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Item E7 E.7 G BOARD OF COUNTY COMMISSIONERS County of Monroe Mayor Sylvia Murphy,District 5 The Florida Keys l'U � � Mayor Pro Tern Danny Kolhage,District 1 �pw° Michelle Coldiron,District 2 Heather Carruthers,District 3 David Rice,District 4 County Commission Meeting April 17, 2019 Agenda Item Number: E.7 Agenda Item Summary #5400 BULK ITEM: Yes DEPARTMENT: Tourist Development Council TIME APPROXIMATE: STAFF CONTACT: Ammie Machan (305) 296-1552 N/A AGENDA ITEM WORDING: Approval of an Amendment to Agreement with C.B. Schmitt Real Estate Co., Inc. to provide office and parking space for the Monroe County Tourist Development Council administrative office for an additional five (5) years for $9,550/month to September 30, 2024 with an option to extend for an additional five (5) year period with rent to be negotiated at fair market rent at that time ITEM BACKGROUND: See attached memo. TDC approved same at their meeting of March 26, 2019 PREVIOUS RELEVANT BOCC ACTION: BOCC approved Amendment to Extend at their meeting of September 18, 2013 BOCC approved Amendment to Extend at their meeting of December 17, 2008 BOCC approved Amendment to Extend at their meeting of November 19, 2003 BOCC original Agreement at their meeting of December 9, 1998 CONTRACT/AGREEMENT CHANGES: Amendment to Extend STAFF RECOMMENDATION: Approval DOCUMENTATION: TDC office Lease Amendment to Extend FINANCIAL IMPACT: Effective Date: October 1, 2019 Expiration Date: September 30, 2024 Total Dollar Value of Contract: $573,000 Packet Pg. 1758 E.7 Total Cost to County: No cost to County Current Year Portion: $114,600 Budgeted: Yes Source of Funds: TDC CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: No If yes, amount: Grant: County Match: Insurance Required: No Additional Details: 04/17/19 116-76007 - TDC ADMIN.SVCS 116 $9,550.00 REVIEWED BY: Maxine Pacini Completed 04/01/2019 10:38 AM Christine Limbert Completed 04/01/2019 12:20 PM Budget and Finance Completed 04/01/2019 3:01 PM Maria Slavik Completed 04/01/2019 3:12 PM Kathy Peters Completed 04/01/2019 4:59 PM Board of County Commissioners Pending 04/17/2019 9:00 AM Packet Pg. 1759 DATE: March 26, 2019 TO: Monroe County Board of County Commissioners FROM: Stacey Mitchell, TDC Director RE: Consideration and Action re: Schmitt Real Estate Lease Agreement Our current agreement with C.B. Schmitt Real Estate Co. Inc. to provide office and parking space for the Monroe County Tourist Development Council administrative office expires on September 30, 2019. C.B. Schmitt Real Estate Co. Inc. has agreed to extend the lease for the next five (5) years for .2 a monthly rent payment of $9,550 (current is $8,705.60) under the current terms of the Agreement. This is the first time the rent has been increased in ten (10) years. 0 Attached is an Addendum to Agreement to extend the lease to September 30, 2024 with an option to extend for one (1) additional five year period with the rent to be re-negotiated at fair market rent in effect at that time. X W 0 Assistant County Attorney Christine Limbert has reviewed the Addendum to Agreement and signed Z fora roval of it. E TDC approved same at their meeting of March 26 1h2019. E U) .2 r- 0 Packet Pg. 1760 E.7.a ADDENDUM TO AGREEMENT THIS ADDENDUM to Lease Agreement is made and entered into this day of , 2019 by and between C.B. SCHMITT REAL ESTATE CO. Inc. (hereinafter "Lessor"), a corporation incorporated in the State of Florida, whose address is 1201 White Street, Suite B, Key West, Florida 33040 and MONROE COUNTY (hereinafter "Lessee"), a political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West, Florida 33040. WITNESSETH WHEREAS, there was an Agreement entered into on December 9, 1998, between the parties, to provide office and parking space for the Monroe County Tourist Development Council (hereinafter"TDC") administrative offices; and WHEREAS, the original agreement provided an option to extend the lease agreement for two (2) additional five-year (5) terms; and WHEREAS, there was an Addendum to Agreement entered into on November 19, 2003 to exercise one (1) of the additional five-year (5) terms; and 0 WHEREAS, there was an Addendum to Agreement entered into on December 17, 2008 to exercise the second (2"d) additional five-year (5) term; and E WHEREAS, there was an Addendum to Agreement entered into on September 1711, E 2013 to extend Agreement through September 30µ 2019 with an option to extend for an additional five (5) year period with the rent to be e-negotijated at fair market rent in effect at that U) time; and WHEREAS, the Lessee continues to require office and parking space for the TDC administrative offices and the Lessor is able to continue to provide office and parking space for 0 the TDC administrative offices; and WHEREAS, the TDC recommends that the agreement be extended for a term of five (5) additional years, with an option to extend for one (1) additional five year period with the rent to be re-negotiated at fair market rent in effect at that time; NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties agree to hereby amend the agreement entered into on December 9, 1998 and amended on November 19, 2003,; December 17, 2008 and September 1711% 2013 as follows: 1. The following language shall be added to Paragraph 2. Term: The term of this Addendum to Lease Agreement is five (5) years running from October 1, 2019 through September 30, 2024 with an option to extend for an additional five (5) year period with the rent to be re-negotiated at fair market rent in effect at that time. 2019 TDC Office Lease Amendment To Agreement 1 Packet Pg. 1761 2. Paragraph 4 shall read: Rent: For the use of the premises, the Lessee must pay the Lessor the sum of $9,550 per month (October 1, 2019 through to September 30, 2024) due in monthly installments on the first day of each month. The monthly payments shall be remitted to C.B. Schmitt Real Estate Co., Inc. 1201 White Street, Suite B, Key West, FL 33040 upon receipt of a monthly invoice. Monroe County's performance and obligation to pay under this lease agreement is contingent upon annual appropriation by the Monroe County Board of County Commissioners. Additionally, Lessee shall pay to Lessor, upon receipt of an invoice and proof of Lessor's payment of property taxes, 48% of the property taxes for 1201 White Street, Lessor shall submit to Lessee by September 1st of each year a copy of the proposed annual property tax assessment, in order for the amount of payment in the succeeding fiscal year to be established in the budget. 3. Paragraph 23 Notices shall be amended to revise the address for the County Attorney as follows: .2 TO COUNTY: 0 County Attorney P.O. Box 1026 Key West, FL 33041-1026 X 4. The remaining provisions of the contract dated December 9, 1998, and amended W 0 November 19, 2003; December 17, 2008 and September 171h, 2013, not inconsistent herewith shall remain in full force and effect. E (SEAL) Attest: Kevin Madok, Clerk Board of County Commissioners of E Monroe County U) By: By: Deputy Clerk Mayor/Chairman 0 Lessor, C.B. Schmitt Real Estate Co,,, Inc. E By. By„ Vitn-ess] President Printed Name": Third Party, 3406 North Roosevelt Blvd, Corp By: Presid&nt- - 2019 TbC Office Lease Amendment To Agreement MONROE COUNTY ATTORNEY &VED T FORK]RI]iWid to]W.-,a n CHRISTINE LIMBERT-BARROWS 2 ASSISTANT CO)M ATrORNEY DATE: I I I I 1 Cl— I Packet Pg. 1762