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

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 by paying the Rent amounts due in full, along with a penalty of ten percent (10%) on the outstanding amount due (the “Cure Period”). If Emerald Coast fails to cure the default within the fifteen day Cure Period then the County may terminate the lease with notice to Emerald Coast and take immediate possession of the Property. 4. The annual Rent amounts shall be paid in full. The amounts due for the remainder of the term of the Initial Lease, as amended, with the application of the various adjustments as set forth herein, shall be as follows: RENTAL PERIOD AMOUNT OF RENT DUE January 1, 2017 to December 31, 2017 $250,000.00 January 1, 2018 to December 31, 2018 $250,000.00 January 1, 2019 to December 31, 2019 $250,000.00 January 1, 2020 to December 31, 2020 $250,000.00 January 1, 2021 to December 31, 2021 $250,000.00 January 1, 2022 to December 31, 2022 $255,000.00 January 1, 2023 to December 31, 2023 $260,100.00 January 1, 2024 to December 31, 2024 $265,302.00 January 1, 2025 to December 31, 2025 $270,608.00 January 1, 2026 to December 31, 2026 $276,020.00 January 1, 2027 to December 31, 2027 $284,301.00 January 1, 2028 to December 31, 2028 $292,830.00 January 1, 2029 to December 31, 2029 $301,615.00 January 1, 2030 to December 31, 2030 $310,663.00 January 1, 2031 to December 31, 2031 $319,983.00 January 1, 2032 to December 31, 2032 $331,182.00 January 1, 2033 to December 31, 2033 $342,773.00 January 1, 2034 to December 31, 2034 $354,770.00 January 1, 2035 to December 31, 2035 $367,187.00 January 1, 2036 to December 31, 2036 $380,039.00 January 1, 2037 to December 31, 2037 $393,340.00 January 1, 2038 to December 31, 2038 $407,107.00 January 1, 2039 to December 31, 2039 $421,356.00 5. In addition to the above rental amounts, Emerald Coast shall be responsible for and agree to pay any State sales tax or any other tax, assessment or surcharge on the Rent paid or any other consideration of the Initial Lease, as amended, paid to the County, plus any ad valorem, intangible, or other tax or assessment imposed by the State or Federal law or regulation, or any County ordinance or requirement. Emerald Coast shall also pay to the appropriate entity any other charges that are imposed based upon the activities of Emerald Coast on the Property, including the activities of its sub lessees or assigns. Section 3. All other terms and provisions of the Initial Lease, as subsequently amended, shall remain in force and effect to the extent that they have not been altered or are otherwise inconsistent with the Second Amendment. BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY By: Charles K.Windes, Jr. Chairman Date: ATTEST: J. D. Peacock, II Clerk EMERALD COAST BEACH MANAGEMENT, INC. By%/‘ Robert BonezAi— STATE OF FLORIDA COUNTY OF OKALOOSA The foregoing instrument was acknowledged before me this ’fi‘: day of Un, 2016, by Robert Bonezzi, the ?{ £5ident of Emerald Coast Beach Management, Inc.. @ 00 2 — (sg@ature of Notary Public) Yot (v (Print Name of Notary Public) > - L+ AHAM f .'5 Notary Public - State of Florigs ! 9\:_5 My Comm. Expires Aug 21, 201c ¢ 3 Commission # FF 151594 ¢ (Commission Number) \/ Personally Known or Produced as identification.