2011-104 LEASE
THIS LEASE made and entered into this /Oday of gior 2011,
by and between the CITY OF CLERMONT, a Florida municipal corporation whose address is 685
W. Montrose Street, Clermont, FL 34711, hereinafter "Landlord" and SOUTH LAKE CHAMBER
OF COMMERCE, INC. a Florida Non-Profit Corporation, whose address is 620 W. Montrose St.,
Clermont, FL, 34711,hereinafter "Tenant".
WITNESSETH THAT:
Upon the terms and conditions hereinafter stated, and in consideration of the payment
hereinafter stipulated and the performance by the Tenant of the covenants herein contained, the
Landlord does hereby lease, let and demise unto the Tenant, and the Tenant does hereby rent, lease
and hire from the Landlord, upon the terms and conditions hereinafter stated, the Premises, as
described below.
1. Premises
Landlord intends to construct a new building located at 620 W. Montrose Street, Clermont,
Florida as a replacement building for Jenkins facility currently located on the subject site,
hereinafter referred to as the "Jenkins Replacement Building". The Premises that shall be the
subject matter of this lease agreement and to which Tenant shall be entitled to occupy in accordance
with the terms hereof, shall be that certain portion of the Jenkins Replacement Building as set forth
in the building plan attached hereto as Exhibit"A".
2. Term of Lease
This Lease shall be effective as of the last date of execution by the parties below. The term
of this Lease shall begin on the date that the Premises are completed for occupation by Tenant (the
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Commencement Date) and end on the 20th annual anniversary thereafter unless terminated as
provided herein. At the time that a Certificate of Occupancy has been issued for the Jenkins
Replacement Building, the parties shall complete and execute the Landlord/Tenant Acceptance
Letter attached hereto and incorporated herein as Exhibit `B". The Acceptance Letter shall include
the actual cost to Tenant related to the Tenant improvements for the Premises as verified by
documentation acceptable to Landlord. The parties agree that provided the Tenant is not in default
of any of the terms and conditions contained herein, the Lease term may, at Tenant's option, be
extended for two(2)successive ten(10)year terms.
3. Build-out,Signage,Use and Care of Leased Premises
A. Tenant recognizes and agrees that the Premises shall be delivered or made available
to Tenant as a shell space. Landlord shall only be responsible for the provision of electricity, water
and sewer connections and HVAC systems as shall be designed and constructed, by Landlord, for
the Jenkins Replacement Building. Tenant shall be responsible for the cost of build-out of the
Premises for Tenant's anticipated use as set forth below. Prior to the commencement of any
improvements or any future alterations to the Premises by or on behalf of Tenant, Tenant shall
provide all necessary plans and drawings related to the improvements to Landlord for review and
which shall be subject to Landlord's approval, which shall not be unreasonably withheld.
B. Tenant shall not install or place any signage, either permanent or temporary, of any
kind on the exterior of the Jenkins Replacement Building or anywhere outside of the interior
portion of the Premises without Landlord prior written approval, which shall not be unreasonably
withheld.
C. The above-described Premises shall be used by the Tenant for administrative
offices, a conference facility, and similar uses associated with Tenant's business operation. The
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use shall be in accordance with all applicable laws and regulations.
D. The Tenant shall use and occupy the Premises in a careful, safe and proper manner
and shall keep the Premises in a clean, sanitary and safe condition. The Tenant shall not use, or
allow the Premises to be used for any purpose other than Permitted Uses and shall not use, or
permit the Premises to be used for any unlawful, disreputable or immoral purpose or in any way
that will injure the reputation of the Property or Landlord.
4. Peaceful Occupancy by Tenant
If Tenant shall fully observe and perform all of the covenants and conditions of this Lease
on its part to be performed,the Landlord hereby covenants and agrees that the Tenant shall have the
peaceful possession and quiet enjoyment of the Premises during the term hereof without any
manner of interference or hindrance from the Landlord or any person or persons, lawfully claiming
by, through or under the Landlord.
5. Lease Consideration
The parties covenant and agree that in consideration and as annual rent for this Lease,
Tenant shall, at its expense,provide the following:
A. Management, scheduling and booking of the portion of the Jenkins Replacement
Building that will be available for use by the general public. The services to be provided hereunder
shall be done in accordance with guidelines, rates, rules, policies and regulations as established by
Landlord.
B. Provide at least one employee of Tenant to remain onsite in the Jenkins
Replacement Building at all times that the building is open and in use by the general public.
6. Rental Income
The parties covenant and agree that Tenant shall collect rental income for the use of the
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public portion of the Jenkins Replacement Building in accordance with the rate regulations
established by Landlord. On a monthly basis, Tenant shall remit to Landlord, one-half of all rental
income collected by Tenant, without deduction of any kind for expenses or costs incurred by or on
behalf of Tenant. Tenant shall retain the remaining half of the rental income. Tenant shall maintain
for at least a period of three (3)years from the date of any booking or scheduled detailed records of
the event, including the user's name and address, the length of the use and the general purpose of
the event. Tenant shall, upon Landlord's request, provide to Landlord for review and inspection,
copies of all records related to events booked or scheduled by Tenant.
7. Utilities and Other Charges
Tenant agrees to pay for all insurance, electric, telephone, internet, cable television, and
water and sewer charges and cleaning and janitorial services associated only with Tenant's use of
the Premises.
8. Repairs
A. Tenant shall keep and maintain the Premises, including but not limited to, all
improvements constructed by Tenant in good condition and repair, reasonable wear and tear
excepted.
B. The Tenant shall act promptly in making all reasonable repairs and shall have a
reasonable time to complete the same unless Tenant is prevented from doing so by reason of strikes,
governmental regulation, inability to obtain materials or other causes beyond the reasonable control
of the Tenant.
C. In the event the Tenant does not make the repairs to the Premises required of it
hereunder, the Landlord, after ten (10) days written notice to the Tenant, may proceed with such
repairs and in such event the Tenant covenants and agrees to reimburse promptly the Landlord for
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the cost of such repair, plus ten percent (10%) of such costs for supervision. In such event, if
payment of the amounts due the Landlord for paying the performing party is not made by the
Tenant within thirty (30) days after presentation of statements therefore, such amounts shall earn
interest at the maximum rate allowable by law and shall constitute a default of the terms and
conditions of this agreement.
9. Insurance-Provided by Tenant
A. The Tenant covenants and agrees to provide and maintain, at all times during the
term of this Lease policies of insurance insuring the Tenant and the Landlord against any and all
claims, demands, actions and causes of action whatsoever for injuries received and damage to
property in connection with the use, occupation, management and control of the Premises and the
improvements thereon. Such policies of insurance shall insure the Landlord and the Tenant in an
amount not less than ONE MILLION DOLLARS ($1,000,000) to cover claims of any one person
from any single or specific cause and in an amount not less than TWO MILLION DOLLARS
($2,000,000) to cover, in connection with any one particular accident or occurrence, the total
aggregate of claims that may arise or to be claimed to have arisen against the Landlord or the
Tenant, as aforesaid. Nothing herein shall be construed as a waiver, either in whole or in part of
City's right of sovereign immunity as provided by Section 768.28, Florida Statutes, or its
successor.
B. The Landlord will review the aforementioned liability coverages every five years,
beginning in the year 2015 to verify the average market or industry standard for liability insurance
related to the operation of an office to determine if there is sufficient liability coverages. If the
Landlord, after review of the surveys, acting reasonably, deems the liability coverages are
inadequate, Tenant shall supply the coverage Landlord, acting reasonably, deems to be adequate at
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that period in time. At no time shall liability coverages ever decrease below what is stipulated in
the preceding paragraphs.
10. Construction Liens
Any consent Landlord may give to Tenant to allow Tenant to construct improvements on
the Premises including any alterations or additions thereto shall not be deemed improvements as
may be required by an agreement between Landlord and Tenant, within the meaning of the Florida
Construction Lien Law. All contractors, subcontractors, mechanics, laborers, materialmen and
others who perform any work, labor or services, or furnish any material or otherwise participate in
the construction of improvements on the Premises, are hereby given notice that the Tenant is not
authorized to subject Landlord's interest m the Premises to any claim of contractors, sub contractors
laborers, materialmen's liens, or other liens, and all persons dealing directly or indirectly with the
Tenant may not look to the interest of the Landlord in the Premises as security for payment of such
labor, services or materials.
If any Construction or other liens shall be filed against the Premises, or any improvement
thereon by reason of or arising out of any labor or materials furnished or alleged to have been
furnished or to be furnished to or for the Tenant or at or on the Premises, at the Tenant's request or
direction or by reason of any changes, alterations or additions to the Premises, then, except for
inchoate liens, the Tenant shall,within thirty(30)days after receipt of written notice from Landlord,
either pay such lien or cause the same to be bonded off the Premises in the manner provided by law.
The Tenant shall also defend on behalf of the Landlord, at the Tenant's sole cost and expense,
including but not limited to reasonable attorney fees, any action, suit or proceeding which may be
brought for the enforcement of such liens and the Tenant shall pay any damage and discharge any
judgment entered thereon.
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11. Entry Upon the Premises
The Tenant covenants and agrees that the Landlord, its representatives, successors and
assigns, shall have free access to the Premises at all reasonable times for the purpose of inspecting
the same and for the purpose of making any alterations or repairs to the Premises that the Landlord
may deem necessary for the safety or preservation of the Premises; provided, however, that such
alterations or repairs have not been made by Tenant after written notice to Tenant of the necessity
therefore in the time period specified by Landlord.
12. Hold Harmless
A. The Tenant covenants and agrees that the Tenant will indemnify and save harmless
the Landlord from and against any and all liability, bens, claims, demands,damages, expenses, fees,
fines, penalties, suits, proceedings, actions and causes of action of any kind, whether actual or
alleged, arising from or related to, the use, occupation, management or control by Tenant of the
Premises and the improvements thereon, or which may be the result of any actual or alleged breach,
violation or nonperformance of any covenant, condition or agreement herein contained on the part
of the Tenant except for claims based on the willful or negligent acts or inactions of Landlord. The
Tenant covenants and agrees that the Tenant will, at the Tenant's expense, defend any and all such
actions, suits or proceedings which may be brought against the Landlord or in which the Landlord
may be impleaded with others in any such action or proceedings, at all levels, including appeal, to
which the Landlord may be a party.
B. In the Event the Tenant fails to perform under the provisions of A. above, within ten
(10) days after due notice, the Landlord may at its option, take whatever reasonable action the
Landlord reasonably deems necessary to cure the Tenant's failure to perform, and the Tenant agrees
to pay the Landlord as additional rent hereunder for all damages, costs, fees, expenses,judgments,
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charges and reasonable attorneys' fees incurred by the Landlord in exercising it nghts under this
Lease.
13. Destruction of Premises
A. The Landlord and the Tenant covenant and agree that in the event the Premises shall
be wholly or partially damaged by fire, windstorm, tornado, flood or by similar causes to such an
extent that the Premises shall be rendered wholly untenable, then Tenant may elect, within twenty
(20) days after such damage, to terminate this Lease by giving the Landlord written notice of
termination. If Tenant should so elect, if requested by Landlord, Tenant agrees to restore the
premises to its condition immediately prior to the effective date of this Lease. If the Premises shall
suffer damage but not rendered wholly untenable by any such casualty, or in the event the Premises
are rendered wholly untenable and the option to terminate is not exercised, the Tenant covenants
and agrees to proceed promptly without expense to the Landlord to repair the damage. It is
understood and agreed that the Tenant shall have a reasonable time within which to rebuild or make
any repairs, and such rebuilding and repairing shall be subject to delays caused by storms, shortages
of labor and materials, government regulations, strikes, walkouts and causes beyond the control of
the Tenant, which causes shall not be construed as limited factors,but as exemplary only. Tenant's
Insurance proceeds shall be used,to the extent available,to effect such repairs.
14. Removal of Personal Property by Tenant
A. Except as hereinabove otherwise provided, all of the furniture, furnishings, trade
fixtures, and other personal property or equipment used on the Premises by the Tenant and paid for
by it shall remain the property of the Tenant and may be removed by the Tenant upon the expiration
of the term, or termination, of this Lease, subject, however, to the limitations that (1) any such
improvements, furniture, furnishings, trade fixtures, and equipment as are affixed to the Premises
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and require severance may be removed only if the Tenant shall repair any damage caused by such
removal, and (2) the Tenant shall have fully performed all of the covenants and agreements to be
performed by it under the provisions of this lease.
B. The Landlord, following the termination, abandonment, surrender or release of this
Lease, shall have the right to take possession of any goods, equipment, inventories, fixtures or other
personal property of the Tenant which may be left upon the Premises, and may dispose of said
property at a time and place designated by the Landlord's sole opinion, and upon notice of such
disposition to any necessary parties. Any proceeds from such sale, lease or other disposition of the
said property may be applied to:
1. Any costs incurred by the Landlord in retaking, holding, selling or otherwise
disposing of the said property of the Tenant;
2. Any monies, which may be owing and unpaid under the provisions of this
Lease Agreement;
15. Default
The following events shall constitute defaults hereunder by the Tenant:
A. Monetary Default. Failure to pay any charges required under the provisions of
this Lease promptly when due;
B. Non-Monetary Default. Failure to fully and promptly perform and comply
with each and every term, provision, covenant and condition of this Lease except for a Monetary
Default as defined above.
C. An Event of Default shall have occurred in the event of a Monetary Default by
Tenant and the continuance of such default for a period of three(3) days after written notice thereof,
or in the event of a Non-Monetary Default and the continuation of such Non-Monetary Default for a
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period of twenty (20) days after written notice thereof, the Landlord may, at the Landlord's option
and sole discretion, and in addition to any other remedy or right given hereunder or by law, without
further demand or notice terminate this Lease on the date specified in said notice and retake
possession of the Premises, including all improvements thereon. The remedies set forth herein shall
not preclude the Landlord from enforcing any other remedy or right provided to the Landlord
hereunder or by law. In all events, the Tenant shall remain liable for the payment of any and all
reasonable attorneys' fees and costs incurred by Landlord in enforcing any remedy set forth herein
or provided by law or otherwise.
16. Termination for Convenience
Either party may terminate this agreement without cause upon delivery to the non-
terminating party a written notice of intent to terminate one(1)year prior to the effective date of the
termination. The Notice shall be delivered by registered or certified mail to the address listed
herein. In the event that Tenant elects to terminate the Lease pursuant to this section, Tenant shall
forfeit all right, title and interests to any improvements paid for by Tenant to the Premises. In the
event that Landlord elects to terminate the Lease pursuant to this section, Landlord shall reimburse
Tenant for the cost of the construction of Tenant's improvements as set forth in the
Landlord/Tenant Acceptance Letter to be executed by the parties pursuant to Section 2 above. The
reimbursement amount from City to Landlord shall be prorated in accordance with the schedule
below and shall be paid by City within ninety(90)days of the effective date of the termination.
If the termination effective date is within:
Years 0 to 5 of the Lease term: 100%of the construction costs amount will be reimbursed.
Year 6 of the Lease term: 90%of the construction costs amount will be reimbursed.
Year 7,of the Lease term: 80%of the construction costs amount will be reimbursed.
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Year 8,of the Lease term: 70%of the construction costs amount will be reimbursed.
Year 9,of the Lease term: 60%of the construction costs amount will be reimbursed.
Year 10,of the Lease term: 50%of the construction costs amount will be reimbursed.
Year 11,of the Lease term: 40%of the construction costs amount will be reimbursed.
Year 12,of the Lease term: 30%of the construction costs amount will be reimbursed.
Year 13,of the Lease term: 20%of the construction costs amount will be reimbursed.
Year 14,of the Lease term: 10%of the construction costs amount will be reimbursed.
Thereafter, Landlord will not be obligated to reimburse Tenant for any portion of the
Tenant's construction costs. Except as provided above and in Section 11 above which provisions
expressly survive termination of this Lease for any reason, a termination hereunder shall be without
consequence or future obligation to either party.
17. Force Majeure
Whenever any non-monetary performance is required of Tenant hereunder,then Tenant will
be permitted to effect such performance within the time period provided therefore in this lease, or
if, for reasons beyond Tenant's reasonable control (including, without limitation, acts of God,
natural disaster, labor unrest, war, declared or undeclared, the existence of injunctions or
requirements for obtaining licenses, permits or other compliance with applicable laws, rules and
regulations), such performance is not reasonably possible within such time periods, then the time
for such performance shall be extended until removal of such reasons beyond Tenant's reasonable
control, provided that Tenant commences such performance (or cure) as soon as reasonably
possible and diligently pursues such performance or cure.
18. Bankruptcy of Tenant
To the extent now or hereinafter permitted by applicable law the filing by, or against Tenant
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of a petition in bankruptcy or other similar proceedings under law for relief of debtors, or the
involuntary appointment of a receiver, custodian, liquidator, or trustee in bankruptcy of the
Premises and improvements thereon and such petition or petitions is not discharged or vacated
within one hundred twenty (120) calendar days after the filing thereof; or if Tenant becomes
insolvent or unable to pay its debts as they mature or makes an assignment for the benefit of
creditors or request or consents to the appointment of a receiver, custodian, liquidator or trustee in
bankruptcy of any such party's property or files a petition in bankruptcy or other similar proceedings
under law for relief of debtors, then upon the occurrence of any of the above events, Landlord may,
at its option, declare Tenant in default hereunder and immediately give Tenant written notice of its
intention to terminate this Lease.
19. Cumulative Rights/Waiver of Covenants by Landlord
The rights of the Landlord under this Lease shall be cumulative and nonexclusive as to
those provided by statute. No consent or waiver by the Landlord to or of any breach of any
covenant, condition or duty of the Tenant shall be construed as a consent to or waiver of any other
breach of the same or any other covenant, condition or duty of the Tenant. No such consent or
waiver shall be valid unless in writing, signed by the Landlord, and no such consent or waiver shall
be implied by the failure of the Landlord to declare a forfeiture or for any other reason.
20. Subletting of Premises by Tenant
Tenant may not assign, transfer, mortgage, pledge, hypothecate or encumber this Lease, or
an interest therein, nor sublet the Premises or any part thereof, nor permit the use of the Premises by
any person other than the Tenant and its employees, without the prior written consent of the
Landlord. Consent to one assignment or sublease shall not eliminate or waive this provision, and
all other assignments and subleases shall likewise be made only upon the prior written consent of
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the Landlord pursuant to the provisions of this Paragraph.
21. Surrender of Premises Upon Termination
The Tenant covenants and agrees that upon the termination of this Lease, whether by lapse
of time or otherwise, it will, at once, peaceably and quietly, vacate, surrender and deliver up to the
Landlord, all of the Premises in as good condition and repair as upon delivery of possession to the
Tenant,ordinary wear and tear and damage by fire or other casualty only excepted.
22. Time
It is covenanted and agreed between the parties hereto that time is of the essence in this
Lease and this provision shall apply to all terms and conditions contained herein.
23. Mutual Covenants
Except as hereinbefore or otherwise specifically provided, the covenants, agreements,
conditions, obligations and provisions herein contained shall extend to,bind and inure to the benefit
of the parties hereto and their respective personal representatives,heirs, successors and assigns, and
wherever either the word "Landlord" or "Tenant" is used in this Lease, it shall be deemed to mean
"Landlords" or "Tenants", respectively, wherever the context permits or requires, and when the
singular and/or neuter pronouns are used herein, the same shall be construed as including all
persons and corporations designated respectively as Landlord or Tenant in the heading of this
instrument wherever the context requires.
24. Attorneys' Fees
Landlord and Tenant each agree to pay to the prevailing party, on demand, all costs and
expenses and reasonable attorneys' fees, including costs and expenses and reasonable attorneys'
fees, at all levels, including bankruptcy and appeal, incurred by the prevailing party with respect to
the enforcement or declaration of any of the rights or remedies or obligations of either of them,
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whether arising under this Lease or granted, permitted or imposed by law or otherwise, and with
respect to the collection of any part of said rent or other charges and sums of money herein reserved
or required by either of them to be paid or met.
25. No Partnership
Landlord does not, in any way or for any purpose, become a partner of Tenant in the
conduct of Tenant's business or otherwise, or a joint venturer, or member of a joint enterprise with
Tenant.
26. Liability of Landlord
Landlord shall not be responsible in any manner for any loss of or damage to the
Premises, or injury to persons resulting, occurring on or about the transfer station, by reason of
any future condition, defect, matter, thing, action or inaction, or for the acts, omissions or
negligence of other persons or Tenant in or about said premises, unless said injury or loss results
from the direct negligence of Landlord. Nothing herein shall be construed as a waiver, either in
whole or in part of Landlord's right of sovereign immunity as provided by Section 768.28,
Florida Statutes, or its successor.
27. Dispute Mediation
Any dispute arising out of this Agreement, the construction, interpretation or performance
thereof, shall be submitted to non-binding mediation by a duly qualified and certified mediator
practicing in Lake County, Florida, and no action at law or in equity shall be filed in any state or
federal court by either party hereto against the other until such time as the mediator has declared
an impasse.
28. Miscellaneous
A. No Discrimination. Tenant agrees that in carrying out its obligations under this
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Agreement it will not discriminate in any manner on the basis of race or religion.
B. Tenant Employee Conduct. Tenant personnel shall conduct their actions and
business in accordance with all applicable laws, regulations and policies.
C. Written Notice. Written notice shall be given to the Parties at the following
addresses or such other place or other person, as each Party shall designate by similar notice.
As to Tenant:
South Lake Chamber of Commerce, Inc.
691 W. Montrose Street
Clermont, Florida 34711
Attention: President
As to the Landlord:
City of Clermont
685 W. Montrose Street
Clermont, Florida 34711
Attention: City Manager
E. Governing Law. This Agreement shall be governed by the laws of the State
of Florida. Venue for any action hereunder shall be in Lake County, Florida.
F. Entire Agreement Severability. This Agreement constitutes the entire
agreement between the Parties with respect to the subject matter contained herein and may not be
amended, modified or rescinded, unless otherwise provided in this Agreement, except in writing
and signed by all parties hereto. Should any provision of this Agreement be declared to be
invalid by any act of law or court or administrative determination, the remaining provisions of
this Agreement shall remain in full force and effect unless such provision which is found to be
invalid substantially alters the benefits of the Agreement for either Party.
G. Specific Performance.It is understood and agreed between the Parties that there
will be irreparable damage in the event that this Agreement is not specifically enforced. In the
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event any dispute arises under this Agreement, either party hereto shall be entitled to specific
performance of the terms, conditions and agreements set forth in this Agreement. The remedy of
Specific Performance shall be cumulative and not exclusive, and shall be in addition to any other
remedy, which the Parties may have.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed
by their duly authorized officers, and copies delivered to each Party, as of the day and year first
above stated.
Attest: City of Cl- .
By:l _i/ 'I, t all - rA
Tracy Ackrzity Clerk Harold S. Turville, Jr., Mayor
Date:
South Lake Chamber o Commerce, Inc.
B
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By: -
Witness ! Li ,r
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teed N Date: /
Witness
iris+en Patisen
Printed Name
JenkmsleaseO5l 01 1
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EXHIBIT "B"
LANDLORD/TENANT ACCEPTANCE LETTER
The undersigned, as Landlord and Tenant under that certain Lease dated May 16,
2011, hereby certify that the Lease is in full force and that the Initial Term of said Lease
has commenced as of April 15, 2013 (the"Commencement Date") and expires on
April 16, 2033; that all conditions under said Lease to be performed by Landlord
prerequisite to the full effectiveness of the Lease have been satisfied.
The total cost for construction of the Premises paid by Tenant is FIFTY-FIVE
THOUSAND DOLLARS ($55,000).
TENANT: South Lake Chamber of Commerce, Inc.
By:
Ray San Frat llo, President
Date: 'S. ■ 1 • 2-01 3
LA i b� I • Ci of Clermont
By:
Darr ray, City Manager
Date: 51 I l 13