Item C14Co unty of Monr M BOARD OF COUNTY COMMISSIONERS
l� Mayor David Rice, District 4
The Florida Keys
4C Y Mayor Pro Tern Sylvia J. Murphy, District 5
Danny L. Kolhage, District 1
George Neugent, District 2
11 Heather Carruthers, District 3
County Commission Meeting
February 21, 2018
Agenda Item Number: C.14
Agenda Item Summary #3859
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Donald DeGraw (305) 809 -5200
none
AGENDA ITEM WORDING: Approval of First Amendment to Lease Agreement with Susan
Wallace d /b /a Jet Lag, KW, LLC, to clarify language in the lease regarding annual rent adjustments
for their gift shop space at the Key West International Airport.
ITEM BACKGROUND: The lease agreement was assigned to Jet Lag in 2014 and extended for
four years in 2015, but the current lease has rent adjustment terms that are inconsistent with other
airport leases. This amendment clarifies that annual adjustments are based on CPI -U, adds language
that upon deflationary CIP, no rent adjustment will be made, and adds language that if the current
lease is extended beyond its expiration date, then at that time the rental rate will be brought up to the
then current terminal rental rate or CPI -U, whichever is greater.
PREVIOUS RELEVANT BOCC ACTION: Approval of consent to assignment of lease on May
21, 2014. On July 15, 2015, the BOCC approved a four -year extension with updated rental rate and
an increase in the guaranteed minimum commission from 5% to 10 %.
CONTRACT /AGREEMENT CHANGES:
clarifies that annual rent adjustment are based on CPI -U, adds lenguage regarding deflationary CIP,
and adds that if the lease term is extended beyond its current expiration date, then at that time, the
rental rate will be brought up to the then current terminal rate or CPI -U, whichever is greater.
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Jet Lag First Amendment
FINANCIAL IMPACT:
Effective Date: 02/21/2018
Expiration Date: 07/31/2019
Total Dollar Value of Contract: n/a
Total Cost to County: n/a
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing:
Grant:
County Match:
Insurance Required:
Additional Details:
If yes, amount:
REVIEWED BY:
Beth Leto
Completed
01/24/2018 2:45 PM
Donald DeGraw
Completed
01/24/2018 2:46 PM
Pedro Mercado
Completed
01/24/2018 2:53 PM
Budget and Finance
Completed
01/24/2018 3:43 PM
Maria Slavik
Completed
01/24/2018 7:12 PM
Kathy Peters
Completed
01/25/2018 8:39 AM
Board of County Commissioners
Pending
02/21/2018 9:00 AM
FIRST AMENDMENT TO LEASE AGREEMENT
JET LAG
KEY WEST INTERNATIONAL AIRPORT
THIS FIRST AMENDMENT TO LEASE AGREEMENT is hereafter made and entered
into this 21 day of February 2018, by and between Monroe County, a political subdivision of
the State of Florida, (hereafter "County" or "Lessor "), whose address is 1100 Simonton Street,
Key West, Florida, 33040 and Susan Wallace d /b /a JET LAG KW, LLC (hereafter "Tenant"
or "Lessee "), whose address is 3493 South Roosevelt Blvd., STE #8, Key West, Florida 33040.
WHEREAS, on the 18 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; and
WHEREAS, the term of the original agreement ended on July 31, 2010 and was renewed
by Lessee's predecessor in interest through July 31, 2014; and
WHEREAS, on March 20, 2014, Jet Lag Accessories, LLC. was purchased by Susan
Wallace d /b /a Jet Lag KW, LLC, and prior to the sale, the former owner requested that the
lease be renewed for one more year;
WHEREAS, on July 15, 2015, the parties entered into a Lease Renewal Agreement for
retail concession space 217 at the Key West International Airport; and
WHEREAS, the parties wish to amend Section 3 of the original agreement to clarify the
procedure for annual rent adjustments that occur on the renewal date each year;
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth
below, the parties agree to amend the original agreement as follows:
Section 1. Paragraph 3 of the original agreement is amended to read as follows:
3. Rentals and Fee
(a) i. Effective August 1, 2017, Lessee agrees to pay Lessor rent in the amount of
$1,372.57 per month plus sales 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 on the 1 St day of the month for which the rent is due. An
annual rental payment adjustment shall be made in accordance with the percentage changed in
the Consumer Price Index for all urban consumers (CPI -U) for the most recent 12 months
available. The increase will take effect on the anniversary month of the month when the
operation opened for business. Should the term of the renewal agreement be extended, the
then current rental rate will be adjusted by CPI -U or the then current airlines rates and charges
terminal rental rate, whichever is greater. In the event of a deflationary CPI, no adjustment in
the rental rate will be made.
Annual gross revenues are determined on a calendar year basis. A calendar year shall
run from January 1 st through December 31 st inclusive. Payment of charges under this
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