently occupied by fairways, greens, or building struc- tures. (21) Use By Local Residents The Lessee shall at all times permit the use thereof by local residents and their guests on a membership basis and daily green fee basis comparable to average membership fees and daily green fees charged by public and private golf courses in the surrounding -12- territory of a radius of fifty miles. (22) Contingencies Constituting a Breach Hereof LL; c7 G a. C Cl LLJ U c In the event any levy, lien or attachment shall be made against the interest of the Lessee or if any other proceedings at law or in equity be instituted to subject said premises or any part thereof to the payment of any claim, debt, liability or damages of or against the Lessee, or the Lessee shall become insolvent or bankrupt, or if proceedings for the receivership or bankruptcy shall be instituted against them, or if they shall make an'.assign- ment for the benefit of creditors, or if they in any manner seek, permit, or suffer the fee or the leasehold interest hereby created to be transferred, or encumbered by.operation of law, or other- wise jeopardized, hypothecated, or encumbered, except for such transfers as may be authorized under Section 2 of this lease, then and in any such event, or in the event of the same or similar legal or equitable consequence or effect, such event shall be deemed to constitute a breach of this lease, at the option of the Lessor so as to terminate all rights, privileges, and interest of Lessee herein and hereunder, unless however, the Lessee shall, without the necessity of demand or notice from the Lessor obtain and procure within thirty (30) days after the same shall have been done, instituted, filed, or made or asserted, a discharge, release, cancellation or withdrawal thereof, or within like period bond the same off from said premises and leasehold interest and relieve said leasehold interest and the Lessor's interest herein and in said premises therefrom. The failure of the Lessee to pay any of the rentals, taxes, or any of the other sums in the manner and time hereinbefore provided, and the continuance of such failure for a period of thirty (30) days, or to keep, fulfill or perform any of the other terms, provisions, agree- ments, covenants and conditions herein contained, on their part to be kept, fulfilled and performed, and the continuance of such failure for a period of sixty (6.0) days after notice in writing from the Lessor to Lessee of such failure, shall likewise con- IM -13- _ 3 stitute a breach of this lease, at the option of the Lessor, so as to terminate all rights, privileges and interest of the Lessor, herein and hereunder. In the event of a breach of this lease, the Lessee shall and will pay to the Lessor all costs, reasonable attorney's fees, and other expenses which may be incurred by the Lessor in enforcing their rights hereunder and also such other actual damages as the Lessor may actually sustain by reason of said breach or default. Waiver of one or more defaults by the Lessee hereunder shall not constitute a waiver of any other subsequent defaults. IN WITNESS WHEREOF, the Lessor has caused these presents to be executed in its name by its Mayor, and attested and its corporate seal hereuntq affixed by its City Clerk, and the Lessee have hereunto affixed their hands and seals, the day and year first above written. Signed, Sealed and Delivered in the ` prVp5ce of.: ? 'A. ssor* ; f e 63 CITY ANFORD, FLORIDA s � yor Vt -� " �S Lessor / SEMINOLE CLUB, by: Jo . ' Da Less 'e y � o G_ O cC J C.J W O C; h — Lfl ix -14- U- 05 U u s,, t =es -"nt i1 .i •, a � i s MEMORANDUM TO: City Clerk FROM: Director of Engineering and Planning SUBJECT: Golf Course Effluent Disposal Irrigation Agreement DATE: April 27, 1988 Henry: The attached original Irrigation Agreement dated April 25, 1988 is forwarded for safekeeping. It is recommended that this agreement be filed together with the Golf Course lease. Attachment A to this agreement will be forwarded by separate memorandum. WAS:mch rW rWA; °4/12/88 EFFLUENT DISPOSAL /IRRIGATION AGREEMENT GA THIS AGREEMENT is made and entered into this of Y , 1988 by and between Seminole Club, Incorporated, a Florida corporation, hereinafter known as Permittor and City of Sanford, Florida, a municipal corporation created by the laws of the State of Florida and existing in Seminole County, Florida, hereinafter referred to as Permittee, shall include the successors, assigns, heirs and legal representatives of the respective parties when the context so requires or admits. W I T N E S S E T H WHEREAS the City of Sanford is the legal owner of that property commonly designated as the Sanford Golf Course and Country Club /Mayfair Country Club; and WHEREAS the Sanford Golf Couse and Country Club has been outleased to Seminole Club, Incorporated under a lease entered into on March 11, 1981, which contains a more specific legal description of the total property referred to as the Sanford Golf Course and Country Club; and WHEREAS this lease contains a provision which is quoted as follows: "(12) Reservations for Utility Purposes The lessor hereby makes reservations of so much of the property hereby leased and let as may be reasonably necessary for any and all kinds of uti- lity services and purposes, with the right to enter upon any of the said property for the installation, maintenarMe, repair, removal or transfer thereof, either to existing building and installations of any hereafter placed upon any part of the property herein demised." WHEREAS it is recognized that reclaimed water irrigation/ disposal is a "utility purpose ", the Permittee desires, under this lease provision, to utilize the Golf Course open area for disposal of "public access quality" treated effluent, hereinafter referred to as effluent, which disposal will partially meet the needs of Permittor for a supply of water, containing nutrients, for irrigation; and WHEREAS the parties desire to reduce to writing their agreement whereby the Permittee will utilize the open area of the Golf Course for disposal of treated effluent by spray irrigation and will provide to Permittor the benefits of such spray irrigation; and WHEREAS the design for the complete irrigation system for the Golf Course is now complete, with an average application rate projected of 0.6308 million gallons per day, said system to be installed and operational by approximately September, 1989; NOW, THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties hereto do agree as follows: 1. The foregoing recitals are true and correct. 2. Purpose of the System The purpose of the system and intent of this Agreement are to provide adequate Golf Course irrigation to Golf Course property as shown in the attached - 2 - drawings(s), and to properly dispose of wastewater effluent at no direct cost to the Permittor for the effluent utilized. The effluent must meet Florida Department of Environmental Regulation's "public access quality ", as stated below, and other applicable governmental permit and pollution requirements. The Permittee shall be responsible by proper plant operation and onsite testing as necessary to insure that all such criteria are met. Preapplication treatment beyond the minimum is required where unrestricted public access is involved, such as for most park and golf course applica- tions. The effluent must contain not more than 5 mg /l suspended solids on an annual basis and no detectable fecal coliforms at any time. This requirement is intended to minimize public health con- cerns over pathogens, including virus. 3. Present Irrigation System The present irrigation system of the Golf Course consists of one well, complete with pump and distribution system. Water from this well is considered fully suitable for irrigation purposes and when tested in February, 1987 had a PH of 7.3. Water from this well is pumped through a series of underground mains and laterals to underground pop -up type sprinklers irrigating tees, greens, and fairways. This system is sometimes used for application of liquid chemicals. Roughs and other areas are not generally irrigated. The maintenance and operation of this system is totally the responsibility of the Permittor. This present system is to continue to be operated for Golf Course - 3 - »1 irrigation during construction of the new effluent irrigation system, and until the new effluent irrigation system is placed in full operation. After the effluent irrigation system is in full operation, present system will be utilized to provide regular irriga- tion for those areas shown on Appendix A where effluent irrigation may not be utilized. (These include areas around City potable water wells along Rantoul Lane and areas around the swimming pool and food service operations of the Club House.) Permittee shall be responsi- ble for repair within 24 hours of any damage to the present irriga- tion system caused by installation of the new effluent irrigation system. Permittor shall be responsible for other regular operation and maintenance expenses for the present system during and after the installation of the effluent system and prior to its commencement of operation, which will occur in approximately September 1989. If the present irrigation pump /well is used to supply make up water to the effluent storage pond in any case of nonavailability of effluent, costs of pumping from this well will be prorated between the parties based on time of use for effluent pond make up. 4. Effluent Irrigation System Permittee has completed design of an effluent irrigation system for the Golf Course for "total irrigation" of all available areas, including greens, tees, fairways, roughs, and driving range except as provided for in Section 17. Documents have been submitted to Department of Environmental Regu- lation for review and -- permitting for construction. Construction plans - 4 - G2 la and specifications will be submitted to Permittor for review and com- ment. Permittor will complete his review and provide objective com- ments to Permittee regarding the overall design of the effluent irri- gation system within a reasonable time, approximately 30 -days. Approval /concurrence will not be unreasonably withheld. Permittee shall make all reasonable effort to respond to comments and concerns of Permittor. Any remaining disputes will be resolved by a committee consisting of the Permittor's representative, the City Engineer, and a third party selected by these two members. 5. Construction of Irrigation System. Permittee will construct at his expense, pipelines to convey treated effluent from Wastewater Treatment Plant to the .Golf Course and shall construct certain land spreading /Golf Course irrigation improvements (system) as generally described in Attachment A, titled Contract B, Irriga- tion of Golf Course at Mayfair Country Club Construction shall be in accordance with construction plans and specifications to be pre- pared by Permittee's Consulting Engineers, Conklin, Porter & Holmes Engineers, Inc. The system shall include a lined effleunt storage pond, effluent pump station and meter, irrigation lines, valves, heads, satellite controllers, master controllers, monitoring wells and appurtenances to all of the above. Permittee /construction con- tractor will be responsible for repairs of any damage done to present irrigation system, in order to assure its continued capability to be utilized. Permittee /construction contractor will be responsible to _ 5 - restore the grounds, in any area disturbed by him to previous grade, upon completion of work in that immediate area. No digging will be allowed on greens, tees, or putting green. All work shall be back- filled and leveled each construction day and all 18 holes shall be reasonably playable on each weekend day (Saturday /Sunday). 6. Schedule for Construction Construction of the system shall be scheduled to be accomplished during the summer season when Golf Course activity is lower than in the winter time, and when natural growth rate of vegetation is highest in order to permit rapid overgrowth of vegetation disturbed by system installa- tion. Construction in the various areas of the Golf Course will be scheduled to minimize impact on play of the course and to return areas to use as soon as possible following installation of the effluent irrigation system. Construction will be scheduled so that no more than three (3) of the holes of the Golf Course may be out of play at any time. Except when and where expressly permitted by Permittor, no construction work related to the irrigation system will be permitted on the Golf Course January 1 through May 1 of any calendar year. It is anticipated that actual installation of the irrigation system on the Golf Course will commence approximately May 1, 1989 and be completed prior to September 30, 1989. The construc- tion period will be 150 days, (or less) per contract specifica- tions. 7. Cost of Construction Permittee shall at its sole cost and expense install the complete effluent irrigation system - 6 - within the confines of the property, - as generally described on Exhibit A to provide irrigation for tees, greens (except as provided for in Section 17), fairways, roughs and other areas suitable for irrigation in order to provide as much capability for irrigation and effluent disposal as reasonably possible. S. Effluent Irrigation System Operation The effluent irrigation system shall be primarily controlled by a computer driven automatic control system. Primary hours of operation for irrigation will be 6:00 P.M. to 6:00 A.M.. Additional operating time of the system during other hours may be controlled by the Permittor in order to provide necessary irrigation for various areas of the Golf Course. Permittor shall have ability to curtail programmed automa- tic operation of the effluent irrigation system when operation of the system would have an adverse effect on the condition of the Golf Course. Such manual changes made from time to time by the Permittor will be considered as "manual overrides" of the computer control system. Disputes over what constitutes an adverse effect-will be resolved by the committee established in Section 4. Irrigation of the Golf Course, other than by natural precipitation and in specific areas where effluent irrigation is not to be used, shall be exclu- sively by the effluent irrigation system, except as otherwise pro- vided for by this agreement. Permittee shall maintain records of dates and times when the effluent irrigation system is used for irrigation in a " manual override mode unless the automated system has the ability to and records these operations. - 7 - IR 9. Effluent Irrigation System Maintenance Permittee shall perform all maintenance of the lined effluent storage pond, pumps, control system, and effluent irrigation system including sprinkler heads on the Golf Course property. Permittee shall be responsible for appropriate level of inspection and testing to insure adequate maintenance of this system. Permittor shall be responsible to immediately notify Permittee of any apparent failures or malfunc- tions of the system elements for which Permittee is responsible. Permittor shall continue to perform maintenance on all remaining elements of the "non- effluent" irrigation system, including well, pump, distribution lines and sprinkler heads. 10. Grounds Maintenance It is recognized that there will be some increase in the grounds maintenance effort required of the Permittor as a result of irrigation of all areas of the Golf Course. It is also recognized that Permittor will receive some econo- mic benefit from reduction in irrigation well pumping costs. It is agreed that Permittor shall perform all appropriate grounds mainte- nance for all portions of the Golf Course. Permittor shall take reasonable care of his grounds maintenance efforts to avoid unneces- sary damage to the effluent irrigation system components. Permittor shall request assistance from Permittee for location of effluent system lines before doing any excavation, and shall be responsible for proper repair damage resulting from such excavation. 11. Non - Effluent Irrigation System The non - effluent irrigation system shall be maintained and operated by the - 8 - Permittor. After activation of the effluent irrigation system, the non - effluent irrigation system will continue to be used to regularly irrigate the areas marked on Attachment A, and may be as provided for in Section 17, where effluent irrigation will not be allowed and as a backup supply to the effluent irrigation system, whereby the well and pump may be utilized to fill the storage pond in case of inter- ruption of availability of suitable effluent. Permittor shall be responsible for maintenance of the components of the non - effluent irrigation system and for its operation for irrigation in those spe- cific areas. Permittor shall continue to be responsible for all permits required for the irrigation well. 12. Record Keeping Permittor shall be responsible for maintaining records of operation of the effluent irrigation system, during the periods the Permittor puts the system on manual override. Copies of all records of these override periods shall be provided to Permittee on a monthly basis not later than the tenth (10th) day of .the month following. Permittee shall be responsible for groundwater monitoring and for maintaining all records required by Department of Environmental Regulation and records from all data directly generated by the automatic control system. Copies of all automatic control system data, especially information regarding quantities of effluent applied shall be regularly shared with Permittor. 13. Term Of Agreement This agreement shall be effec- tive and be binding upon the parties as_ soon as executed by both parties. It shall remain effective for the life of the existing lease for the Golf Course between Seminole Club, Incorporated, as well as any successors, and City of Sanford, legal owner of the Golf Course. 14. Notices: Proper Form. Any notice required or allowed to be delivered hereunder shall be in writing and be deemed to be delivered when (1) hand delivered to the official hereinafter designated or (2) upon receipt of such notice when deposited in United States mail, postage prepaid, certified mail, return receipt requested, addressed to a party at the address set forth opposite the party's name below, or at such other address as the party shall have specified by written notice to the other party delivered in accordance herewith: Seminole Club, Inc.: Mr. Jack Daniels Mayfair Country Club P.O. Box 3911 Lake Mary, Florida 32746 Sanford: City Manager City of Sanford 300 North Park Avenue Sanford, Florida 32771 15. Notices; Default. Each of the parties hereto shall give the other party written notice of any defaults hereunder and shall allow the defaulting party thirty (30) days from the date of receipt to cure such defaults. 16. Indemnification. Permitee shall provide proof of insurance naming both Permittor and Permittee as insured parties and protecting each against mutually responsible risks - 10 - arising out of the reclaimed water system and irrigation, includ- ing, but not limited to, public liability insurance with limits to be hereafter agreed upon by the parties in writing. To the extent permitted by Florida Laws and within the statutory limits of its liability, Permittee shall indemnify Permittor and hold Permittor harmless from any and all claims, actions, losses, liability, suits, proceedings, costs, expenses, and damages arising out of the use of the said real property by the Permittee for the spray irrigation of treated effluent. Such costs and expenses shall include, but not be limited to, reasonable attorney's fees and the cost of any litigation including appellate proceedings. Per- mittee shall not be liable to the Permittor for any non - negligent, normal or natural effects upon said real property or upon any person or persons proximately caused by effluent spraying or the presence of an effluent spraying system on the said real property leased to the Permittor. (This provision shall not amend the responsibility of Permittor created by the lease of March 11, 1981. 17. Plans for the Golf Course reclaimed water irrigation sys- tern include irrigation of all greens with reclaimed water. Permittee pursued this course of design based on numerous known Golf Course operations where reclaimed water is utilized throughout, without any identified adverse effect therefrom. Permittor feels special concern for the irrigation of the greens and is strongly disposed - 11 - 0 go 140% toward continuing to irrigate the greens, u$j lizing water from the present irrigation well. Permittor feels great concern for intro- ducing any new changed condition, such as reclaimed water, and is therefore opposed to the planned use of reclaimed water on greens. As a means of resolving this conflict, it is agreed that Permittee will obtain an indepth unbiased study by an expert acceptable to both parties. The form of study will include an identification of objective considerations to be addressed in arriving at a recom- mendation regarding ,irrigation of greens with reclaimed water, and will then address each of these objective considerations in arriv- ing at the recommendation, in favor of or against irrigation of greens with reclaimed water. It is agreed that if the recommendation supports reclaimed water irrigation of greens, then the irrigation system will be installed and operated as presently planned, and permitted by D.E.R. If the recommedation is against irrigation of greens with reclaimed water, Permittee will design and provide additional irrigation piping as necessary to provide for continued irrigation of greens from the pre- sent irrigation well, with controls comparable to those presently in operation, utilizing water from the present irrigation well. 18. Successors And Assigns The covenants and agreements set forth herein shall inure to the to the benefit of and be binding upon the parties hereto, their successors and assigns. - 12 - a IN WITNESS WHEREOF the undersigned parties have executed this agreement in a form and manner sufficient to bind them as of the date of joint execution. Seminole Club, Inc. Notary Q � 1A Jack D YrnkV s NOTARY PUBLIC STATE Of PLOQ 10A NY COMMISSION EXP. NOV. 1,1588 SUCEO THRU GENERAL. 14S. UNO. City of Sanford Notary � NY COMMISSION EXP. NQY. 1,1588 9DlPDEO THRU GEhER, ?L IlFS. D. Smith, Mayor Approved for Legal Sufficiency for City of Sanford E - 13 - 1a + "'41 , OFFICIAL RECORDS 80OIC pF,Cr 1 3t, 6 1 746 SD41HOLE CO. FL L E A S E THIS INDENTURE OF LEASE, made and entered into in duplicate this 11th day of March, 1981, by and between CITY OF SANFORD, FLORIDA, a municipal corporation created by the laws of the State of Florida and existing in Seminole County, Florida, hereinafter referred to as Lessor, and Seminole Club, Inc., a Florida Corporation ,hereinafter referred to as Lessee, whether one or more, which expressions, Lessor and Lessee, shall include the successors, assigns, heirs and legal representatives of the repsective parties when the context so requires or admits, W I T N E S S E T H: N M 00 x ,4 w v 14 ov U Pq P y, • w o CO c�aM o C 4J tV i8o CNJ LCEN c�a 1. PREMISES AND TERM The Lessor has demised, leased and let, and by these presents does demise, lease and let unto the Lessee the following described real property and buildings thereon situate in Seminole County, Florida, at what is commonly designated the Sanford Golf Course and Country Club, a more particular description of said property being, to -wit: Block 6 of the Bel -Isle Section of Loch Arbor as recorded in Plat Book 7, Page 72, of the Public Records of Seminole County, Florida AND Begin 30 chains south of the northeast corner of Section 4, Township 20 South, Range 30 East, run south 12.83 chains, thence west 7.17 chains, thence north 45 degrees west 4 chains, thence west 20.04 chains, thence south 10 chains, thence west 5 chains, thence south 3 chains, thence west 5 chains, thence north 53 chains, thence east 20 chains, thence south 20 chains, thence east 10 chains, thence south 10 chains, thence east 10 chains, to the point of begin ning, containing 123 acres, more or less, (LESS: Beginning at a point on the Fast Line of Section 4, Township 20 South, Range 30 East, Seminole County, Florida, 1951 feet South of the Northeast corner of said Section 4, thence run South along 'x the East Line of said section 106.6 feet, ' ?t run thence West 98.9 feet, run thence North 71 degrees and 14 minutes West 385.5 10 feet, run thence South 87 degrees 51 minu- , tes,and 15 seconds East 464.10 feet to the point of beginning). -1- r 3 OFFICIAL RFCOROS H's6 �14 AND CO. FL. Begin 53 chains South of NW corner of East 1/2 of Section 4, Township 20 South, Range 30 East, run South 350.3 feet, thence East 200 feet, thence North 56 degrees 49 -1/2 minutes East 222.05 feet, thence North 14 degrees 40 -1/2 minutes East 440.92 feet, thence West 167.1 feet, thence South 198 feet, thence West 330 feet to point of beginning; AND Out Lot No. 1, less the North 230 feet, LOCH ARBOR, Country Club Entrance Section, Plat Book 5, Page 72, of the Public Records of Seminole County, Florida, TO HAVE AND TO HOLD the above described real property and buildings, with all the rights, privileges and appurtenances thereunto belonging unto the Lessee for a term of sixty -seven years (67) and seven months (7), beginning on the 11th day of March, 1981 and ending on the 10th day of October, 2048, unless the said term shall be sooner terminated as hereinafter set forth. 2. RENTALS Lessee covenants and agrees during the remaining term hereof, to spend annually on capital improvements, in lieu of rent, first to the golf course itself until such time as the layout and condition of said course are satisfactory to Lessor, and then to building improvement and additional structures, the following sums: five percent (5 %) of all gross revenue. Gross revenue shall be defined as all revenues derived from all sources except proceeds from the operation of the pro shop, as long as the pro shop is being operated by the pro as reimbursement to the pro. Pro shop proceeds shall include the sale of all mer- chandise, golfing equipment and proceeds from golf lessons but shall specifically exclude cart rentals. Quarterly and annual accountings shall be rendered to the City of Sanford as pro- vided in paragraphs 18 and 19 of this lease. in the event any of the aforesaid sums, on an annual basis, are not spent in lieu of rent on such improvements, the same shall be paid as rent to the City. Capital improvements shall be defined as those types -2- I �i ri of improvements which become permanent in nature as compared to those improvements which are required only to maintain repair and condition; provided, however, the expenditures required herein for re- working and renovation of tees and greens shall be considered as capital improvements. It is further agreed that the above described sums may be carried over from year to year, for example: if Lessee expends during one year the sum of $25,000.00 in permanent improvements and if under the above described gross revenue formula $5,000.00 would be required during such year, the remaining $20,000.00 would be carried forward to subsequent years and credited toward future required expenditures under the above described formula. 3. This lease is made subject to the following terms, conditions, covenants and restrictions hereby agreed upon by and between the Lessor and the Lessee, to -wit: (1) Lessee agrees during the term of this lease C-0 E_ c1 to maintain and operate the golf course on the above described property as an eighteen hole golf course, aggregating 6,000 yards in length, with fairways of standard width, and clubhouse and locker rooms as a country club. The annual maintenance requirements for the golf course shall include as minimum standards proper fertilization, watering, mowing and weed kill- ing programs. The proposed annual maintenance program shall first be submitted to the City Commission on an annual basis for approval, rejection or modification. once an annual maintenance program is approved by the City, it shall be implemented by the Lessee within the following twelve months. (2) The Lessee has inspected the property hereby leased and let and accepts the same in its condition as and of the 11th day of March, A.D., 1981. (3) Taxes The Lessee shall, in addition to the rentals hereby reserved, pay or cause to be paid before they become delinquent, all taxes, assessments and charges for water, -3- e00*, -O* sewage disposal, gas, electricity, and any other utilities and any and all other impositions, general or special, ordinary or extraordinary, of every kind and nature assessed, levied or im- posed by any taxing authority upon said demised real property, buildings or personal property, or any part thereof, or upon any building or buildings from time to time hereafter erected on said real property by the Lessee or upon any personal property hereby leased and let, or which may be levied, assessed, or im- posed upon the interest of the Lessor in or under this lease or upon its reversionary estate in said premises, said obligations on the part of the Lessee to continue throughout the term of this lease. The Lessee shall likewise pay before they become delinquent any and all taxes that may be levied by any taxing authority upon this lease or leasehold interest. The Lessee shall deliver to the Lessor within (30) z c> 6� o� n-. cn c J w 0 Ltt thirty days after the payment of any taxes, assessments or other impositions, the receipts or duplicate copies thereof showing payment thereof. Should the Lessee for any reason fail to pay such taxes, assessments and impositions before they become de- liquent and when and where the same shall become due, then the Lessor shall have the right at its option and without waiving its right to declare a forfeiture of this lease by reason of such default, to pay the same together with such penalties as may be accrued, and charge the same against the Lessee, where- upon the same, together with all penalties and interest, shall forthwith become due and payable by the Lessee to the Lessor, with interest thereon. (4) Assessments for Public Improvements The Lessee shall pay, before they become deliquent, any and all assessments which may be made by the Lessor or its successor or successors, or by any other authorized taxing body, for any public improvements affecting the real property hereby leased and let, and which are ordinarily assessable against real property. -4- e"*� ,0-, (5) Use and Care of Premises The Lessee shall 0 ti cn m not permit or suffer the commission of waste of the property hereby leased and let, nor said premises or the buildings there- on, to be used for any vicious, illegal or immoral purposes or for any purpose that will substantially increase the rate of insurance thereon, or for any purpose in violation of State Laws, or municipal ordinances, rules or regulations now or there- after in force and applicable thereto; and the Lessee shall con- form its operations and uses of the leased property with all laws, ordinances, rules and regulations of the United States of America, the State of Florida, and the Lessor and of all public authorities, boards or officers relating to said premises, and relating to health and safety and shall keep and maintain said premises and buildings and every part thereof and all sidewalks and areas adjoining the same in a clean, safe, secure and whole- some condition. (6) Maintenance of Buildings The Lessee shall maintain at its own expense all of the aforesaid buildings and additions thereto and fixtures therein, and at its own expense keep the same in a state of sound condition and repair. This provision shall likewise apply to any building or buildings that w 6 U �a ci may be constructed on the leased premises. (7) New Buildings to Become Property of Lessor Any building or buildings erected on the leased premises and all additions thereto and fixtures thereon shall be and become a part of the land upon which erected, and shall not be removed by the Lessee before or at the termination of this lease, by lapse of time or otherwise, except as provided in Paragraph (8). (8) Removal of Buildings None of the buildings hereby leased and let or replacement or replacements thereof or additional building or buildings shall be removed by the Lessee unless by reason of age the same shall become incapable of re- pair; in which event the Lessee may, with the written approval of Lessor, remove such building or buildings so incapable of being -5- repaired. In the event of the removal of any building or build- ings by the Lessee the Lessee may erect at its own expense in place thereof another building or buildings, in value equal to or greater than the building or buildings so removed. The plans and specifications for any building or buildings proposed to be erected by the Lessee shall be subject to the approval of the Lessor. The Lessee shall, before commencing construction of any new building, furnish and deliver to the Lessor a good and sufficient bond of indemnity or other security acceptable to the Lessor, to secure and safeguard said premises and the Lessor against any and all liens, claims, levies, attachments, demands, costs, expenses, loss or damage in relation thereto, and the work and labor done thereon and the materials furnished there- for and against all claims and demands or contractors, subcon- tractors, laborers, materialmen and all other persons in respect thereto. The Lessee shall, in no event, have power, authority or right hereunder to incur and create any obligation in such respect to said premises, buildings, or improvements which shall v create or constitute a lien or claim in favor of Lessee or a w: s cs� third party against the right, title and interest of the Lessor e; in or to said premises, buildings or improvements which may now or hereafter be erected thereon and notice of hereby given to all persons furnishing labor or materials therefor that any liens therefor shall attach only to the leasehold interest hereunder and be subordinate to all of the rights, title and interest of the Lessor in and to said premises, buildings and improvements under this lease. The materials of any building removed hereunder shall be the property of the Lessor. (9) Indemnity for Lessor and Others The Lessee shall keep the Lessor harmless and indemnified at all times against any loss, cost, damage or expense by reason of any accident, loss, casualty or damage to person or property sub stained by any of Lessee's employees, patrons, guests or anyone else while on or occupying any of the leased premises and while .MM I a 0 W [�r A WN using or operating any of the leased personal property, and to that end shall maintain at all times, in full force and effect, insurance against liability for damage sustained by negligence of the Lessee, their agents, servants, employees, or sub- tenants or by reason of any accident, loss, casualty or damage resulting to any person or property through any use, misuse or non -use of said premises or personal property or by reason of any act or thing done or undone on, in or about said premises, or in relation' thereto. (10) Alterations, Fixtures, Etc The Lessee shall have the right, at their own expense, to make alterations, attach fixtures and erect partitions and signs in and upon the buildings hereby leased or any replacements or additional buildings on the premises, subject to any and all building restrictions now or hereafter imposed by the City of Sanford and to inspection by the Lessor or its duly constituted representatives; but Lessee, if required by the Lessor, shall upon the termination of this lease, _ d restore said premises to a condition equal to that existing at c� the time of the Lessee's entering upon the same under this lease, co reasonable and ordinary wear and tear and damage by war, fire, Ct flood, windstorm or any of the other elements or by circumstances over which the Lessee has no control, excepted, except,however, that if the Lessor requires such restoration, the Lessee shall be given written notice by the Lessor at least thrity (30) days be- fore the termination of this lease. (11) Inspection of Property by Lessor The Lessor shall have the right to enter upon all of the real property and buildings hereby leased and let, for the purpose of inspect- ing the property leased and let, to determine whether the terms and conditions of this lease are being observed and carried out by the Lessee, and for any other purpose necessary or proper.for the reasonable protection of Lessor's interest in said property. (12) Reservations for Utility Purposes The Lessor hereby makes reservations of so much of the property -7- hereby leased and let as may be reasonably necessary for any and all kinds of utility servies and purposes, with the right to enter upon any of said property for the installation, main- tenance, repair, removal or transfer thereof, either to existing buildings and installations of any hereafter placed upon any part of the property herein demised.. ei (13) Damage by Fire or Elements Lessor shall carry such insurance against fire and /or windstorm covering the buildings now or hereafter existing on said demised property as Lessor shall consider necessary, provided however, that Lessee shall reimburse in full to Lessor any premium or charge paid for such insurance not less than three (3) months after Lessor shall have paid such premium or charge. There shall be no liability on Lessor for restoration of any buildings on premises cr w L k c., M hereby demised which are damaged or destroyed by causes not covered by insurance carried by Lessor and the Lessor's liability for damage or destruction insured against shall extend under the conditions hereafter set forth only to the amount of the proceeds of any insurance paid to Lessor on policies covering said pro- perty. Any insurance proceeds paid to Lessor by reason of loss as aforesaid shall be applied to restoration of the building or W L�. C buildings damaged or destroyed, provided that Lessee sihall pay any additional amount required to effect such restoration to substantially equal condition to that prior to such damage or destruction. Should Lessor and Lessee agree not to restore any such building or should restoration not be substantially begun within six months after the damage or destruction shall occur, the Lessee may retain all insurance proceeds received by it to be expended for any municipal purpose. (14) Assignment of Lease, Subletting The Lessee shall not assign this lease nor sublet the premises or any part thereof without the written consent of the Lessor. Lessee shall exhibit this lease for examination by any prospective subtenant before requesting such consent to sublease, and the rights of any �� subtenants permitted by Lessor shall always be subject to and subordinate to the rights, title and interst of the Lessor here- under, and sub subletting shall not relieve the Lessor from its responsibility to carry out the terms of this lease, and the Lessor shall not be required to look to any sub - leasee or sub- tenant for the performance of any of the covenants required to be performed by the Lessee hereunder; and the Lessee shall con- tinue to be bound by all of the terms, agreements and covenants and conditions hereof. (15) Service of Notice Whenever it shall become necessary or desirable to serve notice upon one party by the other, said notice shall be in writing or printing and may be sent by registered mail with full postage prepaid to the last known post office address of the then Lessor or Lessee who is such of record; and notice to the then Lessor or Lessee of re- cord shall, for all purposes, be deemed notice to eabh and every- one of their predecessors in interest respectively, and to all persons holding under or through them. (16) Five Year Improvement Program Lessee coven- ants and agrees that during five years immediately succeeding the execution of this instrument Lessee will make the following improvements to the golf course: FIVE YEAR PROGRAM FOR MAYFAIR COUNTRY CLUB I. STAFFING A. Pro - Manager -Golf Director B. Assistant Pro - Manager C. Course Superintendent D. Head Professional 1. Pro -Staff 2. Teaching Staff 3. Carts 4. Starters & Rangers E. Club House - Assistant Pro- Manager II. COURSE MAINTENANCE: U A. immediate adherence to a complete, consistent and sound maintenance program. 1. Mowing Schedule 2. Watering schedule, according to need Im ca tt� o v uJ ac ac . .a- na necessary or desirable to serve notice upon one party by the other, said notice shall be in writing or printing and may be sent by registered mail with full postage prepaid to the last known post office address of the then Lessor or Lessee who is such of record; and notice to the then Lessor or Lessee of re- cord shall, for all purposes, be deemed notice to eabh and every- one of their predecessors in interest respectively, and to all persons holding under or through them. (16) Five Year Improvement Program Lessee coven- ants and agrees that during five years immediately succeeding the execution of this instrument Lessee will make the following improvements to the golf course: FIVE YEAR PROGRAM FOR MAYFAIR COUNTRY CLUB I. STAFFING A. Pro - Manager -Golf Director B. Assistant Pro - Manager C. Course Superintendent D. Head Professional 1. Pro -Staff 2. Teaching Staff 3. Carts 4. Starters & Rangers E. Club House - Assistant Pro- Manager II. COURSE MAINTENANCE: U A. immediate adherence to a complete, consistent and sound maintenance program. 1. Mowing Schedule 2. Watering schedule, according to need Im Ls! C� cs G W c cc: 3. Fertilizing schedule according to soil analysis 4. Chemical program a. Insecticide b. Fungicide c. Herbicide d. Nematicide B. Special Programs - Golf Course 1. Strong herbicide program and resprigging of fairways 10 -18 2. Construction of proper paths Asphalt 8' wide with rock base 3. Rebuilding of closed bunkers that were on original design 4. Re- dragging and beautifying existing lakes 5. Tree planting program to outline fairways, #10, #11, #12, #13 6. Converting existing range into first class practice and teaching facility 7. Modernize all equipment and sprinkler syste 8. Improve security by fencing III. CLUB HOUSE AND PRO SHOP A. Special Programs 1. Renovating clubhouse 2. Renovating pro shop and cart barns 3. Beautifying grounds around clubhouse and pro shop 4. Renovating locker room � Lf',j 5. Landscaping existing entrance to clubhouse ti � and parking lot _ 6. Renovating swimming pool and pool house 0 c� IV. GOLF ACTIVITIES <r; cs� _. A. Hire outstanding head pro, pro shop staff and c> .0 teaching staff B. Redecorate and restock pro shop to compete with better pro shops in the area C. Initiate comprehensive teaching program 1. Free Clinics 2. Free Jr. Program 3. Private lessons 4. T.V. lessons 5. International golf school D. Organized Golf Club 1.. Men's golf association and tournament schedule 2. Women's golf association and tournament schedule 3. Twi -lite golf 4. Pro -am schedule 5. Pro tournaments a. Winter open b. Summer open C. Space coast tour (4) 6. Area Junior Tournament 7. Summer Junior training program -10- Na 19 V. EXPAND FOOD AND BEVERAGE PROGRAM COST OF PLAN OVER AND ABOVE NORMAL EXPENSES Chemical Program Renovation of Fairways, trees, Bunkers Cart Path Construction Lake Program Irrigation Upgrade Range Facilities Clubhouse and Building Parking Lot and Landscaping Fencing 0 110 #0a Yearly Average for five Years $ 50,000.00 $ 50,000.00 $55,000.00 $ 20,000.00 $ 30,000.00 $ 20,000.00 $150,000.00 $ 50,000.00 $ 30,000.00 $455,000.00 91,000.00 Lessee further covenants and agrees to expend a G: 0 a zz o r� co I`t co J 4. O c: u _c average of $91,000.00 annually during the five years immediately succeeding the execution of this lease for the programs outlined in the preceding paragraph. It is expressly understood and agreed between the parties that this sum is in addition to the maintenance program identified in paragraph 3 (1) or any other expenditures provided for elsewhere in this lease. It is agreed between the parties that any expenditures herein shall be cumula- tive and any amount spent in excess of the $91,000.00 minimum shall be credited toward expenditures in subsequent years. It is further agreed that sums spend for labor shall be considered in computing the expenditures described above. The renovation of the back nine holes shall be considered a priority item by the parties and shall be completed by October 1, 1981. (17) Statements as to Lessee's Receipts Lessee shall furnish to Lessor on or before thirty (30) days after the end of each quarter during the entire term of this lease, a statement of all gross revenues of the business opera- tions conducted by Lessee on the leased premises during such preceding months, which statement shall show the actual amount of gross revenue as herein defined and any other receipts from sales or services for the preceding quarter and which shall be broken down so as to show the gross revenues of each catagory . of operations, and shall be sworn to by an officer of Lessee who of his own knowledge knows the correctness of each statement. -11- V `• NO M (18) Auditor's Annual Certificate Lessee shall furnish Lessor within sixty (60) days after the expiration of each lease year during the term of the lease, a complete state- ment of all gross revenues as herein defined from sales, services rendered, and all other business operations conducted on the leased premises during the preceding lease year. Said statement shall show all of the gross revenues of each catagory of opera- tions, and shall be certified as acurate by a licensed, practic- ing Certified Public Accountant who does not hold any ownership interest in the operation of said business. (19) Liability Insurance Supplementing the insurance ti o _ co indemnification provision of this lease, Lessee agrees to carry a policy of public liability and property damage insurance in which the limits of liability shall not be less that $500,000.00 per person, and $1,000,000.00 for each accident or occurance for bodily injury, and $50,000.00 for property damage. Said policy shall name Lessor as co- insured and shall be insured by such companies as are first approved and acceptable to Lessor. (20) or During the remaining term of said lease Lessee is prohibited, without the written consent of Lessor, from cutting or removing any timber or trees, except dead trees, upon the demised premises, and is further prohibited from subleasing any of the areas not now presently occupied by fairways, greens, or building struc- tures. (21) Use By Local Residents The Lessee shall at all times permit the use thereof by local residents and their guests on a membership basis and daily green fee basis comparable to average membership fees and daily green fees charged by public and private golf courses in the surrounding -12- territory of a radius of fifty miles. (22) Contingencies Constituting a Breach Hereof W CD �a U W J V 4" cc ti (.fl I- In the event any levy, lien or attachment shall be made against the interest of the Lessee or if any other proceedings at law or in equity be instituted to subject said premises or any part thereof to the payment of any claim, debt, liability or damages of or against the Lessee, or the Lessee shall become insolvent or bankrupt, or if proceedings for the receivership or bankruptcy shall be instituted against them, or if they shall make an assign ment for the benefit of creditors, or if they in any manner seek, permit, or suffer the fee or the leasehold interest hereby created to be transferred, or encumbered by.operation of law, or other- wise jeopardized, hypothecated, or encumbered, except for such transfers as may be authorized under Section 2 of this lease, then and in any such event, or in the event of the same or similar legal or equitable consequence or effect, such event shall be deemed to constitute a breach of this lease, at the option of the Lessor so as to terminate all rights, privileges, and interest of Lessee herein and hereunder, unless however, the Lessee shall, without the necessity of demand or notice from the Lessor obtain and procure within thirty (30) days after the same shall have been done, instituted, filed, or made or asserted, a discharge, release, cancellation or withdrawal thereof, or within like period bond the same off from said premises and leasehold interest and relieve said leasehold interest and the Lessor's interest herein and in said premises therefrom. The failure of the Lessee to pay any of the rentals, taxes, or any of the other sums in the manner and time hereinbefore provided, and the continuance of such failure for a period of thirty (30) days, or to keep, fulfill or perform any of the other terms, provisions, agree- ments, covenants and conditions herein contained, on their part to be kept, fulfilled and performed, and the continuance of such failure for a period of sixty (60) days after notice in writing from the Lessor to Lessee of such failure, shall likewise con- -13- stitute a breach of this lease, at the option of the Lessor, so as to terminate all rights, privileges and interest of the Lessor, herein and hereunder. In the event of a breach of this lease, the Lessee shall and will pay to the Lessor all costs, reasonable attorney's fees, and other expenses which may be incurred by the Lessor in enforcing their rights hereunder and also such other actual damages as the Lessor may actually sustain by reason of said breach or default. Waiver of one or more defaults by the Lessee hereunder shall not constitute a waiver of any other subsequent defaults. IN WITNESS WHEREOF, the Lessor has caused these 07 %i Ln W (- L . c ., presents to be executed in its name by its Mayor, and attested and its corporate seal hereuntq affixed by its City Clerk, and the Lessee have hereunto affixed their hands and seals, the day and year first above written. Signed, Sealed and Delivered in the i prVVnce of: IN As toy y Lessbr- -'fly 4� &b i 6 CITY ANFORD, FLORIDA i s Mayor � Wei is er Lessor SEMINOLE CLUB, Lessee OVE OVE