HomeMy WebLinkAboutResolution - 508 - Addendum To Contract - Gladieux Corp - Concession Rights, LIA - 05/22/1980SMT:cl
RESOLUTION #508 - S/2
MbULUTION
A
4 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
THAT the Mayor of the City of Lubbock BE and is hereby authorized and
directed to execute for and on behalf of the City of Lubbock an Addendum to the
Contract entered into with Gladieux Corporation, attached herewith which shall
be spread upon the minutes of the Council and as spread upon the minutes of
this Council shall constitute and be a part of this Resolution as if fully
copied herein in detail.
Passed by the City Council this 22nd day of May 1980.
BEL MCALI TER, MAYOR
`ATTF,SIT:
4jvlyn,-G fga, City e r ry-Treasurer
APPROVED AS TO CONTENT:
Mary:(n Coffee, Dire of Aviation
APPROVED AS TO FORM:
Susan M. Tom, Assistant City Attorney
R� RESOLUTION #508 - 5/22/80
ADDENDUM TO CONTRACT
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
The Contract entered into the 9th day of October, 1975, by and between
the CITY OF LUBBOCK, therein referred to as "LESSOR" and GLADIEUX FOOD SERVICES,
INC., therein referred to as "LESSEE", granting to LESSEE concession rights to
be operated at the Lubbock Regional Airport, is hereby amended by changing
Section 1 of said Agreement to read as follows:
1. Lessor does hereby lease unto Lessee the premises in the new Airport
Administration Building known as the kitchen, dining room, coffee shop, lounge,
gift shop, and related areas, all as shown on the plan of said premises, a
copy of the plans being attached to the original Contract between the parties
hereto and marked "Exhibit_A", and made a part thereof, which premises will be
located in the new Airport Administration Building, and further grants to
Lessee the exclusive liquor, restaurant and concession sales for the entire
airport terminal, including lobby of Administration Building, and including
merchandising and vending machines, cigarettes, candy, gum, cigars, cold and
hot drinks, and the rights to any and all machines above described placed upon
said premises, and except any vending machines for employees and within exclu-
sive leased areas.
Concessions granted herein are described as novelties, news, magazines,
books and tobacco items and do not include items as specialty shops, such as,
but not limited to, ladies wear, flowers, game machines, shine, book store,
smoke shop, or airline VIP club exclusively operated and controlled by an
airline, etc.
The rights granted herein to be provided by Lessee may be provided by
Lessor to another party if Lessee fails to provide the services within one
hundred fifty (150) days upon notice by Lessor.
.---The above machines which Lessee has the right to operate shall be placed
in the lobby of the Airport Administration Building or elsewhere, and the
locations must be approved by the Director of Aviation, which approval will
,not be unreasonably withheld.
Said term is to be for a full fifteen (15) years commencing on February
1, 1976, and continuing until the 31st day of January, 1991, with the right to
,renew said lease for an additional five (5) year period if agreeable with
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Lessor at that time.
In consideration thereof, the Lessee promises and agrees to pay Lessor
the amounts provided below as soon as Lessee has been notified that the expanded
and improved facilities are ready for operation, and Lessee in writing acknow-
ledges that said premises have been completed and are ready for operation.
RENTAL SCHEDULE:
Rental Rates on Sales
Amt. Lessee Spends Newspapers & Gift & Novelty Liquor up to $500,000;
for 'Equipment Periodicals Items Sales All Other Sales
Up to $50,000 5% 10% 10% 9.5%
$50,000 - $100,000 5% 10% 10% 8.2%
$100,000 - $150,000 5% 10% 10% 6.8%
$150,000 - $200,000 5% 10% 10% 5.4%
These rates are based on annual sales up to $500,000.
As sales increase, the rental rate will also increase,
with each increase of $50,000 annually above $500,000,
the rental on "All Other Sales" will increase an addi-
tional 1/4% of total "All Other Sales"; but in any
event, rental will never increase more than 4 1/2%
above the base rate.
Liquor Sales Rental will be at 10% of gross with
percentage rental rate to be renegotiated in
February, 1981, and February, 1986.
Gross sales shall include all monies received by Lessee from the sale
of any�and all articles and other things upon or from the leased premises,
and from any and all services rendered and operations and business of every
kind conducted upon or from the leased premises less the deduction of State
and Federal sales and excise taxes.
Lessee further agrees that rentals due hereunder shall be due and payable
monthly in arrears on or before the 20th day of each and every month thereafter
during the term of this agreement. Adjustments for varying percentages over
and above the minimum rentals shall be computed annually and shall be due on
or before 20 days after the anniversary date of the lease.
The original Agreement executed between the parties on the 9th day of
October 1975, shall in all things remain in full force and effect in accordance
with its terms, save and except the amendment heretofore set forth. Which
amendment shall supersede the original Contract entered into between the
parties and be effective for the balance of the term of said Agreement.
a S
' This Addendum shall be effective as of June 9, 1977.
EXECUTED ON THIS THE _fid DAY OF May , 1980.
ATTEST: CITY OF LUBBOCK
.Evelyn Ga fga,`-City S c tart'-TreasurerBILL McALISTER, MAYOR
APPROVED AS'TO,CONTENT: APPROVED AS TO FORM:
` C
Mar in Coffee, D for of Aviation 6?ohn C. Ross, Jr., City Attorney
GLADIEUX CORPORATION (formerly
ATTEST: GLADIEU FOOD SERVICES, INC
V
BY:
Secre art'
T e Vice President
CORPORATE SEAL