Res 2021-065/approving the renewal of a lease agreement between the City of San Marcos and San Marcos Lions Club providing for a five year lease of a portion of the City Recreation Building located in City Park for an annual rent of $11,900

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2.03. Lessee shall collect on behalf of and remit to the City any fees, assessments or charges arising by virtue of or related to its activities under this Lease as may be required by any ordinance, law, order or regulation. Additionally, the City may submit an invoice or invoices to Lessee for the above mentioned or other fees, assessments or charges due and payable to the City. Such invoice or invoices must be paid by the Lessee with the next annual rent payment, except when earlier payment may be due under applicable ordinance, law, order or regulation. 2.04. Late Payment: If the Lessee fails to pay any rent or any other sum payable to the Lessor under the terms of this Lease when due, then interest at the rate of five percent per annum shall accrue from the date on which the sum became due and payable. 2.05 Renewal: Negotiations between the Lessor and Lessee for future renewal periods shall be finalized and approved by October 1 of the preceding year of the expiration date. 2.06 River Parks Improvements Donation: In addition to the annual rent identified in Section 2.02 of this Lease, the Lessee shall establish a River Parks Improvements Fund allowing customers to make donations through the Lessee's website and point-of-sale transactions with the following conditions: A. This donation will be guaranteed over the five (5) year term of this renewal period in the minimum amount of $10,000 per year. B. This donation will be provided in the form of a Lions Club Grant to the San Marcos Parks and Recreation Department for the purposes of funding improvements within the river parks. C. This donation will be contingent upon the Lions Club tube rental operation being open for the entire season and not forced to close due to government mandate. Should a mandatory closure occur that exceeds seven (7) days (excluding inclement weather closures), the Lions Club will be authorized to deduct from the guaranteed amount $100 each day that the park is closed. 2.07. Termination: Lessee shall surrender and vacate the Leased premises on the last day of the term of this Lease. Upon termination of the lease, Lessee shall also remove all personal property, equipment from the Leased premises. Lessor may retain, destroy, or dispose of any property left in the Leased Premises at the end of the Term. Article 3. Use and Care of Premises 3.01. The use of the Leased Premises by the Lessee shall be restricted to conducting an inner tube rental operation. Lessee may sell, at Lessee' s discretion, drinking water, soft drinks, prepackaged foods and snacks, t- shirts, river related merchandise, and air for inner tubes within the confines of the leased portions of the City Recreation Building and the Rio Vista concession stand authorized in 3.02. Lessee shall not sell alcoholic beverages, Styrofoam products or plastic straws on the leased premises or in Rio Vista Park. Use of the Leased Premises for any purpose other than permitted by this Lease shall constitute a default.