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Res 08-97 RESOLUTION NO. 8-97 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AUTHORIZING EXECUTION OF A LEASE AGREEMENT WITH FLORIDA EAST COAST RAILWAY COMPANY FOR THE LEASE OF SIX PARCELS OF LAND ON THE RAILWAY'S RIGHT-OF-WAY AND PROPERTY IN DELRAY BEACH, FLORIDA; ACCEPTING THE TERMS AND CONDITIONS OF SAID LEASE AGREEMENT; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Delray Beach wishes to enter into an agreement with Florida East Coast Railway Company for the lease of six (6) parcels of land on the Railway's right-of-way and property in Delray Beach for the municipal purposes of parking, roadway, sidewalk and beautification. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the Mayor and City Clerk of the City of Delray Beach are hereby authorized to enter into a lease agreement between the Florida East Coast Railway Company and the City of Delray Beach, for the lease of six (6) of land for as Lessee, parcels parking, roadway, sidewalk and beautification, a copy of which is attached hereto and made a part hereof. Section 2. That the City Commission of the City of Delray Beach hereby approves and accepts the terms and conditions of the lease agreement between the Florida East Coast Railway Company and the City of Delray Beach, as hereinabove described. Section 3. That this resolution shall take effect immediately upon passage. PASSED AND ADOPTED in regular session on this the 21st day of January, 1997. ATTEST: J Cit~ ~erk / DO NOT REMOVE FROM AGREEMENT INSTRUCTIONS 1. Kindly have the appropriate authority sign ALL copies of the agreement on Page 8 , where indicated by check marks. Execution on behalf of the City/County should be ~,omplished by the authorized authority of the City or County. City or County Clerk should attest the agreement and indicate date of execution. 2. Have two (2) separate persons witness the signatures to the left thereof~ AFFIXING THE CITY/COUNTY SEAL. 3. Please verify the name and address on Page 1, making any necessary corrections, however, DO NOT alter or add to the provisions of this document. I/; for any reason, you cannot execute same in its present form, kindly remm to the undersigned with your comments in writing. 4. DO NOT INSERT EFFECTIVE DATE OF AGREEMENT ON PAGE 1. 5. Return ALL copies of the agreement to this office together with Resolution adopted by C/ty/Cotmty, authorizing execution and acceptance of agreement. When completed, one fully executed copy of' the agreement will be returned to you for your files upon completion of execution. 6. Failure to execute the agreement exactly as indicated above will result in rejection by our Law Department and require resubmission for proper execution. F'fle: }17-3-1 THIS LEASE, is effective this day of A.D. 19 , by and Imween FLORIDA EAST COAST P,.A~WAY COMPANY, he~'e~n~er called "Ra~lw&y" and CITY OF DEIA~Y BEACH. & Mtmic/pal Corporation of the State of Florida, whose address 310 S.E. 1st Street, Suite 4, Delray Beach, Florida 33483, hereinafter called "Lessee", WITNESSETH: That in consid~ ofthe covenants herein contained to be k~ and performed, Railway does hereby lease to said Lessee the following described property: Six Parcels of land on Railway's right of' way a~-d propmy at De~-ay Beach, Florida, more ~y described as follows: l~ared A: A rectangularly shaped parcel of land meamirng 25 feet, easterly arid westerly, by 400 feet, northerly and southerly, on Railway's easterly right of way with northwest corner of said parcel located 25 feet easterly from and aI right angles to a point located in thc centertine of Railway's main track 3,$$7 feet, more or less, southerly from Mile Post No. 316, as measured from Jacksonville, Florida; thence continue southerly parallel with and 25 feet distant easterly from centerline of said main Uack for a distance of 400 feet to a point; thence continue easterly, at right angles to aforesaid coup, for a distance of 25 feet lo Railway's easterly right of way limit; thence continue northerly, coinciding with Railway's easterly right ofway limit and parallel with the centerline of said main track for a distance of 400 feet; thence continue westerly at right angles to previously described course, for a distance of 25 feet to Point of Beginning. l~arcel B: parallelogram-shaped parcel of land meamiring 18 feet. east and west, by 1,275 feet, northerly ~nd southerly, on Railway's westerly right of way with northeast comer of said parcel io~ated 32 feet distant westerly from and at fight angles to a point in the centedine of Railway's main wac, k, 3,107 feet, more or less, southerly from Mile Post No. 316, a,s measured from ilacksonville, Florida; thence continue southerly, parallel with and 32 feet distant westerly from centerline of said main uack, for a distance of 1,275 feet; thence continue west for a distance of 18 feet to Railway's westerly right of way limit; thence contime nonherly gong said westerly right of way limit for a distance of 1,275 feet to a point; thence continue east for a distance of 18 feet to said Point of Ftle: 317-3-1 Page TO HAVE AND TO HOLD the hereby leased property: For the term of one (1) year fi.om the effective date hereof subject to renewal as provided in paragraph D hereof; or until terminated as hereinafter provided. LESSEE COVENANTS TO PAY RENTAL AS FO~J.OWS: An annual rental of $5,900.00, plus Florida Sales and Use Tax, payable in cash upon the execution and delivery of this lease, and if renewed, the same amount in cash in advance for each and every year thereafter until terminated. All rentals for initial and renewal terms are payable in cash on the date specifi~ in advance, without oral or written demand. Lessee hereby expressly waiving such demand. LESSEE AND RAH.WAY COVENANT AS FOLLOWS: A. In the event of termination of this lease by Railway before the expiration of the initial or any renewal terms, any rental paid in advance unearned shall be returned to Lessee, less any amounts owing to Railway under this lease. B. That none of the provisions hereof shall be waived or modified, except by Railway, or by mutual agreement, in writing, and no alleged verbal or written inducement prior to execution nor subsequent verbal waiver, or modification, shall be binding under any circumstances. Further, that this lease constitutes the entire understanding of the parties and that neither the failure of the Railway to enforce each and every provision, nor any course of conduct by the Railway shall be considered as a waiver of these provisions. C. Either party may, in its discretion, for any reason whatsoever, terminate this lease at any time by the giving of notice to the other party as hereinafter provided. If this lease is for a term of one or more years, then 30 days prior notice in writing of the intention of the party to terminate this lease shall be given tO the other party. If this lease is for any term less than one year, then 10 days prior notice in writing of the intention of the party to terminate this lease shall be given to the other · party, PROVIDED, HOWEVER, Railway may, at its option, terminate this lease for any default or breach of lessee by giving 2 days notice in writing of such termination to the lessee. Any notice of termination shall be delivered to the other party by placing such notice in the United States mail with s~fficient postage directed to the other party's post office address, either as last furnished to the terminating party or as otherwise known to it. D. If Lessee holds over and remains in possession of the hereby leased property aider the ~piration of the term specified in this lease, or any renewals of such term, this lease shall be considered as renewed for one (1) year, subject to the same terms and conditions as herein contained in this lease. That Lessee shall have no expectation of renewal and that the term of'this lease is only for the time specified herein, subject always to the termination provisions and regardiess of the length Page ° · of lime that Lessee has occupied the leased property, or the construction by Lessee of any buildings, ~ works, paving, barricades or personal property placed thereon. E. That if' any provision or provisions of this lease shall be held to be invalid, illegal or une~orceable, the validity, ieglg~ and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 1;. Thai Lessee shall use the leased properly only/'or: Parcel A - Parking Parcel D -Parking Parcel B - Roadway Parcel E - Beautification Parcel C - Sidewalk Parcel F - Beautification AND LESSEE COVENANTS WITH RAILWAY AS FOLLOWS: 1. To keep the leased property and any bu/ldin~s or other structure, now or hereafter erected therem~, in good condition and repak at Lessee's own expense during the existence of'this lease, and to keep the leased property or premises free and clear of any and all t~'ass, weeds, brush and debris of any Idnct, so as to prevent the same becoming dangerous, inflammable or objectionable. Railway shall have no duty to inspect or maintain any of the leased properly, buildings, or other structures, ii'any, during the term of this lease. ii. To vacate, quit and deliver up the leased property on or before any termination date of this lease in as good condition as it is now. 3. Not to erect or cause to be erected any building or other structure, or any addition to exisfin~ buildin~ or structures on the leased properly without f~rst obtaining the approval in writing by Railway of the location, material and construction of the same. 4. Not to sublet the leased property or any part thereof; nor assign this lease, without the consent in writing of Railway, this lease being executed by Railway upon the credit and reputation of Lessee. Acceptance by Railway of rental from a third party shall not be considered as an :~. Not to take any action or allow any action to be taken by third parties which will interfere with or dispara~e Railway's title to the leased property. 6. Not to permit the use of the leased property in any manner that will obstruct or interfere with the operation of the Railway, or use of its properly. Page 7. Not to make or suffer any waste or any unlawful, improper, or offensive use of the leased property or premises, or any use disapproved by Railway. $. To the ex'tent allowed by law, and subject to the limitations of Florida State Statutes 768.28, to indemnify, save and hold harmless Railway, its agents, servants and employees fi.om and agah~ all loss, claims, costs charges, expense, suits, damage and judgments, which they may suffer, sustain or in anywise be subjected to, or for which it may be held liable on account of the death, personal injuries, damage or loss to any person or persons, including employs, s, agents and officers of Ra~way and of Lessee, directly or indirectly arising out of or on account of the leasing to or use of the property by Lessee; whether due or claimed to be due by the joint negligence of Railway, its employees, agents or servants, or other~vise. 9. To the extent allowed by law, and subject to the limitations of Florida Statutes 768.28, to indemnify, save and hold harmless Railway, its agents, servants and employees from and against all loss, claims, costs, charges, expense, suits, damage and judgments, which they may suffer, sustain or in anywise be subjected to, or for which it may be held liable on account of any loss or damage caused in any manner to any of Lessee's buildings, stmc~res, works and any personal property whatsoever of Lessee, situated, placed, kept or stored on, in or near the property or premises hereby leased, as well as on account of loss or damage to any personal property whatsoever, not owned by Lessee, whether owned by Railway or by ol~ers, arising directly or indirectly out of or on account of the leasing to or use by Lessee of the property hereby leased; whether due or claimed to be due by the joint negligence of Railway, its employees, agents or servants or otherwise. I0. To the extent allowed by law, and subject to the limitations of Florida Statutes 768.28, to indemnify Railway for all loss, claims, damage, costs and expenses, including attorneys' fees and environmental cleanup costs arising fi.om Lessee's presence upon or use of the leased premises which causes the premises to become contaminated by toxic or b,Tardous substances or wastes above levels which exceed the allowable levels as set forth in local, state or federal laws and regulations. Railway shall have the right, at reasonable times during the term of this Lease, upon prior notice to Lessee and accompanied by a representative of Lessee (except in cases of emergency) to enter the leased property, including any building or structure that may at any time be on the leased property, for the purpose of examining and inspecting the condition of the leased property and to ensure Lessee's compliance with the terms and conditions of this Lease. 11. To be resporm'ble for and pay Railway the actual cost and expense Railway may incur in paying for, repairing or replacing any engines, cars, rail material, cross-ties, equipment, tools, machinery, fi.eight or other property whatsoever, either owned or in possession of Railway, lost or damaged by any default by Lessee hereunder, or negligence, Amrmative act, or omission of Lessee. 12. To perform, at the sole expense of Lessee, all work required in the preparation of the property or premises hereby leased for occupancy by Lessee, in the absence of any special provision herein contained to the contrary; and Lessee does hereby accept the leased property or premises as now being in fit and tenantable condition for all purposes of Lessee. Page 4 13. To pay, within thirty (30) days alter presentation unto Lessee by Railway of bills for the same, gl special assessments, ad valorem taxes, and any other taxes of whatsoever kind or nature levied by the United States of America, State of Florida, any county, municipality or special taxing district organized and existing under the laws ofthe State of Florida, upon any of the property or praises herein leased. All taxes and special assessments, payable on an annual basis, are to be pro° rated by the parties hereto for the year during which thi's lease is made, as well as the year in which the same may be terminated. 14. To pay in the same manner as provided in Paragraph 13 hereof; the amount of any necessary doctunentary stamp taxes required to be al~ed to this lease under the laws of the United States of.America, the State of Florida, or both. 15. To pay, either directly or upon bills presented unto Lessee by Railway within thirty (30) days after presentation of the same, all bills for electricity for lighting or power, gas, water, telephone and telegraph services, or the proportionate part of the same used by Lessee upon or in the leased property or premises. 16. That it will indemnify, save and hold harmless Railway from any loss, claim or damage which Lessee may sustain arising directly or indirectly by reason of either existing or future zoning or other regulations promulgated by any governmental agency which may adversely affect use by Lessee of the lands hereinabove described, and Lessee shall assume all responsibility for procuring or complying with any ordinance, resolution, order, permit, consent or other such regulation, promul~ted by any governmental agency whatsoever, for building or otherwise, required for the use of the premises hereinabove described or for the construction of any facilities upon such premises. 17. That it shall not permit others to use the whole or any part of the leased property or premises, except under and in compliance with the terms and conditions of this lease, and Lessee shall hold Railway harmless as to any such use. 18. That none of the provisions of Paragraph "A" hereof shall be construed as any waiver by Railway of any landlord's lien or liens of Railway upon any personal property, buildings or structures of Lessee, for any rental due or to become due hereunder unto Railway, and Lessee shall not remove any such structures, buddings or personal property from the here'mabove described premises, unless . and until all rentals and any other sum of money herein specified to be paid the Railway shall have been fully paid unto Railway. 19. That Lessee shall remove any buildings, structures, works or personal property upon the leased property or premises, including any such items placed upon the leased property or premises subsequent to the date of this lease on or before any termination date ofthis lease, upon request from the ~y to do so, and in default thereof~, such property shall become the property of the Railway. PROVIDED, HOWEVER, Railway may, at its option cause removal oftbe same fi'om the hereby Page 5 leased property or premises and/or storage thereof, and storage of any of Lessee's property and property of others, placed by or with Lessee's permission or sufferance on the hereby leased property or premises. The reasonable cost or expense of removal and/or storage of any buildings, structures, works or personal property shall be paid by Lessee unto Railway forthwith upon demand for same. 20. That is waives and relinquishes any legal fights and monetary claims which it might have fca'full compensation, or damages of any sort, including but not limited to special damages, severance dm'aages, removal costs or loss of business profits resulting fi.om its loss of occupancy of the.leased properly specified in this agreement, or adjacent properties owned or leased by it, when any or all of such properties are taken by eminent domain proceedings or sold under the threat thereof. That this waiver and relinquishment applies whether (1) this lease is in existence on the date of taking or sale; or (2) has been terminated prior thereto. 21. Tim it is expressly agreed by and between the parties hereto that any obligations of the Lessee under the terms of this agreement which are not paid within thirty (30) days of presentation of bills for same by Railway shall bear interest at the rate of twelve per cent (12%) per annum compounded annually fi.om the date of presentation of the bill until same shall be paid. It is further expressly agreed that in the event Railway shall institute and prevail in any action or suit for the enforcement of any of its rights under the provisions of this agreement, Lessee will pay to Railway a reasonable attorney's fee on account thereof. Also in the event of litigation, the parties agree that the laws of the State of Florida will apply. In an action to enforce any of the provisions ofthis agreement, the parties hereto specifically agree that venue shall lie in St. Johns County, Florida. 22. That its facilities and operations on the herein leased area shall conform to all applicable regulations and ordinances of any govemrnemal agency having jurisdiction thereof. 23. That, at its expense, it will install and maintain facilities to prevent accumulation of surface water, industrial liquids, solid waste matter and sanitary waste resulting fi.om Lessee's operations within the herein leased area. Such facilities to be approved by the Railway and any other governmental agency having jurisdiction thereof. :24. Should any portion of the property described in this lease be used for the loading, unloading or storage ofb,7~rdous materials, the Lessee shall (1) be solely responsible for ascertaining that local, state and federal laws, ordinances and regulations do not prohibit the loading, unloading or storage ofbsT~rdous materials on the leased property and (2) be solely responsible as between the Railway and the Lessee, for complying with all of the foregoing laws, ordinances and regulations which affect or regulate the loading, unloading or storage operations of hazardous materials on this leased property. -. Page 25. It is understood between the parties hereto that Railway reserves unt° itself, its successors, permktees, licensees, or other persons, the right to construct and maintain other facilities, including but not limited to, pipelines and/or communication cables, over and across the Railway's ) affected herein leased property, and further, that Lessee shah take no measures to interfere with the construction or maintenance of said facilities and shall at all times allow ingress and egress to the herein leased property by said successors, pern~.'ttees, licensees or other persons. 26. Lessee will do no grading on sai. 'd leased ground space that will in any manner interfere with the Railway's roadbed or other facilities. 27. Lessee is specifically notified that its personnel may be working in an area containing buried active fiber-optic transmission cables as well as other cables and other facilities. C-re, at care will be taken by the Lessee to ensure that no damage is done to those cables and facilities. However, ifa cable or other facility is damaged or cut, Lessee agrees to indemni~ Railway for any monetary damages which may result. 28. Lessee agrees that no plants, shrubbery, or other vegetation that would obstruct the view of motor vehicles or train crews using a crossing at grade, or interfere with the operation of trains, will be placed on the above described property; in addition to the above restriction, no plants, shrubbery or other vegetation having a height of more than two feet (2') will be placed within two hundred fit~ feet (250') of any at grade street crossing, and if such vegetation exceeds two feet (2') in height, the Railway may trim such vegetation to a two foot (27 height at Lessee's expense; that said plants, shrubbery or other vegetation shall be trimmed by the Lessee so as to maintain a distance from the centerline of the nearest track of twenty-five feet (25') and if such vegetation is closer than twenty-five feet (25') from the centerline of the nearest track, the Railway may trim or remove such vegetation so that no vegetation is within twenty-five feet (25') of the centerline of the nearest track at Lessee's expense. However, th/s restriction in no way limits the indemnification provisions of this lease as set forth in Paragraphs 8 and 9 hereof'. Also, no plants, shrubbery or other vegetation of a hazardous nature that might produce injury to any person coming in contact with said plants, shrubbery or other vegetation will be placed upon said property of Railway by the Lessee. The placement of any wells by the Lessee on the property of the Railway is strictly prohibited. 29. Lessee recognizes ownership of said property by the Railway and Lessee has no intention of setting up any claim of ownership to the herein leased properties. 30. Lessee shall, at its sole cost and expense, install, maintain, and/or replace such barricades and bumping blocks, as required by the Railway, to prevent automobiles from being parked or rolling beyond the space hereby leased. In the event Lessee does not maintain, and/or replace said barricades or bumping blocks to prevent automobiles from being parked or rolling beyond the space hereby leased within thirty (30) days after notification by Railway, then, in that event, this lease agreement shall be canceled and Lessee shall immediately vacate the property. 3 I. This agreement cancels and supersedes that certain Lease Agreement by and between the parties hereto, dated January 9, 1991, covering the hereinabove described property. Page 7 IN WITNESS WHEREOF, the parties hereto have caused these presents to be duly executed under the seal. Signed, sealed and delivered FLORIDA EAST COAST RAILWAY in the presence of~ COMPANY, a Florida Corporation By:, .(SEAL) C. F. Zellers, Jr., President Attest: Wimesses as to Railway Mary C. Mueller, Assistant Secretary Date of Execution: CITY OF DELRAY BEACH a Municipal Corporation of the State of Florida ~By: (SEAL) Wimess as to Lessee Mayor Name), ,....(Print Name), .,,Attest; ~Witness as to Lessee City Clerk /Cf~t Hame) ~q'Tiat ~ame), ./Date of Execution: /' Approved as lo Form: Page 8 MEMORANDUM TO: MAYOR AND CITY COMMISSIONERS FROM: CITY MANAGER ~[~ SUBJECT: AGENDA ITEM # ~ ~- REGULAR MEETING OF JANUARY 21, 1997 RESOLUTION NO. 8-97/LEASE AGREEMENT WITH FLORIDA EAST COAST RAILWAY COMPANY DATE: JANUARY 17, 1997 This is before the Commission to consider approval of an agreement with Florida East Coast Railway Company for the lease of six FEC properties for parking, roadway, sidewalk and beautification purposes. A portion of land which had been a part of Parcel "C" is being sold to Mouw Plaza, L.C. and will be included as part of that development planned for the northwest corner of S.E. 3rd Avenue and S.E. 1st Street. The City's lease on this land has been assigned to the new land owner (Mouw). The proposed lease agreement with FEC reflects the amended legal description as well as a decrease in the total annual cost of the lease by $100.00 (from $6,000.00 to $5,900.00). The agreement has been reviewed by the City Attorney's Office. Attached is a memorandum from Mr. Tolces which expresses a concern. I recommend that the lease agreement with the FEC Railway Company be approved by adoption of Resolution No. 8-97. ref:agmemol0 £1lV OF DELRnY BENCH ...... ........ , Writer's Direct Line: (561) 243-70~ D~kRAY B~AEH Ali. America Ci~ ~MO~~ 9, 99 1993 TO: David T. Harden, Ci~ Manager FROM: David N. Tolces, Assistant Ci~ Attorn~ SUBJECT: Lease Agreement with FEC Railway Company I reviewed the proposed lease agreement and have one concern. Paragraph 21 on Page 6 states that venue for any lawsuit will be in St. Johns County. Typically, under Florida law, a municipality may only be sued in the county in which it resides. If the City were to agree to paragraph 21, it is possible that the City would be waiving its right to assert that venue must be in Palm Beach County. While this is not a major contractual issue, in the event of a lawsuit, travelling to St. Johns County could become an inconvenience and added expense. This agreement must also be approved by the City Commission. Please let me know your thoughts, and if you have any questions, please call. DNT:smk fec.dnt Pr,'ntecl o,'~ R~cycled Pap~?r FLORIDA EAST COAST RAILWAY COMPANY ONE ~-.ALAGA STREET, P. O. BOX 1048, ST. AUGUSTINE, FLORIDA 32085-1048 Tcicphone (904) 826-2269 FAX (904) g26-2322 December 30, 1996 File: 317-3-1 DELRAY BEACH: Lease of 6 Parcels for Parking, Roadway, Sidewalk, Beautification MP 316 + 3857'+ Mr. David T. Harden, Manager City of Delray Beach 100 N. W. 1st Avenue Delray Beach, FL 33444-2698 Dear Mr. Harden: Enclosed for your handling for execution are duplicate originals of Lease Agreement covering the lease of space as captioned above. The current lease agreement is being revised due to sale of a portion of land which has been a part of"Parcel C". This portion of your lease has been assigned to the new land owner, MOUW Plaza, L.C., whose address is 102 North Swinton Avenue, Delray Beach, Florida 33444. Kindly handle for execution in accordance with instructions attached to the agreemem, returning the duplicate originals to this office for completion, aider which one fully executed agreement will be returned to you for your file. Your prompt handling and remm is requested. Sincerely yours, In~tus;rial gE)e/;e~egne/& R~al Estate MOB/EVA/ver Enclosures cc: Mr. R. J. Jones DO NOT REMOVE FROM AGREEMENT INSTRUCTIONS 1. Kindly have the appropriate authority sign ALL copies of the agreement on Page 8 , where indicated by check marks. Execution on behalf of the City/County should be accomplished by the authorized authority of the City or County. City or County Clerk should attest the agreement and indicate date of execution. 2. Have two (2) separate persons witness the signatures to the leit thereof, AFFIXING THE CITY/COUNTY SEAL. 3. Please verify the name and address on Page 1, making any necessary corrections, however, DO NOT alter or add to the provisions of this document. If, for any reason, you cannot execute same in its present form, kindly return to the undersigned with your comments in writing. 4. DO NOT INSERT EFFECTIVE DATE OF AGREEMENT ON PAGE 1. 5. Retum ALL copies of the agreement to this office together with Resolution adopted by City/County, authorizing execution and acceptance of agreement. When completed, one fully executed copy of the agreement will be returned to you for your files upon completion of execution. 6. Failure to execute the agreement exactly as indicated above will result in rejection by our Law Department and require resubmission for proper execution. File: 317-3-1 JAM 17 '9? 14:56 FEC ST.AUGUSTINE, FL - P.~ THIS LEASE, is eff~tiv¢ this day of A.D. 19 ., by and between FLORIDA EAST COAST RAILwAy COMPANY, hereinafter called "Railway~ and CITY OF DELRAY BEACH, a Municipal Corporation of the State of Florida, whose address is 310 S.E. 1st Street, Suite 4, Delray Beach, Florida 33483, hereinatter called "Lessee", WITNESSETH: That in consideration of the covenants herein contained to be kept and performed, Railway does hereby lease to said Lessee the following described property: Six Parcels of land on Railway's right of way and property at Delray Beach, Florida, more particularly described as follows: Parcel A: A rectangularly shaped parcel of land measuirng 25 feet, easterly and westerly, by 400 feet, northerly and southerly, on Railway's easterly right of way with northwest comer of said parcel located 25 feet easterly from and at right angles to a point located in the centerline of Railway's main track 3,g57 feet, more or less, southerly from Mile Post 1'4o. 316, as measured from SacksonviHe, Florida; thence continue southerly parallel with and 25 feet distant easterly from centefline of said main track for a distance of 400 feet to a point; thence continue easterly, at right angles to aforesaid course, for a distance of 25 feet to Railway's easterly right ofway limit; thence continue northerly, coinciding with Railway's easterly right of way limit and parallel with the centerline of said main track for a distance of 400 feet; thence continue westerly at fight angles to previously described course, for a distance of 25 feet to Point of Beginning. Parcel B: parallelogram-shaped parcel of land measuiring 18 feet, east and west, by 1,275 feet, northerly and southerly, on Railway's westerly fight of way with northeast comer of said parcel located 32 feet distant westerly from and at right angles to a point in the centerline of Railway's main track, 3,107 feet, more or less, southerly fi.om Mile Post No. 316, as measured from Sacksonville, Florida; thence continue southerly, parallel with and 32 feet distant westerly fi.om centerline of said main track, for a distance of 1,275 feet; thence continue west for a distance of 18 feet to Railway's westerly right of way limit; thence continue northerly along said westerly right of way limit for a distance of 1,275 feet to a point; thence continue east for a distance of 18 feet to said Point of S29~l_ File: 317-3-1 Pa~e I Parcel C: A 5 foot strip of land on Railway's easterly right of way with easterly line of said parcel commencing at a point on Railway's easterly fight of way limit 5,045 feet southerly fi.om Railway's Mile Post No. 316, as measured fi.om Jacksonville, Florida, with easterly line continuing southerly and coinciding with Railway's easterly right of way limit a distance of 675 feet, more or less, said easterly line also being the westerly line of S.E. 3rd Avenue, Delray Beach, Florida; southerly line of said parcel having a length of 5 feet coinciding with the northerly line of S.E. 2nd Street, Delray Beach, Florida, at right angles to said easterly line, westerly line of said parcel being 5 feet distant westerly from and parallel with said easterly line, with northerly line having a length of 5 feet and being parallel with and 675 feet, more or less, distant northerly fi.om said southerly line. Parcel D: A parcel of land on the station grounds of the Railway on the easterly side of its tracks south of S.E. First Street at Delray Beach, Florida, with northerly line being 80 feet in length coinciding with the south line of S.E. First Street and intersecting the centerline of the main track of the Railway at a point located 5,121 feet, more or less, southerly fi.om the Railway's Mile Post No. 316 fi.om Jacksonville, Florida, easterly line being 190 feet in length coinciding with the easterly limit of the said property of the Railway which is also the westerly line of S.E. Third Avenue, southerly line being 125 feet, more or less, in length and located parallel with said northerly line and westerly line being 195 feet, more or less, in length. Parcel E: A rectangularly-shaped parcel of land on the easterly side of Rallway's right of way for its main track, with said parcel being 25 feet in width, easterly and westerly, by 1,270 feet, more or less, in length, northerly and southerly, with easterly limit of said parcel of ground space coinciding with the Railway's easterly fight of way line, westerly limit being parallel with and 25 feet distant easterly of the centerline of the Railway's main track and northefiy limit being located 505 feet, more or less, southerly fi.om Railway's Mile Post No. 317 fi.om Jacksonville, Florida. Parcel F: A parcel of land on the westerly side of Railway's right of way for its main track at Delray Beach, Florida, more particularly described as follows: Beginning at a point located 4,450 feet, more or less, southerly from Railway's Mile Post No. 317 from Jacksonville, Florida, and 28 feet westerly of the centerline of Railway's main track; thence extending southerly parallel with and 28 feet distant westerly fi.om the centerline of Railway's main track for a distance of 460 feet, more or less, to a point located 8 feet distant northerly of the north line of Swinton Avenue, as measured at right angles therefi.om; thence westerly parallel with and 8 feet distant northerly fi.om the north line of Swinton Avenue, as measured at fight angles therefrom, thence westerly parallel with and 8 feet distant northerly of said north line of Swinton Avenue for 30 feet, more or less, to Railway's westerly right of way line; thence northerly along said westerly right of way line for 430 feet, more or less; thence easterly for said westerly right of way line for 430 feet, more or less; thence easterly for 23 feet, more less, to Point of Beginning. All as shown on Railway's Drawings A-1277-& A-1277-B, and A-1277-C, dated 11/29/96, attached hereto and made a part hereof. Page 1-A TO HAVE AND TO HOLD the hereby leased property: For the term of one (1) year from the effective date hereof subject to renewal as provided in paragraph D hereof, or until terminated as hereinafter provided. LESSEE COVENANTS TO PAY RENTAL AS FOLLOWS: An annual rental of $5,900.00, plus Florida Sales and Use Tax, payable in cash upon the execution and delivery of this lease, and if renewed, the same amount in cash in advance for each and every year thereatter until terminated. All rentals for initial and renewal terms are payable in cash on the date specified, in advance, without oral or written demand. Lessee hereby expressly waiving such demand. LESSEE AND RAILWAY COVENANT AS FOLLOWS: A. In the event of termination of this lease by Railway before the expiration of the initial or any renewal terms, any rental paid in advance unearned shall be returned to Lessee, less any amounts owing to Railway under this lease. B. That none of the provisions hereof shall be waived or modified, except by Railway, or by mutual agreement, in writing, and no alleged verbal or written inducement prior to execution nor subsequent verbal waiver, or modification, shall be binding under any circumstances. Further, that this lease constitutes the entire understanding of the parties and that neither the failure of the Railway to enforce each and every provision, nor any course of conduct by the Railway shall be considered as a waiver of these provisions. C. Either party may, in its discretion, for any reason whatsoever, terminate this lease at any time by the giving of notice to the other party as hereinai~er provided. If this lease is for a term of one or more years, then 30 days prior notice in writing of the intention of the party to terminate this lease shall be given to the other party. If this lease is for any term less than one year, then 10 days prior notice in writing of the intention of the party to terminate this lease shall be given to the other party; PROVIDED, HOWEVER, Railway may, at its option, terminate this lease for any default or breach of lessee by giving 2 days notice in writing of such termination to the lessee. Any notice of termination shall be delivered to the other party by placing such notice in the United States mail with sufficient postage directed to the other party's post office address, either as last furnished to the terminating party or as otherwise known to it. D. If Lessee holds over and remains in possession of the hereby leased property after the expiration of the term specified in this lease, or any renewals of such term, this lease shall be considered as renewed for one (1) year, subject to the same terms and conditions as herein contained in this lease. That Lessee shall have no expectation of renewal and that the term of this lease is only for the time specified herein, subject always to the termination provisions and regardless of the length Page 2 of time that Lessee has occupied the leased property, or the construction by Lessee of any buildings, structures, works, paving, barricades or personal property placed thereon. E. That if any provision or provisions of this lease shall be held to be invalid, illegal or unenforceable, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. F. That Lessee shall use the leased property only for: Parcel A - Parking Parcel D -Parking Parcel B - Roadway Parcel E - Beautification Parcel C - Sidewalk Parcel F - Beautification AND LESSEE COVENANTS WITH RAILWAY AS FOLLOWS: 1. To keep the leased property and any buildings or other structure, now or hereafter erected thereon, in good condition and repair at Lessee's own expense during the existence of this lease, and to keep the leased property or premises free and clear of any and all grass, weeds, brash and debris of any kind, so as to prevent the same becoming dangerous, inflammable or objectionable. Railway shall have no duty to inspect or maintain any of the leased property, buildings, or other structures, if any, during the term of this lease. 2. To vacate, quit and deliver up the leased property on or before any termination date of this lease in as good condition as it is now. 3. Not to erect or cause to be erected any building or other structure, or any addition to existing buildings or structures on the leased property without first obtaining the approval in writing by Railway of the location, material and construction of the same. 4. Not to sublet the leased property or any part thereof, nor assign this lease, without the consent in writing of Railway, this lease being executed by Railway upon the credit and reputation of Lessee. Acceptance by Railway of rental from a third party shall not be considered as an assignment. 5. Not to take any action or allow any action to be taken by third parties which will interfere with or disparage Kailway's title to the leased property. 6. Not to permit the use of the leased property in any manner that will obstruct or interfere with the operation of the Railway, or use of its property. Page 3 7. Not to make or suffer any waste or any unlawful, improper, or offensive use of the leased property or premises, or any use disapproved by Railway. 8. To the extent allowed by law, and subject to the limitations of Florida State Statutes 768.28, to indemnify, save and hold harmless Railway, its agents, servants and employees from and against all loss, claims, costs charges, expense, suits, damage and judgments, which they may suffer, sustain or in anywise be subjected to, or for which it may be held liable on account of the death, personal injuries, damage or loss to any person or persons, including employees, agents and officers of Railway and of Lessee, directly or indirectly arising out of or on account of the leasing to or use of the property by Lessee; whether due or claimed to be due by the joint negligence of Railway, its employees, agents or servants, or otherwise. 9. To the extent allowed by law, and subject to the limitations of Florida Statutes 768.28, to indemnify, save and hold harmless Railway, its agents, servants and employees from and against all loss, claims, costs, charges, expense, suits, damage and judgments, which they may suffer, sustain or in anywise be subjected to, or for which it may be held liable on account of any loss or damage caused in any manner to any of Lessee's buildings, structures, works and any personal property whatsoever of Lessee, situated, placed, kept or stored on, in or near the property or premises hereby leased, as well as on account of loss or damage to any personal property whatsoever, not owned by Lessee, whether owned by Railway or by others, arising directly or indirectly out of or on account of the leasing to or use by Lessee of the property hereby leased; whether due or claimed to be due by the joint negligence of Railway, its employees, agents or servants or otherwise. 10. To the extent allowed by law, and subject to the limitations of Florida Statutes 768.28, to indemnify Railway for all loss, claims, damage, costs and expenses, including attorneys' fees and environmental cleanup costs arising fi'om Lessee's presence upon or use of the leased premises which causes the premises to become contaminated by toxic or hazardous substances or wastes above levels which exceed the allowable levels as set forth in local, state or federal laws and regulations. Railway shall have the right, at reasonable times during the term of this Lease, upon prior notice to Lessee and accompanied by a representative of Lessee (except in cases of emergency) to enter the leased property, including any building or structure that may at any time be on the leased property, for the purpose of examining and inspecting the condition of the leased property and to ensure Lessee's compliance with the terms and conditions of this Lease. 11. To be responsible for and pay Railway the actual cost and expense Railway may incur in paying for, repairing or replacing any engines, cars, rail material, cross-ties, equipment, tools, machinery, freight or other property whatsoever, either owned or in possession of Railway, lost or damaged by any default by Lessee hereunder, or negligence, affirmative act, or omission of Lessee. 12. To perform, at the sole expense of Lessee, ail work required in the preparation of the property or premises hereby leased for occupancy by Lessee, in the absence of any special provision herein contained to the contrary; and Lessee does hereby accept the leased property or premises as now being in fit and tenantable condition for all purposes of Lessee. Page 4 13. To pay, within thirty (30) days a_~er presentation unto Lessee by Railway of bills for the same, all special assessments, ad valorem taxes, and any other taxes of whatsoever kind or nature levied by the United States of America, State of Florida, any county, municipality or special taxing district organized and existing under the laws of the State of Florida, upon any of the property or premises herein leased. Ail taxes and special assessments, payable on an annual basis, are to be pro- rated by the parties hereto for the year during which this lease is made, as well as the year in which the same may be terminated. 14. To pay in the same manner as provided in Paragraph 13 hereof, the amount of any necessary documentary stamp taxes required to be affixed to this lease under the laws of the United States of America, the State of Florida, or both. 15. To pay, either directly or upon bills presented unto Lessee by Railway within thirty (30) days after presentation of the same, all bills for electricity for lighting or power, gas, water, telephone and telegraph services, or the proportionate part of the same used by Lessee upon or in the leased property or premises. 16. That it will indemnify, save and hold harmless Railway from any loss, claim or damage which Lessee may sustain arising directly or indirectly by reason of either existing or future zoning or other regulations promulgated by any governmental agency which may adversely affect use by Lessee of the lands hereinabove described, and Lessee shall assume all responsibility for procuring or complying with any ordinance, resolution, order, permit, consent or other such regulation, promulgated by any governmental agency whatsoever, for building or otherwise, required for the use of the premises hereinabove described or for the construction of any facilities upon such premises. 17. That it shall not permit others to use the whole or any part of the leased property or premises, except under and in compliance with the terms and conditions of this lease, and Lessee shall hold Railway harmless as to any such use. 18. That none of the provisions of Paragraph "A" hereof shall be construed as any waiver by Railway of any landlord's lien or liens of Railway upon any personal property, buildings or structures of Lessee, for any rental due or to become due hereunder unto Railway, and Lessee shall not remove any such structures, buildings or personal property from the hereinabove described premises, unless and until all rentals and any other sum of money herein specified to be paid the Railway shall have been fully paid unto Railway. 19. That Lessee shall remove any buildings, structures, works or personal property upon the leased property or premises, including any such items placed upon the leased property or premises subsequent to the date of this lease on or before any termination date of this lease, upon request from the Railway to do so, and in default thereof; such property shall become the property of the Railway. PROVIDED, HOWEVER, Railway may, at its option cause removal of the same from the hereby Page 5 leased property or premises and/or storage thereof, and storage of any of Lessee's property and property of others, placed by or with Lessee's permission or sufferance on the hereby leased property or premises. The reasonable cost or expense of removal and/or storage of any buildings, structures, works or personal property shall be paid by Lessee unto Railway forthwith upon demand for same. 20. That is waives and relinquishes any legal rights and monetary claims which it might have for full compensation, or damages of any sort, including but not limited to special damages, severance damages, removal costs or loss of business profits resulting from its loss of occupancy of the.leased property specified in this agreement, or adjacent properties owned or leased by it, when any or all of such properties are taken by eminent domain proceedings or sold under the threat thereof. That this waiver and relinquishment applies whether (1) this lease is in existence on the date of taking or sale; or (2) has been terminated prior thereto. 21. That it is expressly agreed by and between the parties hereto that any obligations of the Lessee under the terms of this agreement which are not paid within thirty (30) days of presentation of bills for same by Railway shall bear interest at the rate of twelve per cent (12%) per annum compounded annually from the date of presentation of the bill until same shall be paid. It is further expressly agreed that in the event Railway shall institute and prevail in any action or suit for the enforcement of any of its rights under the provisions of this agreement, Lessee will pay to Railway a reasonable attorney's fee on account thereof. Also in the event of litigation, the parties agree that the laws of the State of Florida will apply. In an action to enforce any of the provisions of this agreement, the parties hereto specifically agree that venue shall lie in St. Johns County, Florida. 22. That its facilities and operations on the herein leased area shall conform to all applicable regulations and ordinances of any governmental agency having jurisdiction thereof. 23. That, at its expense, it will install and maintain facilities to prevent accumulation of surface water, industrial liquids, solid waste matter and sanitary waste resulting from Lessee's operations within the herein leased area. Such facilities to be approved by the Railway and any other governmental agency having jurisdiction thereof. 24. Should any portion of the property described in this lease be used for the loading, unloading or storage of hazardous materials, the Lessee shall (1) be solely responsible for ascertaining that local, state and federal laws, ordinances and regulations do not prohibit the loading, unloading or storage of hazardous materials on the leased property and (2) be solely responsible as between the Railway and the Lessee, for complying with all of the foregoing laws, ordinances and regulations which affect or regulate the loading, unloading or storage operations of hazardous materials on this leased property. Page 6 25. It is understood between the parties hereto that Railway reserves unto itself, its successors, permittees, licensees, or other persons, the fight to construct and maintain other facilities, including but not limited to, pipelines and/or communication cables, over and across the Railway's affected herein leased property, and further, that Lessee shall take no measures to interfere with the construction or maintenance of said facilities and shall at all times allow ingress and egress to the herein leased property by said successors, permittees, licensees or other persons. 26. Lessee will do no grading on said leased ground space that will in any manner interfere with the Railway's roadbed or other facilities. 27. Lessee is specifically notified that its personnel may be working in an area containing buried active fiber-optic transmission cables as well as other cables and other facilities. Great care will be taken by the Lessee to ensure that no damage is done to those cables and facilities. However, if a cable or other facility is damaged or cut, Lessee agrees to indemnify Railway for any monetary damages which may result. 28. Lessee agrees that no plants, shrubbery, or other vegetation that would obstruct the view of motor vehicles or train crews using a crossing at grade, or interfere with the operation of trains, will be placed on the above described property; in addition to the above restriction, no plants, shrubbery or other vegetation having a height of more than two feet (2') will be placed within two hundred fifty feet (250') of any at grade street crossing, and if such vegetation exceeds two feet (2') in height, the Railway may trim such vegetation to a two foot (2') height at Lessee's expense; that said plants, shrubbery or other vegetation shall be trimmed by the Lessee so as to maintain a distance from the centerline of the nearest track of twenty-five feet (25') and if such vegetation is closer than twenty-five feet (25') from the centefline of the nearest track, the Railway may trim or remove such vegetation so that no vegetation is within twenty-five feet (25') of the centerline of the nearest track at Lessee's expense. However, this restriction in no way limits the indemnification provisions of this lease as set forth in Paragraphs 8 and 9 hereofi Also, no plants, shrubbery or other vegetation of a hazardous nature that might produce injury to any person coming in contact with said plants, shrubbery or other vegetation will be placed upon said property of Railway by the Lessee. The placement of any wells by the Lessee on the property of the Railway is strictly prohibited. 29. Lessee recognizes ownership of said property by the Railway and Lessee has no intention of setting up any claim of ownership to the herein leased properties. 30. Lessee shall, at its sole cost and expense, install, maintain, and/or replace such barricades and bumping blocks, as required by the Railway, to prevent automobiles from being parked or rolling beyond the space hereby leased. In the event Lessee does not maintain, and/or replace said barricades or bumping blocks to prevent automobiles from being parked or rolling beyond the space hereby leased within thirty (30) days after notification by Railway, then, in that event, this lease agreement shall be canceled and Lessee shall immediately vacate the property. 31. This agreement cancels and supersedes that certain Lease Agreement by and between the parties hereto, dated January 9, 1991, covering the hereinabove described property. Page 7 IN WITNESS WHEREOF, the parties hereto have caused these presents to be duly executed under the seal. Signed, sealed and delivered FLORIDA EAST COAST RAILWAY in the presence of: COMPANY, a Florida Corporation By: (SEAL) C. F. Zellers, Jr., President Attest: Witnesses as to Kailway Mary C. Mueller, Assistant Secretary Date of Execution: CITY OF DELRAY BEACH a Municipal Corporation of the State of Florida .,,. ,,..By: (SEAL) Witness as to Lessee Mayor ~'Print Name). ,.~-'Phnt Name). .,~ttest: ~Witness as to Lessee City Clerk /(Print Name). .A~Print Name) .,,/Date of Execution: Approved as to Form: Page 8