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HomeMy WebLinkAboutRESOLUTION - 32-24 - 5/14/2024 - MUNCHIES PIZZA -3 TURNER AVENUE- LEASE TERMINATION AND RELOCATION AGREEMENTRESOLUTION NO.32-34 A RESOLUTION AUTHORIZING THE VILLAGE MANAGER AND VILLAGE CLERK TO EXECUTE A LEASE TERMINATION AND RELOCATION AGREEMENT WITH BARBELLO'S, INC. DB/A MUNCHIES PIZZA AND BAR (3 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 document marked: LEASE TERMINATION AND RELOCATION AGREEMENT WITH BARBELLO'S, INC. DB/A MUNCHIES PIZZA AND BAR 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 document 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 14th day of May 2024 APPROVED this 14th day of May 2024 APPROVED: Mayor Craig B. Johnson Village of Elk Grove Village ATTEST: Loretta M. Murphy, Village Clerk LEASE TERMINATION & RELOCATION AGREEMENT This LEASE TERMINATION & RELOCATION AGREEMENT ("Agreement") is entered into this 'day of May, 2024, by and between the Village of Elk Grove Village, an Illinois home rule municipal corporation located in Cook and DuPage counties ("Village") and Barbello's, Inc. d/b/a Munchies Pizza & Bar ("Tenant"). The Village together with the Tenant are collectively referred to as the "Parties." RECITALS A. Tenant previously had a lease agreement ("Lease") with the owner ("Owner") of the property commonly known as 25 Turner Avenue, Elk Grove Village, Illinois ("Property") authorizing Tenant to conduct certain business activities in the tenant space known as 3 Turner Avenue ("Unit"). B. As part of a future redevelopment plans, the Village has acquired the Property, had the Owner assign the Tenant's Lease to the Village, and ultimately plan to demolish the Property's existing structure and clear the Property for future redevelopment. C. Tenant has agreed to terminate its month -to -month 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 1. 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 terminate its operations 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 its prior Lease arrangements rent free from May 1, 2024 through the Termination Date. B. Village will waive all license fees at the Unit from the time of execution of the Agreement through the Termination Date. C. Village will pay the Tenant a termination fee totaling $80,000.00, plus the Tenant's security deposit of $2,100.00 (collectively, the "Fee"), representing the cost and expense to the Tenant necessary for the Tenant to terminate their operations on or before the Termination Date. D. If the Tenant decides to relocate its business operations to another location in the Village, the Village shall pay the Fee in installments to Tenant in advance of the Termination Date upon Tenant providing evidence of a new lease in installment payments set forth below: 1) $30,000 upon payment application for a new business license and payment of construction permits for the Tenant's new location on or before July 1, 2024; 2) $30,000 upon submittal of construction buildout receipts and physical proof construction taking place in the Tenant's new location; and 3) The remaining $22,100 will be paid 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's vacation of their current location and delivering to the Village the keys to the Unit on or before the Termination Date and Tenant's proof of Certificate of Occupancy for their new location. E. As an additional consideration should the Tenant relocate its business operations to another location in the Village, the Village will reimburse Tenant a total rent subsidy with respect to Tenant's new Lease in the amount of $45,000.00 payable in six (6) $7,500.00 installments payable on the sixth (61h), twelfth (12th), eighteenth (18th), twenty-fourth (24th), thirtieth (30th), and thirty-sixth (36th) month anniversary dates of the new lease commencement. F. If the Tenant does not decide to relocate its business operations to another location in the Village, the Village shall pay the Fee to the Tenant upon satisfaction of all of the following: (1) Tenant executing the Certification (contemporaneously with payment), 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 peaceably surrender the Unit. 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 its prior Lease, related to its use and occupancy of the Unit through the Termination Date. 2.05 No Further Claims. The Parties, including their successors, assigns, and any person or entity who could claim through them, each waive and release any and all claims and causes of action, legal or equitable, they may have against one another, including their officials, attorneys, employees, agents, and any other person acting on their respective behalf. 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, and this provision shall not be construed to limit either Party's right to enforce the terms of this Agreement. 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 Illinois Law. This Tennination Agreement shall be construed in accordance with the laws of the State of Illinois. [SIGNATURE PAGES TO FOLLOW] IN WITNESS WHEREOF, the Parties have duly executed this Relocation Agreement pursuant to all requisite authorizations as of the date first above written. ATTEST: Loretta M. Murphy, Villag lerk VILLAGE OF ELK GROVE VILLAGE, COOK AND DUPAGE COUNTIES, ILLINOIS, an Illinois Municipal Corporation By: MAhew-JlRoan Village Manager TENANT: ByOZ&,4Z� , Marie Altobello, President Barbello's, Inc.