Item C05BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: July 15, 2015 Division: Airports
Bulk Item: Yes XX No Staff Contact Person; Don DeGraw/Pedro Mercado
AGENDA ITEM WORDING: Approval of a lease renewal agreement with Susan Wallace BRA Jet
Lag KW, LLC.
ITEM BACKGROUND: Susan Wallace purchased Jet Lag Accessories. one of the gift shops at the
Key West International Airport (KWIA) on March 14, 2014 from the previous leaseholder. At the time
of the purchase the previous leaseholder had only I year left on the original lease and it is the airport's
practice to give a leaseholder an initial 5 year term in order to evaluate their suitability as a tenant and
their viability as a business operation at the airport. Ms. Wallace has only held the lease for a year and
staff has thus far found her to be a good tenant. Staff recommends renewing the lease for an additional
4 years.
PREVIOUS RELEVANT BOCC ACTION:
Approved the original lease and lease renewals dated August 17, 2011, June 21, 2012 and on May 15,
2013. Approved the consent to assignment at the May 21, 2014 regularly scheduled board meeting.
CONTRACT/AGREEMENT CHANGES:
Renews the lease for an additional 4 years and increasing the county's share of the gross revenues from
5% to 10% and updating the leasehold rent.
STAFF RECOMMENDATIONS:
Approval
TOTAL COST: N/A
COST TO COUNTY: $0
....................................
REVENUE PRODUCING: Yes XX No
BUDGETED: Yes XX No
SOURCE OF FUNDS: N,,,,"A
AMOUNT PER MONTH $1334.99 � �L$1741.06
YEAR $16.0.1 9.,.8.g., + $20,892.72or,
I 0-is or gross. whichever is greater
APPROVED BY: County Att R/Purchasing Risk Management
/��M
y
I
DOCUMENTATION: Included Y_X Not Required
DISPOSITION: ACENDAITEM#
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract with: Susan Wallace -Jet Lag Contract #
Effective Date- 8/1/2015
Expiration Date" 7/31/2019 ..................................... --
Contract Purpose/Description-
Renews lease for Jet Lag Accessories, one of the gift shops at KWIA through 7/31/2019
Lease rovides for rent of $ 16,019,gg annuall lus 101 of annual Toss revenues or a
minimum of $20,892.72 annually, whichever is greater.
Contract Manager: Don Degraw 5210 KWIA/Stop # 5
(Name) (Ext.) (Department/Stop #)
for BOCC meeting on Agenda Deadline: June 30
,
July 15, 2015
CONTRACT COSTS
Total Dollar Value of Contract: $ 36,912.60 Current Year Portion: $ 6,152.10
Budgeted? Yes® No [—
I Account Codes- 404 -344104SK-
Grant- $ NA 404 -344106SK -
County Match: $ 1 ...NAII ---------------- - ..............................
ADDITIONAL COSTS
Estimated Ongoing Costs- $0/yr For: : ----------- . ... ... ... ... ... ... ... . . ---------- - ...............................
maintenance, utilities, janitorial, salaries, etc.)
CONTRACT REVIEW
Charilges
Date Out
Department Head
Date In Needed iew
42-15 YesE] NS2
Risk Management
e
YesD No[�[
O.M.B./Purchasing
1 Yeso plo[►�
lS
County Attorney
YeSE] No�j zAt1
IS
OMB Form Revised 2/27/01 MCP #2
LEASE RENEWAL AGREEMENT
JET LAG
KEY WEST INTERNATIONAL AIRPORT
This Agreement is made and entered into on the 15th day of July, 2015, by and between
MONROE COUNTY, a political subdivision of the State of Florida, owner of Key West International
Airport, hereinafter referred to as "Lessor" or "'County", whose address is 1100 Simonton Street, Key
West, Florida, 33040, and Susan Wallace, DBA JET LAG IOW, LLC., hereinafter referred to as "Lessee"
or "Tenant" whose address is 3493 South Roosevelt Blvd. STE # 8 Key West, FL 33040.
WHEREAS, on the 18th day of July, 2010, the Lessee's predecessor in interest entered into an
agreement for the use of property more particularly described in exhibit "A", hereafter original agreement.
A copy of the original agreement is attached to this renewal agreement and made a part of it; and
WHEREAS, the original agreement to ended on July 31, 2010 and was renewed by Lessee's
predecessor in interest though July 31 St 2014; and
WHEREAS, on 201h day of March 2014 Jet lag Accessories, LLC., was purchased by Susan
Wallace LIRA Jet Lag KW LLC., and, prior to the sale, the former owner requested that the lease be
renewed one more year; and
WHEREAS, Lessee has requested that the lease be renewed; and
WHEREAS, tenants at the airport typically are given an initial to of 5 years and Lessee
purchased the leasehold last year; and
WHEREAS, the county has no objection to granting Lessee an additional four years in order to
place Lessee on equal terms with other new tenants; and
WHEREAS, the parties have found the original agreement to be mutually beneficial; now,
therefore,
IN CONSIDERATION of the mutual promises and covenants set forth below, the parties agree as
follows:
Paragraph 2(a) of the original agreement is amended to read:
2(a) TERM. This agreement will take effect on the I't day of August 2015, and
Ti will teri—nate on the 31" day of July, 2019, unless terminated earlier under another
paragraph of this agreement.
Paragraph 3 of the original agreement is amended to read:
3. Rental and Fees
(a) i. Lessee agrees to pay Lessor rent in the amount of $1,334.99 per month plus tax,
including electricity and garbage, for retail concession space 217.
ii. In addition to the rent, Lessee agrees to pay Lessor 10% of the annual gross revenues
plus sales tax, or a guaranteed minimum annual fee of $20,892.72 plus sales tax,
whichever is greater, generated by Lessee's operations at retail concession space 217.
Rental payments are due by the I` day of the month for which the rent is due. An
annual rental payment adjustment shall be made in accordance with the percentage change
in the Consumer Price Index for all urban consumers (CPI -LT) for the most recent 12
months available or in accordance with the Airport's standard rates and charges as revised
annually, whichever is greater. The increase will take effect on the anniversary month of
the month when the operation opened for business.
Annual gross revenues are determined on a calendar year basis. A calendar year
shall run from January Is' through December 3 Is' inclusive. Payment of charges under this
subparagraph shall be made in monthly installments in arrears. Lessee shall remit, at a
minimum, 1/12 of the annual guaranteed minimum ($1741.06) on an arrears basis.
Payment shall be made no later than the 25 th day of the month payment is due, i.e. January
payment by February 25, February by March 25, etc. In the event the total amount paid
during any calendar year period is less than the greater of the fees set forth in 5a.ii, Lessee
shall remit the difference by February 28 of the year subsequent to the calendar year for
which the charge is due. A corresponding copy of the Lessee's Florida Department of
Revenue Use and Sales Tax Report shall be remitted along with Lessee's monthly gross
revenue payment.
Except as set forth in paragraphs one, and two of this Lease Renewal Agreement, in all other respects, the
terms and conditions of the original agreement remain in full force and effect.
IN WITNESS WHEREOF. each party has caused this Agreement to be executed by its duly
authorized representative.
(SEAL)
ATTEST: AM Y HEAVILEN-1, CLERK
WITNESSES:
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
Mayor Danny Kolhage
1, 11-1 S S E E
Susan Wallace