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HomeMy WebLinkAbout10234RESOLUTION NO. 10234 A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE RESTAURANT LEASE AND OPERATING AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND SCIUMBATO ENTERPRISES AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME WHEREAS, the City of Pueblo, a Municipal Corporation, and Sciumbato Enterprises entered into Restaurant Lease and Operating Agreement on December 21, 2002 relating to restaurant operations at the Pueblo Memorial Airport; and WHEREAS, both parties wish to amend the provisions of the Restaurant Lease and Operating Agreement as set forth in Amendment No. 1; now, therefore, BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that: SECTION 1. A certain Amendment No. 1 to the Restaurant Lease and Operating Agreement, a copy of which is attached hereto and made a part hereof by reference, after having been approved as to form by the City Attorney, by and between the City of Pueblo, a Municipal Corporation, and Sciumbato Enterprises relating restaurant operations at the Pueblo Memorial Airport, is hereby approved, subject to the conditions as set forth in said Amendment No. 1. SECTION 2_ The President of City Council is hereby authorized to execute said Amendment No. 1 on behalf of the City of Pueblo, a Municipal Corporation, and the City Clerk shall affix the Seal of the City thereto and attest the same. INTRODUCED September 27, 2004 BY Michael Occhiato Councilperson 3E so I 1 ED Background Paper for Proposed RESOLUTION AGENDA ITEM # 9 DATE: September 27, 2004 DEPARTMENT: AVIATION - DANIEL E. CENTA, P.E. TITLE A RESOLUTION APPROVING AMENDMENT NO. 1 TO THE AIRPORT RESTAURANT LEASE AND OPERATING AGREEMENT BETWEEN THE CITY OF PUEBLO, A MUNICIPAL CORPORATION, AND SCIUMBATO ENTERPRISES AND AUTHORIZING THE PRESIDENT OF CITY COUNCIL TO EXECUTE SAME ISSUE Should City Council approve an Amendment to the Restaurant Lease and Operating Agreement between the City of Pueblo and Sciumbato Enterprises. RECOMMENDATION Approval of this Resolution. BACKGROUND City Council approved a Restaurant Lease and Operating Agreement between the City and Sciumbato Enterprises on December 21, 2002 for restaurant operations at the Pueblo Memorial Airport. In order for Sciumbato Enterprises to continue to operate the restaurant at the airport, they have requested for a period of one year: (1) A decrease in monthly rent; and (2) The City maintain the City owned restaurant equipment. They have indicated they will be unable to continue to operate the restaurant if these concessions are not granted. FINANCIAL IMPACT Decrease of monthly rental rate from 7 per cent of the monthly gross revenue to 3.5 per cent of the monthly gross revenue. This will mean a decrease of approximately $350 per month. It is estimated it will cost the City approximately $150 per month to maintain equipment. RESTAURANT LEASE AND OPERATING AGREEMENT AMENDMENT NO. 1 THIS AMENDMENT entered into as of this 27th day of September 2004 between the City of Pueblo, a Municipal Corporation (the "City ") and Sciumbato Enterprises (the "Lessee "), WITNESSETH: WHEREAS, a Restaurant Lease and Operating Agreement between the City and the Lessee was entered into on December 21, 2002; and WHEREAS, both the City and the Lessee desire to amend the Restaurant Lease and Operating Agreement for a period of one year, NOW, THEREFORE, in consideration of the mutual covenants contained herein, the City and the Lessee agree as follows: Section VI, Paragraph A of the Restaurant Lease and Operating Agreement is amended to read as follows: Lessee agrees to pay to the Lessor, without offset or deduction, at such places as the Lessor may designate from time to time, for the use of the premises, facilities, concession rights and privileges, a monthly rent of 3.5 per cent of monthly gross revenue or $225.00, whichever is greater, up to $1,500.00 a month. 2. Section IV, Paragraph E of the Restaurant Lease and Operating Agreement is amended to read as follows: Lessee shall, at its sole expense, maintain and keep the Leased Premises, and all improvements thereon, including the exterior grease trap, in good condition, appearance, and state of repair and provide all interior building maintenance and custodial service for the Leased Premises. It being expressly understood and agreed that Lessor shall not be responsible for any defect in the Leased Premises or improvements thereon or obligated to make any repairs, except repairs to the exterior of the property, heating and air conditioning equipment, sewer and water lines and connections, and repairs to the City owned kitchen equipment listed on the attached Exhibit A, provided that, Lessor shall not be responsible for repairs caused by the negligent acts or omissions of Lessee, its employees and agents. 3. This Amendment No. 1 shall be in effect from September 27, 2004 to October 21, 2005. The Restaurant Lease and Operating Agreement as modified and amended by this Amendment No. 1 shall remain in full force and effect. Executed the day and year there above written. ATTEST: CITY OF PUEBLO, A MUNICIPAL CORPORATION By City C1 Randy Thu n, President of City Council APPROVED AS TO FORM: � a City Atto CC TTTTv1RAT0 FNTF.RPRTRFQ EXHIBIT A CITY MAINTAINED RESTAURANT INVENTORY APPLIANCES QUANTITY MAKE MODEL # SERIAL # COMMENTS Cooler /Freezer — 2 door walk -in 1 US Cooler 4305 Dryer -- clothes 1 Maytag LZE4000ACL A3204209 Freezer — 2 door 1 True T -49F 1- 2527935 Griddle — Gas with stand I Wolf Ice Machine with ice bin and scoop I ice- O -Matic C41100367Z Mixer I Hobart A -200 -T 1790693 Washer — clothes 1 Kenmore 110 CF2607226 Broiler with stand — 36" gas I Imperial Cooler — 2 door 1 True T -49 1- 670768 Deep Fryer 2 FryMaster FryMaster MJ145ESD GF14SP 9708GA0059 951OFMO609 To be replaced Oven — Double stack convection I Garland TTE4 109532 Salad Serving Station with Refrid erator 1 Randell 9801 AJ04322 -1 Meat Slicer I Unnex 7510 Freezer 1 Delfield 407 325235 -T Food Disposer 1 Insinkerator S875 -27 MJ266173 Chef Table 1 Randall Refrigerant and Steamer Compartments and heat lamps onl