Fort Walton Beach Council agenda — 10-25-2006 ‎(special)‎ — reading text

days to complete the removal of their buildings and return the property to pre- license agreement condition. If the NWF Fair Association does not remove all property within the time prescribed and approved in the abandonment plan then all facilities become property of the City as indicated in Section 11 C. of the license agreement. Page 3  If Council desires to grant an extended time period for facility removal, then staff recommends that Council direct the NWF Fair Association to provide a detailed inventory and time- table for facility removal. Further a sequence of removal and a percentage of property cleared with benchmarks and milestones should be established. CONCLUSION: Should Council be interested in taking any action on the request by the NWF Fair Association as outlined above, then staff will require specific direction as to that action. Respectfully Submitted, q~ a~ h~ y Manager Attachments: A- License Agreement B- Termination Letter C- Letter from J. LaDon Dewrell D- Letter from NWF Fair Association E- City Code - City Excess Real Property F- Letter from Fire Marshal to NWF Fair Association Page 4 Attachment A - License Agreement  FAIRGROUNDS LESSEE: NWF Fair Association, Inc. LESSOR: City of Fort Walton Beach LOCATION: 1958 Lewis Turner Boulevard DESCRIPTION: Area 1 - Fairgrounds building is 6. 29 acres Area 2 - area behind building is 6. 18 acres LEASE TERMS: 3 years, beginning January 1, 2006 EXPIRATION: Lease shall expire as of Midnight, 31 December 2008 or upon 180 days notice by the City Council, with or without cause. Not sooner than March 1, 2008 or later than June 1, 2008, Lessee shall give notice of its intent to renegotiate the lease of the premises or notice of its intent to surrender the premises. INSURANCE: Lessee shall obtain and keep in force insurance as . stipulated in Section 9, with City Council named as additional insured PAYMENT: 20, 000 annually paid quarterly on the first day of the first month of each quarter ( January, April, July, October) of each year. Rent shall include an additional 5% of gross receipts charges of all business conducted on the demised premises. Gross receipts charges shall be payable annually no later than 30 December ofeach year.  License Agreement Building Footprint Only With Joint Permitted Use Of Other Areas This License Agreement is being executed on December 29, 2005 2005, between the City Council of Fort Walton Beach, Flori~ a municipal corporation, City," and the Northwest Florida Fair Association, Inc., " Licensee." The term " City" shall be construed to mean only the City Council of the City of Fort Walton Beach. Section 1. Premises Inconsideration of the covenants, conditions, agreements and stipulations in provided this License, the City agrees to permit the use by Licensee of that area of land particularly described and marked as " 1" and " 2" on Exhibit A, situated in Okaloosa County, Florida, and referred to as " Premises." Further, in addition to the land described in Exhibit A, and based on the Operation Plan, the City Council shall permit the use of specific delineated parking areas for the time period of any approved event. Licensee shall have nonexclusive use of the Area "2" as marked on Exhibit A. The City reserves the right to use Area " 2" for public purposes, including by not limited to the City's administrative, police, fire, and other needs. This use by the City shall not include access or use to Area " 2" by the general public. Section 2. Use & Conditions A. Licensee agrees it shall use the demised Premises solely for agricultural, educational and fair purposes, consistent with the municipal public purposes and the intent and requirements of Chapter 616, Florida Statutes ( 2005). B. Licensee shall provide, prior to 1 January 2006, an Operations Plan. The Operations Plan shall include, at a minimum, the following information: Licensee' s current corporate structure verification; a list of all scheduled and anticipated events with a description of the event; the dates for all scheduled and anticipated events; and a concise statement regarding the parking area use needed for each event. No activity shall be pennitted upon the Premises other than those activities and events specifically authorized by the City Council in the Operations Plan, without the written consent of the City Council. In subsequent years, if any event, activity, or element of the 2006 Operations Plan changes, Licensee shall submit a notice of change before 1 December of the year preceding the year in which the change occurs to receive the consent and approval of City Council for such change in the Operations Plan. 1- Section 3. Term and Commencement Date A. The tenn of this License Agreement shall be for a period of three ( 3) years, commencing on the 1st day of January 2006, and ending at midnight on the 31st day of December 2008. B. Not sooner than I March 2008 or later than 1 June 2008, the Licensee shall give notice to the City Council of its intent to renegotiate the license of the Premises or notice of its intent to surrender the Premises. So long as Licensee is in compliance with the tenns and conditions of this License Agreement, Licensee gives notice of its intent to renegotiate the license, and a specific finding is made by the City Council that entering into a license with Licensee serves a public purpose and puts the Premises to its best use, the City Council and Licensee shall negotiate in good faith to reach new tenns for a License Agreement. If Licensee gives notice of its intent to surrender the Premises, the Licensee shall begin immediate actions pursuant to Section 11 below. Section 4. Rent A. Rent for the term of this License shall be $ 20, 000 annually and shall be paid quarterly on the first day of the first month of each quarter ( January, April, July, October) of each year. The first rent payment shall be due on 1 January 2006. Additionally, rent shall include an additional 5% of gross receipts charges of all business conducted on the demised Premises. The gross receipts charges shall be payable annually no later than 30 December of each year. B. Rent for any additional License tenns shall be negotiated after notice by Licensee of its intent to renegotiate the license of the Premises. It is understood by the parties at the time of execution of this License that any renegotiation of the Rent shall be based on the intended use of the Premises and may be at fair market value for the Premises at that time. It is further understood that such new Rent may include an annual adjustment based on the CPI calculated of an average for the previous year sampled at two months prior to the start of the new year. C. Rent payments shall be made payable to the " City of Fort Walton Beach" and mailed or delivered to the Finance Director, at PO Box 4009, Fort Walton Beach, Florida 32549-4009. Section 5. Taxes and Fees A. The parties acknowledge that the Premises are owned by the City of Fort Walton Beach, a municipality, and that Licensee is a corporation fonned pursuant to Chapter 616, and both entities are exempt :trom ad valorem real property taxation. However, this License Agreement may create a possessory interest or security interest in Licensee that is subject to taxation. Should this occur, the Licensee agrees to pay all such taxes prior to 2- delinquency. B. The Licensee shall pay all license fees or other governmental charges, including but not limited to commercial personal property taxes, sales and use taxes, resort taxes, etc.) assessed or imposed on the personal property of the Licensee located on the demised Premises or upon the business operations of the Licensee conducted on the demised Premises, or upon the personal property of the City, if any, used by the Licensee on the demised Premises. C. If the City is obligated to collect any taxes, fees, or charges, such taxes, fees, or charges shall be invoiced by the City to Licensee, and Licensee shall make such payment as invoiced and forward such payment to the City . Section 6. Utilities, Services Required The Licensee shall pay before delinquency all charges for utilities, including but not limited to water, electricity, gas, heating, cooling, sewer, cable and telephone, used by the Licensee on the Premises, and all charges for solid waste collection service. The Licensee shall contract with the City Council of Fort Walton Beach Public Works Deparbnent for dumpster service and be responsible for disposal of all generated solid waste. The Licensee shall participate in the City' s recycling program. Section 7. Alterations, Additions, Improvements, Repairs, Destruction A. The Licensee may not make alterations, additions, or improvements, temporary or pennanent,to the Premises, except by written consent of the City Council. B. The Licensee, as the owner of the buildings and other aboveground improvements shown on Exhibit A,assumes sole responsibility for maintenance and repair of the structures on the Premises and Area " 2" as marked on Exhibit A, including compliance with all laws, ordinances and regulations that are or may become applicable to such Premises from time to time. The Licensee shall at its sole cost and expense, promptly repair, replace and at all times maintain in good condition the Premises. C. In the event the Premises is destroyed by fifty percent ( 50%) or more of the total structural components or area of the improvement, as defined in the City Council Code, at any time, this License shall tenninate. Otherwise if damage is less than 50% of the total structural components or area of the improvement, Licensee shall, within thirty days from the date of such damage or destructio~ submit to the City Council its plan for repairing or abandoning, pursuant to section 10 below, the Premises. Section 8. Signs All signage of any kind on the premise shall be in accordance with the Code of Ordinances of the City Council of Fort Walton Beach. 3- Section 9. Insurance A. The Licensee shall, during the tenn, and at its sole expense, obtain and keep in force, with City Council named as additional insured, commercial general liability insurance including personal injury, bodily injury, broad fonn property damage, operations hazard, owner's protective coverage, contractual liability and products and completed operations liability in limits not less than $ 1, 000,000 for each occurrence and in the aggregate. ( The aggregate limits of such insurance are to apply specifically to the Premises and Area " 2" and not to other or multiple locations). The Licensee shall be responsible for maintaining and paying the premium for