HomeMy WebLinkAboutAdden 2AMENDMENT NO 2 TO MAPLEWOOD GOLF COURSE CLUBHOUSE
LEASE AND CONCESSION AGREEMENT
LAG-20-028
THIS AMENDMENT NO. 2 TO AGREEMENT LAG-20-028, is made this __ day of
2022 (Effective Date) is by and between the City of Renton (City), a
Washington municipal corpora�ion, and Northwest Restaurant Experience, Inc.
(Concessionaire). The City and Concessionaire are referred to collectively in this
Agreement as the "Parties."
WHEREAS, the City engaged the services of Concessionaire under LAG-20-028
(Agreement) dated November 23, 2020 that replaced LAG-15-002 dated March 20,
2015 to provide concession services to the Golf Course Clubhouse and entered into
Amendment No 1 dated March 1, 2021; and
WHEREAS, due to the COVID-19 pandemic, Concessionaire's business within
the Concession Premises has been severely impacted, and the City and
Concessionaire desire to enter into this First Amendment to adjust the rent paid
and operating conditions related to the lost revenues and ability to operate due to
any pandemic related restrictions and requirements.
WHEREAS, due to ongoing effects of the COVID-19 pandemic and
"vaccination verification" requirements for restaurants and banquet facilities
and the loss of banquets and patio usage, the Concessionaire has had further
financial impacts and the Parties wish to revert the rental amount to that of
Paragraph C, 4, A, 3 at the 50% Partial Closure Amount and revised as * underlined
below in Paragraph C, 4, A, 4 .
NOW THEREFORE, it is mutually agreed upon by the Parties that LAG-20-028 is
amended as follows:
1.Paragraph C Consideration -is amended to add the following additional
Paragraph 4:
4.Due to Pandemic restrictions the parties agree to adjust the
Consideration /monthly payments as follows:
A.The rent and utilities will be based on a tiered approach as
pandemic restrictions have varied over the past year and will continue
to vary over time:
LAG-20-028 Amendment No 2
1.Full Closure.
Defined as any time pandemic related restrictions on
restaurant or bar operations prevent indoor service.
Page 1 of 7
LAG-20-028, Adden #2-22
t
18th
February
LAG-20-028 Amendment No 2
•Pay $500 per month rent
•All utilities will be waived
2.25% Partial Closure.
Defined as any time pandemic related restrictions allow indoor
service but require restaurant or bar operations to occur at
reduced seating or service capacity is restricted to operate at
25%.
•Pay $500 per month rent, plus
•Utilities will be reduced by 50% of the restaurants
allocated utilities. The utilities will not be paid at
this time but will be added to a balance due and will
be repaid when operations have no further
occupancy restrictions.
3.50% Partial Closure.
Defined as any time pandemic related restrictions allow indoor
service but require restaurant or bar operations to occur at
reduced seating or service capacity is restricted to operate at
50% or more.
•Pay $1000 per month rent, plus
•In addition, if the Concessionaire is able to have
banquet service even at a reduced capacity, the
rent due for the banquet service will be 5% of gross
sales of banquets, plus
•Utilities will be reduced by 25% of the restaurants
allocated utilities. The utilities will not be paid at
this time but will be added to a balance due and will
be repaid when operations have no further
occupancy restrictions.
4.When there are no COVID occupancy restrictions to
operations.
•Pay rent based on percentage of sales per lease
agreement, plus
•Pay Utilities allocated per the lease agreement, and
•Begin repayment schedule of back rent and utilities
due. It is the intention of the parties that monthly
back rent and utility payments are abated with no
interest or penalty for any month during which any
pandemic related occupancy restriction is in place
Page 2 of7
on concessionaire operations by any government
entity.
•* For Amendment No 2: Effective the date of
Amendment No 2: The Concessionaire rent
payment amounts are reverted back to section
Paragraph 3 50% above:
a.from November 1, 2021 until March 1, 2022
(or sooner if vaccination verification mandate
changes or is reduced)
b.Pay $1000 per month rent, plus
c.In addition, if the Concessionaire is able to
have banquet service even at a reduced
capacity, the rent due for the banquet service
will be 5% of gross sales of banquets.
d._Utilities will be reduced by 25% of the
restaurants allocated utilities. The utilities will
not be paid at this time but will be added to a
balance due and will be repaid when operations
have no further occupancy restrictions.
B.Leasehold tax.
For purposes of calculating the leasehold taxes, the fair market value
of the rent will be adjusted as follows:
1.Allowed to operate at 25% will be a leasehold tax of
$160.50 and was calculated by adjusting the fair market value
of the value to $1250 per month. This is 25% of the average
rent due based on sales figures for the months of April -
September.
2.Allowed to operate at 50% or more will be at a
leasehold tax of $321.00 and was calculated by adjusting the
fair market value of the value to $2550 per month. This is 50%
of the average rent due based on sales figures for the months
of April -September.
C.For the Months of January -March 2020.
Concessionaire owes the rent, leasehold taxes and utilities as
prescribed in the lease agreed to November 2019. Some, but not all
LAG-20-028 Amendment No 2 Page 3 of 7
these fees have been paid to date. This is made up of the amounts as
set forth in EXHIBIT A-1, to be paid as set forth in paragraph F below
for Back Due Payment Amounts below.
D.For the Months of April and May 2020
Due to the Pandemic restrictions the City waives the rent, LET and
utilities due for the months of April, and May 2020.
E.For the months after May beginning June 2020.
Concessionaire rent, LET and utilities will be adjusted and will follow
the tier outlined in section A above as follows Payment Amounts are
set forth on EXHIBIT A-1.
1.June 2020 through November 2020 will follow rent as
outlined in 4(A)(2) and will be repaid pursuant to
Paragraph F Back Due Payments Amounts below.
2.December 2020 through February 2021 will be 4 A (1) and
will be repaid pursuant to paragraph F Back Due Payments
Amounts below.
3.Beginning March 1, 2021 the Concessionaire rent, LET and
utilities will be adjusted and will follow the tier outlined in
section 4 (A) (1)-(4)above for the appropriate Covid
restrictions category and due and owing on the pt of each
month.
F.Back Due Payment Amounts.
Due to the pandemic with significant reduction in gross receipts and
an ability to pay - a payment schedule for back due amounts along
with utilities incurred from June 2020 until there are no further
pandemic related occupancy restrictions per 4 (A) (1)-(4) above to the
operation will be repaid over a 24 month period
The Back Due Payment amounts are set forth in EXHIBIT A-1 Back Due
amounts for Utilities during tiers 4 (A) (1)-(3) above will continue to
accrue and will be updated Exhibit A-1 spread sheets provided the
City. * Exhibit A-1 may be updated as needed for future costs without
amendment to this agreement and provided by the City to the
Concessionaire.
2.Operations and Exhibit F Hours of Operation are modified to add the
following:
LAG-20-028 Amendment No 2 Page 4 of 7
For any month during which any pandemic related restrictions are in effect
the hours of operation and services provided under any agreement between
the parties will be determined at the sole discretion of the concessionaire and
such determinations shall not be deemed a violation of any agreement
between the parties. The Golf Course retains the ability to ask the
Concessionaire to open for special events (i.e. tournaments) and to operate
additional hours. The Parties will work together to adjust the hours of
operation for the River Rock Grill and the services provided based upon and
in compliance with the applicable Orders, Rules and Regulations in place
relating to the Covid-19 Pandemic.
3.All terms of the Agreement not explicitly modified herein shall remain in full
force and effect and such terms shall apply to this Amendment as if fully set forth
herein.
IN WITNESS WHEREOF, the Parties have voluntarily entered into this Amendment as
of the effective date above.
CITY OF RENTON
By:, __________ _
Armondo Pavone, Mayor
Date:. ___________ _
Attest
Jason Seth, City Clerk
Approved as to form
Shane Moloney
Renton City Attorney
clb (584) Amend 21-31-2022
LAG-20-028 Amendment No 2 Page 5 of 7
CONCESSIONAIRE
Date: o? - /7- Z--Z-
(approved via email from Cheryl Beyer)
02/18/2022
John B. Parks
STATE OF WASHINGTON ) ss. COUNTY OF KING )
I certify that I know or have satisfactory evidence that ______ is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the ____ of The City of Renton, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.
STA TE OF ___;;,w..,;:;__A __ _
, ., .. , " 1,
)) ss. COUNTY OF _l'-__ ,_'-0 __
Dated: -----------� 2022.
(Name) NOTARY PUBLIC in and for the State of Washington, residing at l tMy commission expires "'' UJZ,,.?,
I certify that I know or have satisfactory evidence� Jo b n Pa...'t" 1:::6 is the person whoappeared before me, and said person acknowledged tha�he signed this instrument, on oath stated that $'she was authorized to execute the instrument and acknowledged it as the _..,Q,.,.!..,1 ...,IV\.U".--='-"-------of NORTHWEST RESTAURANT EXPERIENCE, INC., to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument.
LAG-20-028 Amendment No 2 Page 6 of7
Dated: J4...f>vu� L 1 , 2022.
(Name) NOTARY PUBLIC in and for the State of --=.l,J=.....;.,)'t....;,__, residing at � / My commission expires G µq l.ll.-3
Armondo Pavone
Mayor
02/18/2022
Kent
Exhibit A-1
*Exhibit A-1 remains unchanged and in effect by Amendment No. 2
LAG-20-028 Amendment No 2 Page 7 of 7