HomeMy Public PortalAboutShrine Club Lease 9-17-96 DEC. 29. 2005 1:43PM CALLAWAY BRAUN ET AL NO. 4665 ', 10
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MEMORANDUM OF AGREEMENT
his greement, made and entered into this /
.�- ? of
>XJ c' 8.; 1996, by and between the City of Tybee Island,
Stake of Georgia, hereinafter referred to as "City",.and the
Tybee Lite Shrine Club, hereinafter referred to as the "Shr ne
Club ", sets forth the following:
WHEREAS, the City owns the premisee now occupied by the
Shrine Club, and desires to have such occupancy continued, and
Whereas, the Shrine Club provides quasi - governmental
services to the community,
NoW, THEREFORE, it is hereby agreed by the parties hereto as
follows:
The Shrine Club shall be permitted to use the premises they
currently occupy, together with all improvements thereon, located
at the North Beach of Tybee Island, for the sum. of 52,700 per
month, less certain credits and plus certain debits, resulting in
a net payment of s1Q0.00 per month, as more fully set forth on an
attachment hereto titled "Tybee Lite Shrine Club Lease Payment'";
payable on the first day of each month beginning January 1, 1997,
and continuing thereafter for a term of fifteen (15) years.
Further, beginning on January 1, 1998, and on each January 1st
thereater, the monthly net payment shall be increased by the
same percentage as the Bureau of Labor Statistics Consumer Price
Index has increased for the most recent twelve month period for
which data is available, during the last week of December of each
year.
The Shrine Club shall continue to use the premises as their
clubhouse for Shrine Club meetings and functions, and shall also
make the premises available for other community recreational,
cultural, civic, and governmental functions, at reasonable costs
to the participants.
The Shrine Club shall make improvements and alterations to
the premises, as follows:
A. Airconditioning addition 50 as to render the premises_
comfortable during the warmer seasons, to be accomplished within
twelve (12) months from the date of this agreement.
B. Exterior finishing completion, to be accomplished with n ten
(10) years from the date of this agreerneut, in order to render
the premises visually attractive.
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C. Fire /Safety improvements as may be determined by periodic
inspect ions by the County or State Fire Marshall.
D. Other improvements as may be necessary to have the premises
be in compliance with Codes applicable to facilities of a similar
nature in the city of Tybee Island, Georgia.
E. Other improvements as may be mutually agreed to the
City and the Shrine Club.
The Shrine Club shall actively advertise and promote the
availability of the premises for use by individuals and
organizations for recreational, cultural, civic and governmental
functions, as a quasi- governmental service to the community.
The Shrine Club shall establish a fee schedule for the use
of the premises by others, said fee schedule to be fair and
reasonable to all parties concerned, together with a premises use
agreement specifina appropriate terms and conditions for premises
use,
The Shrine Club shall, throughout the term of this
agreement, at its own cost and without any expense to the City,
operate, keep and maintain the premises in good, sanitary and, - 1
neat order, condition, and repair; shall pay all utilities and
other operating and maintenance expenses, and shall maintain
liability insurance in the amount of One Million Dollars
($1,000,000.00) covering the premises and appurtenances thereto
for injury or death of any number of persons in any one
occurrence, and property damage liability insurance in the amount
of Three Hundred Thousand Dollars ($300,000.00), and such
insurance shall specifically insure the City against all
liability assumed by it hereunder, 'as well as any liability
imposed by law, and shall insure both the City and the Shrine
•Club, and shall be so endorsed as to create the same liability on
the part of the insurer as though separate policies had been
written for the City and the Shrine Club.
The Shrine Club shall not assign, mortgage, or encumber this
memorandum of agreement, nor sublet the premises or any part
thereof to be used by others, except for periodic and temporary
• use as herein provided, without the prior written consent of
City.
The City shall be able to construct an emergency facility
known as a Command post /Emergency Operations Center on the
north- western section of the top deck of the premises.
The particulars shall be mutually agreed upon between the
parties.
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The City and Shrine Club may mutually negotiate revisions
. and extensions to this agreement at any time.
The Shrine Club has the option to renew this agreement for
an additional fifteen (15) year during the final year of this
agreement, with the net monthly payment continuing at the $100:00
plus inflation adjustments amounts.
IN WITNESS WHEREOF the parties have hereunto set the hands and 1
seals this 1,� day of ,-, , 1996. i
CITY OF TYEEE ISLAND 1
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by: /� + - Lam'' ./ 1
Walter M. Parker, Mayor
ATTEST: _
ila cq yn R Brown, C erk of Council
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(SEAL)
TYBEE LITE SHRINE CLUB
..d/ 1,
by:6
Office: r.. , / ,. -
Attest: --_G✓ /.,-: rt.,z,
.,a,
DEC. 29. 2005 1:43PM._ _ . CALLAWAY BRAUN ET AL Na 4665 '. 13
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T' bee Lice Shrine Club Lease Pavmezxt
Lease Term; 15 Years
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Gross Rental Value of Existing Facility per month $2,700
Less equitable return of investments /improvements
to the property:
Building Value: 6,000 sq. ft. @ $70
equals $420,000
Equipment and fixtures value: $50,000
Total Value: $480,000
Return /Mo: $480,000/(15 x 12) - X2,667
Plus equitable repayment for use of land and
pre- improvement structures:
Prior Sales Value: $375,000
Monthly interest value;
$375,000 x .06/12 +$1,87B
Plus eaui.table return OR planned improvements:
Airconditioning $18,000
Exterior Finish $10,000
Other .$10,000
TOTAL $38,000
Monthly repayment: $38,000/(15 x 12) -$ 211
Less value of quasi'-governmental services
provided to community, including required
disbursements for insurance, elevator
maintenance, utilities, building and I
equipment maintenance,security expense, etc. - $1,600
Less round -off adjustment ..L 3
TOTAL NET LEASE PAYMENT /MO: TS 100