Fort Walton Beach Council agenda — 12-20-05 — reading text

CITY OF FORT WAL TON BEACH City Council Special Meeting Agenda December 20, 2005 5: 30 p.m. City Council Chambers 107 Miracle Strip Parkway, SE Fort Walton Beach, FL 32548 CALL TO ORDER PLEDGE OF ALLEGIANCE - Mayor Mike Anderson License 1. Consideration of a request to authorize the Mayor to execute the proposed Fair Association for the Building Agreement between the City and the Northwest Florida Further, if we are unable to Footprint Only, With Joint Permitted Use of Other Areas. Fair Association by achieve a satisfactory License Agreement with the Northwest December 31, 2005, direct the City Attorney to send a notice to the Northwest Florida Fair Association requiring them to prepare and submit an abandonment plan within 30 Use Permit with the US Department of days of the expiration of their Special Agriculture, Division of Forest Service. ( City Manager) ( See Backup) ADJOURN made with respect to any matter at this meeting will Any person who decides to appeal any decision ensure that a verbatim record need a record of the proceedings, and for such purpose may need to and evidence upon which the of the proceedings is made, which record includes the testimony appeal is to be based. (FS286.0105). with Disabilities Act and will make The City of Fort Walton Beach adheres to the American Please call City Clerk Helen reasonable modifications for access to this meeting upon request. dial the City Hall TOO # 850-833- Spencer at 850- 833- 9509 to make a request. For Hearing Impaired 9925 or 1- 800-955-8771 ( TOO) or 1- 800- 955-8770 (Voice). Requests must be received at least 48 to provide requested service. hours in advance of the meeting in order to allow the City time  CITY COUNCIL SPECIAL MEETING December 20, 2005 AGENDA Consideration of a request to enter into a License Agreemement with the Northwest Florida Fair Association. Ctiy Manager) Council Action 1st 2nd Vote: 8M - 1 Agenda Item Number:  City of Fort Walton Beach MEMORANDUM To; Honorable Mayor and City Council From: Joyce Shanahan, City Manager Subject: License Agreement with Northwest Florida Fair Association Date: December 16, 2005 BACKGROUND: sale 42. 3 acres of On October 26, 2005 the City of Fort Walton Beach closed on the Division of Forest Service of land property from the US Department of Agriculture, located on Lewis Turner Blvd., commonly referred to as the softball complex and fairgrounds. of sale, the City The property was purchased at a cost of $ 4, 000, 000. As a condition agreed to assume all rights and obligations of the Forest Service and their Special Use 31 December 2005 Permit with the Northwest Florida Fair from the time of sale until when the use permit expires. from Fund Balance; and The City paid $ 4, 000, 000 for this property with $ 2, 000, 000 Cities resulting in the remainder from a ten- year note from the Florida League of annual debt service payments of $ 255, 270. DISCUSSION: A condition of sale included that the City would continue to honor the Special Use of Agriculture Forest Service and the Northwest Permit between the US Department 31 December 2005. The City has Florida Fair Association which is scheduled to expire with the Northwest Florida Fair undertaken an effort to negotiate a license agreement Use which expires shortly. Some Association in terms similar to their Special permit are detailed below. The draft specific aspects of the proposed license agreement license agreement is provided as Attachment A which includes an area map and had operations plan. The Special Use Permit the Northwest Florida Fair Association with the Forest Service is attached for reference as Attachment B. 1. AREA - License Aareement Section 1 Premises ( lines 10- 201 use of the The City has drafted a license agreement ( attached) that limits the Northwest Florida Fair Association to the footprint of the buildings they 6. 29 acres; use and access to currently own and occupy which is approximately 2 ( 6. 18 acres) as needed, but without the parking area; and access to area the exclusive usage. The Special Use Permit with the Forest Service permitted to approximately 30 acres Northwest Florida Association unrestricted access including parking area) based upon approval of the Fair' s annual operations plan. 2. OPERATIONS - License Aareement Section 2 Use and Conditions ( lines 22- 371  Use Permit with The Northwest Florida Fair Association, similar to their Special and identify the Forest Service will be required to file an annual operations plan the needed areas as part of the operations plan. The Operations Plan prepared Florida Fair Association is provided as part of the draft by the Northwest License Agreement. I believe the Northwest Florida Fair Association has a concern about incidental, term rentals of 48 hours or less that arises from time to, that may not be short in the proposed license part of the operations plan. The current language agreement provides that any additional usage of said property is subject to approval of the City Council. lines 3. TERM - License Aareement Section 3 Terms and Commencement ( 40- 531 The City and The term in the proposed License Agreement is three ( 3 years). from the Forest Service have been the Northwest Fair Association while leasing subject to use permits of short duration, typically three to five years since the mid 1980' s. Staff feels this is a reasonable amount of time and would provide of this property the City with sufficient flexibility should the intended use change. The Northwest Fair Association has indicated that they would prefer a use of longer duration, preferably five to eight years. 4. RENT - License Aareement Section 4 Rent ( lines 56- 711 Staff has proposed an annual fee of $ 20, 000, plus 5% of gross receipts charge of all business conducted on the Fairgrounds. Although the Northwest Florida F? ir Association is a Not- For- Profit entity, the City has considerable debt this and needs some income to help offset the service it must pay on property debt payment. the success of the The Gross Receipts factor permits the City to share in Associations, the more rentals, the operations of the Northwest Florida Fair income and debt service off- set we receive. greater 6, 223. 00 The Northwest Florida Fair Association was paying approximately $ the Forest Service and has indicated annually for their Special Use Permit from rent structure from the City would represent a hardship for that the proposed them. and debate between the Those are the primary issues of which there is discussion Northwest Florida Fair Association and the City. the use of the If we unable to reach a lease agreement by December 31, 2005 are would and the Northwest property by the Northwest Florida Fair Association cease The abandonment Florida Fair Association would be required to file abandonment plan. removal of improvements and the restoration plan would require that they address the area and prescribed time frames for these actions. of the