HomeMy WebLinkAboutResolutions - 2006.12.14 - 28106December 14, 2006
MISCELLANEOUS RESOLUTION 106245
BY: PLANNING AND BUILDING COMMITTEE, CHARLES E. PALMER, CHAIRPERSON
IN RE: PARKS AND RECREATION COMMISSION — LEASE WITH OAK MANAGEMENT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
WHEREAS in February, 2005, the Oakland County Parks and Recreation Commission
(Commission) requested that the County's Department of Corporation Counsel review a
proposed 1 1 th Amendment to a Concession Agreement originally entered into between the
Commission and Oak Management in April, 1974; and
WHEREAS the 1974 Agreement and the subsequent Amendments to it provide that Oak
Management operate the food and/or alcohol concessions at the following County parks:
White Lake-Oaks Golf Clubhouse
Addison-Oaks Conference Center
Addison-Oaks Concession Stand
Springfield-Oaks Golf Clubhouse
Springfield-Oaks Youth Activities Center
Independence-Oaks Concession Stands
Waterford-Oaks Activities Center
Waterford-Oaks Wave Pool Concession Stand
Groveland-Oaks Concession Stand
Glen Oaks Golf Clubhouse;
Red Oaks Water Park;
Lyon Oaks Golf Course; and
WHEREAS this Agreement and subsequent Amendments also give Oak Management
"the exclusive right in all facilities subject to this agreement to operate restaurant facilities."; and
WHEREAS upon reviewing the proposed 11 th Amendment, the original Agreement and
the 10 Amendments to it (with various dates occurring between 1974 and 2005), Counsel
identified some critical issues, primarily that the Agreement (i.e., the 1974 Agreement) and the
subsequent 10 Amendments constituted a Lease of County property; and
WHEREAS this Lease, which heretofore was referred to as a "Concession Agreement,"
was never approved by the Oakland County Board of Commissioners (Board) as it should have
been pursuant to MCL 46.11(d), currently MCL 46.11(c); and
WHEREAS Corporation Counsel and Parks and Recreation Commission staff attempted
to resolve the issues raised by Corporation Counsel; ultimately the Commission staff withdrew
its request for Counsel's review of the 1 1 th Amendment; and
WHEREAS in May. 2006, the County Executive advised the Oakland County Board of
Commissioners by way of a letter detailing the above-stated history, outlining the issues, and
offering recommendations for going forward; and
WHEREAS the interested parties recognize that for 32 years the business relationship
between Oak Management and the Oakland County Parks and Recreation Commission has
been mutually beneficial for all parties as well as for the citizens of Oakland County who have
availed themselves of Parks and Recreation facilities and the enhancements by which Oak
Management has refined them; and
WHEREAS Oak Management has expended more than $2.1 million to enhance County
facilities, including but not limited to, the following: building and leasehold improvements, as
well as furniture and fixtures at Addison Oaks, Glen Oaks. Lyon Oaks, and White Lake Oaks;
new furniture and fixtures at Groveland Oaks, Springfield Oaks, Red Oaks, Addison Oaks, and
Independence Oaks; and
WHEREAS the Board of Commissioners is mindful and appreciative of the long-standing
relationship between the parties and has determined to recognize the current agreement that
the Oakland County Parks and Recreation Commission has established with Oak Management;
and
WHEREAS the County Executive, the Board of Commissioners, the Parks and
Recreation Commission, and Oak Management are unified in a concerted desire to properly
designate the relationship between the parties with the appropriate legal documents, statutory
procedures, and County policies.
NOW THEREFORE BE IT RESOLVED that by this Resolution, upon the request of the
Parks and Recreation Commission. this Board of Commissioners hereby ratifies the business
relationship between Oak Management and Oakland County Parks and Recreation originally
entered into in April, 1974, as a Lease of County property.
BE IT FURTHER RESOLVED that by this Resolution, and upon the request of the Parks
and Recreation Commission, this Board of Commissioners hereby acknowledges the Lease
between the Parks and Recreation Commission and Oak Management through December 31,
2015.
BE IT FURTHER RESOLVED that no further extensions beyond December 31, 2015,
shall be made to this lease without an appropriate RFP procedure.
BE IT FURTHER RESOLVED that this Board hereby acknowledges and approves the
Lease as set forth in the attached documents.
BE IT FURTHER RESOLVED that the Board Chairperson, on behalf of the County of
Oakland, is authorized to execute said agreement.
BE IT FURTHER RESOLVED that this matter is referred to the Finance Committee
pursuant to Board Rule IX, Section E.
Chairperson, on behalf of the Planning and Building Committee, I move adoption of the
foregoing Resolution.
PLANNING AND BUILDING COMMITTEE
Planning & Building Committee Vote:
Motion carried unanimously on a roll call vote with Gershenson absent
LEASE AGREEMENT
BETWEEN
OAKLAND COUNTY, MICHIGAN
AND
E. A. FULLER OAK MANAGEMENT CORPORATION
This Lease Agreement entered into between the COUNTY OF OAKLAND
(hereinafter LESSOR), a Michigan Municipal and Constitutional Corporation, whose
address is 1200 N. Telegraph Rd, Pontiac, Michigan, 48341,on behalf of the
OAKLAND COUNTY PARKS & RECREATION COMMISSION (hereinafter PARKS),
a statutory agency of the County of Oakland, and E.A. Fuller Oak Management
Corporation (hereinafter LESSEE) as successor in interest to THE OAKS
CORPORATION formerly known as LAFFREY, WERTHMANN, FULLER
RESTAURANTS, INC., whose address is 1480 W. Romeo Road, Leonard, Michigan,
48367, is made in order to ratify a certain lease agreement (originally entitled
Concession Agreement) entered into between LAFFREY, WERTHMANN, FULLER
RESTAURANTS, INC. and PARKS on April 25, 1974 (as revised on June 20, 1979
and amended 10 times, the last amendment being dated April 4, 1999).
Now therefore, in consideration of the percentages of gross profits to be paid
to PARKS by LESSEE, and the covenants to be performed by the LESSEE and
PARKS, the LESSOR leases to LESSEE and the LESSEE rents from the LESSOR
the premises as enumerated in the April 25, 1974 Agreement (as amended) upon the
following terms and conditions:
1. PREVIOUS AGREEMENTS. The terms and conditions of the original
Agreement dated April 25, 1974 as revised on June 20, 1979, and the subsequent
ten amendments are incorporated herein by reference and adopted as part of this
Agreement (See Attachment 1).
2. INSURANCE. The Insurance provisions of the original Agreement dated April
25, 1974, as revised on June 20, 1979, (Section 3.7 as amended) will be superseded
by this paragraph and the following insurance requirements shall be met by LESSEE:
Indemnification
1. The Operator does hereby covenant and agree to indemnify, defend and save
harmless the County from all fines, suits, claims, demands and actions of any
kind and nature by reason of any and all of its negligence in conducting
operations and does hereby agree to assume all risks in the operation of its
business hereunder and shall be solely responsible and answerable in
damages for any and all accidents or injuries to persons or property caused by
the negligence of Operator, its employees and agents. The indemnification
rights contained in this Contract are in excess and over and above any valid
and collectible insurance rights/policies carried by the Operator.
2. Operator shall have no rights against the County for any indemnification (e.g.,
contractual, equitable, or by implication), contribution, subrogation, and/or any
other right to be reimbursed by the County except as expressly provided
herein.
3. Operator waives and releases all actions, liabilities, loss and damage including
any subrogated rights it may have against the County based upon any Claim
brought against the County including any Claim brought against the County by
an Employee of the Operator.
Operator Provided Casualty Insurance:
Operator shall, at its own expense, procure and maintain insurance coverage in
the minimum amounts and specifications indicated through the term of this
agreement.
a. Commercial General Liability — Occurrence Form Basis:
$3,000,000 - General Aggregate Limit other than Products/Completed
Operations
$3,000,000 — Products/Completed Operations Aggregate Limit
$3,000,000 — Personal & Advertising Injury Limit
$3,000,000 — Each Occurrence Limit
$1,000,000 - Fire Damage Limit (Any One Fire)
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The insurance policy shall contain the following coverage:
Products/Completed Operations Coverage — On and Off Premises
Coverage
Broad Form Property Damage
Premises/Operations
Libel and Slander
Independent Contractors
(Blanket) Broad form Contractual
Personal Injury - delete contractual exclusion "A"
b. Workers' Compensation: Coverage A, with limits statutorily required by
any applicable Federal or State law and Employers Liability Insurance,
and Coverage B, with minimum limit of $1,000,000 each accident,
disease each employee, and disease policy limit.
c. Automobile Liability: Insurance (including Michigan No-Fault) with
minimum limits of $1,000,000.00 Combined Single Limit Automobile
Liability per occurrence including hired and leased vehicles, and owned
and non-owned vehicles.
d. Liquor Liability (On and Off Premises): $1,000,000 per occurrence and
$2,000,000 aggregate.
General Provisions:
All Certificates of Insurance and policies of the Operator, any outside vendor, or
contractor shall be endorsed to provide the following clauses and/or
endorsements:
1. "The insurance company(s) issuing the policy or policies shall have no
recourse against the County of Oakland for payment of any premiums or for
assessments under any form of policy",
2. Any and all deductibles in the above-described insurance policies shall be
assumed by and be or the amount of, and at sole risk of, the Operator.
3. All Certificates are to provide sixty (60) day written notice of material change,
cancellation, or non-renewal. Certificates of Insurance and insurance binders
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must be provided no less than ten (10) working days before commencement of
work to the Oakland County Purchasing Division,
4. All insurance policies shall be endorsed to name "The County of Oakland,
County Agents (as defined in this Contract), employees, volunteers and
elected and appointed officials of Oakland County as Additional Insured.
5. All insurance policies shall be issued by companies licensed or approved to do
business within the State of Michigan and carry a minimum A.M. Best rating of
A6.
6. All policies of insurance shall be on a primary, non-contributory basis with any
other insurance and/or self-insurance carried by the County.
3. PROPERTY DAMAGE. The following language will be deleted from the
original Agreement dated April 25, 1974, as revised on June 20, 1979, (Section 3.5
as amended):
The County and Operator agree that each forfeits any right of action that it
may later acquire against the other of the parties to the Agreement for loss or
damage to its property or to property in which it may have an interest, where
such loss is caused by fire or any of the extended coverage hazards and
arises out of or is connected with the use of the premises as provided in this
Agreement.
4. TERM of LEASE. The term of this lease is for the period set forth in
Paragraph A. of the Eighth Amendment dated July 6, 1994, and Paragraph A. of the
Tenth Amendment dated April 4, 1999, both as reproduced below:
Eighth Amendment:
A. Paragraph 1.3 of the concession Agreement is amended to include
the following paragraph:
"Providing Operator shall not be in default under the terms and conditions of
this Agreement, it shall have the right at its option to extend the term of this
Agreement for an additional five (5) year period, to commence on
January 1, 2004 and to expire December 31, 2008. The percentages of
the contract years under said extension are to be renegotiated for the five-
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year period of 2004-2008. The negotiations shall be completed within the
first ninety (90) days of the new five-year period or the Agreement becomes
null and void."
Tenth Amendment:
A. Paragraph 1.3 of the Concession Agreement is
amended to include the following paragraph:
"Providing Operator shall not be in default under the terms and
conditions of this Agreement, it shall have the right at its option to
extend the term of this Agreement for an additional seven (7) year
period, to commence on January 1, 2009 and to expire December 31,
2015: The percentages of the contract years under said extension
are to be renegotiated for the seven-year period of 2009-2015. The
negotiations shall be completed within the first ninety (90) days of the
new seven-year period or the Agreement becomes null and void."
5. LEASED PREMISES and RENT. The leased premises and the rent for the
leased premises is set forth in "Paragraph B." of the Tenth Amendment dated April 4,
1999, as reproduced below:
B. Paragraph 4.2 of the Concession Agreement is hereby
modified to substitute the following therefore in its entirety:
4.2 Payments by Operator
Operator, in consideration of this Agreement, hereby covenants
and agrees to pay to the County the following sums, to-wit:
White Lake Oaks
Operator shall pay rental of ten percent (10%) of total annual gross
sales and twenty-five percent (25%) of utility costs.
Addison Oaks Conference Center
Operator shall pay rental of eight percent (8%) of total annual gross
sales and twenty-five percent (25%) of utility costs.
Springfield Oaks Golf Clubhouse
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Operator shall pay as rental ten percent (10%) of the total annual
gross sales or one hundred percent (100%) of utility costs, whichever is
greater.
Springfield Oaks Activities Center
Operator shall pay as rental ten percent (10%) of the total annual
gross sales.
Addison Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total
annual gross sales.
Waterford Oaks Activity Center
Operator shall pay as rental ten percent (10%) of the total annual
gross sales.
Red Oaks Wave Pool Concession Stand
Operator shall pay as rental eleven percent (11%) of the total
annual gross sales and one hundred percent (100%) of utility costs.
Waterford Oaks Wave Pool Concession Stand
Operator shall pay as rental eleven percent (11%) of the total
annual gross sales and one hundred percent (100%) of the utility costs.
Groveland Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total
annual gross sales.
Independence Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total
annual gross sales,
Glen Oaks Golf Clubhouse
Operator shall pay as rental thirteen and one-half percent (13.5%)
of the total annual gross sales on the banquet facility, twelve percent
(12%) of the total annual gross sales on the grill room facility and fifty
percent (50%) of the utility costs.
Lyon Oaks Golf Clubhouse
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After completion of the clubhouse banquet facility, Operator shall
pay as rental three percent (3%) of the total annual gross sales up to
$500,000 and thirteen and one-half percent (13.5%) of total annual gross
sales over $500,000 on the banquet facility and grill room and twenty-five
percent (25%) of the utility costs through December 31, 2000; three
percent (3%) of the total annual gross sales up to $500,000 and thirteen
and one-half percent (13.5%) of total annual gross sales over $500,000 on
the banquet facility and grill room and twenty-five percent (25%) of the
utility costs through December 31, 2001; nine percent (9%) of the total
annual gross sales up to $500,000 and thirteen and one-half percent
(13.5%) of total annual gross sales over $500,000 on the banquet facility
and grill room and twenty-five percent (25%) of the utility costs through
December 31, 2002; twelve percent (12%) of the total annual gross sales
up to $500,000 and thirteen and one-half percent (13.5%) of total annual
gross sales over $500,000 on the banquet facility and grill room and
twenty-five percent (25%) of the utility costs through December 31, 2003.
The term gross sales shall include the gross amount of all sales of
every kind and description made in, upon or resulting from the conduct
of the business of Operator upon the various recreational facilities
covered by this Agreement, but after deduction there from refunds
made in the normal course of business and amounts paid for sales tax.
Net proceeds from vending machines shall be included in gross sales.
All percentage payments provided hereunder shall be payable
quarterly, not later than the thirtieth (30th) day following the end of the
first three (3) months of operation and the end of each three (3) month
period thereafter, and shall be based upon reports furnished by Operator
to the County with such payments. Operator shall furnish to the County
within sixty (60) days after the closing of each calendar year a report
certified to by an officer of Operator, showing Operator's gross receipts
during the preceding calendar year, the amount of any accumulated prior
deficiency in percentage payments, and the net percentage payment, if
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any, owing hereunder for such period, provided that, if at the end of any
quarter it be determined that Operator has paid for said year to date a
greater sum than would have been payable under the provisions hereof
for such excess payment.
6. RENT FOR LYON OAKS AFTER DECEMBER 31, 2003. The rent for Lyon
Oaks through December 31, 2008 will be twelve percent (12%) of the total annual gross
sales up to $500,000 and thirteen and one-half percent (13.5%) of total annual gross
sales over $500,000 and twenty-five percent (25%) of the utility costs.
7. ENTIRE AGREEMENT. This Lease Agreement and the terms and conditions of
the original Agreement dated April 25, 1974 as revised on June 20, 1979, and the
subsequent ten amendments incorporated herein by reference and adopted as part
of this Agreement (See Attachment 1) constitute and represent the entire agreement
and understanding between the parties, including Parks, and supersedes any and all
other prior oral or written understandings, communications, agreements or Contracts
between the Parties, including Parks, not incorporated by reference as part of this
Lease Agreement. The language of this Contract shall be construed as a whole
according to its fair meaning, and not construed strictly for or against any Party.
8. AUTHORITY TO SIGN. The individual(s) signing this Lease Agreement on
behalf of LESSEE certifies that he or she has authority to enter into this LEASE
Agreement as evidenced by LESSEE'S attached Corporate Resolution dated
(Attachment 2).
IN WITNESS WHEREOF, the parties have executed this Lease Agreement as of this
day of 2006, and by such execution have ratified the previous Agreements and
Amendments between PARKS and LESSEE as contained in Attachment 1.
WITNESSED BY: LESSOR:
County of Oakland a Michigan Municipal and
Constitutional Corporation
By: Bill Bullard, Jr., Chairperson
Oakland County Board of Commissioners
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LESSEE:
E.A. Fuller Oak Management Corporation
By: Edward A. Fuller
President and Secretary
By: Janet Lekas
Vice President
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ATTACHMENT I
CONCESSION AGREEMENT
THIS CONCESSION AGREEMENT, made and entered into on the
27,X7 day of April, 1974, by and between the COUNTY OF OAKLAND,
a Michigan Constitutional Corporation, hereinafter referred to as
1 the "County" and LAFFREY, WERTHMANN, FULLER RESTAURANTS, INC., a
Michigan Corporation, Oakland County, Michigan, hereinafter referred
to as "Operator",
WITNESSETH:
The following is a recitation of facts underlying this Agree-
ment:
A. The County owns and operates seven (7) recreational facil-
ities referred to in this Agreement for purposes of convenience as
follows:
WHITE LAKE-OAKS GOLF CLUB HOUSE,
ADDISON-OAKS CONFERENCE CENTER,
ADDISON-OAKS CONCESSION STAND,
SPRINGFIELD-OAKS GOLF CLUB .HOUSE,
SPRINGFIELD-OAKS YOUTH ACTIVITIES CENTER,
WATERFORD-OAKS ACTIVITIES CENTER,
GROVELAND-OAKS CONCESSION STAND.
B. All of the foregoing recreational facilities have various
food and beverage facilities designed to provide food and beverage
services for the general public, patrons of the facilities and/or
in certain instances, catering facilities.
C. Operator represents itself to be capable of furnishing
food and beverage of high quality and is desirous of obtaining ex-
clusive rights to furnish food and beverage services at the aforesaid
facilities.
County is agreeable to granting to Operator exclusive
rights to engage in the food and beverage business for profit at
the recreational facilities referred to in this Agreement.
E. The parties have reached an understanding and are desir-
ous of reducing to writing their agreement.
.THEREFORE, in consideration of the mutual covenants herein
contained, the County does hereby agree and let unto Operator and
Operator does hereby hire and take from the County certain premises,
facilities, rights, services and privileges in connection with the
following County owned and operated recreational facilities, to-Wit:
WHITE LAKE-OAKS GOLF CLUB HOUSE,
ADDISON-OAKS CONFERENCE CENTER,
ADDISON-OAKS CONCESSION STAND,
SPRINGFIELD-OAKS GOLF CLUB HOUSE,
SPRINGFIELD-OAKS YOUTH ACTIVITIES CENTER,
WATERFORD-OAKS ACTIVITIES CENTER,
GROVELAND-OAKS CONCESSION STAND,
as hereinafter provided.
PROVISIONS CONCERNING THE NATURE AND OPERATION OF THE CONCESSION
1.1 General Description of the Concession
Operator shall have the exclusive right in all facilities
subject to this Agreement to operate restaurant facilities servic-
ing food and beverage, including alcoholic beverages and otherwise
engaging in the food and restaurant business, including catering
and sale of miscellaneous novelty items incident to the concession
herein granted.
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1.2 Area of Concession
Attached hereto in a Rider labeled "Exhibit A", Is a descrip-
tion of each recreational facility subject to this Agreement,
together with a particular description of the areas of such facility
let to Operator in connection with this Agreement.
1.3 Term..
Operator shall have full authority to use said premises and
facilities and to exercise the rights, licenses and privileges set
forth herein for a term commencing on the day of
1974 and terminating on the 31st day of December, 1978. Providing
Operator shall not be in default under the terms and conditions of
this Agreement it shall have the right at its option to extend the
term of this Agreement for an additional five (5) year period on
the same terms and conditions as are contained herein.
OBLIGATIONS OF OPERATOR
2.1 Quality
Operator shall serve and dispense quality foods and beverages
with adequate portions.
It shall furnish good, prompt and efficient service adequate
to meet all the demands for its service at the facilities subject
to this Agreement.
Operator shall, at all times, comply with the Federal Pure
Food and Drug Laws and other applicable laws and regulations of the
United States, the State of Michigan, County of Oakland and the
municipalities wherein the facilities are located, and all applic-
able health rules and regulations.
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• Operator shall furnish said service on a fair, equal and
nondiscriminatory basis to all users thereof. Operator will not
on the grounds of race, sex, religion, or national origin discrimin-
ate or permit discrimination against any person or group of persons.
The selection of food and beverages offered for sale, and its .
quality and portion schedules will be subject to the reasonable
approval by the County prior to the beginning of operations, and
at any time thereafter.
2.2 Prices
Foods and beverages offered for sale by Operator shall be
sold at prices comparable to those maintained at other high quality
restaurants in the Oakland County Area.
Operator shall charge fair, reasonable and nondiscriminatory
prices for each unit of sale or service, provided that Operator may
be allowed to make reasonable and nondiscriminatory discounts, re-
bates, and other similar types of price reduction to volume purchasers.
2.3 Service and Hours of Operation
Operator's service shall be prompt, clean, courteous,
efficient and sufficient in quantity. Operator shall at all times
provide personnel sufficient to operate the facilities on a standard
equal to that maintained by comparable restaurant operations at
comparable locations.
The specific hours of operation at each facility are des-
ignated on the Rider attached hereto and labeled "Exhibit A". •
2.4 Supervisor
Operator shall at all times provide an active, qualified
and competent supervisor at each facility who shall be authorized to
represent and act for Operator in matters pertaining to the day to
day operation of the facility.
2.5 Employees of Operator
All employees of Operator shall be clean, courteous, efficient
and neat in appearance. Operator shall not employe any person or
persons in or about any facility who shall use improper language •
or act in a loud or boisterous or otherwise . improper manner.
Upon written notification by the County to Operator that a
person employed by Operator is, in the County's opinion, disorderly,
unsanitary, or otherwise unsatisfactory, Operator shall, immediately,
remedy the situation to the County's reasonable satisfaction, and
failing that, the employee shall be removed from service at any of
the facilities and shall not again be trained or employed by
Operator at any facility without consent of the County.
2.6 Inspection
Operator shall allow the County's authorized representatives
access to the premises to be occupied by Operator under the terms
of this Agreement at all reasonable hours, for the purpose of
examining and inspecting said premises, for purposes necessary,
incidental to or connected with the performance of its obligations
hereunder, or in the exercise of its governmental functions.
Operator agrees that the County's Director of Parks and
Recreation, or his authorized agent, is authorized, at any time,
to inspect Operator's operation for cleanliness, condition of equip-
ment, quantity and quality of food, services and hours of operation.
If not satisfactory, the Director of Parks and Recreation shall
notify Operator, in writing, to correct any unsatisfactory conditions.
Such written notice shall contain specific particulars so as to
adequately advise Operator of the conditions deemed unsatisfactory
and the reasons and grounds for such conclusion. Operator shall
take immediate steps to correct any such unsatisfactory condition.
If Operator is of the opinion that the action of the County's
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Director of Parks and Recreation provided for herein is unwarranted,
unreasonable or based upon erroneous facts or information Operator
shall call the same to the attention of the Director and thereafter
the parties shall use best efforts to resolve any dispute to their
mutual satisfaction.
• 2.7 Access to Premises
It is understood that generally Operator will occupy certain
designated portions of the various facilities and the use in common
with others of all access roads and common areas, including the
parking lots. Should a question or dispute arise concerning the
use of common areas the parties shall utilize their best efforts
to resolve such dispute in such a fashion so as to carry out the
intent and purposes of the Agreement while minimizing the incon-
venience to others entitled to use of such common areas.
2.8 Sale of Liquor
The parties understand and agree that the County presently
has a Class C Liquor License issued by the State of Michigan per-
mitting the sale of alcoholic beverages at White Lake-Oaks. The
parties shall immediately make application to the Michigan Liquor
Control Commission, to include Operator as an additional licensee
on the existing Glass C Liquor License.
In the event the Michigan Liquor Control Commission refuses
to add Operator as an additional licensee on said Class C Liquor
License, the parties shall enter into a management contract
acceptable to the Liquor Control Commission to the end that
Operator may engage lawfully in the sale of liquor.
It is agreed between the parties hereto that Operator shall
acquire no right, title or interest in or to the said Class C
Liquor License.
It is further agreed by Operator that upon termination of
the Agreement for any reason, Operator, its successors and assigns,
shall reassign to the County, its interest in the Class C Liquor
License, or to such party or parties as the County shall designate.
It is further agreed by Operator that additional licenses
to dispense liquor on the subject Oakland County properties shall
operate in the same manner and on the same terms as the White
Lake-Oaks Golf Club House Class C.Liquor License.
DUTIES AND RESPONSIBILITIES OF THE PARTIES CONCERNING THE PREMISES
3.1 Decoration and Redecoration
Operator agrees that it will adopt and use decorating schemes
and motifs in harmony with the design and architectural treatment
of the various facilities and will submit any proposed changes
therein, to the Director of Parks and Recreation for approval
prior to installation. Operator shall at its sole expense do any
and all interior redecorating of those portions of the premises
referred to in the Rider hereto and described as being under the
exclusive custody and control of Operator. Such redecoration shall
be undertaken in a manner approved by the County acting through
the Director of Parks and Recreation, or his authorized agent.
3.2 Maintenance of Equipment
Operator shall have the right to install or cause to be
installed appropriate signs in and about the various facilities
advertising their operations, provided that such signs shall be
in good taste and shall not materially detract from the aesthetics
of the premises. All cost of such installation shall be borne
by Operator. Operator shall have the right to incorporate as part
of its advertising logo, the logo of Oakland County Parks and
Recreation Commission (Oak Tree). County shall have the right to
review of advertising materials and to reasonable rejection com-
mensurate with this paragraph.
3.3 Maintenance of Equipment
Operator agrees, at all times, to maintain and keep in good
operating condition, at Operator's sole expense, all equipment
furnished by the County. The County has represented that all
restaurant equipment is in good operating order as of the date
hereof. Any new equipment installed by Operator shall be done
at Operator's sole cost and expense and shall be installed pursu-
ant to all applicable building codes and health rules and regula-
tions. All such additional equipment installed by Operator shall
be of high quality, safe, modern in design and shall harmonize with
the equipment furnished by the County to the extent that the same
may be possible. Operator shall supply the Director of Parks and
Recreation with a list of all equipment installed by it in the
various facilities, which lists shall describe such equipment with
particularity. All property of every sort which may be installed
by Operator as a replacement for property initially furnished by
the County shall be and remain the property of the County, after
its installation. All other property and trade fixtures shall
remain the property of Operator with exception of those trade fix-
tures which are installed in the premises in such fashion so as
not to be readily removable without substantially damaging the
premises.
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3.4 Trash and Garbage
Operator shall provide at its sole expense, suitable pro-
cedures for the adequate sanitary handling and disposal of all
trash, garbage and other refuse caused as a result of the operation
of its business. Whenever possible, both the Operator and the
County.shall coordinate their trash and rubbish disposal procedures
so as to accomplish these functions in mutual advantageous way.
3.5 Damages to premises
Operator shall be responsible for damage to the premises,
including the breakage of glass, caused by the negligent acts of
its agents, employees, patrons, or other persons under its direc-
tion and control.
If the premises occupied by Operator are partially damaged
by fire, explosion, the elements, the public enemy, or other
casualty, but not rendered untenantable, the same shall be repaired
with due diligence by the County at its own cost and expense. If
the damage shall be so extensive as to render such premises unten-
antable, but capable of being repaired in thirty (30) days, the
same shall be repaired with due diligence by the County at its
own cost and expense and the amounts payable herein shall be pro-
portionately paid up to the time of such damage and thereafter
cease until such time as the premises are fully restored. 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 County shall be under no obligation to repair and reconstruct
the premises, and amounts payable hereunder shall be proportionately
paid up to the time of such damage or destruction and shall hence-
forth cease until such time as the premises may be fully restored.
The County and Operator agree that each forfeits any right
of action that it may later acquire against the other of the
parties to the Agreement for loss or damage to its property or
to property in which it may have an interest, where such loss is
caused by fire or any of the extended coverage hazards and arises
out of or is connected with the use of the premises as provided
in this Agreement.
3.6 Fire and Extended Coverage Insurance
Operator shall procure and keep in force fire and extended
coverage insurance upon all improvements, business fixtures, equip-
ment, furniture and furnishings to the full insurable value thereof
and shall furnish the County with evidence that such coverage
has been procured and is being maintained in full force and effect.
Similar insurance coverage for the real property shall be furnished
by the County. Such insurance shall be provided by companies li-
censed to do business in the State of Michigan.
3.7 Indemnity
Operator does hereby covenant and agree to indemnify and
save harmless the County from all fines, suits, claims, demands
and actions of any kind and nature by reason of any and all of its
negligence in conducting operations and does hereby agree to
assume all risks in the operation of its business hereunder and
shall be solely responsible and answerable in damages for any and
all accidents or injuries to persons or property caused by the
negligence of Operator, its employees and agents.
Operator shall maintain, with insurance underwriters satis-
factory to and approved by the County, a standard form policy or
policies of insurance in such amounts as may from time to time
be approved by the County protecting both Operator and the County
against public liability, products liability, liquor liability
and property damage. Operator shall promptly, after the execution
of this Agreement, furnish such policy or policies for Personal
Injury growing out of any one occurrence in the sum of $250,000.00
per person and $500,000.00 growing out of any one casualty and
Property Damage of $250,000.00 per occurrence and $250,000.30
aggregate. Operator shall furnish a certificate from the insur-
ance carrier or carriers showing such insurance to be in full force
and effect during the term of this contract, or to deposit copies
of the policies which give this coverage, with the County. If
certificates are provided, a thirty (30) day notice of cancellation
shall be given.
3.8 Redelivery
Operator will make no unlawful or offensive use of said
premises and will at the expiration of the term hereof or upon
any earlier termination thereof, as hereinafter provided, quit
and deliver said premises to the County and those having their
estate in the premises, peaceably, quietly, and in as good order
and condition, reasonable use and wear thereof, fire and unavoid-
able cause excepted, as the same now are or may hereafter be placed
by Operator or the County.
PAYMENT TERMS
4.1 Costs Borne by Operator
Operator shall bear at its own expense all costs of operating
their business; including any and all taxes and assessments levied
January 1,1978 thru December 31, 1978 -- 6% of gross
;Acaea in excess of $134,000.00.
/ Additional 5-year option shall be at 6% of total !
( gross sates.
or assessed upon Operator's personal property located about the
various premises. Operator shall pay for and obtain all permits
and licenses required by authority of law in connection with the
operation of its business.
4.2 Payments by Operator
Operator, in consideration of this Agreement, hereby cov-
enants and agrees to pay to the County the following sums, to-wit:
White Lake-Oaks
A. .A minimum rental at the rate of $8,000.00 per annum
payable in equal monthly installments in advance of
the first day of each calendar month of the term here-
of without any set off or deduction whatsoever, with
the exception of the year 1974, during which year the
minimum rental shall be pro-rated and adjusted based
upon the number of months this Agreement is in effect.
B. In addition to such minimum rental Operator shall pay
to the County percentage rentals based upon the follow-
ing table:
Thru December 31, 1974 -- 4% of gross sales in excess
of $200,000.00;
January 1, 1975 thru December 31, 1975 -- 5% of gross
sales in excess of $160,000.00; .
January 1, 1976 thru December 31, 1976 -- 6% of gross
sales in excess of $134,000.00;
January 1, 1977 thru December 31, 1977 -- 6% of gross
sates in excess of $134,000.00;
- 12 -
C. In addition to the amounts provided for in Paragraph
A and B hereof Operator shall pay to County a sum of
money equal to 1% of its gross sales annually for
utilities.
Addison-Oaks Conference Center
A. A minimum rental at the rate of $6,000.00 per annum
payable in equal monthly installments in advance on
the first day of each calendar month of the term
hereof without any set off or deduction Whatsoever;
with the exception of the year 1974, during which
year the minimum rental shall be pro-rated and adjusted
based upon the number of months this Agreement is
in effect.
B. In addition to such minimum rental Operator shall pay
to the County percentage rentals based upon the follow-
ing table:
Thru December 31, 1974 -- 3% of gross sales in excess
of $200,000.00;
January 1, 1975 thru December 31, 1975 -- 4% of gross
sales in excess of $150,000.00;
January 2, 1976 thru December 31, 1976 -- 5% of gross
sales in excess of $120,000.00;
January 1, 2977 thru December 31, 1977 -- 5% of gross
sates in excess of $120,000.00;
January 1, 1978 thru December 31, 1978 -- 5% of gross
sales in excess of $120,000.00;
Additional 5-year option shall be at 5% of total
gross sales.
C. In addition to the amounts provided for in paragraphs
A thru B hereof, Operator shall pay to County a sum
of money equal to 2% of its gross sales annually for
Utilities.
- 13 -
Springfield-Oaks Golf Club House
A. During the entire term hereof rental shall be based
upon a percentage of Operator's gross sales annually
in accordance with the following schedule:
0 thru $50,000.00 -- $1.00;
$50,001.00 thru $100,000.00 -- $1.00 plus
2% of excess over $50,000.00;
$100,001.00 thru $150,000.00 -- $1,001.00
plus 3% of excess over $100,000.00;
$150,001.00 thru $200,000,00 -- $2,501.00
plus 4% of excess over $150,001.00;
$200,002,00 and up -- $4,501.00 plus 5%
of excess over $200,000.00;
Additional 5-year option shall be at 5% of
total gross sales.
Springfield-Oaks Youth Activities Center
A. During the entire term hereof rental shall be based
upon a percentage of Operator's gross sales annually
in accordance with the following schedule:
Thru December 31, 1974 -- 4% of gross sales;
January 1, 1975 thru December 31, 1975 --
4% of gross sales;
January 1, 1976 thru December 31, 1976 --
4% of gross sales;
January 1, 1977 thru December 31, 1973 --
5% of gross sales;
January 1, 1976 thru December 31, 1978 --
5% of gross sales;
Additional 5-year option shall be at 5%
of total gross sales.
Addison-Oaks Concession Stand
A. During the entire term hereof rental shall be based
upon a percentage of Operator's gross sales annually
in accordance with the following schedule:
Thru December 31, 1976 -- 6% of gross sales;
January 1, 1977 thru December 31, 1978 -- 8%
of gross sales;
Additional 5-year option shall be at 8% of
• total gross sales.
Waterford-Oaks Activities Center
A. During the entire term hereof rental shall be based
upon a percentage of Operator's gross sales anually
in accordance with the following schedule:
Thru December 32, 1974 -- 4% of gross sales;
January 1, 1975 thru December 31, 1975 -- 4%
of gross sales;
January 1, 1976 thru December 31, 1976 -- 4%
of gross sales;
January 1, 1977. thru December 31, 1977 -- 5%
of gross sales;
January 1, 1978 thru December 31, 1978 -- 5%
of gross sales;
Additional 5-year option shall be at of total
gross sales.
Groveland-Oaks Concession Stand
A. During the entire term hereof rental shall be based
upon a percentage of Operator's gross sales annually
in accordance with the following schedule:
Thru December 31, 1976 -- 6% of gross sales;
January 1, 1977 thru December 31, 1978 -- 8%
of gross sales;
Additional 5-year option shall be at 8% of total
gross saZes.
The term gross sales shall include the gross amount of all
sales of every kind and description made in , upon or resulting
from the conduct of the business of Operator upon the various
recreational facilities covered by this agreement, but after deduc-
tion therefrom refunds made in the normal course of business and
amounts paid for sales tax. Net proceeds from vending machines
shall be included in gross sales. All percentage payments provided
hereunder shall be payable quarterly not later than the thirtieth
(30th) day following the end of the first three (3) months of oper-
ation and the end of each three (3) month period thereafter, and
shall be based upon reports furnished by Operator to the County with
such payments. Operator shall furnish to the County within sixty
(60) days after the closing of each calendar year a report certified
to by an officer of Operator, showing Operator's Gross Receipts
during the preceding calendar year, the amount of any accumulated
prior deficiency in percentage payments and the net percentage
payment, if any, owing hereunder for such period, provided that, if
at the end of any quarter, it be determined that Operator has paid
for said year to date, a greater sum than would have been payable
under the provisions hereof for said portion of such year, Operator
shall have credit for such excess payment.
In the event the term hereof is extended thru the exercise
by the Operator of the option granted to it in paragraph 1.3 hereof,
payments shall be made during said extended period at the same level
as payments required during the calendar year 1978.
4.3 Audit of Books and Records
The County shall have the right at any time within ninety
(90) days thereafter to have the books and records of Operator audited
during reasonable hours. Any additional percentage payment found due
by such audit shall be paid to the County within thirty (30) days
and shall bear interest at the rate of seven (7%) percent per annum
from the date such payment was due until paid. Failure of the County
to exercise its option to audit the books of Operator within said
period shall be conclusive evidence as between the parties hereto
that the reports of gross sales supplied by Operator to the County
during the preceding calendar year are correct.
4.4 Utilities
County will supply all utilities to the various facilities
subject to this Agreement and will supply heat at an average temp-
erature of 72° during winter season and circulating fresh air when
heat is not required. In the event any of the facilities subject
to this Agreement are presently air conditioned, then and in that
event the County shall supply air conditioning at its cost and ex-
pense.
4.5 Financial Operation Summaries
Operator shall furnish summaries of Gross Sales to County
representative on a monthly basis.
4.6 Right of Review
County shall have the right of reasonable review of adver-
tising, hours of operation, and menus and prices with Operator.
ADDITIONAL TERMS OF AGREEMENT
5.1 Paragraph Headings
The paragraph headings contained herein are for convenience
in reference and are not intended to define or limit the scope of
any provision of this Agreement.
5.2 Invalid Provisions
In the event that any provision herein contained is held
to be invalid by any court of competent jurisdiction, the invalidity
of such provision shall not affect the remainder of the Agreement.
5.3 Assignment and SublettinK
Operator shall not assign, transfer, sublease, pledge,
hypothecate, surrender or otherwise encumber or dispose of any
interest arising under this Agreement or any estate created by this
Agreement, or any interest in any portion of the same, or permit
any other person or persons, company or corporation to occupy these
premises, without the written consent of the County being first
obtained, which consent shall not unreasonably be withheld.
, All the covenants, stipulations and agreements in this
Agreement shall extend to and bind the legal representatives,
successors and assigns of the respective parties hereto.
5.4 Default
It is agreed that if Operator shall neglect or fall to
pay any amounts promptly as specified in this Agreement and if there
is a failure to pay same for a period in excess of thirty (30) days,
then this Agreement shall be subject to cancellation and become
COUNTY OF OAKLAND, a Michigan
Constitutional Corporation, by
its Statutory Agent the Oakland
County Parks and Recreation
Commission
WITNESSES:
/f7
Its
1 9 -
void and the rights of Operator terminated hereunder at the option
of the County.
It is further agreed that should Operator be adjudicated a
bankrupt or insolvent according to law, the Agreement shall become
void.
5.5 Non-Waiver
Any waiver of any breach of covenants herein contained to
be kept and performed by Operator shall not be deemed'or considered
as a continuing waiver and shall not operate to bar or prevent the
County from declaring a forfeiture for any succeeding breach either
of the same condition or covenant or otherwise.
5.6 Notices
Notices to the County provided for in this Agreement shall
be sufficient if in writing and mailed, postage prepaid, addressed
to the Director of Parks and Recreation, 2800 Watkins Lake Road,
Pontiac, Michigan, or to such other address as may have been des-
ignated in writing from time to time and notices to Operator shall
be deemed sufficient if in writing and mailed, postage prepaid,
addressed to Laffrey, Werthmann, Fuller Restaurants, Inc., 4001
Haggerty Road, West Bloomfield, Michigan.
IN WITNESS WHEREOF, the parties hereto have hereunto set
their hands and seals the day and year first above written.
By:
By:
02‘ /77V Approved by Resolution o
2
2 /21
BY:
Its
LAFFREY, WERTHMANN, FULLER
RESTAURANTS, INC., a Michigan
Corporation
Its President
Edward Fuller
Its Secretary
EXHIBIT (SCHEDULE) "A"
DESCRIPTION OF PROPERTY
WHITE LAKE-OAKS GOLF CLUB HOUSE
Consists of dining room, bar and dininvarea, and
restroom facilities within the Club House located
at 991 Williams Lake Road, White Lake Township.
ADDISON-OAKS CONFERENCE CENTER
Consists of the entire structure located at 1480 West
Romeo Road, Addison Township, along with a concession'
stand located on the beach.
SPRINGFIELD-OAKS GOLF CLUB HOUSE
Consists of restaurant and restroom facilities located
at 12450 Andersonville Road, Springfield Township.
SPRINGFIELD-OAKS YOUTH ACTIVITIES CENTER
Consists of a structure located at 12451 AndersonvIlle
Road, Springfield Township.
" A " , page 1
WATERFORD-OAKS ACTIVITIES CENTER
Consists of one large building located at 2800
Watkins Lake Road, Waterford Township.
GROVELAND-OAKS CONCESSION STAND
Consists of a wooden structure located on the beach
and situated in Groveland Township.
* * * * *
HOURS OF OPERATION
Al]. services and facilities shall remain open
for business at least during those hours comparable
facilities operate at comparable locations. Breakfast
service shall be maintained at those facilities oper-
ating golf courses during those months in which the
golf facility is in operation.
" A " , page 2
JOHN W. noppERT. mm, AsA
PAUL FL STOPPERT, MAI, ASA
JOHN D STOPPERT, ASA
ARTHUR C. SALLEY
5PO4 SOUTH MAIN STREET
CLARKSTON, MICHIGAN 41166
PHONE c313) us-3ago
REAL ESTATE APPRAISAL SERVICE
TO: Oakland County Parks & Recreation Commission
FROM: John W. Stoppert, MAI, ASA - Consultant
RE: Proposed leasing of Oakland County Parks and
Recreation Commission.Food & Beverage Concessions.
A special meeting was held between John Laffrey and my-
self at the main office of the Oakland. County Parks and Rec-
reation Commission on March 4, 1974, at which time the pro-
posed leases of the food and beverages concessions was discussed.
After a lengthy negotiation period, a revised proposal was
made-by,,Mr. Laffrey, as follows: •
• • White Lake Oaks-:
1974 - 4% of Gross.Sales rental + 1% to utilities.
1975 - 5% of Gross Sales rental + 1% to utilities.
1976 - 6% Of Gross Sales rental + 1% to utilities.
1977 - 6% of Gross Sales rental:4-J% to utilities.
1978 - 6% of Gross Sales rental + 1% to utilities.
Plus additional 5 year option @ 6% + 1%.
• Addison Oaks
1974 - 3% of Gross Sales rental + 2% to utilities.
1975 - 4% of Gross Sales rental + 2% to utilities.
1976 - 5% of Gross Sales rental +2% to Utilities.
1977 - 5% of Gross Sales rental +2% to utilities.
1978 - 5% of Gross Sales rental + 2% to Utilities.
Plus additional 5 years option at 5% + 2%.
" A " page 3
g/i/w2eJ 40/i<a6ai ,..7e/xvice
Continued
Springfield Oaks
1974-1978 Inclusive
0 - $50,0
$50,001.
$100,001.
$150,001.
$200,000.
00. Gross Sales
- $100,000. Gross Sales
- $150,000. Gross Sales
- $200,000. Gross Sales
and up
$1.00 .
2% of Gross
3% of Gross
4% of Gross
5% of Gross
Additional 5 year option @ 5% of Gross Sales.
Springfield Oaks Y.A.C.
1974-1976 Inclusive
1977-1978
Additional 5 year option @ 5% of Gross Sales.
Waterford Oaks
1974-1976 Inclusive
1977-1978
Additional 5 year option @ 5% of Gross Sales..
Other proposals include:
'Mr. Laffrey agreed to establish a $20,000. annual budget
for advertising.
Maintain leased equipment and replace as. necessary at
lessee expense. • •
Maintain and repair interior of leased premises..
Furnish owner with liability and property damage.fer
leased area.
Oakland County Parks and Recreation Commission to insure
• • real estate for fire and extended coverage.
Owner to maintain and repair exterior of building.
John W. Stoppert
" A " , page 4
4% of Gross Sales
' 5% of Gross Sales
4% of Gross Sales
5% of Gross Sales
Consultant Consultant
BY:
It .1.-f-en;-&-t.".
BY:
Its:
AMENDMENT TO CONCESSION AGREEMENT
THIS AMENDMENT is attached to and made a part of a certain
Concession Agreement dated April 25, 1974 by and between the COUNTY OF
OAKLAND and LAFFREY, WERTHMANN, FULLER RESTAURANTS, INC.
WITNESSETH:
1. The parties recognize and acknowledge that the County
presently holds a Class C license issued by the Michigan Liquor Control
Commission, which license is referred to in paragraph 2.8 of the
aforementioned Concession Agreement. Unless and until the Michigan
Liquor Control Commission adds as a co-licensee on said license LAFFREY,
WERTHMANN, FULLER RESTAURANTS, INC., all sales of liquor shall
be made by the County and operator shall not participate in the proceeds
therefrom.
IN WITNESS WHEREOF the parties have executed this agreement
as of April 25, 1974.
COUNTY OF OAKLAND, a Michigan
Constitutional Corporation, by its
Statutory Age.-qt, the 03.1rAaninty
Parks andreatialf-Com&j.2-gion
BY: .
Its:
BY:
Its:
LAFFREY, WERTHMANN, FULLER
RESTAURANTS, INC., a Michigan
Corporation
SECOND AMENDMENT TO CONCESSION AGREEMENT
THIS SECOND AMENDMENT is attached to and made a part of a
certain Concession Agreement dated April 25, 1974, by and between
the COUNTY OF OAKLAND and LAFFREY, WERTHMANN, FULLER RESTAURANTS,
INC.
WITNESSETH:
1. Paragraph 2.8 of the Concession Agreement is hereby
modified to substitute the following therefor in its entirety; •
•
2,8 Sale of Liquor
The parties understand and agree that the
County presently has a Class C liquor license issued
by the State of Michigan permitting the sale of
alcoholic beverages at White Lake-Oaks. The parties
shall immediately make application to the Michigan
Liquor Control Commission to include Operator as an
additional licensee on the existing Class C liquor
license.
In the event the Michigan Liquor Control
Commission refuses to add Operator as an additional
licensee on said Class C liquor license, the parties
shall enter into a management contract acceptable
to the Liquor Control Commission to the end that
Operator may engage lawfully in the sale of liquor.
It is further agreed by Operator that upon
termination of the agreement for any reason,
Operator, its successors and assigns, shall reassign
to the County, its interest in the Class C liquor
license, or to such party or parties as the County
shall designate, subject however to the consent and
approval of the Michigan Liquor Control Commission.
It is further agreed by Operator that additional
licenses to dispense liquor on the subject Oakland
County properties shall operate in The same manner
and on the same terms as the White Lake-Oaks Golf
Club House Class C liquor license.
- 1 -
COUNTY OF OAKLAND, a Michigan
Constitutional Corpora ';on, by
qZi
its Statutory Agent, Oakland
County Poefb an 0 Re ton
Commiss
BY:
It s:
BY:
2. Except as herein modified, the Concession Agreement
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have executed this
Agreement as of April 25, 1974.
Its
LAFFREY, WERTEMANN, FULLER
RESTAURANTS,. INC., a Michigan
Corporation
, • '!
BY: C7:17n4.---A—_,0,.;
:11sA.03 Its :
°P'ij /7/7,77
- 2 -
THIRD AMENDMENT TO CONCESSION AGREEMENT
THIS THIRD AMENDMENT is attached to and made a part of
a certain Concession Agreement dated April 25, 1974, by and between
the COUNTY OF OAKLAND and LAFFREY, WERTHMANN, FULLER RESTAURANTS,
INC.
WITNESSETH:
1. The parties recognize and acknowledge that two new
concession facilities, Independence-Oaks Concession Stand and
Waterford-Oaks Wave Pool Concession Stand, have been constructed
since the inception of the aforementioned Concession Agreement and
the following shall apply to these two new facilities:
Independence-Oaks Concession Stand
A. During the entire term hereof rental shall be based
upon a percentage of Operator's gross sales annually
in accordance with the following schedule:
1976 - 1977 67 of Gross Sales
1978 - 1983 87 of Gross Sales
Waterford-Oaks Wave Pool Concession Stand
A. During the entire term hereof rental shall be based
upon a percentage of Operator's gross sales annually
in accordance with the following schedule:
1976 - 1977 8% of Gross Sales
1978 - 1983 10% of Gross Sales
2. The Oakland County Parks and Recreation Commission
agrees to a five-year extension of this Concession Agreement which
goes from 1984 to 1988, inclusive, with the percentages to be
negotiated after the first five years which end in 1978.
3. If a Liquor License is approved by the Liquor Control
Commission for the Springfield-Oaks Clubhouse, the County would be
the co-licensee and the license is to remain in the County's
ownership if LAFFREY & FULLER RESTAURANTS, INC. terminate their
agreement with the County.
- -
COUNTY OF OAKLAND, a Michigan
ConstitJtional Corporation, by its
Stas.xltAgent, tl- Oakland County
Patka-WRec eae.n, ommission
/
MEN
Its: -111111' . .
BY:
IN WITNESS WHEREOF the parties have executed this
agreement as of July 23, 1976.
WITNESSES:
INC., a LAFFREY, FULLER RESTAURANTS,
Michirn Corpora
Z
,
BY: ,
Its:
BY:.
Its:
IZeo • BY:
Its: r
THIRD AMENDMENT TO CONCESSION AGREEMENT
THIS THIRD AMENDMENT is attached to and made a part of a certain
Concession Agreernent dated April 25, 1974, by and between the COUNTY OF
OAKLAND and LAFFREY, WERTHMANN, FULLER RESTAURANTS, INC.
WITNESSETH:
1. Operator agrees to purchase from the County stock and supplies
located at White Lake Oaks. However, the same is not to exceed the sum of
Two Thousand ($2,000.00) Dollars.
IN WITNESS WHEREOF, the parties have executed this Agreement as
of April 25, 1974.
COUNTY OF OAKLAND, a Michigan
Constitutional Corporation, by
its Statutory Agent, the Oakland
County Parks and Recreation
WITNESSES: Commission
BY:,
Its:
LAFFREY, WERTHMANN, FULLER
RESTAURANTS, INC., a Michigan
Corporation
BY L
Its:
BY:
Its: ectez, Its:
FOURTH AMENDMENT TO CONCESSION AGREEMENT
THIS FOURTH AMENDMENT is attached to and made a part of a certain
Concession Agreement dated April 25, 1974, by and between the COUNTY OF
OAKLAND and THE OAKS CORPORATION, formerly known as Laffrey, Werthmann,
Fuller Restaurants, Inc.
WITNESSETH:
I. The parties recognize and acknowledge that the following rules
shall apply in the event that a Class C Resort Liquor License is issued for
the Springfield-Oaks Golf Course C;ubhouse:
A. Alcoholic beverages will only be sold during the golf
season and at privately scheduled functions.
B. Alcoholic beverages will be sold during the golf season only
between the hours of 12:00 p.m. to 10:00 p.m. and the Club-
house will close no later than 11:00 p.m. except for
privately scheduled functions.
C. No signs will be posted or advertising done which will indicate
that liquor is available at the Clubhouse.
D. No alcoholic beverages will be allowed anywhere except the
upper level of the Clubhouse.
E. The S.D.M. and the dance permit portions of this Resort
License will be cancalled. This portion of the license will
not be issued and therefore no carry-out sales or dancing
will be allowed.
F. In the event the Agreement between THE OAKS CORPORATION and
the OAKLAND COUNTY PARKS AND RECREATION COMMISSION is
. cancelled or not renewed, license shall revert to the
OAKLAND COUNTY PARKS AND RECREATION COMMISSION for use only
by concessionaires, controlled and approved by the OAKLAND
COUNTY PARKS AND RECREATION COMMISSION and Liquor Control
Commission.
G. All alcoholic beverages will be dispensed from a service bar
located in the kitchen or some other private room. No sit-
down bar will be installed.
COUNTY OF OAKLAND, a Michigan
Constitutional Corporation, by its
Statutory Agent, the Oakland County
Parks and Recreation Commissi
BY:/
Its: Chairman
BY
its: Manager
BY
Its: President
DAYS CORPO'!TIIA
/
. .7"
At. 1 /
orge L: as
Its Secretary
BY:
and THE OAKS CORPORATION.
My commission expires:
ar 7 g Charles L. Ross '
CHARLES L OSS, Ja.
Public, Oakland Couniy,
ift Commission Ispkm April
Middq.1 Notary Public Oakland County, Michigan
y Pal Business
Address 2800 Watkins Lk.Rd.,Pontiac, MI
IN WITNESS WHEREOF the parties have executed this Amendment to
the Agreement as of March 10, 1978.
STATE OF MICHIGAN )
)ss.
COUNTY OF Oakland )
The foregoing instrument was acknowledged before me this /02 day of
March • 1978, by the OAKLAND COUNTY PARKS AND RECREATION COMMISSION
ADDENDUM
COUNTY OF OAKLAND, through its PARKS AND RECREATION
COMMISSION and E. A. FULLER OAKS CORPORATION, the parties to
the contract, by this Addendum set forth their joint inter-
pretation of their CONCESSION AGREEMENT dated the 20th day of
June, 1979, to-wit:
White Lake Oaks, Page 11, Paragraph B, shall read as
follows:
B. In addition to such minimum rental Operator
shall pay to the County percentage rentals
based upon the following table:
Thhu Decemben 31, 1974 -- 4% o4 ghou eau in
exceu 04 $200,000.00;
Janucay I, 1975 thnu Decemben. 31, 1975 -- 5% oi
g4044 accee4 in exceu olf $160,000.00;
Januaty I, 1976 thnu Decemben 31, 1976 -- 6% oi
gito.se '4ate4 in exaeu o4 $134,000.00;
Januahy 1, 1977 thhu Decembeh 31, 1977 -- 6% oi ooze zate4 in exceuo $134,000.00;
Januany I, 1978 timu Decembm 31, 1978 -- 61 126
940.64 dated in exceu oi $134,000.00;
Additionat 5-yeah option, Janumy 1, 1979 thhu
Vecembeh 31, 1983 -- 6%.o6 ghou 4ate4 in exce44
124 $/34,000.00.
Addison Oaks Conference Center, Page 12, Paragraph B, shall read
as follows:
B. In addition to such minimum rental Operator shall pay
to the County percentage rentals based upon the
following table:
Thu( Decemben 31, 1974 -- 3% oi ghou eated in
exceu ci4 $200 0 000.00;
Janumy 1, 1975 thhu Decembeh 31, 1975 -- 4% olS
gito46 eau in excez.,s 194 $150,000.00;
Janumy I, 1976 tlau Decembeh 31, 1976 -- 5% Oi
94044 zatea in exceu o4 $120,000.00;
Januany 1, 1977 thhu Decembeh 31, 1977 -- 5% o4
94044 adte4 in EXCe..64 06 $120,000.00:
COUNTY OF OAKLAND, a Michigan
Constitutional Corporation, by its
Statutory Agent, the Oakland County
Parks and Recieation Commiss
BY:
Its: President
BY:
Its: Secretary
BY:
Edward A. Puller
Charles L. Rosa
Januwey 1, 1978 thnu Decemben 31, 1978 -- 5% o6
9/044 &au exce.84 o6 $120,000.00;
Addtionat 5-yeaA option, Januany 1, 1979 tit/La
Decembe4 31, 1983 -- 5% o6 gto44 aol.e.a in exce44
oi $120,000.00.
IN WITNESS WHEREOF the parties have executed this Amendment
to the Agreement as of April 2, 1980.
WITNESSES:
'_. AO • nA-etz,... • # 4
. X•c\: C _c7e•
Its: Chairman
By: bi• 6.44417644
Its: Secretary
THE OAKS CORPORATION
STATE OF MICHIGAN )
)ss.
COUNTY OF Oakland )
The foregoing instrument was acknowledged before me this 2nd day of
April , 1980, by the OAKLAND COUNTY PARKS AND RECREATION COMMISSION
and THE OAKS CORPORATION,
My commission expires:
CHAIM I 5055, hi.
Notary Publ.; Onkinnd County, Michi •
---*--"M"°k42431,41.—AP41-43-44
Notary Public Oakland County,
Michigan
Business
Address 2800 Watkins Lk, Rd„ Pontiac,
M/
FIFTH AMENDMENT TO CONCESSION AGREEMENT
6. r
THIS FIFTH AMENDMENT is attached to and made a part of a certain
Concession Agreement dated April 25, 1974, by and between the COUNTY OF
OAKLAND and LAFFREY, WERTHMANN, FULLER RESTAURANTS, INC., now known as THE
OAKS RESTAURANTS, INC.
. WITNESSETN:'
1. The parties recognize and ackhowledge that the OAKLAND COUNTY
PARKS AND RECREATION COMMISSION has purchased the Glen Oaks Golf Course
since the inception of the aforementioned Concession Agreement and the
following shall apply to this new facility:
A. During the entire term hereof rental shall be based upon a
percentage of the Operator's gross sales annually in
accordance with the following schedule:
1978 - 1983 10Z of Gross Sales
2. • The OAKLAND COUNTY PARKS AND RECREATION COMMISSION agrees to
a five-year extension of this Agreement which goes from 1984 to 1988,
inclusive, with the percentages to be negotiated after the first five.years
which end in 1983.
3. If a Liquor License is approved by the Liquor Control Commission
for the Glen Oaks Clubhouse, the County would be co-licensee and the license
is to remain in the County's ownership if THE OAKS RESTAURANTS, INC., .
terminate their Agreement with the County.
4. In addition to the amounts provided for:
A. Operator shall pay to the County a sum of money equal to one-
half of the utilities that are expended for the purpose of
operating the building that houses the banquet facility, pro
shop and clubhouse, along with other common areas within the
main building.
5. Concessionaire also agrees to provide the day-to-day mainten-
ance of the interior of the building which would include the
locker rooms, grill room, banquet area, bathrooms and other
common areas throughout the building. • . • I
6. The PARKS Ak.. RECREATION COMMISSION will br. j up-to-code the
building, as well as the equipment for the proper implementation of the
facility immediately upon the closing. The Commission staff will work with
the Concessionaire in meeting these requirements. Once the requirements
have been met, then it will be the responsibility of the Concessionaire to
keep the interior of the building to the standards of the Commission as
referred to in other parts of this Agreement.
CONCESSION AGREEMENT
THIS CONCESSION AGREEMENT, made and entered into on the
25th day of April, 1974, and revised on the 20th day of
, 1979, by and between the COUNTY OF OAKLAND, a
Michigan Constitutional Corporation, hereinafter referred to as
the "County" and E. A. FULLER OAKS CORPORATION, a Michigan Cor-
poration, Oakland County, Michigan, formerly known as Laffrey,
Werthmann, Fuller Restaurants, Inc., hereinafter referred to as
"Operator".
WITNESSETH:
The following is a recitation of facts underlying this Agree-
ment:
A. The County owns and operates ten (10) recreational ;.
facilities referred to in this Agreement for purposes of conven-
ience as follows:
WHITE LAKE-OAKS GOLF CLUBHOUSE,
ADDISON-OAKS CONFERENCE CENTER,
ADDISON-OAKS CONCESSION STAND,
SPRINGFIELD-OAKS GOLF CLUBHOUSE,
SPRINGFIELD-OAKS YOUTH ACTIVITIES CENTER,
INDEPENDENCE-OAKS CONCESSION STAND,
WATERFORD-OAKS WAVE POOL CONCESSION STAND,
WATERFORD-OAKS ACTIVITIES CENTER,
GROVELAND-OAKS CONCESSION STAND
GLEN OAKS GOLF CLUBHOUSE
B. All of the foregoing recreational facilities have various
food and beverage facilities designed to provide food and beverage
services for the general public, patrons of the facilities and/or
in certain instances, catering facilities.
C. Operator represents itself to be capable of furnishing
food and beverage of high quality and is desirous of obtaining ex-
clusive rights to furnish food and beverage services at the
aforesaid facilities.
June
D. County is agreeable to granting to Operator exclusive
rights to engage in the food and beverage business for profit at
the recreational facilities referred to in this Agreement.
E. The parties have reached an understanding and are desir-
ous of reducing to writing their Agreement.
THEREFORE, in consideration of the mutual covenants herein
contained, the County does hereby agree and let unto Operator and
Operator does hereby hire and take from the County certain premi-
ses, facilities, rights, services and privileges in connection
with the following County owned and operated recreational facili-
ties, to-wit:
WHITE LAKE-OAKS GOLF CLUBHOUSE
ADDISON-OAKS CONFERENCE CENTER,
ADDISON-OAKS CONCESSION STAND,
SPRINGFIELD-OAKS GOLF CLUBHOUSE,
SPRINGFIELD-OAKS YOUTH ACTIVITIES CENTER,
INDEPENDENCE-OAKS CONCESSION STANDS,
WATERFORD-OAKS ACTIVITIES CENTER
WATERFORD-OAKS WAVE POOL CONCESSION STAND
GROVELAND-OAKS CONCESSION STAND,
GLEN OAKS GOLF CLUBHOUSE
as hereinafter provided.
PROVISIONS CONCERNING THE NATURE AND OPERATION OF THE CONCESSION
1.1 General Description of the Concession
Operator shall have the exclusive right in all facilities
subject to this agreement to operate restaurant facilities ser-
vicing food and beverage, including alcoholic beverages and
otherwise engaging in the food and restaurant business, including
catering and sale of miscellaneous novelty items incident to the
concession herein granted.
- 2 -
1,2 Area of Concession
Attached hereto in a Rider labeled "Exhibit A", is a descrip-
tion of each recreational facility subject to this Agreement, to-
gether with a particular description of the areas of such facility
let to Operator in connection with this Agreement.
1.3 Term
Operator shall have full authority to use said premises and
facilities and to exercise the rights, licenses and privileges
set forth herein for a term commencing on the 25th day of April,
1974 and terminating on the 31st day of December, 1978. Providing
Operator shall not be in default under the terms and conditions of
this Agreement, it shall have the right at its option to extend
the term of this Agreement for an additional ten (10) year period,
to expire December 31, 1988, except the percentages of the last
five years of this contract, 1984-1988 are to be negotiated
within ninety (90) days after December 31, 1983 or Agreement
becomes null and void.
OBLIGATIONS OF OPERATOR
2.1 qualiiy
Operator shall serve and dispense quality foods and beverages
with adequate portions.
It shall furnish good, prompt and efficient service adequate
to meet all the demands for its service at the facilities subject
to this Agreement.
Operator shall, at all times, comply with the Federal Pure
Food and Drug Laws and other applicable laws and regulations of
the United States. the State of Michigan, County of Oakland and
the municipalities wherein the facilities are located, and all
applicable health rules and regulations.
Operator shall furnish said service on a fair, equal and
nondiscriminatory basis to all users thereof. Operator will not
3
on the grounds of race, sex, religion, or national origin discrim-
inate or permit discrimination against any person or group of
persons. The selection of food and beverages offered for sale,
and its quality and portion schedules will be subject to the
reasonable approval by the County prior to the beginning of opera-
tions, and at any time thereafter.
2.2 Prices
Foods and beverages offered for sale by Operator shall be
sold at prices comparable to those maintained at other high
quality restaurants in the Oakland County area.
Operator shall charge fair, reasonable and nondiscriminatory
prices for each unit of sale or service, provided that Operator
may be allowed to make reasonable and nondiscriminatory discounts,
rebates, and other similar types of price reduction to volume
purchasers.
2.3 Service and Hours of Operation
Operator's service shall be prompt, clean, courteous,
efficient and sufficient in quantity. Operator shall at all times
provide personnel sufficient to operate the facilities on a
standard equal to that maintained by comparable restaurant opera-
tions at comparable locations.
The specific hours of operation at each facility are desig-
nated on the Rider attached hereto and labeled "Exhibit A".
2.4 Supervisor
Operator shall at all times provide an active, qualified
and competent supervisor at each facility who shall be authorized
to represent and act for Operator in matters pertaining to the
day to day operation of the facility.
2.5 Employees of Operator
All employees of Operator shall be clean, courteous, efficien
and neat in appearance. Operator shall not employ any person
- 4 -
or persons in or about any facility who shall use improper
language or act in a loud or boisterous or otherwise improper
manner.
Upon written notification by the County to Operator that a
person employed by Operator is, in the County's opinion, dis-
orderly, unsanitary, or otherwise unsatisfactory, Operator shall,
immediately, remedy the situation to the County's reasonable
satisfaction, and failing that, the employee shall be removed
from service at any of the facilities and shall not again be
trained or employed by Operator at any facility without consent
of the County.
2.6 Inspection.
Operator shall allow the County's authorized representatives
access to the premises to be occupied by Operator under the terms
of this Agreement at all reasonable hours, for the purpose of
examining and inspecting said premises, for purposes necessary,
incidental to or connected with the performance of its obligations
hereunder, or in the exercise of its governmental functions.
Operator agrees that the County's Manager of parks and
Recreation, or his authorized agent, is authorized, at any time,
to inspect Operator's operation for cleanliness, condition of
equipment, quantity and quality of food, services and hours of
operation. If not satisfactory, the Manager of Parks and Recrea-
tion shall notify Operator, in writing, to correct any unsatis-
factory conditions. Such written notice shall contain specific
particulars so as to adequately advise Operator of the conditions
deemed unsatisfactory and the reasons and grounds for such con-
clusion. Operator shall take immediate steps to correct any such
unsatisfactory condition. If Operator is of the opinion that the
action of the County's Manager of Parks and Recreation provided
for herein is unwarranted, unreasonable or based upon erroneous
facts or information Operator shall call the same to the attention
of the Manager and thereafter the parties shall use best efforts
to resolve any dispute to their mutual satisfaction.
- 5 -
2.7 Access to Premises
It is understood that generally Operator will occupy certain
designated portions of the various facilities and the use in
common with others of all access roads and common areas, including
the parking lots. Should a question or dispute arise concerning
the use of common areas the parties shall utilize their best
efforts to resolve such dispute in such a fashion so as to carry
out the intent and purposes of the Agreement while minimizing the
inconvenience to others entitled to use of such common areas.
2.8 Sale of Liquor
The parties understand and agree that the County presently
has Class C liquor licenses issued by the State of Michigan per-
mitting the sale of alcoholic beverages at White Lake-Oaks Golf
Clubhouse, Springfield-Oaks Golf Clubhouse and Glen Oaks Golf
Clubhouse. The parties shall immediately make application to the
Michigan Liquor Control Commission to include Operator as an
additional licensee on the existing Class C. liquor license.
In the event the Michigan Liquor Control Commission refuses
to add Operator as an additional licensee on said Class C liquor
license, the parties shall enter into a management contract
acceptable to the Liquor Control Commission to the end that
Operator may engage lawfully in the sale of liquor.
It is further agreed by Operator that upon termination of the
Agreement for any reason, Operator, its successors and assigns,
shall reassign to the County, its interest in the Class C liquor
license, or to such party or parties as the County shall designate
subject however to the consent and approval of the Michigan Liquor
Control Commission.
It is further agreed by Operator that additional licenses to
dispense liquor on the subject Oakland County properties shall
operate in the same manner and on the same terms as the Class C
liquor licenses presently held by the County.
- 6 -
DUTIES AND RESPONSIBILITIES OF THE PARTIES CONCERNING THE PREMISES
3.1 Decoration and Redecoration
Operator agrees that it will adopt and use decorating schemes
and motifs in harmony with the design and architectural treatment
of the various facilities and will submit any proposed changes
therein, to the Manager of Parks and Recreation for approval prior
to installation. Operator shall at its sole expense do any and
all interior decorating of those portions of the premises re-
ferred to in the Rider hereto and described as being under the
exclusive custody and control of Operator. Such redecoration
shall be undertaken in a manner approved by the County acting
through the Manager of Parks and Recreation, or his authorized
agent.
3,2 Maintenance of Sign Equiement
Operator shall have the right to install or cause to be
installed appropriate signs in and about the various facilities
advertising their operations, provided that such signs shall be
in good taste and shall not materially detract from the
aesthetics of the premises. All cost of such installation shall
be borne by Operator. Operator shall have the right to incorpor-
ate as part of its advertising lago, the logo of Oakland County
Parks and Recreation Commission (Oak Tree). County shall have
the right to review of advertising materials and to reasonable
rejection commensurate with this paragraph.
3.3 Maintenance of Equipment
Operator agrees, at all times, to maintain and keep in good
operating condition, at Operator's sole expense, all equipment
furnished by the County. The County has represented that all
restaurant equipment is in good operating order as of the date
hereof. Any new equipment installed by Operator shall be done
at Operator's sole cost and expense and shall be installed pursu-
ant to all applicable building codes and health rules and regula-
tions. All such additional equipment installed by Operator shall
- 7 -
be of high quality, safe, modern in design and shall harmonize
with the equipment furnished by the County to the extent that the
same may be possible. Operator shall supply the Manager of Parks
and Recreation with a list of all equipment installed by it in the
various facilities, which lists shall describe such equipment with
particularity. All property of every sort which may be installed
by Operator as a replacement for property initially furnished by
the County shall be and remaih the property of the County, after
its installation. All other property and trade fixtures shall
remain the property of Operator with exception of those trade
fixtures which are installed in the premises in such fashion so
as not to be readily removable without substantially damaging
the premises.
3.4 Trash and Garbage
Operator shall provide at its sole expense, suitable pro-
cedures for the adequate sanitary handling and disposal of all
trash, garbage and other refuse caused as a result of the opera-
tion of its business. Whenever possible, both the Operator and
the County shall coordinate their trash and rubbish disposal
procedures so as to accomplish these functions in mutual advan-
tageous way.
3.5 'Damage's to Premises
Operator shall be responsible for damage to the premises,
including the breakage of glass, caused by the negligent acts of
its agents, employees, patrons, or other persons under its di-
rection and control.
If the premises occupied by Operator are partially damaged
by fire, explosion, the elements, the public enemy, or other
casualty, but not rendered untenantable, the same shall be re-
paired with due diligence by the County at its own cost and
expense. If the damage shall be so extensive as tc render such
premises untenantable, but capable of being repaired in thirty (30
days, the same shall be repaired with due diligence by the County
- 8 -
at its own cost and expense and the amounts payable herein shall
be proportionately paid up to the time of such damage and there-
after cease until such time as the premises are fully restored.
In the event the premises are completely destroyed by fire, ex-
plosion, the elements, the public enemy or other casualty, or so
damaged that they will remain untenantable for more than thirty
(30) days, the County shall be under no obligation to repair and
reconstruct the premises, and amounts payable hereunder shall be
proportionately paid up to the time of such damage or destruction
and shall henceforth cease until such time as the premises may be
fully restored.
The County and Operator agree that each forfeits any right
of action that it may later acquire against the other of the
parties to the Agreement for loss or damage to its property or
to property in which it may have an interest, where such loss is
caused by fire or any of the extended coverage hazards and arises
out of or is connected with the use of the premises as provided
in this Agreement.
3.6 Fire and Extended Coverage Insurance
Operator shall procure and keep in force fire and extended
coverage insurance upon all improvements, business fixtures,
equipment, furniture and furnishings to the full insurable value
thereof and shall furnish the County with evidence that such
coverage has been procured and is being maintained in full force
and effect. Similar insurance coverage for the real property
shall be furnished by the County. Such insurance shall be pro-
vided by companies licensed to do business in the State of Michi-
gan.
3.7 Indemnity
Operator does hereby covenant and agree to indemnify and
save harmless the County from all fines, suits, claims, demands
and actions of any kind and nature by reason of any and all of its
negligence in conducting operations and does hereby agree to
- 9 -
assume all risks in the operation of its business hereunder and
shall be solely responsible and answerable in damages for any
and all accidents or injuries to persons or property caused by
the negligence of Operator, its employees and agents.
Operator shall maintain, with insurance and underwriters
satisfactory to and approved by the County, a standard form
policy or policies of insurance in such amounts as may from time
to time be approved by the County protecting both Operator and
the County against public liability, products liability, liquor
liability and property damage. Operator shall promptly, after
the execution of this Agreement, furnish such policy or policies
for Personal Injury growing out of any one occurrence in the sum
of $250,000.00 per person and $500,000.00 growing out of any one
casualty and Proper Damage of $250,000.00 per occurrence and
$250,000.00 aggregate. Operator shall furnish a certificate from
the insurance carrier or carriers showing such insurance to be in
full force and effect during the term of this contract, or to
deposit copies of the policies which give this coverage, with the
County. If certificates are provided, a thirty (30) day notice
•of cancellation shall be given.
3.8 Redelivery
Operator will make no unlawful or offensive use of said
premises and will at the expiration of the term hereof or upon
any earlier termination thereof, as hereinafter provided, quit
and deliver said premises to the County and those having their
estate in the premises, peaceably, quietly, and in as good order
and condition, reasonable use and wear thereof, fire and unavoid-
able cause excepted, as the same now are or may hereafter be
placed by Operator or the County.
PAYMENT TERMS
4.1 Costs Borne by Operator
Operator shall bear at its own expense all costs of operating
their business, including any and all taxes and assessments levied
- 10 -
JanuaAy 1, 1975
aatea in exce4A
Januany 1, 1976
4ate4 in exce44
or assessed upon Operator's personal property located about the
various premises. Operator shall pay for and obtain all permits
and licenses required by authority of law in connection with the
operation of its business.
4.2 Payments by Operator
Operator, in consideration of this Agreement, hereby cove-
ants and agrees to pay to the County the following sums, to-wit:
White Lake-Oaks
A. A minimum rental at the rate of $8,000.00 per annum paya-
ble in equal monthly installments in advance of the first
day of each calendar month of the term hereof without any
set off or deduction whatsoever, with the exception of
the year 1974, during which year the minimum rental shall
be prorated and adjusted based upon the number of months
this Agreement is in effect.
B. In addition to such minimum rental Operator shall pay to
the County percentage rentals based upon the following
table:
Thka DecembeA 31, 1974 -- 4% o6 94046 6ate4 in exce44
o6 $200,000.00;
thnough Vecembet 31, 1975 -- 5% oi gAo4.4.
o6 $160,000.00;
th4ou9h Decembea 31, 1976 -- 6% 06 9a0,56
o6 $134,000.00;
Januarty 1, 1977 thAough DeeembeA 31, 1977 -- 63 06 gii.o44
eau in exceA4 o6 $134,000.00;
Januao 1, 1978 thAou* DecembeA 31, 1978 -- 6% 06 gnus
4a.tes in exce.64 04 $134,000.00.
Additionat 5-yea& option 4hatt be at 6% o6 totat giuma
date6.
C. In addition to the amounts provided for in Paragraph A
and B hereof Operator shall pay to County a sum of money
equal to 17. of its gross sales annually for-utilities.
AddisOn-Oaks Conference Center
A. A minimum rental at the rate of $6,000.00 per annum
payable in equal monthly installments in advance on
- 11 -
the first day of each calendar month of the term hereof
without any set off or deduction whatsoever, with the
exception of the year 1974, during which year the minimum
rental shall be prorated and adjusted based upon the
number of months this Agreement is in effect.
B. In addition to such minimum rental Operator shall pay
to the County percentage rentals based upon the following
table:
Th/Lough Decemben 31, 1974 -- 3% o6 0046 zateA in exceAs o6
$200,000.00;
Januany 1, 1975 thnough Deeemben 31, 1975 -- 4% ogno66
<sates in exceAA oi $150,000.00;
Januany 1, 1976 thnough December:. 31, 1976 -- 5% 6.6 gnsAs
6ate.6 in exce4A olf $120,000.00;
Janaa4y 1, 1977 thhough Vecembek 31, 1977 -- 5% pi 94044
zate.6 in exceA,5 o6 $120,000.00;
Janaaay 1, 1978 thnough Decemben 31, 1978 -- 5% oi ghoAA
4ate4 in exce4A o6 $120,000,00;
AdditionaZ 5-yea. Qptisn shall be at 5% o6 toat gnoAA
eate4.
C. In addition to the amounts provided for in paragraphs A
through B hereof, Operator shall pay to County a sum of
money equal to 27. of its gross sales annually for
utilities.
Springfield-Oaks Golf Clubhouse
A. During the entire term hereof rental shall be based upon
a percentage of Operator's gross sales annually in
accordance with the following schedule:
0 tit/Lough $50,000.00 -- $1.00;
$50,001.00 thuugh $100,000.00 -- $1.00 pew 2% oi excue
oven $50,000.00;
$100,001.00 thnough $150,000.00 -- $1,001.00 pts.A 3% o6
exceAA oven $100,000.00;
$150,007.00 thiwagh $200,000.00 -- $2,501.00 ptaA 4% si
exceAA oven $150.001.00;
$200,001.00 and up -- $4,501.00 pts.4 5% cq excee.5 overt
$200,000.00;
Additionat 5-jean option 6hatt be at 5% oi totat gnoaa AateA.
- 12 -
Springfield-Oaks Youth. Activities Center
A. During the entire term hereof rental shall be based upon
a percentage of Operator's gross sales annually in
accordance with the following schedule:
Thmugh Decemben 31, 1374 -- 4% o6 gn044 4ate6;
Januany 1, 1975 thnough Decemben 31, 1975 --
4% oi gir.o44 oate.a;
Januany 1, 1976 thAough Decembeis. 31, 1976 --
4% 04 940.64 .sateh;
JanuaiLy 1, 1977 thnough DecembeiL 31, 1977 --
5% o6 anoaa 4ate6;
Jana/any 1, 1978 .tIvLough DecvnbeA 31, 1978 --
5% o6 94044 6ate4;
Additionat 5-yean opti..on znaLt be. at 5% 06 totat poza ate.6.
Addison-Oaks Concession Stand
A. During the entire term hereof rental shall be based upon
a percentage of Operator' s gross sales annually in
accordance with the following schedule:
Thnough Decemben 31, 1976 -- 61 26 gmee &LW:
Januo.rty 1, 1977 thnough Decembers. 31, 1978 -- 8%
o6 911.044 4ate6;
Additiona 5-yea ption Ante be at 1% 06 totat 9A044 4ate.6.
Waterford-Oaks Activities Center
A. During the entire term herof rental shall be based upon
a percentage of Operator's gross sales annually in
accordance with the following schedule:
Thnough Decembea 31, 1974 -- 41 o6 9n044 =Les
Januany 1, 1975 thnough Decemben 31, 1915 -- 4%
06 94044 eau.;
Januany 1, 1976 thnough Decembeit 31, 1976 -- 4%
06 911.044 4ate4;
Januany 1, 1977 Xlvtough Decesken. 31, 1978 -- 51
06 94084 =tee;
Ads:Li-V.0=C 5-yean option zhate. be. at 5% o6 to-tat 9no44 4atez.
Waterford-Oaks Wave Pool Concession Stand
A. During the entire term hereof rental shall be based upon
a percentage of Operator's gross sales annually in
accordance with the following schedule:
1976 - 1977 -- 8% o6 yo44 data
7918 - 1983 --- 101 06 94046 aatez
Groveland-Oaks Concession Stand
A. During the entire term hereof rental shall be based upon
a percentage of Operator's gross sales annually in
accordance with the following schedule:
Thtough Decemba 31, 1976 -- 6% o6 gas44 zatee;
Janaany 1, 1977 thnough DecembeA 31, 1978 -- 8%
si 9/1.044 aatea;
Additionat 5-eak option 411.002, be at 8% o otiat gno46
6ate4.
,Glen Oaks Golf Clubhouse
A. During the entire term hereof rental shall be based upon
a percentage of the Operator's gross sales annually in
accordance with the following schedule:
1978 - 1983 -- 10% o6 9no64 aate4
B. Operator shall pay to the County a sum of money equal to
one-half of the utilities (gas, light and water) that are
expended for the purpose of operating the building that
houses the banquet facility, pro shop and clubhouse, alon
with other common areas within the main building.
C. Operator agrees to provide the day-to-day cleaning and
maintenance of the interior of the building; locker room,
grill room, banquet area, bathrooms and other common
areas throughout the building.
D. County will bring the building up-to-code, as well as the
equipment as required by all local, county and state
enforcing agencies.
The term gross sales shall include the gross amount of all
sales of every kind and description made in, upon or resulting
from the conduct of the business of Operator upon the various
recreational facilities covered by this Agreement, but after
deduction therefrom refunds made in the normal course of business
and amounts paid for sales tax. Net proceeds from vending
machines shall be included in gross sales. All percentage payment
provided hereunder shall be payable quarterly not later than the
- 14 -
thirtieth (30th) day following the end of the first three (3)
months of operation and the end of each three (3) month period
thereafter, and shall be based upon reports furnished by Operator
to the County with such payments. Operator shall furnish to the
County within sixty (60) days after the closing of each calendar
year a report certified to by an officer of Operator, showing
Operator's gross receipts during the preceding calendar year, the
amount of any accumulated prior deficiency in percentage payments,
and the net percentage payment, if any, owing hereunder for such
period, provided that, if at the end of any quarter, it be deter-
mined that Operator has paid for said year to date, a greater sum
than would have been payable under the provisions hereof for such
excess payment.
In the event the term hereof is extended through the exercise
by the Operator of the option granted to it in paragraph 1.3
hereof, payments shall be made during said extended period at the
same level as payments required during the calendar year 1978.
.3 Audit of Books and Records
The County shall have the right at any time within ninety
(90) days thereafter to have the books and records of Operator
audited during reasonable hours. Any additional percentage pay-
ment found due by such audit shall be paid to the County within
thirty (30) days and shall bear interest at the rate of seven (774
percent per annum from the date such payment was due until paid.
Failure of the County to exercise its option to audit the books
of Operator within said period shall be conclusive evidence as
between the parties hereto that the reports of gross sales supplied
by Operator to the County during the preceding calendar year are
'correct.
,4 Utilities
County will supply all utilities to the various facilities
ubject to this Agreement and will supply heat at an average tem-
erature of 720 during winter season and circulating fresh air when
- 15 -
heat is not required. In the event any of the facilities subject
to this Agreement are presently air-conditioned, then and in that
event the County shall supply air-conditioning at its cost and
expense.
5 Financial Operation altmaties
Operator shall furnish summaries of Gross Sales tc County
representative on a monthly basis.
4.6 Right of Review
County shall have the right of reasonable review of adver-
tising, hours of operation, and menus and prices with Operator.
ADDITIONAL TERMS OF AGREEMENT
5.1 Paragraph Headings
The paragraph headings contained herein are for convenience
in reference and are not intended to define or limit the scope of
any provision of this Agreement.
5.2 Invalid Provisions
In the event that any provision herein contained is held to
be invalid by any court of competent jurisdiction, the invalidity
of such provision shall not affect the remainder of the Agreement.
5.3 Assignment. and Subletting.
Operator shall not assign, transfer, sublease, pledge,
hypothecate, surrender or otherwise encumber or dispose of any
interest arising under this Agreement or any estate created by this
Agreement, or any interest in any portion of the same, or permit
any other person or persons, company or corporation to occupy
:these premises, without the written consent of the County being
first obtained, which consent shall not unreasonably be witheld.
All the covenants, stipulations and agreements in this
Agreement shall extend to and bind the legal representatives.
successors and assigns of the respective parties hereto.
•
- 16 -
ewis E. Wint
BY
5.4 Default
It is agreed that if Operator shall neglect or fail to pay
any amounts promptly as specified in this Agreement and if there
is a failure to pay same for a period in excess of thirty (30)
days, then this agreement shall be subject to cancellation and
become void and the rights of Operator terminated hereunder at
the option of the County.
It is further agreed that should Operator be adjudicated a
ankrupt or insolvent according to law, the Agreement shall become
void.
5.5 Non-Waiver
Any waiver of any breach of covenants herein contained to be
kept and performed by Operator shall not be deemed or considered
as a continuing waiver and shall not operate to bar or prevent
the County from declaring a forfeiture for any succeeding breach
either of the same condition or covenant or otherwise.
5.6 Notices
Notices to the County provided for in.this Agreement shall be
sufficient if in writing and mailed, postage prepaid, addressed to
the Manager of Parks and Recreation, 2800 Watkins Lake Road,
ontiac, Michigan 48054, or to such other address as may have been
esignated in writing from time to time and notices to Operator
hall be deemed sufficient if in writing and mailed, postage
repald, addressed to the E. A. Fuller Oaks Corporation, 1480 W.
omeo Road, Oxford, Michigan 48051.
IN WITNESS WHEREOF, the parties hereto have hereunto set their
ands and seals.
ITNESSES: COUNTY OF OAKLAND, a Michigan
Constitutional Corporation, by
its Statutory Agent, the Oakland
County Parks and Recreation
Commission
Its Chairman'
( L& a BY Vc
Velma M. Austin
ItS Secretary
E. A FULLER OAKS CORPORATION,
A Michigan Corporation
Ain *a: 1-',2717ilaM BY
Edward Fuller
Its President • & Sebretary
"Za-elLAAL1-/- BY
Ce6 e Ze as
Its Vice-President & Treasurer
PROVED BY RESOLUTION OF June 20, 1979
And Amendments of: December 1, 1978
March 10, 1.978
July 23, 1976
April 25, 1974
April 25, 1974
EXHIBIT (SCHEDULE) "A"
DESCRIPTION OF PROPERTY
WHITE LAKE-OAKS GOLF CLUBHOUSE
Consists of diningroom, bar and dining area, and
restroom facilities within the Clubhouse located
at 991 Williams Lake Road, White Lake Township.
ADDISON-OAKS CONFERENCE CENTER & CONCESSION STAND
Consists of the entire structure located at
1480 West Romeo Road, Addison Township, along
with a concession stand located on the beach.
SPRINGFIELD-OAKS GOLF CLUBHOUSE
Consists of restaurant and restroom facilities
located on upper level at 12450 Andersonville
Road, Springfield Township.
SPRINGFIELD-OAKS YOUTH ACTIVITIES CENTER
Consists of a structure located at 12451
Andersonville Road, Springfield Township.
INDEPENDENCE-OAKS CONCESSION STANDS
Consists of that portion of bathing beach and boat
shelter that exists for the purpose of dispensing
and consuming of food and beverage.
WATERFORD-OAKS ACTIVITIES CENTER
Consists of one large building located at 2800
Watkins Lake Road, Waterford Township,
"A", Page
WATERFORD-OAKS WAVE POOL CONCESSION STAND
Consists of that portion of bathhouse that exists
for the purpose of dispensing and consuming of
food and beverage.
GROVELAND-OAKS CONCESSION STAND
Consists of a wooden structure located on the beach
and situated in Groveland Township.
GLEN OAKS GOLF CLUBHOUSE
Consists of complete interior of Clubhouse including
such areas as banquet rooms, bar area, grill room,
kitchen, storage areas, patio, and other common areas.
HOURS OF OPERATION
I. All services and facilities shall remain open for
business at least during those hours comparable facilities operate
at comparable locations. Breakfast service shall be maintained at
those facilities operating golf courses during those months in
which the golf facility is in operation.
II. SPRINGFIELD-OAKS CLUBHOUSE
The parties recognize and acknowledge that the following
rules shall apply for the Springfield-Oaks Golf Course
Clubhouse:
A. Alcoholicbeverages will only be sold during the
golf season and at privately scheduled functions.
B. Alcoholic beverages will be sold during the golf
season only between the hours of 12:00 p.m. to
10:00 p.m. and the Clubhouse will close no later
than 11:00 p.m. except for privately scheduled
functions.
"A", Page 2
C. No signs will be posted or advertising done which
will indicate that liquor is available at the
Clubhouse..
D. No alcoholic beverages will be allowed anywhere
except the upper level of the Clubhouse.
E. The S.D.M. and the dance permit portions of this
Resort License will be cancelled. This portion of
the license will not be issued and therefore no
carry-out sales or dancing will be allowed.
F. In the event the Agreement between the Operator
and the County is cancelled or not renewed, license
shall revert to the County for use only by con-
cessionaires, controlled and approved by the County
and Liquor Control Commission.
G. All alcoholic beverages will be dispensed from a
service bar located in the kitchen or some other
private room. No sit-down bar will be installed.
"A", Page 3
SIXTH AMENDMENT TO CONCESSION AGREEMENT
THIS SIXTH AMENDMENT is attached to and made a part of a
certain Concession Agreement dated April 25, 1974, and revised on
the 20th day of June, 1979, by and between the COUNTY OF OAKLAND,
a Michigan Constitutional Corporation, and E. A. FULLER OAK MANAGE-
MENT CORPORATION, a Michigan Corporation.
WITNESSETH:
A. Paragraph 1.2 of the Concession Agreement is amended
to include the following paragraph:
"Providing Operator shall not be in default under
the terms and conditions of this Agreement, it shall
have the right at its option to extend the term of
this Agreement for an additional fifteen (15) year
period, to commence on January 1, 1989 and to expire
December 31, 2003. The percentages 'of the contract
years under said extension are to be renegotiated
for each of the five-year periods of 1989-1993,
1994-1998, and 1999-2003. The negotiations shall be .
completed within the first ninety (90) days of the new
five-year period or the Agreement becomes null and void."
B. Paragraph 4.2 of the Concession Agreement is hereby
modified to substitute the following therefor in its entirety:
4.2 Payments by Operator
Operator, in consideration of this Agreement, hereby
covenants and agrees to pay to the County the following
sums, to-wit:
White Lake-Oaks
A minimum rental of $8,000.00 per annum or eight OM
percent of total gross sales, whichever is greater, payable
in equal installments in advance of the first day of each
calendar month without setoff or deduction.
Addison Oaks Conference Center
A minimum rental of $6,000.00 per annum or eight (8%)
percent of total gross sales, whichever is greater, payable
in equal monthly installments in advance of the first day
of each calendar month without setoff or deduction. Total
annual payments, however, shall not be less than one hundred
(100%) percent of the utilities.
Springfield Oaks Golf Clubhouse
Operator shall pay as rental eight OM Percent of the
total annual gross sales.
Springfield Oaks Youth Activities Center
Operator shall pay as rental five (57,) percent of the
total annual gross sales.
Addison Oaks Concession Stand
Operator shall pay as rental eleven (11%) percent of
the total annual gross sales.
Waterford Oaks Activities Center
Operator shall pay as rental five (5%) percent of
the total annual gross sales.
Waterford Oaks Wave Pool Concession Stand
Operator shall pay as rental eleven (1l%) percent of
the total annual gross sales.
Groveland Oaks Concession Stand
Operator shall pay as rental ten (10%) percent of
the total annual gross sales.
Independence Oaks Concession Stand
Operator shall pay as rental ten (10%) percent of
the total annual gross sales.
Glen Oaks Calf Clubhouse
A. During the entire term hereof rental shall be
based upon a percentage of the Operator's gross
sales annually in accordance with the following
schedule:
1978-1983 - ten (107.) of gross sales
-2-
B. Operator shall pay to the County a sum of money
equal to one-half of the utilities (gas, light
and water) that are expended for the purpose of
operating the building that houses the banquet
facility, pro shop and clubhouse, along with
other common areas within the main building.
C. Operator agrees to provide the day-to-day cleaning
and maintenance of the interior of the building,
locker room, grill room, banquet area, bathrooms
and other common areas throughout the building.
The term gross sales shall include the gross amount of
all sales of every kind and description made in, upon or resulting from
the conduct of the business of Operator upon the various recreational
facilities covered by this Agreement, but after deduction therefrom
refunds made in the normal course of business and amounts paid for
sales tax. Net proceeds from vending machines shall be included in
gross sales. All percentage payments provided hereunder shall be
payable quarterly, not later than the thirtieth (30th) day following
the end of the first three C3) months of operation and the end of each
three (3) month period thereafter, and shall be based upon reports
furnished by Operator to the County with such payments. Operator shall
furnish to the County within sixty (60) days after the closing of each
calendar year a report certified to by an officer of Operator, showing
Operator's gross receipts during the preceding calendar year, the amount
of any accumulated prior deficiency in percentage payments, and the net
percentage payment, if any, owing hereunder for such period, provided
that, if at the and of any quarter it be determined that Operator has
paid for said year to date a greater sum than would have been payable
under the provisions hereof for such excess payment.
IN WITNESS WHEREOF, the parties hereto have executed this
Amendment to the Agreement on the ZIlday of , 1984.
-3-
COUNTY OF OAKLAND, a Michigan
Constitutional Corporation, by
its Statutory Agent, the Oakland
County Parks and Recreation
Commission
R. ERIC REICKEL, Manager
E. A. e F LER OAK MANAGLMENT
CORPO
,_L
TION ,,,.
BY: AKA' a ..... A ...
OARD A. FULLER,
President And Seer
By:
Vice President and Treasurer
APrr,DVED AS TO F071'31
Depailin;.n's,ci Cul; .
t---
WITNESSES:
Charles L. Ross
AMENDMENT APPROVED BY RESOLUTION OF March 26, 1984.
By:
Da)e'd:
SEVENTH AMENDMENT TO
CONCESSION AGREEMENT
WHEREAS, the County of Oakland, a Michigan Constitutional
Corporation (County), and S.A. Fuller Oak Management
Corporation, a Michigan Corporation, (Operator), are parties to
a certain Concession Agreement dated April 25, 1974, as amended;
and
WHEREAS, the County and Operator have determined that
changed conditions necessitate modification of portions of said
Concession Agreement; now
THEREFORE in consideration of the covenants and agreements
herein contained, Section 3.7 of said Lease and Concession
Agreement is hereby amended to read:
3.7 INDEMNITY:
The Operator does hereby covenant and agree to indemnify and
save harmless the County from all fines, suits, claims, demands
and actions of any kind and nature by reason of any and all of
its negligence in conducting operations and does hereby agree to
assume all risks in the operation of its business hereunder and
shall be solely responsible and answerable in damages for any
and all accidents or injuries to persons or property caused by
the negligence of Operator, its employees and agents.
Operator shall maintain with insurance underwriters,
satisfctory to and approved by the County, a standard .form
policy or policies of insurance in such amounts as may from time
to time be approved by the County protecting both the Operator
and the County against public liability, products liability,
liquor liability and property damage. Operator shall promptly
after the execution of this Agreement furnish such policy or
policies naming the County as an additional insured for Personal
Injury growing out of any one occurrence in the sums of not less
than $250,000.00 per person and $500,000.00 growing out of any
one casualty, and Property Damage of $250,000.00 per occurrence
and $250,000.00 aggregate, and Fifty Thousand Dollars
($50,000.00) liquor liability coverage. Operator shall furnish
a certificate from the insurance carrier or carriers showing
E. A. FyLLER OAK MANAGEMENT
CORPOrION, a Michigan
Corpo ation
BY:
BY:
e President and Treasurer
this Agreement, or deposit copies of the policies Which give
this coverage with the County. If certificates are provided, a
thirty (30) day notice of cancellation shall be given.
If the Operator certifies to the satisfaction of the County
that liquor liability insurance is not reasonably available in
this State or is not available at a reasonable premium, the
Commission may waive the above requirements regarding liquor
liability insurance and may accept in lieu thereof a non
interest-bearing deposit with the Oakland County Treasurer of
security satisfactory to the County in like amount, which
security may be in the form of cash, unencumbered securities, a 1
constant value bond executed by a surety company authorized to
do business in this State, or a bank letter of credit in favor
•
of the County for a minimum of one year's duration.
Upon any transfer of Operator's interest in this Concession
Agreement to any third party(ies), this amendment shall, at the
option of the County, become null and void, and the previous
provisions of section 3.7 shall control.
Operator agrees to carry workers' compensation coverage as
required by statute with employer's liability of not less than
One Hundred Thousand Dollars ($100,000.00).
IN WITNESS WHEREOF, the parties have executed this
amendment to the agreement as of March 2, , 1987.
COUNTY OF OAKLAND, a Michigan
Constitutional Corporation, by
its Statutory Agent, the
Oakland County Parks and
Recreation Commission
WITNESSES:
SY : ,7>4I/17;r
Lewis E. Pint, Chairman
.4t
a ph Ri .ar Manager
Glen Oaks
' Springfield Clubhouse
102
102
OAKLAND COUNT/ PARRS 6 RECREATION COMMISSION
CONCESSION CONTRACT
PROPOSED RENTAL RATES 1989-1993 SCHEDULE A
Addison Oaks Conference Center
Current
Rates*
82 or 1002
of utilities,
whichever is greater
Proposed
Rates 1989-1993*
8% plus 252
of utilities
t
Addison Oaks Concession 11X 122
Croveland Oaks 10% 122
Independence Oaks 102 122
102 plus 50% 122 plus 502
of utilites of utilities
82 102 or 100%
of utilities,
whichever Is greater
White Lake 82 102 plus 25%
of utilities
Springfield YAC 5X
Waterford Oaks Act. Ctr. 52
Red Oaks Waterpark 11% 111 plus 100%
of utilities
Waterford Oaks Waterpark 112 112 plus 50%
of R/0 utilities
*Rates listed are percentage of Concessionaire's gross sales.
SCUEDULEB
Accum.
Total Average
$36,900 $119,969 $39,989
$10,272 $ 41,284 $13,761
$29,226 $24,865 $21,151
Oakland County Parks and Recreation Commission
BUILDING UTILITIES FOR OAKS MANAGEMENT OPERATIONS
FOR THE YEARS INDICATED
Location
ADDISON OAKS CONFERENCE CENTER
SPRINGFIELD OAKS CLUBHOUSE
WAIERFORD OAKS WAVE POOL
RED OAKS HATER PARK
MITE LAKE OAKS CLUBHOUSE
1985 1986
$43,375 $39,694
$15,565 $15,447
NO SEPARATE METER FOR CONCESSION BLDG. - SEE RED OAKS WATER PARK
-0- -0- $ 5,002 $ 5,002 $ 5,002
$ 75,242 $25,080
1987
9111 112C11910 111011 CONCISSIOMAI12
1980 1981 1982 1983 1984. 1985 1916 1982
1967
CONCESSION ESTINAIED 1989 f1NAt
SRIAR KNIAL INCONE*. $ PARK
15.60
1011,740
0
11,961
6,002 16,963
OAKLAND COCNIT PARKS AHD RECREATION COHNISSION
ANNLISIS Of C01E155101 0E141 t SALES
fOR 185E TEARS INOICA110 SCHEDULE C
40015014 06(5 EDHEIRENCE C19116
U11111111
AD015014 OAKS CONCESSION
GNOTILAND OAKS
imminort DAKs
CLEM OAKS
U1101115
1191(670613 04111 %AYE 9001
U11111181
110.105 139.195 142.299 142,092 153,541 158,360 $66.132 159,468
10 10 so So So 10 10 10
1,266 1.495 1,394 1,272 1,671 1,874 1.651 1.626
4,334 5,512 4.907 5,302 6,433 6.151 1•717 6.329
1.689 1.142 1,491 1,850 2.068 2.293 2,447 2.70
0 39.564 50,248 56,770 54,941 60,357 62,203 72.742
mom 14,284 16,406 19.097 22,431 23,195 22.90 21.812
1743.367 109,469
O 10,000 169.469 9.11
14.750 1.774 12.01
63,291 1.595 12.0
27,962 3.154 12.00
227.417 81.290
O 21.112 109.102 15.01
105,771
13.161 13.0
273,773 27.177
• 6,270 33,647 17.31
34.261 3,426 10.01
42,806 4,251 10.01
521I141EI11O 04K5 CLUIDIOUSE 2.848 3,521 3.215 3.943 6.811 8.381 8,094 1.462
01411111 9 . o o o o o o o
snair LAKE OAKS 17.432 15,953 11,975 13,245 14.544 28,05 21,915 21.902 o... ,,.., U1 1111145 o 0 o o 0 0 0 0 o a.
SPRINGFIELD OAKS yAc 1.742 1,166 1,154 1,428 1.731 1,595 1.154 1,713
41.1fR1090 0Ars 6C11,1111 C10. 2.110 2,34e 1.948 1,239 1.529 2.40 2.189 2.1 25
pm 0041 061111 FAN(o 0 a o 0 0 a 11.961
111101115 0 0 0 0 0 0 0 0
0
5.772 4,524 Woe 7,90 8.831 7,361 6.299 7.452 67.741 7,452
I 0 0 0 0 0 0 1,501 9.953 14.71
miAL 165,877 1112.715 1142.267 1155.449 8174,625 1193.365 120.904 1218.389 .9.91 12,201 .900
.0419 CHANCE IN 1984
.401 561E5 51991I91 447 1969 ISEE SCHEDULE AI
NOIE: ALI 9161 851.11110 OR 10 11 6IEC112(0 101 INCLUDE ANT PRIOR OR fUIURE I14PRO9I1lIN15 HAM 89 IHE CONCESSIONAIRE.
1273.295 12.6 3 -25.0 INCREAse
NCESSION AGREEMEN1
THIS EIGHTH AMENDMENT is attached to and made a part of a certain Concession
Agreement dated April 25, 1974, and revised on the 6th day of July 1994, by and between the
COUNTY OF OAKLAND, a Michigan Constitutional Corporation, and E. A. FULLER OAK
MANAGEMENT CORPORATION, (hereafter "Operator") a Michigan Corporation.
The parties agree that the original CONCESSION AGREEMENT entered into between
the parties on April 25, 1974, all seven (7) subsequent amendments thereto, shall continue and
remain in full force and effect except as modified herein and shall constitute the entire agreement
between the parties. E. A. FULLER OAK MANAGEMENT CORPORATION agrees that it shall
assume all of the responsibilities and burdens of the "OPERATOR" and/or "Laffrey, Werthman
and Fuller Restaurants Inc.", its predecessor corporation, contained in the original.CONCESSION
AGREEMENT and all prior amendments.
WITNESSETH:
A. Paragraph 1.3 of the concession Agreement is amended to include the following
paragraph:
"Providing Operator shall not be in default under the terms and conditions of this
Agreement, it shall have the right at its option to extend the term of this Agreement for
an additional five (5) year period, to commence on January 1, 2004 and to expire
December 31, 2008. The percentages of the contract years under said extension are to
be renegotiated for the five-year period of 2004-2008. The negotiations shall be
completed within the first ninety (90) days of the new five-year period or the fkgreement
becomes null and void."
B. Paragraph 4.2 of the ConcessionAgreement is hereby modified to substitute the
following therefor in its entirety:
4.2 Parnents by Operator
Operator, in consideration of this Agreement, hereby covenants and agrees to pay
to the County the following sums, to-wit:
White Lake Oaks
Operator shall pay rental of ten percent (10%) of total annual gross sales and
twenty-five percent (25%) of utility costs.
Addison Oaks Conference Centet
Operator shall pay rental of eight percent (8%) of total annual gross sales and
twenty-five percent (25%) of utility costs.
pringfield Oaks Golf Clubhouse
Operator shall pay as rental ten percent (10%) of the total annual gross -sales or
one hundred percent (100%) of utility costs, whichever is greater.
DIME cWaks_B
Operator shall pay as rental ten percent (10%) of the total annual gross sales.
Addison Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total annual gross sales,
Waterford Oaks Activity Center
Operator shall pay as rental ten percent (10%) of the to'tal annual gross sales.
Red Oaks Wave Pool Congeision Stand
Operator shall pay as rental eleven percent (11%) of the total annual gross sales
and one hundred percent (100%) of utility costs.
Waterford Oaks Wave Pool Coneession_Stand
Operator shall pay as rental eleven percent (11%) of the total annual gross sales
and fifty percent (50%) of the utility costs at the Red Oaks Waterpark.
cznitelancl_Daks_Coneessioaaianel
Operator shall pay as rental twelve percent (12%) of the total annual gross sales.
lasicpsnthass_Daks_Canssasioaliand
Operator shall pay as rental twelve percent (12%) of the total annual gross sales.
Glen Oaks_Golf Clubhouse
Operator shall pay as rental twelve percent (12%) of the total annual gross sales
and fifty percent (50%) of the utility costs. If the banquet facility is expanded, the
operator shall pay, upon completion of expansion, thirteen and one-half percent (13.5%)
of the total annual gross sales on the banquet facility, twelve percent (12%) of the total
annual gross sales on the grill room facility and fifty percent (50%) of the utility costs.
If the expansion of the banquet facility docs not occur, the percentage rate will remain
at 12 percent.
The term gross sales shall include the gross amount of all sales of ..e'Very kind and
description made in, upon or resulting from the conduct of the business of Operator upon the
various recreational facilities covered by this Agreement, but after deduction therefrom refunds
made in the normal course of business and amounts paid for sales tax. Net proceeds from
vending machines shall be included in gross sales. All percentage payments provided hereunder
shall be payable quarterly, not later than the thirtieth (30th) day following the end of the first
three (3) months of operation and the end of each three (3) month period thereafter, and shall be
based upon reports furnished by Operator to the County with such payments. Operator shall
furnish to the County within sixty (60) days after the closing of each calendar year a report
certified to by an officer of Operator, showing Operator's gross receipts during the preceding
calendar year, the amount of any accumulated prior deficiency in percentage payments, and the
net percentage payment, if any, owing hereunder for such period, provided that, if at the end of
any quarter it be determined that Operator has paid for said year to date a greater sum than
would have been payable under the provisions hereof for such excess payment.
E. A. FULLER OAK MANAGEMENT, INC.
a Michigan Corporation
LM
EDWARD A. FULLER
President and Secretary LI
_
E P • 1411_ . Ice President and Treasurer
RALPH RICHARD
. Manager
IN WITNESS WHEREOF, EDWARD A. FULLER, President and Secretary of E. A.
FULLER OAK MANAGEMENT, INC., hereby acknowledges that he has authority to execute
this CONTRACT on behalf of E. A. FULLER OAK MANAGEMENT, INC., a Michigan
Corporation, and hereby accepts and binds E. A. FULLER OAK MANAGEMENT, INC., to
terms and conditions of this EIGHTH AMENDMENT TO CONCESSION AGREEMENT on this
6th day of July, 1994.
COUNTY OF OAKLAND, a Michigan
Constitutional Corporation, by its Statutory
Agent, the Oakland County Parks and
Recreation Commission
p
PECKY D. LEWIS
Chairman
DILINITH AMENDMENT TO CONCESSION AGREEMENT
TI-US NINTH AMENDMENT is attached to and made a part of a certain Concession Agreement
dated April 25. 1974, and revised on the fourth day of April, 1999, by and between the COUNTY OF
OAKLAND (hereafter "County"). a Michigan Constitutional Corporation, and E. A. FULLER OAK
MANAGEMENT CORPORATION (hereafter "Operator"), a Michigan Corporation.
The parties agree that the original CONCESSION AGREEMENT entered into between the
parties on April 25, 1974, and all eight (8) subsequent amendments thereto, shall continue and remain in
full force and effect except as modified herein and shall constitute the entire agreement between the
parties. E. A. FULLER OAK MANAGEMENT CORPORATION agrees that it shall assume all of -the
responsibilities and burdens of the "OPERATOR" and/or "Laffrey, Werthman and Fuller Restaurants
Inc.", its predecessor corporation, contained in the original CONCESSION AGREEMENT and all prior
amendments.
WITNESSETH:
A. Paragraph 4.2 of the Concession Agreement is hereby modified to substitute the
following therefore in its entirety:
42 Payments by Operator
Operator, in consideration of this Agreement, hereby covenants and agrees to pay to the County
the following sums, to-wit:
White Lake Oaks
Operator shall pay rental of ten percent (10%) of total annual gross sales and twenty-five percent
(25%) of utility costs.
Addison Oaks Conference Center
Operator shall pay rental of eight percent (8%) of total annual gross sales and twenty-five
1
percent (25%) of utility costs.
Springfield Oaks Golf Clubhouse
Operator shall pay as rental ten percent (10%) of the total annual gross sales or one hundred
percent (100%) of utility costs, whichever is greater.
$pringfteld Oaks Activities Center
Operator shall pay as rental ten percent (10%) of the total annual gross sales.
Addison Daks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total annual gross sales.
Waterford Oaks Activiv Center
Operator shall pay as rental ten percent (10%) of the total annual gross sales.
Red Oaks Wavelool Concession Stand
Operator shall pay as rental eleven percent (11%) of the total annual gross sales and one hundred
percent (100°A) of utility costs.
Waterford Oaks Wave Pool Concession Stand
Operator shall pay as rental eleven percent (11%) cf the total annual gross sales and one hundred
percent (100%) of the utility costs.
Groveland Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total annual gross sales.
jndependence Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total annual gross sales.
Glen Oaks Golf Clubhouse
Operator shall pay as rental thirteen and one-half percent (13.5%) of the total annual gross sales
on the banquet facility, twelve percent (12%) of the total annual gross sales on the grill room facility and
fifty percent (50%) of the utility casts.
2
The term gross sales shall include the gross amount of all sales of every kind and description
made in, upon or resulting from the conduct of the business of Operator upon the various recreational
facilities covered by this Agreement, but after deduction therefrom refunds made in the normal course of
business and amounts paid for sales tax. Net proceeds from vending machines shall be included in gross
sales. All percentage payments provided hereunder shall be payable quarterly, not later than the thirtieth
(30th) day following the end of the first three (3) months of operation and the end of each three (3)
month period thereafter, and shall be based upon reports furnished by Operator to the County with such
payments. Operator shall furnish to the County within sixty (60) days after the closing of each calendar
year a report certified to by an officer of Operator, showing Operator's gross receipts during the
preceding calendar year, the amount of any accumulated prior deficiency in percentage payments, and
the net percentage payment, if any, owing hereunder for such period, provided that, if at the end of any
quarter it be determined that Operator has paid for said year to date a greater sum than would have been
payable under the provisions hereof for such excess payment.
IN WITNESS WHEREOF, EDWARD A. FULLER, President and Secretary of E. A. FULLER
OAK MANAGEMENT, CORPORATION, hereby acknowledges that he has authority to execute this
CONTRACT on behalf of E. A. FULLER OAK MANAGEMENT, CORPORATION, a Michigan
Corporation, and hereby accepts and binds E. A. FULLER OAK MANAGEMENT, CORPORATION, to
terms and conditions of this NINTH AMENDMENT TO CONCESSION AGREEMENT on this fourth
day of April, 1999.
3
WITNESSES: E. A
a
,LER OAK MANAGEMENT, CORP.
n Corporation/2
Pres
L J. SHA
Vice President
c4iii4
COUNTY OF OAKLAND, a Michigan Constitutional
Corporation, by its Statutory Agent, the Oakland
County Parks and Recreation Commission
RALPH RICHARD
Executive Officer
Z-Ls
ECKY LEWI
Chairman
4
TENTH AMENDMENT TO CONCESSION AGREEMENT
THIS TENTH AMENDMENT is attached to and made a part of a certain Concession Agreement
dated April 25, 1974, and revised on the fourth day of April. 1999, by and between the COUNTY OF
OAKLAND (hereafter "County"), a Michigan Constitutional Corporation, and E. A. FULLER OAK
MANAGEMENT CORPORATION (hereafter "Operator"), a Michigan Corporation.
The parties agree that the original CONCESSION AGREEMENT entered into between the
parties on April 25, 1974, and all nine (9) subsequent amendments thereto, shall continue and remain in
full force and effect except as modified herein and shall constitute the entire agreement between the
parties. E. A. FULLER OAK MANAGEMENT CORPORATION agrees that it shall assume all of the
responsibilities and burdens of the "OPERATOR" and/or "Laffrey, Werthruan and Fuller Restaurants
Inc.", its predecessor corporation, contained in the original CONCESSION AGR.EEMENT and all prior
amendments.
WITNES SETH:
A. Paragraph 13 of the Concession Agreement is amended to include the following
paragraph:
"Providing Operator shall not be in default under the terms and conditions of this
Agreement, it shall have the right at its option to extend the term of this Agreement for
an additional seven (7) year period, to commence on January 1,2009 and to expire
December 31, 2015: The percentages of the contract years under said extension are to be
renegotiated for the seven-year period of 2009-2015. The negotiations shall be
completed within the first ninety (90) days of the new seven -year period or the
Agreement becomes null and void."
1
B. Paragraph 4.2 of the Concession Agreement is hereby modified to substitute the
following therefore in its entirety:
4.2 Payments by Operator
Operator, in consideration of this Agreement, hereby covenants and agrees to pay to the County
the following sums, to-wit:
White_Lake Oaks
Operator shall pay rental of ten percent (10%) of total annual gross sales and twenty-five percent
(25%) of utility costs.
Addison Oaks Conference Center
Operator shall pay rental of eight percent (8%) of total annual gross sales and twenty-five
percent (25%) of utility costs.
Springfield Oaks Golf Clubhouse
Operator shall pay as rental ten percent (10%) of the total annual gross sales or one hundred
percent (100%) of utility costs, whichever is greater,
5pringfield Oaks Activities Center
Operator shall pay as rental ten percent (10%) of the total annual gross sales.
Addison Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total annual gross sales.
Waterford Oaks Activity Center
Operator shall pay as rental ten percent (10%) of the total annual gross sales,
Bed Oaks We Pool Comession Stand
Operator shall pay as rental eleven percent (11%) of the total annual gross sales and one hundred
percent (100%) of utility costs.
2
Waterford Oaks Wave Pool Concession Stand
Operator shall pay as rental eleven percent (I1%) of the total annual gross sales and one hundred
percent (100%) of the utility costs.
Groveland Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total annual gross sales.
Jndependence Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total annual gross sales.
Glen_Oaks Golf Clubhouse
Operator shall pay as rental thirteen and one-half percent (13.5%) of the total' annual gross sales
on the banquet facility, twelve percent (12%) of the total annual gross sales on the grill room facility and
fifty percent (50%) of the utility costs.
Lyon Oaks Golf Clubhouse
After completion of the clubhouse banquet facility, Operator shall pay as rental three percent
(3%) of the total annual gross sales up to $500,000 and thirteen and one-half percent (13.5%) of total
annual gross sales'over $500,000 on the banquet facility and grill room and twenty-five percent (25%) of
the utility costs through December 31, 2000; three percent (3%) of the total annual gross sales up to
$500,000 and thirteen and one-half percent (13.5%) of total annual gross sales over $500,000 on the
banquet facility and grill room and twenty-five percent (25%) of the utility costs through December 31,
2001; nine percent (9%) of the total annual gross sales up to $500,000 and thirteen and one-half percent
(13.5%) of total annual gross sales over $500,000 on the banquet facility and grill room and twenty-five
percent (25%) of the utility costs through December 31, 2002; twelve percent (12%) of the total annual
gross sales up to $500,000 and thirteen and one-half percent (13.5%) of total annual gross sales over
$500,000 on the banquet facility and grill room and twenty-five percent (25%) of the utility costs
through December 31,2003.
3
The term gross sales shall include the gross amount of all sales of every kind and description
made in, upon or resulting from the conduct of the business of Operator upon the various recreational
facilities covered by this Agreement, but after deduction therefrom refunds made in the normal course of
business and amounts paid for sales tax. Net proceeds from vending machines shall be included in gross
sales. All percentage payments provided hereunder shall be payable quarterly, not later than the thirtieth
(30th) day following the end of the first three (3) months of operation and the end of each three (3)
month period thereafter, and shall be based upon reports furnished by Operator to the County with such
payments. Operator shall furnish to the County within sixty (60) days after the closing of each calendar
year a report certified to by an officer of Operator, showing Operator's gross receipts during the
preceding calendar year, the amount of any accumulated prior deficiency in percentage payments, and
the net percentage payment, if any, owing hereunder for such period, provided that, if at the end of any
quarter it be determined that Operator has paid for said year to date a greater sum than would have been
payable under the provisions hereof for such excess payment.
IN WITNESS WHEREOF, EDWARD A. FULLER, President and Secretary of E. A. FULLER
OAK MANAGEMENT, CORPORATION, hereby acknowledges that he has authority to execute this
CONTRACT on behalf of E. A. FULLER OAK MANAGEMENT, CORPORATION, a Michigan
Corporahon, and hereby accepts and binds E. A. FULLER OAK MANAGEMENT, CORPORATION, to
terms and conditions of this NINTH AMENDMENT TO CONCESSION AGREEMENT on this fourth
day of April, 1999.
4
FUJA)ER OAK MANAGEMENT. CORP.
Corporation
nt and Secretary
Vice President
COUNTY OF OAKLAND, a Michigan Constitutional
Corporation, by its Statutory Agent, the Oakland
County Parks ansl Recreation Commission
FALCIY-"'D?L'EW1--S r, JR,
Chairman
RALPH RICHARD
Executive Officer
5
S500,000 and thirteen and one-half percent (13.5%) of total annual groiS sales over 5500,000 on the
banquet facility and grill room and twenty-five percent (25%) of the utility costs through December -31,
a .07
CC ,
3 •
:nine percent (9%) of the total annual gross sales up to S500;000 and thirteen and one-half percent
(13.5%) of total annual eross sales Over 5500,000 on the banquet facility and grill room and twenty-five
‘7-SA percent (25%) of the utility costs through December 31„ttf/(twelve percent (12%) of the total annual
-a• c,tt:Aa
Waterford Oaks Wave Poot Concession Stand
!.Operator shall pay as rental eleven percent (I I%) of the total annual gross sales and oat hundred
percent (100%) of the utility cots.
Gmveland Oaks Concession Stand
Operator shall pay as rental twelve percent (12%) of the total annual gross sales:
I ndeoendence Oaks Concession Stand
• Operator shall pay p rental twelve percent (12%) of the total annual gross sales.
Glen Oaks Golf Clubhouse ,
Operator shall pay as rental thirteen ahd one-half percent (13.5%) of the total annual gross sales
on the banquet facility, twelve percent (12%) of the total annual gro -ss sales on the grill room facility and
fifty percent (50%) of the utility costs. •
Lyon Oaks Golf Clubhous.-6-.,_
. After corriple—tion of the clubhouse banquet facility, Operator shall pay as rental three percent .
(3%) of the total annual gross sales up to 5500,000 and thirteen and one-half percent (13.5%) of total
annual gross sales over 5500,000 on the banquet facility and grill room and twenty 7five percent (25%) of
a rz-z./ ‘-stn . 4- •
the utility costs through December 31, 2-0•Gir three percent (3%) of the total anntial gross sales up to
gross sales up to 5500,000 and thirteen and one-hal percent (13.5%) of total annual gross sales over
5300.000 on the banquet facility and grill. room and twenty-tive percent (25%).of the utility costs
through December 317-24-3.
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3
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FISCAL NOTE (MISC. 106245) December 14, 2006
BY: Finance Committee, Chuck Moss, Chairperson
IN RE: PARKS AND RECREATION COMMISSION- LEASE WITH OAK MANAGEMENT
TO THE OAKLAND COUNTY BOARD OF COMMISSIONERS
Chairperson, Ladies and Gentlemen:
Pursuant to Rule XII-C of this Board, the Finance Committee has
reviewed the above referenced Miscellaneous Resolution and finds:
1. The Oakland County Parks and Recreation Commission has had a
Concessions Agreement with Oak Management, beginning April 25, 1974
and amended ten (10) times, with the last being April 14,1999.
2. Oakland County Parks and Recreation Commission requested an eleventh
amendment to the Concessions Agreement.
3. Corporation Council, in reviewing the eleventh amendment, determined
that the Concessions Agreement was in fact a "Lease Agreement".
4. Oakland County Parks and Recreation Commission requests that the
"Lease Agreement" be formally approved by the appropriate
committees and the Board of Commissioners.
5. The Parks and Recreation Commission also requests that the "Lease
Agreement" be acknowledged through December 31, 2015.
6. No budget amendment is required.
FINANCE COMMITTEE
CO-uk /1,6s-7
FINANCE COMMITTEE
Motion carried on a roll call vote with Rogers absent.
I HEREBY APPROVE THE FOR= 18101101
/ 21/0-4
Ruth Johnson, County Clerk
Resolution #06245 December 14, 2006
Moved by Molnar supported by Gregory the resolutions (with fiscal notes attached) on the Consent
Agenda, be adopted (with accompanying reports being accepted).
AYES: Coulter, Crawford, Douglas, Gershenson, Gregory, Hatchett, Jacobsen, Jamian, KowaII,
Long, Melton, Middleton, Molnar, Moss, Nash, Palmer, Potter, Rogers, Scott, Suarez, Wilson,
Zack, Bullard. (23)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the Consent
Agenda, were adopted (with accompanying reports being accepted).
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Ruth Johnson, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on
December 14, 2006, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County Oakland at Pontiac,
Michigan this 14th day of December, 2006.