Title
Consideration of and action on an Amendment to the Lease between the City of Deer Park and Touchstone Golf, LLC.
Body
Summary:
At this time, Council will consider taking action on a potential amendment to the lease between the City of Deer Park and Touchstone Golf, LLC. This will be the second amendment to the lease agreement.
The key components of this amendment include:
* The Landlord shall assume the payment of golf cart lease effective January 21, 2020.
* The Landlord shall assume payments of the electricity cost of the property effective January 21, 2020. The City will assume financial responsibility for all capital improvement costs including equipment replacement. Capital improvements will not include maintenance items.
* Sections 6.1 and 6.2, Minimum Rent and Percentage Rent, respectively as amended by the First Amendment to Lease Agreement, shall be replaced as follows:
Administrative Fee
1) Tenant shall be entitled to the first $5,000.00 of Net Operating income per month.
2) In the event that cash flow is insufficient in a month, Tenant may retain revenue in subsequent months to catch-up for months in which Net Operating Income is less than
$5,000.00.
3) Any Net Operating income in excess of the first $5,000.00 per month as described in Section B 1 above shall be split 80% to the Landlord and 20% to the Tenant. Payments shall be payable quarterly with a reconciliation and true-up at year end.
* If Tenant does not complete the full term of the lease due to its defaults as set forth in the Lease Agreement, Tenant shall owe Landlord amounts due to Landlord for the remaining time on Lease due under the original terms of Lease.
* Tenant shall produce monthly revenue and expense reports to Landlord. Landlord shall have right to have revenue and expense reports audited at the Landlords cost with reasonable notice to Tenant. Additionally Tenant shall produce monthly detailed reports of all bookings of Golf tournaments and building reservations.
*...
Click here for full text