HomeMy WebLinkAboutR-1995-172RESOLUTION NO. 172-95
A RESOLUTION OF THE CITY O['DANIA, FLORTDA
APPROVING LEASE AGREEMENT F'ORWATER SPORTS
CONCESSION BETWEEN THE CITY OF DANIA AND
PIER MANAGEMENT, INC., AND PRO}TDING FORAN
EF'I'ECTIVE DATE.
BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DANIA,
Section 1: That that certain Lease Agreement for Water Sports Concession between
the City of Dania and Pier Management, Inc., a copy of which is attached hereto as Exhibit "A",
be and the same is hereby approved and the appropriate city officials are hereby authorized to
execute same.
Section 2: That this resolution shall be in force and take effect immediately upon its
passage and adoption
PASSED and ADOPTED on this 12th day of December,1995.
Mayor -ssloner
,A€+ing Clerk - Auditor
APPROVED AS TO FORM & CORRECTNESS
*r.o^,t c. Gl,/r,t-By
Frank C. Adler, City Attomey Resolution No. 172-95
F'LORIDA:
ATTEST:
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AGREEMENT FOR OPERATION OF WATER SPORTS CONCESSION
THIS AGREEMENT made and entered into this 12th day of December, 1995, by and
between
CITY OF DANIA, a Florida municipal corporation (hereinafter referred to as the "City"),
and
DANIA PIER MANAGEMENT, INC., a Florida Corporation, (hereinafter referred to as
the "Contractor").
WITNESSETH:
WHEREAS, for the purposes and intents of this Agreement the parties hereto agree that
abbreviated, shortened or informal names, words, phrases or references may be sometimes used
herein for the purposes ofreducing the length of this Agreement and making its meaning clearer; and
WIIEREAS, the parties hereto further agree that such names, words, phrases or references
shall have, unless the context obviously requires otherwise, the following meanings and definitions,
to wit:
"City Manager": "City Manager" as used herein shall mean and refer to the City
Manager, City of Dania, Florida.
"Agreement": "Agreement", as used herein, shall mean and refer to the within
Agreement; and
WHEREAS, the City owns and controls Dania Beach which is a recreational facility that
the City owns in a proprietary capacity; and
WHEREAS, Article 4, Part XII, of the Charter of the City of Dania, a Florida municipal
corporation, authorizes the City to lease its property; and
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WIIEREAS, the City desires to lease a 50' x 50 space immediately north of the Dania
Ocean Pier on Dania Beach to the Contractor for the purpose of operating a watersport concession
under the terms and conditions stated herein; and
WHEREAS, the Contractor is willing to lease the said space for the purpose of operating a
watercraft concession on Dania Beach from the City under the said terms and conditions.
NOW, THEREFORE, KNOW ALL MEN BY THESE PRESENTS as follows:
AGREEMENT TO RENT
That for and in consideration of the rent herein reserved to be paid by the Contractor, and in
consideration ofthe covenants herein to be kept and performed by the Contrator, the City does
hereby lease unto the Contractor and the Contractor does hereby take from the City, a area,
TO HAVE AND TO HOLD the same for a term of six (6) months, commencing the
lst day ofJanuary, 1996 and ending the 30th ofJune, 1996, under the terms and conditions stated
herein.
RENT
The Contractor covenants and agrees to pay to the City as basic rental for the demised
property (during aforesaid term of six (6) months, the total sum of 2070 ofgross revenue plus
Florida sales tax thereon, payable in six (6) monthly installments with the first of said installments to
be due on the 1st day of February,1996, and the remaining installments to be due on the lst day of
each and every month for the month immediately preceding. Sales tax to be included in all fees.
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Said monthly payments shall be due and payable as aforesaid without demand at the City Hall,
Dania, Florida.
CONTRACT PERIOD/EXTENSION TERMS
The initial contract terrn shall commence upon final execution ofthe contract by the City or
January 1, 1996 whichever occurs last, and shall be for a six (6) months period. The City reserves
the right to extend the contract for additional terms providing all terms conditions and specifications
remain the same, both parties agree to the extension, and such extension is approved by the City
The rental rates lor any extension term(s) shall be subject to negotiation between the parties. If the
concessionaire desires an extension, the concessionaire shall notify the City in writing no later than
30 days prior to the expiration ofthe contract term then in effect. The notice shall contain the length
of the proposed extension, the proposed rental rates, new or additional equipment, and proposed
annual permit fee. The City shall noti$ the concessionaire of its decision within thirty (30) days
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SUBSTITUTION OF PERSONNEL
It is the intention of the City that the Contractor's personnel proposed for the contract will be
available for the initial contract term. In the event the Contractor wishes to substitute personnel, he
shall propose personnel ofequal or higher qualif,rcations and all replacement personnel are subject to
prior City approval. In the event substitute personnel are not satisfactory to the City and the matter
cannot be resolved to the satisfaction ofthe City, the City reserves the right to cancel the Contract
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for cause.
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INDEPENDENT CONTRACTOR
The contractor is an independent contractor under this Agreement. Personal services provided by the
Contractor shall be by employees ofthe Contractor and subject to supervision by the Contractor, and
not as officers, employees, or agents of the City. Personal policies, tax responsibilities, social
security, health insurance, employee benefits, purchasing policies and other similar administrative
procedues applicable to services rendered under this Contract shall be those of the Contractor.
UNCONTROLLABLE CIRCUMSTANCES ("Force Majeure")
The City and Contractor will be excused lrom the performance oftheir respective obligations under
this agreement when and to the extent that their performance is delayed or prevented by any
circumstances beyond their controI including, fire, flood, inclement weather which would present
customer with potential safety hazard, explosion, strikes or other labor disputes. act ofGod or public
emergency, war, riot, civil commotion, malicious damage, act or omission of any governmental
authority, delay or failure or shortage ofany type of transportation, equipment, or service from a
public utility needed for their performance, provided that:
A. the non-performing party gives the other party prompt written notice describing the
particulars of the Force Majeure including, but not limited to, the nature ofthe
occurrence and its expected duration, and continues to fumish timely reports with
respect thereto during the period ofthe Force Majeure;
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B. the excuse of performance is ofno greater scope and ofno longer duration than is
required by the Force Majeure;
C. no obligations of either party that arose before the Force Majeure causing the excuse
of performance are excused as a result ofthe Force Majeure; and
D. the non-performing party uses its best efforts to remedy its inability to perform
Notwithstanding the above, performance shall not be excused under this Section for a period in
excess of two (2) months, provided that in extenuating circumstances, the City may excuse
performance for a longer term. Economic hardship of the Contractor will not constitute Force
Majeure. The term of the agreement shall be extended by a period equal to that during which either
parly's performance is suspended under this Section.
ADDITIONS, DELETIONS AND CHANGES OF SERVICES
The City may require the addition or deletion of services from the Contract, during the contract term,
as the requirements and needs of the City change. This may entail, but not be limited to, additional
equipment, increases in the quantity of equipment, changes or elimination or equipment,
modifications in operating hours, or similar type changes. The Contractor must immediately modify
or otherwise initiate those changes required by the City.
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INSURANCE
General Liability Insurance coverage to remain in force at all times during the contracted term. The
following minimum insurance coverage per wave runner is required with the City added as an
additional insured:
COMPREHENSIVE GENERAL LIABILITY INSURANCE
Limits: Combined Single Limit Bodily Injury/Property Damage: $l,000,000
AUTOMOBILE LIABILITY INSURANCE
Limits: CombinedBodilylnjury/PropertyDamage:$ 300,000
CERTIFICATE OF INSURANCE must be lumished to and be approved by the City's Risk Manager
prior to the commencement of any work. the City shall be given ten (10) days written notice of any
cancellation or material change in any policy
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SUBCONTRACTING
The Contractor should be capable of performing all the services referenced in this agreement. If the
Contractor intends to use a subcontractor in the performance ofthese services, the same qualification
requirements, and all other terms and conditions of this Grant shall also apply to the subcontractor.
The City reserves the right to approve or reject any subcontractors proposed. The Contractor shall be
held fully responsible for the subconhactor's actions.
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INDEMNIFICATION/HOLD IIARMLESS
The Contractor agrees to protect, defend, indemnifr, and hold harmless the City of Dania and its
officers, employees and agents from and against any and all losses, penalties, damages, settlements,
claims, costs, charges for other expenses, or liabilities ofevery and any kind including attomey fees,
in connection with or arising directly or indirectly out of the work agreed to be performed by the
contractor under the terms of the agreement. Without limiting the foregoing, and all such claims,
suits, or other actions, relating to personal injury, death, damage to property, defects in material or
workmanship, actual or alleged violation ofany applicable statute, ordinance, administrative order,
rule or regulation, or decree ofany court, shall be included in the indemnity hereunder.
The Contractor assumes all risk in the operation of this concession and shall be solely responsible
and answerable in damages for accidents or injuries to persons or property, whether direct or
indirect, arising out of the operation of this concession or arising by virtue ofcarelessness,
negligence, or improper conduct of the Contractor or any servant, agent, or employee ofthe
Contractor.
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NON-DISCRIMINATION
There shall be no discrimination as to race, sex, color, creed, or national origin in the operations
conducted under this contract.
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PERMITS, LICENSES
The Concessionaire agrees to obtain and pay for all permits and licenses necessary for the conduct of
the business and agrees to comply with all laws goveming the responsibility of the employer with
respect to persons employed by the Contractor. The Contractor shall also be solely responsible for
payment of any taxes levied on the concession operation. In addition, the Contmctor shall comply
with all rules, regulations and laws, including permit requirements of Ordinance C-93-26, of the City
of Dania, Broward County, the State of Florida and the U.S. Govemment, now in force or hereafter
to be adopted.
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CONCESSION FEE PAYMENTS
The Contractor shall pay to the City twenty percent (20%) of gross revenue on a monthly basis. Atl
payments shall be presented to the City Manager by check payable to the City of Dania, on the first
of each month for the month preceding.
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SALES TAX
It is understood that the applicable Florida State Sales Tax, payable on those concession lees due the
City, shall be paid directly to the State of Florida by the Contractor. It is the intent of the City
that it is to receive the rental amount net, free and clean or all costs and charges arising from, or
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relating to, said demised premises.
Florida State Sales Tax is also payable on all revenues gained as a result ofgross sales on the rental
fees for watercraft. The sales tax must be submitted to the State of Florida. in accordance with
applicable laws. The term "gross sales" is understood to mean all income collected or accrued,
derived by the Contractor under the privileges granted by the Agreement entered into with the City,
excluding amounts ofany State Sales Tax or other tax, collected by the Contractor from customers
and required by law to be remitted to the taxing authority.
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The Contractor shall maintain during the term ofthe contract, all books of account, receipts,
invoices, reports, and records in accordance with Generally Accepted Accounting Principles and
standards. The form ofall records and reports shall be subject to the approval of the City's Finance
Director/City Clerk. Recommendations for changes, additions or deletions by the City's Finance
Director/City Clerk complied with, by the Contractor. The City's F'inance Dircctor/City Clerk or
other representative authorized by the City, must be permitted, during normal business hours, to
audit and examine the books of account, reports, and records relating to this contract.
The Contractor shall maintain and make available, in Broward County, Florida, such records and
files for the duration ofthe contract and retain them for a period of two (2) years beyond the last day
of the contract term.
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RECORDS
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OPERATING REGULATIONS
All City, County and State laws and regulations relating to the operational use of the City's
beachfront areas, shall be adhered to by the Contractor, his representatives and employees. This
shall relate to laws currently in force and those adopted hereafter.
There shall be no ovemight storage of any type on the beach except with prior City approval. The
Security for all property, equipment and supplies owned and provided by the Contractor, shall
remain the responsibility of the Conhactor. Costs relating to the repair or replacement of such items,
stolen, lost, or damaged, shall be at the expense ofthe Contractor.
The Contractor will be responsible for all damage to City property or the City beachfront, during the
hours of operation. Any such damage that may occur during stated times, shall be corrected at the
expense of the Contractor.
The Contractor will conduct his operation and provide contracted services, in such a manner as to
maintain reasonable quiet and minimize disturbance to the general public.
The Contractor's vehicles, trailers and equipment shall be in a neat, clean and well maintained
condition at all times. Any repairs, cleaning or other maintenance as required to maintain a cleal
and safe working environment, shall be provided on a continuous and immediate schedule. The
Concession operation must be maintained as to provide an aesthetically pleasing appearance and not
be detrimental to the immediate surroundings, appearance and not be detrimental to the immediate
surroundings.
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PAITKING REQU IIIE,MENTS
City will provide five (5) spaces in the permit lot on the northwest comer of the existing Parking Lot
to Contractor for employee and equipment storage.
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OPERATING PROCEDURES
The Contractor shall post rental rates for all equipment, stating a cost per hour, hatf(l/2) day or full
day or as requested ofthe city, as applicable. Should a deposit and./or security payment also be
required for the rental of equipment, this must so be stated.
Rental equipment shall nor be so positioned in the beach area, as to obstruct the view ofany
lifeguards or their work stations, thus preventing or reducing the quality of needed services. Should
this condition develop, the Contractor shall immediately, upon notification from the lifeguard
personnel, take any and all actions as instructed by such City personnel. to correct this situation
The Contractor shall instruct and identify for customers ofrental equipment, that area designated as
Swimming Area only. This area, defined in current City Codes Section "Restricted Area"
currently restricts such operations in an area 400 feet east of the current shore water line. The
Concessionaire will also restrict operation within 100 feet of the nearest swimmer, regardless ofthe
proximity of this person to the shoreline. This defined Safety or Protected Zone, may be modified
and revised during the course of this contract as determined by changes in the referenced City Codes
or as determined necessary by City personnel
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All rental equipment shall be inspected on a daily basis and prior to commencement of the rental
operation. Any equipment determined not to be in sound mechanical or working condition, shall not
be utilized until noted defects are corrected.
A powered chase vessel must be available and on site to be utilized as required in this operation.
Such vessel shall be available to control and insure the proper operation of rental vessel in the
designated and authorized areas only. Chase vessel will be equipped with an electronic device
capable ofdisabling the operation ofany rental vessel not complying with the rules ofoperation.
This vessel shall also be available to assist as needed to tow rental vessels, either inoperable, non-
controllable or otherwise incapable of normal movement. Such vessel shall be driven by either by
jet or propeller. Should a propeller driven vessel be utilized, the Contractor must provide a guard or
similar device to prevent contact with the propeller.
Contractor shall prohibit anyone under the age of 16 from renting or otherwise using their watercraft.
All rental watercraft shall adhere to applicable registration and license requirements ofthe State of
Florida.
Any change or addition to the Contractor's operation will require prior review and approval of all
applicable City Departments.
The City reserves the right to issue additional beach rules and regulations as deemed necessary by
the City. Contractor agrees to abide by any new or revised rules and regulations that the City deems
necessary.
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EQTIIPMENT
The Proposer must provide and maintain at its own cost and expense, all equipment required to
operate the concession. In the event of loss, stolen or damaged equipment or facilities, any and all
required repairs and/or replacement of equipment, shall be at the cost and expense ofthe Contractor.
The Contractor shall also be responsible to provide, install and maintain all regulatory buoys during
operating hours as requited to define operating areas. Buoys shall be at least 18 inches in diameter
and of a high visibility color. A11 signage, if allowed, must be in complete compliance with City
Codes and beach regulations.
Ali rental equipment shall be color coded or otherwise plainly marked so as to permit identification
from a distance of 150 yards.
No maior repairs to equipment shali be allowed on the saldy beach.
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OPERATING SCHEDULE
During the term ofthis contract, the facility shall be open and properly staffed seven (7) days per
week, on a 52-week per year schedule, with appropriate hours to serve the beach patrons and the
general public. Exceptions to this operations schedule shall only be considered when inclement
weather conditions do not warrant the operation ofthis concession service or with an advance
request for such change and approval by an authorized City Representative.
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PRICING
The Contractor agrees that prices and fees charged for concession services shall be competitive with
those charged for similar merchandise and/or services in the Tri County (Palm Beach, Dade and
Bror.vard) area
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INSTRUCTIONS
As to provide full service and maximize the potential for rental of equipment, the Contractor shall
pre-screen all renters to determine their ability to operate rental equipment. The Contractor shall be
capable ofproviding complete instructions on the proper, correct and safe usage olsuch equipment.
These instructions shall include verbal directions and a demonstration ofthe equipment's proper
usage
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PERSONAL SAFETY EQUIPMENT
The contractor shall have available and provide an approved personal flotation device to all renters
of watercraft equipment. Such device shall be of the type and class approved for such use by the
Coast Guard. It shall be the sole responsibility of the Contractor to insure the renter is capable of
properly adjusting and using such a device. Information on the proper use of this equipment must be
provided to the user should there be any doubt relating to the renter's ability to properly use this
equipment.
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The Contractor shall insure that such device is being wom properly, prior to the operator leaving the
beach area. Removal of such equipment during the rental period while equipment is actually in use,
shall be constructed as a violation ofthe rental agreement. Corrective measures shall be immediately
taken or the rental craft shall be retumed to the concessionaire site. The mandatory use of this
equipment must be stated on a display sign in the immediate area of the rental site.
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APPEARANCE OF PREMISES
The Contractor shall be responsible to have a neat, clean and orderly operation at all times and be
responsible for maintaining that condition during operating hours within an area offifty feet (50') of
The Conctractor shall provide at his own expense all trash and rubbish receptacles within the
confines of his area in a quantity adequate for his own use and that of the public. The removal and
disposal ofthis trash and rubbish shall be the responsibility of, and at the expense ofthe City.
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EMPLOYEE QUALIFICATIONS AND APPEARANCE
The Contractor shall employ workers to service this operation whom are literate, neat, clean, well
groomed and courteous. At least one person of Contractor's staff will maintain certifrcations inCPR
and First Aide.
The Contractor will oversee the daily operation of this concession and with the full authority to
direct the operation and immediately take all corrective action required to correct erroneous
procedures and insure complete and continuous compliance with the specifications contained herein.
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the concession site.
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BEACH REGULATIONS
The Contractor shall abide by all rules and regulations, established at the beach location and intended
for use by the general public.
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CONTRACTOR'S RIGHTS
The City warrants and agrees to protect the Contractor(s) against the rental of like equipment on
public beaches within the established boundaries ofthe Dania Beach.
This Agreement does not include a contract for the rental of cabanas, and similar types of equipment,
or any types of food or beverage.
SPECIAL EVENTS
The City will hold sponsored and cosponsored events and activities on the Dania Beach from time to
time. During such events, the Contractor may be allowed to continue operations or be assigned a
temporary location elsewhere within close proximity of the originally assigned site. During the
event, the Contractor has the option of operating his equipment from the temporary site or stopping
operations until the event is over. The City reserves the right to allow other concessionaires to
operate upon the originally assigned site or in close proximity to that site during the special events as
may be approved by the designated City Representative.
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DEFAULT
(1) If Contractor abandons or vacates the premises prior to the expiration ofthe term
hereof, or
(2) If Contractor fails to make the payments as set forth herein and said payment is not
made within 15 days after written notice is given to Contractor, or
(3) If Contractor fails to perform in accordance with any ofthe other terms and
conditions herein contained, and such default is not cured within fourteen (14) days after written
notice is given to Contractor, the City, at City's option and without further notice or demand to
Contractor, may enter into possession ofthe Premises and all improvements thereon and remove
all persons therefrom and may either take possession of all fumiture, equipment, and other personal
property of Contractor found on the Premises or remove such property or any part of it and store it at
Contractors expense. City may terminate this agreement without prejudice to City's law.lul rights
and remedies against Contractor.
BANKRUPTCY OR INSOLVENCY
If Contractor is adjudicated a bankrupt or makes an assignment for the benefit ofcreditors, or if the
leasehold interest is sold under a legal order, orjudgment, City shall have the right to immediateiy
terminate this contract and re-enter the Premises without notice or demand.
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SUBLEASE AND ASSIGNMENT
Contractor shall not sublease the Premises or any part thereofnor enter into any concession
agreement, nor assign this contract or any portion thereofto any other person or firm without first
obtaining the prior written approval ofthe City. Contractor agrees that no shareholder shall sell,
assign, transfer or convey his stock (except by operation of law) nor shall the corporation issue any
additional shares of stock without the prior written consent ofthe City, which shall not be
unreasonably withheld. Provided, however, that the shareholders shall have the right to convey
between themselves and their spouses and children without consent.
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INSPECTION OF PREMISES
For the purpose of inspection, City reserves the right to enter upon any part ofthe Premises at any
time during the period the business is to be open under the terms of this lease.
NOTICES
All notices and rental payments shall be sent to the parties at the following addresses:
City City of Dania
City Manager
100 W. Dania Beach Blvd.
Dania. FL 33004
Dania Pier Mgmt., Inc.
300 North Beach Road
Dania, FL 33004
Contractor:
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City and Contractor may change such addresses at any time upon giving the other party wfitten
notification.
All notices under this lease must be in writing and shall be deemed to be served when delivered to
the address ofthe addressee. All notices served by mail shall be registered mai[, retum-receipt
requested.
Contractor may designate additional persons for notification ofdefault.
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ATTORNEY FEES
Contractor agrees to pay the cost ofcollection and reasonable attomeys' fees on any part of said
payment that may be collected by suit or by attomey after the same is past due. In the event of any
olher litigation the prevailing party shall be entitled to collect attomeys' fees and court costs from the
losir.rg party.
TERMS BINDING ON SUCCESSORS
All ofthe terms and conditions ofthis contract shall insure to the benefit ofand be binding upon the
successors and assigns of the parties hereto.
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SIGNS
No signs whatsoever, including advertising signs, shall be erected or permitted upon the Premises
until the plans have first been submitted to the City in accordance with all Federal, State and City
Laws, Statutes and Ordinances and approval received in writing.
IN WITNESS WHEROF, the parties hereto have caused these presents to be executed the
date and year first above written.
CITY OF DANIA, a Florida municipal
Corporation, LANDLORD
ATTEST:
By:
MAYOR - Commissioner
City Clerk/Finance Director
By:
Mike Smith, City Manager
PIER MANAGEMENT. INC.. Tenant
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APPROVED AS TO FORM AND
CORRECTNESS
By
Frank C. Adler, City Attorney
Thomas Zannucci. President
By
By:
Donald V. Streeter. Vice President
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