Fort Walton Beach Council agenda — 10-13-2009 regular — reading text

24O21.24O21. 4949 lotallotal tenderedtendered TransTrans date.-date.- 9/9/ 041if-041if-191191 Time.-Time.- 2-2-27:27: 5858 B4-B4-  CITY COUNCIL MEETING October 13, 2009 Discussion - Direction - Action Action: Review of Leases for Playground Gem and Mineral Society and Playground Amateur Radio Club ynopsis: Council to determine if these organizations provide a municipal need that the City would have to undertake; and determine what lease renewal amount should be Agenda Item Number: 9. 2  CITY OF FORT WALTON BEACH, FLORIDA MEMORANDUM Office of the City Manager DATE: September 23, 2009 TO: Honorable Mayor and Council Members FROM: Robert T. Meares, City Manager SUBJECT: Lease Options on City Owned Properties 1. Background 1. 1 In July staff evaluated city -owned properties to determine how many are qualified for sale, how many have long term leases, and how many properties exist with expired or expiring leases. The findings were sent to the City Council and were heard at the August 3 Special . Meeting, along with a proposed form to be completed by each applicant. The purpose of the form was to create a uniform application for each requestor. Since then four 4) entities have completed the form and submitted their requests. 1. 2 The expiring leases before the City Council are: 1. 2. 1. Playground Gem and Mineral SocietL. 17 First Street. Provides educational opportunities and entertaining programs in the sciences of mineralogy, ecology and the lapidary arts and to promote the hobby of rock collecting. Last leased on 11/ 1/ 99 for ten years, lease expires 10/ 30/ 09. Rent $ 1. 00 per year and lessee performs maintenance, pays utilities and is self -sustaining. Leased area contains 885 sq. ft. Estimated fair market rental value per Property Appraiser' s assessment is $ 3. 50 to $ 4. 50 per sq. ft. or between $ 3, 100 and $ 4, 000 per annum. The Playground Gem and Mineral Society use is permitted in the CF zoning district. 1. 2. 2 Playground Amateur Radio Club. 17 First Street. Provides amateur radio usage. Last leased on 8/ 1/ 99 for ten years, lease expires 7/ 30/ 09. Rent $ 1. 00 per year and lessee performs maintenance. In March 2009 the lease enforced for the first time and the lessee was required to pay utilities as required by the lease. Leased area contains 1, 054 sq. ft. Estimated fair market rental value per Property Appraiser' s assessment is $ 3. 50 to $ 4. 50 per sq. ft., or between $ 3, 700 and $ 4, 750 per annum. The Playground Amateur Radio Club use is permitted in the CF zoning district. The Club asks that the city provide relief to them for all utilities (water, sewer, gas and electricity as required in the previous lease) and access to thermostat control. 2. Discussion 2. 1 The city attorney has advised that in order to provide a reduced or gratuitous lease, the city council must fairly evaluate each entity requesting such a lease in terms of whether it 85-  provides a municipal purpose and not just because it is a non -profit organization. As the city council is the only body that can make that determination, the stated purpose of each organization is contained on the first page of each entities bylaws, attached. The guidelines the city attorney provided are: A. Is the use to be provided on the property essential to the health, morals, safety, protection or welfare of the City? Or B. Is the use to be provided on the property related to the health, morals, safety, protection or welfare of the City? If A, then it could be a tax exempt, gratuitous lease, if also: 1. Leaseholder is a not -for -profit corporation; 2. Corporation. has no stockholders; 3. Profits accrue to the benefit of the public; 4. Services may be restricted to specific groups. If B, then the City Council has more discretion to determine the value for the lease. 2. 2 In either situation the City Council should make legislative findings regarding: 1. The City' s future use for the property; 2. Why the property should not be disposed of by sale and placed on the tax rolls; 3. Who will benefit from the services provided on the property; 4. What benefit the City may receive from the service provided on the property; 5. If an essential service why the City cannot provide said service; 6. Other findings that support the provision of services, type of lease, benefits to City residents, etc. 3. Recommendation 3. 1 Detennine whether the applicant provides a municipal purpose and state the reasons for supporting or not supporting the application. 3. 2 If so, set the lease rate and term of the lease. 3. 3 If not, set the time frame for the tenant to consider the city' s revised lease rate or vacate the premises. 3. 4 If not, direct the city manager to market the property. 86- Playground Gem and Mineral Society 17 First Street 885 sq. ft. 87_  CITY OF FORT WALTON BEACH Memorandum TO: Robert Mearns, City Manager FROM: Brandy Wunker, Finance Director DATE: September 2, 2009 RE: Application for Lease of City Property —Playground Gem and Mineral Society, Inc. 1. Background 1. 1. The Playground Gem and Mineral Society, Inc. ( PGMS) has submitted an application for extension of lease of City property. The application packet is attached. Below are my observations regarding the application packet. 2. Discussion 2. 1. The Playground Gem and Mineral Society, Inc., is recognized in the State of Florida as a tax- exempt organization. 2. 2. The Playground Gem and Mineral Society, Inc., is recognized by the IRS as a 501( C) ( 3) tax- exempt organization. 2. 3. The Playground Gem and Mineral Society, Inc., is requesting rent of $ 1. 00 per year for a term of 5 years for property located at 17B 1 st Street, Fort Walton Beach, FL. 3. Signature Block C 3. 1. Prepared by: 1 Br Wun er, Finance Director Date 3. 2. Reviewed for Agenda. / jfB o Mearns, City Manager Date 88-  Playground Gem and Mineral Society BY -LAWS ARTICLE I Parliamentary Authority Section 1. Roberts Rules of Order ( the latest revision ) shall govern this Society When they are not inconsistent with the By -Laws or the special rules of this Society. Section 2. A Parliamentarian will be selected by members of the Board to serve an indefinite period of time. His or her decision, based on the Articles of Incorp- oration or by -laws of this Society or Roberts Rules of Order, will stand. Article 11 Objectives Section !, a. To providt educational opportunities and entertaining programs in the sciences of Mineralogy, Ecology, and the Lapidary Arts. b. To provide the nucleus of the mineral museum. c. To provide instruction in the Lapidary Arts, and to promote the interests of the hobby of rock collecting. Article III Duties of Officers Section 1.. The President shall preside over all meetings of this Society and of the Board of Directors. He shall be ex- officio a member of all committees, except the Nominating Committee. He shall appoint such committee chairmen as needed, including the Standing Committees. He shall see to it that the Federal and State tax reports of the Society shall be filled out and filed when due each year. gg_  p P ITUD City of Fort Walton Beach 1 9 F Attn: Robert T. Mearns, City Manager r. Gi! A; IAGER 107 Miracle Strip Parkway, SW OFFICE P. O. Box 4009 Fort Walton Beach, FL 32549 September 1, 2009 Dear Mr. Mearns; We have provided our response to your letter of August 7, 2009 in the attached Application for Lease or Extension of Lease of City Property. We have requested a 5 year extension with the intent of an on -going relationship with the City of Fort Walton Beach in years beyond the 5 years requested. Our membership ( membership open to the public) provides unique training and lapidary experience to the local community and has out reach programs to Panama City and Pensacola. We would appreciate your approval of a five ( 5) year lease extension of the facility at 17- 1St B Street for the use of the Playground Gem and Mineral Society, Inc. ( PGMS) as your gratuitous lease of this municipal property is vital to our continued operation in the Fort Walton Beach, Fl area. Operational funding of our PGMS is completely member funded. The purpose of the PGMS fulfills the municipal function to be considered for allocation of public funds at a minimum of expense to the City of Fort Walton Beach, FL. We deeply appreciate the past ten year lease and look forward to continuing our community service with your