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HomeMy WebLinkAboutresolution.council.038-18 RESOLUTION #38 (Series of 2018) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, APPROVING A LEASE AGREEMENT BETWEEN THE CITY OF ASPEN AND ELK MOUNTAIN HOSPITALITY, LLC., AND AUTHORIZING THE CITY MANAGER TO EXECUTE A FINAL LEASE AGREEMENT ON BEHALF OF THE CITY OF ASPEN, COLORADO. WHEREAS, there has been submitted to the City Council a Lease Agreement between the City of Aspen and Elk Mountain Hospitality LLC regarding the lease in the Wheeler Opera House of the premises now known as Wheeler Restaurant Space, a draft copy of which is attached hereto as Exhibit «A» NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF ASPEN, COLORADO, That the City Council of the City of Aspen hereby approves the entry into a Lease Agreement between the City of Aspen and Elk Mountain Hospitality LLC regarding the lease in the Wheeler Opera House of the premises now known as Wheeler Restaurant Space, a draft copy of which is attached hereto and incorporated herein, and does hereby authorize the City Manager of the City of Aspen to execute a final lease agreement on behalf of the City of Aspen in substantially the form attached hereto, subject to the approval of the City Manager and the City Attorney. INTRODUCED, READ AND ADOPTED by the City Council of the City of Aspen on the 26th day of February, 2018. Stev Skadr'on, Iayor I, Linda Manning, duly appointed and acting City Cerk do certify that the foregoing is a true and accurate copy of that resolution adopted by the City Council of the City of Aspen, Colorado, at a meeting held February 26, 2018. aim `inda Manning, City Clerk Wheeler Restaurant Space Lease LEASE AGREEMENT WHEELER OPERA HOUSE RESTAURANT THIS LEASE AGREEMENT is made and entered into this5 day ofllrek 2018 by and between the City of Aspen, 130 South Galena Street, Aspen, Colorado 81611 ("Landlord") and Elk Mountain Hospitality„L-L-E, 371 Market Street, Basalt, Colorado 81621 ("Tenant"). 'WITNESSETH: WHEREAS, Landlord is the owner of the real property and all of the improvements thereon, known as the Wheeler Opera House, 328 East Hyman Avenue, Aspen, Colorado 81611; and, WHEREAS,the parties hereto desire to enter into a Lease Agreement for a certain portion of the Wheeler Opera House as more fully described herein. NOW, THEREFORE, for and in consideration of the payments to be made hereunder, and in further consideration of the terms,conditions, covenants and mutual promises contained herein, the parties hereto agree as follows: 1. Lease of Premises. Landlord does hereby rent to Tenant the following described premises ("Leased Premises") subject to the covenants and conditions hereinafter contained, to wit: That portion of the first floor of the Wheeler Opera House currently occupied by the Fiercely Local LLC d/b/a Justice Snow consisting of 2618 net leasable square feet in the Wheeler Opera House, all as more fully described and depicted in the attached Exhibit A. In addition, the Leased Premises shall include the Additional Leased Premises described in paragraph 44, below for the term, at the rents, and upon the conditions and covenants hereinafter set forth. Taking possession of the Leased Premises by Tenant shall constitute acknowledgment that such premises are in good condition and neither the Tenant nor Landlord shall be required to make any alterations thereto, except as set forth herein, unless agreed to in advance and in writing by Landlord. 2. Term. Unless sooner terminated, as provided herein, the initial term of this Lease Agreement shall be for a period of five (5) years (the "Initial Term"). The Initial Term shall commence at 12:00 noon on May 1, 2018, and shall expire at 12:00 noon on April 30, 2023. (Should the Leased Premises be fully ready and allow operations to fully commence prior to May 1, 2018, a rider may be agreed to by the parties hereto and rider attached to this Lease Agreement for a separate mutually agreeable financial arrangement prior to commencement of the Initial Term of this Lease Agreement.) The lease shall be renewable, with one hundred twenty days written notice, at the Tenant's option, for an additional five (5)years so long as the tenant is not in breach and has not been in breach of any terms of this lease during the initial term. The lease shall be Page 1 of 24 Wheeler Restaurant Space Lease renewable, with one hundred twenty days written notice, at the Tenant's option, for a second five (5)years so long as the tenant is not in breach and has not been in breach of any terms of this lease during the initial or first renewal term. Rent shall commence May 1, 2018. A Lease Year shall be a calendar year starting on the commencement date of the Initial Term through 12:00 noon of the following calendar year and each calendar year thereafter. Tenant's occupancy of the Leased Premises shall be limited by paragraph 5, below. All terms of this lease apply to the second term. 3. Rent. Tenant agrees to pay Landlord as rent for the premises a Base Rent and a Percentage of Gross Sales as set forth herein. a. The Base Rent for the initial Lease Year shall be $125,664 ($ 48 /square foot of leasable space.) The Base Rent shall be payable in monthly payments of $ 10,470.33_. After the initial Lease Year and every Lease Year thereafter, including any Lease Years after the Initial Term,the Base Rent shall be adjusted upward, based upon increases(if any)in the cost of living during the preceding Lease Year using the"Price Index",all as more fully described in Exhibit B appended hereto and made a part hereof.The Base Rent shall be payable in equal monthly installments due on the first day of each calendar month during the term hereof without prior demand. b. The Percentage of Gross Sales for each Lease Year, including Lease Years during any renewable term, shall be 8% of Gross Sales in excess of that years Breakpoint as defined in paragraph 3.17., below. C. The term "Gross Sales" as used in this Lease Agreement shall mean the full amount of the actual sales price of all food, merchandise or services sold for cash or credit in or from the Leased Premises by the Tenant. The figure for Gross Sales shall include deposits not refunded to customers, orders of any kind received or filled at the Leased Premises, receipts from vending machines located upon the Leased Premises, and any other receipts which the Tenant ordinarily would credit to its business. Each credit or installment sale shall be treated as a sale for the full price in the month it is made, and there shall be no deductions for uncollected accounts or bad debts. The following items, if applicable, shall be deducted from Gross Sales: I) refunds or customer discounts or complementary goods or services for marketing or not-for-profit purpose included in Gross Sales; 2) returns to shippers and manufacturers; 3) sales of trade fixtures or operating equipment; 4) sums received in settlement of claims of loss or damage of merchandise; 5) retail sales tax recorded at the time of each sale and expressly charged to the customer; 6) co-operative advertising revenues provided by suppliers; and 7) All property and sales taxes paid by Tenant. d. Within thirty (30) days after the end of each Lease Year, Tenant shall deliver to Landlord a written statement signed by Tenant or by some other person acceptable to Page 2 of 24 Wheeler Restaurant Space Lease Landlord, setting forth the amount of Tenant's Gross Sales for the preceding Lease Year. The accountant or other person shall certify that the Gross Sales have been computed in accordance with the definition given herein,and the statement shall be sufficiently detailed to show it was in fact prepared in accordance with such definition. If a Percentage Rent is due in any Lease Year Tenant shall pay the amount of the Percentage Rent to Landlord within ninety(90) days of delivery of the annual statement. i) During the term of the Lease, Tenant shall keep accurate records of all his operations. These records shall conform to generally accepted accounting practices, and shall include records of gross sales and of receipts and deliveries of all merchandise.Tenant shall keep all the documents relating to Tenant's operations for at least thirty-six (36) months from the end of the Lease Year to which they apply. If any audit is required, or Tenant and Landlord disagree about the rent, Tenant will keep its records until the audit is completed or the disagreement is settled. ii) At any reasonable time, and following at least twenty-four (24) hours notice in writing to Tenant, Landlord or Landlord's authorized representative may audit any of Tenant's records of Gross Sales. If, when Landlord audits the records for a Lease Year based on normal accounting procedures, it finds that the Tenant has understated its Gross Sales for the Lease Year by one percent (I%) or more, Tenant shall be required to pay for the audit, and shall promptly deliver to Landlord the difference Tenant owes it, plus interest on such difference at the rate of eighteen percent (18%) per annum from the first day of the current Lease Year to the date such difference is paid. If such audit discloses that Tenant has understated his Gross Sales for that Lease Year by one percent (1%) or more, Landlord shall be permitted to treat such event as a material default hereunder. In this matter, the report of Landlord's accountant shall be binding and conclusive. e. In addition to the accounting to be provided to Landlord described above, Tenant shall provide Landlord with(i)copies of the quarterly sales and withholding tax statements it provides to the appropriate authorities, with a notation thereon by Tenant's accountants reflecting the portion of the income reflected on those returns that is derived from Gross Sales; and, (ii)statements prepared by Tenant's accountants reflecting the Gross Sales and sales taxes paid by Tenant for each calendar quarter. f The term '`Breakpoint"as used in this Lease Agreement shall mean the Base Rent applicable to any Lease Year divided by .08 4. Eguiament. Fixtures and Finishes Provided by Landlord and Tenant. a. The parties hereby agree that the Landlord shall deliver: • Basic, four-walled space or equivalent for tenant's operational purpose including Page 3 of 24 Wheeler Restaurant Space Lease utility hookups including electrical service, panels, and rough-ins to code-required j-boxes as currently installed and plumbing service as currently configured including water supply lines, water heater, and sanitary drains to rough-ins • ANSI compliant lift as currently installed • Fire suppression system as currently installed • Kitchen exhaust system as currently installed • Existing Grease trap system as currently installed • HVAC system as currently installed • Exterior awnings as currently installed • Mechanical Equipment to furnish heating, cooling, and ventilation to rough-ins: ANSI compliant restrooms with basic fixtures: (1) ADA-compliant Lavatory fixture per bathroom, (1) ADA-compliant, conventional toilet per bathroom, (1) Urinal in Men's room, and ADA-required grab bars and Pipe-wraps and rough-ins The coordination of finishes between the landlord and tenant is imperative. b. The parties agree that the Tenant shall supply: • Kitchen and bar equipment • All interior finishes including flooring and wall treatments • Syrup/mixer/beer runs to the bar • POS system • DATA, Phone, AV System • Custom sprinkler head trims; Additional sprinkler heads and/or service upgrades required to address current layout/design changes • Coolers, freezers and any other chilling apparatus • Paper towel dispensers, soap dispensers, hand-dryer units, sanitary napkin dispensers and waste receptacles, stall partition dividers and related hardware, and decorative lighting and all related in-wall rough-in and/or blocking • Custom work • Anything else necessary to operate the restaurant effectively and efficiently 5. Occupancy of the Leased Premises. Tenant shall be entitled to occupy the Leased Premises throughout the term of the Lease Agreement; provided, however, that Tenant uses the Leased Premises as set forth in Paragraph 6 below,and all other terms and conditions of this Lease Agreement. The Tenant and Landlord and Wheeler staff agree to meet once every quarter to discuss Tenant's performance and any other issues relating to the terms and conditions of this Lease Agreement. 6. Permitted Uses and Required Performance Standards. Tenant shall use and occupy the Leased Premises for a restaurant serving alcoholic beverages, including commercial kitchen for catering purposes, and associated storage and for no other purpose without Landlord's written consent. Page 4 of 24 Wheeler Restaurant Space Lease 7. Prohibited Uses. Tenant shall not use, occupy, or permit the Leased Premises or any part thereof to be used or occupied for any unlawful or illegal business, use, or purposes deemed by Landlord to be hazardous, nor in such manner as to constitute a nuisance of any kind, nor for any purpose or in any way in violation of any present or future laws, rules, requirements, orders, directions, ordinances or regulations of the United States of America, State of Colorado, County Pitkin, City of Aspen, or other municipal, governmental, or lawful authority whatsoever. Tenant shall not do or permit anything to be done in or about the Leased Premises or bring or keep anything therein which will in any way increase the rate of fire insurance upon the Building wherein the Premises are situated. Tenant shall,at its sole cost and expense, comply with any and all requirements pertaining to the Leased Premises of any insurance company necessary for the maintenance of reasonable fire and public liability insurance covering the Leased Premises.Tenant shall promptly comply with all laws, ordinances, orders, and regulations affecting the Leased Premises and the cleanliness, safety, and use of the same, including installation of additional facilities as required for the conduct and continuance of Tenant's business on the Leased Premises. No auction for fire or bankruptcy sales may be conducted on the Leased Premises without Landlord's consent. 8. Service to Patrons/No Discrimination. a. Tenant shall operate the restaurant hours, activities and coordination consistent with Exhibit C. b. Landlord understands that incremental inflationary menu price increases are part of the normal course of business and will consent to menu price-adjustments during the term of this Lease Agreement that reflect incremental inflationary prices. c.Tenant shall not discriminate against any employee or applicant for employment because of race, religion, color,creed,ancestry, sex, age, sexual orientation or national origin. Tenant and Tenant's employees shall not discriminate against any person because of such person's race, religion,color,creed,ancestry,sex,age,sexual orientation or national origin by refusing to furnish such person any service or privilege offered to or enjoyed by the general public. Neither Tenant nor Tenant's employees shall publicize the services provided hereunder in any manner that would directly or inferentially reflect on the acceptability of the patrons of any person because of race, religion, color, creed, ancestry, sex, age, sexual orientation or national origin. 9. Late Charges. The Tenant hereby acknowledges that late payment by Tenant to Landlord of rent or other sums due hereunder will cause-Landlord to incur costs not contemplated by this Lease, the exact amount of which shall be extremely difficult to ascertain. Such costs include, but are not limited to, processing and accounting charges and the late charges. Accordingly, if any bona fide.installment of rent or any other sum due from Tenant hereunder shall not be received by Landlord or Landlord's designee on or before the twentieth (20th) day of each calendar month that a rent payment is due,then Tenant shall pay to Landlord a late charge of five percent (5%) on such overdue amount. The parties hereby agree that such a late charge will represent a fair and reasonable settlement of the cost that Landlord would incur by reason of the late payment by Tenant. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant's default with respect to such overdue amount, nor prevent Landlord from Page 5 of 24 Wheeler Restaurant Space Lease exercising any of the other rights and remedies granted hereunder unless the entire amount due, plus late charge, is accepted by Landlord. In addition, any sum for which the Tenant shall be obligated to the Landlord, which is not received on the due date thereof, shall bear interest at the rate of five percent(5%) per annum from and after the due date until paid. 10. Personal and Real Property Taxes. Tenant shall be responsible to pay all real or personal property taxes assessed against the personal property used by Tenant and located on the Leased Premises or upon the leasehold interest of the Tenant of the Leased Premises. Likewise, Tenant shall be responsible for any and all sales,use, withholding and other taxes assessed against the Leased Premises for Tenant's business operation therein. 11. Fire and Casualty Insurance. The Tenant,at its own cost and expense,shall provide and keep in full force for the benefit of the Tenant and the City and the Landlord (as named or additional insureds)during the term hereof or any extension or renewal period, insurance to insure the Leased Premises against fire,'normal extended coverage perils,vandalism,malicious mischief, and liability. Throughout the term of this Lease, the Tenant shall cant' and maintain in effect casualty insurance covering its trade.fixtures,equipment,furnishings, leasehold improvements and plate glass,which insurance shall protect against fire,normal extended coverage perils, vandalism, malicious mischief,and sprinkler malfunction. Such insurance shall provide coverage to the extent of at least one hundred percent (100%) of the insurable replacement cost of the insured property. Both the Landlord and the Tenant waive any right of subrogation that their respective insurers may acquire against either of them. Both of these waivers shall automatically terminate at such time as either party's insurer requires that an additional premium be paid as a consequence of this waiver provision. 12. Liability Insurance. The Tenant, at its own cost and expense, shall provide and keep in full force for the benefit of the Tenant and the Landlord (as named or additional insureds) during the term hereof or any extension or renewal period, general public liability insurance for claims of liability arising out of, occasioned by or resulting from an accident or otherwise in or about the Leased Premises, for Five Hundred Thousand Dollars ($500,000.00) each occurrence with a One Million Dollar ($1,000,000.00) general aggregate combined single limit covering . bodily injury, property damage, and personal injury. In addition, if Tenant serves, manufactures, or distributes alcoholic beverages on the Leased Premises, Tenant shall carry liability insurance for such activity with limits in the same amounts as stated above. The policy or policies of insurance(or binders of insurance therefore)shall be issued by a reputable company or companies authorized to do business in this State and shall name Landlord as an additional insured. Tenant shall provide evidence of such insurance coverage to Landlord prior to the commencement of the tern hereof. The Tenant also agrees to and shall save, hold and keep harmless and indemnify the Landlord from and against any and all payments, expenses, costs, attorneys' fees and/or damage to property or injuries to persons occasioned wholly or in part by or resulting from any acts or omissions by the Tenant or any subtenants, assignees or successors in excess of those amounts covered by insurance. If for any reason as a result of Tenant's activities, use, or business, it shall be impossible to obtain fire and other hazard insurance on the buildings and improvements on the Leased Premises, in an amount and with insurance companies acceptable to the Landlord, the Landlord may terminate this Lease and the term hereof, upon giving to Tenant twenty (20) days notice in writing of the Landlord's intention to do so and upon the expiration of the time provided Page 6 of 24 Wheeler Restaurant Space Lease in said notice,this Lease and the term hereof shall terminate. If by reason of the use of the Leased Premises by the Tenant or by character or manner in which the Tenant's business is carried on, Landlord's insurance rates for fire and other hazards shall be increased, the Tenant shall pay, as additional rent,the amounts by which the premiums for such insurance are increased. The Tenant and Landlord waive all rights of recovery against the other party and its agents,employees or other representatives, for any loss, damages or injury of any nature whatsoever to property or persons for which the said party is insured. Each party shall give the other party prompt notice of any claim coming to the knowledge of any party that in any way directly or indirectly affects either party, and both parties shall have the right to participate in the defense of such claim to the extent of its interest. 13. Notice of Cancellation of Insurance Coverage. The above insurance policies shall contain clauses substantially similar to the following: a. Notwithstanding any other provision in this policy, the insurance afforded hereunder to the Landlord shall be primary as to any other insurance or . reinsurance covering the Landlord and such other insurance or reinsurance shall not be required to contribute to any liability until the appropriate limit of liability afforded hereunder is exhausted. b. This policy may not be canceled or changed until forty-five (45) days after receipt by Landlord of a written notice of such cancellation or change in coverage, as endorsed by receipt of a certified letter, unless such cancellation is a result of nonpayment of premium due, in which case, this policy may not be canceled until ten (10) days after receipt by Landlord of a written notice of such cancellation, as endorsed by receipt of a certified letter. 14. Utilities. Tenant shall be responsible for any and all utility charges that are separately metered or contracted for by Tenant. Tenant shall pay its share of joint services including solid waste and other costs as mutually identified. 15. Alterations. Landlord shall deliver the Leased Premises to Tenant on or before the commencement date of this Lease Agreement.No alterations,additions, or improvements shall be made, and no fixtures shall be installed in or attached'to the Leased Premises that are not pre- approved in writing by Landlord. Unless otherwise provided herein, all such alterations,additions or improvements when made, installed in or attached to the said Leased Premises, shall belong to and become the property of the Landlord and shall be surrendered with the Leased Premises as part thereof upon the expiration or sooner termination of this Lease, without hindrance, molestation, or injury. Notwithstanding that they may have become an integral part of the Leased Premises, Landlord may require Tenant to remove all or any part of such alterations, additions, improvements or fixtures at the expiration or earlier termination of this Lease,restoring the Leased Premises to the same condition existing at the beginning of the original term, ordinary wear and' tear excepted. If Landlord does so require, Tenant shall repair all damages resulting from such removal and should Tenant fail to repair damages resulting from such removal, Landlord may remove the same or make such repairs for Tenant's account, and Tenant shall pay to Landlord, on Page 7 of 24 Wheeler Restaurant Space Lease demand, an amount equal to Landlord's costs incurred in such removal or repair. All work with respect to any permitted alterations, additions, or improvements shall be done at Tenant's sole expense in a good and workmanlike manner, strictly in accordance with the plans and specifications approved by Landlord. In doing said work,other Tenants of Landlord(if any) shall not be adversely affected nor unreasonably inconvenienced. Tenant shall, at its own expense, obtain all necessary building or other permits or approvals required by appropriate governmental authorities prior to beginning such work. If any mechanics' or other liens shall be created or filed against the Leased Premises by reason of labor performed or materials furnished for the Tenant in the alteration, addition or repair to any building or improvement, the Tenant shall at the Tenant's own cost and expense, cause such lien or liens to be satisfied and discharged of record together with any Notices of Intention that may have been filed, or Tenant may provide a bond for 150% of the lien. Failure to do so shall entitle Landlord to resort to such remedies as are provided herein in the case of any default of this Lease, in addition to such as are permitted by law. Any goods, inventory or other personal property of Tenant not affixed to the Leased Premises and not removed by Tenant upon the termination of this Lease, or upon any quitting, vacating or abandonment of the Leased Premises by the Tenant, or upon the Tenant's eviction, shall be considered abandoned and Landlord shall have the right, without any notice to the Tenant, to sell or otherwise dispose of the same, at the expense of the Tenant, and shall not be accountable to the Tenant for any part of the proceeds of such sale, if any. 16. Repairs. Tenant shall take good'care of the Leased Premises and shall, at the Tenant's own cost and expense, make all repairs, including painting and decorating, and shall maintain the Leased Premises in good condition and state of repair, and at the end or other expiration of the term hereof, shall deliver up the Leased Premises in good order and condition, wear and tear from reasonable use thereof, and damage by the elements not resulting from the neglect or fault of the Tenant, excepted. The Tenant shall neither encumber nor obstruct the sidewalks, driveways, yards, entrances, hallways and stairs, but shall keep and maintain the same in a clean condition, free from debris,trash, refuse. In case of destruction of or any damage to the glass in the Leased Premises,or the destruction of,or damage of any kind whatsoever to the Leased Premises, caused by the carelessness, negligence or improper conduct on the part of the Tenant or the Tenant's agents, employees, guests, licenses, invitees, subtenants, assignees or successors, the Tenant shall repair the said damage or replace or restore any destroyed parts of the Leased Premises, as speedily as possible, at the Tenant's own cost and expense. 17. Maintenance and Repairs. Tenant shall during the term of this Lease keep in condition and repair equal to that which existed at the commencement of this lease the Leased Premises and every part thereof, including without limiting the generality of the foregoing, all plumbing fixtures, within the Leased Premises, refrigeration, electrical fixtures and lighting fixtures, additional fixtures, interior walls, wall coverings and paint, ceilings, floors and floor coverings,windows,doors,plate glass,awnings,and entrances. Tenant shall pay for annual ANSI lift inspection, annual kitchen ventilation system and hood inspection, and all maintenance on the kitchen ventilation system and hood,grease trap, grease storage and ANSI lift. Landlord shall have responsibility for the repair and maintenance of the building structure, roof, foundation and structural integrity of any additional stories above the Leased Premises, and shall, at its expense provide major repairs and required replacement to mechanical systems situated within the Leased Premises that were originally provided by the Landlord. Major repairs and replacements to Page 8 of 24 Wheeler Restaurant Space Lease systems and structure that comprised the original Leased Premises that the Landlord provided initially when construction was completed on the new facility, (other additions that need repair which were completed by lease.holder will be undertaken by the lease holder at the lease holders sole cost and expense) and are required to provide the level of service and serviceability thereof and there from currently existing will be considered by the Landlord, if all standard and proper maintenance has been performed by the Tenant. At times the Landlord may agree (at its sole discretion)to cover the costs of the repairs or replacement. Absent such agreement, Landlord shall have no obligation to execute such repair or replacement, but in the event Landlord determines to effectuate such repair or replacement, Landlord shall have the sole discretion to determine the type, extent and quality of repair or replacement that shall be undertaken. 18. Damage to Premises. If the Leased Premises shall be so damaged by fire or other catastrophe (which is not caused by the fault or negligence of the Tenant or imputable to the Tenant) as to render said Leased Premises untenantable, the Tenant thereupon shall surrender the Leased Premises to the Landlord and the Lease shall be terminated as of the date of the surrender. The Tenant shall pay rent, duly apportioned, up to that time Notwithstanding the foregoing, in lieu of any termination of the Lease, Landlord may elect, at its sole option, within thirty (30) days after the event of such damage,to continue the Lease without regard of such damage, whereupon Landlord shall at its expense make the Leased Premises fit for occupancy and the rent shall be abated only for the period during which the Tenant shall be deprived of the use of said Leased Premises by reason of such damage and the repair thereof. If said Leased Premises, without the fault of the Tenant, shall be slightly damaged by fire or other catastrophe but not so as to render the same untenantable for any substantial period of time, the Landlord, after receiving notice in writing of the occurrence of the injury, shall cause the same to be repaired with reasonable promptness; and in such event, rent shall be proportionately abated, according to the loss of use, until the Leased Premises are substantially restored. 19. Sublease/Assignment. Tenant shall not assign, sublease, mortgage, pledge or otherwise hypothecate or transfer all or any part of Tenant's leasehold estate hereunder, or permit the Leased Premises or any portion thereof to be occupied by anyone without Landlord's prior written consent in each instance. Consent to transfer shall be at the Landlords sole discretion. In the event Tenant is a corporation or LLC,these provisions shall apply to any transfer,sale or other disposition, whether voluntary or involuntary, of more than 25% of the shares or membership interest in the corporation or LLC of Tenant or to any merger, consolidation or dissolution or any other transaction, the effect of which would be in any way to avoid or circumvent such prohibitions. Any assignment or subletting contrary to the provisions of this Paragraph shall be void and shall, at the option of the Landlord, constitute a default under the terms of this Lease. 20. Si ns. The Tenant shall not place nor allow to be placed any signs of any kind whatsoever, upon, in or about the said Leased Premises or any part thereof that are visible from the exterior of the Wheeler Opera House building, except of a design and structure and in or at such places as may be indicated and consented to by the Landlord in writing. In case the Landlord or the Landlord's agents,employees or representatives shall deem it necessary to remove any such signs in order to paint or make any repairs, alterations or improvements in or upon the Leased Premises, they shall be replaced at the Landlord's expense when the said repairs, alterations or Page 9 of 24 Wheeler Restaurant Space Lease improvements shall have been completed. Any signs permitted by the Landlord shall at all times conform to all municipal ordinances or other laws and regulations applicable thereto. 21. Compliance with Law. Tenant shall obtain and pay for all permits or licenses that may be required for the operation of the Leased Premises in accordance herewith. A copy of such permits or licenses shall be submitted to Landlord for verification of this requirement prior to occupancy. The Tenant shall promptly comply with all laws, ordinances, rules, regulations, requirements,and directives of the federal, state, and municipal governments or public authorities and of all their departments, bureaus and subdivisions, applicable to and affecting the said Leased Premises, their use and occupancy, and shall promptly comply with all orders, regulations, requirements and directives of the Board of Fire Underwriters or similar authority and of any insurance companies which have issued or are about to issue policies of insurance covering the said Leased Premises and its contents,for the prevention of fire or other casualty,damage or injury, all at Tenant's own cost and expense. Tenant shall obtain and maintain during the life of this Lease, worker's compensation insurance and employer's liability insurance for Tenant's employees in strict compliance with state laws. Certificates evidencing such insurance or approved self- insurance shall be submitted to Landlord prior to occupancy. Tenant shall not use the Leased Premises for any purposes deemed unlawful, or extra hazardous. 22. Quiet Eniovment. So long as the Tenant is not in default hereunder during the term hereof or any renewal or extension hereof,the Landlord covenants that the Tenant shall peacefully and quietly occupy and enjoy the Leased Premises subject to the terms hereof. The undersigned warrants that it has full power and authority to execute this Lease on behalf of Landlord, and the Landlord shall be bound by, and perform all its obligations hereunder. 23. Condemnation. If the land and the Leased Premises leased herein, or of which the Leased Premises are a part, or any portion hereof, shall be taken under eminent domain or condemnation proceedings, or if suit or other action shall be instituted for the taking or condemnation thereof, or if in lieu of any formal condemnation proceedings or actions, if any, the Landlord shall grant an option to purchase and/or shall sell and convey the said Leased Premises, or any portion thereof,to the governmental or other public authority,agency,body or public utility seeking to take said land and Leased Premises or any portion thereof,then this Lease, at the option of Landlord, shall terminate and the term hereof shall end as of such date as the Landlord shall fix by notice in writing; and the Tenant shall have no claim or right to claim or be entitled to any portion of any amount which may be awarded as damages or paid as the result of such condemnation proceedings or paid as the purchase price for such option,sale or conveyance in lieu of formal condemnation proceedings; and all rights of the Tenant to damages, if any, are hereby assigned to the Landlord. The Tenant agrees to execute and deliver any instruments,at the expense of the Landlord, as may be deemed necessary or required to expedite any condemnation proceedings or to effectuate a proper transfer of title to such governmental or other public authority, agency, body, or public utility seeking to take or acquire the said lands and Leased Premises or any portion thereof. The Tenant covenants and agrees to vacate said Leased Premises, remove all the Tenant's personal property there from and deliver up peaceable possession thereof to the Landlord or to such other party designated by the Landlord in the aforementioned notice. Failure by the Tenant to comply with any provisions in this clause shall subject the Tenant to such Page 10 of 24 Wheeler Restaurant Space Lease costs, expenses, damages and losses as the Landlord may incur by reason of the Tenant's breach hereof. 24. Landlord's Lien. Tenant hereby grants to Landlord a security interest, after the first(I') lien to Tenant's lender, in any and all of Tenant's furniture, fixtures, equipment and inventory whenever acquired, their proceeds and the proceeds of any and all insurance policies carried thereon as and for additional security for the faithful performance by Tenant of all of its obligations hereunder. Tenant agrees to execute and deliver to Landlord, upon request, such additional documents as Landlord may require to establish and perfect such security interest including, without limitation, a financing statement in form satisfactory to Landlord, which is to be executed and delivered by Tenant to Landlord. The exercise by Landlord of any rights in and to such furniture, fixtures, equipment and inventory upon default hereunder-shall be governed by Article 9 of the Colorado Uniform Commercial Code, as in effect at the time of such default, but such exercise shall not preclude Landlord from exercising any or all other rights and remedies hereunder or as provided by law. 25. Inspection and Repair. The Tenant agrees that the Landlord and the Landlord's agents, employees or other representatives, shall have the right to enter into and upon the Leased Premises or any part thereof, at all reasonable hours and upon reasonable notice, for the purpose of examining the same or making such repairs or alterations therein as may be necessary for the safety and preservation thereof. Nothing in this section is intended to restrict access to the premises by an authorized City of Aspen inspector conducted pursuant to law, including, but not limited to Environmental Health employees conducting routine health inspections. This clause shall not be deemed to be a covenant by the Landlord nor be construed to create an obligation on the part of the Landlord to make such inspection or repairs. Tenant expressly waives and releases any claim, demand, or cause of action it might have against the Landlord by reason of any inconvenience, annoyance to Tenant, its guests, licensees or invitees arising from any maintenance, alteration or repair to any portion of the Leased Premises, the building in which it is located or the property upon which it is situate. Tenant grants to Landlord the right to temporarily discontinue utilities or any of them at any such time or times as may be necessary by reason of any such maintenance work, alteration or repair provided Landlord gives reasonable notice of such work. The Landlord agrees to make reasonable effort to schedule such work to minimize disruption to Tenant's operation. 26. Default. If there should occur any default on the part of the Tenant in the performance of any conditions or covenants herein contained or if, during the term hereof, the Leased Premises or any part thereof shall be or become abandoned or deserted,vacated or vacant, or should the Tenant be evicted by summary proceedings or otherwise, the Landlord, in addition to any other remedies herein contained or as may be permitted by law, may either by force or otherwise, without being liable for prosecution therefore or for damages, re-enter the said Leased Premises and again possess the same with or without terminating this Lease; and as agent for the Tenant or otherwise, re-let the Leased Premises and receive the rents therefore and apply the same, first to the payment of such expenses and costs, as the Landlord may have been put in re-entering and repossessing the same and in making such repairs and alterations, as may be necessary; and second to the payment of the rents due hereunder. Whether or not the Landlord shall terminate Page l l of 24 Wheeler Restaurant Space Lease this Lease, the Tenant shall remain liable for such rents as may be in arrears and also the rents as may accrue subsequent to the re-entry by the Landlord, to the extent of the difference between the rents reserved hereunder and the rents, if any, received by the Landlord during the remainder of the unexpired term hereof, after deducting the aforementioned expenses, fees,and costs;the same to be paid as such deficiencies arise and are ascertained each month. In addition, upon any such default, or if Tenant be adjudicated a bankrupt, insolvent or placed in receivership, or should proceedings be instituted by or against the Tenant for bankruptcy, insolvency, receivership, agreement of composition or assignment for the benefit of creditors, or if this Lease or the estate of the Tenant hereunder shall be transferred by virtue of any court proceedings, writ of execution or levy sale, the Landlord may, if the Landlord so elects, at any time thereafter, terminate this Lease, upon written notice to Tenant or to any trustee, receiver, or other person in charge of or acting as custodian of the assets or property of the Tenant. In the event of default, except in the payment of rent or additional rent hereunder, Landlord, prior to the exercise of any of its rights or remedies hereunder, shall give Tenant notice of such default together with a ten (10) day right to cure should such default be in the payment of any other sums due Landlord hereunder or a twenty (20) day right to cure should such default be in any of the other conditions or covenants of this Lease to be performed by Tenant,unless the same by its or their nature require immediate or earlier attention. Upon the giving of such notice, this Lease and the term hereof shall, unless the default shall be cured during the applicable period, end on the date fixed in such notice as if the said date were originally fixed,in this Lease for the expiration hereof; and the Landlord shall have the right to remove all persons, goods, fixtures and chattels therefrom, by force or otherwise, without, liability for damages. No right of redemption shall be exercised under any present or future law of the State of Colorado in case the Tenant shall be dispossessed for any cause or if the Landlord shall, in any other manner, obtain possession of the Leased Premises in consequence of the violation of any of the covenants and agreements of the Tenant, except for those rights of redemption on which landlord holds a security interest pursuant to Article 9 of the Colorado Uniform Commercial Code. The Landlord shall have a lien paramount to all others,after first lien of the Tenant's Lender on every right and interest of the Tenant in and to this Lease, and on any furnishings, equipment, fixtures, or other personal property of any kind belonging to the Tenant, or the equity of the Tenant therein, on the leased property. Such lien is granted for the purpose of securing the payment of rents, taxes,assessments, insurance charges, liens, penalties and damages herein covenanted to be paid by the Tenant and for the purpose of securing.the performance of all of the Tenant's obligations under this Lease. Such lien shall be in addition to all rights of the Landlord given under statutes of this State, which are now or shall hereinafter be in effect. 27. Attorneys'Fees. In the event of any litigation or other action or proceeding between the parties hereto arising out of the performance or non-performance of this Lease,or enforcement of any rights or remedies hereunder, including any indemnities herein contained, the prevailing party shall be entitled in such litigation, action or proceeding to also recover as part of any judgment, award or other relief, its reasonable attorneys' fees and costs incurred. 28. Delays. Parties agree that time is of the essence. Whenever a period of time is provided in this Lease for either Landlord or Tenant to do or perform any act or thing, neither Landlord nor Tenant shall be liable or responsible for performing any obligation hereunder as a result of any unavoidable delay due to strikes, lockouts, casualties, acts of God, or other governmental regulations or control or other causes beyond such party's reasonable control, and Page 12 of 24 Wheeler Restaurant Space Lease the time for performance specified herein shall be extended for a period of time corresponding to such delay. 29. Mortgage Priority. This Lease shall not be a lien against the Leased Premises with respect to any mortgages or trust deeds now or hereafter placed upon the Leased Premises or the building. The recording of such mortgage or mortgages shall have preference and precedence and be superior and prior in lien to this Lease, irrespective of the date of recording and the Tenant agrees to execute any instruments, without costs, which may be deemed necessary or desirable,to further effect the subordination of this Lease to any such mortgage or mortgages. Tenant shall, upon request, execute any estoppel certificates or attomment agreements that may be required by the holder of any mortgage or trust deed now or hereafter placed upon the Leased Premises or the building or by the Owner of the building in which the Leased Premises are located. A refusal by the Tenant to execute any such instruments shall entitle the Landlord to at once terminate this Lease. Tenant agrees not to record or file this Lease in the real estate records affecting the building in which the Leased Premises is located. Any such recording in violation hereof shall be considered a slander of Landlord's title and a breach of this entire Lease. This covenant shall survive the expiration or earlier termination of this Lease. 30. Cumulative Remedies. The various rights, remedies, options and elections of the Landlord expressed herein are cumulative and the failure of the Landlord to enforce strict performance by the Tenant of the conditions and covenants of this Lease or to exercise any election or option or to resort or have recourse to any remedy herein conferred or the acceptance by the Landlord of any installment of rent after any breach by the Tenant, in any.one or more instances, shall not be construed or deemed to be a waiver or a relinquishment for the future by the Landlord of any such conditions and covenants, options, elections or remedies, but the same shall continue in full force and effect. 31. Cleanliness; Waste and Nuisance. a. Tenant shall keep the Leased Premises at all times in a neat,clean and sanitary condition, shall neither commit nor permit any waste or nuisance thereon. Tenant shall store all trash in the containers provided for that purpose. . b. Use of Wheeler-supplied trash dumpster and recycling bins shall be done in a responsible and thorough manner,and Tenant shall be responsible for ensuring that its employees comply with rules relating to the use of the dumpster. c.The exterior of the building surrounding the Tenant's Leased Premises shall be vigilantly kept clean of cigarette butts, bottles,glassware,or other materials that in the Landlord's reasonable expectation may have been the result of Tenant's employees, guests, and clients. d. In keeping with City of Aspen Ordinance 87-1976, Section 6.04.070 (Hitching of animals),Tenant, its employees,and assigns shall work cooperatively with Wheeler management, as well as independently, to ensure that guests' or employees' animals, especially dogs, shall not be tied up or otherwise attached to any part of the Wheeler building. e. Employee and guest bicycles shall be attached to an appropriate rack and not the Wheeler Opera House premises when being secured. A bicycle rack is provided on the Mill Street side of the building, and a second bicycle rack is provided across Mill Street on the Hyman Avenue mall. Page 13 of 24 Wheeler Restaurant Space Lease f Excessive noise in excess of City codes related to db levels, and including that of pre- recorded music, or television broadcasts. Tenant agrees to work independently to ensure compliance with City codes related to db levels and maintain a reasonable aural environment. g. Tenant understands and hereby consents that from time to time it will be necessary to temporarily locate transportation trucks and/or other vehicles associated with live event production in the parking spaces adjacent to the building north of the intersection of Mill Street and Hyman Avenue, and accepts that this may block the view of the Tenant's business from foot traffic and other prospective clients. 32. Brokers. Each party represents to the other that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Lease. 33. Waiver. No waiver by Landlord or Tenant of any provision of this Lease shall be effective unless in writing nor shall such waiver be deemed a waiver of any other provision hereof, nor of any subsequent breach by Tenant of the same or of any other provision. 34. Surrender of Premises. At the end of the lease period of possession of the Leased Premises by Tenant, as well as at the termination of this Lease, Tenant shall surrender the Leased Premises to Landlord in good condition and repair, excepting for reasonable wear and tear and Acts of God. Tenant shall have the right at the end of the term hereof to, and upon demand by Landlord Tenant shall, remove any equipment, furniture, trade fixtures not affixed to the realty as described in Paragraph 15, and other personal property placed in the Leased Premises by Tenant and Tenant shall promptly repair any damage to the Leased Premises caused by such removal. 35. Governing Law. This Lease shall be construed and enforced in accordance with the laws of the State of Colorado. In the event of any litigation arising out of this Lease,jurisdiction and venue shall rest with any court of competent jurisdiction in Pitkin County. 36. Time of Essence. Time is of the essence with respect to the performance of every provision of this Lease in which the time of performance is a factor. 37. Severability. The terms, conditions, covenants, and provisions of this Lease shall be deemed to be severable. If any clause or provision herein contained shall be adjudged to be invalid or unenforceable by a court of competent jurisdiction or by operation of any applicable law, it shall not affect the validity of any other clause or provision herein, but such other clauses or provisions shall remain in full force and effect. 38. Notices. Whenever this Lease calls for or provides for notice and notice is not otherwise specified, the same shall be provided in writing and shall be served on the person(s) as designated by the parties below, either in person or by certified mail, postage prepaid and return receipt requested: For Landlord: City Manager 130 S. Galena Street Aspen, CO 81611 Page 14 of 24 Wheeler Restaurant Space Lease With Copy to: City Attorney 130 S. Galena Street Aspen, CO 81611 For Tenant: Elk Mountain Hospitality, LLC William Johnson 371 Market Street Basalt, CO 81621 39. Entire Lease. This Lease contains the entire contract between the parties and there are no other agreements, understandings, representations, or warranties except as expressly set forth herein. No additions, changes or modifications, renewals or extensions hereof shall be binding unless reduced to writing and signed by the Landlord and Tenant. 40. References. In all references herein to any parties,persons,entities or corporations, the use of any particular gender or the plural or singular number is intended to include the appropriate gender or number as the text of the within Lease may require. 41. Tenant is an Independent Contractor. This Lease is not a contract of employment. No relationship of employer and employee,joint venture or partnership, exists between Landlord and Tenant or between the Landlord and any employee or agent of the Landlord. Tenant shall at all times be deemed to be an independent contractor. Tenant is not authorized to bind Landlord to any agreements or obligations. 42. Binding Effect. All the terms, covenants, and conditions herein contained shall be for and shall inure to the benefit of and shall bind the respective parties hereto, and their heirs, executors, administrators, personal or legal representatives, successors and assigns respectively. 43. Guaranty. Tenant shall pay to Landlord a security deposit in the amount of twenty thousand dollars($20,000)to be held in an interest bearing account, as a guaranty of the payments and terms of this Lease. In addition, all individual corporate shareholders or LLC members of the Tenant shall provide a personal guaranty in the form attached hereto. Replacement of any guarantor who has executed a guaranty may be allowed by the written consent of the Landlord,at the Landlord's sole and absolute discretion. 44. Additional Leased Premises. In addition to the Leased Premises described above and depicted in Exhibit A, Tenant may be entitled to seasonally occupy, weather permitting, a . portion of the City Right-of-Way abutting the Mill Street side of the Leased Premises between the Mill Street entrance to the leased premises and the window well, and between the window well and the stairwell ("Additional Leased Premises"), for no additional rent during the term of this Lease, subject to the prior approval of the City of Aspen Engineering Department. Tenant shall be Page 15 of 24 Wheeler Restaurant Space Lease responsible for obtaining all requisite permits for Landlord. Use of the Additional Leased Premises shall be specifically conditioned upon the following terms: a. Tenant agrees to use the Additional Leased Premises for the sole purpose of selling and dispensing food or beverages to the public. Food shall be available in the leased area during all hours it is open to the public. Tenant further agrees to use the premises for no purpose prohibited by the laws of the United States, the State of Colorado, or ordinances of the City of Aspen. Further, Tenant agrees to comply with all reasonable recommendations of the City of Aspen relating to the use of the Additional Leased Premises. b. Tenant shall remove any structures installed by Tenant on the Additional Leased Premises promptly when not in use due to seasonal conditions. Failure to remove them within ten (10) days of last use, or on the date the Landlord's Engineering Department made as a condition of its approval, shall result in ownership of the structures to become the property of the City of Aspen and Landlord shall have the right to dispose of said structures as it deems necessary in its sole discretion. C. Tenant agrees to keep said Additional Leased Premises in repair and free from all litter, dirt and debris and in a clean and sanitary condition; to neither permit nor suffer any disorderly conduct or nuisance whatever about said Additional Leased Premises which would annoy or damage, either proximate or remote, occurring through or caused by an alteration to said Additional Leased Premises, or by any injury of accident occurring thereon. Further,Tenant does,by execution of this agreement,indemnify and agree to hold harmless the City of Aspen, its employees, elected and appointed officials,against any and all claims for damages or personal injuries arising from the use of the Additional Leased Premises per the insurance terms and conditions set forth herein. d. All construction, improvements or business fixtures on the Additional Leased Premises shall comply with the following criteria: i. Not be wider than the Mill Street frontage of the business nor extended further than a maximum of five(5)feet from the edge of the building(window well, stairwell and awnings are not considered to be the edge of the building), while ensuring that such extension does not impede pedestrian traffic by leaving a minimum of 58 inches clear at all times. ii. The Wheeler Opera House is on the National Register of Historic Places. No portion of the Tenant's fixtures shall extend beyond the boundaries of the Additional Leased Premises; this shall be construed to include planters, umbrellas while closed or open, any type of lighting fixtures, and any other fixtures of the Tenant No exterior finishes can be modified in any way. iii. The perimeter of the Additional Leased Premises shall be monitored constantly by staff or enclosed by a black wrought-iron fence as approved by Landlord, no less than thirty (30) inches in height. Openings in the fence shall not Page 16 of 24 Wheeler Restaurant Space Lease be less than 44 inches wide. If there is a gate which is not self-closing and bi- directional it must be left open and swing .inward to prevent obstruction of the pedestrian right of way. These rules are in compliance with state liquor and fire codes. iv. No service facilities, including but not limited to bus trays, hot plates,water dispensing equipment and dish storage shall be located on the Additional Leased Premises. V. The extension of fixtures shall otherwise be consistent(in the determination of the City Manager's Office and City Council) with the general design guidelines and design criteria of the.adjacent Hyman Avenue Mall. vi. The Tenant shall allow its fixtures and perimeter fencing to remain in place at its own discretion and liability and shall accept and retain full responsibility for any damage to such fixtures and perimeter fencing caused by the operation of police, fire and ambulance vehicles in the performance of their duties, and to hold harmless their duly authorized operators. vii. Neither electric.nor gas lights nor electrical conduits are allowed on the Additional Leased Premises. Portable heaters shall be allowed. viii. No signage, including but not limited to advertising on umbrellas, furniture, planters or banners shall be allowed on the Additional Leased Premises,except that menu signs shall be allowed in accordance with provisions of the City of Aspen sign code (menu must be attached to the fence). e. The Additional Leased Premises and improvements,additions and business fixtures thereon shall be maintained and managed by the Tenant. f. Tenant agrees to permit agents of the Landlord to enter upon the Additional Leased Premises at any time to inspect the same and make any necessary repairs or alterations to the building, sidewalks, curbs, gutters, streets, utility poles, or other public facilities as Landlord may deem necessary or proper for the safety, improvement, maintenance or preservation thereof. Tenant further agrees that if Landlord shall determine to make major structural changes to the building or sidewalk which may affect any structures placed within the Additional Leased Premises by the Tenant,that the Tenant, by execution of this Lease Agreement, hereby waives any and all right to make any claim for damages to the improvements (or to its leasehold interest) and agrees to remove any structures necessary during such construction periods. g. . Landlord by this demise hereby conveys no rights or interest in the public way except the right to the uses on such terms and conditions as are above described,and retains all title thereto. h. Tenant agrees not to sublet or assign any portion of the Additional Leased Premises. Page 17 of 24 Wheeler Restaurant Space Lease i. Tenant agrees to surrender and deliver up possession of the Additional Leased Premises promptly upon expiration of this Lease Agreement. 45. Liquor License. The Landlord will make available for transfer to the Tenant a Hotel/Restaurant Liquor License, subject to the approval of the Colorado Department of Revenue for the Tenant's use during occupancy of the space in Exhibit A. In the event the Tenant surrenders the space or is evicted, the Tenant agrees to transfer the Tavern Liquor License back to the Landlord within 30 days of notice, without objection. IN WITNESS WHEREOF, the parties hereto have executed this Lease as of the day and year above first written. TENA T: ((C �1/ifvit't1� . By: CA- t c c 1464 ��Ar Title: LANDLORD: THE CITY OF ASPEN APPROVED AS TO FORM: APPROVED AS TO CONTENT: James True, Esq., Steve Barwick City Attorney City Manager Page IS of 24 Wheeler Restaurant Space Lease . List of Exhibits Amended to Lease Agreement A - Description of Leased Premises B—Price Index for base rent calculation C—Hours of Operation, Cooperation with the Wheeler, Affordability and Concept D—Guaranty of Lease Page 19 of 24 W I Y i� v N NU i � o .ar Ll Ll \�/!yl II i II 2 II � II II II II -- II II II II II � II 2 11 �,.• N II Z e• ¢ II O II w it n II fi u LIM, II II II II II II II II II JJ a y W 'a r w ................... INN..... ' e Z W J O O = O U J J LL M p Z) W CL (1) Z O W a a O co w Q LL Wheeler Restaurant Space Lease EXHIBIT B Base Rent Increase Calculation a) Price Index" shall mean the Consumer Price Index -All Urban Consumers (CPI U-) U-S. City Average -All Items, or a successor or substitute index published or authorized.by the United States Department of Labor,Bureau of Labor Statistics. b) The following formula shall be used for determining the adjustment, if any, in the fixed minimum annual rent: Current Index Number = Price Index" for the next fiscal year(Jan.1) Base Index Number Price Index preceding fiscal year(Jan. 1) c) As promptly as practicable after the commencement of the first adjustment year, and thereafter as promptly as practicable after the first day of each succeeding adjustment year, Landlord shall compute the increase, if any, in the cost of living for the year immediately preceding said adjustment year. Such computation shall be made by use of current and base index numbers provided for each adjustment year as set forth in Paragraph b) above. d) In computing increases for each adjustment year the current index number shall be divided by the base index number. From the quotient thereof, there shall be subtracted the integer I and any resulting positive number shall be deemed to be the percentage of increase of cost of living. e)The percentage of increase in the cost of living shall be multiplied by the minimum annual rental including increases for the year preceding the adjustment year for which the increase is being computed. 0 The Landlord shall, within a reasonable time after obtaining the appropriate data necessary for computing such increases, give the Tenant notice of any increase so determined, and the Landlord's computation thereof shall be conclusive and binding but shall not preclude any adjustment of the index figures upon which the computation was based and Tenant shall, within sixty(60) days after receiving such notice, notify Landlord of any claimed error therein; provided, however, nothing herein shall be construed to extend the time when rents, as determined by Landlord, are due and payable by Tenant. g) Minimum annual rent for each adjustment year, together with increases calculated in accordance with Paragraphs b)through f) of this Section, shall be due and payable to Landlord in equal monthly installments due on the first day of each calendar month of each adjustment year(retroactive payments then due being payable within thirty(30)days after giving notice thereof by Landlord to Tenant). Page 21 of 24 Wheeler Restaurant Space Lease EXHIBIT C Hours of operation: Minimum Hours of operation: Year 1: Open 9 am—8 pm, 7 days per week, with full kitchen service from noon— 8 pm. Patio hours may not commence before 7 am and must conclude by 10 pm, however, Tenant is not required to provide patio hours. Patio season is limited to Thursday before Memorial Day until October 1. Year 2 and beyond: Open noon - 8 pm, 7 days per week, with full kitchen service from noon - 8 pm. Patio hours may not commence before 7 am and must conclude by 10 pm, however, Tenant is not required to provide patio hours. Patio season is limited to Thursday before Memorial Day until October 1. Tenant may close up to 28 days per year with at least 30 days notice to the Wheeler Executive Director. The City and Tenant agree to meet within 90 days after the completion of the Year I to review Tenant's plans for any adjustments to hours of operation. Cooperation with Wheeler: In addition to quarterly meeting with a Wheeler representative, the Tenant agrees to provide at least two special offerings per quarter for Wheeler Wins members. The Landlord and the Tenant agree to work collaboratively to deliver quality offerings that enhance the value of the Wheeler Wins membership and the Landlord will include the Aspen Public House at least once per quarter in marketing and promotion materials. Affordability and Concept: Tenant agrees the concept, affordability, and delivery of consistent product and experience will continue throughout this entire lease period and any renewals, as evidenced in the attached proposal materials. Page 22 of 24 Section 3: Concept Presently, the Wheeler Opera House building shares a subdivided restaurant space located on the corner of Hyman Avenue and Mill Street—considered the heart of downtown Aspen. The City of Aspen is the landlord for the restaurant space and is seeking proposals for a new restaurant concept after the current tenant's lease expires in April, 2018. Elk Mountain Ventures, Inc., a Colorado corporation owned solely by local Roaring Fork resident Bill Johnson, has written a detailed proposal for a new restaurant concept specifically tailored to the Wheeler Opera House and the City of-Aspen. The new restaurant concept will be named "Aspen Public House" (APH). The name Aspen Public House was chosen in an effort to keep the brand in line with the history of the Wheeler Opera House as a city owned property, and to help the public easily understand the concept of the restaurant. Specifically, the name "Public House" was chosen instead of the abbreviated term "Pub" as a nod to the era in which the Wheeler building was constructed. The Aspen Public House is exactly the kind of establishment that could have existed in the Wheeler Building over a hundred years ago, and in modern times, it is a concept that will thrive as a restaurant and bar, serving locals and tourists alike. Presently, "Public Houses" are widely accepted as being family-friendly as well has being capable of having a vibrant bar scene. While there is ample supply of excellent eating establishments in Aspen, restaurants that are considered "affordable" or"offering great value," is one category that�is dramatically underserved. To address this need, APH will have menus for breakfast, lunch, apres, dinner and late night that offer excellent food options at an affordable price point relative to the current choices in Aspen..The menu offerings will be distinct from prevailing establishments, and while the pricing will be considered affordable, APH will not undercut existing establishments with similarly priced food. Also, in a coordinated effort with Capitol Creek Brewery, APH will be able to offer outstanding, locally brewed craft beer at reasonable prices, bucking the trend of rising craft beer prices in the Aspen market. The theme for the food at APH will be an interpretation of modern, refined gastropub fare with a western influence. For the dinner menu, there will be unique entraes such as elk schnitzel and pan- seared Colorado striped bass, alongside the expected classics like Colorado angus burgers and an assortment of inspiring, entree-sized salads. The breakfast menu will be comprised of American classics, similar to what you would find at a vintage diner, but with elevated service and locally sourced, high quality ingredients. APH will also serve coffee and espresso drinks with coffee sourced from the local roasting house Rock Canyon Coffee. The lunch menu will be a simplified version of the dinner menu, with a focus on an exciting variety of sandwiches, salads, and shared plates. The lunch service will be well organized so that local customers who are on a tight schedule can be in and out of the restaurant quickly. In addition to the regular services, APH will offer an outstanding brunch menu every Saturday and Sunday. Menus will change seasonally to utilize the highest quality ingredients available during any given time of the year. Proposed hours of operation: 8 A.M. — 2 A.M. seven days a week. Regarding the interior design, the theme of APH will have a rustic, vintage feel that is in line with the history and existing style of the Wheeler Opera House building. Due the nature of the most recent renovation of the restaurant space, there will not be any significant construction or new renovation required for the APH concept, which will allow for a much quicker turnaround time and a sooner grand opening of APH. Custom furniture will be made using reclaimed materials similar to what would have been available at the time of the Wheeler's construction, and a revised floor plan will be implemented to maximize the efficiency of the available floor space without sacrificing the comfort of the guests. The primary change made to the existing floor plan, will be the removal of all of the small tables currently located in the bar area, and the addition of two, 12' long, counter-height community tables in their place. This will create a more inviting feel in the bar area that is more in line with the APH = I e N��< � � r p I I r K \ r II O Z II Z II Q II II II II II II II II II II II II 2 II F II b II 2 ¢ II O II 6 N F S II II II II II II II 11 11 II 11 11 • 11 II JJ a r w w ¢ c 1D 4F ----------------------- Z W J `n a S 7 � O O x O U_ J J LL M fD 0 W a � z O W a a O U w Q d FA Jt I , h ll •_tll_iJN I ,� Lim WR 00 n 1 1 ice` _ �L• ,�..JJ / �J t Now�. _ , 1 `�,1r 00 gi ME i -� / �q1 u; J - Q �c(,r—fir f. . r A-1 •o � 1 eoi , ACJ — -- Section 4: Shoulder Seasons APH defines the shoulder seasons in the following time frame: -Spring shoulder season; May 1 —June 15 -Fall shoulder season; Oct 1 — Dec 1 (depending on snow conditions) One core principle of APH will be to take care of locals every day, regardless of the time of year. APH will remain open year-round, without any significant or sustained closures. This applies to all services, including breakfast. However, APH will reduce its menu by'roughly 25%, limiting some of the appetizers and entrees that are offered during peak season. This seasonal menu reduction will allow APH to reduce its labor costs and maintain sustainable food costs, while still offering a very complete menu to guests. During the shoulder seasons, when customer traffic is limited, many restaurants in Aspen close due to the nature of their business models and the pricing that their menu items require. With the limited restaurant choices during this time of year, customer traffic is concentrated among the handful of business that remain open. Additionally, with its emphasis on affordability and hospitality, APH believes that it can continue to serve guests during the shoulder seasons while at least remaining cash flow neutral. Cash flow from peak-season operations combined with the subsidized nature of the occupancy costs and critical budget analysis will aid in the sustainability of shoulder season months. In his tenure as a business operator at Aspen Highlands, bill has gained first-hand experience in running a successful restaurant with extreme seasonal fluctuations. Section 5: Menu Sample & Concepts APH will provide 5 distinct services a day: Breakfast, Lunch, Apres/Happy Hour, Dinner, & Late Night. . As previously stated, the underlying menu-concept will be refined, upscale "gastropub" fare with an emphasis on quality as well as affordability. APH's menu will not be "niche" in any single culinary style. This idea will allow the executive chef to adapt to meet consumer demands regarding pricing, quality and variety in offerings. Whenever economically possible, ingredients will be sourced from local farmers and producers who implement sustainable practices. The aspect of relative affordability is largely achievable due to the subsidized nature of the rent for the Wheeler restaurant space. This allows the overwhelming majority of menu items to be priced affordably without any sacrifices in terms of quality, portion size, and uniqueness, while simultaneously allowing APH to remain profitable. Additionally, APH proposes to make partial changes to all of the menus on a seasonal basis to utilize the freshest ingredients possible at any given time of the year. These seasonal changes allow for more culinary creativity, give APH customers another reason to keep coming back, and it will give APH the opportunity to adapt to customer feedback in an effort to build a mutual, lasting relationship with locals and tourists alike. Brief Menu Concept Descriptions: Breakfast: 8 A.M. — 11 A.M. Breakfast options are currently very limited in the Aspen market. Recently, this is due to issues related to real estate development, not for a lack of demand. However, due to lower guest check averages and limited alcohol sales, most breakfast places rely on high guest counts to remain profitable. With the majority of its revenues coming from dinner and late night bar sales, APH believes that due to the location and current market conditions, it will be able to offer breakfast, profitably, 7days a week—year-round. The APH breakfast menu will have modem interpretations of a complete assortment of classic breakfast offerings that will appeal to a wide variety of customers. Another key concept of the breakfast menu will be to offer a handful of affordable "grab'n go" items that will allow for customers who are in a hurry to be in and out quickly. The APH breakfast menu has been designed to offer a large variety of menu items at a high quality that are easily prepared, cross utilized, and consistently executed on a daily basis. In addition to the regular breakfast items, a small brunch menu will be offered on Saturday and Sunday from 10 A.M. — 2 P.M. Lunch: 11 A.M. — 5 P.M. The lunch menu will include some of the appetizers from the dinner menu as well as all of the salads and sandwiches from the dinner menu, with a few extra items in these categories. This will allow for greater cross-utilization in an effort to keep food costs sustainable. Soups and chili/stews will also be served during the lunch service. The streamlining of the lunch menu will allow the kitchen staff to prepare and execute the lunch menu items in a timely and consistent manor. The biggest trends in consumer lunch business are healthier options, quick turnaround, and reasonable prices. With up to 6 salads as well as a few healthy sandwich options, APH is positioning itself to create a vibrant lunch business, while remaining relatively affordable. Dinner: 5 P.M. — 11 P.M. The dinner menu will be the backbone of the culinary theme for APH. Once again capitalizing on the trend of healthier options while also having classic Colorado- inspired comfort food. Almost all of the protein for APH will be sourced from Colorado producers. With an average entree price of—$19 and the average sandwich price (including fries) of—$13 (factoring out the over the top 'Aspen"burger), APH will be able to offer its guests a menu with broad appeal and exceptional value at the highest quality and consistency. Quality control and preparation techniques will be managed by the Executive Chef, Jeff Casagrande and the Sous Chef, Abhay Nair. One of the responsibilities of the kitchen management team will be to create comprehensive prep lists and order guides to aide in streamlined, efficient kitchen operations. The use of rotation labels, structured inventory management, and best practices regarding food orders will reduce waste and improve food costs for APH. Additionally, a professional, experienced expediter will be hired to maintain the quality during busy services by seeing every single plate of food that leaves the kitchen. The expediter will also coordinate with the servers and back-servers to reduce ticket times and improve customer satisfaction. APH will also employ the use of"secret shoppers" from time to time to gain critical feedback regarding all aspects of restaurant operations related to quality and service. Regarding specialty cooking equipment, APH will purchase an Alto-Shaam Cook & Hold Combination Smoker dual-cabinet oven. This piece of equipment allows for incredibly consistent food preparations for several different types of menu items, while helping to reduce kitchen labor costs. APH will offer its dinner menu to guests until 11 P.M. This will allow for locals who work in the restaurant industry or any late-arrival tourists to come in and have a meal after work or traveling. Brief Description of Food Sources: -Cedar Ridge Ranch, Carbondale, CO: Cedar Ridge Ranch is a small family-owned livestock producer that specializes in sustainably produced heritage breed hogs. In an effort to improve sustainability, Cedar Ridge Ranch has partnered with Capitol Creek Brewery to use all of the brewery's "spent grain" to feed their livestock. -Louis Swiss Pastry, Aspen, CO: Louis Swiss Pastry is a local bakery that is famous for producing bread products that are utilized by restaurants valley-wide. -Farm Runners, Hotchkiss, CO: Farm Runners is a small family-owned business that specializes in connecting local farmers and their produce with small restaurants on the Colorado Western Slope. They make deliveries in the valley multiple times a week, delivering organic produce that was harvested that day. -Lombardi Brothers Meats, Denver, CO: Family-owned & established in 1947, Lombardi Bros. Meats is a famous meat-packer that sources high quality beef from Colorado ranchers. -Jodar Farms, Fort Collins, CO: Jodar Farms is a family-operated business that specializes in raising free range chicken. -Rock Canyon Coffee, Basalt, CO: Rock Canyon Coffee Roasters specializes in roasting premium quality coffee beans from around the world. "Great coffee for great peopleTm" is the philosophy they have built the company on and they believe everyone should have the pleasure of fresh, craft roasted coffee at their table or in their business. '*See attached menus Section 6: Front of House / Bar Service & Concepts Service and Hospitality Concepts: Excellent service and hospitality will be the cornerstone of success at APH, which has adopted the following mission statement: `The mission of Aspen Public House: to express excellence in the most inclusive, accessible, genuine and hospitable way possible, and to provide an experience that offers exceptional value at the highest possible quality." APH will operate as a classic, full-service restaurant. The FOH staff will consist of a hostess, servers, back-servers, bartenders, and a FOH floor manager. APH will create a work culture that will attract some of the very best restaurant employees across Colorado. APH will take a "51-49 percent" approach to hiring FOH employees, where 51% of the criteria for new hires will be based on having a positive, friendly attitude, and 49% of the criteria for new hires will be based on restaurant experience and technical ability. This is based on the philosophy that while, over time, you can train somebody in the aspects of being a good server or bartender, training for emotional skills is next to impossible. APH will strive to find FOH employees with the following characteristics: optimistic warmth, insatiable curiosity to learn, work ethic, self- confidence, empathy, and self-awareness. APH wants people on-their team who naturally radiate warmth, friendliness, happiness and kindness. On the technical side, servers and bartenders will go through a challenging on-boarding program that includes a comprehensive education regarding the APH approach to: hospitality and service, menu items, potential issues with food allergies, gluten free and vegan options, cocktails, beer, wines by the glass, interior decor, as well as the history of the Wheeler Building itself. The FOH management team, including: Quinn Gallagher, Rachel Martin, and Bill Johnson, will serve as the backbone for the serving and bartending staff. There will always be a manager present while the restaurant is open of business. The result of managers providing structure and support to the FOH staff allows APH servers and bartenders more opportunity to interact with guests, helping to build positive and lasting relationships with APH customers. In addition to providing basic support to the FOH staff, the managers will handle customer complaints directly, should they arise. One of the responsibilities of the APH management team will be to ensure that a guest never leaves unhappy. Additionally, the management team will conduct daily staff"line-ups" prior to the dinner service to discuss any menu changes, daily specials, item counts as well as provide tips for continuous improvement of hospitality and service practices. The ultimate goal of the APH management team will be to uphold and build the reputation of APH, providing guests with an excellent and consistent experience every time they visit the establishment. The management team at APH will also work to create promotions and events to drive guest traffic. Example promotions.include: Wine on Wednesdays, Lady's night, industry night, Local's night, beer dinners, seasonally-themed parties, etc. APH will also make an effort to create special promotions in collaboration with Wheeler Opera House events such as film screenings and live musical performances. APH will advertise and cross promote these nights along with the Wheeler Opera House event in a further effort to help create a positive, synergetic relationship with the Wheeler Opera House. Regarding staff uniforms, APH FOH employees will wear light blue, long-sleeve, button-down chambray cotton shirts and gray chino trousers. Example guest experience: Upon arrival, guests will be warmly greeted by the hostess who will walk them to their table or put them on a waiting list if the restaurant is at capacity. Guests who are waiting will be offered a drink and a seat in the lounge area located by the front entrance. The hostess will have a hand-held tablet that will utilize a wait-list software application that streamlines the wait list process, taking guests' cell phone numbers and updating them regarding wait times and when their table is ready. After the hostess has seated a guest at their table, he or she will present the guests with the appropriate menus as well as verbalize the daily specials, new items, and any menu items that are limited in quantity. Crayons and sketch paper will be offered to guests with young children. The hostess will notify a server that new guests have been seated at a table in their section, and the server will take responsibility of the guests experience for the duration of their experience. Prior to taking drink and food orders, severs and bartenders will introduce themselves and ask if there are any questions regarding the information conveyed by the hostess. During the guests' visit, it will be the job of the server/bartender to listen to the guests' questions and concerns and respond with a thoughtful, sincere answer. Throughout the meal services, the bartender and server staff will be supported by the management team, as well as back-servers. Ticket times will be kept to a minimum, understanding that APH guests' time is incredibly valuable. Should the need arise, a manager will always be available to speak with a guest. A result of the initial onboarding program and daily line- ups, will be a server and bartender staff that is knowledgeable and confident regarding food and drink offerings at APH. Finally, at the end of their experience, guests will be offered a comment card in an effort to gain critical feedback for APH operations. The comment card can be filled out anonymously and placed in a drop box located at the hostess stand. Alternatively, guests can include their names, email addresses, and birthdays so they can be added to an APH mailing list and updated on upcoming events and promotions. Bar Menu Concepts: APH will have a well-stocked and comprehensive bar inventory. Regarding the cocktail menu, APH will strive to offer a small, but complete cocktail list with a wide variety of style at an affordable price— consisting of roughy 14-18 specialty drinks at any given time. The cocktails will utilize locally crafted spirits and ingredients as much as possible. Additionally, cocktail recipes have been designed so that bartenders can quickly "build" drinks and achieve a consistent product. Quinn Gallagher and Bill Johnson will change the cocktail list to reflect seasonality and adapt to customer feedback. In addition to the cocktails on the APH 'cocktail menu," bartenders will be well-versed on making all of the classic cocktails. The wine list will be written by Quin Gallaher. APH will have a well-rounded variety of white and red wines available by the glass, offering four red wine options, three white wine options and one rose. Wine by the glass will be served from a True Refrigeration wine kegerator. This reduces the need for excess storage space, drastically reduces waste and spoilage, and ensures that every glass of wine that is poured is never oxidized and always fresh. All of the wines listed on the drink menu are offered in 1/6 bbl keg format. In a partnership with Capitol Creek Brewery, draft beer selections will be provided by CCB with beer that is brewed locally in Basalt. There will be up to six, well-rounded draft beer selections. The joint ownership of APH and Capitol Creek Brewery allows for beer to be priced at very reasonable prices. Moreover, Capitol Creek Brewery will brew a 'pre-prohibition"-style Pub Ale, called "1889 Pub Ale", that will be available exclusively at the Aspen Public House. This easy-drinking, flavorful beer will be available at a special price of$3.00 a pint during apres ski and happy hour. In addition to the previously mentioned offerings, APH will also offer Colorado ciders and an extensive bottled beer list, including domestic beers, gluten-free beers, imported beers, locally crafted beer, non-alcoholic beer, and other micro-brewed beers. APH will also have a comprehensive wine list for bottled wine covering all price points. APH will also offer non-alcoholic beverages such as locally brewed kombucha from Elevated Elixirs. APH will also offer a "bar snacks" menu with specials during apres ski and happy hour, as well as late-night food choices. Daily 3 P.M. — 5 P.M. apres ski/happy hour menu pricing examples: -$3.00 1889 Pub Ale -$1.00 off all beer (draft and bottle) -$5.00 glass of red or white wine -$8.00 house margarita -$1.00 ea, boneless chicken wings -$2.00 ea street tacos (carnitas or sauteed vegetables) The late-night bar snacks menu will contain six different menus items including both meat and vegetarian options. This menu will be available until at least 1 A.M. or as dictated by local and state liquor laws. "See attached menus ASPEN PUBLIC HOUSE Proposed Breakfast Menu How do you like your eats?... The Wheeler Classic 11 Farm fresh cage free eggs cooked any style and your choice of ham,bacon,sausage,chorizo,pulled pork, chicken sausage or"soyrizo".Includes hash browns,choice of toast. 3 Egg Omelet or Scramble 12 Our farm fresh eggs with a choice of three fillings served with hash browns and choice of toast or tortillas **Also available as a tofu scramble" APH Breakfast Burrito 10.25 Burrito Filled with scrambled eggs,hash browns,house black beans,cheddar&jack cheese,topped with pito de gallo and choice of green chili or ranchero (psst,love your veggies&meats). Muevos Rancheros 12 Com or flour tortillas layered with black beans,jack cheese,ranchero sauce,three eggs any style,and pico de gallo. (Imagine it topped with veggies and/or meatsl) Corned Beef Hash 13 APH's signature shredded hash mixed with artisan corned beef,caramelized poblanos and onions.Topped with two eggs your style&toast or tortillas. APH Spuds Deluxe 9 A heaping portion of our hash browns,covered with melted cheddar&jack cheese,scallionss.Topped with two cage free eggs your style If Bennys are your thing... Ham Benedict 12.50 The classic evolved with our English muffin topped with shaved hickory smoked ham,perfectly poached cage free eggs and smoked cheddar hollandaise. Chili Verde Benedict 13.50 Green Chili sauced tortillas and melted cheese with your choice of slow cooked pulled pork or barbacoa style beef,topped with poached cage free eggs,green chili hollandaise,Pico de gallo,and cotija cheese. Alaskan Benedict 14.50 Lox style salmon and cream cheese served over toasted rye and topped with poached cage free eggs,cream cheese hollandaise blended with sun dried.tomato and caper relish. The sweeter side of life... French Toast"Aspen Style" 11 Brioche stuffed with mascarpone then griddled and topped with vanilla creme,salted caramel,fresh strawberries and toasted coconut. Classic French Toast 8 French toasted brioche completed with whipped mascarpone cream,seasonal fruit and pure Vermont maple syrup. Pancake of the Day B Ask your server for today's flavorl More Pancakes 8 Plain,Blueberry,Chocolate Chip,or Banana Oatmeal Bowls... (Heaping portion Irish-style Hot Oatmeal_,Iso available in hollipanions) Fruit&Nut 6 Maple Broiled Plums with Pistachios - Apple Pie 6 Grated Apple,Golden Raisins,Nutmeg,Cinnamon and Toasted Pecans All About Almonds 7 Shaved Almonds,Almond Butter,Almond Milk,Raspberries and Chia Seeds Island Dreaming 7 Banana,Mango,Toasted Coconut and Crushed Macadamias Add a scoop of whey protein powder 1.25 In a Hurry... (Grob'n Go Breakfast items) Loaded Breakfast Burrito 7.50 Scrambled Eggs,Cheddar&Jack Cheese,Fresh Avocado,Green Chilies,Salsa Ranchero and your choice of: Bacon,Chorizo,Smoked Ham,or Tofu Basic Burrito 6 Scrambled Eggs,Cheddar&Jack Cheese,&Salsa Ranchero V Ham&Cheese English Muffin 6 Engish Muffin,Scrambled Eggs,Smoked Ham,&Swiss Cheese Pesto Flatbread 7.50 Warm Flatbread,Egg Whites,Sundried Tomato,Fresh Mozzarella&Pesto Sauce V Espresso,Coffee&More... (Coffee sourced lowly from Rock Canyon Coffee,available In h go cups in 12oz or lboz sizes) Classic Drip Coffee(APH morning blend,Brazillionare,.or Decaf) 2 American single/250 double/3.50 Cappuccino 3 Cafd latte 3.50 \ Espresso Shots single/2.50 double/3 triple/3.50 Mocha latte 3.50 Rock Canyon Cold Brew 3 Additionally,APH will offer fresh juices,hot tea,organic milk,almond milk,and soy milk ASPEN PUBLIC HOUSE Proposed Lunch Menu STARTERS: Fritto Mlsto...9 Assorted veggies tempura served with curry oioli and warm marinara Roasted Pork&Polenta Cakes...12 Slow roasted Cedar Ridgepulled pork savory polenta,chimichurri gf Wings...11 Citrus-brined&slow cooked,fried—choose:Dry Rub—Sweet Chili—Spicy Habonero gf Poutine of the Moment...13 Hand-cut fries,house-made gravy,cheese curds,fried egg with rotating selection of additional toppings Hummus&Tzatziki Jar...$9 house-made hummus&tzatziki,served with flatbreods and crudite gf LARGE SALADS: tEntrEe for one or shared,familystyle -served with o Louis Swiss baguette—also available as half portions) Classic Caesar... ii Nouse-made Caesar dressing,grana padano perm&croutons Southwest... 13 Romaine,black beans,avocado,roasted poblunos,grilled cactus,topped with cam tortilla strips&cotefa cheese.&pica-served with chipotle ronch gJ Roquefort&Pear... 13 baby Kale,fresh pear,roguefort,walnuts&with a sweet mustard vinaigrette gf Crispy Brussel Sprouts... 12 roosted Brussel sprouts topped with crispy shallots,smoked pancetta,shaved piove&balsamic reduction Young Beets... 12 Cormelized fennel&field greens,roosted beets,haystack chdvre&a golden balsamic dressing gf Seasonal Chefs Salad...12 Chefs choice of seasonal greens,veggies and accoutrement ADD: CHICKEN - $6 • SALMON - $6 •Steak- $& SOUP & CHILI: Chili/Stew of the day...S6/cup - Soup of the day...S6/cup BURGERS &SANDWICHES: lTerved with house<ut fries.Sub side salad or potatoes confit:a 1.00.Sub cup of soup or chili:$3.001 -Gluten-free buns available on request The"Locals"Lunch Burger...9 A Ib CAB.patty on a sesame bun with your choice of pepper jack,swiss,cheddar,American or blue cheese-LTOP Certified Angus Burger... 13 r oz patty on a brioche bun with a choice of pepper jack.American,or blue cheese (add bacon,caramelized onions,hied egg,or guac:az.oa)-LTOP The"Aspen"Burger...18 7 oz C.A.B.patty,brioche bun,crispy Cedar Ridge pork belly,shaved truffle,smoked gruyere,&tomato-onion jam /odor Farm Grilled Chicken Breast Sandwich... to farmhouse cheddar cheese,blueberry honey,bacon,ciabatta-LTOP Smoked Steak Sandwich... is Smoked flatiron steak,sautded peppers&onions,swiss cheese,horseradish moll served on a ciabatto roll Classic Cubano... 14 Slow roasted Cedar Ridge pulled pork,swiss cheese,pickles&mustard on hoagie roll Hummus and Gremolata Pita...11 House-made hummus,citrus gremolata,bean sprouts,sundried tomato,&arugula on a sesame pita V.gf Warm Vegetable Sandwich,..to Sundried tomato pesto,roasted red pepper,grilled portabella,farmhouse cheddar, Ciabatta V KIDS MENU: Veggies with Hummus&Ranch Dip...6 Kids Salad...6 Whole-Grain Spaghetti with Spinach...7 Grilled cheese...a Served with fries or a side salad Mac&Cheese...a Chicken Tenders...9 Served with fries or a side salad ASPEN PUBLIC HOUSE Proposed Dinner menu STARTERS: JARS&BOARDS: Fritto Misto...9 berved with grilled flat breads&crostinisl Assorted veggies tempura served with curry atoll&warm Pork Belly Board...24 marinaro pork belly a ways:spiry,bbq,&with house dry rub;served with Cocoa fig jam&candied baron Roasted Pork&Polenta Cakes...tz Slow roasted heritage pulled pork,sovory polenta, Hummus&Tiatilki lar...$9 chimichumi housemade hummus&taattik{served with ffatbreads& Wings. 11 crudirt Citrus-brined&slow cooked,fried-choose:Dry Rub-Sweet Tomato-Onion Jam&Goat Cheese...$11 Chili-Sp ICY Habanero sweet&Savo ry jam layered with low/goat cheese Poutine of the Moment..13 Meat&Cheese Board_. 17 Hand-cut fries,housemade gravy,cheese curds,fded egg artisanal meat&cheese,accoutrements with rotating selection of additional toppings LARGE SALADS: (Entrde for one or shared,family-style -served with o Louis Swiss baguette—also available as half portions) Classic Caesar... 11 Hoummade Caesar dressing,grana podano porm&croutons Southwest... 13 Romaine,black beans,avocado,roosted poblanos,grilled cactus,topped with tortilla strips&corejo cheese,&Pico-served with chipotle ranch Roquefort&Pear... 13 baby Kaie,fresh Peor.roquefort,walnuts&with a sweet mustard vinaigrette Crispy Brussel Sprouts... 12 roosted Brussel sprouts topped with crispy shallots,smoked pancetta,shoved plave&balsamic reduction Young Beets... 12 Carmelieed fennel&field greens,roasted beets,haystack chevre&o golden balsamic dressing ADD: CHICKEN - BB•SALMON - EB 'Steak- $B SOUP&CHILI: Chili/Stew'of the day..,to/cup Soup of the day...s4/cup ENTREES: Chicken&Waffles...is !odor Farm Southern fried chicken,buttermilk biscuits,crispy waffles,drizzled with maple syrup and served with a side of country gravy Pan Seared Colorado Striped Bass...24 Colorado striped boss,Pon seared with o lemon ver bloncserved with orugula&asparagus Elk Schnitzel...21 House-butchered North American Elk,breaded,served with potatoes confts confit,seasonal vegetables&a mustard deml glaze Smoked Steak...23 Smoked 90z Certified Angus flatiron,chimichum,served with Potatoes mnfits&seasonal veggies GF Grains&Greens Macro Bowl...77 Soutded vegetable mix,braised preens,farm and miso dressing GF,V Cast Iron Mac&Cheese of the day...14 Chefs selection,choose between meat lovers OR vegetarian BURGERS&SANDWICHES: ,served with house<ut fries.Sub side salad or potatoes confd:t s.pol CerdfiedAngus Burger... 11, t oz patty with a choice of pepper Jack,swim,cheddar,American,or blue cheese !add bacon,caramelized onions,fried egg,or guac sz.00) The"Aspen"Burger...16 7 oz C.A.B.patty,biloche bun,crispy Cedar Ridge pork belly,shaved truffle,smoked gruyere,&tomato-onion Jam lodar Farm Grilled Chicken Breast Sandwich...14 farmhouse cheddar cheese,blueberry honey,bacon,clabatta Smoked Steak Sandwich... is Smoked fiatimn steak,soutEed peppers&onions,swiss cheese,horseradish atoll served on a dabotta roll Classic Cubano... 14 Slow roasted Cedar Ridge pulled pork,swiss cheese,pickles&mustard on hoagie roll Warm Vegetable Sandwich$io - Sundried tomato pesto,roasted red pepper,grilled portabella,farmhouse cheddar, Gabana V KIDS MENU: • Veggies with Hummus&Ranch Dip...6 Whole-Grain Spaghetti with Spinach...7 Grilled cheese...a Served with fries or a side salad Mac&Cheese...a Chicken Tenders...9 Served with files or a side salad lads Salad...6 Aspen Public House Proposed"Late Night Bar Menu" Available until 1 A.M. Wings Citrus-brined&slow cooked,fried—choose:Dry Rub—Sweet Chili—Mango Habanero—Buffalo —XXX 112LBfor7.60-1LBfor12.25 . Market Street Tacos 3 to an order;roasted pork barbacoo,corn tortillas,cabbage,onions,cilantro&salsa taqueria, guac 11.89 House Potatoes Potatoes confit served with APH Pub Sauce 8.25 Fritto Misto Assorted veggies tempura served with curry aioli&warm marinas 9 Roasted Pork&Polenta Cakes Slow roasted heritage pulled park,savary polenta,chimichurri 12 Hummus&Tzatziki Jar house-made hummus&tzatziki,served with flatbreads and crudite 9 Aspen Public House Proposed Desert Menu Espresso Chocolate Cake 10 Espresso Ganache,Caramel,Nor dl Latte Ice Cream Apple Crisp 8 Oat Crumble,Rum Raisin Ice Cream Coconut Rice Pudding 7 Toasted Coconut,Chocolate,Passion Fruit-Mango ASPEN PUBLIC HOUSE Proposed Cocktail&Wine List Jerome's Folly 12 The Sweet Rum Barrel 10 Benedectine, Amaretto, Mezcal, Flora de Cana 4 year Dark Rum, Fresh Lemon Juice - shaken, served Pineapple Juice, Passion Fruit on the rocks with a Bordeaux float - Puree, Muddled Mint, Grenadine Green Drake Smash 10 Float - served on the rocks Green Drake IPA, Woody Creek Gin, Spicy Margarita 11 Grapefruit Juice, Jalapeno-lime Jalapeno Infused Suerte Silver syrup, Served on the rocks - Tequila, House-made Sour Mix, Garnished with a Basil Leaf Patron Citronge, Chili salt rim, The Federal Reserve 12 Grapefruit soda float Buffalo Trace Bourbon, Amaro The Dude Imbibes 11 Lucano, LUstau Sherry, stirred, Woody Creek Vodka, Marble served on the rocks with and Distillery Midnight Expresso Coffe orange slice garnish Liqueur, Bourbon Cream - served on the rocks with a shaved coffee Aspen Boulivardier 12 bean garnish Buffalo Trace Bourbon, Del Dolin Sweet vermouth, lavender bitters, Chocolate Old Fashioned 12 Campari - served up or on the Buffalo Trace Bourbon, Demarara, rocks Amores Melipona Bitters - served on the rocks with an Orange French 75 14 Garnish Woody Creek Gin, Demarara, Fresh Lemon Juice, Champagne - Garnish After Dinner Drinks: with a Lemon Twist & a Bordeaux Cherry Red Velvet Cake Martini 12 Barrel-aged Manhattan 12 Frangelico Hazlenut Liqueur, Creme Woody Creek Single Barrel Rye, Del de Cacao, Woody Creek Vodka, Grand Profesorre Sweet Vermouth, Marnier, shaken with a sugar rim Aromatic Bitters - Garnished with a Bordeaux cherry & an Orange Tiramisu in a Glass 9 Twist Espresso, Milk Chocolate Liqueur, white Chocolate Liqueur, shaken Smokey Negroni 12 with a cocoa powder garnish Sombre Mezcal, Campari, Del Chocolate Stout Beer Float 8 Profesorre Sweet Vermouth - Garnished with an Orange Twist CCB Nitro Chocolate Stout, Salted Caramel Ice Cream; ,Eahlua, drizzled with chocolate sauce Wine on Tap: capitol Creek Brewery reds: Draft Beer List: (in a constant state of flux) - Smith a Hook Cabernet - $12 1889 Pub Ale - Tierra Divina Zinfandel Blend - 4.28 ABV - $5/16oz - $8 This easy drinking, 'Pre-Prohibition-- style American Pub Ale is brewed - La Coux, Cotes du Rhone - $9 exclusively for APs. (808 grenache, 208 syrah) Bighorn Czech-Style Pilsner - 4.58 ABV - $6/16oz -Joe Dobbes Oregon Pinot Noir - -Pilsen melt, Vienne malt s Willamette $11 hope create traditional, slightly dry pilaner flavor profile. whites: Green Drake IPA - Sanford Chardonnay - $12 - 6.58 ABV - $5/16oz -Simone, Mosaic d A2zaca hops — a malty backbone reduces the perceived - Stemmari Chardonnay - $7 bitterness in this contemporary IPA. - Castle Feder Pinot Grigio - $8 7 Castles Belgian Tripel - 8.58 ABV - $5/12oz rose: White wheat, oats & Pilsen malt combined with a traditional Belgian - Bieler Pere et Fils Rose - $9 yeast strain results in a full-bodied beer with complex aromas and flavors - banana esters, hints of spice and bubble gum with a creamy head. Great Wapiti Brown Ale - 5.88 ABV - $5/16oz -A mix of caramel and pale chocolate malts give this beer a very approachable, yet robust flavor. Nitro Chocolate Stout - 5.28 ABV - $6/16oz For this classic American-style stout, CCH used Pale chocolate malt, centennial a glacier hops - resulting in a subtle, milk chocolate flavor, nitrogenized for a Silky smooth finish Aspen Public House Catering&Banquet Menu Examples - Scratch-made Preparations APH will be able to tailor catering menus to meet a variety of requests and pricing.Anything from prime-rib carving stations to basic cold-cut sandwiches and salads will be,available.Below area few examples of buffet- style catering menus that have proven successful with previous catering clientele. Mediterranean Buffet:$19/head -Mediterranean-style grilled chicken breast -Homemade falafel croquettes - -Warm pita bread -Tzatziki sauce -Red pepper hummus _ -Baba ganoush -Israeli Salad -Mint chutney -Shredded iceberg lettuce -Olive tapenade -Assorted vegetables Taqueria Buffet:$16/head -Carnitas -Chicken Adobada -Sauteed peppers&onions -Black beans -Guacamole -Assorted taqueria salsas -Pico degallo -Warm corn&flour tortillas -Assorted taqueria accoutrement(shredded lettuce,onions,cilantro,cabbage,lime,etc.) -Crispy tortilla chips Assorted Gastropub Buffet:$19/head -Chicken&waffle skewers -Chicken Wings with assorted sauces -Assorted Veggie Platter -Potatoes confit with assorted dipping sauces -Mixed chefs salad -Blanketwurst with spicey mustard -Roasted pork&polenta cakes with chimichurri Miscellaneous appetizer/h'orderves -Caprese Toasts,crostini with heirloom tomato,fresh mozzarella,basil sprig&balsamic reduction -Smoked salmon canape,smoked salmon,crostini,hard-boiled egg,creme fresh,chives -Beef tenderloin crudo - -Roasted shishito peppers with a sweet soy reduction -Cucumber tea sandwich -Meat pie tarts,savory ground Iamb in a tart-sized pastry -Ceviche on plantains(or mini tostada type on crispy corn chip rounds) -Soup/gazpacho shooters -Mini beef Wellington's -Colorado Lamb pops -Charred artichoke hearts with truffle Aoli(or I've been doing a red pepper coulis which is nice for color too) -Rocky Mountain Oysters(Or even stack that with oysters for a"surf and turf") -Stuffed mushrooms(crab or keep it vegetarian) Aspen Public House Proposed"Grab and Go"Menu Available for Wheeler Opera House Patrons APH will provide an assortment of"grab and go"food Items what will be prepared in advance and served in eco-friendly containers or boxes.Eco-friendly disposable utensils and biodegradable napkins will be available upon request.APH would prefer to sell a fixed amount the boxed menu items to the Wheeler Opera House at a wholesale price.The wholesale price will be structured at breakeven+15%which should put most items in the$6-$9 range.This concept will allow APH to avoid the costs associated with spoilage and inventory management. APH is open to ideas regarding pricing,collaboration,and menu Items. Below are examples of menu items that will be made available to the Wheeler Opera House. The menu items will be prepared from scratch and are designed to have a somewhat extended shelf life: Chicken Salad Pita Grilled,chopped chicken breast grated apple with cucumber tzotziki served an a sesame pita.gf Hummus&gremolata pita ' House-made hummus,citrus gremolota,bean sprouts,sundried tomato,&orugula on a sesame Pita V,gf Goat cheese lentil&couscous salad Whole-wheat couscous,cherry tomatoes,fresh basil,fresh parsley,goat cheese crumble,light EV00 Bento Box Brown rice,seaweed salad,edamame,with marinated tofu OR grilled shrimp V,gf Avocado Turkey Roils Smoked,sliced turkey,fresh avocado,smoked bacon,cheddar cheese,fresh tomato,citrus-oioli, wrapped in a whole-wheat tortilla Summer Rolls Vietnamese spring roll wraps,grilled shrimp,fresh basil,brown rice,bean sprouts,avocado with a sweet soy reduction gf Wheeler Restaurant Space Lease Exhibit D GUARANTY OF LEASE FOR VALUE RECEIVED,and in consideration for,and as an inducement to the aforesaid Landlord to make the foregoing Lease with�� p,s(2,_ Tenant, the undersigned unconditionally guarantees the full performance and observance of all the covenants, conditions, and agreements therein provided to be performed and observed by Tenant in an amount equal to one year of the term of the lease, and expressly agrees that the validity of this agreement and the obligations of the guarantors hereunder shall in no wise be terminated, affected or impaired by reason of the assertion by Landlord against Tenant of any of the rights or remedies reserved to Landlord pursuant to the provisions of the within Lease or by the relief of Tenant from any of Tenant's obligations under the Lease by operation of law or otherwise (including, but without limitation, the rejection of the Lease in connection with proceedings under the bankruptcy laws now or hereafter enacted); the undersigned hereby waiving all suretyship defenses. The undersigned further covenants and agrees that this guaranty shall remain and continue in full force and effect as to any renewal, modification, or extension of this Lease, whether or not the undersigned shall have received any notice of or consented to such renewal, modification or extension. The undersigned further agrees that his liability under this guaranty shall be primary, and that in any right of action which shall accrue to landlord under the Lease, landlord may, at Landlord's option, proceed against the undersigned and Tenant, jointly or severally, and may proceed against the undersigned without having commenced any action against or having obtained any judgment against Tenant. The undersigned further represents to Landlord as an inducement for Landlord to make the Lease, that the undersigned owns the percentage set forth by his or her name below of the entire outstanding capital stock or membership interest of Tenant. It is agreed that the failure of Landlord to insist in any one or more instances upon a strict performance or observance of any of the terms, provisions or covenants of the foregoing Lease or to exercise any right therein contained shall not be construed or deemed to be a waiver or relinquishment for the future of such term,provision,covenant or right, but the same shall continue .and remain in full force and effect. Receipt by Landlord of rent with knowledge of the breach of any provision of the foregoing Lease shall not be deemed a waiver of such breach. Except as may be otherwise specifically provided in the Lease subletting, assignment, or other transfer of the within Lease,or any interest therein,shall not operate to extinguish or diminish the liability of the undersigned guarantors under this guaranty; and wherever reference is made to the liability of Tenant named in the within Lease, such reference shall be deemed likewise to refer to the undersigned guarantors. It is further agreed that all of the terms and provisions hereof shall inure to the benefit of the respective heirs, personal representatives, successors and assigns of Landlord, and shall be binding upon the heirs and assigns of the undersigned. Page 23 of 24 Wheeler Restaurant Space Lease IN WITNESS WHEREOF, the undersigned guarantor(s) has caused this guaranty to be executed effective as of the 5 day of nA f ck 12018. Corporate Shareholders or LLC Members: Name: Percentage of Ownership: Sig and Address: hal iLw A?m -!T0,0,fin/ VC? 37< co 2i>i6 a� Page 24 of 24 Amendment to the Lease Agreement between the City of Aspen and Elk Mountain Hospitality Inc.,dated March 5, 2018 and approved by City Council on February 26, 2018, Resolution#38, Series 2018. Section 4 Equipment, Fixtures and Finishes Provided by Landlord and Tenant shall be amended to read as follows: 4. Equipment, Fixtures and Finishes Provided by Landlord and Tenant. a. The parties hereby agree that the Landlord shall deliver: • Basic, four-walled space or equivalent for tenant's operational purpose including utility hookups including electrical service,panels, and rough- ins to code-required j-boxes as currently installed and plumbing service as currently configured including water supply lines, water heater, and sanitary drains to rough-ins • ANSI compliant lift as currently installed • Fire suppression system as currently installed • Existing Grease trap system as currently installed • HVAC system as currently installed • Exterior awnings as currently installed • Mechanical equipment to furnish heating, cooling, and ventilation to rough-ins: ANSI compliant restrooms with basic fixtures: (1)ADA- compliant lavatory fixture per bathroom, (1) ADA-compliant, conventional toilet per bathroom, (1)urinal in men's room, and ADA- required grab bars and pipe-wraps and rough-ins. • Three (3) walk-in coolers. The Landlord shall service the coolers annually. The coordination of finishes between the landlord and tenant is imperative. b. The parties agree that the Tenant shall supply: • Kitchen and bar equipment • All interior finishes including flooring and wall treatments • Syrup/mixer/beer runs to the bar • POS system • DATA, Phone,AV System • Custom sprinkler head trims; Additional sprinkler heads and/or service upgrades required to address current layout/design changes • Coolers, freezers and any other chilling apparatus • Paper towel dispensers, soap dispensers, hand- dryer units, sanitary napkin dispensers and waste receptacles, stall partition dividers and related hardware, and decorative lighting and all related in-wall rough- in and/or blocking • Custom work • Anything else necessary to operate the restaurant effectively and efficiently • All repairs or maintenance work needed on the three (3) walk-in coolers outside of the annual servicing. CITY OF ASPEN, COLORADO: ELK MOUNTAIN HOSPITALITY INC.: Ja' lA2 _;� [Signature] By: S''7�� L>e.,�.-.:.+rl By: William Johnson [Name] [Name] Title: C:T7 �f.. .-- Title: Owner Date: l Date: 11/E9/2018 Approved as to form: ity Attorney