Okaloosa County BOCC — March 15, 2016 — Emerald Coast Beach Management Amendment

SECOND AMENDMENT TO PUBLIC PARK LEASE BETWEEN OKALOOSA COUNTY AND EMERALD COAST BEACH MANAGEMENT, INC. This SECOND AMENDMENT TO PUBLIC PARK LEASE (the “Second Amendment”) is hereby entered into between the Board of County Commissioners of Okaloosa County (the “County”) and Emerald Coast Beach Management, Inc. (“Emerald Coast”). WHEREAS, the Board of County Commissioners of Okaloosa County (the “County”) entered into Public Park Lease with Emerald Coast Beach Management, Inc. (“Emerald Coast”) on October 25", 1988 for certain property at James Lee Park (the “Initial Lease”); and WHEREAS, the term of the Initial Lease was for 25 years with a termination date of October 23, 2013; and WHEREAS, the rental rate under the Initial Lease was $12,500 per year payable in advance, with the rate increasing by twenty percent (20%) after each five (5) year period; and WHEREAS, the Board of County Commissioners, at its meeting of October 29, 1996, extended the term of the Initial Lease for an additional five (5) years with a termination date of October 24, 2018 (the “First Amendment”); and WHEREAS, the current rental rate under the First Amendment is $31,104 per year, which will continue to be the rate until the termination date of October 24,2018; WHEREAS, the parties desire to amend the First Amendment to provide an additional extension of time for the expiration of the lease and to modify the rental rates to more closely address the market value of the leasehold interests. NOW THEREFORE, the County and Emerald Coast do agree to amend the Initial Lease, as subsequently amended by the First Amendment, to provide as follows: Section 1. Section 2 of the Initial Lease, as amended by the First Amendment, is hereby amended to read as follows in its entirety: 2. TERM: The term of this lease shall be extended from its current termination date of October 23, 2018 until December 31, 2039. Beginning January 1, 2016 each annual term of this lease shall be from January 1% through December 310f the same year. Section 2. Section 3 of the Initial Lease, as amended by the First Amendment, is hereby amended to read as follows in its entirety: Section 3. RENT: Emerald Coast shall pay as rent in the following amounts: 1. For the period of October 25, 2015 through December 31, 2016, Emerald Coast, or its successors and assignees, shall pay the annual amount of $31,104.00. If such amount has been paid to the County prior to the entry of this Second Amendment, then Emerald Coast shall receive a full credit for this amount. 2. The Rent under this Initial Lease, as amended, shall be as follows: a. Beginning for the term of January 1, 2017 to December 31, 2021, and for the next four years thereafter, the base rent shall be $250,000 per annum. b. Beginning in annual term year of January 1, 2022 through December 31, 2022, and for the next four years thereafter, the base rent shall be increased each year by two percent (2%) per year. c. Beginning in annual term year of January 1, 2027 through December 31, 2027, and for the next four years thereafter, the base rent shall be increased each year by three percent (3%) per year. d. Beginning in annual term year of January 1, 2032 through December 31, 2032 and through the end of the term on December 31, 2039, the base rent shall be increased each year by three and one half percent (3.5%) per year. 3. All annual payments for Rent shall be paid prior to October 1 of each year for the upcoming January 1 through December 31 annual term (the “Due Date”). In the event that Emerald Coast fails to pay the Rent prior to the October 1 Due Date, nor pays within the ten (10) days thereafter (the “Grace Period”), then that failure to pay the Rent shall be deemed a breach of the Initial Lease, as amended. In the event that there is a breach based upon the failure to pay the Rent, the County shall provide notice of the failure to pay. Emerald Coast shall have fifteen (15) days from receipt of the notice to cure the beach