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HomeMy WebLinkAboutRESOLUTION - 27-24 - 4/23/2024 - 53-55 TURNER AVENUE, MIXX HAIR SALON, LEASE TERMINATIONRESOLUTION NO. 27-24 A RESOLUTION AUTHORIZING THE MAYOR AND VILLAGE CLERK TO EXECUTE A LEASE TERMINATION AGREEMENT WITH MIXX HAIR SALON (53-55 TURNER AVENUE) NOW, THEREFORE, BE IT RESOLVED by the Mayor and Board of Trustees of the Village of Elk Grove Village, Counties of Cook and DuPage, State of Illinois as follows: Section 1: That the Mayor be and is hereby authorized to sign the attached documents marked: LEASE TERMINATION AGREEMENT a copy of which is attached hereto and made a part hereof as if fully set forth and the Village Clerk is authorized to attest said documents upon the signature of the Mayor. Section 2: That this Resolution shall be in full force and effect from and after its passage and approval according to law. VOTE: AYES: 6 NAYS: 0 ABSENT: 0 PASSED this 23rd day of April 2024 APPROVED this 23rd day of April 2024 APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village ATTEST: Loretta M. Murphv, VillalZe Clerk LEASE TERMINATION AGREEMENT This LEASE TERMINATION AGREEMENT ("Agreement") is entered into this 1 / 11 day of April, 2024, by and between the Village of Elk Grove Village, an Illinois home rule municipal corporation located in Cook and DuPage counties ("Village's and Mixx Hair Salon ("Tenant"). The Village, together with the Tenant, are collectively referred to as the "Parties." RECITALS A. Tenant has a lease agreement ("Lease") dated January 1, 2023 with the owner ("Owner") of the property commonly known as 25 Turner Avenue, Elk Grove Village, Illinois ("Property") authorizing Tenant to occupy and conduct certain business activities in the tenant space known as 53-55 Turner Avenue ("Unit"), all as set forth in the Lease. The Lease terminates on December 31, 2027, and has an additional five (5) year option that terminates on December 31, 2032. B. As part of a future redevelopment plan, the Village intends to acquire the Property, have the Owner assign the Lease to the Village, and ultimately demolish the Property's existing structure and clear the Property for future redevelopment. C. Tenant has agreed to terminate its tenancy under the Lease and vacate the Unit under the terms and conditions set forth herein. NOW THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements contained herein and other good and valuable consideration, the sufficiency of which is hereby acknowledged, the Parties do hereby agree as follows: I RECITALS PART OF AGREEMENT The recitations set forth in the foregoing recitals and all exhibits attached hereto are material to this Agreement and are hereby incorporated into and made a part of this Agreement as though they were fully set forth in this Article I. II TERMINATION OF LEASE 2.01 Termination of Lease. The Parties hereby agree that the Tenant shall, at its sole cost, vacate the Unit and the Lease shall terminate no later than 2:00 p.m. CST on October 1, 2024 ("Termination Date"). 2.02 Consideration from Village. In consideration of Tenant complying with this Agreement's terms, the Village hereby agrees to the following: A. Tenant shall have the right to continue to operate its business at the Unit in accordance with the Lease rent free from May 1, 2024 through the Termination Date. B. Village will pay the Tenant the sum of $250,000.00, plus the Tenant's security deposit of $4,200.00 for total compensation in the amount of $254,200.00 (collectively, the "Fee"), as compensation for the termination of Tenant's lease and Tenant's costs and expenses for Tenant's relocation and build -out of its new space, in accordance with Section 2.02C and 2.02D. C. Village shall pay the Fee to Tenant in installment payments of $50,000.00 each on May 1, 2024, June 1, 2024, July 1, 2024 and August 1, 2024 (totaling $200,000.00 of the $254,200.00 Fee amount) and a final payment of $54,200.00 on the Termination Date of October 1, 2024 in accordance with Section 2.02E. D. Village will waive all license fees from the time of execution of the Agreement through the Termination Date; and E. Village shall make the final Fee payment to Tenant upon satisfaction of all of the following: (1) Tenant executing the Certification, attached hereto, on or before the Termination Date, and (2) Tenant vacating the Unit in accordance with Section 2.03 and delivering to the Village the keys to the Unit on or before the Termination Date. 2.03 Removal of Personal Property; Surrender of Unit. On or before the Termination Date, Tenant shall remove any and all personal property located in the Unit and on the Property and Tenant shall peaceably surrender the Unit, broom clean and in good order and condition, except for reasonable wear and tear. 0 2.04 Insurance. Tenant hereby agrees it shall maintain any and all insurance policies Tenant currently has, and all insurance policies Tenant is required to provide under the Lease, related to its use and occupancy of the Unit through the Termination Date. 2.05 No Further Claims. From and after the Termination Date, and subject to the Parties complying with this Agreement's terms, the Parties hereby agree that neither Party shall have any claim or cause of action against the other arising from this Agreement. For the avoidance of doubt, Tenant acknowledges that after the Termination Date, it shall not have the right to enter or occupy the Unit or the Property, provided that Village has fulfilled all its obligations. 2.06 No Other Agreement. Except as expressly provided herein, this Lease Termination Agreement contains all agreements and understanding between the Parties, who agree that there are no other promises or representations between them that are not expressly stated herein. 2.07 Lease. The Parties understand and agree that, except as modified by this Agreement, the Parties' rights and obligations under the Lease shall remain in full force and effect. The Tenant hereby consents to the Owner's assignment of the Lease to the Village. 2.08 Non -Disparagement. The Parties agree that, unless required to do so by legal process, they will not, through the Termination Date (the "Non -Disparagement Period"), make any disparaging statements or representations, either directly or indirectly, whether orally or in writing, by word or gesture, to any person whatsoever, about the other Party or any person or entity affiliated with the other Party. For purposes of this Paragraph, a disparaging statement or representation is any communication which, if publicized to another, would cause or tend to cause the recipient of the communication to question the business condition, integrity, competence, good character, or quality of the person or entity to whom the communication relates. 2.09 Illinois Law. This Termination Agreement shall be construed in accordance with the laws of the State of Illinois. 4W 2.10 Village Contingency. The Parties acknowledge that this Agreement's obligations shall not be binding on the Parties until the Village acquires title to the Property. [SIGNATURE PAGES TO FOLLOW] 12 IN WITNESS WHEREOF, the Parties have duly executed this Agreement pursuant to all requisite authorizations as of the date first above written. ATTEST: Lofetta M. Murphy, Viage Clerk VILLAGE OF ELK GROVE VILLAGE, COOK AND DUPAGE COUNTIES, ILLINOIS, an Illinois Municipal Corporation By: Matthew I Roan Village Manager TENANT: womoz; F--; "NE, RA" Heather Had Mixx Hair Salon By k-4,tSC S'C� a,, Denise Scianna Mixx Hair Salon By 4/ta elli Brown Mixx Hair Salon 40 CERTIFICATION I, Heather Haftl, being the Tenant of 53-55 Turner Avenue ("Unit") at 25 Turner Avenue, Elk Grove Village, Illinois ("Property") do hereby certify and acknowledge to the Village of Elk Grove Village ("Village") the following: 1. I have vacated the Unit and removed all of my personal property from the Unit in accordance with the Lease Termination Agreement with the Village dated April Y�, 2024, I have no further rights to enter or occupy the Unit, and the Lease (as defined in the Lease Termination Agreement) is hereby terminated. 2. I have received payment in full in the amount of $254,200, all in accordance with the Lease Termination Agreement. 3. I have no further claim against the Property or the Village, pursuant to the Lease or the Lease Termination Agreement and have no further rights as to the Unit or Property. The Mixx Hair Salon Company/Business Name Heather Haftl Print Name of Owner/Business Representative Signature of Owner/Business Representative Date CERTIFICATION I, Denise Scianna, being the Tenant of 53-55 Turner Avenue ("Unit") at 25 Turner Avenue, Elk Grove Village, Illinois ("Property") do hereby certify and acknowledge to the Village of Elk Grove Village ("Village") the following: 1. I have vacated the Unit and removed all of my personal property from the Unit in accordance with the Lease Termination Agreement with the Village dated April Ar �024, I have no further rights to enter or occupy the Unit, and the Lease (as defined in the Lease Termination Agreement) is hereby terminated. 2. I have received payment in full in the amount of $254,200, all in accordance with the Lease Termination Agreement. 3. I have no further claim against the Property or the Village, pursuant to the Lease or the Lease Termination Agreement and have no further rights as to the Unit or Property. The Mixx Hair Salon Company/Business Name Denise Scianna Print Name of Owner/Business Representative Signature of Owner/Business Representative Date CERTIFICATION I, Kelli Brown, being the Tenant of 53-55 Turner Avenue ("Unit") at 25 Turner Avenue, Elk Grove Village, Illinois ("Property") do hereby certify and acknowledge to the Village of Elk Grove Village ("Village") the following: 1. I have vacated the Unit and removed all of my personal property from the Unit in accordance with the Lease Termination Agreement with the Village dated April ;�024, I have no further rights to enter or occupy the Unit, and the Lease (as defined in the Lease Termination Agreement) is hereby terminated. 2. I have received payment in full in the amount of $254,200, all in accordance with the Lease Termination Agreement. 3. I have no further claim against the Property or the Village, pursuant to the Lease or the Lease Termination Agreement and have no further rights as to the Unit or Property. The Mixx Hair Salon Company/Business Name Kelli Brown Print Name of Owner/Business Representative Signature of Owner/Business Representative Date