Fort Walton Beach Council agenda — 11-14-2006‎(workshop)‎ — reading text

J. Tringas and James C. Cox to lease two parcels of property for use as a municipal parking lot ( Exhibit 2). September 16, 1966 - Lease agreement executed for the Tringas property for use as a municipal parking from month to month with 30 days notice given by either party for termination of the lease. The City agreed to pay the sum of $ 30. 00 per month commencing June 1, 1966 ( Exhibit 3). January 17, 1969 - The City Council authorized the increase of lease payments $ 15 per month for the two parking lots - Tringas and Cox ( Exhibit 4). January 6, 1970 - The City proposed to pay $ 1, 810. 10 to remove existing cement, grade and pave the municipal parking area on US 98 west of Jimmies News Stand as Project #70- 07 ( Exhibit 5). April 22, 1970 - The City Council approved project 70-07 to make improvements to the Tringas Parking Lot (Exhibit 6). March 13, 1975 - Lease agreement for the Tringas property for use as a municipal parking. The City agreed to pay as and for rent for the property a sum equal to the annual County and City ad valorem taxes commencing January 1, 1975 ( Exhibit 7). City Operating Budget FY 2005/06 - Budget item to restripe the Tringas Parking Lot including City- owned portion) at an estimated $ 7, 000 and to add new landscaping for 2, 000 ( Exhibit 8). City Operating Budget FY 2006/07 - Budget item to restripe the Tringas Parking Lot including City- owned portion) was removed due to uncertainty about the future of the parking lot; however, landscaping for $2,000 was retained in the budget ( Exhibit 9). Discussion Following is a discussion on the three requests made by Mr. Tringas in the letter dated November 3, 2006. 1, Proposal for an increase in rent from the current reimbursement of property tax to a ufair market rent. " Staff does not have the in- house expertise needed to propose a " fair market rent" for leasing a parking lot.As Mr. Tringas states in his letter, the taxes are currently upwards of 3000 per year, or $ 250 per month. The City maintains the parking lot and the landscaping, which is also an additional expense that Mr. Tringas does not have to bear at this time. As mentioned above, the City has plans to add landscaping and is considering overlaying the parking lot and re- striping it to improve its appearance and efficiency. Staff calculated the number of parking spaces that would be required for the businesses located on Mr. Tringas' property to the east of the parking lot if commercial spaces were required in the MUMS Special Parking District. The surf shop would require 20 spaces, and the retail shop would require 10 spaces. The total number of spaces needed to meet the needs of Mr. Tringas' property during regular business hours is 30. The Tringas' portion of the municipal parking lot provides for 29 spaces. The theater, which is open after normal business hours, would require 31 spaces. The entire municipal parking lot provides 61 spaces; therefore, at this time the City is essentially maintaining Mr. Tringas' portion of the lot for the needs of the businesses located on his property. If the Tringas' parcel was designed as a stand-alone parking lot, it would be required to provide its own egress/ ingress separate from the City' s parcel. This would necessitate a total redesign of the parking lot to meet City code requirements for driving aisles and parking spaces, including handicapped accessible spaces, and perimeter landscaped areas, which may well result in a net loss of parking spaces. 2. Regulations and restrictions for constructing a fence on private property that fronts on Main Street and Brooks Street. A four-foot fence would be allowed along Brooks Street and US 98, and a six-foot fence would be allowed along the west property line. The Tringas parcel is located within the MUMS ( Mixed- Use Main Street) zoning district. In that district, off-street parking lots are subject to the design standards and standards for landscaping and buffering requirements contained in Chapter 12. 76 of the City's Land Development Code ( LDC). Exhibit 10 lists the LDC regulations for landscaping and buffering applicable to the Tringas Parking Lot property. A summary of the requirements is listed below: a. A ten- foot front perimeter landscape area is required abutting the property line on Brooks Street and US 98; b. A five-foot perimeter landscape area is required abutting the east and west property lines of the parcel. c. The landscape areas require planting of trees and shrubs/fencing to a maximum four feet in height. However, before the parcel can be redesigned, whether as a parking lot separate from the City- owned parking lot or as another type of development, there is an issue of the legal description of the entire municipal parking lot. Based on review by the City's Public Works Department, there is a " gap" between the City owned parcel and the Tringas owned parcel and ownership of that "gap" needs to be established ( Exhibit 11) Page 2 3. Submit the contract giving the City permission to add parallel parking on Brooks Street when that project was under construction. During the construction phase of the Brooks Street streets cape project in the summer of 2002, the City concluded that the landscaping and on- street parking spaces adjacent to the Tringas portion of the municipal parking lot were constructed within the public righto- f- way so an easement would not be needed for those facilities. A portion of the sidewalk is, however, located within the leased property. Since provision of a public sidewalk is a requirement of commercial development in the City, a sidewalk would be required in the event the property is developed as a parking lot or as another commercial use. In the event of the termination of the lease and the redevelopment of the property, Mr. Tringas would be allowed to grant an easement to the City for that portion of the sidewalk within the private property if a new sidewalk could not be constructed completely within the Brooks Street right-of-way. Attachments Exhibit 1 : Letter from Mr. Tringas Exhibit 2: Resolution 66- 22 Exhibit 3: Lease agreement dated 9/ 16/ 1966 Exhibit 4: Increase of lease payment letter Exhibit 5: Proposal for improvements to the parking lot - Project 70- 07 Exhibit 6: City Council approval for Project 70-07 Exhibit 7: New lease agreement dated 3/ 13/ 1975 Exhibit 8: CRA Budget FY 2005/06 Exhibit 9: CRA Budget FY 2006/ 07 Exhibit 10: LDC regulations applicable to the Tringas Property Exhibit 11: Email from Public Works relating to property ownership Page 3  EXHIBIT 1 JAMES J. & KATHRYN TRINGAS IRREVOCABLE TRUST Post Office Drawer 1327 Fort Walton Beach, Florida 332549 Telephone: 850- 796- 2000 November 3, 2006 City of Fort Walton Beach Post Office Box 4009 Fort Walton Beach, Florida 32549 Attention: Ms. Lisa Absher Finance Director Reference: Parking Lot Lease to City of Fort Walton Dear Ms. Absher: The Tringas Family is interested in exploring the possibility of making changes to the above referenced contract for Parking with the City. In reviewing the contract with the City, we notice that it includes language'.that would require the Tringas Family to provide a 30 day notice for the termination of the lease or the contract would automatically extend until such 30 day notice was given. Although the Tringas Family does not wish to formally terminate this agreement at this time, we would like to offer the City an opportunity to propose an increase in rent from the current reimbursement of property tax as they have for the last 50 years, to a fair market rent. Only last year did the taxes reach the $ 3, 000 mark; previous years, as you know, have been much less. For that reason we are providing notice by this letter that within the next 30 days, the City will propose a rental increase with a 12 month term to be renegotiated 90 days prior to the end of that term, or any other proposal that the City would deem reasonable considering the City has had a wonderful rent factor for over 50 years. Another Reference: So that I do not have to send an additional letter, I would like to respectfully request that you fOnNard the regulations and restrictions for constructing a fence on private property that fronts on Main Street and Brooks Street. Additional Reference: Cut in parallel parking on Brooks Street. We have researched our files and cannot find where written permission was given for the cut in parallel parking spot that was constructed, I think, at the request of the City on the back of our downtown property that fronts on Brooks Street. This was constructed at the time Brooks Street was resurfaced and lighted. City of Fort Walton Beach November 3, 2006 Page Two We woujd like to request that the City please furnish us a copy of the contract giving the city permission to make this change. We had requested this at the time the parking spot was constructed but our files do not indicate that we received a response. Mayor Mike Anderson Ms. Joyce Shanahan 8 Carlyle Cciurt, NE City Manager Fort Walton Beach, Florida 32547 City of Fort Walton Beach P. O. Box 4009 Councilman Mike Holmes Fort Walton Beach, Florida 32549 114 Edwards Lane N E Fort Walton Beach, Florida 32548 Councilman Bill Patterson 35 Anastasia Drive SE Fort Walton Beach, Florida 32548 Councilman Bob Campbell 233 Yacht Club Drive NE Fort Walton Beach, FI32548 Councilman James M. Tucker 590 L' Ombre Court, NE Fort Walton Beach, FI 32547 Councilman Wayne G. Pullen, DDS 324 Lake Drive, NW Fort Walton Beach, FI32548 Councilman Jim Hartwell 64 Laurie Drive NE Fort Walton Beach, FI. 32548 Mr. Mike Minich 106 Waynel Circle SE Fort Walton Beach, FI 32548 EXHIBIT 2 2-' UJDLUTI01l ~. rtJ -:( l ~. . l A BUOLUfIOIf A'ftItOlDIn TQ OITY or " 1ft" WALT. . ASK Te UU'.. c:& 17 AD PAlULI ", mt ' 01 lGIJIIPtlL