Item I4
BOARD OF COUNTY COMMISSIONERS
AGENDAITEMSU~Y
Meeting Date: February 17, 2010
Division: Growth Management
Bulk Item: Yes -L No Department:
Staff Contact PersonJPhone #: Susan Grimsley
Ext. #2517
AGENDA ITEM WORDING: Approval of the First Amendment to the Occupancy and Ground
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 unit owners and to benefit the unit owners by allowing a homestead exemption and
all other exemptions allowed by law, and allowing the dwelling units to be taxed as real property
instead of tangible property for real estate located at Emerald Drive, Sapphire Drive and U.S.l (RE#
00156320-000000).
ITEM BACKGROUND: The lease terms inaccurately reflect the intent of the parties and will
inadvertently tax the improvements (homes) on the property as tangible personal property instead of
real property. The benefits of homestead and other statutory exemptions are not available because of
the structure of the lease. 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:
October 19, 2005 - BOCC authorized staff to advertise a Request for Qualifications for contractors to
build workforce housing at this location.
December 17, 2007 - BOCC awarded the project to Habitat for Humanity of Key West and the Lower
Keys, me.
May 20, 2009 - BOCC approved 99 year Ground Lease Agreement
CONTRACT/AGREEl\1ENT CHANGES: nJa
ST AFF RECOMMENDATIONS: Approval
TOTAL COST:
nJa
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 OCCUPANCY AGREEMENT AND GROUND LEASE
THIS FIRST AMENDMENT TO OCCUPANCY AGREEMENT AND 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 May 20,
2009, for the property legally described as Part of Tract B, Porpoise Point, Section 5 on Big
Coppitt Key, Mile Marker 10.5 Bayside, at the corner of Emerald Drive, Sapphire Drive and US
I, Monroe County, Florida, having RE# 00156320-o00ooo, for the development of twelve (12)
affordable housing dwelling units, said Lease being recorded in Monroe County Public Records
at Official Records Book 2431 at page 739; 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.l99(2)(b); and
WHEREAS, Lessor and Lessee desire to amend the Lease to also provide that the initial term
shall be one hundred (I (0) 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:
I. 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 "Term" shall be amended as follows:
"Term" means the Commencement Date and continuing for One Hundred (100) years thereafter,
plus any agreed upon extension of this Lease, and unless otherwise permitted by Lessor, all
Subleases and rights or interests granted thereunder shall terminate at the end of the Term.
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4. Section 3.01 Term shall be amended as follows:
Term: To have and to hold the Demised Premises for a term of One Hundred (1 (0) years
commencing on the Commencement Date and ending One Hundred (1 (0) years thereafter, both
dates 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
construction as well as other activities related to the development and construction of the Project.
As herein set forth, the Term will not commence until an Affordable Housing Unit is completed
and a Certificate of Occupancy has been issued for that Affordable Housing Unit, said date to be
evidenced by the Commencement Date Agreement that the parties will, upon completion of
construction of the first Affordable Housing Unit, execute in substantially the same form as that
set forth in Exhibit C hereto, reflecting a term of One Hundred (1 (0) years.
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 or sub-lessees.
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.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE PAGE TO FOLLOW
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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
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 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)
NOT ARY PUBLIC
LESSEE:
HABIT A T FOR HUMANITY OF KEY WEST
AND THE LOWER FLORIDA KEYS, INC.
Witness:
President
(I)
Print Name
Print Name
(2)
Print Name
ST A TE 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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