Okaloosa County BOCC — April 18, 2017 — Okaloosa Island Pier Lease and Assignment — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 18, 2017 TO: Honorable Chairman and Members of the Board FROM: Jason Autrey SUBJECT: Okaloosa Island Pier Lease and Assignment DEPARTMENT: Public Works BCC DISTRICT: 2 STATEMENT OF ISSUE: Chris Cadenhead of Pier Associates, Inc. has executed an Amended and Restated Lease for the Okaloosa Island Pier and Restaurant. This item was first presented to the Board of County Commissioners on March 7, 2017, however it was tabled to allow for repair work to be done and payments to be made. At the same meeting, Mr. David Moon of Angler's Beachside Café, Inc., presented a request to the Board of County Commissioners for an assignment of the lease. This item was tabled at the March 7 meeting for consideration again on April 18. BACKGROUND: As presented on March 7th, there were several outstanding issues related to the County's lease with Pier Associates, Inc. concerning the Pier. Due to the deficiencies the Board continued the matter to allow completion of the various repairs at the pier and for the payment of all moneys due. At this point, certain events have occurred which are relevant to the consideration of these issues. This item is presented for discussion purposes as to the following matters:  There has been an unfortunate history of problems in the compliance with the lease with respect to the maintenance of the area. Staff has continued to actively monitor the physical maintenance of the pier and it appears as though the deficiencies noted have been addressed, though it has taken well over a year to finally resolve those issues. Some of these constituted safety issues. Routine inspections will continue and a timely response to maintenance items noted will be expected.  The second item of concern relates to various payments associated with the pier. Though the rental payments are current, reimbursements to the County are due for payments made on the State Submerged Land Lease and a sales tax liability, which was determined by the Department of Revenue in its audit. Both of these payments are a direct result of the commercial operation by Pier Associates at the pier. A copy of the letter to Pier Associates, Inc. dated February 28, 2017 outlining the payments due is provided. The Board previously directed that all those payments were required to be made prior to the consideration of the assignment, but as of this date they have not been paid. Staff has received a letter from Mr. Dana Matthews, counsel for David Moon of Angler’s Beachside Café, Inc., which indicates that the money is being held by his law firm and would be paid once the Board approves an assignment of the lease to Angler’s. A copy of this letter is attached for reference.  Third, legal counsel for the County prepared an Amended and Restated Lease, which has been executed by Mr. Cadenhead on behalf of Pier Associates, Inc. That Amended and  Restated Lease was presented to the Board on March 7th, but tabled at that time due to the outstanding maintenance and payment issues described above. The request for consideration is presented again as requested by the Board.  Staff has received a request to assign the pier lease from Pier Associates, Inc. to Angler's Beachside Café, Inc. Prior to that assignment being effective, the Board must consent to the assignment and under the terms of the existing lease, such consent may not be unreasonably withheld. Two letters from Mr. Matthews related to this request (one dated March 10, 2017 and the second dated March 28, 2017) are included for reference.  Finally, though all of the above matters have been pending for a