5th Amendment 09/16/2020 nit / Kevin Madok, CPA
= Clerk of the Circuit Court& Comptroller—Monroe County, Florida
DATE: September 17, 2020
TO: Alice Steryou
Contract Monitor
FROM: Pamela G. Hance.
SUBJECT: September 16' BOCC Meeting
Attached is an electronic copy of each of die following items for your handling:
C25 5th Amendment to Lease Agreement with 1000 Atlantic Boulevard,LLC
(Salute Restaurant) to clarify dates in the Fourth Amendment,refund the March 2020 partial rent
abatement of$8,987.37, and a CPI-U increase of 2.3% commencing on August 12,2020.
Should you have any questions please feel free to contact me at(305) 292-3550.
cc: Facilities Supervisor
County Attorney
Finance
File
KEY WEST MARATHON PLANTATION KEY PIC/ROTH BUILDING
500 Whitehead Street 3117 Overseas Highway 88820 Overseas Highway 50 High Point Road
Key West,Florida 33040 Marathon,Florida 33050 Plantation Key,Ronda 33070 Plantation Key,Florida 33070
305-294-4641 305-289-6027 305-852-7145
305-852-7145
FIFTH AMENDMENT TO LEASE AGREEMENT
HIGGS BEACH CONCESSION/RESTAURANT
THIS FIFTH AMENDMENT TO LEASE AGREEMENT is made and entered into
on this 16th day of September, 2020, by and between Monroe County, a political subdivision of
the State of Florida, whose mailing address is 1100 Simonton Street, Key West, Florida 33040
("County" or "Lessor") and 1000 Atlantic Boulevard, LLC, whose mailing address is 729
Thomas Street, Key West,Florida 33040("Tenant" or"Lessee").
WHEREAS, on May 21, 2008, the County and Key West Hospitality, LLC, the
predecessor in interest, entered into a Lease Agreement with a five (5) year term, which Lease
included a Revised Exhibit "A" dated June II, 1998, identifying the leased Premises ("Lease");
and
WHEREAS, Key West Hospitality, LLC, the predecessor in interest, assigned all of its
rights, title, and interest in the Lease to 1000 Atlantic Boulevard, LLC,pursuant to an Agreement
for Purchase and Sale of Assets dated September 28,2008 ("Assignment"); and
WHEREAS, the parties hereto did on the October 15, 2008, enter into a Consent to
Assignment of Lease, whereby the Lessor agreed to the Assignment to 1000 Atlantic Boulevard,
LLC("Tenant" or"Lessee"); and
WHEREAS, the parties hereto did on October 20, 2010, enter into a Lease Extension
Agreement extending the Term for ten (10) years with a termination date of August 11, 2023
("Extension"); and
WHEREAS, the parties hereto did on September 19, 2016, enter into a First Lease
Agreement Amendment which increased the Lessee's leasehold Premises by including in the
Premises a previously excluded 115 square feet of storage area that had previously been leased to
another entity, Tropical Watersports; and
WHEREAS, the parties hereto did on September 19, 2018, enter into a Second Lease
Agreement Amendment to abate the total monthly rental payment for September 2017 in the
amount of Eight Thousand Six Hundred Seventy-one and 81/100 ($8,671.81) Dollars due to the
closure of Higgs Beach as a result of Hurricane Irma damage. This total rent abatement amount
was applied as a credit towards the future monthly rental payment due by Lessee; and
WHEREAS, the parties hereto did on August 21, 2019, enter into a Third Lease
Agreement Amendment for an annual CPI-U adjustment of 1.9% and a Use Tax Credit; and
WHEREAS, the parties hereto did on June 17, 2020, enter into a Fourth Amendment to
Lease Agreement for the County to abate certain monthly rental payments for the months of
March, April, and May 2020, due to the COVID-19 Higgs Beach closures as a preventative
measure and to reflect the decrease in the monthly applicable Use Tax; and
WHEREAS, for clarification purposes, the monthly applicable Use Tax, which is
comprised of State and County Use Tax, was adjusted on January 1, 2020, from 7.2% to 7%,
which is subject to change periodically, but the Fourth Amendment in Section 2, Paragraph 4,
inadvertently stated that the new rental amount, with the reduced use tax rate, was effective as of
March I, 2020, rather than the correct date of January 1, 2020; and
I
WHEREAS, in Section 3 of the Fourth Amendment, it also inadvertently stated in the
first sentence of that paragraph the incorrect date of March 1, 2020, rather than the correct date
of January 1, 2020 ; and
WHEREAS, the March 2020 rental payment had previously been paid by Lessee so the
partial rent abatement amount of$8,987.37, shall be refunded to the Lessee: and
WHEREAS, the Lease, as amended, provides in paragraph 4, that the rent and monthly
maintenance fee will be adjusted annually by a percentage equal to the increase in the Consumer
Price Index for all Urban Consumers ("CPI-U") for the calendar year immediately preceding the
anniversary date of the lease term; and
WHEREAS, the parties hereto have agreed to the annual CPI-U adjustment of 2.3%
percentage increase for the calendar year ending December 31, 2019, with an effective date of
August 12,2020; and
WHEREAS,the parties have found the Lease to be mutually beneficial; and
WHEREAS,both parties desire to amend the Lease,
NOW THEREFORE, IN CONSIDERATION of the mutual promises, covenants, and
agreements stated herein, and for other good and valuable consideration, the sufficiency of which
is hereby acknowledged,the parties agree as follows:
Section 1. Pursuant to Paragraph 4, Rent, Maintenance Fee, Tax, of the Lease, as
amended, Lessee paid Nine Thousand One and 28/100 ($9,001.28) Dollars per month effective
as of August 12, 2019, for rent, applicable tax, and a maintenance fee which included the cost of
the Lessor providing janitorial services and the opening and closing of the public restrooms. On
January 1, 2020, the monthly applicable Use Tax was adjusted from 7.2% to 7%, which includes
State and Local tax, from $500.79/month to $486.88/month. The current monthly rental amount
is set forth below in addition to the new monthly rental amount with the reduced Use Tax of 7%
effective as of January 1, 2020, which is subject to change periodically and therefore adjusted
accordingly.
From:
Monthly Rent: $6,955.36
Monthly Maintenance Fee: $1,545.13
Monthly Applicable Use tax: $ 500.79 **
TOTAL Rent: $9,001.28
** Current rate as of 01/01/2019: 7.2% (State and Local) subject to change and rent
------ amount due shall be adjusted accordingly
To:
Monthly Rent: $6,955.36
Monthly Maintenance Fee: $1,545.13
Monthly Applicable Use tax: $ 486.88 **
TOTAL Rent: $8,987.37
** Current rate as of 01/01/2020: 7%(State and Local) subject to change and rent amount
due shall be adjusted accordingly
2
Section 2. Paragraph 4, Rent, Maintenance Fee, Tax, of the Lease, as amended, is
hereby amended to read as follows:
4. Rent, Maintenance Fee. Tax. The total monthly rental payment (hereinafter
collectively known as "Rent"), shall include rent, applicable use tax, and a maintenance
fee to include the cost of the Lessor providing janitorial services and the opening and
closing of the public restrooms. The Rent for the Premises is $8,987.37 per month,
beginning on January 1, 2020, and thereafter payable in advance on or before the first
business day of each and every month. The monthly Rent and Maintenance Fee will be
adjusted annually beginning with the first anniversary of the commencement of the lease
term, and at every anniversary thereafter, by a percentage equal to the increase in the
Consumer Price Index for all urban consumers ("CPI-U") for the calendar year
immediately preceding the anniversary date.
Section 3. As of January 1, 2020, the total monthly Rent was Eight Thousand Nine
Hundred Eighty-seven and 37/100 ($8,987.37) Dollars. The County, therefore, agrees to abate
the total monthly rental payments for March, April, and May 2020, due to the closure of Higgs
Beach, as a result of COVID-19 preventative measures, for a total abatement amount of Twenty-
six Thousand Nine Hundred Sixty-two and 11/100 ($26,962.11) Dollars. Of this total abatement
amount, the monthly rental amount of Eight Thousand Nine Hundred Eighty-seven and 37/100
($8,987.37) Dollars already paid by Lessee for the month of March 2020, shall be refunded to
Lessee.
Section 4. The monthly Rent and Maintenance Fee will be adjusted annually
pursuant to the percentage increase in the Consumer Price Index for the calendar year
immediately preceding the anniversary date. The annual CPI-U adjustment rate is a 2.3%
percentage increase for the calendar year ending December 31, 2019, with an effective date of
August 12,2020. for Lessee's new rental amount as shown below:
New Rental Amount Commencing on 08/12/2020 includes a 2.3% CPI-U increase
To:
Monthly Rent: $7,115.33
Monthly Maintenance Fee: $1,580.67
Monthly Applicable Use tax: $ 498.07 **
TOTAL Rent: $9,194.07
**Current rate as of 01/01/2020: 7%(State and Local) subject to change and rent amount
due shall be adjusted accordingly
Section 5. Paragraph 4, Rent, Maintenance Fee. Tax, of the Lease, as amended,
including the changes herein, is hereby further amended as of August 12, 2020,to reflect the new
rental amount based on the CPI-U increase, and shall hereafter read as follows:
4. Rent, Maintenance Fee. Tax. The total monthly rental payment (hereinafter
collectively known as "Rent"), shall include rent, applicable use tax, and a maintenance
fee to include the cost of the Lessor providing janitorial services and the opening and
closing of the public restrooms. The Rent for the Premises is S9,194.07 per month,
beginning on August 12, 2020, and thereafter payable in advance on or before the first
3
business day of each and every month. The monthly Rent and Maintenance Fee will be
adjusted annually beginning with the first anniversary of the commencement of the lease
tern, and at every anniversary thereafter, by a percentage equal to the increase in the
Consumer Price Index for all urban consumers ("CPI-U") for the calendar year
immediately preceding the anniversary date.
Section 6. Except as set forth in Sections 1, 2, 3, 4 and 5 herein above, all other
provisions of the Lease, as amended, not inconsistent herewith, shall remain in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have set their hands and seals the day and
r'd')"fit(. t above written.
T
(4
BOARD
FVIN MADOK, CLERK
OF COUNTY COMMISSIONERS'OF MONROE COUNTY, FLORIDA.
LESSOR
Sri
As Deputy/Clerk Ma Tr/C Terson
Heather Carruthers
WITNESSES: L Atlantic Boulevard, LLC,
A Florida Lim' ed Li .ompany
6 6, � //kX._ 3
Signature / itle: Managing Pm er ^.. m c
6"
%17;/lrrC/ �1 ao -° n
Print Name 'Date ix o
.....1t
-,c v
<- MC Ph
n
-ll
C
igna re a _
7 CAI
Pri ame Date
MOMOE COUNTY ATTORNEY-8 OfRCE
PNA�TnCA EtA`SL�EE
ozier
•
•
nonmy