Okaloosa County BOCC — January 21, 2014 — Jay Odom Lease 99 Eglin Parkway — reading text

December 30, 2013 VIA: Email and USPS Okaloosa County County Administrator Attn: Ernie Padgett 1804 Lewis Turner Blvd. Fort Walton Beach, FL 32547 Re: Renewal Terms - Lease between Okaloosa County (Tenant) and 99 Eglin, Ltd. (Landlord) dated August 22, 2008 for the leased premises located at JG Plaza, 73 Eglin Parkway, Suites 111, 201, and 203. Dear Mr. Padgett: The above referenced lease expires on September 30, 2014. I am offering three options for the County’s Lease renewal in JG Plaza. The first option is a one year renewal, the second option is an eighteen month renewal, and the third option is a three year renewal. Options one and two would give the County a fixed base rent rate based on the current market rate. The County’s base rent includes $2.55 per square foot per year for common area maintenance (CAM). Normal leases have CAM as a pass through item that is adjusted each year but the County has a fixed CAM amount included in the base rent. Please see details below for each option. Option | One year renewal of current Lease beginning October 1, 2014 and expiring on September 30, 2015. The Base Rate would be a market rate based on the existing leases in JG Plaza of $20.70 per square foot. Please note that the County’s Base Rate includes CAM charges at a fixed rate of $2.55 per square foot. All other terms of the Lease would remain the same. Option 2 Eighteen month renewal of current Lease beginning October 1, 2014 and expiring on February 29, 2016. The Base Rate would be a market rate based on the existing leases in JG Plaza of $20.70 per square foot. Please note that the County’s Base Rate includes CAM charges at a fixed rate of $2.55 per square foot. All other terms of the Lease would remain the same. Option 3 Three year renewal of current Lease beginning October 1, 2014 and expiring on September 30, 2017. The three year renewal would have a buyout clause available any time after eighteen months, beginning March 1, 2016. The buyout amount would be $10,000 per month for each month remaining on the three year renewal at the time the County vacates the space. For example, if ten months remained at the time the County moved out of the space, the buyout A652 GULFSTARR DRIVE ~ DESTIN, FLORIDA ~ 3254.1 ~ PHONE 850654-4.1 26 ~ FAX 850654-1429 amount would be $100,000 (10 months x $10,000). The Base Rate would be the same rate as if the County had exercised its options in the current lease. The three year renewal option would assure the County it could remain in JG Plaza for the next three years if needed but could leave after eighteen months by paying the lease buyout amount. If the County vacated the space after eighteen months of the three year lease renewal, option 3, they would pay approximately $77,000 more than the lease amount of option 2, the eighteen month renewal. For each month beyond eighteen months the County stays at JG Plaza the buyout amount decreases with no rent premium paid if the County were to stay the full three years. The three year renewal would make sure the County does not have to vacate the space before it has a new home. We look forward to continuing the County’s tenancy at JG Plaza. Please feel free to contact me if you have a y)questions. / . y Sincerely, Jay Odo Crystal Beach Development A652 GULFSTARR DRIVE ~ DESTIN, FLORIDA ~ 3254.1 ~ PHONE 850-654-4126 ~ FAX850654-1429