Okaloosa County BOCC — December 1, 2015 — Okaloosa Island Pier - Pending Issues — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: December 1, 2015 TO: Honorable Chairman and Members of the Board FROM: Rick Owen SUBJECT: Okaloosa Island Pier - Pending Issues DEPARTMENT: County Administrator BCC DISTRICT: 2 STATEMENT OF ISSUE: At the Board’s meeting of November 17, 2015, the Board was provided with an update of the status of the lease of Pier Associates, Inc. As indicated at that time, there existed numerous violations of the lease concerning the conditions at the pier and the failure to property maintain the area. The Board directed staff to bring this matter back to the Board for further information concerning both the correction of the maintenance deficiencies at the pier and certain issues concerning the failure of Pier Associates, Inc. to pay agreed upon amounts to reimburse the County for fees imposed by State as a result of the activities of Pier Associates. BACKGROUND AND ANALYSIS: At the Board’s meeting of November 17, 2015, the Board was provided with an update of the status of issues relating to the lease of Pier Associates, Inc. As indicated at that time, there existed numerous violations of the lease concerning the conditions at the pier and the failure to property maintain the area. The Board directed staff to bring this matter back to the Board for further information concerning both the correction of the maintenance deficiencies at the pier and certain issues concerning the failure of Pier Associates, Inc. to pay agreed upon amounts to reimburse the County for fees imposed by State as a result of the activities of Pier Associates. Based upon several complaints, staff inspected the pier and found several violations of the lease, including some matters that constituted safety concerns. On October 9, 2015, staff wrote a letter to Pier Associates, Inc. noting the violations and giving fifteen days to cure those deficiencies. Though some of the violations were corrected, there continued to be outstanding issues. Pier Associates has requested an extension of time to complete the necessary repairs. They have requested until December 31, 2015. The matter was brought to the Board at its November 17, 2015 meeting to consider the requested extension and/or provide direction to staff. The Board continued the matter to its December 1, 2015 meeting for an update on the status of the maintenance deficiencies and to provide additional information concerning the failure of the Lessee to reimburse the County for fees imposed by the State as a result of the commercial activities of Pier Associates. Based upon a review of the documentation, it appears that there was a separate understanding and agreement whereby the Lessee would pay the amount assessed to the County by the State of Florida for those revenues generated by the Lessee. This assessment by the State began in May, 2006. It appears that the intent of the parties was that the Lessee was to begin making reimbursement payments to the County effective July 1, 2010. The Lessee has made some payments on a sporadic basis. The last payment was made by the Lessee in November, 2014. Currently, the difference between the total amounts assessed by the Department of Environmental Protection on the gross revenue of the Lessee from May, 2006 through December 1, 2015 and the amount paid by the Lessee is $96,882.31. The difference between the amounts assessed by the Department of Environmental Protection on the gross revenue of the Lessee from July 1, 2010 through December 1, 2015 is $51,181.02. More detailed information concerning the status of the maintenance deficiencies and payment issues are included as part of this Agenda Request. It will be supplemented as additional relevant information becomes available. OPTIONS: Provide direction to staff as to whether an extension of time is allowed for the correction of the maintenance d