Supporting Document (52fc2c3b...)
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Item 16
CITYCOUNCIL
REPORT
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Meeting Date:
General Plan Element:
General Plan Goal:
ACTION
June 9, 2026
Economic Vitality
Encourage high quality retail and entertainment
Authorize a new Revocable Outdoor Dining License Agreement with 4251 LLC. Adopt Resolution 13671
authorizing a new Revocable Outdoor Dining License Agreement, City Contract No. 2G26-068-COS; located at
4251 N Winfield Scott Plaza, with 4251 LLC, an Arizona limited liability company ("Licensee") for an outdoor
dining patio in City right of way.
BACKGROUND
The purpose of this, action is to approve a new/ Revocable Outdoor Dining License Agreement ("Agreement")
with 4251 LLC in city right of way. The license area is approximately 644 square feet ("Use Area") located on
city right of way op the east side of Winfield Scott Plaza just north of 4*^ Avenue. City and Licensee had
previously entered into City Contract No. 2011-034-COS which is on file at the City Clerk's Office, for the
purpose of Licensee operating an outdoor dining patio in the Use Area. Improvements installed by Licensee
were approved by Staff Approval on 04/06/11 under case 21-SA-2010 which is on file at the City's Planning
Department. The current agreement expired on April 4, 2026. City and Licensee desires to enter into a new
outdoor dining license to allow for continued use of the area.
This outdoor dining license will not impact any on-street parking spaces or existing sidewalks. Historically,
the City has supported outdoor dining activities to energize downtown areas.
ANALYSIS & ASSESSMENT
Recent Staff Action
The patio location vi/ill not impact access to, or operation of, pedestrian movement along 4‘*' Avenue or N
Winfield Scott Plaza. The terms of the License Agreement are similar to other outdoor dining license
agreements within the downtown area, and include the following provisions:
A five-year license, with 2 additional 5-yr extensions options.
Either party may cancel the license with a 30-day written notice.
The base use fee will be $9)419.14 a year with an annual 3% escalation each July thereafter beginning
on July 1, 2027.
O
•'
Action Taken
Blueink Bundle ID: GkJnYcgrnN
City Council Report | Outdoor Dining Revocable License Agreement Amendment with 4251 LLC
RESOURCE IMPACTS
Available funding
No City funding is required as a result of this action.
Staffing, Workload Impact
The Agreement will be administered by existing Transportation & Infrastructure Real Estate staff. The
Licensee is responsible for all maintenance and operational costs of the outdoor dining areas.
Maintenance Requirements
No significant maintenance requirements will result from this action. Minor upkeep of the adjacent
landscaping and patio area is the responsibility of the property owner.
OPTIONS & STAFF RECOMMENDATION
Recommended Approach
Adopt Resolution 13671 authorizing Outdoor Dining License Agreement, Contract No. 2026-068-COS for an
outdoor dining patio.
Proposed Next Steps
If Council adopts Resolution 13671 Staff will work to finalize the agreement and collect the required deposit
amount and first year use fee.
RESPONSIBLE DEPARTMENT(S)
Transportation & Infrastructure, Real Estate Services
STAFF CONTACTS (S)
Maria Muiser, Real Estate Asset Manager, (480) 312-7853 MMuiserPscottsdaleaz.gov
Deborah Fisher, Real Estate Management Specialist, (480) 312-2522 DFisherPscottsdaleaz.gov
APPROVED BY
Alison Tymkiw, Senior Director-City Engineer,
Transportation & Infrastructure
(480) 312-7760, atymkiwPscottsdaleaz.gov
5/22/26
Date
Page 2 of 3
Blueink Bundle ID; GkJnYcgrnN
City Council Report | Outdoor Dining Revocable License Agreement Amendment with 4251LLC
ATTACHMENTS
1. Resolution 13671
2. Location Map
3. Contract 2026-068-COS
f
Page 3 of 3
Blueink Bundle ID: GkJnYcgrnN
RESOLUTION NO. 13671
A RESOLUTION OF THE COUNCIL OF THE CITY OF SCOTTSDALE,
MARICOPA COUNTY, ARIZONA AUTHORIZING A REVOCABLE
OUTDOOR DINING LICENSE AGREEMENT ON CITY OWNED PROPERTY.
WHEREAS, Scottsdale's downtown is an important community asset providing
significant economic, tourism and cultural amenities for Scottsdale's citizens, businesses and
visitors.
WHEREAS, The City of Scottsdale ("City") is committed to maintaining and enhancing
downtown to provide these important community benefits.
WHEREAS, Activating public spaces through outdoor dining patios and similar
amenities increases the attractiveness of downtown to tourists and othenwise advances the
prosperity of downtown and the broader community.
WHEREAS, Including such projects as part of downtown provides the potential for
visitors to better experience the community and its amenities and heritage.
WHEREAS, City owns land interest or use rights on the east side of Winfield Scott Plaza
north of 4*^ Avenue that is suitable for an outdoor dining patio (the “Use Area”)
WHEREAS, 4251 LLC, an Arizona limited liability company (the "Licensee"), is the
owner of an adjacent restaurant parcel at 4251 N. Winfield Scott Plaza (the "Licensee’s Parcel").
BE IT RESOLVED by the Council of the City of Scottsdale as follows:
Section 1. The City Council hereby authorizes and directs the Mayor to
execute on behalf of the City of Scottsdale, the Outdoor Dining License Agreement No. 2026-
068-COS with 4251 LLC, an Arizona limited liability company.
day of.
PASSED AND ADOPTED by the City Council of the City of Scottsdale this
____________ 2026.
ATTEST:
CITY OF SCOTTSDALE,
an Arizona municipal corporation
Ben Lane, City Clerk
APPROVED AS TO FORM:
OFFICE OF THE^HTY ATTORNEY
Lisa Borowsky, Mayor
c
Luis ^i-^antaeila. City Attorney
By: Joe Padilla, Deputy City Attorney
19205510
Resolution 13671
Page 1 of 1
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LOCATION
MAP
DEPT. D.F I DRA\M4 I DATE
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CITY OF
SCOTTSDALE
WHEN RECORDED RETURN TO:
CITY OF SCOTTSDALE
Attn: Real Estate Services
7447 East Indian School Road, Suite 205
Scottsdale, AZ 85251
"
City of Scottsdale Agreement No. 2026-068-COS
Resolution No. 13671
Licensee’s Parcel Address: 4251 N Winfield Scott Plaza
OUTDOOR DEVEVG REVOCABLE LICENSE AGREEMENT
This OUTDOOR DINING REVOCABLE LICENSE AGREEMENT (the "Agreement") is made
and entered into this___ day of_________ 2026 (the “Effective Date”) by and between the
City of Scottsdale, an Arizona municipal corporation (the “City”), and 4251, LLC, an Arizona
limited liability company (“Licensee”). The City and the Licensee may each be referred to in this
Agreement individually as a “Party” or collectively as the “Parties.”
RECITALS
A.
Pursuant to the Scottsdale City Charter, the Scottsdale Revised Code, and other
state and federal laws, the City is empowered to regulate its streets, alleys, public easements, and
other City-owned property and to gr^t, renew, deny, amend, and terminate licenses for, and
otherwise regulate the installation of, outdoor patios located on property owned or controlled by
the City.
B.
City retains real property interests in certain real property comprising
approximately Six Hundred, Forty-Four (644) square feet of land which is legally described and
depicted on Exhibit A attached hereto (the "Use Area”).
C.
Licensee owns a certain existing building (the “Licensee’s Building”) located upon
certain land (the “Licensee’s Parcel”) which are described on Exhibit B attached hereto. The
Licensee’s Parcel is located at 4251 N. Winfield Scott Plaza and identifiable as of the Effective
Date as APNs 173-51-070 & 173-51-069. Licensee warrants and represents that Licensee owns
fee title to Licensee’s Parcel and Licensee’s Building.
D.
Licensee desires to use the Use Area solely for service of food and beverages
(including alcohol) that have been prepared in Licensee’s Building and will be immediately
consumed by guests in and on the Use Area (the “Permitted Use”).
E.
City desires to reserve rights to construct and use additional improvements upon
the Use Area subject to the requirements of this Agreement.
NOW, THEREFORE, for and in consideration of the foregoing, the amounts hereinafter to be paid
by Licensee, and the covenants and agreements contained herein to be kept and performed by
Licensee, and other good and valuable consideration. City and Licensee agree as follows:
Attachment 3
Page 1 of 30
Contract No. 2026-068-COS
TERMS
ARTICLE 1. USE
1.1.
Incorporation of Recitals. The Recitals above and any and all Exhibits referenced
within are incOrpora:ted herein by reference.
1.2.
Grant of License. City hereby grants to Licensee a non-exclusive, revocable license to
use the Use Area for the Permitted Use conditioned upon Licensee's full, timely,
complete, and faithful performance of all terms and conditions of this Agreement by
Licensee, and Licensee hereby accepts the license and this Agreement.
1.3.
Permitted Use. Licensee shall only use the Use Area for the service of food and
beverages (including alcohol) that,have been prepared in Licensee’s Building and that
will immediately be consumed by guests in the Use Area. No other activity shall be
conducted at or from the Use Area.
1.4.
Use Restrictions. Licensee shall conform and shall cause its customers, employees,
workers, and other persons using the Use Area pursuant to this Agreement to conform
to the Permitted Use and any restrictions outlined herein. The Permitted Use is
restricted as follows:
1.4.1. Cooking. No Cooking or food preparation is allowed in the Use Area.
1.4.2. Restaurant Operation Required. Licensee shall only use the Use Area in
connection with and as an integral part of a full-service, sit-down restaurant
within Licensee’s Building, with a menu and under a manager and/or
operator of the Licensee’s Building. Licensee shall operate Licensee’s
restaurant within Licensee’s Building as a restaurant and not as a bar or
other type of establishment. For purposes of this Agreement, a restaurant
is defined as an establishment that either offers only food and no alcohol
without conditions or offers both food and alcohol with the following
conditions:
1.4.2.1.
The restaurant has in-operation, on-site, full-service kitchen
within the Licensee’s Building that is used to prepare and cook
(and not just heat or warm) entrees ordered by individual
customers.
1.4.2.2.
When the kitchen is open, the restaurant’s main menu offers at
least ten (IG) different food entrees. Upon request by the City,
Licensee shall provide a copy of the main menu.
1.4.3. Animals. Licensee shall allow in the Use Area service anirhals and
emotional support animals as required by the American with Disabilities
Act. Pets on leashes are also permitted if allowed by applicable laws and
regulations.
Page 2 of30
Contract No. 2026-068-COS
1.5.
1.6.
1.7.
1.8.
1.4.4. Time Restrictions. All activities at the Use Area must start no earlier and
conclude no later than allowed by law. Licensee shall not use the Use Area
outside the general operation hours permitted by law, special permit or any
city imposed operating time restrictions.
1.4.5. Noise. Except as City may specifically allow from time to time under ah
approved Special Event or Conditional Use Permit, outdoor music and
sound equipment, sources, and devices that intentionally emit sound (except
for safety alarms) are prohibited at the Use Area.
Video Equipment. Licensee shall not use televisions, computer monitors, video
screens, video displays, video projectors, or other equipment for displaying video
images, signals, or patterns at the Use Area. City may elect to temporarily suspend this
paragraph in whole or in part from time to time subject to such conditions or
requirements as City may desire from time to time under an approved Special Event or
Conditional Use Permit.
Liquor License. Any liquor license that Licensee holds at the Use Area shall be limited
to the Use Area and the Licensee’s Building. This Agreement does not create in
Licensee any rights with respect to alcohol service outside the Use Area. Upon
termination of this Agreement for any reason, Licensee shall cause the Use Area to be
removed from the scope of its liquor license. Licensee shall cause all alcohol seryed at
the Use Area to be consumed inside the required barrier at the Use Area or inside
Licensee’s Building.
Standards of Service. In entering into this Agreement, City and Licensee have foremost
in mind providing the public food and beverage services and facilities of the highest
quality. Without limitation. Licensee shall operate the Use Area in a first-rate manner.
Security. Except as City may specifically allow from time-to-time, Licensee shall
require at least the following level of staffing and expertise for the Permitted Use at the
Use Area:
1.8.1. If City requests. Licensee shall hire one or more security guards for the Use
Area with such qualifications as City may reasonably request.
1.8.2. Licensee’s outdoor security efforts shall equal or exceed Licensee’s security
efforts inside Licensee’s Building.
1.8.3. Licensee shall be responsible for all aspects of security and safety at the Use
Area regardless of whether City influences or participates in Licensee’s
security or safety programs.
1.9. Conduct at Use Area. Noisy, unmly, inebriated, disorderly, lewd, adult oriented
behavior or other unlawful conduct of any description at the Use Area and Licensee’s
Parcel is strictly prohibited.
Page 3 of 30
Contract No. 2026-068-COS
1.10.
Common Areas. Subject to current and future regulations and policies governing the
use of, and access to, the Use Area, Licensee, its officers, employees, agents, patrons
and invitees, and its suppliers of services and furnishers of materials shall have the right
of ingress to and egress from the Use Area through such portions of the Adjacent City
Property as are open to the public for that purpose from time to time. Such right is
strictly limited to ingress and egress.
1.11.
Adjacent City Property Operations. Licensee acknowledges that Licensee's use of the
Use Area shall be subject and subordinate to use of the Adjacent City Property.
Licensee's use of the Use Area shall not be permitted by Licensee to in any way
adversely affect City's use or operation of the Adjacent City Property.
1.11.1. Obstructing Traffic. Licensee and its customers shall not obstruct or
interfere with the use of the Adjacent City Property including without
limitation any walkways, sidewalks, driveways, vehicle lanes, or other areas
adjacent to the Use Area and shall at all times maintain safe, convenient,
and free pedestrian and vehicular access along the Adjacent City Property.
City may require that such access includes pedestrian access passing
through the Use Area.
1.12.
Hazardous Materials. Licensee shall not produce, dispose, transport, treat, use or store
any hazardous waste or materials or toxic substance upon or about the Use Area or any
substance now or hereafter subject to regulation under any law. The preceding sentence
does not prohibit use of ordinary Janitorial supplies used to clean and maintain the Use
Area. Licensee shall pay, indemnify, defend, and hold City harmless against any loss
or liability incurred by reason of any Toxic Substance on or affecting the Use Area and
the Adjacent City Property occurring after the date of this Agreement and shall
immediately notify City of any Toxic Substance at any time discovered or existing
upon the Use Area. Licensee understands the hazards presented to persons, property,
and the environment by dealing with Toxic Substances. Licensee shall cause any on
site or off-site storage, treatment, transportation, disposal, or other handling of Toxic
Substance by Licensee in connection with the Use Area to be performed by persons,
equipment, facilities and other resources who are at all times properly and lawfully
trained, authorized, licensed, and otherwise permitted to perform such services.
1.12.1. Name of Business. Licensee shall operate the Use Area and Licensee’s
Building under the same name.
1.12.2. Prohibited Names. Licensee shall not use in connection with any operations
at the Use Area any name that directly or indirectly refers to or contains any
part of City's name or otherwise suggests a connection between City and
Licensee or Licensee's activities. Licensee shall also not use in connection
with its operations at the Use Area any name associated with products or
purveyors of any sort of alcohol other than Licensee’s own name, if
applicable, tobacco, adult entertainment, or gambling related products or
services.
Page 4 of 30
Contract No. 2026-068-COS
2.1.
2.2.
2.3.
2.4.
3.1.
3.2.
3.3.
ARTICLE 2. TERM
Term. The original term of this Agreement shall be for a period of five (5) years
commencing on the first day of July, 2026 (the “Commencement Date”) and ending
on June 30, 2031 (the “Original Term”).
Renewals. The Original Term may be renewed for up to two (2) additional five (5)
year periods, each a “Renewal Term”, upon mutual written agreement by Contract
Administrator and Licensee. The Original Term and any Renewal Term are
collectively referred to herein as the “Term.”
Holding Over. If Licensee remains in possession or occupancy of the Use Area after
expiration of the Term, such holding over shall operate as a limited renewal or
extension of this Agreement from month to month that may be terminated at any time
by City upon thirty (30) days’ notice to Licensee or by Licensee upon sixty (60) days’
notice to City. Licensee may remain in holdover status up to six (6) months after which
time this License will automatically terminate and may not be renewed.
Termination Rights. Either party shall have the unilateral right to terminate this
Agreement for any reason whatsoever or for no reason at any time upon thirty (30)
days’ written notice to the other party. If this Agreement is terminated prior to the end
of the term, the City will reimburse Licensee a prorated Use Fee for the prepaid balance
of the term based on a monthly proration.
ARTICLE 3. USE AREA
Condition of Use Area. Licensee has examined, studied and inspected the Use Area,
the Adjacent City Property, and all other property associated with this Agreement and
its environs. The Use Area is being made available in an "as is" condition without any
express or implied warranties of any kind, including without limitation any warranties
or representations as to their condition or fitness for any use. Licensee has obtained
such information and professional advice as Licensee has determined to be necessary
related to this Agreement, the Use Area, or this transaction.
Rights in Adjacent Property. Without limitation, in the event any public right-of-way
or other public or private property at or adjacent to the Use Area is dedicated,
abandoned, or otherwise acquired or disposed of by City, such property shall not accrue
to this Agreement but shall be City's only.
No Real Property Interest. Notwithstanding any provision hereof to the contrary, and
notwithstanding any negotiation, correspondence, course of performance or dealing, or
other statements or acts by or between the parties, Licensee’s rights are limited to the
Use Area and Licensee’s rights in the Use Area are limited to the specific limited
license rights created by this Agreement, which creates only a revocable license in the
Use Area. City and Licensee do not by this instrument intend to create a lease,
easement, or other real property Interest. Licensee shall have no real property interest
in the Use Area or the Adjacent City Property.
Page 5 of 30
Contract No. 2026-068-COS
3.4. Reservations. City specifically reserves to itself and excludes from this Agreement a
non-exclusive delegable right (the “Reserved Right”) over the entire Use Area
(including any area that may otherwise be for Licensee’s exclusive use) as follows:
3.4.1. City may use and allow others to use the Use Area and any existing or future
improvements upon the Use Area and to construct, open, repair, use, and
otherwise deal with all manner of improvements at any location upon the
Use Area to the extent such uses and improvements do not, in City's
reasonable discretion, materially and substantially impair Licensee's ability
to use the Use Area under the terms of this Agreement. For example, and
without limitation. City may construct additional utilities upon the Use Area
and may perform work related to traffic conditions; public health, safety or
welfare; street abandonment; street or other utility or improvement
construction or repair; change or establishment of street grade; and
installation or other work relating to sewers, drains, water pipes, power
lines, signal lines, transportation facilities, pavement, sidewalks, drainage
works, landscaping, utilities, tracks, or any other types of structure, work,
or improvements of any description, whether or not included within or
related in any manner to any of the foregoing.
3.4.2. Neither City nor any agent, contractor or employee of City shall be liable to
Licensee, its customers, or third parties for any service disruption or for any
other harm caused them or their improvements or personalty due to City’
exercise of its rights under this Agreement.
3.4.3. City shall have the unilateral right to modify the entirety of the Use Area
and Adjacent City Property from time to time during the Term. City may
also unilaterally regulate, reroute, close, and otherwise alter pedestrian and
vehicular traffic access to the Use Area and Adjacent City Property and
travel within any area of the Use Area and Adjacent City Property without
Licensee’s consent. The preceding sentence does not allow City to provide
less access, if any, to the Licensee’s Parcel than City would be required to
provide to the Licensee’s Parcel under applicable law if City and Licensee
had not entered into this Agreement.
3.4.4. Upon City's request to exercise its Reserved Right, Licensee at its expense
shall protect, support, disconnect, relocate, and remove Licensee's property
and improvements at its own expense upon ten (10) days’ notice from City
or such shorter notice (or no notice) as City may determine to be practical
in the circumstances. Within thirty (30) days after City finishes exercising
its Reserved Right, Licensee at Licensee’s expense shall replace any item
temporarily removed. City may perform any such work not performed by
Licensee, and Licensee shall reimburse City for its actual costs of such
work.
3.4.5. All new improvements or equipment constructed or installed by City shall
be for City's exclusive, delegable use.
Page 6 of 30
Contract No. 2026-068-COS
3.4.6. Licensee shall actively cooperate with City to facilitate City’s exercise of
the Reserved Right.
3.4.7. Except in an emergency, entries by City, other public agencies, utility
providers and other persons and entities shall be made only after reasonable
notice to Licensee.
3.5. Prior Contracts and Condition of Title. City does not warrant title to the Use Area or
adjacent City property. Licensee is responsible to complete independent research it
deems necessary regarding condition of title. Licensee's rights hereunder are subject
to all covenants, conditions, restrictions, easements, agreements, liens, reservations,
and encumbrances upon, and all other recorded or unrecorded matters or conditions of
title to, regarding the Use Area.
ARTICLE 4. USE FEE
4.1.
Use Fee. Licensee shall pay to City a fixed annual amount (the “Base Use Fee”) based
on Licensee’s use of the Use Area. The Base Use Fee does not include rental tax or
any other amounts or fees required by this Agreement or other local. State, or Federal
Jurisdictions. Licensee shall pay to City all other amounts required by this Agreement
(together, the Base Use Fee and all other amounts are collectively deemed the “Use
Fee”).
4.2.
Base Use Fee Amount. The amount of the Base Use Fee per each calendar year shall
be Nine Thousand, Four Hundred, Nineteen Dollars and 14/100 cents ($9,419.14).
4.2.1. Prorated First Year Base Use Fee Amount. The amount of the prorated Base
Use Fee for the Commencement Date through June 30, 20____shall be
_________ ^N/A____________ ($________) plus applicable county & city
rental taxes.
4.2.2. Holdover Base Use Fee Amount. In the event of a holdover, Licensee shall
pay City one-hundred fifty percent (150%) of the Base Use Fee amount that
is in effect immediately prior to the holdover commencing.
4.2.3. Holdover Use Fee Payments. Licensee shall pay City one-twelfth (1/12) of
the Holdover Base Use Fee Amount on the first day of the first month of
the holding over and each month thereafter
4.3.
Annual Adjustment. The Base Use Fee, including any holdover Base Use Fee, shall be
adjusted upward on a fixed basis at a rate of three percent (3.0%) per annum on July
of each year of this Agreement (the “Annual Adjustment”).
4.4.
Use Fee Amounts Cumulative. All amounts payable by Licensee hereunder or under
any tax, assessment, or other existing or future ordinance or other law of the City of
Scottsdale or the State of Arizona shall be cumulative and payable in addition to each
other payment required hereunder, and such amounts shall not be credited toward,
substituted for, or set off against each other in any manner.
Page 7 of 30
Contract No. 2026-068-COS
4.5.
Use Fee Payment Schedule. Licensee shall pay City in advance and without demand
the Use Fee in two semi-annual installments on or before each June 25* and December
25* of the Term, except as follows:
4.5.1. First Year Use Fee Payment. Licensee shall pay City the Use Fee for the
first partial year of this Agreement no later than fifteen (15) calendar days
after the Commencement Date.
4.6.
Construction Period Use Fee Credit. A credit (the “Construction Period Credit”)
shall accrue during a Construction Period as defined in Article 8. The credit for the
Construction Period only applies if all the following are true:
4.6.1.1.
Licensee has ceased its business operations within the Use Area
and/or the Licensee Parcel during city approved construction
activities. Licensee’s tables, chairs, and other moveable items
(such as umbrellas, planters, tools, supplies, and other items) are
not permitted to be located in the Use Area during the
Construction Period
4.6.1.2.
Construction of the improvements will take no less than 1 year
and no more than 2 years to complete. Any extension of
construction beyond 2 years must be requested in Avriting by
licensee and approved by City.
4.6.1.3.
Licensee is responsible for providing a copy of the Construction
Permit and final Permit approval as defined in 8.1.1.3, to the
contract administrator to receive the Construction Period Credit.
4.6.2. The Construction Period Credit shall be calculated as follows:
4.6.2.1.
The Base Use Fee amount that is in effect at the beginning of the
Installment Period in which the Construction Period begins;
Divided by three-hundred and sixty-five (365); Divided by two
(2). Multiply the result by the number of full consecutive days
in the Construction Period.
4.6.3. Construction Period Credit Example: Annual installment of $9,000.00 and
a Construction Period of 450 days: $9,000 365 2 x 450 = $5,547.95.
4.6.4. Licensee shall qualify for the Construction Period credit upon final city
approval of the construction. The Construction Period Credit shall be
applied to Licensee’s Account.
4.7.
Dark Period-Use Fee Credit. A credit (the “Dark Period Credit”) against the Base
Use Fee shall accrue during certain periods when Licensee temporarily ceases using
the Use Area as follows:
4,7.1. A Dark Period occurs only if all of the following are true:
Page 8 of30
Contract No. 2026-068-COS
4.7.1.1.
All business operations on the Use Area and/or Licensee’s
Parcel completely cease for not less than sixty (60) consecutive
calendar days and not more than three hundred and sixty-five
(365) consecutive calendar days. Complete cessation of
business operations means that no business of any kind is being
conducted and that the Use Area is completely vacant of
Licensee’s tables, chairs, and other moveable items (such as
umbrellas, planters, tools, supplies, and other items).
4.7.1.2.
Any Dark Period beyond three hundred and sixty-five (365)
days shall result in automatic termination of this Agreement, ^d
Licensee shall be required to remove all improvements and
personal property in accordance with Article 11 of this
Agreerhent.
4.7.1.3.
Licensee gives City written notice of the beginning of a Dark
Period a minimum of ten (10) days before the Dark Period
begins and immediately upon the End of the Dark Period.
4.7.2. Dark Period Credit amount shall be calculated as follows:
4.7.2.1.
The Base Use Fee amount that is in effect at the beginning of the
Installment Period in which the Dark Period begins; Divided by
three-hundred and sixty-five (365); Divided by two (2).
Multiply the result by the number of full consecutive days in the
Dark Period.
4.7.2.2.
Dark Period Credit Example: Armual installment of $5,000.00
with a 61 day dark period: $5,000 365
2 x 61 = $417.81
4.7.3. A Dark Period Credit shall be applied against the next installment payment
of the Base Use Fee following the end of the Dark Period. If this Agreement
ends or if all or any part of a Dark Period Credit for any other reason cannot
be used in conformance with these provisions, then it is extinguished.
4.7.4. All terms and provisions of this Agreement (e.g. Licensee’ s obligations to
provide insurance (less workman’s comp provisions) and indemnification
and to maintain the Use Area in a clean and safe condition) shall remain in
full force during any Dark Period.
4.7.5. City is not responsible to track whether a Dark Period has begun or ended
and is not obligated to accept anything other than proper and timely notice
of the begihning or end of a Dark Period. Without limitation, if Licensee
does not give proper and timely notices of both the beginning and the end
of a Dark Period, then no Dark Period shall be deemed to have occurred
regardless of whether a Dark Period might otherwise have occurred.
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Contract No. 2026-068-COS
4.8. Method of Payment. Unless and until City gives notice otherwise. Licensee shall pay
City as follows:
4.8.1. Licensee may mail payments to: City of Scottsdale, Remittance Processor,
7447 East Indian School Road, Suite 215, Scottsdale, Arizona 85251. To
ensure timely processing of physical payments. Licensee’s payment must:
a) include Licensee’s billing account number from the invoice, b) include
the City contract number as shown on this Agreement, and c) be made in
the exact amount due; or
4.8.2. Licensee may pay online by visiting the website
https://eservices.scottsdaleaz.gov/olpp/Home/Pay, selecting “General
Billing”, entering its email address, account number and pin number, and
then selecting “Make a Payment.”
4.8.3. Late Fees. Use Fee is deemed paid only when City actually receives good
cash payment or a check that is honored when first presented by City for
payment. Should City not receive any Use Fee on or before the date due, a
late fee shall be added to the amount due in the amount of ten percent (10%)
of the amount due. Any Use Fee that is not timely paid shall also accrue
simple interest at the rate of one and one-half percent (1 Vi %) per month
from the date the amount first came due until paid. Licensee expressly
agrees that the foregoing represent fair and reasonable estimates by City and
Licensee of City’s costs (such as accounting, administrative, legal, and
processing costs, etc.) caused by a delay in payment of the Use Fee. City
may allocate payments received from Licensee among Licensee’s
obligations.
For any questions regarding payment processing, please contact City’s accounts
receivables department at accountsreceivable@Scottsdaleaz.gov or (480) 312-2437.
ARTICLE 5. SECURITY DEPOSIT
5.1. Security Deposit. Upon execution of this Agreement, Licensee shall deposit with City,
and maintain with City at all times during the Term, a cash security deposit in the
amount of Sixteen Thousand, One Hundred and 0/100 dollars ($16,100) to guarantee
the faithful performance of this Agreement (the “Security Deposit”). City shall retain
the Security Deposit until the expiration, cancellation, or termination of this
Agreement. Any funds or property of Licensee held by or available to City or any
issuer of a letter of credit, receiver, escrow agent, or other third party under or related
to this Agreement may, in City’s sole discretion, serve as all or a portion of the Security
Deposit guaranteeing Licensee’s faithful performance of this Agreement. Any portion
of the Security Deposit to which Licensee may be entitled after expiration, termination,
or cancellation of this Agreement, net of any setoff or other obligation of Licensee,
shall be paid by City to Licensee without interest no later than sixty (60) days after such
expiration, termination, or cancellation and completion of all of Licensee’s obligations
under this Agreement.
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Contract No. 2026-068-COS
6.1.
6.2.
6.3.
7.1.
8.1.
ARTICLE 6. CONTRACT ADMINISTRATORS
City Contract Administrator. The contract administrator for the City is the Real Estate
Manager or her successor or designee (the “City Contract Administrator”). The City
Contract Administrator shall oversee the administration of this Agreement.
Licensee Contract Administrator. The contract administrator for Licensee is Michael
J. Field or his successor or designee (the “Licensee Contract Administrator”).
Licensee Contract Administrator will serve as a point of contact for the City Contract
Administrator in matters relating to this Agreement.
Change in Contract Administrators. The Parties shall notify each other should either
desire to change its contract administrator or contact information within ten (10) days
of such change.
ARTICLE 7. IMPROVEMENTS BY CITY
Improvements by City. City has not promised, and is not obligated in any manner, to
make any improvements or perform any other construction or other work at the Use
Area or the Adjacent City Properly.
ARTICLE 8. LICENSEE IMPROVEMENTS
Licensee installation of private improvements. Licensee shall complete any
construction of private improvements within the Use Area in accordance with all
requifenients of this Agreement. Improvements plans must be submitted to and
approved by the Scottsdale Planning and Development Department.
8.1.1. Licensee improvements generally. The following provisions govern all
improvements, repairs, installation, removal, demolition, and other
construction work of any description by Licensee whether or not
specifically described herein (collectively "Licensee's Improvements")
upon or related to the Use Area:
8.1.1.1.
All work shall be done strictly at Licensee's expense and paid
for by Licensee. In no event, including without limitation
termination of this Agreement for any reason, shall City be
obligated to compensate Licensee in any manner for any of
Licensee's Improvements or other work provided by Licensee
during or related to this Agreement.
8.1.1.2.
Construction. No construction can occur without a city issued
Permit.
8.1.1.3.
Construction Period: The construction period shall commence
on the date the city issues the required peimit(s) to licensee and
shall end upon the date licensee receives final approval of the
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Contract No, 2026-068-COS
8.2.
improvements by inspection services and/or a Certificate of
Occupancy.
8.1.2. Encroachment Permit. If the Use Area are located in City’s public street
right-of-way, this Agreement serves as an encroachment permit under
Chapter 47 of the Scottsdale Revised Code to the extent of granting
permission from City for Licensee's private improvements to exist on the
Use Area. Licensee shall not be required to obtain any further encroachment
permit for the Licensee’s Improvements for that narrow purpose. However,
Licensee shall obtain additional encroachment permits at Licensee’s
expense as follows:
8.1.2.1.
Licensee shall not alter or perform any work on the Use Ajrea or
Adjacent City Property without first obtaining a permit from
City.
8.1.2.2.
Licensee shall not in any way Obstruct pedestrian or vehicular
traffic in the right-of-way without first obtaining a permit from
City.
8.1.2.3.
Licensee shall apply for such encroachment permits and pay
encroachment permit fees pursuant to normal encroachment
permit processes.
8.1.3. Time for Completion. Licensee shall diligently and expeditiously pursue to
completion the construction of all approved Licensee's Improvements.
Alterations and Modifications. City agrees that Licensee may, from time to time, desire
to alter Licensee’s Improvements, whether by addition or deletion (the “Alterations”),
as may be necessary or desirable for the Use, provided however that:
8.2.1. If Licensee desires to make Alterations, Licensee shall first submit a written
request to City with detailed plans. Licensee shall not make any Alterations
at the Use Area without City’s prior written consent, which shall not be
unreasonably withheld.
8.2.2. City consent shall be conditioned upon Licensee’s: (i) acquiring all
applicable governmental permits; (ii) fiirnishing City with copies of both
the permits and the plans and specifications prior to commencement of the
work; and (iii) compliance with all conditions of said permits and other
laws, covenants, or restrictions of record, regulations, and ordinances in a
prompt and expeditious manner.
8.2.3. Licensee shall complete any Alterations at Licensee’s sole expense.
8.2;4. Licensee shall complete any Alterations in a good and workmanlike manner
and subject to the terrhs and conditions in this Agreement.
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Contract NO: 2026-068-COS
8.3. Improvements upon Termination. Upon expiration, termination, or cancellation of this
Agreement, City, in its sole discretion, shall determine the following:
8.3.1. City may require Licensee to transfer title to Licensee’s Improvements,
equipment, and personal property of every description attached or affixed
to the Use Area. In this event, title to Licensee’s Improvements shall
automatically vest in City without requirement of any deed, conveyance, or
bill of sale. However, if City shall request any documents in confirmation
thereof. Licensee shall promptly execute, acknowledge, and deliver the
same to City. Licensee shall provide and assign to City all operating
manuals, warranties, and similar materials pertaining to Licensee’s
Improvements, equipment, and personal property transferred to City. City
shall have no obligation to reimburse Licensee for all or any portion of the
cost or value of Licensee’s Improvements.
8.3.2. In the alternative. City may require Licensee (at Licensee’s sole expense)
to remove Licensee’s Improvements, equipment, and personal property of
every description attached or affixed to the Use Area. In this event.
Licensee shall repair the Use Area and City Property to match the adjacent
finishes, and Licensee shall restore the Use Area and City property to its
same condition prior to the Commencement Date, including without
limitation reconstructing street and landscaping improvements. Unless City
directs otherwise, wiring, pipes, and conduits shaU be left in a good and safe
condition with each end properly labeled and enclosed in proper junction
boxes.
ARTICLE 9. MAINTENANCE AND UnLlTIES
9.1. Maintenance by Licensee. Licensee shall at all times repair, maintain, and replace the
Use Area and all improvements and personalty thereon at Licensee's sole expense in a
first-class, sound, clean, and attractive manner:
9.1.1. Licensee shall:
9.1.1.1.
Monitor the cleanliness of the Use Area and take all necessary
actions to maintain the cleanliness and safe use of both.
9.1.1.2.
Provide adequate and sanitary handling and disposal, away ftom
the Use Area and Adjacent City Property, of all trash, garbage,
and other refuse. Piling of boxes, cartons, barrels, debris, or
other items outside the Use Area or in a manner visible from
outside the Use Area or in a manner visible to areas open to the
public is prohibited.
9.1.1.3.
Keep gutters and other areas within the Use Area and Adjacent
City Property clear of obstructions, litter, and debris.
9.2. Maintenance by City. City has no maintenance responsibilities regarding the Use Area.
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Contract No: 2026-068-COS
9.3. Utilities. Licensee shall contract for and pay all charges, fees, deposits, and other
amounts for all utilities at the rates applicable thereto. Utility circuits must not be
connected to City’s systems.
ARTICLE 10. BREACH BY LICENSEE
10.1.
Breach by Licensee. Licensee shall comply with, perform, and do each thing required
of Licensee herein, and Licensee's failure to do so shall be a breach by Licensee of this
Agreement.
10.2.
Events of Default. This entire Agreement is made upon the condition that each and
every one of the following events shall be deemed an "Event of Default" and a material
breach by Licensee of Licensee's material obligations under this Agreement;
10.2.1. If Licensee shall be in arrears in the payment of Use Fee and shall not cure
such arrearage vvithin ten (10) days after City has notified Licensee in
writing of such arrearage.
10.2.2. If Licensee shall fail to maintain any insurance required by this Agreement.
10.2.3. If Licensee shall abandon the Use Area.
10.2.4. If any environmental, health, or similar inspector issues any notice of
investigation or violation of health, environmental, or similar regulations in
connection with Licensee's use of the Use Area or determines during any
two or more consecutive inspections that the same violation has been
repeated or that the overall operation falls materially below standards for
first-rate, well-operated, similar facilities in Scottsdale, AZ.
10.2.5. If any assignment of any of Licensee's property shall be made for the benefit
of creditors.
10.2.6. If any representation or warranty made by Licensee in connection with this
Agreement or the negotiations leading to this Agreement shall prove to have
been false in any material respect when made.
10.2.7. If the issuer of any guaranty, letter of credit, bond, or similar instrument
shall fail for any reason to timely and fully honor any request by City for
funds or other performance under the instrument.
10.2.8. If Licensee shall fail to timely pay any taxes or other amounts herein
required to be paid by Licensee to any third person.
10.2.9. If Licensee shall fail to obtain or maintain any licenses, piermits, or other
governmental approvals from City or any other governmental body with
respect to this Agreement, the Use Area, or the Permitted Use.
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Contract No. 2026-068-COS
10.2.10.
If Licensee shall fail to or neglect to do or perform or observe any
other provisions contained herein on its part to be kept or performed and
such failure or neglect to do or perform or observe any of such other
provisions shall continue for a period of thirty (30) days after City has
notified Licensee in writing of Licensee's default hereunder.
10.2.11.
If Licensee shall engage in a pattern of repeated failure (or neglect)
to do or perform or observe any provision contained herein.
10.3. City's Remedies. Upon the occurrence of any Event of Default or at any time thereafter,
City may, at its option and from time to time, without further demand or notice, exercise
any or all or any combination of the following remedies in any order and repetitively
at City's option:
10.3.1. Terminate this Agreement.
10.3.2. Enter into and upon the Use Area, or any part thereof, and expel Licensee
and those claiming by, through, or under it, and remove their effects, if any,
forcibly if necessary, without being deemed guilty of trespass and without
prejudice to any other remedy.
10.3.3. Enforce a lien (which is hereby granted to City) upon Licensee's property
now or at any time hereafter at the Use Area securing all of Licensee's
obligations hereunder:
10.3.4. Cause a receiver to be appointed for the Use Area and for the continuing
operation of Licensee's business thereon.
10.3.5. Pay Or perform, for Licensee's account and at Licensee's expense, any or all
payments or performances required hereunder to be paid or performed by
Licensee.
10.3.6. Abate at Licensee's expense any violation of this Agreement.
10.3.7. Pursue at Licensee's expense any arid all other remedies, legal or equitable,
to \yhich City may be entitled.
10.3.8. Refuse without any liability to Licensee therefore to perform any obligation
imposed on City by this Agreernent.
10.3.9. Be excused from further performance under this Agreement.
10.3.10.
Notwithstanding anything in this Agreement to the contrary,
unilaterally and without Licensee’s or any other person’s consent or
approval, draw upon, withdraw, or otherwise realize upon or obtain the
value of any letter of credit, escrowed funds, insurance policies, or other
deposits, sureties, bonds, or other funds or security held by City or pledged
or otherwise obligated to City by Licensee or by any third party (whether or
Page 15 of 30
Contract No. 2026-068-COS
not specifically mentioned herein) and use the proceeds for any remedy
permitted by this Agreement.
10.3.11.
Insist upon Licensee's full and faithful performance under this
Agreement and upon Licensee's full and timely payment of all Use Fees
during the Term.
10.3.12.
Assert or exercise any other right or remedy permitted by law.
10.3.13.
Notice of Breach. Licensee shall promptly give notice to City of
any event or circumstance that is (or with the passing of time or the giving
of notice or both will become);an Event of Default.
10.3.14.
Non-waiver. Licensee acknowledges Licensee's unconditional
obligation to comply with this Agreement. No failure by City to demand
any performance required of Licensee under this Agreement, and no
acceptance by City of any imperfect or partial performance under this
Agreement, shall excuse such performance or impair in any way City's
ability to insist, prospectively and retroactively, upon full compliance with
this Agreement. No acceptance by City of Use Fee or other performances
hereunder shall be deemed a compromise or settlement of any claim City
may have for additional or further payments or performances. Any waiver
by City of any breach of condition or covenant herein contained to be kept
and performed by Licensee shall not be deemed or considered as a
continuing waiver and shall not operate to bar or otherwise prevent City
from declaring a default for any breach or succeeding breach either of the
same condition or covenant or otherwise. No statement, bill or notice by
City concerning payments or other performances due hereunder shall
excuse Licensee from compliance with this Agreement nor estop City (or
otherwise impair City's ability) to at any time correct such notice or insist
prospectively and retroactively upon full compliance with this Agreement.
No waiver of any description (including any waiver of this sentence or
paragraph) shall be effective against City unless made in writing by a.duly
authorized representative of City specifically identifying the particular
provision being waived and specifically stating the scope of the waiver.
Licensee expressly disclaims and shall not rely on any supposed waiver or
other change or modification, whether by word or conduct or otherwise, not
conforming to this paragraph.
10.3.15.
Reimbursement of City's Expenses. Licensee shall pay to City upon
demand any and all amounts expended or incurred by City in performing
Licensee's obligations.
10.3.16.
Inspection. City shall have access to the Use Area at all times upon
reasonable prior notice (and at all times and without notice if there is an
emergency) for the purpose of examining, inspecting, evaluating, planning,
repairing, deisigning, maintaining, or showing the Use Area or exercising
Page 16 of 30
Contract No. 2026-068-COS
City's other rights hereunder. Licensee shall promptly undertake
appropriate action to rectify any deficiency (identified by City during such
inspections or otherwise) in Licensee's compliance with this Agreement.
This paragraph does not limit City’s other rights of access to the Use Area
elsewhere in this Agreement or otherwise.
10.3.17. Default by City. Notwithstanding anything in this Agreement to the
contrary, if City at any time is required to pay to Licensee any amount or
render any performance, such amount or performance is not due until thirty
(30) days after notice by Licensee to City that the amount has become
payable or that the performance is due. If a cure cannot be affected during
that period. City shall not be in default so long as City commences cure
during the period and diligently prosecutes the cure to completion provided
such cure must be completed within sixty (60) days after it is due.
ARITGLE11. TERMINATION
11.1.
Delivery of Possession. Upon the expiration, cancellation, or termination of this
Agreement, Licensee shall, without demand, peaceably and quietly quit and deliver up
the Use Area to City thoroughly cleaned, in good repair, maintained, and repaired and
in as good order and condition, reasonable use and wear excepted, as the same now are
or in such better condition as the Use Area may hereafter be placed by Licensee or City.
11.2.
Surviving Obligations. Licensee’s obligations existing or arising prior to or
simultaneous with, or attributable to, the expiration, cancellation, or termination of this
Agreements or events leading to or occurring before such expiration, cancellation, of
termination shall survive arid not terminate.
11.3.
Abandoned Property . Any personal property and improvements of Licensee or persons
claiming through Licensee that may be located at the Use Area at the expiration,
cancellation, or termination of this Agreement shall be deemed to be abandoned and
shall automatically at City’s election become the property of City to dispose of at City’s
discretion without accounting to Licensee or to others.
ARTICLE 12. INDEMNITY AND INSURANCE
12.1. Indemnification. To the fullest extent permitted by law. Licensee, its officers,
employees, contractorsj agents and assigns, shall defend, indemnify, and hold harmless
City, its agents, representatives, officers, directors, officials and employees (the
“Additional Insureds”) for, from, and against any arid all claims or harm related to the
performance of Licensee’s obligations under this Agreement (the “Indemnity”).
Without limitation, the Indemnity shall include and apply to any and all allegations,
demands, judgments, assessments, taxes, impositions, expenses, proceedings,
liabilities, obligations, suits, actions, claims (including without limitation claims of
personal injury, bodily injury, sickness, disease, death, property damage, destruction,
loss of use, or other impairment), damages, losses, expenses, penalties, fines, or other
matters (together with all attorneys’ fees, court costs, and the cost of appellate
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Contract No. 2026-068-COS
proceedings) that may arise in any. manner out of this Agreement including those
resulting from any acts, enrors, mistakes, omissions, or negligent, reckless or intentional
actions caused in whole or in part by the Licensee relating to or arising froifi the Use,
including any injury, damages, or cause of action claimed or caused by any of
Licensee’s employees, contractors, subcontractors, agents, or other persons upon or
using the Use Area, City Property, or surrounding areas, including without limitation
claims, liability, harm, or damages caused in part by City or Additional Insureds or
anyone for whose mistakes, errors, omissions, or negligence Licensee or City may be
liable.
12.2. Insurance Policies and Coverages. Immediately following the Effective Date and at all
times prior to the expiration, cancellation, or termination of this Agreement, Licensee
and if applicable^ their sublicensee or tenant, shall obtain and cause to be in force and
effect certain insurance policies and coverages (collectively, the “Policy(ies)”) subject
to certain requirements (i) unless the City specifically waives or reduces the
coverage(s) in writing; as fol lows:
12.2.1. Commercial General Liability. Owner shall procure and maintain in force
and effect commercial general liability insurance with a limit of five million
and 0/100 dollars ($5,000,000.00) for each occurrence, a limit of five
million and 0/100 dollars ($5,000,000.00) for products and completed
operations annual aggregate, and a limit of five million and 0/100 dollars
($5,000,000.00) general aggregate limit per policy year (the “CGL
Policy”). The CGL Policy shall cover liability arising from premises,
operations, independent contractors, products, completed operations,
personal injury, bodily injury, advertising injury, and liability assumed
under an “insured contract" including this Agreement. The CGL Policy
shall cover Licensee’s liability under the indemnity provisions of this
Agreement. The CGL Policy shall contain a “separation of insureds"
clause.
12.2.2. Liquor Liability. Liquor liability insurance in an amount not less than One
Million Dollars ($1,000,000.00) for each claim and Two Million Dollars
($2,000,000.00) for all claims in the aggregate. This coverage is required at
all times when alcohol is being consumed, sold, or served at the Use Area,
or when Licensee holds any type of liquor license for the Use Area, or when
any liquor license otherwise exists with respect to the Use Area.
12.2.3. Automobile Liability. Licensee shall procure and maintain in force and
effect business automobile liability insurance with a combined single limit
of one million and 0/100 dollars ($1,000,000.00) for each occurrence
covering any and all owned, hired, and non-owned vehicles assigned to or
used in any way in connection with Licensee’s use of the City Property (the
“Automobile Policy”). Without limitation, the Automobile Policy shall
cover hazards of motor vehicle use for loading and unloading. If any excess
insurance is utilized to fulfill the requirements of the Automobile Policy,
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Contract No. 2026-068-GOS
the excess insurance shall be “follow form” equal or broader in coverage
scope than underlying insurance.
12.2.4. Workers' Compensation. Licensee shall procure and rnaintain in force and
effect such workers’ compensation and similar insurance as is required by
law and employer's liability insurance with a minimum limit of one hundred
thousand and 0/100 dollars ($100,000.00) for each accident, one hundred
thousand and 0/100 dollars ($100,000.00) disease for each employee, and
five hundred thousand and 0/100 dollars ($500,000.00) policy limit for
disease. If Licensee has no employees, then Licensee shall provide a “sole
proprietor waiver” signed by Licensee in form and content acceptable to
City. All contractors and subcontractors must also provide this same
insurance policy and coverages.
12.2.5,. Professional Liability. Licensee shall procure and maintain in force and
effect professional liability insurance covering errors and omissions arising
out of the work or services performed by Licensee or anyone employed by
Licensee with a liability insurance limit of two million and 00/100 dollars
($2,000,000.00) each claim and aggregate.
12.2.6. Other Insurance. Licensee shall procure and maintain in force and effect
any other insurance City may reasonably require from time to time to
protect City, the Additional Insureds, the City Property, surrounding
property. Licensee, or the activities carried on or about the City Property.
12.2.7. Changes to Policies. City may increase the amount or type of any insurance
to account for inflation, changes in risk, or any other factor that City
reasonably determines to affect the prudent amount of insurance to be
provided.
12.2.8. Additional Requirements of Policies. The Policies shall include the
following:
12.2.8.1.
Additional Insureds. City of Scottsdale, its agents,
representatives, officers, directors, officials and employees, shall
be named as Additional Insureds under the CGL Policy, the
Automobile Policy, and any other insurance City may require.
12.2.8.2.
Insurance Primary. The Policies shall be primary insurance with
respect to this Agreement.
12.2.8.3.
Waiver of Subrogation. The Policies, except Professional
Liability, if applicable^ shall waive rights of recovery
(subrogation) against City, its agents, representatives, officers,
directors, officials and employees for any claims arising out of
work or services performed by Licensee under this Agreement.
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Contract No. 2026-068-COS
12.2.8.4. Coverage Term. The Policies shall be maintained in full force
and effect until all work and services required by this Agreement
are satisfactorily performed, completed, and formally accepted
by City, except if any of the Policies are written on a “claims
made” basis, coverage shall extend, either by keeping coverage
in force or purchasing an extended reporting option, for three (3)
years past the expiration, cancellation, or termination of this
Agreement, as evidenced by the submission of annual COIs (as
defined below) citing applicable coverage is in force and
contains provisions as required herein for the three-year period.
12.2.9. Acceptable Insurers. Licensee shall purchase and maintain the Policies, at
its own expense, with insurance companies duly licensed by the State of
Arizona (admitted insurer) with an AM Best, Inc. rating of B ++ 6 or above
or an equivalent qualified unlicensed insurer by the State of Arizona (non-
admitted insurer) with policies and forms satisfactory to City unless
otherwise agreed upon in writing by the parties. Failure to maintain
insurance as specified may result in termination of this Agreement in City’s
sole discretion.
12.2.10.
Policy Deductibles and Self-Insured Retentions. The Policies may
contain deductibles or self-insured retention amounts. Such deductibles or
self-insured retention shall not be applicable with respect to the policy limits
provided to City. Licensee shall be solely responsible for any deductible or
self-insured retention amount. City, in its discretion, may require Licensee
to secure payment of the deductible or self-insured retention by a surety
bond or irrevocable and unconditional Letter of Credit.
12.2.11.
Evidence of Insurance. No later than thirty (30) days after the
Effective Date and each year on the annual anniversary of the
Commencement Date, Licensee shall furnish City with Certificate(s) of
Insurance (the “CGI(s)”) or formal mdorsements issued by Licensee’s
insurer(s) as evidence that the Policies are placed with acceptable insurers
and provide the required coverage, conditions, and limits of coverage and
that such coverage and provisions are in full force and effect. If a COI is
submitted as verification of coverage. City shall reasonably rely upon the
COI as evidence of coverage, but such acceptance and reliance shall not
waive or alter in any way the insurance requirements or obligations of this
Agreement. Each COI shall identify the contract number, location, the date
of this Agreement and the Parties ’ names and shall be sent to the designated
City Contract Administrator and to realestate@scottsdaleaZigov. COIs
submitted without referencing the appropriate contract number, location,
and reference to this Agreement may be rejected, returned, and discarded.
If any of the Policies expire or are cancelled prior to the expiration,
cancellation, or termination of this Agreement, Licensee shall forward new
certificates within ten (10) days after the expiration or cancellation date.
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Contract No. 2026-068-COS
12.2.12.
City’s Election to Provide Insurance. City is not required to carry
any insurance covering or affecting the City Property, Use Area, or the Use.
If Licensee fails to acquire all or any part of the insurance required by this
Agreement, City may elect to provide such insurance (with or without any
other real property City may own or control), and Licensee shall pay to City
the costs of such insurance as reasonably determined by City. Licensee
shall provide all required insurance not otherwise provided by City. Any
insurance or self-insurance maintained by City shall not contribute to
Licensee’s insurance.
12.2.13.
Insurance Proceeds. All property insurance proceeds (whether
actually paid before or after the Term) shall be paid directly to City for
City's use in compensating City for the loss; for protecting City, the City
Property, and the public from every other loss or exposure suffered by City;
and for rebuilding the City Property and satisfying and securing Licensee’s
obligations hereunder. Any remaining proceeds shall be allocated among
City and Licensee as their interests may appear.
12.2.14.
Insurance to be Provided by Others. If Licensee contracts or
12.3.
otherwise delegates any work er use of the City Property or Use Area under
this Agreement, including the use of any contractors or subcontractors and
other persons occupying, working on or about, or using the City Property
or Use Area pursuant to this Agreement, Licensee shall cause said delegate
to execute and provide to City a writing executed by the delegate evidencing
the delegate agrees to provide at least the same indemnification and
insurance provisions set forth herein. Licensee is responsible for obtaining
COls verifying that the insurance requirements have been obtained by the
delegate.
12.2.15. No Representation of Coverage Adequacy. By requiring insurance
herein, the City does not represent that coverage and limits will be adequate
to protect Licensee, City, or others. City reserves the right to review any
and all of the insurance policies and endorsements cited in this Agreement
but has no obligation to do so. Failure to demand evidence of full
compliance with the insurance requirements stated in this Agreement or
failure to identify any insurance deficiency will not relieve the Licensee
from, nor be construed or considered a waiver of, its obligation to maintain
the required insurance at all times during the performance of this
Agreement.
Indemnities and Insurance Cumulative. Licensee’s obligations to indemnify do not
diminish in any way Licensee’s obligations to insure; and Licensee’s obligations to
insure do not diminish in any way Licensee’s obligations to indemnify. Licensee’s
obligations to indemnify and provide insurance are in addition to, and do not limit, any
and all other liabilities or obligations of Licensee under or connected with this
Agreement. The amount and type of insurance policies and coverages required by this
Page 21 of 30
Contract No. 2026-068-COS
Agreement will in no way be construed as limiting the scope of the indemnities or other
requirements of this Agreement.
ARTICLE 13. CONDEMNATION
13; 1. Condemnation. If any part of the Use Area shall be acquired or condemned by eminent
domain for any public or quasi-public use or purpose, and if such taking or
condemnation shall render the Use Area unsuitable for the Permitted Use in City’s
opinion, then the Term shall cease and terminate as of the date of the condemnor taking
possession in such proceeding and Licensee shall have no claim to any condemnation
proceeds. If a partial taking or condemnation is not extensive enough to render the Use
Area unsuitable for the Permitted Use, Licensee shall restore the Use Area to a
condition comparable to its condition at the time of such condemnation less the portion
lost in the taking and this Agreement shall continue in full force and effect, with
condemnation proceeds being used to restore the Use Area and any excess being
retained by City. Licensee acknowledges that City from time to time may have or
acquire, and may use, the power to condemn the Use Area or any interests therein or
rights thereto. Licensee on behalf of all persons claiming under this Agreement
unconditionally and irrevocably waives any right to contest City’s power to take or the
proper exercise of such power. This paragraph does not limit City’s power to terminate
this Agreement as provided elsewhere in this Agreement.
ARTICLE 14. DAMAGE TO OR DESTRUCTION OF USE AREA
14.1. Damage to or Destmction of Use Area. If the Use Area is damaged by fire, explosion,
the elements, the public enemy, or other casualty through no fault of Licensee and the
cost of repair exceeds Three ITtousand Dollars ($3,000.00), Licensee may elect within
thirty (30) days after the damage to give notice to City terminating this Agreement.
Otherwise, Licensee shall restore the damage to the Use Area at Licensee’s sole cost
and expense.
ARTICLE 15. COMPLIANCE WITH LAW
15.1. Compliance with Law. Licensee shall perform its obligations under this Agreement in
accordance with all federal, state, county and local laws, ordinances, regulations or
other rules or policies as are now in effect or as may hereafter be adopted or amended.
15.2.
Applicability of Municipal Law.
municipal laws as follows:
Without limitation. Licensee shall comply with
15.2.1. Licensee acknowledges that this Agreement does not constitute, and City
has not promised or offered, any type of waiver of or agreement to waive
(or show any type of forbearance, priority, or favoritism to Licensee with
regard to) any law, ordinance, power, regulation, tax, assessment, or other
legal requirement now or hereafter imposed by the City of Scottsdale or any
other governmental body upon or affecting Licensee, Use Area, Adjacent
City Property, or Licensee's use of Use Area or Adjacent City Property.
Page 22 of 30
Contract No. 2026-068-003
15.2.2. In the case of an ordinance or other law of the City authorizing a credit,
reduction in tax or amount charged or assessed, or any other benefit as a
result of performances rendered under this Agreement, Licensee expressly
waives, relinquishes, and repudiates all such benefits with respect to
performances rendered under this Agreement.
15.2.3. This Agreement does not impair City’s power to enact, apply, or enforce
any laws or regulations or exercise any governmental powers affecting in
any way Licensee, the Use Area, the Adjacent City Property, or the
Licensee’s Parcel.
15.2.4. City's rights and remedies hereunder for Licensee’s failure to comply with
all applicable laws supplement and are in addition to and do not replace
otherwise existing powers of the City of Scottsdale or any other
governmental body.
15.3.
Food Laws. Licensee shall at all times comply with all applicable federal, state, City,
county, and other lawfully promulgated health, food, and drug rules, regulations,
standards, laws, and ordinances. Licensee shall at its own expense obtain and maintain
all necessary licenses and permits permitting the sale of food and beverages at the Use
Area.
15.4.
Permits. Licensee shall obtain at its own expense all building or other permits in
connection with any construction performed by Licensee and shall comply with all
zoning, building safety, fire, and similar laws and procedures of every description.
15.5.
Governmental Relations. Licensee shall conduct its activities at the Use Area in
coordination with City as necessary to maintain good relations with all governmental
entities having jurisdiction over the Use Area and shall immediately give City notice
of any actual or threatened dispute, violation, or other disagreement relating to the Use
Area.
15.6.
Public Safety. If City determines that any Licensee equipment, improvements, or
activities present a hazard to the public or to City, to City’s equipment or facilities, or
to City’s ability to safely and conveniently operate the Use Area, the adjoining Right-
of-way, or other nearby public lands, or perform City’s utility, public safety, and other
public, health, safety, and welfare functions, Licensee shall immediately remedy the
hazard, comply with City’s requests to secure the Use Area, the adjoining Right-of-
way, or other nearby public lands, and otherwise cooperate with City at no expense to
City in performing any and all of such functions.
15.7.
Security Requirements. Lieensee shall participate in any public safety program
promulgated from time to time by the City of Scottsdale Police Department or other
law enforcement agency selected by City. Licensee shall reasonably cooperate with
City and the City of Scottsdale Police regarding concerns and countermeasures
affecting security and related risks of business and other operations and activities at
and near the Use Area.
Page 23 of 30
Contract No. 2026-068-COS
15.8. Taxes. Liens and Assessments. In addition to all other Use Fees herein provided.
Licensee shall pay, when due and as the same become due and payable, all taxes and
general and special fees, charges, and assessments of every description which during
the Term may be levied upon or assessed against the Use Area, the operations
conducted therein, any Use Fees paid or other performances under this Agreement by
either party, and all possessory interest in the Use Area and improvements and other
property thereon, whether belonging to the City or Licensee; and Licensee agrees to
indemnify, defend, and hold harmless City and the Use Area and such property and all
interest therein and improvements thereon from any and all such taxes and assessments,
including any interest, penalties, and other expenses that may be imposed, and from
any lien therefor or sale or other proceedings to enforce payment thereof. Licensee may
contest, but not the right to refuse to timely pay, any taxes and assessments. City may
from time to time to require that all of the foregoing payments be made by Licensee
through City. Licensee shall pay all sales, transaction privilege, and similar taxes.
ARTICLE 16. ASSIGNMENTS
16.1. Assignments Generally. Licensee shall not voluntarily or involuntarily assign, convey,
or transfer the right to use the Use Area or any interest therein or any rights under this
Agreement, in whole or in part, or allow others to use, occupy, manage, control, or
operate the Use Area, in whole or in part, without the prior written consent of City. If
Licensee will have a tenant, upon notification of the identity of the tenant. City in its
sole discretion may consent to Licensee’s tenant’s use of the Use Area solely for
outdoor dining as set forth in this Agreement. The City may revoke its consent in its
sole discretion in the event of a breach of any term of the Agreement by Licensee or its
tenant.
16.1.1. Assignment Fee. If Licensee desires to assign this Agreement, Licensee
shall pay to City the sum of One Thousand Dollars ($1,000.00) as a fee for
legal and administrative expenses before making any request for consent to
an assignment.
16.1.2. Form of Assignment. Any assignment shall be by agreement in form and
content acceptable to the City. Without limitation, any assignment shall
specify and require that each assignee acquiring any interest under this
Agreement shall assume, be bound by, and be obligated to perform the
terms and conditions of this Agreement and that, if City terminates this
Agreement because of default by Licensee, City at City's sole option may
succeed to the position of Licensee as to any assignee of Licensee without
liability for any prior breaches or performances by persons other than City.
16.1.3. Assignment Approvals. City has the absolute right for any reason or for no
reason in its sole discretion to give or withhold consent to any assignment.
City may elect to amend this Agreement as a precondition to consenting to
any assignment.
Page 24 of 30
Contract No. 2026-068-COS
16.2. Prohibited Assignments. A prohibited assignment shall be void and vest no rights in
the assignee. Notwithstanding the foregoing, City may, in its sole discretion and in
addition to all other remedies available to City under this Agreement or otherwise,
collect the Use Fee from an assignee and apply the net amount collected to the Use Fee
required to be paid hereunder or Void the assignment, all without prejudicing any other
right or remedy of City under this Agreement. No cure or grace periods shall apply to
prohibited assignments or to enforcement of this Agreement against an assignee who
did not receive City's prior written consent.
16.3. Liens Prohibited. Licensee shall not voluntarily or involuntarily pledge, lien, mortgage,
grant a security interest or deed of trust, or allow any jud^ent, claim, demand, or lien
(collectively hereinafter, “Liens”) to accrue against the Use Area.
16.4.
Lien Payment. Licensee: shall pay all Liens as the same become due, and in any event
before any judicial or non-judicial action or proceeding is commenced to enforce a
Lien. Licensee shall pay, indemnify, defend, and hold City and the Use Area free and
harmless for, from, and against any and all Liens, together with all liability, costs, and
expenses in connection therewith, including attorney's fees. City may at any time post
and maintain on the Use Area such notices, pay such amounts, file or record such
notices, or take such other actions as City may deem necessary to protect City and its
property interests against all Liens.
16.5.
Assignment of Licensee’s Parcel. No grant or other transfer of fee title to the
Licensee’s Parcel shall occur without a corresponding assignment of Licensee’s rights
under this Agreement to the same grantee. In addition to all of City's other remedies.
City may unilaterally terminate this Agreement if this Agreement is not assigned to and
assumed by any grantee of the Licensee’s Parcel, even if the assignment is prevented
by City’s failure to consent to such assignment.
ARTICLE 17. MISCELLANEOUS
17.1. Amendments and Assignments. This Agreement may only be amended or assigned by
a formal writing executed by the licensee and contract administrator.
17.2.
Limited Severability. If any term, condition, covenant, stipulation, agreement, or
provision herein contained (a “Provision”) is held to he invalid or unenforceable for
any reason, the invalidity of such Provision shall in no way affect any other Provision
herein contained. Further, this Agreement shall be deemed automatically reformed to
secure to City the legal, equitable, practical, and other benefits of the Provisions of this
Agreement as written to the very maxirnum extent permitted by law.
17.3.
Conflicts of Interest. No member, official, or employee, of City shall have any direct
or indirect interest in, nor participate in any decision relating to, this Agreement that is
prohibited by law.
17.4. No Partnership. This Agreement and the transactions and performances contemplated
hereby shall not create any partnership, joint venture, or similar relationship between
the parties.
Page 25 of 30
eontract No. 2026-068-COS
17.5. Nonliability of City Officials and Employees. No member, official, representatiye, or
employee of City shall be personally liable or otherwise responsible to any party or to
any successor in interest to any party for any default or breach by City or for any
performance or amount that may become due to any party or successor or with respect
to any obligation of City or otherwise under the terms of this Agreement or related to
this Agreement.
17.6.
Time of Essence. Time is of the essence of each and eyery proyision of this Agreement.
17.7.
Integration. This Agreement constitutes the entire agreement between the parties with
respect to the subject matter hereof and supersedes any prior agreement, understanding,
negotiation, or representation regarding the subject of this Agreement.
17.8.
Construction. Wheneyer the context of this Agreement requires, the singular shall
include the plural, and the masculine shall include the feminine. This Agreement shall
be construed according to its plain meaning and neither for nor against any party hereto.
Licensee acknowledges that the Use Fee payable hereunder was negotiated in light of
the plain meaning of this Agreement, and this Agreement shall therefore be interpreted
according to its plain meaning and without regard to rules of interpretation, if any, that
might otherwise fayor Licensee.
17.9.
Paragraph Headings. The paragraph headings contained herein are for conyenience in
reference only and not intended to define or limit the scope of any proyision of this
Agreement.
17.10. No Third-Party Beneficiaries. Except for limited proyisions, if any, expressly stated to
be “for the benefit of’ a third party, no person or entity shall be a third-party beneficiary
to this Agreement or shall haye any right or cause of action hereunder. City shall haye
no liability to third parties for any approyal of plans. Licensee’s construction of
improyements. Licensee’s negligence. Licensee’s failure to comply with the proyisions
of this Agreement (including any absence or inadequacy of insurance required to be
carried by Licensee), or otherwise because of the existence of this Agreement.
17.11. Attorneys' Fees. If any action, suit, or proceeding is brought by either party to enforce
compliance with this Agreement or for failure to obserye any of the terms of this
Agreement or to yindicate or exercise any rights or remedies hereunder, the party which
does not preyail shall pay all costs of such action or suit and all expenses of such action
or suit together with such sum as the court may adjudge reasonable as attorneys' fees
to be allowed in said suit, action, or proceeding.
17.12. Choice of Law. This Agreement shall be goyemed by the laws of the State of Arizona.
Exclusiye proper yenue for any action regarding this Agreement shall be Maricopa
County.
17.13. Approyals and Inspections. All approyals, reyiews and inspections by City under this
Agreement or otherwise are for City’s sole benefit and not for Licensee’s benefit.
Page 26 of 30
Contract No. 2026-068-COS
17.14. Statutory Cancellation Right. In addition to its other rights hereunder, City shall have
the rights specified in A.R.S. § 38-511.
17.15. Notices. Notices hereunder shall be given in writing personally served upon the other
party or mailed by registered or certified mail, return receipt requested, postage prepaid
addressed to:
If to City:
Real Estate Asset Manager
City of Scottsdale
7447 East Indian School Road, Suite 205
Scottsdale, AZ 85251
Copies to:
City Attorney
City of Scottsdale
3939.North Drinkwater Boulevard
Scottsdale, AZ 85251
If to Licensee: 4251 LLC
Michael J. Field
7756 E 3^'^ St.
Scottsdale, AZ 85251
Copies to:
Greg A. Field
5937 E Windsor Aye.
Scottsdale, AZ 85257
or to such other street address within Maricopa County, Arizona as may be designated
by the respective parties in writing from time to time. Notices to Licensee may instead
be hand delivered to Licensee’s Parcel. Service of notice by mail shall be deemed to
be complete forty-eight (48) hours after the notice is deposited in the United States
mail.
Should City create invoices, they may be sent to Licensee via email to:
giligins@hotmail.com
17.16. Funding. Notwithstanding any provision of this Agreement, if funds necessary to fulfill
City’s obligations under this Agreement are not appropriated by the Scottsdale City
Council, City may terminate this Agreement by ten (10) days’ notice to Licensee.
Termination in accordance with this provision shall hot constitute a breach of this
Agreement by City . No person will be entitled to any compensation, damages, or other
remedy from City if this Agreement is terminated pursuant to the terms Of this
subsection.
Page 27 of 30
Contract No. 2026-068-COS
17.17. Further Assurances. Licensee agrees to do such further acts aiid things and to execute
and deliver such additional agreements and instruments as City may reasonably require
to consummate, evidence, confirm, and carry out the agreement contained herein.
17.18. Survival of Liability. All obligations of Licensee hereunder and all warranties and
indemnities of Licensee hereunder shall survive termination of this Agreement for any
reason.
[signatures on following pages]
Page 28 of 30
Contract No: 2026-068-eOS
IN WITNESS WHEREOF, the Parties have executed this Agreement by signing their signatures
as of the day and date first written above.
LICENSEE:
4251 LLC
an Arizona limited liability company
By:______________^______________________
Name: Michael J. Fields
Its: Manager
ACKNOWLEDGMENT
State of Arizona
County of Maricopa
)
)ss
)
The foregoing instrument was acknowledged before me this
day of
2026 by Michael J. Fields, Manager, of4251 LLC, an Arizona limited liability company.
My Commission.Expires:
__________________________________
Notary Public
Page 29 of 30
Contract No. 2026-068-COS
CITY;
CITY OF SCOTTSDALE,
an Arizona municipal corporation
ATTEST:
Ben Lane, City Clerk
Lisa Borowsky, Mayor
APPROVED AS TO FORM:
OFFICE OF THE CITY ATTORNEY
0
<r f
Lu
. Santaella, City Attorney
By: Joe Padilla, Deputy City Attorney
Page 30 of 30
Contract No. 2026-068-COS
EXHIBIT "A"
Page 1 of 2
Part of the southwest quarter of Section 23, Township 2 North, Range 4
East of the Gila and Salt River Base and Meridian, Maricopa County,
Arizona.
Said DINING AREA being located in WINFIELD SCOTT PLAZA
UNIT TWO, a subdivision located in the southwest quarter of Section 23,
Township 2 North, Range 4 East of the Gila and Salt River Base and
Meridian, Maricopa County, Arizona as recorded in Book 67 of Maps,
Page 41, Records of Maricopa County, Arizona, nriore particularly
described as follows:
BEGINNING at the southwest corner of Lot 69, of said WINFIELD
SCOTTS PLAZA UNIT TWO, said point also being the intersection of the
east right-of-way line of Winfield Scott Plaza and the North right-of-way
line of 4**’ Avenue (5*’’ Avenue as referenced on said plat);
Thence North 89“ 42' 57" West (bearings based on WINFIELD
SCOTT PLAZA UNIT TWO, centerline of 4*'’ Avenue (also known as S***
Avenue) having a bearing of South 89“ 42' 57" East) on the extended
south property line of said Lot 69, WINFIELD SCOTT PLAZA UNIT TWO,
a distance of 12.95 feet;
Thence North 00“ 18' 22" East, a distance of 45.61 feet;
Thence North 30“ 18" 22" East, a distance of 1.83 feet;
Thence North 60“ 18" 22" East, a distance of 12.38 feet;
Thence North 90“ 00" 00" East a distance of 1.02 feet to a point on
the west property line of Lot 70, said WINFIELD SCOTT PLAZA UNIT
TWO, said line also being said east right-of-way line of Winfield Scott
Plaza;
Thence South 00“ 00' 00" West along the west property line of said
Lots 70 and 69, WINFIELD SCOTT PLAZA UNIT TWO, a distance of
53.39 feet to the point of BEGINNING.
Said DINING AREA contains an area of 644 square feet or 0.0148 acres,
more or less.
{Per the description provided by Timothy O'Neili, RLS No. 17403, 2/19/2011)
Contract No. 2026-068-COS
EXHIBIT A
Page 2 of 2
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Contract No. 2026-068-COS
Exhibit B
Licensee Parcel
Lots 69,70, and 71, WINFIELD SCOTT PLAZA UNIT TWO, according to Book 67 of
Maps, page 41, records of Maricopa County, Arizona.
Contract No. 2026-068-008
Page 1 of 1