HomeMy WebLinkAboutResolution - 2337 - Amendment Ot Agreement - Gladiux Corp - Food Service & Concessions, LIA - 06_12_1986Resolution #2337
June 12, 1986
Agenda Item #19
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RESOLUTION
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 Amendment
by and between the City of Lubbock and Gladieux Corporation to a Food
Service Management Agreement dated October 9, 1975, for food service
operation and concessions at Lubbock Regional Airport, 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 Reso-
lution as fully copied herein in detail.
Passed by the City Council this 12th day of Tune , 1986.
B. C. McMINN, MAYOR
ATTEST:
y
APPROVED AS TO CONTENT:
r
29 A tP2�94
Marvin Coffee, Dirtgor of Aviation
APPROVED AS TO FORM:
Miche e Hart, Assistant City
Attorney
Resolution #2337
MEMO
TO: Jim Bertram, Assistant City Manager for Development Services
FROM: Marvin Coffee, Director of Aviation
SUBJECT: Agenda Comments - June 12, 1986 Council Meeting
DATE: May 23, 1986
ITEM IV.I Consider Amendment to food and beverage concession lease at the Airport.
Gladieux Corporation a subsidiary of Marriott Corporation is the current
operator of the food and beverage concession in the airport terminal.
The terminal expansion project has made some changes in areas that involve
the food and beverage operation.
The Gladieux Corporation has proposed a major renovation of the current
area and improvements to new leased areas with a capital expenditure of
over $300,000. They have also requested the lease term of twentyfive (25)
years which would expire January 31, 2001. The existing lease term with
options carries until 1996. A copy of the proposed amendment is attached.
Also attached is a lease analysis of existing and proposed.
The amended lease provides the following:
1. The existing term carries to 1991 with a five (5) year option to 1996.
The five year option will be dropped and a twentyfive (25) year term
provided which will expire in January 31, 2001.
2. 1% of gross annual sales will be put back in to keep facilities
refurbished.
3. Liquor percentage will increase from the present 10% to 12% in
February 1, 1991.
4. Allow Gladieux to use the apron side expanded area for a lounge as per
their proposal.
5. Allow Gladieux to move the existing gift shop into part of the area now
used as a lounge.
6. Allow Gladieux to expand the restaurant area into part of the existing
lounge area.
7. The second level area of the terminal now leased in the existing contract
be turned back to the Airport.
8. A lounge such as a VIP lounge on the second level not open to the public,
is a use which is not inconsistant to exclusive rights.
9. Gladieux will made an investment of $300,000 on improvements and renova-
tion.
10. Gladieux at their cost will provide supplemental air conditioning in
the leased area if equipment installed and operated by Lessee overtaxes
the general area air conditioning provided by Lessor.
11. Lessor will stub in utility services.
This follows the guidelines recommended in the lease study report.
This has also been reviewed by the Airport Board and is recommended to
City Countil.
GLADIEUX CORPORATION LEASE ANALYSIS
LUBBOCK INTERNATIONAL AIRPORT
5-23-86
(1) Lease Space (square feet) Current Proposed
Inflight Kitchen and makeup 3,652 3,652
Lounge 1,368 1,449
Restaurant 4,087 4,087
Gift Shop 546 1,368
Upper Level 2,720 -0-
TOTAL 12,373 10,556
(2) Rental Rates (current)
Restaurant (includes in-flight and vending) - 5.4%
This rate is based on annual sales up to $50,000. For every increase
of $50,000 this will increase .25% not to exceed 4.5% above the base
rate.
Newspapers and periodicals - 5%
Gift and novelty - 10%
Lounge - 10% (increases to 12% in February 1991)
(3) Lease Term
Existing: 15 years February 1, 1976 to January 31, 1991 with an option
for an additional five (5) years to January 31, 1996.
Proposed: 25 years February 1, 1976 to January 31, 2001
(4)
Historic five year
revenue from Gladieux (FY end
9/30)
AMOUNT
BASED ON SQ.FT. OF SPACE
GROSS REVENUE
1981
$66,088
5.34
$
893,118
1982
$76,885
6.21
$
1,025,119
1983
$67,666
5.47
$
1,092,313
1984
$88,261
7.31
$
1,221,575
1985
$85,092
6.88
$
1,092,165
(5)
Projected Revenue
AMOUNT
BASED ON SQ.FT. OF SPACE
GROSS REVENUE
1986
$86,100
8.16
$
1,148,000
1987
$92,734
8.78
$
1,236,459
1988
$86,495
8.19
$
1,153,267
1990
$101,168
9.58
$
1,348,910
1995
$149,685
14.18
$
1,995,794
1999
$204,778
19.40
$
2,730,371
2000
$221,467
20.98
$
2,952,897
2001
$239,517
22.69
$
3,193,558
p Resolution #2337
AMENDMENT
THIS AMENDMENT, made and executed this 12th day of
June , 1986, by and between CITY OF LUBBOCK
"Lessor" and GLADIEUX CORPORATION, a wholly owned subsidiary of
Marriott Corporation ("Lessee);
W I T N E S S E T H:
WHEREAS, Lessee and Lessor are parties to a certain Food
Service Management Agreement, dated October 9, 1975, as amended,
("Agreement"), whereby Lessee manages and operates Lessor's food
service operation and concessions at Lubbock Regional Airport;
WHEREAS, the parties now desire to further amend the
aforesaid Agreement;
NOW THEREFORE, in consideration of the promises herein
contained and for other good and valuable consideration, the
parties hereto agree as follows:
1. The last page of Exhibit A, as attached to the Agree-
ment, shall be deleted in its entirety and Lessee
hereby relinquishes the "Upper Level" to Lessor for use
as shall not be inconsistent with the "exclusive
liquor, restaurant and concession sales for the entire
airport terminal" granted to Lessee in the Agreement.
The parties hereto agree that a lounge not open to the
public is a use which is not inconsistent with the
"exclusive liquor, restaurant and concession sales for
the entire airport terminal" granted to Lessee.
2. The second "WHEREAS" clause shall be deleted in its
entirety and the following substituted therefor:
"WHEREAS, Lessor desires to enter into a restau-
rant concession agreement with Lessee, covering a
twenty-five (25) year period, commencing February
1, 1976 and continuing until January 31, 2001."
3. The fifth paragraph of Section 1 shall be deleted in
its entirety and the following substituted therefor:
"Said term is to be for twenty-five (25) years
commencing February 1, 1976 and continuing until
January 31, 2001."
4. The sixth paragraph, Rental Section, of Section 1 shall
be deleted in so far as it relates to Liquor Sales
Rental and the following substituted therefor:
"Liquor Sales Rental will equal ten percent (10%)
of gross sales until January 31, 1991 and twelve
percent (120) from February 1, 1991 and until the
Agreement terminates."
5. Section 4 shall be deleted in its entirety and follow-
ing substituted therefor:
"Lessee will make an investment of approximately
Three Hundred Thousand Dollars ($300,000) for
renovations throughout the airport terminal,
including the construction of a new cocktail
lounge ("Investment"). Should any supplemental
air conditioning be required due to the activities
of the Lessee such cost shall be borne by the
Lessee. Lessor will stub in water and sewer
lines. The amount of the Investment will be
amortized over a ten (10) year period. In the
event the Agreement is terminated prior to the
time that the Investment is fully amortized,
Lessor agrees to reimburse Lessee the unamortized
amount of the Investment within thirty (30) days
after the termination date. One percent (1%) of
gross sales, excluding in-flight gross sales, per
year will be placed into a reserve fund by Lessee
for use by Lessee to refurbish areas in the
airport terminal. In the event one percent (1%)
or any part thereof is not used by Lessee for
refurbishments within any year, the amount will be
pl n�,,d �.,tto the reserve fund. If any amounts
remain in th�= reserve fund at the termination of
the Agreement, such amounts will be the property
of Lessee."
6. This Amendment is effective April 1, 1986, and there-
after, unless amended. All other terms and conditions
contained in the Agreement shall remain unchanged and
in full force and effect, except by necessary implica-
tion.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be signed by their duly authorized officers and
their respective corporate seals to be affixed and attested, all
done the day and year first above written.
CITY OF LUBBOCK
BY: A C-A.9 0;!,_�
B. C. McMINN, MAYOR
ATTEST:
anet a Boyd, City Secretary
APPROVED AS TOO CONTENT:
Marvin Coffee, rector of
Aviation
APPROVED AS TO FORM:
Michele Hart, Assistant City
Attorney
GLADIEUX C RAT ON
BY:
64/1 CE PRESIDENT
ATTEST:
Assistary Sfcretary
- 2 -
RESTAURANT CONCESSION AGREEMENT
THIS AGREEMENT entered into this 9th day of - October ,
1975, by and between the CITY OF LUBBOCK, hereinafter referred to as
"LESSOR", and GLADIEUX FOOD SERVICES, INC., a corporation duly organized
and existing under the laws of the State of Ohio, with an office and
principal place of business located in the City of Toledo, Ohio, hereinafter
referred to as "LESSEE".
WITNESSETH:
WHEREAS, Lessor is now the owner of the Lubbock Regional Airport,
and is the owner of certain buildings and improvements erected thereon, and
WHEREAS, Lessor desires to enter into a restaurant concession agreement
with G1.adieux Food Services, Inc. covering a fifteen (15) year period
beginning on February 1st 1976, and continuing until the 31st
day of January 1991.
NOW THEREFORE THIS AGREEMENT WITNESSETH:
In consideration of the mutual covenants, promises and agreements
herein contained, the said parties hereby covenant, promise.and agree with
each other 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, private club or lounge, gift shop, and related areas, all as shown
on the plan of said premises, a copy of the plans being hereto attached
1.
marked "Exhibit A", and made a part hereof, which premises will be located
in the new Airport Administration Building, and further grants to.Lessee
the exclusive liquor (if and when legal), restaurant and concession sales
for the entire airport terminal, including lobby of Administration Building,
and including merchandising and vending machines, cigarettes, candy, aum,
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 exclusive.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
1st 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 Lessor atthat 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
2.
expanded and improved facilities are ready for operation, and Lessee in
writing acknowledges that said premises have been completed and are ready
for operation.
Rental & Investment Schedule:
Rental Rates on Sales
up to $500,000
All Other Sales Save
& Except Alcoholic Bever-
ages which May be Legally
Amt. Lessee Spends Newspapers & Gift & Novelty Private Club Sold in Places Other
for Equipment Periodicals Items - Sales Than a Private Club
Up to $50,000 5% 10% 9.5% 9.5%
$50,000 - $100,000 5% 10% 8.2% 8.2%
$100,000 - $150,000 5% 10% 6.8% 6.8%
$150,000 - $200,000 5% 10% 5.4% 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.
Private club rental will be the rate indicated
above except on those private club sales in
excess of $42,000 annually the rental shall be
as indicated for the first $42,000 annual sales
and 10'k rental shall be paid on those sales
exceeding $42,000 annually, and on those sales
exceeding $90,000 annually the rental shall be
12% of those sales exceeding $90,000 annually.
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 e•:ery
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
3
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.
If and. whcli alcoholic mixed hevcl-<t lo, in an olum tell: become lo,jal on the
Airport premises Lessee and Lessor will negotiate a perc(r:ntaye rental rate to
apply to that portion of gross sales.
2. Lessor agrees to furnish ventilation, heat, light, air-conditioning,
and water of fifteen grain (o�- less) hardness in the demised premises at
no cost to Lessee, and to bring all the lines and pipes up to the point of
connection in accordance with the plans hereto attached and hereinbefore
referred to so that the Lessee can connect its equipment and appliances to
said connections, and all without cost to Lessee, and Lessor is to keep the
equipment for the furnishing of.said heat, light, air-conditioning, and water
in good repair during the term of this lease without cost to Lessee. Lessor
further agrees to provide sewage and drainage lines including installation,
maintenance, except that which is caused by negligence of Lessee, and repair
thereof. In the furnishing of water and lights, the Lessee will exercise
prudent management to prevent waste. If waste is excessive, the Lessor may
meter or otherwise determine the extent of waste and charge Lessee for excess
usage.
3. Lessor agrees to finalize at the earliest possible time its construc-
tion program which shall be in substantial. compliance with certain floor plans
hereto attached, marked "Exhibit A" and made a part hereof. Specifically
these plans will provide for the following, at no cost to Lessee:
a) Provide adequate heating and air-conditioning for the
premises and provide necessary facilities to assure
adequate utilities for the proper operation of Lessee's
equipment.
4.
b) Provide at the discretion of Lessor certain restaurant
equipment to the extent possible within the budget
established and/or revised for said project.
c) Provide decorative and other lighting fixtues, limited
to the extent possible within the budget reference in
(b) above.
d) Provide finished walls, floors, and ceilings not to
include special decor. r
4. Lessee will furnish the additional restaurant equipment for the
new facilities to take care of the operation in the foreseeable future.
This investment by Lessee will determine the rental schedule in
Article 1 above. The investment will be not less.than $50,000 nor more
than $200,000.
5. Lessee shall provide the following services at said Airport at all
times during the term of this agreement, and at their own cost and expense.
a) First class restaurant service during all of the hours
customary for a restaurant business, including service
for all flights.
b) Inside janitorial service and electrical power and gas
used in the operation of said restaurant for cooking
purposes. only, providing that said Lessor shall cause
to be installed free of cost to Lessee, separate meters
so that said fuels are correctly metered, and said fuels,
if furnished through Lessor, are to be paid for by Lessee
at the rate set forth in ordinary utility contracts cover-
ing commercial users.
0
c) Lessee to furnish its own equipment (other than noted in
3. (b) above) utensils, dishes, silverware, china, tables
and chairs needed to operate a first class restaurant,
including bar and back bar for a private club or lounge.
d) Lessee shall furnish adequate personnel to furnish the
above mentioned services. Said personnel to be uniformly
and neatly dressed.
e) Lessee agrees to, at all times, at his own expense, keep ~
the premises neat, clean, attractive, safe and orderly,
free of waste, refuse and debris and shall provide complete
and proper arrangement for the sanitary handling and disposal
of trash, garbage and other refuse caused as a result of its
activities at the airport.
f) Lessee agrees that Lessor reserves the right to determine
the location and manner in which publications and or other
materials may be displayed in Lessee's leased area.
6. Lessee shall take good care of the property, fixtures and appurtenances
and suffer no waste, and shall at its own expense repair its own equipment
and return the premises in good order upon the termination of the use thereof,
except ordinary wear and tear, and shall at all times keep the premises clean
and attractive.
7. Said restaurant and other leased areas shall be operated in strict
compliance with the laws.of the State of Texas, all applicable security
requirements on the airport, all applicable health regulations, the ordinances
of the City of Lubbock, and the rules and regulation of the Director of
Aviation, and Lessee shall pay for all licenses and permits necessary for
6.
the operation of said restaurant and shall pay all fees, taxes and charges
assessed under State, local or Federal statutes or ordinances insofar as
they are applicable.
8. Any loss from the operation of said restaurant and other leased
areas shall be borne by Lessee, and further Lessee shall indemnify and save
harmless the Lessor from any and all claims of third parties for damages of
any kind or nature which may hereafter be made against Lessor on account of
any personal injuries or property damage resulting from the use of said
premises, and for this purpose said Lessee shall carry adequate Workmen's
Compensation Insurance and Public Liability Insurance. The policy limits
of the latter to be not less than One Hundred Thousand Dollars ($100,000.00)
for one person and Three Hundred Thousand Dollars ($300,000.00) for any one
accident involving injury to more than one person with property damage
insurance of not less than Fifty Thousand Dollars ($50,000.00) for any one
accident. The public liability and property damage insurance shall name
the City as one of the parties insured.
9. The Lessor reserves the right to make improvements and repairs
at its own expense during the term of this agreement and agrees to maintain
in good repair the space herein leased to the Lessee.
10. The Lessee agrees to keep accurate records, books and accounts,
and the Lessor or its representatives shall have the right to examine and
audit said books in order to determine the gross sales on said premises at
any reasonable time and will make such records available at Lubbock, Texas.
11. The.Lessee covenants that at the termination of this agreement
it will surrender the premises to Lessor without notice further than is
herein provided in as good condition as when entered into by said Lessee,
7.
M- a
reasonable wear and tear excepted. Lessee.will have the option at the
expiration or termination of this agreement, or any renewal thereof, to
remove the fixtures, equipment and utensils installed by Lessee, or to
receive from the City or a successor concessionaire, the undepreciated
value of its fixtures and equipment, if Lessee decides to leave said fixtures
and equipment.
12. The privileges contained herein are personal,,and the Lessee
agrees that it will not assign, sub -let or underlet the same, or any part ~
thereof, without the express consent of Lessor in writing.
13. Nothing in this agreement shall be construed as granting to Lessee
any right to operate any other businessor concession on the airport premises
except as enumerated herein. Lessor specifically reserves the right to grant
to other concessionaires the privileges not specifically contained within
the scope of this agreement.
14. Lessor is now operating a parking lot on the airport premises
from which compensation is collected for the privilege of parking motor
vehicles therein. Lessor and Lessee agree that patrons using the restaurant
and/or club facilities shall be granted the privilege of parking in the
parking facilities for a period not exceeding two (2) hours without charge,
provided there is a four dollar ($4.00) minimum purchase or such other figure
as may be mutually agreed to from time to time.
Lessor further agrees that in the event the parking privileges
are leased to any other person, that a provision providing for this free
parking as above provided shall be included in any parking lease.
Lessor also agrees to provide employee parking for Lessee's employees
at the same charge and same location as provided other airport tenant employees.
8.
15. The Lessee is and shall be an independent contractor in the
performance of this contract, and Lessee shall have no authority to incur
any obligation or indebtedness in the name of, or on behalf of Lessor, or
in any manner act for it or on its behalf.
16. If default be made in the payment of the rental above reserved
or any part thereof, or if any of the covenants or agreements herein contained
to be kept'by the Lessee, it shall be lawful for the Lessor, after thirty (30)
days previous written notice to Lessee, or at any time thereafter at the ~
election of the Lessor and without further notice, unless the Lessee .within
said thirty (30) days commences and prosecutes with due diligence the curing
of such default, to declare such term ended and to re-enter said premises or
any part thereof either with or without process of law and to expel and put
out any person or persons occupying the same, and the said premises to
repossess and enjoy as before this demise. Upon so re-entering, the Lessor
shall not be bound to have terminated and need not terminate this lease until
it so desires.
In the event that Lessee shall become insolvent or shall be
adjudged a bankrupt or file proceedings under Chapter 11 of the Bankruptcy
Act, then, and in that event, at the option of the Lessor, said Lessor shall
have the right to declare this lease terminated.
17. It is further agreed that Lessee, its agent and employees wil_ not
discriminate against any person or class of persons by reason of age, sex,
race, color, creed or national origin in providing any services or in the
use of any of its facilities provided for the public, in any manner
prohibited by Part 15 of the Federal.Aviation Regulations. The Lessee
g
further agrees to comply with such enforcement procedures as the United
States might demand that the Lessor take in order to comply with the
Sponsor's Assurances.
Lessee agrees to not discriminate against any employee or applicant
for employment because of age, sex, race, color, creed or national origin.
The Lessee agrees to take affirmative action to insure that applicants are
employed and that employees are tested during employment without regard to
their age, sex, race, color, creed or national origin. Such action shall
include, but not be limited to, employment, upgrading, demotion or transfer,
recruitment, lay-off, rates of pay or other forms of compensation, and
selection for training, including apprenticeship.
18. Lessee shall indemnify fully and save harmless City, its officers,
agents and employees from any and all claims and actions and any and all
expenses incidental to the investigation and defense thereof, based upon
or arising out of damages or injuries to third persons Or their property,
caused by the fault or negligence of Lessee, its agents or employees in the
use or occupancy of the premises and privileges hereunder.
19. The failure of the Lessor or the Director of Aviation to insist
in any one or more instances upon performance of any of the terms or
conditions of this lease shall not be construed as a waiver or relinquish-
ment of the future performance of any such terms or conditions by the Lessee's
obligation with _respect to such future performance shall continue in f;:ll
force and effect.
10.
IN WITNESS WHEREOF, the parties have hereunto set their hands and
signatures the day and year first above written.
Signed and Acknowledged
in the Presence of:
ATTEST:
Secretary, City of bbock
APPROVED:
Dir(ktor of Aviatio
ATTEST:
Secretary
CORPORATE SEAL
11.
CITY OF LUBBOCK
By / L ass
Mayor, City of Lubbock
APPROVED AS TO FORM:
City Attorney c
GLADIEUX FOOD SERVICES, INC.
j
B
Y
Title J G '-e
�•-g - r y RF ^LUTION N50-8 - 5/22/80
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"0
ADDENDUM TO CONTRACT
THE STATE OF TEXAS §
COUNTY OF LUBBOCK §
The Contract entered into the 90 day of October, 1975, by and between
the CITY OF LUBBOCK, therein referred to as "LESSON'.' 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 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 UirecCor of Aviation, which approval will
not be unreasonably withheld.
Said term is to be for a .full fiftee❑ (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
Lessor at that Lime.
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 Lhat said premises have,beui compleLed and are ready for operation.
RENTAL SCHEDULE:
Amt. Lessee Spends Newspapers &
for Equipment Periodicals
Up to $50,000 5%
$50,000 - $100,000 5%
$100,000 - $150,000 5%
$150,000 - $200,000 5%
Rental Rates on Sal.et
Gift & Novelty Liquor up to $500,0.00;
Items Sales All Other Sales
10% 10% 9.5%
10% 10% 8.2%
10% 10% 6.8
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. AdjustmenLs 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 Lhe lease.
The original Agreement executed between the. parties on the 9th day of
October 1975, shall in 'all. thfngs7 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.
This Addendum shall be OffeCtive as
EXECUTED ON THIS THE 22nd DAY OF May
ATTEST:
Evelyn Gaff City ec ry-Treasurer
APPROVED AS TO CONTENT:
Marvin Coffee,"Director of Aviation
ATTEST:
Secretary
CORPOR&YE SEAT.
of .June 9, 1977.
1980.
CITY OF LUBBOCK
BILL McALISTER, MAYOR
APPROVED AS TO FORM.
C 2i
hn C. Ross, Jr., City Attorney
GLADIEUX CORPORATION (formerly
GLAULEUX FOOD SERVICES, INC.)
7
BY
7L e Vicp Prp-giApnt