Fort Walton Beach Council minutes — 12-20-05 Special — reading text

57 MINUTES OF THE SPECIAL COUNCIL MEETING OF THE CITY OF FORT WALTON BEACH, FLORIDA DECEMBER 20, 2005 INTRODUCTION A special meeting of the City Council of Fort Walton Beach, Florida, was held on December 20, 2005 at 5: 30 p. m. in the Council Chambers at Tuesday, Hall, with City the following members present: I""'" Mayor Mike Anderson Councilmen: Mike Holmes, Bill Patterson, Bob Campbell, Jim Tucker, Dr. Wayne Pullen, Jim Hartwell, and Mike Minich. Also Present: Joyce Shanahan, City Manager; Finance Director ( Vacant); Helen Spencer, City Clerk; Toni Craig, City Attorney; Department Directors; and Media CALL TO ORDER The Mayor called the meeting to order to discuss the proposed License Agreement between the City and the Northwest Florida Fair Association. He requested anyone who wished to address Council to approach the podium after being recognized, and then state his or her name and address for the record. PLEDGE The Mayor led in the Pledge of Allegiance. PROPOSED LICENSE AGREEMENT DISCUSSION Consideration of a request to authorize the Mayor to execute the proposed License Agreement between the City and the Northwest Florida Fair Association for the Building Footprint Only, With Joint Permitted Use of Other Areas. Further, if we are unable to achieve a satisfactory License Agreement with the Northwest Fair Association by 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 days of the expiration of their Special Use Permit with the US Department of Agriculture, Division of Forest Service. The Mayor announced that a document faxed from Holmes Towing was actually forwarded to Council by Mr. Holmes. The document was actually written by Thornber Smith. Mr. Minich moved to split the consideration, discussion, and voting ofthe proposed License Agreement into three parts and then vote on them separately: 1) The physical dimension of the site; 2) The cost of the rent; and 3) The terms of the lease. Mr. Patterson seconded motion. Mr. Hartwell amended the motion to add a fourth item of discussion, the uses of the property. Mr. Minich seconded the amendment and it carried by a vote of 5 to 2 with I""'" Holmes, Patterson, Campbell, Hartwell, and Minich in favor and Tucker and Pullen opposed. Mr. Minich explained his reasoning that it would be easier to discuss and vote on each issue separately. The City Manager explained that even if each item was voted on separately, the entire lease would still have to be voted on and approved as it may be amended by Council action. The Mayor called for the vote on the motion as amended and it carried unanimously with Holmes, Patterson, Campbell, Tucker, Pullen, Hartwell, and Minich in favor. 58 12/20105 PROPOSED AGREEMENT ( CONTI The City Manager reviewed the background on the purchase of the property at a cost of 4, 000, 000. 00 from the US Department of Agriculture, Division of Forest Service. She advised that as a condition of the sale, the City agreed to assume all rights and obligations of the Forest Service and their Special Use Permit with the Northwest Florida Fair from the time of sale until December 31, 2005, when the use permit expires. The City Manager explained the City has met with the Fair Association the past months and areas of concern to the Fair Association include incidental and short terms rentals of 48 hours; the term of the lease; and the rent. She also explained the license agreement is not a lease but a license to use the property. Charles Rigdon, President of the Northwest Florida Association, introduced the Board of Directors for the Fair, and advised they are ready to answer any questions that Council might have. PHYSICAL LAYOUT/ DIMENSION OF PROPERTY The City has drafted a license agreement that limits the use of the Fair Association to the footprint of the buildings they currently own and occupy which is approximately 6. 29 acres (Area 1); use and access to the parking area; and access to 6. 18 acres ( area 2) as needed, but without exclusive usage. The City Manager explained that the City is not taking ownership or use of any of the buildings of any area, and the Fair Association will have the right to access all facilities/ storage facilities on the property; however, they do not have exclusive use of the land. Mr. Rigdon explained the majority of the buildings on the property were built and financed by the Fair Association; the remaining buildings were built and paid for with state grants and fair activities. He advised that in the mid- 80' s the City paid $ 30, 000 to reduce debt service, and that is the only monies paid by the City for any of the buildings that he is aware of. Clarification was given that the only area for exclusive use by the Fair Association would be the 6. 29 acres, or Area 1. Mr. Minich moved to give the Northwest Florida Fair Association exclusive use of both Areas 1, the 6. 29 acres, and Area 2, the 6. 18 acres. Mr. Patterson seconded motion. Mr. Minich explained that Area 2 contains electrical drops and is behind a locked fence and that is where the fair is held. He informed that the Fair Association has the only key to get to that area, and he does not see where the City has a use for that area. It was noted that Area 2 will not be open to the public and that the Fair Association will have unexclusive usage. Also mentioned was that Area 2 is a secure area and the City needs to have unlimited access to it for emergencies, such as hurricanes, etc. The City Manager informed that, based on conversations with Mr. Rigdon, the possibility exists that the fair may be moved to the front parking lot to make it more visible and accessible to the public. The Mayor called for t he vote 0 n the motion tog ive t he Northwest Florida Fair Association exclusive use of both Areas 1, the 6. 29 acres, and Area 2, the 6. 18 acres and it failed by a vote of 2 to 5 with Patterson and Minich in favor and Holmes, Campbell, Tucker, Pullen, and Hartwell opposed.  12/ 20/ 05 59 fHYSICAL LAyour (CONT] Dr. Pullen moved the use of the Fair Association to the footprint of the currently own and occupy which is buildings approximately 6. 29 acres (Area 1); use and access tothey parking area; and access to 6. 18 acres the (area 2) asneeded, but without exclusive Patterson seconded motion and it usage. Mr. carried 6 to 1 with Holmes, Pullen, and Hartwell in favor and Patterson, Campbell, Tucker, Minich Opposed. COST OF RENT The City Attorney advised that on Line 57 of the License as the rent shall be Agreement, the word ' monthly' be deleted paid on an annual basis on January 1. Discussion ensued as to having payments on a quarterly basis at a cost of $20, and that the City receive 5% of gross receipts 000 per quarter, charge of all business Fairgrounds. Also discussed was whether there was conducted on the a reference to late advised a clause had been added fees. The City that stated the Attorney cause," which could construe agreement could be terminated "with or without that to mean lack of provisions in the lease. payment, and there was no penalty or default Mr. Rigdon advised that clause was not included in the first draft agreement he received; Manager advised it was included in the document sent to the City Charles Rigdon, Sr. Mr. Tucker moved to accept the rent amount of $20, 000 on a January 1, April 1 , July 1, and October 1, of each quarterly basis as follows: business conducted on the demised year, plus 5% of the gross receipts of all premises. Mr. Patterson seconded motion.