HomeMy WebLinkAboutItem I3
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: February 17, 2010
Division: Growth Management
Bulk Item: Yes -L
No
Department:
Staff Contact Person/Phone #: Susan Grimsley
Ext. #2517
AGENDA ITEM WORDING: Approval of the First Amendment to the Lease Agreement between
Monroe County and Habitat for Humanity of Key West and the Lower Keys, Inc. to extend the term to
100 years and eliminate the annual $10.00 rent in order to comply with Florida Statute Sec.
196. 199(2)(b) to carry out the original intent of the parties in regard to the property tax liability of the
Lessee in order for the building to be taxed as real property instead of tangible property for real estate
located at 5530 3rd Avenue, Stock Island (RE# 00126970-000000).
ITEM BACKGROUND: The lease terms inaccurately reflect the intent of the parties and
inadvertently tax the improvements on the property as tangible personal property instead of real
property. The improvements on the property will be assessed as real estate if the lease is for 100 years
or more instead of 99 years, and if no rental is paid by the Lessee or subsequent lessees. This protects
the County and the Tax Collector by allowing delinquent taxes to be collected using the tax certificate
method.
PREVIOUS RELEVANT BOCC ACTION:
June 17,2009 - BOCC sitting as the Monroe County Comprehensive Plan Land Authority authorized
the purchase of the property.
August 19, 2009 - Acceptance by the BaCC of the property from the Land Authority
August 19,2009 - BaCC approved 99 year Ground Lease Agreement
CONTRACT/AGREEMENT CHANGES: nla
ST AFF RECOMMENDATIONS: Approval
TOT AL COST:
nla
INDIRECT COST:
BUDGETED: Yes _No
DIFFERENTIAL OF LOCAL PREFERENCE:
COST TO COUNTY:
SOURCE OF FUNDS:
REVENUE PRODUCING: Yes
No
AMOUNT PER MONTH_ Year
APPROVED BY: County Atty ~ OMB/Purchasing _ Risk Management_
DOCUMENT A TION:
Included
x
Not Required_
DISPOSITION:
AGENDA ITEM #
PREPARED BY AND RETURN TO:
SUSAN GRIMSLEY
MONROE COUNTY
2798 OVERSEAS HIGHWAY
MARATHON, FL. 33052
FIRST AMENDMENT TO LEASE
THIS FIRST AMENDMENT TO LEASE (First Amendment), dated this _day of
, 2010, is made by and between Monroe County, a political subdivision of the
State of Florida (Lessor) and Habitat for Humanity of Key West and the Lower Florida Keys,
Inc. , a Florida non-profit corporation (Lessee).
WITNESSETH:
WHEREAS, Lessor and Lessee entered into that certain 99- year Lease (Lease) dated August 19,
2009, for the property legally described as Block 54, Lots 16 and 17, Maloney Subdivision, Stock
Island, Monroe County with RE# 00126970-00??oo, located at 5530 Third Avenue, Stock Island
for a 12 unit apartment building for affordable housing, said Lease being recorded in Monroe
county Public Records at Official Records Book 2433 at page 88; and
WHEREAS, in drafting the Lease an Annual Base Rent in the amount of Ten Dollars ($10.00)
was included in the Lease as said language was considered usual and customary for consideration
in a deed or lease; and
WHEREAS, Lessor and Lessee desire to amend the Lease to provide that there shall be no rent
payable under the Lease, the intent being that the Lease will comply with Florida Statute
196. I 99(2)(b); and
WHEREAS, Lessor and Lessee desire to amend the Lease to also provide that the initial tenn
shall be one hundred (100) years in order to be taxable as provided under Florida Statute
196.199(7) ;
NOW, THEREFORE, in consideration of the mutual covenants and obligations contained
herein, and other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the undersigned parties agree as follows:
1. The recitals contained herein are true and correct and incorporated herein by reference.
2. The Lease is presently valid and in full force and effect.
3. In Article I Definitions, the definition of the word "Tenn" shall be amended as follows:
"Tenn" means the Commencement Date and continuing for One Hundred (I (0) years thereafter
plus any agreed upon extension of this Lease and unless otherwise pennitted by Lessor all
Subleases and rights or interests granted thereunder shall tenninate at the end of the Tenn.
4. Section 3.01 Tenn shall be amended as follows:
Tenn: To have and to hold the Demised Premises for a tenn of One Hundred (I (0) years
commencing on the Commencement Date and ending One Hundred years thereafter, both dates
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inclusive, unless sooner terminated or extended as hereinafter provided (the Termination Date).
Lessee shall be given possession on the Effective Date and the terms and conditions set forth
herein shall be binding on the parties as of the Effective Date. Lessee shall have the right to
occupy the Demised Premises as of the Effective Date in order to allow Lessee to commence and
complete renovations and rehabilitation of the building on the property as well as other activities
related to the development and construction of the Project.
5. In Article I, Definitions, the definition of "Rent" is hereby deleted and notwithstanding
anything contained in the lease to the contrary there shall be no annual base rent due. However,
obligations for any other payment considered as additional rent and any other financial
obligations provided for in the Lease shall remain in full force and effect.
6. Section 4.01 of the Lease is hereby deleted to provide that there shall be no base rental
payments due pursuant to this Lease so that the leasehold shall be taxed as real property with an
ownership interest in Lessee.
7. The effective date of the terms of this First Amendment shall be August 19, 2009, to reflect the
original intent of the parties; therefore application is retroactive.
8. Except as expressly modified by the First Amendment all terms and conditions of the Lease
remain in full force and effect, binding upon the parties.
IN WITNESS WHEREOF, the undersigned executed this First Amendment to Occupancy
Agreement and Lease this _day of ,2010.
LESSOR:
MONROE COUNTY BOARD OF
COUNTY COMMISSIONERS
(SEAL)
A TTEST:DANNY L. KOLHAGE, CLERK
Mayor Sylvia J. Murphy
Deputy Clerk
ST ATE OF FLORIDA
COUNTY OF MONROE
Be it known, that on the _day of , 2010, before me, a Notary Public in and for
the State of Florida, County of Monroe, duly commissioned and sworn, personally came and
appeared Sylvia J. Murphy, as Mayor of Monroe County, to me personally known.
In testimony whereof, I have hereunto subscribed my name and affixed my seal of office the day
and year last above written.
( Seal)
NOTARY PUBLIC
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LESSEE:
HABIT A T FOR HUMANITY OF KEY WEST
AND THE LOWER FLORIDA KEYS, INe.
Witness:
President
(I)
Print Name
Print Name
(2)
Print Name
STATE OF FLORIDA
COUNTY OF MONROE
Be it known, that on the _day of , 2010, before me, a Notary Public in and
for the State of Florida, County of Monroe, duly commissioned and sworn, personally came and
appeared , to me personally known or who provided
as identification.
In testimony whereof, I have hereunto subscribed my name and affixed my seal of office the day
and year last above written.
(Seal)
NOTARY PUBLIC
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