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Home My WebLink About00612 - CA ONE SERVICES SPACE USE AIRPORT CONCESSION FRED HARVEY GIFT SHOP RESTAURANT CT CONCESSION AIR (formerly Sky Chefs Airport Concessions) MAILING ADDRESS EXECUTIVE OFFICES P.O. Box 619915 2505 N. Highway 360 OFW Airport, TX 75261 Suite 750 (817) 633-9300 Grand Prairie, TX 75050 September 3, 1937 Mr. Allen F. Smoot Director Transportation & Energy 3400 E. Tahquitz - McCallum Way Palm Springs, Ca. 92262 Dear Mr. Smoot: As you know, on February 5 of this year, Delaware North Companies purchased the Restaurant and Concessions Division of Sky Chefs, Inc. Several months later the name Concession Air Corporation was chosen for this airport concessions subsidiary. Subsequently, Delaware North decided to combine the operating management of its Air Terminal Services subsidiary with that of Concession Air . Accordingly, both subsidiaries will now do business as "'Con_c_ession__ Air" . However, Air Terminal Services has not changed its corporate status, corporate name or ownership. We appreciate your continued support of our operation. We expect the combined synergies of both companies to provide even greater service in the future. Sincerely, Donald W. M" r y President and Chief Executive Officer DWM:gg — SEP 141987 TRANSPORTATION. & ENERGY CA One Services, Inc. Su Supple Space Use Agr 7-1-97 to 6-31-99 AGREEMENT #612 R1725, Dir Aviation signed, 9-8-9-, EXTENSION OF SUPPLEMENTAL SPACE USE AGREeivitivT — --THIS EXTENSION OF SUPPLEMENTAL SPACE AND USE AGREEMENT, made and entered into as of the , day of „tlgttstzj/� 1997, by and between the CITY OF PALM SPRINGS, a municipal corporation organized and existing under the laws of the State of California, hereinafter referred to as "CITY" and CA One Services, Inc., a corporation organized and existing under and by virtue of the laws of the State of Virginia, hereinafter referred to as "CAI ". WITNESSETH: WHEREAS, CITY owns and operates an airport known as the Palm Springs Regional Airport, situated in the City of Palm Springs, County of Riverside, State of California, hereinafter referred to as "Airport"; and WHEREAS, CAI is operating at the Airport under separate agreement, "Indenture of Lease" (Agreement #612), and wishes to utilize terminal space at the Airport; and WHEREAS, CAI wishes to extend the term of the original Supplemental Space and Use Agreement to Agreement #612, as approved by City Council by R17254 on November 3, 1993: NOW, THEREFORE, for and in consideration of the premises, and of the covenants and conditions hereinafter contained to be kept and performed, the parties hereto do agree as follows: ARTICLE I PREMISES, RIGHTS AND PRIVILEGES CITY hereby offers to CAI and CAI takes from CITY, for its exclusive use except as otherwise noted, certain premises located in the terminal building, consisting more particularly of the following, to-wit: Baggage Claim wing office space (Suite All 1 .1) containing 114 square feet as designated on Exhibit "A," attached hereto and made a part of this Agreement. ARTICLE II TERM OF AGREEMENT The term of this Agreement shall be for a period commencing on July 1, 1997, and terminating on June 31, 1999, with the Agreement by both parties that the Agreement can be terminated for any reason by either CITY or CAI on thirty days' written notice. ARTICLE III RENTALS, FEES AND OTHER CHARGES The rental rate for Suite Al 11 .1 shall be computed at the rate of $16.06 per square foot per annum and shall be $152.48 per month, payable by CAI to CITY, beginning July 1, 1997, and the first day of each month thereafter. Rental adjustments shall be based on Article IV of "Airline Use Agreement," a separate agreement to which LESSEE is not a party. ARTICLE IV IMPROVEMENTS AND ALTERATIONS No improvements, alterations or additions other than those heretofore installed or approved by CITY, shall be made into or upon the demised premises by CAI without the written consent of CITY being first obtained. f ARTICLE V MAINTENANCE AND OPERATION Section I. Utilities: CITY shall maintain heating and air conditioning systems in good condition and repair. Section 2. Repair and Maintenance: CAI shall, at its sole cost and expense, maintain the demised premises, including all interior improvements, constructed or installed by CITY or CAI therein, except heating and air conditioning ducts and systems and utility maintenance, and shall keep said premises in good condition and repair in a neat, clean, sanitary and sightly condition, and shall furnish janitorial service. Section 3. Trash, Garbage and Other Refuse: CAI shall provide a complete and proper arrangement for the adequate, sanitary handling and disposal, away from the Airport of all trash, garbage and other refuse caused as a result of the operation of its business. CAI shall provide and use suitable, covered metal receptacles for all garbage, trash and other refuse on or in connection with the demised premises. Piling of boxes, cartons, barrels or other similar items in an unsightly or unsafe manner, on or about the demised premises, is forbidden. ARTICLE VI INSURANCE It is agreed by the parties that the broad insurance provisions provided under CA1 's Indenture of Lease Agreement #612," a separate agreement, shall also apply to the additional space provided for herein. ARTICLE VII MISCELLANEOUS Section 1 . This Agreement shall be construed and enforced in accordance with the laws of the State of California. Section 2. The mailing address of City shall be P.O. Box 2743, Palm Springs, California, 92263-2743, until written notice of change thereof has been given to Lessee. Section 3. The mailing address of CAI shall be CA One Services, Inc., One Delaware North Place, 438 Main Street, Buffalo, New York 14202, until City has received written notice of change thereof. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on this & day of AugasL- 1997 . CITY OF PALM SPRINGS, CALIFORNIA L,' f?,-Aek ee; rector of Aviation CA One Services, Inc i By: 64 / �,l''3`i;.o Vl�II., BY TH�lE,-,OTY E..rD l'.J N Q 1L �2', e/ COYidk��a. P,9td.� 5 o� i0 , s MINUTE ORDER NO. 3850 APPROVING AMENDMENT NO. IA TO INDENTURE OF LEASE AGREEMENT NO. 612, REDEFINING THE EXCLUSIVE RIGHTS OF AIR TERMINAL SERVICES, INC. , TO PROVIDE FOOD, BEVERAGE AND CONCESSION SERVICES AT THE AIRPORT. I HEREBY CERTIFY that this Minute Order, approving Amendment No. lA to Indenture of Lease Agreement: No. 612 between the City of Palm Springs, California, and Air Terminal Services, Inc. , redefining the exclusive rights of Air Terminal Services, Inc. , to provide food, beverage and concession services at the Airport, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 17th day of December, 1986. C -L ITH SUMICH City Clerk - RUNWAY 12/ 3Q ■ ■ - ❑ ❑ ■ 51 (E) p a -, XI G \kr \ y SI(F) (F) _ p EXINDCON i ^! {- GMENTE CIRCLE D� GH q LIT INC) TF- ( F) Gi T4yy. r•�1��11.-a ��_ r / -P POSEDi— �C4 q v Y PA NG �_i_ ( \ \ IA RK••Fi 5tF-n 241, 1 I i I J~ •, U iq g 4W _ �TF � 4jgCg9/� Air Terminal Services, Inc. Amend 4 - Add Holdroom, Recapt & Reloc Certain Facil AGREEMENT #612 MO 4762, 5-1-91 AMENDMENT NO. 4 to INDENTURE OF LEASE AGREEMENT NO. 612 between THE CITY OF PALM SPRINGS and AIR TERMINAL SERVICES, INC. �s INDENTURE OF LEASE &GRDEHE@T NO. 612 WHEREAS Indenture of Lease Agreement Mo. 621 dated September %3, 1968, was entered into this day of ' 1991, by and between the City of Pa1m Springs, California, (hereinafter referred to as »GI7T: or "LCSSUX» ), and Fred Harvey, Inc. ' providing food' beverage, gift shop, newsstand and related facilities at the Palm Springs Regional Airport; and WHEREAS Air Terminal Services, Inc. , (hereinafter referred to as »A?Sn or ,LESSEE ' ) is the successor-in-interest to Fred Harvey, Inc. , by assignment; and N8EbC&S said Agreement has been amended by previous amendments, by Assignment and Amendment to the indenture of Lease Agreement No. 612, dated July 20^ 1877; by Amendment to the Indenture of Lease Agreement No. 612/ doted November 3, 1982; by Amendment No. 2 to indenture of Lease Agreement No. 612, dated October 15' 1986; by Amendment 1A to Indenture of Lease Agreement No. 612, dated December 17, 1986; and by Amendment No. 3 to Indenture of Lease Agreement No. 612, dated September 2' 1987; and WHEREAS the Agreement dated September 12, 1968' as amended, constitutes the entire agreement among the parties and said agreement, as amended, shall be referred to as the 'Agreement' "; and WHEREAS the parties hereto desire to further amend the Agreement upon the terms and ouoJiijuos hereinafter stated, NOW THEREFORE, in consideration of the premises, mutual covenants herein contained, and other good and valuable onoaidezatiru/ the parties hereto do mutually covenant and agree, as follows: GeEtiyn_;- Article I shall be deleted in its entirety and the following language substituted therefor: vARTDlCLJE-I »IPRElISE�l «1, Terminal "LESSOR hereby rents, leases and demises Lo LESSEE and LESSEE hires, leases and takes from LESSOR, on the terms and condition set forth, those certain premises designated Restaurant tying, Flight Kitchen, Lint Shop, and Ice Cream Parlor, being more particularly described as shown on Exhibit 1, attached. Q. Temporary, Modular Holdroom Premises. "In addition, commencing on or about November .1, 1991, LESSOR rents, leases and demises and LESSEE hires, leases and takes from LESSOR on the terms and conditions set forth space for a Cocktail Lounge in -the temporary, modular holdrooms (See Exhibit No. 2). Said letting shall continue for only so lone as said temporary, modular holdrooms are in use at the Airport, but, in no event shall occupancy extend beyond the term of this Agreement. LESSOR shall erect, construct and install all improvements, valls, floors, :finishes, ceilings, lighting and utility services in the temporary, modular holdroom Cocktail Lounge in a manner so as to enable LESSEE to use the Cocktail Lounge for its intended business purposes, i.e. , the sale of food, alcoholic and/or other beverages, all at LESSOR's cost. LESSEE shall be responsible for providing stools, chairs and tables, at LESSEE's cost. If occupancy of the temporary, modular holdroom Cocktail Lounge ceases prior to April 30, 1994, then LESSEE shall be entitled to a one-time rental credit of $1.5, 000. " Section 2. Article XXIV is hereby added to read, as follows: "ARTICLE XXIV "RECAPTURE AND/OR ENLARGEMENT OF CERTAIN PREHISES - RELOCATION Q. On or about April 1, 1991, LESSOR shall recapture all facilities occupied by LESSEE in premises used for Cocktail Lounge and Dining on the second floor of the Terminal Building. LESSOR shall be responsible for all demolition of the facilities at no cost to LESSEE with the exception of portable items of fixtures, furniture and equipment, as those terms are used in Article III of the Agreement (hereinafter "fixtures and Equipment" ) which may be selected at LESSEE's direction, and may be removed by LESSEE prior to April. 15, 1991. Fixtures & Equipment not removed by LESSEE shall be demolished by LESSOR at no cost to LESSEE. LESSEE specifically acknowledges that it has no claim to and hereby - 2 - waives any right which Nay exist to unamortized investment related to the second floor of the Terminal Building or to any Fixtures & Equipment not removed by LESSEE. Q. By April 1, 1991, LESSEE shall remove all exterior, free-standing storage bins and the Walk-in-Bor from the area north and east of the existing Flight Kitchen at no cost to LESSOR. 173. On or about April. 1, 1991, LESSOR shall recapture the Patio Cocktail Lounge space. LESSOR shall be responsible for demolition of the facilities at no cost to LESSEE, with the exception of portable items of Fixtures and Equipment which may be removed by LESSEE prior to April 15, 1991. Fixtures & Equipment not removed by LESSEE shall be demolished by LESSOR at no cosi. to LESSEE. LESSEE specifically acknowledges that it has no claim to and hereby waives any right which may exist to unamortized investment related to the Patio Cocktail Lounge or to any Fixtures L Equipment not removed by LESSEE. "4. LESSOR may utilize the Fixtures and Equipment removed by LESSEE or any other items of Fixtures & Equipment not removed by LESSEE from the Patio Cocktail Lounge for the temporary modular holdroom Cocktail Lounge premises. LESSOR shall provide a storage area for Fixtures E Equipment removed by LESSEE or LESSOR from the Patio Cocktail Lounge at no cosy. to LESSEE from the time of removal until the new temporary, modular holdroom Cocktail Lounge is completed. 05. LESSOR shall relocate the existing grease 'trap in the Restaurant Wing kitchen area and install a new grease trap and relocate certain of LESSEE's Fixtures & Equipment in the Restaurant Wing kitchen area, all. at no cost to LESSEE. LESSOR and LESSEE shall cooperate so as to ensure minimal disruption to LESSEE's operations and to ensure that the relocations are completed as eNpeditiously as possible. 96. LESSOR shall erect, install and construct a new partition to create a different bar seating area for the Restaurant Wing bar facility, all at no cost to LESSEE, generally in the area described on Exhibit 3. LESSOR'S erection, installation and construction of such new partition shall include finished walls, ceilings and flooring of a finish consistent with the Restaurant Wing bar area and the Airport decor. LESSEE shall be responsible for providing tables and chairs. '' 3 Section 3. Article ,^,IG, Section a. shall be deleted in its entirety and the following _Language substituted therefor: "a. Cooperate with LESSOR in establishing operating hours, consistent with good business practices, in the public interest. In any event, LESSEE's operating hours shall be reasonable in relation to the requirements of regularly scheduled, commercial airline arrivals and departures, except that food and beverage services shall be offered at all times that the Terminal is open to the public. It is acknowledged that good business practices may provide that some services are available during all. operating hours, or times that the Terminal is open to the public, although not all facilities are opened. It is agreed that 'express' or snack food and beverage services may be made available during early morning or late evening. It is further acknowledged that operating hours may be adjusted during seasonal periods to reflect the requirements of commercial airline departure traffic. " Section 4. LESSEE shall operate and maintain inflight catering services at the Airport for the purpose of providing such services to commercial airlines, fixed based operators and charter aircraft services (hereafter collectively called "Certified Passenger Airlines°' ) upon request of the owners or agents of such airlines or aircraft. It, is acknowledged that LESSEE's rights are expressly subject to the right of Certified Passenger Airlines to serve, at their own expense, food and beverages to passengers and crews aloft. It is acknowledged that neither LESSOR nor LESSEE may require or mandate that Certified Passenger Airlines use LESSEE's in1l.ight catering services at the Airport. "Section 5. All other terms and conditions of Agreement Ro. 612, as amended., are ratified and shall remain in full force and effect except as expressly amended herein. - a - IN WITNESS WHEREOF, ATS and CITY have enecu`od and entered into this Amendment No. 4 to Indenture of Lease Agreement No. Gt i as = the date first written above. ATTEST: CIT , 0 -Al SPR GS, F .IFORMA By , .City Clerk Ianaa er AIRzzzj INC. By APPROVED AS TO FORM RUTAN & TUCKER 1 Da id J, A eshire City Attorney APi PgOVED 4S-n7-0--C01.�fEIHT: Allen F. Smoot Director. of Aviation .......... _ 'i State of JAV 0V L On this the 05 day of Drn 199 1 before ( CZ' County of 7;�1d'- me, : —d I C w!1 `�c i,8 r-e-r- - J the undersigned Notary Public, personally appeared Dennis J. Szefel personally known to we _ proved to roe on the basis of satisfactory +. evidence to be the person(s) who enecuted the within instrument as President or on behalf of the corporation therein named and acknorledged to me that the corporation EILEETIBEYRER euecuted it. * at&,R"igxateofNewyA VITMESS my hand and official seal, q alifamErie County � .p�d� .• `* Any Ca:,micsion Expires Notary's Signature M6'ROVED By THE CITY COUNCIL BU�Es. G^9 5 - Air Terminal Services, Inc. Supplemental Space Use Agr AGREEMENT #612 R17254, CM signed 11-3-93 SUPPLEMENTAL SPACE USE AGREEMENT ✓ THIS SUPPLEMENTAL SPACE AND USE AGREEMENT, made and entered into as of the day of �� . ,� 1993, by and between the CITY OF PALM SPRINGS, a municipal corporation organized and existing under the laws of the State of California, hereinafter referred to as "CITY" and Air Terminal Services, Inc., a corporation organized and existing under and by virtue of the laws of the State of Virginia, hereinafter referred to as "ATS". WITNESSETH: WHEREAS, CITY owns and operates an airport known as the Palm Springs Regional Airport, situated in the City of Palm Springs, County of Riverside, State of California, hereinafter referred to as "Airport"; and WHEREAS, ATS is operating at the Airport under separate agreement, "Indenture of Lease" (Agreement #612), and wishes to utilize terminal space at the Airport: NOW, THEREFORE, for and in consideration of the premises, and of the covenants and conditions hereinafter contained to be kept and performed, the parties hereto do agree as follows: ARTICLE I PREMISES, RIGHTS AND PRIVILEGES CITY hereby offers to ATS and ATS takes from CITY, for its exclusive use except as otherwise noted, certain premises located in the terminal building, consisting more particularly of the following, to-wit: Baggage Claim wing office space (Suite A111 .1) containing 114 square feet as designated on Exhibit "A," attached hereto and made a part of this Agreement. ARTICLE II TERM OF AGREEMENT The term of this Agreement shall be for a period commencing on January 1, 1994, and terminating on June 31, 1995, with the Agreement by both parties that the Agreement can be terminated for any reason by either CITY or ATS on thirty days' written notice. ARTICLE III RENTALS, FEES AND OTHER CHARGES The rental rate for Suite Al 11 .1 shall be computed at the rate of $16.05 per square foot per annum and shall be $152.48 per month, payable by ATS to CITY, beginning January 1 , 1994, and the first day of each month thereafter. Rental adjustments shall be based on Article IV of "Airline Use Agreement," a separate agreement to which LESSEE is not a party. ARTICLE IV IMPROVEMENTS AND ALTERATIONS No improvements, alterations or additions other than those heretofore installed or approved by CITY, shall be made into or upon the demised premises by ATS without the written consent of CITY being first obtained. v ! � ARTICLE V MAINTENANCE AND OPERATION Section I. Utilities: CITY shall maintain heating and air conditioning systems in good condition and repair. Section 2. Repair and Maintenance: ATS shall, at its sole cost and expense, maintain the demised premises, including all interior improvements, constructed or installed by CITY or ATS therein, except heating and air conditioning ducts and systems and utility maintenance, and shall keep said premises in good condition and repair in a neat, clean, sanitary and sightly condition, and shall furnish janitorial service. Section 3. Trash. Garbage and Other Refuse: ATS shall provide a complete and proper arrangement for the adequate, sanitary handling and disposal, away from the Airport of all trash, garbage and other refuse caused as a result of the operation of its business. ATS shall provide and use suitable, covered metal receptacles for all garbage, trash and other refuse on or in connection with the demised premises. Piling of boxes, cartons, barrels or other similar items in an unsightly or unsafe manner, on or about the demised premises, is forbidden. ARTICLE VI INSURANCE It is agreed by the parties that the broad insurance provisions provided under ATS's Indenture of Lease Agreement #612," a separate agreement, shall also apply to the additional space provided for herein. ARTICLE VII MISCELLANEOUS Section 1 . This Agreement shall be construed and enforced in accordance with the laws of the State of California. Section 2. The mailing address of City shall be P.O. Box 2743, Palm Springs, California, 92263-2743, until written notice of change thereof has been given to Lessee. Section 3. The mailing address of ATS shall be Air Terminal Services, Inc., One Delaware North Place, 438 Main Street, Buffalo, New York 14202, until City has received written notice of change thereof. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on this /y� day of��s�r «�, 199� (/ ATTEST: CITY OF-PALM SPRINGS, �ALIFORNIA By�. r. : r. _ Yam✓ , t��' City Clerk d"tYYManager \ REVIEWED & APPROVED `— Air Terrgx al Servia_eS IJR(-./) T- AMCNED BY THE CITY COUNCIL Pairs. € Grn�ar ( AL,;/� EXHIBIT "A" BAGGAGE CLAIM WING �s G� AREA OF BLOWUP DEMISED PREMISES / APPROXIMATELY 1 14 SQ. FT. LOCATION SHOWN ON REDUCED SCALE VIEW DRAWING NOT TO SCALE Air Terminal Services, Inc. Fifth Amend - Indenture of Lease Agr. AGREEMENT #612 M05278, 11-3-93 FIFTH AMENDMENT TO INDENTURE OF LEASE AGREEMENT NO. 612 THIS FIFTH AMENDMENT TO INDENTURE OF LEASE AGREEMENT No. 612 ("Fifth Amendment") is entered into this 3" day 1993, by and between the CITY OF PALM SPRINGS, a municipal corporation ("LESSOR") and AIR TERMINAL SERVICES, INC. ("LESSEE"). RECITALS A. LESSEE assumed that certain Indenture of Lease Agreement No. 612 July 21, 1977. B. LESSOR and LESSEE mutually agree to amend said Agreement No. 612 to incorporate a Disadvantaged Business Enterprise section, increase news & gifts concession fee percentages, and to establish upgrades of existing concession facilities. NOW, THEREFORE, the parties hereto agree as follows: 1 . "Article XXV Disadvantage Business Enterprise" is hereby added to read as follows: ARTICLE XXV DISADVANTAGED BUSINESS ENTERPRISE A. "This agreement is subject to the requirements of the U.S. Department of Transportation's regulations, 49 CFR part 23, Subpart F. The concessionaire agrees that it will not discriminate against any business owner because of the owner's race, color, national origin, or sex in connection with the award or performance of any concession agreement covered by 49 CFR part 23, Subpart F. B. The concessionaire agrees to include the above statements in any subsequent concession agreements that it enters and cause those businesses to similarly include the statements in further agreements." 2. Article I. Premises, Section 1. Terminal Building Premises, is hereby clarified by adding the following: "The gift shop shall be converted to a southwest gift shop. The ice cream parlor shall be converted to a sportswear shop. The patio newsstand shall be replaced by a news and gift kiosk. The facilities required by Paragraph No. 2 of this section, in the modular hold rooms, shall be expanded to include a golf pro shop. 3. Article ll, Construction, is hereby amended by adding Paragraph No. 7 to read as follows: 7. Lessee, at its expense, shall remodel the existing gift shop to accommodate southwest gifts; shall remodel the existing ice cream parlor to accommodate a sportswear shop; shall provide a news and gift kiosk, and shall provide the necessary furniture, fixtures and equipment for the golf pro shop. LESSOR, at its expense, shaii consiruct the goif prop shop space in the temporary hold room as well as develop a putting green immediately outside of the shop. The putting green shall be operated as a complimentary facility, (no customer charges). LESSEE shall receive a rental credit of $3750 per month commencing January 1, 1994 and ending December 31, 1994; a 12 month credit. . w w 4. Article VI, Rental and Concession Payments, Percentage Rental, Merchandise, is hereby amended to read as follows: Merchandise 10% for all sales up to $500,000 gross receipts 12% for all sales in excess of $500,000 gross receipts 5. Article XIII, Lessee's Rights is hereby amended by adding the following paragraph: "LESSEE" grants the LESSOR the authority to operate up to four gift carts at the Airport, but no more than two carts for the winter of 1994. Said carts shall be allowed to sell specialty gift items not competitive with items offered by LESSEE, such as candy (fresh from local company) toys, flowers, stationery items, art (work of a local artists), specialty candles, ties, and children's clothes. LESSOR shall endeavor for the carts to be operated by Disadvantaged Business Enterprises. 6. All other terms and conditions of Agreement No. 612 are ratified and shall remain in full force and effect except as expressly modified herein. IN WITNESS WHEREOF, the Fifth Amendment to Lease Agreement No. 612 was entered into as of this date first written above. ATTEST: CI PALM SPRI G CALIFORNIA Byic/'!�ir�� - City Clerk City Man, ger ^ Air T rminal Services, Inc. REVIEWED AND APPROVED RUTAN AND TUCKER By: PY G2 ✓ va David J. eshire, Esq. City Attorney 7 EXHIBIT 1 AMENDMENT #4 TO AGREEMENT #612 Q� Ask - / R.GSTpVneaa�i e 1 1 I 1 1. 1 e � wr \ ww r ♦rwrrrrwwrr �n ♦ \\ scB CR�plto ♦ \\ C PRRtmF. ♦ � \ / / ; \\ 0'I I0 0' I 0 � . • II ,' 20 2' , --41�4' 3'-1 I - 3 13'-10' .-0E0II py p�Q nli.l N._..._1<._...__..._. I I .... �'P. EIIe.I o ' Il ' o — 1 — I I . .—.—._._- i - 10'-,0` EI FLOOR w•-lo• O O N -LOOK 415'-a - E.0 O J -- - - 5,_0„ E10 IM o : III ....._..._...: _I 1 I 1•II II O LDROOM #1 i #2 DO112 E lae.a OO CD OCATABLE O El o --- -- - - I 000 x MEN O WOMEN -�-_--- c I O : O o I ..._.._....1---""---. I I I I Z I IIII I I I I — -_-__..... IIII - \RAOWS= B'-0' Y II --9AOIUSc 5:=00----I-- 31 • I ' II ' 1 4F. �� B�5 I I it I EIIO .--------- I 1._.___.._ I -..._ II MOVABLE PLANTERS II � SEE LANDSCAPE ORA11NG5 I II I EXHIBIT # 3 0 AMENDMENT # 4 TO AGREEMENT # 612 - - - - - - - - - - - - - � q iL ¢ 13.3 I - � a 13.3 I 3 , � 1 r 13.3 � 6 � ti ♦♦ i!, �, . { 13.3 ;'SEE i STING► - AURANT / BAR I 5 \\� 13.3 I I A34 O� 3. Sim. SSE< 16 S4,E I I I LINE OF ,E-- MEZZANIN OOR G� NIP, 1! ' I Cl 3.3 2, \O Of� 4-4 I 12 17.2 y 22 SEE' 17.2 w �\ 3 Air Terminal Services (ATS) Restaurant lease at airport AGREEMENT #612, Amendment #3 MO 4011, 9-2-87 AMENDMENT NO. 3 to the INDENTURE OF LEASE AGREEMENT NO. 612 THIS AGREEMENT is made and entered into this q _Le,;L day 1987, by and between the City of Palm Springs, a municipal corporation organized and existing under the general laws of the State of California (hereinafter referred to as "CITY" or "LESSOR") and Air Terminal Services, Inc. , a Virginia corporation (hereinafter referred to as "ATS" or "LESSEE") . WHEREAS an indenture of Lease Agreement No. 612, dated September 23, 1968, was entered into between CITY and Fred Harvey, Inc. , providing for food, bev- erage, gift shop, newsstand and related facilities at the Palm Springs Municipal Airport; and WHEREAS ATS is the successor-in-interest to Fred Harvey, Inc. , by assign- ment; and WHEREAS said Agreement, dated September 23, 1968, has been amended by that Assignment and Amendment to the Indenture of Lease Agreement No. 612, dated July 20, 1977; by that Amendment to the Indenture of Lease Agreement No. 612, dated November 3, 1982; by Amendment No. 2 to Indenture of Lease Agreement No. 612, dated October 15, 1986; and by Amendment No. 1A to Indenture of Lease Agreement No. 612, dated December 17, 1986; and WHEREAS the Agreement, dated September 23, 1968, and the Amendments dated July 20, 1977, November 3, 1982, October 15, 1986 and December 17, 1986 consti- tute the entire agreement among the parties and shall be referred to collec- tively as the "Agreement"; and WHEREAS the parties desire to further amend the Agreement upon the terms and conditions hereinafter stated, NOW THEREFORE, in consideration of the premises, mutual covenants herein contained, and other good and valuable consideration, the CITY and ATS do mutually covenant and agree, as follows: Section 1. Amendment Numbers 1A and 2 to the Indenture of Lease Agreement No. 612 are hereby repealed. Section 2. Article I shall be deleted in its entirely and the following language substituted therefor: "ARTICLE I PREMISES "LESSOR hereby rents, leases and demises to LESSEE and LESSEE hires, leases and takes from LESSOR, on the terms and conditions set forth, those certain premises designated Restaurant Wing, Flight Kitchen, Cocktail Lounge and Dining, Gift Shop, Ice Cream Parlor and Patio Cocktail , being more particularly described as shown on Exhibit "B", attached. " Section 3. ARTICLE II , CONSTRUCTION is amended by adding a new Paragraph 6, to read as follows: "6. LESSEE shall complete the gift shop relocation work as gener- ally depicted on Exhibit "B". The cost of the relocation work shall be shared between LESSOR and LESSEE... LESSOR's share shall be provided to LESSEE via rental credits. Said rental credits shall run for five (5) years beginning thirty (30) days following the completion of the relocation. The total credit due shall be $57,000, which results in a monthly rental credit of $950 when divided by sixty (60) months. Should the total relocation cost be less than $69,000, the rental credit shall be recalculated based on actual cost, less $12,000, divided by sixty (60) months. " Section 4. Article XIII shall be deleted in its entirety and the following language substituted therefor: "ARTICLE XIII LESSEE' S RIGHTS "LESSEE is hereby granted an exclusive right, during the term of this lease and any renewal thereof, to operate the following types of businesses in the Terminal Building and at or on the Airport in the area shown as exclusive on Exhibit "A"; to provide - 2 - 0 all food and beverage service, including alcoholic beverage service; to operate gift shops, newsstands and vending machines dispensing food, beverages, cigarettes and merchandise. These rights include the right to provide the services associated with the above-described businesses at all functions or events held at or on the Airport, whether sponsored or maintained by the Lessor or held at or on the Airport by others with the LESSOR's permission, and regardless of whether held within the area marked "exclusive" , on Exhibit "B" , with the exception of events held by other Airport tenants on their leaseholds. "In the event LESSOR determines that the public interest will be served by allowing specialty merchandise shops, i .e. , furs, jewelry, art galleries , etc. , but not food and beverage, within the Terminal Building, LESSEE is hereby given a right of first refusal to construct and operate such shops; however, right of first refusal must be exercised within thirty (30) days of written notice that LESSOR intends to solicit for specialty shop operators. Further, should said right be exercised, plans must be submitted for approval within ninety (90) days of exercising the right, and the proposed shops must be operational within one hundred twenty (120) days of final approval of plans. "The rights granted LESSEE, specified in Article VI relating to use of premises, are subject to the right of the certified passenger airlines to serve, at their own expense, food and bev- erages to their passengers and crews aloft, or for consumption by passengers and crews in aircraft grounded at the Airport due to weather or mechanical conditions, or in the airlines' exclusive space in the Terminal Building when such food and beverages were originally scheduled to be served to such passengers and crews aloft. "'Airport' shall mean the Palm Springs Municipal Airport area shown on Exhibit W . - 3 - " 'Terminal Building ' shall mean the terminal building facili- ties for enplaning and deplaning aircraft at the Airport as re- modeled, renovated, expanded, extended, relocated or replaced during the term of this Agreement. "In consideration of the LESSEE's obligation to operate the businesses hereinabove described and the LESSEE's investment in facilities, LESSOR covenants and agrees that no business which sells products or provides services which are similar to the products or services provided by LESSEE in the Terminal Building shall be permitted to operate in the area labeled 'Area B' , as shown on Exhibit 'A' . LESSOR shall include this covenant in any lease, use agreement or other agreement relating to 'Area B' . It is understood that food service facilities may be constructed as a wholly integrated part of a hotel/motel , in 'Area B' , with seating limited to the number of sleeping rooms in the structure times a factor of 1.2. No other food service facility will be allowed. " Section 5. All the terms and conditions of the Agreement shall remain in full force and effect except as specifically amended herein. IN WITNESS WHEREOF, ATS and CITY have caused this Amendment No. 3 to be executed as of this day of 1987. F ATTEST: CITY OF JP LM SPRINGS, CALIFORNIA BY >> �-- ✓ 4ir� City Clerk ( City Maiageer REVIEWED & APPROVED AIR TE 9INAL SERVICES, INCORPORATED f g YrW dant 47 BY RE N0- y C� By (?,_ Secretary - 4 - i ******************************************************************************* * State of New York On this the 1st day ofSepteniber198 7 , before* * * * County of Erie me, Roberta S. Van Renmen ,* * * the undersigned Notary Public, personally * * * appeared Dennis Szefel and Frances Amigone ,* * X personally known to me * _ proved to me on the basis of satisfactory * evidence to be the person(s) who executed the* * within instrument as * or on behalf of the corporation therein named* * and acknowledged to me that the corporation * executed it. * WITNESS my hand and official seal . * ROBERTA SNANREMMEN 1, � ,* Nolary Pllfied Singe of New York � U {}QunllHetl m Erie O—- /na �re LuL * MY commissionexNkes.lune30,i9 Notary' s Signature * * * - 5 - LEGEND EXHIBIT A � _ \ I �b Y.P \ \ i / J MI2 »]✓_RR UME YFNTUAI ; '�'� �OT eSiYL ES£.EIR TO I SY)L.MFRDWO e.Tao +� }J-�""u(ax ' I ^ •✓W--�/ I e �n bw,� Indenture of Lease Agreement No. 612 AMENDMENT NO. 3 • E° ��• I x � 4 / 4E� niYRsiNF VFR / • IFR sw deco I i.r[wuE WIND ROSES ✓{/ f<;. ♦ � � ,�' �. � A�o,'zT ��DSFIN RSON Or� •% , '. ��` \\\ - LOCATION MAP . fl 4 mi✓e.�'i i� '.� __ _ _��rt m_a�. w.wSx_ ___—_____ `i T_�za:___� 4— 6 / ® _ _ _ `t_ � __=c 11uxv.r I3T.- Ib Ie.D ITYEL£e1 a lep[)•W]-1�_YNK.1� — — — — — mmxs o i ` H \ RUNWAY DATA RUNWAY 1 F-=.AL RUNWAY 12 -' R ? .•�a EX\SL1HG FUTURE E%tGTING FUillRE / ao w c 1991LL ASSOCIATES. INC. "n' •�' rFs AIRPORT DATA AIRPORT =N LT bN • DExVER, Cd.AR.Y�] 14 "'� ssrt DISn 5G FUTURE DEs K.E.R.I MUNIC PAI PAIRPORT nL xuU.vssx u..a+r ef=4crxx uT sr.s.a rz' :..: .am enaalm v.c xw zuz IA..I maaauta LIK rso�.�z DR O.C.0 vac >5 vYz Ye.e,Yu rzY.-wr.Er. Y � roz s•. a-m Isa usl— s•u roa,000 .... +e iErY..L .^•'�. N F� .'DIY. m �" -, � . N Y --------------- 411 OCD .-1 H ..o'• lour a\\ O czr � LL \y �I • .✓�'� �, ram`•^ •�ey'�\� �y�. yy EXISTING GROUND FLOOR PLAN P$P AIRPORT TERMINAL SYSTEMS ANALYSIS hbiUU E°.,.TO. 214/3t3- MA$TERPLAN YellAsao 54 If. Da9aa I..,2148)3-1239 PSP-0q, !ty of Palm SprNgs,GNlomla �.wu..> rn> `m C: X H \ Z H J U J EXISTING SECOND FLOOR. PLAN Ps%4PORT TERMINAL SYSTEMS ANALYSIS ayofP mete ��. p�T ,.214/3]3-1239 PSP_05 MASTER PLAN PIINUTE ORDER. NO. 4011 APPROVING AMENDMENT NO. 3 TO INDENTURE OF LEASE AGREEMENT NO. 612 BETWEEN THE CITY OF PALM SPRINGS, CALIFORNIA, AND AIR TERMINAL SERVICES, INC. I HEREBY CERTIFY that this Minute Order, approving Amendment No. 3 to Indenture of Lease Agreement No. 612 between the City of Palm Springs and Air Terminal Services , Inc. , clarifying areas of exclusivity, was adopted by the City Council of the City of Palm Springs , in a meeting thereof held on the 2nd day of September, 1987. JUDITH SUMICH City Clerk AMENDMENT NO. IA to INDENTURE OF LEASE AGREEMENT NO. 612 AGREEMENT by and between the City of Palm Springs , a municipal corporation organized and existing under the general laws of the State of California (herein- after referred to as "City" or "Lessor") and Air Terminal Services , Incorporated, a Virginia corporation, authorized to do business in the State of California, with its principal office located at 700 Delaware Avenue , Buffalo, New York (herein- after referred to as "ATS" or "Lessee") . WHEREAS ATS occupies a part of the Airport Terminal Building as a tenant of the City, and provides food and beverage service and gift shop concessions to Airport patrons; and WHEREAS ATS has an exclusive right to sell food and beverage on the west side of the Airport; and WHEREAS the Airport Master Plan designates acreage along E1 Cielo Road for Airport Hotel/Restaurant use; and WHEREAS the City and ATS jointly desire to define the actual area of exclu- sivity to allow for the development. of an Airport Hotel/Restaurant Complex, NOW THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, City and ATS do mutually covenant and agree, as follows: Section 1. Article XIII is hereby amended to read, as follows: "ARTICLE XIII "EXCLUSIVE RIGHTS "Lessee is hereby granted an exclusive right, during the term of this lease and any renewal thereof, to operate the following types of busi- nesses in the Airport Terminal and any additions ; extensions or relo- cations thereof, and on the airfield, as shown on Exhibit "A", attached: general restaurant, cocktail lounge, bar, gift shop, newsstand and vending machines dispensing food, beverages, cigarettes and merchan- dise." Section 2. Except as specifically herein modified, the terms, covenants , and conditions of said Indenture of Lease Agreement, as amended, are hereby ratified and shall continue in full force and effect. IN WITNESS WHEREOF, the /Parties hereto have caused these presents to be executed on this�� day of)° 1986, ATTEST: CITY OF PALM SPRINGS, CALIFORNIA Byity Clerk City Manager REVIEWED w APPROVED AIR TE I�NAL SERVICES,, INCORPORATED AE'� O/EED By ('9TyU�j09 Pr S 4,d°` nt i ! a. Secretary it is * State of New York On this the 26th day of Novemberl98 6 before k County of Erie me, Karen M. De 'Aeth k „ * the undersigned Notary Public, personally * appeared __ Dennis SZefel * _ personalllly— known to me * _ proved to me on the basis of satisfactory * evidence to be the person(s) who executed the within instrument as President or on behalf of the corporation therein name and acknowledged to me 'that the corporation executed it. WITNESS my hand and official seal , Notary' s Signature **ic*******:F*******>F i;***ir*************:kki;•�*>ricF*****i;***********ir*******>::':********** KAREN M.DeAETH INohry MUM S'ote of New Yak QUARU In No CavrdY�//�}��r/ My Commission Expires April2a, � 2 - _ RUNWAY 12/ 30 - __—_ L XI G ply . - ❑ ■ ■ ■ R SI (E) \ ASf( � SI(F) (F) - o EXI . � 1 BR {y - S // J fi GM ENTE CIRCLE } �� } LIGHT I N D T - ( F) �! rq � =: COMM R I 4q PA NG IR CAR 'n JET P POSED _ ARK DA- DME CAT ION J q41 of to 094( iT F /yr MINUTE ORDER N0, 3850 APPROVING AMENDMENT NO. lA TO INDENTURE OF LEASE AGREEMENT NO. 612, REDEFINING THE EXCLUSIVE RIGHTS OF AIR TERMINAL SERVICES, INC. , TO PROVIDE FOOD, BEVERAGE AND CONCESSION SERVICES AT THE AIRPORT. I HEREBY CERTIFY that this Minute Order, approving Amendment No. IA to Indenture of Lease Agreement No. 612 between the City of Palm Springs, California, and Air Terminal Services, Inc. , redefining the exclusive rights of Air Terminal Services, Inc. , to provide food, beverage and concession services at the Airport, was adopted by the City Council of the City of Palm Springs, California, in a meeting thereof held on the 17th day of December, 1986. C. ITH SUMICH City Clerk AMENDMENT NO. 2 to INDENTURE OF LEASE AGREEMENT NO. 612 AGREEMENT by and between the City of Palm Springs, a municipal corpo- ration organized and existing under the general laws of the State of California (hereinafter referred to as "City" or "Lessor" ) and Air Terminal Services , Incorporated, a Virginia Corporation, authorized to do business in the State of California with its principal office located at 700 Delaware Avenue, Buffalo, New York (hereinafter referred to As "ATS" or "Lessee"). WHEREAS, ATS occupies a part of the Airport Terminal Building as a tenant of the City and provides food and beverage service and gift shop concessions to airport patrons; and WHEREAS, as a condition for partial release of the exclusive right to sell food and beverage, so that the Airport Hotel could be developed, ATS was authorized to develop an ice cream service area and expand the downstairs restaurant; and WHEREAS, the City has requested that the gift shop be relocated to relieve congestion in the ticketing wing; and WHEREAS, ATS wishes to immediately undertake the restaurant/ice cream service area expansion and move the gift shop, NOVI THEREFORE, in consideration of the mutual covenants herein con- tained and other good and valuable consideration, City and ATS do mutually covenant and agree as follows: 1. ATS will construct and fully equip the restaurant/ice cream parlor expansion as well as the gift shop relocation as generally depicted on exhibit "A" to this Agreement. All plans and drawings will be subject to approval of the Director of Transportation and con- struction will conform to all applicable rules and regulations of state and local governmental agencies. 2. Prior to commencing the above described construction, ATS, shall contract with a licensed asbestos removal firm for the removal of asbestos from the ceiling surfaces within the construction area. Upon proof of proper disposal of the asbestos material and receipt of labor and material releases the City shall reimburse ATS for the asbestos removal to a maximum of $20,000. 3. ATS, at its sole cost and expense, shall complete the restaurant/ice cream parlor expansion as generally depicted, on Exhibit "A," as area "1" . 4. ATS shall complete the gift shop relocation work as generally depicted, on Exhibit "A," as area "2. " The cost of the relocation work shall be shared between ATS and the City. The City share shall be provided to ATS via rental credits. Said rental credits shall run for five (5) years beginning January 1 , 1987 and ending on December 1, 1992. The total credit due shall be $57,000, which when divided by sixty (60) months , results in a monthly rental credit of $950. Should the total relocation cost be less than $69,000, the rental credit shall be recalculated based on actual cost, less $12,000, divided by sixty (60) months. 5, City shall be responsible for the demolition of the old gift shop partitions. All of the terms and conditions of said Indenture of Lease Agreement, as amended, shall remain in full force and effect during the term thereof. IN WITNESS WHEREOF, the parties hereto have caused these presents to be executed on this_ZZ!"�day of LJ, 1986. ATTEST: CITY OF PALM SPRINGS, CALIFORNIA DY � 4i—t—y—T4er City Mdnagbir REVIEWED AND APPROVED _2� AIR ERMINAL SERVICES, INC. l A 4J Ci1`w' President STATE OF New York COUNTY OF Erie On this 21st day of November 1986, before me, the undersigned authority, personally appeared Dennis Szefel , personally known to me, or proved to me on the basis of satisfactory evidence, to be the person who executed the within instrument as President , or on behalf of the corporation therein named, and ac now edge to me that the corporation executed it. WITNNESS my hand and official seal . Flotary`s�ignature KAREN At DVAM ImY FLft Mate of Naw York QjArad In Erb County MyC0111M N Expires April 20, P7 s31 + s��to "KiN twz1 Llu Z31-OMds r Y N R � � rtolltlx�-/d Noll�r� G � CRO an- a Q IE El 0 �1r+n� aspa; 7 a 6 AMENDMENT TM THE INDENTURE OR IL ASE AGREEMENT NO. 612 Agreement by and between the City of Palm Springs, a municipal corporation organized and existing under the general laws of the State of California (hereinafter sometimes referred to as "City" or "Lessor") and Air Terminal Services, Incorporated, a Virginia corporation, authorized to do business in the State of California with its principal office located at 700 Delaware Avenue, Buffalo, New York (hereinafter sometimes referred to as OATS" or "Lessee") . WHEREAS, ATS occupies a part of the Airport Terminal Building as a tenant of the City and provides food and beverage service to airport patrons; and WHEREAS, ATS has proposed a plan to enlarge the food preparation area of its leased facilities and to refurbish and redecorate its existing public facilities; and WHEREAS, ATS has proposed to use the additional kitchen facilities to prepare in flight meals and commercial catering for service off Airport premises and to establish a separate rent category for all such food services; and WHEREAS, City has agreed to accept the ATS proposal and in consideration thereof., extend the term of the ATS lease: NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, City and ATS do mutually covenant and agree as follows: 1. ATS, at its sole cost and expense, will construct and fully equip a food preparation area of approximately 1090 square feet which will abut the existing kitchen facilities. All plans and drawings will be subject to approval of the Airport Manager and construction will conform to all applicable rules and .regulations of state and local governmental agencies. 2. ATS, at its sole cost and expense, will immediately undertake a program, subject to the approval of the Airport Manager, to refurbish and redecorate the Coffee Shop, Dining Room, Cocktail Lounge and Newsstand and Gift Shop in the Terminal Building. 3. A new rental classification descriptively entitled "In-Flight Feeding and Commercial Catering" will be established effective on the date of this Agreement and will include all in-flight feeding and all commercial catering sales prepared on site for off premises consumption. ATS will pay, as rent to City, sums equivalent to 10. 5% of gross sales in this new classification effective on the date of this Agreement. 4. In consideration of the investment to be made by ATS and of additional rents to be paid to the City as herein provided, the term of the Lease Agreement between ATS and the City for the operation of the restaurant, bar and newsstand and gift shop at Palm Springs Municipal Airport, as herein amended, is extended for a period of ten (10) years to expire at midnight August 31, 2000 . All of the terms and conditions of said Indenture of L+ �4� Lease Agreement, as amended, shall remain in full force and effect during the term hereof. �j IN WITNESS WHEREOF, ATS and the City have caused 6- this Lease Amendment to be executed this 3"9-- day of ^¢�, fir 1982. AlouePA ja N ATTEST: CITY OF PALM SPRINGS ca l 0By c. 4 rW cs' "Ty ,}"DI7H SI.1An r!;e GEs2 !Uf(lPd,1�U�.[3, ^' a pA ATTEST: AIR TERMINAL SERVICES, INCORPORATED GG,D cretary President e`4 STATE OF NEW YORK ) SS. COUNTY OF ERIE ) On the y�� day of October, 2982, before me personally appeared William J. " Kelley and Nelson E. Kraus, to me known, who being duly sworn did depose and say that they reside in the Towns of Amherst and West Seneca, respectively, and that they are President and Secretary, respectively, of AIR TERMINAL SERVICES, INCORPORATED, the corporation described in and which executed the above instrument; that they each know the seal of the corporation; that the seal affixed to said instrument is such corporate seal and that it was so - 2 - 7 a 7 0 7 a 8 affixed by order of the Board of Directors of said corporation; and that they signed their names thereto by like order. i Notary Public U FRANCES AMMONE - - Notary Public, Slate of New York Qualified in Crie County My Commission Expires March 30, 19,L= 3 — RESOLUTION NO. 14415 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING AMENDMENT NO. 2 TO LEASE AGREEMENT #612 WITH AIR TERMINAL SERVICES, INC. WHEREAS the City of Palm Springs owns the Palm Springs Municipal Airport, and operates thereon an Airport Terminal Building; and WHEREAS the City of Palm Springs , by Resolution No. 9326, entered into Lease Agreement #612 with Fred Harvey, Inc. , a wholly-owned subsidiary of AMFAC, Inc. , for the construction and operation of dining room, coffee shop, bar and gift shop facilities; and WHEREAS the City of Palm Springs, by Resolution No. 12288, approved Amendment No. 1 to Lease Agreement #612, which amendment authorized the assignment of Lease Agreement #612 to Air Terminal Services, Inc„ and authorized certain amendments to said lease agreement; and WHEREAS the parties to Lease Agreement #612 mutually desire to further amend said agreement to authorize certain construction and remodeling, -increase revenue, and extend said lease to finally expire August 31, 2000; and WHEREAS the Airport Commission and Staff have recommended approval of Amendment No. 2 to Lease Agreement #612, NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs that Amendment No. 2 to Lease Agreement #612 be and it is hereby approved. ADOPTED this 3rd day of November 1982. AYES: Councilmembers Doyle, Foster, Maryanov and Mayor Bogert NOES: None ABSENT: Councilmember Ortner ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By s/J. sumich s/Norman R. King City Clerk City Manager REVIEWED & APPROVED 7b AIR TERMINAL SERVICES, INC. 700 Delawa*e., Buffalo, N.Y, 14209 716-881-6500 December 19, 1986 �.�" 2 6 1966 /''.ITV r,l PPV Mr. Allen F. Smoot Director of Transportation & Energy City of Palm Springs P. O. Box 1786 Palm Springs, California 92263-1786 Dear Mr. Smoot: Enclosed herewith is your letter signed by ATS as you requested. While we do not necessarily agree as to the effect of the first amendment to the Concession Agreement, this will put to rest the question of intent of the parties. Very truly yours, AIR T MINAS SERVICES, INC. Dennis Sz President . c. Enclosure A]d TRApgbj4,(jH i AI E0h3 & ENERGY ®� pA L y "FAG-wi ` y o31� P� 12;i � t. J3. As M RPORATE� Transportation Department 619-323-8163 December 3, 1986 Mr. Donald J. Cahoon Director of Properties Air Terminal Services 700 Delaware Avenue Buffalo, New York 14209 Dear Mr. Cahoon: PSP - Annual Reconciliation of Charges For some time, now, there have been discussions between your accounting personnel and the City's concerning Article VI of Lease Agreement No. 612, In researching the records , I find that lengthy correspondence exists between both parties concerning amendments to the section of the lease concerning "Minimum Rent" and "Percentage Rent". Specifically, the discussions centered on Article VI, Section 1. The lease was assumed and amended, in 1977, and the amend- ment specifically states: "Article VI, Rental and Concession Payments is amended to read as o ows: Only Section 1 follows , which means that Sections 2 through 7 were dropped. I have reviewed the file with the City Attorney, and he agrees that it is quite evident that a clerical error occurred, as it was not the intent of either party to eliminate Sections 2 through 7. Post Office Box 1786, Palm Springs, California 92263-1786 Mr. Donald Cahoon, ATS December 3, 1986 Page two If you are in agreement with the above information, please acknowledge by signing and returning this letter, which will become a permanent part of the file. Sincerely, i ALLEN F. S IOOT Director of Transportation & Energy AFS:nmi cc: City Manager City Attorney City Clerk Chief Auditor ACKNOWLEDGED AND AGREED TO: AIR TEMINAL SERVICES, INC. By � . Dennis Sz fe 'resident 7 a 4 ASSIGNMENT AND AMENDMENT Air Terminal Services- Assigned TO THE INDENTURE & amended lease AGR 612 -bar, restaurant & gift shop,airport OF LEASE AGREEMENT N0. 612 AGREEMENT #612 (7-21-77-orig) Res #12288, 7-20-77 eff 9-1-77 to4-30-9( WHEREAS the City of Palm Springs and Fred Harvey, Inc. (a wholly- owned subsidiary of AMFAC, Inc. ) entered into Lease Agreement No. 612 on or about September 23, 1968, for the purpose of operating restaurant, bar, and gift shop facilities within the Palm Springs Municipal Airport terminal building upon the terms and conditions and for the considerations therein expressed; and WHEREAS Fred Harvey, Inc. , by letter dated June 7, 1977, has requested that the lease be assigned to Air Terminal Services, Inc. (a wholly-owned subsidiary of Sportservice, Inc. ) as authorized under the provisions of ARTICLE XVIII of Lease Agreement No. 612; and WHEREAS Air Terminal Services , Inc. , has by letter dated June 7, 1977, requested that said assignment be approved; and WHEREAS Air Terminal Services, Inc. , has requested certain amendments to the provisions of Lease Agreement No. 612 to become effective simultane- ously with the effective date of the assignment; NOW THEREFORE the City of Palm Springs, Fred Harvey, Inc. , and Air Terminal Services, Inc. , hereby mutually agree as follows: 1 . Fred Harvey, Inc. hereby assigns their beneficial interests in Lease Agreement No. 612 to Air Terminal Services, Inc. , effective with the close of business August 31 , 1977, and by this instrument hereby releases the City of Palm Springs from and against any and all obligations and causes for action that may have heretofore arisen or may hereafter arise as a result, directly or indirectly, of the mutual obligations, covenants , and conditions heretofore undertaken by the City of Palm Springs under the provisions of Lease Agreement No. 612. 2. The City of Palm Springs by this instrument releases Fred Harvey, Inc. from any and all obligations under the provisions of Lease Agreement No. 612 together with any actions or causes of action that may have ariser, under the terms, covenants, and conditions undertaken by Fred Harvey, Inc. , as a result of Lease Agreement No. 612, save and except the obligation (upon final audit to be accomplished within thirty (30) days after the close of business August 31 , 1977) to make any and all payments owed by Fred Harvey, Inc. , to the City under the terms, covenants, and conditions of Lease Agreement No. 612. 3. Effective with the opening of business September 1 , 1977, Lease Agreement No. 612 is amended in part to hereafter read as follows: A. ARTICLE II , CONSTRUCTION is amended to add a new Paragraph 5, to read as follows: "5. Lessee, Air Terminal Services, Inc. , agrees to immediately undertake, and promptly complete, a renovation, refurbishing, and upgrading of the restaurant, bar, and gift shop facilities within the Palm Springs Municipal Airport terminal building and to expend not less than $40,000 for such improvements. " B. ARTICLE IV, TERM AND RENEWAL, EXERCISE OF OPTIONS is amended to read as follows: "TERM. 1 . The term of this lease shall be for twenty (20) years beginning Play 1 , 1970, and ending April 30, 1990. " C. ARTICLE VI, RENTAL AND CONCESSION PAYMENTS is amended to read as follows: "I . Lessee covenants to pay to Lessor rentals and concession fees during the life of this agreement and any option or holdover periods, at the rates , at the times and in the manner set forth below: Minimum Rent For the first two years of this lease, Lessee shall pay no Minimum Rent. For the third through the fifth years of the lease, Lessee shall pay a Minimum Rent equal to 70% of the Percentage Rent (com- puted for this purpose without deduction of Minimum Rent) for the second lease year. For the sixth through the eighth and the ninth through the tenth years, Lessee shall pay a Minimum Rent equal to 7 a 5 -2- 0 7 a 6 the minimum rent for the third year multiplied by a fraction whose denominator is the total number of enplaned passengers at the Palm Springs Municipal Airport (as reported in enplaned pas- sengers reports filed monthly in the Palm Springs Municipal Airport office by scheduled airlines) , for the second year of the lease and whose numerator is the total number of enplaned passengers for the fifth and eighth years of the lease, respectively. For the period beginning May 1 , 1980 through April 30, 1983, the minimum rental shall be $45,000 per year; for the period May 1 , 1983 through April 30, 1986, the minimum rental shall be $50,000 per year; for the period May 1 , 1986 to April 30, 1990, the minimum rental shall be $55,000 per year. The minimum rent set out above shall be paid in twelve (12) equal monthly install- ments, monthly in advance. Percentage Rent Except as otherwise provided in this lease, Lessee shall pay to Lessor in addition to the Minimum Rent an amount of money calculated by deducting the Minimum Rent and Percentage Rent installments already paid for the current lease year from a sum computed upon the following respective percentages of Lessee's total Gross Receipts during the current fractional or full lease year, as the case may be: Food and Non-Alcoholic Beverages For the period from the inception of this agreement through April 30, 1980, five percent (5%) of Gross Receipts. For the period beginning May 1 , 1980, through April 30, 1990, eight percent (8%) of Gross Receipts. Alcoholic Beverages First through fifth years - 5% of Gross Receipts Sixth through tenth years - 7% of Gross Receipts For the period beginning May 1 , 1980, through April 30, 1990, twelve percent (12%) of Gross Receipts. Merchandise 10% of Gross Receipts" -3- D. ARTICLE XI, INSURANCE is amended to hereafter read as follows: "Liability Insurance During the entire term of this agreement, Lessee agrees at its sole expense to procure and maintain public liability insurance to protect against loss from liability imposed by law for damages on account of bodily injury, including death therefrom, suffered or alleged to be suffered by any person or persons whomsoever, resulting directly or indirectly from any act or activities of the City or Lessee, its agents, servants , suppliers, guests, or business visitors, or any person acting for the City, or Lessee or under its control or direction, and also to protect against loss from liability imposed by law for damages to any property of any person caused directly or indirectly by or from acts or activities of the City, or Lessee, or its agents , servants, suppliers, guests, or business visitors, or any person acting for the City or Lessee, or under its control or direction. Such public liability and property damage insurance shall also provide for and protect the City against incurring any legal cost in defending claims for alleged loss. Such public liability and property damage insurance shall be maintained in full force and effect throughout the term of the agreement and ,any extension thereof in the following minimum limits: Bodily Injury: $250,000 each person $500,000 each occurrence $500,000 aggregate product Property Damage: $100,000 each occurrence $250,000 aggregate In addition to the above minimum limits of primary insurance, Lessee shall provide an umbrella policy with a maximum limit of Five Million Dollars ($5,000,000) . All of such insurance shall be primary insurance and shall name the City of Palm Springs as an additional insured. Lessee agrees that provisions of this paragraph as to maintenance of insurance shall not be construed as limiting in any way the extent to -4- 7 a 7 7 a 8 which the Lessee may be held responsible for the payment of damages to persons or property resulting from Lessee's activities, the activities of its agents, servants, suppliers, guests, or business visitors, or the activities of any person or persons for which Lessee is otherwise responsible. Workers ' Compensation Insurance The Lessee shall procure and maintain Workers' Compensation Insurance in such amount as will fully comply with the laws of the State of California and which shall protect both the Lessee and the City from any loss , claim, or damage arising from any injuries or occupational diseases happening to any worker employed by the Lessee in the course of carrying out the within agreement. , Fire & Extended Coverage Insurance Lessee also agrees to procure and maintain during the term of this agreement, and any extension thereof, a policy of fire, extended coverage, and vandalism insurance on all permanent property, of Lessee's, of an insurable nature located upon the leased premises. Said policy shall be in an amount sufficient to cover at least eighty percent (80%) of the replacement costs of said property. Lessee agrees to pay the premium for such insurance and shall require that any insurance proceeds resulting from a loss under said policy are payable jointly to City and Lessee and said proceeds shall consti- tute a trust fund to be reinvested in rebuilding or repairing the damaged property or said proceeds may be disposed of as specified in paragraph following, entitled "Waste, Damage, or Destruction" , hereof; provided, however, that within the period during which there is in existence a mortgage upon the leasehold, then and for that period all policies of fire insurance, extended coverage, and vandalism shall be made payable jointly to the mortgagee or beneficiary, the -5- named insured, and City, and shall be disposed of jointly by the parties for the following purposes: a. As a trust fund to be retained by said mortgagee or beneficiary and applied in reduction of the debt secured by such mortgage with the excess remaining after full payment of said debt to be paid over to Lessee and City to pay for reconstruction, repair, or replacement of the damaged or destroyed improvements in progress payments as the work is performed. The balance of said proceeds shall be paid to Lessee. Provided, further however, nothing herein shall prevent Lessee, at its option and with the approval of said mortgagee or beneficiary, from filing a faithful performance bond in favor of said mortgagee or beneficiary and City in an amount equivalent to said insurance proceeds in lieu of surrendering said insurance proceeds to said mortgagee or beneficiary and city. b. In the event that this lease is terminated by mutual agreement and said improvements are not reconstructed, repaired or replaced, the insurance proceeds shall be jointly retained by City and said mortgagee or beneficiary to the extent necessary to first discharge the debt secured by said mortgage or deed of trust and then to restore the premises in a neat and clean condition. Said mortgagee or beneficiary shall hold the balance of said proceeds for City and Lessee as their interests may appear. Lessee agrees to increase the limits of liability when, in the opinion of the City, the value of the improvements covered is increased, subject to the availability of such insurance at the increased limits. Lessee agrees, at his sole expense, to comply and secure compliance with all insurance requirements necessary for the maintenance of reasonable fire and public liability insurance covering said premises , buildings and appurtenances. 7 a 9 -6- 7 a 10 Waste, Damage, or Destruction Lessee agrees to give notice to the City of any fire or other damage that may occur on the leased premises within ten days of such fire or damage. Lessee agrees not to commit or suffer to be committed any waste or injury or any public or private nuisance, to keep the premises clean and clear of refuse and obstructions, and to dispose of all garbage, trash, and rubbish in a manner satisfactory to the City. If the leased premises shall be damaged by any cause which puts the premises into a condition which is not decent, safe, healthy, and sanitary, Lessee agrees to make or cause to be made full repair of said damage and to restore the premises to the condition which existed prior to said damage, or Lessee agrees to clear and remove from the leased premises all debris resulting from said damage and rebuild the premises -in accordance with plans and specifications previously submitted to the City and approved in writing in order to replace in kind and scope the operation which existed prior to such damage. Lessee agrees that preliminary steps toward performing repairs, restoration, or replacement of the premises shall be commenced by Lessee within thirty (30) days and the required repairs, restoration, or replacement shall be completed within a reasonable time thereafter. City may determine an equitable deduction in the minimum annual rent requirement for such period or periods that said premises are untenantable by reason of such damage. Evidence of Insurance A Certificate of Insurance, or an appropriate insurance binder, evidencing the above insurance coverage with a company acceptable to the City shall be submitted to the City prior to execution of this agreement on behalf of the City. -7- Notice to City, Insurance Coverage Change The terms of the insurance policy or policies issued to provide the above insurance coverage shall provide that said insurance may not be amended or cancelled by the carrier, for non-payment of premiums or otherwise, without thirty (30) days prior written notice of amendment or cancellation, the Lessee shall , prior to the cancellation date, submit to the City Clerk new evidence of insurance in the amounts heretofore established. The Lessee - An Independent Contractor It is understood and agreed that the Lessee is, and at all times shall be, an independent contractor and nothing contained herein shall be construed as making the Lessee, or any individual whose compensation for services is paid by the Lessee, an agent or employee of the City, or authorizing the Lessee to create or assume any obligation or liability for or on behalf of the City. Hold Harmless Lessee agrees to indemnify and save City and its agents and employees harmless from any and all liability, claims, damages or injuries to any person, including injury to Lessee's employees and all claims which arise from or are connected with the negligent performance of or failure to perform the work or other obligations of this agreement, or are caused or claim to be caused by the negligent acts of Lessee, its agents or employees, and all expenses of investigating and defending against same; provided, however, that this indemnifica- tion and hold harmless shall not include any claim arising from the sole negligence or willful misconduct of the City, its agents or employees. " E. ARTICLE XIV, MANAGEMENT OF BUSINESS, HOURS, PRICES, QUALITY is amended by adding a new Paragraph C to read as follows: "c. Throughout the term of this agreement Lessee agrees to obtain and maintain the Riverside County Department of Public Health's "A" rating. " 7 a 11 -8- 0 7 a 12 4. Except as expressly modified herein, all terms, covenants, and conditions of Lease Agreement No. 612 are hereby ratified and shall remain in full force and effect. 5. Air Terminal Services, assignee of Fred Harvey, Inc. , and substitute Lessee of Lease Agreement No. 612 as hereinabove amended, hereby covenants and agrees to keep and perform all of the terms, covenants, and conditions of Lease Agreement No. 612, as amended, and does hereby assume all of the obligations of Lease Agreement No. 612, effective September 1 , 1977. Executed this �7/'O' day of 1977. ACCEPTED AND AGREED TO: FRED HARVEY, INCORPORATED ATTEST )� 4j� ACCE TED AND AGREED TO: AIR TERMINAL SERVICES, INCORPORATED By ATTEST: For and in consideration of the grant by the City of Palm Springs of the lease to Air Terminal Services, Inc. , Sportservice, Incorporated hereby guarantees to the City of Palm Springs any and all obligations of Air Terminal Services, Inc. , that may arise as a result of said agreement. SPORT/SERVICE, INCORP/FOR/A'TED By ATTEST: ACCEPTED AND AGREED TO: CITY OF PALM SPRINGS, CALIFORNIA By Z APPROVED AS TO FORM: Cihy A rn y r APPROVED AS TO CONTENT: Director of T hnsportVtion Operations Date: r:'PrVED BY THE CITY M 1h1 7t -9- RESOLUTION NO. 12288 OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AUTHORIZING THE ASSIGNMENT OF LEASE AGREEMENT NO. 612 FROM FRED HARVEY, INC. TO AIR TERMINAL SERVICES, INC. , AND AUTHORIZING CERTAIN AMENDMENTS TO LEASE AGREEMENT NO. 612. WHEREAS the City of Palm Springs and Fred Harvey, Inc. (a wholly-owned subsidiary of AMFAC, Inc. ) entered into Lease Agreement No. 612 on or about September 23, 1968, for the purpose of operating restaurant, bar, and gift shop facilities within the Palm Springs Municipal Airport terminal building upon the terms and conditions and for the considera- tions therein expressed; and WHEREAS Fred Harvey, Inc. by letter dated June 7, 1977, has requested that the lease be assigned to Air Terminal Services, Inc. (a wholly- owned subsidiary of Sportservice, Inc. ) , as authorized under the pro- visions of ARTICLE XVIII of Lease Agreement No. 612; and WHEREAS Air Terminal Services, Inc. has , by letter dated June 7, 1977, requested that said assignment be approved; and WHEREAS Air Terminal Services, Inc. has requested certain amendments to the provisions of Lease Agreement No. 612 to become effective simul- taneously with the effective date of the assignment; NOW THEREFORE BE IT RESOLVED by the City Council of the City of Palm Springs: 1 . That the assignment of Lease Agreement No. 612 from Fred Harvey, Inc. to Air Terminal Services, Inc. is approved. 2. That amendments to ARTICLES II , IV, V, XI , and XIV of Lease Agreement No. 612 on file in the office of the City Clerk of the City of Palm Springs are approved. 3. That the City Manager is authorized to enter into assign- ment and amendment of Lease Agreement No. 612. ADOPTED this loth day of July , 1977. AYES: Councilmembers Beadling, Doyle, Field, Foster & Mayor Beirich NOES: None ABSENT: None ATTEST: CITY OF PALM SPRINGS, CALIFORNIA By s/J. Sumich s/Donald A. Blubaugh Deputy City Clerk City Manager REVIEWED & APPROVED 7 b September 20, 1970 Mr. George W. Clark, Vice President Fred Harvey, Inc. Ili South Hill Drive Brisbane, California 94005 Dear Mr. Clark: Enclosed please find our trustee's check No. C0196762 in the amount of $41.000.00, which is being furnished in accordance with the provisions of Article II, Section 4 of our lease agreement. In accordance with the provisions of Article IV, paragraph 1 , the term of the lease begins on the first day of the month after both the cocktail lounge, dining space and restaurant wing are open to the public for business. The term, therefore, begins May 1, 1970. Sincerely, EDWARD L. COLBY Airport Director ELC:lg Encl. cc: City Clerk Fln,ange Director R E s'a'':=r' >) C ii a",r C�_,,, , �M ?ALAA y ,SAS 0 * t 1C i n s F } CA Lg F 0 RNJrA September 24, 1968 Mr. Leslie A. Scott President Fred Harvey, Inc. 80 East Jackson Blvd. Chicago, Illinois 60604 Dear Mr. Scott: Transmitted herewith are two executed copies of Lease Agreement No. 612 together with four certified copies of Resolution No. 9326 authorizing execution of the lease by and between the City of Palm Springs and Fred Harvey, Inc. Please note that the figure on the bottom of Page 1 , Article I , 3500 sq. feet was changed to 3237 sq. feet. The figure at the top of Page 2, 3200 sq. feet was changed to 2680 sq. feet in accordance with the telephone approval received from Mr. Witteborg. These changes were made and initialed prior to execution on be- half of the City. Please note that Page 17 of the lease was re- placed. Once again, in accordance with Mr. Witteborg's approval and prior to execution on the part of the City. In accordance with our discussions with Mr. Witteborg relative to questions raised by the City Council with regard to terms and conditions of the lease, the lease has been executed on behalf of the City with the specific understanding that the term "merchan- dise" as used throughout the lease agreement refers to merchandise of a kind and character normally sold, traded or dispensed in an airport terminal building gift shop, novelty shop or newsstand. The term specifically does not include such items as aircraft engines, aircraft components, instruments, fuel , oil , or similar products. It is specifically the intent of the City not to authorize Lessee to engage in any business not normally associated with the conduct of an air terminal newsstand, novelty shop, res- taurant, bar or gift shop facility. The lease has been executed on behalf of the City with the under- standing that it is the intent of Article XIII , Subparagraph 4, �. . . -- _r. - �, _ - � - I �` - - _ � f - (,�, � �� , ,, - � , �� y �� 0 9 Mr. Leslie A. Scott Sept. 24 , 1968 Page 2 that should Lessee elect not to operate such hotel , food and beverage services facilities at the hotel , if constructed, that whoever does construct such a hotel shall be permitted to engage in normal and customary food and beverage services business as is reason- ably considered as required by a first-class hotel operation. I, as City Attorney, hereby certify that all statutory require- ments as conditions precedent to the execution of the lease have been satisfied, and that Lease Agreement No. 612 is a legal , valid and enforcable contract with the City of Palm Springs. Please signify your understanding and acceptance of the clarifi- cations set out hereinabove by signing in the space provided and returning three copies of this letter for our files. Sincerely yours, FRED METHENY City Attorney CONTENTS OF THIS LETTER APPROVED AND ACCEPTED LESLIE W. SCOTT, Pre ident Fred Harvey, Inc.. Date: FM/ELC/mg Encls. 0 - . oj .,: TOOK _ J ii _C ._ . qH, in N ,n ,_l9 At - F- ' .w\j , 'Y I Fred Harvey, Inc. - Airport TNDpl"a11-TTURE OF Restaurant etc lease AGREEMENT #612 (Original) 9-23-68 Res 49326, 9-23-68 WDEREAS, The City of Palm Springs, a municipal. corporation, organized and existing under the general laws of the State of California, owns the Palm Springs Municipal Airport, and operates thereon an airport terminal building; and WHEREAS, the City of Palm Springs has determined that it is in the public interest to have restaurant, ban news- stand, gift shop and .related facilities operated within said terminal building;ng; and WHEREAS, Fred Harvey, Inc„ a corporation organized and existing under the laws of the State of Delaware, has expressed a desire to operate such facilities within the Falm Springs Muni.cipal. Airport terminal. building; NOWP TIiEREFORi31 for and in consideration of the rents, covenants and agreements contained herein, and other valuable considerations, the City of Palm Springs (hereinafter sometimes referred to as "City" or "Lessor") and Fred !Harvey, Inc. (here- inafter sometimes referred to as 'lessee") do mutually covenant and agree as follows: ARTICLE 7 PREMISES Lessor hereby rents, leases and demises to Lessee and Lessee hires, leases and takes from Lessor, on the terms and conditions hereinafter set forth, those certain premises herein designated Restaurant Wing and Cocktail Lounge and Dining Space, being more particularly described as follows : Restaurant Wing: Those certain premises on the ground floor of the terminal building consisting of approximately 5590 � - square feet, all as more particularly shown on attached Exhibit "A, " page 1, as the area labelled "restaurant"; i Cocktail Lounge and Dining Space : Those certain premises on the mezzanine floor of the terminal building Ivpd consisting of approximately �200 square feet, including serving kitchen, all as more particularly shown on attached Exhibit "A, " page 2, as the area labelled "dining. " ARTICLE 11 CONSTRUCTION 1. In accordance ;with the mutual desire of Lessor and Lessee to provide some of the services Lessee will furnish under this lease to the patrons of the airport at the earliest possible ti.rre, Lessee agrees as hereinafter specified to serve beverages and cold sandwiches and the like from the Cocktail Lounge and. Dining Space before construction work in the Restau- rant tiling is completed. Lessee shall prepare or cause to be prepared detailed working plans and specifications (hereinafter referred to as "Plans") for the finishing, decorating and equipping of the Cocktail. Lounge and Vining Space and shall submit. the Plans to Lessor for its approval within thirty (30) days after the date of the execution of this lease. within twenty (20) days after receiving said Plans, Lessor shall either approve or reject such Plans. If the Plans are unsatisfactory to Lessor, it shall consult with Lessee, and the Plans will be modified so as to make them acceptable to both parties, con- sistent with the estimated cost limitation hereafter stated. It is the estimate of the parties that the cost to finish, decorate and equip the Cocktail Lounge and Dining Space, which cost shall include designer' s fees and all furnishings, will not exceed Seventy-rive Thousand Dollars ($755000.00) . If the bids received by Lessee for the finishing, decorating and -•2- equipping of the Cocktail Lounge and Dining Space in accord- ance with the Plans indicate a total cost in excess of Seventy- Five Thousand Dollars 075,000,00), Lessee and Lessor shall Use their, best efforts to make modifications in. the Plans which will reduce the total cost to that level, As soon as possible but in any event within ninety (90) days after its notification of the approval of the Plans, as so modified if need be, Lessee shall, at :its own expense, subject to reimbursement as provided in paragraph !i of this Article 1:1, cause the finishing, decorating and equipping of the Cocktail Lounge and Dining Space to be accomplished in accordance with the approved Plans and shall commence to do business in this portion of the demised premises. 2. Lessee shall prepare or cause to be prepared plans for completion of the construction and the finishing, decorating and equipping of the Restaurant Wing and shall sub- mit these plans to Lessor for its approval within sixty (60) days after the date of execution of this lease. Within thirty (30) days after receiving said Plans, Lessor shall either approve or reject such ao—Mao If the Plans are unsatisfactory to Lessor, it shall consult with Lessee, and the Plans will be modified so as to be acceptable to both parties, consistent with the estimated cost limitation hereafter stated. It is the estimate of the parties that the cost to complete the construction of and to finish, decorate and equip the Restaurant Wing, which cost shall. include designer's and architect 's fees, building permits and all furnishings, will not exceed One Hundred Fifty Thousand Dollars (p150,000.00) . If the bids received by Lessee for com- pletion of the construction and the finishing, decorating and equipping of the Restaurant Wing in accordance with the Plans- indicate a total cost in excess of the sum of One Hundred Fifty Thousand Dollars ($150,000.00) and the excess, if any, of -3- Seventy-Five Thousand Dollars ($75,000.00) over the actual cost, or the estimated cost as determined by final bids, of finishing, decora.tisa.g and equipping the Cocktail Lounge and Dining Space, Lessor and Lessee shall use their best efforts to make modifications in the Plans which will reduce the total cost to that level, After approval of the Plans, as so modified if, need be, Lessee shall, at its own expense, subject to reim- bursement as provided in paragraph 4 of this Article 11, cause the construction,f:in-iBbing, decoration and equipping of the Restaurant Wing to be completed with reasonable promptitude in accordance with the approved Plans . 3, Anything in this lease to the con'Lrary notwith- standing., should Lessee be prevented from discharging its obligations under this Article 11 by the times specified herein by reason of war, riot, insurrection, strike, labor stoppage, act of God, or any other condition or force beyond the control. of Lessee,, them, while so prevented, Lessee 's obligations hereunder shall be suspended and Lessee shall not be liable in damages for its failure to discharge said obligations by , the times specified, and the times specified shall be emended for a period equal to the period of such delay. 4., Lessee agrees to hold Lessor harmless from and against any and all claims by mechanics, rnaterialmen or suppliers, which may result from the completion of the construct:],on, finish- ing, decorating, equipment or fixturization. Lessee further agrees to furnish Lessor upon completion of construction in the Restaurant Wing certificates of completion satisfactory to Lessor's architect, Such certificates shall show that all courts of construction have been paid and that no liens shall attach to the realty, Upon receipt of such certificates, Lessor agrees, within thirty (30) days, to reiraburse Lessee in the amount of $41,000 towards the cost of construction and finishing of the premises, 1 ARTICLE III FIXTURES AND EQUIPME,MT Lessee shall furnish, installed in place and ready for use, all such fixtures and equipment as are necessary for the proper conduct of restaurant, bar, neumstand and gift shop business, including such items as counters, booths, tables and chairs, refrigeration boxes, d.i51-ip,*ash:ing facilities and machines, working 'cables, ranges, broilers, cxhaugt hoods and other perma- nent fixtures and equipment of this type. Lessee also shall furnish at its ovnn expense, for use in its business., all saleable inventory items, china service, glassware, cooking utensils (such as pots, pans, skillets ), hand-held. implements (such as knives, spatulas, mixers) and any other items of a personal use nature. O-imaership of all panelling, carpeting and other floor covering, built-in equipment and any other permanent imj1pr"ovements and additional to the demised promises installed by Lessee shall be vested in Lessov at the time of their in.- stallat.ion subject to Lessee 's rights to use such improvements during the term of this lease and any renewal thereof and other rights and interests specifically reserved to Lessee in this lease. Ovrnorship of all other equipment and furnishings in- stalled by Lessee shall be and remain vested in Lessee. ARTICLE 1V TERM_AI,`,TD RENENATa�_EXERCISE OF OPTJ:O1tS 1. The term of this; lease shall be for ten (10) years beg-inning on the first day of the month after both the Cocktail Lounge and Dining Space and the Restaurant Wing are opened, to the public for business by Lessee, 2, If. Lessee 's Gross Receipts for the calendar. years 3.9765 197"7 and 1978 average Eight Hundred Thousand Dollars -5- (,$800,000.00) per year, Lessee shall have an option to renew this lease for an additional period of ten (10) years, making possible a total terns of twenty (20) years . 3. Any option contained in this agreement to be effective, must be exercised by Lessee at least one hundred eighty (180) days prior to the expiration of the initial ten year term of this lease. AFTICLF, V HOLDING OVER In the event Lessee shall hold over and remain in possession of the premises herein leased after the expiration of this agreement without any written renewal thereof, such holding over shall not be deemed to operate as a renewal or extension of this agreement, but shall only create a tenancy from month-to- month which may be. terminated at any time by Lessor. ARTICLE VI REy°,TTAL AND CONCESSIONT PAYMENTS 1. Lessee covenants to pay to 'Lessor rentals and concession fees during the _life of this agreement and any option or holdover periods, at the rates, at the times and in the manner set forth below: Minimum Rent For the first two years of this lease, Lessee shall pay no Minimura Rent. For the third through the fifth years of the lease, Lessee shall pay a Minimum Rent equal to 70% of the Percentage Rent (computed for this purpose without deduction of Minimum Rent) for the second lease year. For the sixth through eighth, ninth through eleventh, twelfth through. fourteenth, fifteenth through seventeenth and eighteenth through twentieth years of the lease, Lessee shall. pay a Minimum Rent equal to the Minimum Rent for the third year multiplied by a fraction whose denominator is the total number of enplaned passengers at Palm Springs I.iunicipal Airport (as reported in enplaned passenger reports filed monthly in the Palm Springs Municipal Airport office by scheduled airlines) for the second year of the lease and whose numerator is the total number of enplaned passengers for the fifth, eighth, eleventh, fourteenth and seventeenth years of the lease, respectively. The Minimum Rent shall be paid in t-velve installments, monthly in advance. Percentage Rent Except as otherwise provided in this lease, Lessee shall pay to Lessor in addition to the Minimum Rent an amount of money calculated by deducting the Minimum Rent and Percentage Rent installments already paid for the current lease year from a sure computed upon. the following respective percentages of Lessee' s total Gross Receipts during the current fractional or full lease year, as the case may be : Food and Non-Alcoholic Beverages 5% of Gross Receipts Alcoholic Beverages First througgh fifth years - 5% of Gross Receipts Sixth through tenth years 70 of Gross Receipts Eleventh through twentieth years (if option to renew lease is exercised by Lessee) -- 12% of Gross Receipts Merchandise 100 of Gross Receipts. 2. Lessee shall furnish monthly, on or before the fif- teenth (15th) day of each month, a statement of its Gross Receipts from operations hereunder together with a payment of an i stallirlent of Percentage Rent, if any, calculated on the basis of the pre- ceding month' s Gross Receipts. Lessee shall furnish quarterly, -7- on or before the fifteenth (150 day of each January, April, July and October during the life of this lease, a statement of its Gross Receipts arising out of the operations of Lessee hereunder, for the preceding three (3) months, certified by an officer of Lessee. Each quarterly statement submitted by Lessee shall be accompanied by payment from Lessee of all additional sums of money, if any, which the certified state- ment shows to be due under the terms of this lease as Percent- age Rent. If the sum of the monthly installments of Percentage Rent paid in any lease year exceeds the total Percentage Rent due as calculated on the basis of the entire year 's Gross Receipts, Lessor, shall refund the excess in cash or as a credit against installments of Minimum Rent in the ensuing lease year, if any, 3. During the period after Lessee begins to do business in the Cocktail Lounge and Dining Space but before the team of the lease begins as specified in, paragraph l of Article 1V, Lessee shall pay Lessor a rent calculated in the same way as Percentage Rent for the first year of the lease term. There shall be no Minimum Rent during this period, 4. Lessor shall have the right during normal business hours to have a person of its own choice examine and audit the records and books of account of Lessee. 5. :itemized recording of sale items or services and totalling shall be separated at least to the extent that separate percentages are due to Lessor for different categories of mer- chandise or service. 6, if Lessee requests any additional rights and space beyond those granted in this lease, the consideration for such rights and spaces shall be the subject of separate negotiation: and amendment to this lease by Lessee and Palm Springs Airport Director with the approval of the Airport Cot-m"Issioners. _g.. 7. The term "Gross Receipts " employed herein shall be deemed to include the sales price of all merchandise of every sort whatever sold and charges for all services performed for which a charge is made by Harvey, or by any other person, persons or corporation selling merchandise or performing ser- vices of any sort in., upon or from any part of the demised premises, and shall include merchandise sold or services performed for cash or for credit or for any other consideration, but shall specifically exclude : (i) federal, state or municipal excise, occupation or sales taxes collected directly from patrons or as a part- of the price of any goods, wares, merchandise, services, or displays; (A) the proceeds of sale of scrap materials such as grease and waste paper, resulting from the operation of the business conducted on the demised premises; (M) trade-:in or sales value of any trade f:ixutves sold from the demised premises; (iv) amounts received from any concession- aires, licensees or sublessees as rent or other con.sideratioLi for ouch concession, license or sublease; (v) any amounts required to be paid to any local or national credit group or association as a fee for collecting for merchandise and food or liquor sold on credit; (vi) tip; and gratuities collected for or received by employees; (vii) the amount of the discount on all sales made to employees at discount from the regular price to customers; (vii.i) sales of postage stamps; and (Ix) the mere exchange or transfer of merchandise, supplies or equipment, where such exchanges or transfers are made solely for the convenient operation of the business on the demised premises and not for the purpose of depriving Lessor of the benefit of a sale which otherwise would be made at, in, from or upon the demised premises; nor shall said term include the amount of returns to shi.ppe,rs, suppliers or manufacturers, nor the amount of any cash or credit refund made upon any sale when the merchandise sold, or some part thereof, is thereafter returned by the purchaser, nor shall said term include the value of free meals to employees or for public relations reasons to other persons. ARTICLh, VII USE OF PREMISES 1. Lessee takes the premises described herein for the intent and purpose of operating a restaurant, cocktail lounge, bar, a shop for the sale of newsstand, and gift items and certain vending machines . Lessee covenants that it shall maintain and operate the food and beverage services on the premises in a high class manner, 2. Vending Machines . The Lessee small have the ex- elusive right in the terminal building to :install and operate vending machines for food, tobacco, candy and non-alcoholic beverages only. The number, type and location of such machines shall be subject to the prior written approval of the City 's authorl.ced representative, All of the income from deposits into Rich vending machines will be considered as part of Lessee 's gross receipts hereunder, The privilege of installing and operating coin operated amusement machines and devices is not included under this concession. The City specifically reserves the right to arrange for the installation of such pay telephones as the Lessee may desire, and to secure the income from such installations. 3. Lessee acknowledges that the City of Palm Springs has entered into a management contract with Airport Parking Company of America wherein charges are made for parking of vehicles at the Palm Springs Airport. Lessee further acknowledges _10. that the City has retained with said Company the right to institute a parking validation system for restaurant customers based upon a minimum guest check and a reduced parking rate for not to exceed two hours parking for Lessee 's customers. In the event Lessee institutes a validation system for customer parking, it is specifically understood and agreed that all costs of such validated parking shall be borne by Lessee. The City agrees to cooperate fully in establishing such reduced rate validation system, ARTICLE C:LE V I l l'. 1. If the premises leased to Lessee, including perma- nent improvements and additions which are installed by Lessee but whose ownership has been vested in Lesson by the terms of this lease, are partially damaged by fire, explosions the ele- ments, the public enemy, or other casualty, but not rendered untenantable, the same shall be repaired with due diligence by the City at its own cost and expense. If the damage shall be so extensive as to render such premises untenantable, but capable, of being repaired in thirty (30) days, the same shall be repaired with due diligence by the City at its own cost and expense. During such period of destruction or restriction, Lessee shall not be required to pay rent unless it continues operations and actually obtains receipts for sale of goods or services, upon which a rental shall be calculated solely as a percentage of the sales thereof as hereinbefore provided. 2. In the event :the premises are completely destroyed by fire, explosion, the elements, the public enemy or other casualty, or so damaged that they will remain untenantable for more than thirty (30) days, the City shall be under an obligation. to declare within thirty (30) days its intention to abandon or to repair and reconstruct the premises. sinless the City announces its intention to repair and reconstruct the premises within said. period, Lessee may cancel this lease by written notice to the City. -11- If the City announces its intention to repair and reconstract the premises but does not complete such repair and reconistruction within one year from the date of destruction, Lessee may cancel this -lease by written notice to the City. In the evei�t of can- cellation of the lease under the terms of this Article Viil, Lessee shall receive an equitable prop o),,tion of the insurance proceeds received by Lessor reflecting Lessee' s investment in permanent improvements and additions to the premises. During the period of destruction or restriction if the premises are repaired and reconstructed, Lessee shall not be required to pay rent unless it continues operations and actually obtains receipts for sale of goods or services, upon which a rental shall be calculated solely as a percentage of the sales thereof as hereinbefore provided. ARTICLE IX UTILI`i'l_ES AND SERVICES 1. Lessee shall pay for all gas, lights, pourer, tele- phone service, garbage and refuse disposal, janitorial service and all other utilities or services billed by suppliers directly to Lessee. 2. Lessor shall furnish heat and air conditioning without charge to Lessee. ARTICLE X LICENSES AND TAXES 1. Lessee shall procure and maintain at his own expense all licenses or permits necessary to legally conduct a business in the City of Palm Springs. Lessor agrees to cooperate fully with Lessee in establishing with. the Alcoholic Beverage Control Board the necessity for a liquor license in the airport terminal building. 2. Lessee covenants and agrees that it will pay, when due, all taxes vhich may be levied against Lessee' s property or operations under this lease, including all property, sales, use, business µc vi' i-s or other tag_. -12- ARTICLE XI INSURANCE 1. At its own expense, Lessee shall., throughout the term of this lease and any extension thereof, maintain public liability insurance against claims for bodily injury or death occurring upon the demised premises, Liability insurance shall afford protection to the limit of not Less than One Hundred Thousand Dollars ($100, 000) for bodily injury or death of any one person; not less than 'Three Hundred Thousand Dollars ($300, 000) with respect to bodily injury or death in any one occurrence; and not less than Toenty--five Thousand Dollar; ($25,000) with respect to property damage in any one occurrence, Such insurance shall include, but shall not be limited to, products liability. All of such insurance coverage shall name: Lessor as an additional. insured. 2. Lessee agrees that it will at all times during the term of this lease, at its o?ro cost and expense, protract, indem- nify and hold harmless Lessor from and against any and all loss, damage, or liability incurred by any not of neglect of Lessee or its agents, servants or employees within the demised premises, 3. Lessor agrees that it will at all times during the term of this lease, at its oven cost and expense, protect, indemnify and hold harmless Lessee from and against any and all loss, damage, or liability incurred by any act of neglect of Lessor or its agents, servants or employees within the terminal building,, ARTICLE X11 MA: FTENANCE OF B ILDIKG AND INSTALLED EQUIEp-MMINT 1 , The terminal building, concealed plumbing, electrical. wiring, walls, structure and roof shall be maintained structurally 13- by Lessor uaaless the :i rrcl;ent or condition which necesa i.tates the repair was created or caused by negligence of Lessee, its employees, agents or invitees, 2. Lessor shall have the right to enter the leased premises at all reasonable hours to conduct inspections, to make necessary repairs or alterations for the safety or preserva- tion of the building or to do any other thing which Lessor is required by this agree-merit to perform. 3. Lessor shall maintain the heating and airy condition-• ing equipment. ARTICLE :X11 r Ea: UST-VE RIGJ.-1 S 1, Lessee is hereby granted the exclusive might and privilege during the term of this Lease and any renewal thereof to operate the following types of business at the airport and any additions or extension., thereof o general restaurant, cock- tail louxo.ge, bar, gift shop, newsstarad, and vend-ing machines dispensing food, beverages, cigarettes and merchandise, 2. "Airport " shall mean all property now a part or later added to the Palm Springs Municipal Airport, excepting therefn)ra the following as more particularly shown. on attached E);iiibit °B": (i) Approximately thirty (30) acres west of. El Cielo Road designated for and used as the Civic Center, (ii) Approximately two hundred (200) acres of 3.and east of the Airport designated by zoning as Industrial Park area, (ii.i.) Approximately ten (10) acres in the northwest corner of the Airport now used as public works shop and yard area, NO School service center constituting approxi- mately five (5) acmes leased. to Palm Springs Unified School District. 3 The rights granted to Lessee, specified in Article VI relating to USE OFF PREMISES are subject to the right of the certificated passenger airlines to serve, at their own expense, food and beverages to their passengers and crews aloft, or for consumption by passengers and cress in aircraft grounded at the airport due to weather or mechanical conditions, or in the airline 's exclusive space in the terminal building when such food and beverages were originally scheduled to be served to such passengers and crews aloft. 4. In the event Lessor determines that the public inter- est will be served by construction of a hotel at the airport, Lessee shall be given a right of first refs,?.sal, to construct and operate such hotel.. If Lessee elects not to operate such hotel,, food and beverage service facilities at the hotel will be limited to a coffee shop no larger than required to serve the patrons of the hotel and in no case containing more than one seat per guest room in the hotel, ARTICLE XIV MANAGEMENT OFF BUSINESS, HOURS, PPS CES, QUA:11-T. All prerogatives of management and complete responsibility for the conduct of its business shall be vested in Lessee. However, Lessee shall : a, Cooperate with Lessor in establishing operating hours, consistent with good 'business practices, in the public interest, In any event, Lessee shall operate his premises during normal working hours and during all scheduled airline flight hours, seven (7) days a week, provided that nothing herein shall -15- require Lessee to remain open. from 11:00 P.M4 to 7:00 A.M. unless and until there is sufficient demand for food and beverage services during these hours to warrant remaining open, b. Maintain good service, dispensing only wholesome, well-prepared food and beverages and quality mer- chandise, at flair and reasonable pr_I.ces, comparable to the standards of quality and price at other air- ports of similar size and compatible with service and prices at local restaurants of comparable quality, ARTICLE XV AL'1TERA.TTON OF FPJTITSES,�SIGNS Lessee shall make no structural alterations, perform no substantial redecorating or equipment relocation, or install any type or size of sign without having first received the written consent of Lessor. ARTICLE XVI CANCELLATION HY" LESSEE This agreement shall be subject to cancellation by Lessee in the event of any one or more of the following: a. The permanent abandonment of the airport as a commercial air term?.nal, in which case Lessor shall pay Lessee an amount equal to the unamortized value of permanent improvements and additions to the premises installed by Lessee, b, The lawful assumption by the United States Government or any authorized agency thereof of the operation, control or use, or the acquisition by conden,iation or the exercise of the power of eminent domain under any federal or state statute by any governmental agency -16- or person vested with such power, of the airport or any substantial part thereof in such a manner as to substantially restrict Lessee for a period of at least sixty (60) days from operating thereon, in which case Lessor shall pay Lessee an equitable proportion of any award it may receive as a result Of such taking reflecting Lessee's investment in permanent improvements and additions to the premises. c. Issuance by any court of competent jurisdiction of an injunction in any way preventing or restraining the use of the airport if such an injunction remains in effect for a period of at least sixty (60) days , in which case Lessor shall pay Lessee an amount equal to the unarortized value of permanent improve- ments and additions to the premises installed by Lessee. d. If, after Lessee's Gross Receipts reach an annual volume of Three Hundred Thousand Dollars ($300,000) , Lessee receives a possessory interest tax bill which is more than .017 times its total Gross Receipts for the most recent calendar year and Lessee and the Palm Springs Airport Director with the approval of the Airport Commissioners and the City Council are unable to agree within sixty (60) days thereafter on new rental rates satisfactory to both parties, in which case Lessor shall pay Lessee an amount equal to the unamortized value of permanent improvements and additions to the premises installed by Lessee. ARTICLE XVII TERMINATION BY LESSOR 1 . In the event Lessee shall fail to perform, keep and observe any of the terms , covenants or conditions herein contained on the part of Lessee to be performed, kept and observed, Lessor may give Lessee written notice to correct such conditions or cure -17- ! i such default, and if such conditions or default shall continue for thirty (30) days after receipt of such notice by Lessee, Lessor may thereafter terminate this agreement by ten (10) days written notice, and at Lessor' s option the term hereby demised shall thereby cease and expire at the end of such ten-day v:ritten notice and in the same ma.nne.— and to the same effect as if it were the expiration of the leased term. 2. Lessor may terminate this agreement and all its obligations hereunder by giving Lessee ten (10) days written notice upon or after the happening of any of the following events : a. Filing by Lessee of voluntary petition in bankruptcy. b. Tnstituticn of proceedings in bankruptcy against Lessee and the adjudication of Lessee as a bankrupt pursuant to such proceedings if the judgment of such court shall remain unvacated or unstayed for a period of at least sixty (60) days . c. The taking of Lessee's assets by a court of competent jurisdiction pursuant to proceedings brought under the provisions of any federal reorganization, act if the judgment of such court shall remain unvacated or unstayed for a period of at least sixty (60) days . d. The appointment of a receiver of Lessee' s assets by a court of competent jurisdiction, if such appoint- ment shall remain unvacated or unstayed for a period of at least sixty (60) days . 3. No notice of cancellation under the terms of this Article XVTT shall be of any force or effect if Lessee shall have remedied the default prior to receipt of Lessor' s notice of cancel- lation, or if the nature of such default is such that a period in excess of thirty (30) days is necessary in order for Lessee to cure such default and Lessee shall, have commenced 'to cure such default and diligently continues to cure such default. 4. No waiver of default by Lessor of any of the terms, _18_ covenants or conditions hereof to be performed, kept or observed by Lessee shall be construed to be or act as a waiver of any subsequent default. Acceptance of rent by Lessor for any period of time after a default of any of the terms, conditions and covenants to be performed, kept and observed by Lessee shall not be deemed a v?aiver of any right of Lessor to cancel this agreement for failure of Lessee to so parform, keep or observe any of the terms, covenants or conditions of this agreement. ARTICLE XVIII ASSIGNMENT OR SUBLETTING The Lessor has granted this lease in consideration of Lessee' s experience, knowledge and outstanding ability to perform restaurant, bar, gift services in resort areas . It is therefore agreed that Lessee shall not assign this lease or any interest herein and shall not sublet the premises or any part thereof or suffer any other person to occupy the leased premises or any part thereof without first obtaining written consent of 'Lessor. Any such assignment or subletting without Lessor' s consent shall be void and shall, at the option of Lessor, terminate this lease. This lease, or any interest therein, shall not be assignable as to the interest of Lessee by operation of law without the written consent of Lessor, which consent shall not be withheld unreasonably. Notwith- standing the foregoing, Lessee may assign this lease to any corporation which shall merge with Lessee or into which Lessee shall be merged or otherwise consolidated or to any corporation to which Lessee shall sell or transfer all or substantially all of its assets and business, provided that assignee corpor- ation shall have assets not less than Lessee and shall operate under a corporate name containing the words "Fred ITa-rvey" or "Harvey. " -19- ARTICLE XrX SUTRRMADER Or, PREMISES Lessee will, at the expiration of the term hereof or upon any sooner termination thereof, without notice, quit and deliver up said premises to Lessor peaceably, quietly, and in as good order and condition., reasonable use and wear thereof excepted, as the same may be improved by Lessee or Lessor. ARTICLE XX ATTORH r'S FEES In the event any action or proceeding is brought to collect the rent due or to become due hereunder, or any portion thereof, or to take possession of saA(1 premises or to enforce compliance with this agreement, or for failure to observe any of the covenants of this agreement, Lessee agrees to pay Lessor such sum as the count may adjudge reasonable as attorney 's fees to be allowed in said suit, action or proceeding. ARTICLE XXI NOTICES All notices, demands, requests and other communications which may be or are required to be given by either party to the other shall be in writing, All notices, demands, requests and other communications by Lessor to Lessee shall be deemed to have been properly given if served personally on Lessee or if sent by United States registered mail, postage prepaid, addressed to Lessee at 80 East Jackson Boulevard, Chicago, Illinois 600 or such other place of business as may be designated from time to time by Lessee in a written notice sent to Lessor. All notices, demands, requests and other communications by Lessee to Lessor shall be deemed to have been properly given if served on -20- Lessor by serving the same personally on the City Clerk of the City of Palm Springs or if sent to Lessor by United States • registered. mail, postage prepaid, addvessed to City Hall, Po 0, Boy;. 850, Palm Springy», California 92262, ARTICLE X.XS;I SUCCESSORS DOD3dD The covenants, conditions and provisions herein con- tained shall apply to and bind the heirs, successors, executors, adm3.nistrators, and assigns of theparties hereto. ARTICLE XXII+' ARBITRATION In the event it becomes necessary to settle a dispute between Lessor and Lessee, each party to this agreement shall appoint one arbitrator, the two arbitrators so appointed shall jointly select a third arbitrator. The board thus formed shall decide the matter} .in dispute and issue a decision ti,:hich shall be binding on both parties. The decision issued shall include the prorata costs of arbitration to be borne by each party and may be entered as a judgmext in any couri. of competent jurisd.ictio , Piz WITNESS WHEREOF Lesson, and Lessee have caused this lease to be executed on the day of � P�� G � , 1965, CITY OF PALM SPRIJNGS, CALIFORUA ATTEST: F', D; ALESHIRE City Manager Ci y ' . k By�: 2 Depucyy FRED IIAI)VEY9 TNCC;' l ATTEST, � — Yrescien� o% mil- it Secretary -,2a.a STATE OF IL1,INOIS SS COUNTY OF COOK oregoing instrument was acknowledged before me this 1 1 day of September, 19e8, by Leslie w. Scott, Frel dentof Fred Harvey, Inc . , a Delaware corporation., on behalf of said corporation. 'J WWI l izb -Ey _c9mmission expires : 11Y co:-,'missiun Expires Aug, 2, 197,21 certify that T am tbegCity Clerk of the Munic A Corporation named as one of the parties in the foregoing lease; that, �ktLS (, ,'_29� —� who signed the lease on behalf of the Mun hipa i 23rporaiion was then C j j; N e -v of said Municipal Corporation; that said-lease Tas Puy igned .for and in behalf of said corporation by authority of its governing body, and is within the scope of its corporate powers. y�ler <` '�;�� i k 14, <v•�� Ffi I S' 11 isno ,'".. may' s °P=J - i ' �1I7 1 1� -�5� -{ �1 •k ,F,y ;"`t n. , �_a tai Efb -11 Fy��a�'8I 74�31i1>-i - J J - 1aihj� }1 •.IC' v x t•: S p�'P f - a� Y' �r -y� qF ✓ _ IS�': riXl r/- IN x�+ e 1 y i�% •fI'' t� - ids ?�-n 5 �s/- < .�ry t ■ _ � � ��}1„ ' � - - - � 3 :`Y ��,u ,q.. '' {�? `r : ■ I 41 1 4 1}N'1!�S 1 �u , ' -�' tla ,. x AECQ ■ � y m eft awl• .#' 'rir"` $ i3"�i �' h{r °Ki I ;J � Ljj, 71j'1 H IL 1 � _ - ■ _ _ ;'� Iz�Hxfzs _ _ _ ..� Ek I ■ -� _ 1 F_ _ � � fit•,. �� t a -' _ as X 4 i 1 +xb, =E.-, AREA � ,EwV,� AREA o��ES �ex�o�A=E • �� ptP"5 '� GROUND FLOOR PLAN t � t EXHIBIT "A" PAGE 1 • ! ..•s - uPPEa cONCOVPSE i 3 SECDND FLOON PLAN EXHIBIT "A" PAGE 2 RESOLUTION NO. 9326 OF THE CITY COUNCIL. OF THE CITY OF PALM SPRINGS, CALIFORNIA, APPROVING LEASE WITH FRED HARVEY, INC. , A DIVISION OF AMERICAN FACTORS - AGREEMENT NOa 612 WHEREAS, the City of Palm Springs owns the Palm Springs Municipal Airport and operates thereon an airport terminal building; and WHEREAS, the City of Palm Springs finds that it is in the public interest to have restaurant, bar and gift shop facilities operated in the said terminal building; and WHEREAS, Fred Harvey, Inc. , a Division of American Factors, has ex- pressed a desire to operate the terminal restaurant and said other terminal concessions; and WHEREAS, the Airport Commission has recommended that such lease be granted; NOW THEREFORE BE IT RESOLVED that the City Council of the City of Palm Springs does hereby approve Agreement No. 612 with Fred Harvey, Inc. for a term of ten (10) years, with an option to renew for an additional ten (10) years. The said agreement will become effective thirty (30) days after a notice of completion for construction of the restaurant spaces as shown on Exhibit "A" of the agreement is properly filed with the Palm Springs Airport Lease Company. Adopted this 23rd day of September, 1968. AYES Councilmen Foster, McCoubrey, Selig & Mayor Wiefels NOES None ABSENT Councilman Pitts ATTEST: F. D. ALESHIRE CITY OF PALM SPRINGS, CALIFORNIIA City Clerk City Manager Deputy APPROVED AS TO FORM CON S APPROVED it A orb ne"y port Di ector Date: 7— 646 5-A C ACONTINENT91 N9T/0N9Z FI�FINGROUP CERTIFICATE OF INSURANCE The Policy identified below by a policy number is in force on the date of Certificate Issuance. Insurance is afforded only with respect to those coverages for which a specific limit of lability has been entered and is subject to all the terms of the Policy having reference thereto. Nothing herein contained shall modify any provision of said Policy. In the event of cancellation of the Policy the Company issuing said Policy will make all reasonable effort to send notice of cancellation to the Certificate Holder at the address shown herein, but the Company assumes no responsibility for any mistake or for failure to give such notice. NAME AND ADDRESS OF INSURED FRED HARVEY, INC . DATE OF CERTIFICATE ISSUANCE: 80 EAST JACKSON BOULEVARD May 24, 1971 CHICAGO, ILLINOIS Marsh & McLennan ncy nc. NAME AND ADDRESS OF CERTIFICATE HOLDER w— uthorized Representative F City of Palm Springs Palm Springs, California L J THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE HOLDER TYPE OF INSURANCE IS DESIGNATED BELOW COVERAGES LIMITS OF LIABILITY EACH PERSON EACH OCCURRENCE AGGREGATE 1. §] Comprehensive Automobile Liability Bodily Injury Liability $250, 000 $500, 000 ❑ Schedule Automobile Liability Property Damage Liability 100 000 Bodily Injury and Property $ Damage Liability Combined ❑ Protection Against Uninsured Motorists Uninsured Motorists $ $ t II. fr1 Comprehensive General Liability Bodily Injury Liability $250, 000 $500, 000 $500, 000 ❑ Owners', Landlords'and Tenants' Liability Property Damage Liability $100, 000 $500, 000 ❑ Manufacturers' and Contractors' Liability Bodily Injury and Property $ $ ❑ Owner's and Contractor's Protective Liability Damage Liability Combined Ill. $] Workmen's Compensation A. Statutory Statutory Locations: ❑ Employers' Liability B. Bodily Injury $250, 000 IV. Workmen' s Compensation California f each accident Designate Company by Number in Box ❑ Below, Policy Number and Policy Expiration LCCP Ol 7450786R II.CCP Ol 7450786R III. WC Ol 76O3865R Policy Number © July 1, 1971 KI July 1, 1971 © July 1, 1971 Policy Expiration IV. WC Ol 760 36 16 V. VI. Policy Number Q July 1, 1971 0 0Policy Expiration Qi Continental Casualty Company © National Fire Insurance Company of Hartford ® American Casualty Company of Reading, Pa. 0 Transportation Insurance Company 0 Transcontinental Insurance Company Fq� Valley Forge Insurance Company Descriptions and Location of operations covered: I . All owned or non-owned automobiles operated by or for the Insured in the U.S.A. II . All operations of the Insured anywhere in the U. S . A. including products liability coverage. Specifically, Palm Springs Airport, Palm Springs, California. III . All operations of the Insured anywhere in the U. S. A. except Nevada, G-32343-F North Dakota, Ohio , Oregon, Washington, West Virginia or Wyoming.