Fort Walton Beach Council agenda — 11-10-2009 - regular — reading text

State Universities & Private Colleges Policy Committee  Members of the Okaloosa legislative delegation include Representatives Marti Coley, Ray Sansom, Greg Evers, Senators Don Gaetz and Durell Peaden. Each member of the delegation also represents all or parts of other counties in Northwest Florida, Thank you for your dedicated service in these challenging times and thank you, in advance, for your testimony should you desire to appear at the delegation meeting. If you need any other information, please feel free to contact me. Respectfully, Representative Brad Drake Chairman, Okaloosa Legislative Delegation 112-  CITY COUNCIL MEETING November 10, 2009 City Manager Reports Rental Property Summary Synopsis: An update ofCouncil directed action on leased properties Agenda Item Number: 1001  CITY OF FORT WALTON BEACH, FLORIDA MEMORANDUM Office of the City Manager DATE: November 4, 2009 TO: Honorable Mayor and Council Membe FROM: Robert T. Mearns, City Manager SUBJECT: Status Report on Leases Of Cit wned Properties 1. Background Since September the City Council has reviewed and took action on four (4) leases of City owned properties and directed the City Manager to negotiate leases with each. This memorandum is a status report on the leases: 1. 1. Emerald Coast Science Center ( ECSC)., The City Council gave the ECSC one year to negotiate and execute a new lease. The ECSC director Jamie LaFollette and I met in September to negotiate a new lease, the core issues being term, rent, and maintenance responsibilities. The annual rent for the first term is to be the sum equal to the ad valorem taxes based on the exemption value of the property that would be paid to the city in November of each year. In addition to that amount a sum equal to the average maintenance rolling costs incurred by the over the previous five ( 5) years will be paid. The rent is payable in one annual installment on the 1 st day of October of each calendar year during the term of the lease. Based on this methodology, the first year' s rent would be $ 3, 427. Example: Exemption value of $618,165 x millage rate of 4. 1986 = $ 2, 595 + average maintenance cost of $832 = $ 3, 427). 1. 1. 1. The term of the lease is five ( 5) years with one ( 1) option to renew for another five ( 5) years. If the option is exercised, the rent will be re- negotiated. 1. 1. 2. The City will maintain the exterior of the building and the ECSC will maintain the interior. The city has inspected the interior and has made a detailed list of corrections necessary for the ECSC to perform. 1. 1. 3. The issues were addressed and agreed upon at the staff level and a lease was provided to the ECSC in September. An ECSC Board member has an issue with the indemnification clause in the lease that was discussed between him and the City Attorney. Inasmuch as all of the leases are standard and designed to protect the city' s interest, the city was not amenable to negotiating any aspect of that clause. To date the ECSC has not signed the lease. 113- 1. 2. Kiwanis Club Boy Scout Hut. The term is five years with a five year renewal option at $ 1. 00 per year. The lease has been signed. 1. 3. Hi steppers — The Council extended the current lease for five years, hence there was no action necessary by staff. 1. 4. Playground Gem and Mineral Society. The lease was extended for a period of one year to allow the Society time to promote its services to the community. Staff has met with the Society in an effort to assist them in developing a higher visibility and recognition factor. 114-  CITY COUNCIL MEETING November 10, 2009 City Attorney Reports No Backup) Agenda Item Number: 11  CITY COUNCIL MEETING November 10, 2009 Mayor /Council Comments No Backup) Agenda Item Number: 12