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HomeMy WebLinkAboutR-81-0097rs V V � RESOLUTION NO. _9 t, A RESOLUTION AUTHORIZING THE CITY MANAGER «� f Ur � � � ��� �� TO EXECUTE AN AMENDMENT TO THE AGREEMENT WITH BUNKER'S INC., CONCESSIONAIRE FOR THE MELREESE RESTAURANT, PRO SHOP, AND DRIVING � J RANGES, TO PROVIDE ALTERATION TO THE RENTAL SUM PAYMENTS TO THE CITY FOR THE PRO SHOP ?� ONLY FROM FIVE PER CENT (5%) OF THE GROSS FOLLOW K SALES TO TEN PER CENT (10%) OF THE NET GROSS • PROFIT, TO ALLOW FOR THE INCORPORATION OF DISCOUNT GOLF SALES AT MELREESE. WHEREAS, Bunker's Inc., Concessionaire at the City of Miami's Melreese Golf Course, has requested an alteration to the Rental Sum Payable to the City, Pro Shop only, in order to feasibly incorporate discount golf sales into the Melreese Pro Shop, and WHEREAS, a number of golf discount businesses have opened in the Greater Miami area, offering discount prices on pro -line equipment and has steadily captured the trade of the golfing public, and WHEREAS, in an effort to maintain said service at Melreese by adequately competing with the above mentioned discount businesses, an alteration to the Rental Sum Payable to the City would be economically appropriate for both the City and Concessionaire, ultimately increasing revenues for both: NOW, THEREFORE, BE IT RESOLVED BY THE C0111MISSION OF THE CITY OF MIAMI, FLORIDA: Section 1. The City Manager is hereby authorized to execute the attached amendment to the Agreement between the City of Miami "SUPPORTIVE 11,1 L! 0 IP "DT)CUc ENT I"I^''X ITEM NO CM COMMISSION � MEETING OF FEB 1 1 1981 RESOLUTION NO, , 9 7 r► a U and Bunker's, Inc., Concessionaire for the Melreese Restaurant, Pro Shop and Driving Ranges, dated January 30, 1978. PASSED AND ADOPTED THIS 11TH 1981. DAY of FEBRUARY MAURICE A. FERRE M A Y O R ATTEST: RALP OtdGIE, CITY CLERK PREPARED AND APPROVED BY: ASSISTANT CITY ATTORNEY APPROVED AS TO FORM AND CORRECTNESS: CL.ARK ACTING CITY ATTORNEY g I-97 AMENDMENT NUMBER Amendment to Contract Between the City of Miami and Bunkers, Inc. This AMENDMENT, entered into this day of ; 1981, by and between the City of !•Miami, a municipal corporation of the State of Florida, (hereinafter referred to as "THE LESSOR") and Bunkers, Inc., a solely owned corporation of the State of Florida, (hereinafter referred to as "THE LESSEE"), amending the existing Agreement between the LESSOR and the LESSEE, dated January 30, 1978. In CONSIDERATION of the mutual covenants and agreements hereinafter set forth, and for and in consideration of other valuable consideration, the parties hereto covenant and agree as follows: 1. That paragraph 6, "RENTAL SUM PAYABLE TO CITY", section (b) "Pro Shop", shall be deleted and substituted as follows: 6. SUM PAYABLE TO THE CITY (b) Pro Shop: LESSEE shall pay to the City ten percent (10%) of the net gross profit, defined to be the gross sales (hereinafter defined) minus the cost of merchandise for those sales or a minimum annual guaranteed amount of Three Thousand Dollars ($3,000.00), whichever amount is the greatest. The percentage sum shall be paid to the City on, or within fifteen (15) days after the first day of each calendar month, and shall include five percent (5%) of the gross receipts realized from the sale of golf ball recovered from the Melreese Colf Course water hazards. If the LESSEE elects to sub -lease the privilege of golf ball recovery, by virtue of permission granted by the City Manager, the CITY's percentage of gross sales on these recovered golf balls shall be computed on the gross sales of the Sub -Lease and not on LESSEE's receipts for his Sub -Lease. This shall be true in any sub -lease circumstances which LESSEE may arrange as a result of his privilege granted under this Agreement. Monthly percentage payments made to the City shall be accompanied by a statement of the revenues earned during the preceding month by virtue of fhis Agreement. If, at the end of each year of operation, the percentage payments to the City do not equal the guaranteed annual amount "SUPPORTIVE FOLLq it 1 CITY OF' !•!IAMI, FL.OR!DA INTER -OFFICE MEMORANDUM Richard L. Fosmoen CIA If City Manager suair cr ,��tlt��� Albert H. Howard, ��cYtor CRJ,4 Department of Leisure Services <<<.FF F :Nc.E:S J' VP2Fti January 8, 1981 <«F: Proposed Resolution Amending Agreement of Bunker's Inc. It is recommended that the Agreement with Bunker's Inc., Concessionaires for the Melreese Restaurant, Pro Shop, and Driving Range, be amended by altering the Rental Sum Payable to the City, Pro Shop only, from five per cent (5%) of the gross sales to ten per cent (100) of the net gross profit with the same minimum annual guarantee of $3,000, as per the attached resolution. Bunker's Inc., a solely owned Florida Corporation of one Charles DeLucca, has requested alteration to the Rental Sum Payable to the City for the Pro Shop only, to allow him to incorporate discount sales into the Pro Shop business. The granting of this request would allow the Melreese Pro Shop to be competititve with the many Golf Discount businesses in the Greater Miami area. The'Pro Shop' concept has become antiquated and no longer profitable, as demonstrated by the fact that the City has always received the minimum annual guarantee from the Melreese Pro Shop. In prior years, pro shops had exclusivity on the selling of pro -line equipment; however, anti-trust legislation has removed this exclusivity initiating the growth of golf discount shops offering pro -line equipment. It is, therefore, the recommendation of the Department of Leisure Services that the consideration to the City for the Pro Shop only, be amended from five per cent (5%) of the gross sales to ten per cent (10%) of the net gross profit (the gross sales minus the cost of merchandise for those sales) as per the attached resolution. Anti/Cti/vsd Cz encl. ,. c.- ry © r1 7