Title
Resolution Authorizing the Execution of a Lease Between the City of Hampton and Mutzy, Inc. for Approximately 1,513 sq. ft. of Space in the Woodlands Clubhouse at the Woodlands Golf Course, 9 Woodland Road
Purpose
Purpose/Background:
The City of Hampton is the owner of the Woodlands Golf Course. The restaurant at the Woodlands has experienced high turnover in vendors providing restaurant services and concessions to the Woodlands. In an effort to have an experienced and successful vendor to service the Woodlands, Parks Recreation, and Leisure Services issued Request for Proposal (“RFP”) 17-30/E through Consolidated Procurement, to find a tenant to provide restaurant services and concessions at the Woodlands Golf Course. Mutzy, Inc. (“Mutzy”) was the successful respondent.
Mutzy also owns and operates Crabtown Bar and Grill in Hampton. Mutzy will provide breakfast, lunch, and snack services, including on-course and off-course concessions as well as catering to support the needs of the Woodlands Golf Course. Mutzy differs from prior vendors that have served the Woodlands Golf Course as it has an already established restaurant and experience in providing restaurant services to the citizens of the City of Hampton.
The attached Lease has a one year term with four, one-year renewals. Rent under the Lease for the renewal terms will be $6,000.00 annually payable in equal monthly installments of $500.00. The Tenant is not required to pay rent to the City for the Initial Term under the Lease to allow the Tenant to establish a successful operation at the Woodlands, especially in light of the recent departure of the prior vendor and lack of services for the past few months. Additionally, a Commission on gross sales will be remitted to the City during all terms of the Lease based upon the following schedule:
·$0-$49,999 = 0% gross revenue
·$50,000-$99,999 = 1% gross revenue
·$100,000-$199,999 = 2% gross revenue
·$200,000-$299,999 = 3% gross revenue
·$300,000 + ...
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