Item C06
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: December 21. 2005
Division:
Public Warks
Bulk Item: Yes ---X.. No
Department: Facilities Maintenance
Staff Contact Person: Ann Riger
AGENDA ITEM WORDING: Approval of a Consent to Assignment of Lease with Tropical
Sailboats, Inc. Assignor, and Tropical Watersports, LLC, Assignee, to lease a portion of Higgs Beach for
the purpose of operating a watersports business.
ITEM BACKGROUND: On November 28, 2005 Tropical Sailboats, Inc. and Tropical Watersports,
LLC., entered into an Asset Purchase Agreement which includes an Assignment of Lease and Licenses
to Assignee of all the Assignors rights, and obligation in the lease.
PREVIOUS RELEVANT BOCC ACTION: On January 14, 1998, the BOCC approved to enter into a
lease with Tropical Sailboats, Inc. for sailboatlsailboard rentals on Higgs Beach. On April 16, 2003, the
Boec approved a Renewal Agreement with Tropical Sailboats, Inc. for an additional 5 year term, and
on October 19, 2005 the BOeC approved a Lease Amendment to waive fees for the months I-Iiggs
Beach was closed due to Hurricane activity.
CONTRACT/AGREEMENT CHANGES: Consent to Assignment of Lease from Tropical Sailboats,
Inc., Assignor, to Tropical Watersports, LLC, Assignee.
STAFF RECOMMENDATIONS: Approval.
TOTAL COST: N/A
BUDGETED: Yes N/ A No
COST TO COUNTY: N/A
SOURCE OF FUNDS: NI A
REVENUE PRODUCING: Yes N/ A No AMOUNT PER MONTH Year
APPROVED BY: County Atty _ OMB/Purchasing
Risk Management _
DIVISION DIRECTOR APPROVAL:
f!xt~~~i~ h~
Dent Pier6e
DOCUMENTATION:
Included X
Not Required
DISPOSITION:
AGENDA ITEM #
Revised 2/05
'ii,>
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
RECEIVED
CONTRACT SUMMARY lJLl, \) ';:J 'ttffi
~\~ONnGE ~C,;Ul-,!T"( /-.:rT } ~
Contract with: Tropical Watersports Contract # -
Effective Date: August 1, 2003
Expiration Date: July 31, 2008
Contract Purpose/Description:
Consent to Assignment - To operate a sailboat/sailboard business at Higgs Beach
Contract Manager: Ann Riger 4549 Facilities Maint/Stop #4
(Name) (Ext. ) (Department/Stop #)
for BOCC meeting on 12/21/05 Agenda Deadline: 12/06/05
RNEY
CONTRACT COSTS
Total Dollar Value of Contract: .~e~ Current Year Portion: $ NI A
Budgeted? YesD No 0 ~~ es: _-_-_-_-
Grant: $ N/A _-_-_-
County Match: $ N/A _-_-_-
- - - -
---~--
ADDITIONAL COSTS
Estimated Ongoing Costs: $~yr For:
(Not included in dollar value above) (eg. maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Division Director
Changes
Needed
YesDNoD
ldJ{05 YesD NoG' IJ
Il.-I~-65 YesD NoD~
n-'-O(YeSDNO~~ '
Date Out
Date In
. >~Viety-V-- '
Risk Manageme(j
O.~.Ipurchasing
County Attorney
Comments:
OMB Form Revised 2127101 MCP#2
CONSENT TO ASSIGNMENT OF LEASE
This Consent to Assignment is entered into this 21 sl day of December, 2005, between the
COUNTY OF MONROE, a political subdivision of the State of Florida, hereafter
County, and TROPIeAL SAILBOATS, INC., hereafter Assignor, and TROPIeAL
WATERSPORTS, LLC, hereafter Assignee, the parties agreeing as follows:
1. The County leases a portion of Clarence S. Higgs Memorial Beach, in Key
West, Florida, for the purpose of operating a watersports business through an
Agreement dated January 14, 1998, hereafter the original agreement, and
renewed on April 16, 2003 for a five year term terminating July 31, 2008, and
as amended on October 19, 2005 abating rent payable due to hurricane
damage to the beach.
2. The Assignor and Assignee have entered into an Asset Purchase Agreement
dated November 28, 2005, which includes an Assignment of Lease and
Licenses to Assignee of all the Assignors rights, and obligations in the lease.
3. In consideration for such consent, the Assignee agrees to be bound by all the
terms and conditions of the original agreement, as renewed, and as amended.
4. The Lessor County agrees to the assignment of the lease from Tropical
Sailboats, Inc. to Tropical Watersports, LLC.
IN WITNESS WHEREOF, the parties have set their hands and seals as of the date
first written above.
(SEAL)
A TTEST: DANNY L. KOLHAGE, CLERK
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
BY:
BY:
Deputy Clerk
Mayor/Chainnan
ASSIGNOR
LESSEE: TROPICAL SAILBOATS, INC.
ASSIGNEE
LESSEE: TROPICAL W A TERSPORTS, LLC.
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LEASE AMENDMENT
Sailboat rentals at Higgs Beach
This Lease Amendment is made and entered into this 19th day of October, 2005, between
the COUNrY OF MONROE, and TROPICAL SAILBOATS, INC. in order to amend the
Lease between the parties dated January 14, 1998. and as renewed on April 16, 2003 as
follows:
1. Rental amounts of $300.00 per month or 100,4 of gross proceeds shall be
abated due to the closing of Higgs Beach during the months of July, August,
and September. 2005, because of damage caused by hurricanes.
2. Any rentals payments received by the County for the above mentioned three
month period shall be applied to the months October, November, and
December, 2005.
3. In all other respects, the original agreement between the parties dated January
14, 1998 and as renewed on April 16, 2003, remains in full force and effect.
, . ,
. "'IN WITNESS WHEREOF, the parties have hereunto set their hands and seal the day and
year fust written above.
(Seal)
Attest:
DANNY L. KOLHAGE, CLERK
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By: .QaUC.~
. Deputy Clerk
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TROPICAL SAJLBOA TS, INC.
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QENEWALAGREEMENT
Tropical Sailboats. Inc.
SaJlbOat rentals at Higgs Beach
This Renewal Agreement is made and entered rnto this April 16, 2003. between the
COUNlY OF MONROE and by Tropical Sailboats. Inc. in order to renew the Lease
between the partieS dated January 14. 1998. a copy which is incorporated hereto for
reference. as follows:
1. In accordance with ArtIcle 1. of the JanU8ly 14. 1998 original Lease. the lessee
exercises the option to renew the Lease for an additional ftve (5) year period.
2. The term of the renewed Lease will commence on August 1, 2003 and tefminate J~y
31,2008.
3. Rental amount rematns during the term of this renewed lease the sum of three
hundred ($300.00) dollars per month or ten percent (10%) of total monthly gross,
whichever is gteater, payable on or before the 15". day of each successive monlh of
the Lease period.
4. Lessee agrees to covenants contained In Exhibits A. and B. aUached hereto.
In all other respects, the original agreement between the parties dated January 14.
1998, remains in full force and effect.
IN WITNESS WHEREOF. the parties have hereunto set their hands and seal the day
and year first written above.
(Seal)
Attest: DANNY L. KOLHAGE. CLERK
BOARD OF COUNlY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By:..Q- /_tlc ~~
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Tropical Sanboats, Inc.
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LEASE
This lease, entered into on the 14th day of January, 1998, by and
between the Board of County Commissioners, Monroe County, Florida
(Lessor) and Tropical Sailboats, Inc., a Florida Corporation, 1414 Von
Phister Street, Key West, Florida (Lessee), which expression shall include
the heirs, executors, administrators and assigns of the Lessee when the
context so admits. This lease evidences the grants, covenants ana ~'
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agreements made between the parties with reference to the follo~ijg...
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A portion of Clarence S. Higgs Memorial Beac~ Key Wes~:-l;
Florida as evidenced by the attached drawing marked ;: f~
Exhibit "A" for the purpose set forth in that renewal lease .
agreement proposal submitted by Lessee on November 6, 1997
to the Monroe County Board of County Commissioners.
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This lease has been reviewed and approved by the Board of County
Commissioners at their regularly scheduled meeting held at Key West,
Florida, on the 14th day of January 1998. Pertinent parts of this lease
agreement are as follows:
1. Demise of Premises - - Period
Being the owner in fee of the premises, Lessor does hereby demise and
lease to Lessee for a term oftive (5) years with an option to renew on the
same terms for an additional five (5) years at the option of the Lessee. The
Lessee may exercise this option by sending a written notice to the Director
of Public Facilities Maintenance at least ninety (90) days before the end of
the original lease period. The Lessor may refuse to grant the Lessee an
additional five-year term if, during the course of the initial term, the Lessee
. .
breached any of the covenants of this lease even though the breach( es) were
subsequently cured by the Lessee or waived by the Lessor. This lease shall
commence on August I, 1998.
2. Covenants and agreements of Lessor.
In connection with the above demised properties, the Lessor covenants with
the Lessee that conditioned on Lessee's performance and observance of
Lessee's covenants herein, Lessee shall have the quiet title and peaceablt<
possession of the premises during the term of this lease.
3. Covenants and agreements of Lessee.
a) Payment In return for the privilege ofusitig the designated portion
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of Clarence S. Higgs Memorial Beach, Tropical Sailboats, Inc., will make
monthly payments of rent to Monroe County equal to ten percent (10%) of
its total gross proceeds on the beach. It is estimated that the minimum
rental payable to the County (which occurs during the off-season in the Fall)
will be three-hundred dollars ($300.00) a month which this lease shall pay
to the County as a minimum each month. Payment to the County will be
made on or before the 15th day of each successive month of the lease
period.
b) It is agreed that records of the gross revenues of the Lessee will be
available for audit by the County at all reasonable times.
c) The Lessee will continue to maintain both a current City and County
Occupational License during the period of the lease.
d) The Lessee agrees to recondition and maintain the line of floats which
extends from near the beach to the ocean end of the Reynolds Street Pier to
help keep the sailboats and sailboards separated from the swimming area for
the period of the lease.
. '
e) The Lessee will conduct its operation in a business-like manner at all
times. It will keep the area free of disabled boats and discarded boat
equipment, and will pick up, on a daily basis, the trash and debris left in the
area by the public. All equipment will be maintained in good working
order.
4. Lessee agrees to carry and keep in force such insurance as outlined on
the attached forms indicated as INS 1-4, attached hereto and incorporated. as
part of this lease agreement. The Lessor shall be named an additional
insured and will be furnished with a Certificate of evidence of the
insurance providing for no less than thirty (30) days notice in the event of
1
material change or cancellation. Lessee shall carry this insurance coverage
with an insurance company authorized to do business in the State of Florida
and approved by Lessor.
5. The breach of any of the Lessee's covenants under this lease is
deemed a material breach entities the Lessor to terminate this lease by
providing five.days written notice of termination to the Lessee. If there is
any litigation arising under this lease, the prevailing party is entitled to costs
and reasonable attorney's fees.
6. All notices required to be sent to the Lessor under this lease must be
sent to:
Monroe County
500 Whitehead Street
Key West, Fl. 33040
and will be considered delivered to the Lessor when delivered to the above
address.
All notices required to be sent to the Lessee under this lease
must be sent to:
Russ Gregory, President
1414 Von Phister St.
Key West. Fl. 33040
and will be considered delivered to the Lessee when delivered ta the above
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address.
7. This written lease agreement represents the entire agreement between
the parties and supersedes any prior writings or any prior oral agreements.
negotiations or understandings.
Signed and sealed at Key West, Florida, this lJf day of January, 1998.
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Russ Gregory, Pr side
Tropical Sailboats, Inc.
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J~o~'4re;surer
Tropical Sailboats, Inc.
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