7th Amendment 09/21/2022 M Kevin Madok, cpA
....... Clerk of the Circuit Court& Comptroller— Monroe County, Florida
DA'M: October 12, 2022
TO: Alice Steryou
Conti-act Nlonitor
FROM: Pwnela G. I lailco '�'3v(".
SUBJECT: Septenilm- 21" BOCC Meeting
Attached is an electronic copy of the following item for your liaildling:
C8 7t1i Aniendinciii to Lease Agreement mtli 1000 Atlantic Boulevard, 1'1'C (Salute
Rcstaiii-ant) Ior a CPI-I' increase oI'7 %, witli a new niondily rental amount of$9,975.38.
coninici-icing retroactive to August 12, 2022.
Should you have miy questions please feel free to contact me at (305) 292-3550.
cc: County Attorney
Filialice
File
KEY WEST MARATHON PLANTATION KEY
500 Whitehead Street 3117 Overseas Highway 88770 Overseas Highway
Key West, Florida 33040 Marathon, Florida 3300 Plantation Key, Florida 33070
SEVENTH AMENDMENT TO LEASE AGREEMENT
HIGGS BEACH CONCESSION/RESTAURANT
THIS SEVENTH AMENDMENT TO LEASE AGREEMENT is made and entered
into on this 21st day of September, 2022, 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, a Florida Limited
Liability Company, 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 11, 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,the parties hereto did on September 19, 2020, enter into a Fifth Amendment
to Lease Agreement to clarify several matters, including that the monthly applicable Use Tax,
composed of State and County Use Tax, was to be adjusted on the corrected date of January 1,
2020, from 7.2% to 7% and corrected the date to January 1, 2020, for the new rental amount to
1
commence based on the adjusted use tax rate. The Fifth Amendment further provided that the
County had previously agreed to three (3) Monthly Rental Fee abatements due to COVID-19,
which would commence on March 1, 2020, and with the March 2020 rental payment having
already been paid by Lessee in the amount of Eight Thousand Nine Hundred Eighty-seven and
37/100 ($8,987.37) Dollars, it was to be refunded to the Lessee, and adjusted the monthly rental
fee for an annual 2.3% CPI-U adjustment, effective on August 12, 2020, with the new monthly
Rent being Nine Thousand One Hundred Ninety-four and 07/100 ($9,194.07) Dollars; and
WHEREAS, the parties hereto did on September 15, 2021, enter into a Sixth
Amendment to Lease Agreement for an annual CPI-U adjustment of 1.4% percentage increase
for the calendar year ending December 31, 2020, with an effective date retro-active to August 12,
2021; 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 7%
percentage increase for the calendar year ending December 31, 2021, with an effective date
retroactive to August 12, 2022; 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:
1. Paragraph 4, Rent, Maintenance Fee, Tax, of the Lease, as amended, is hereby
amended, retro-active to August 12, 2022, to reflect the new rental amount based on the current
CPI-U increase of 7%, and shall 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 Nine Thousand Nine
Hundred Seventy-five and 38/100 ($9,975.38) Dollars per month, retro-active
beginning on August 12, 2022, and thereafter payable in advance on or before the first
business day of each and every month. The Rent and 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
("CPI") for all urban consumers ("CPI-U") for the calendar year immediately preceding
the anniversary date.
New Rental Amount commencing on 8/12/2022, includes a 7% CPI-U increase
To:
Monthly Rent: $7,719.99
Monthly Maintenance Fee: $1,714.99
Monthly Applicable Use tax: $ 540.40
2
TOTAL Rent. ",975.38
as of'O 110 112
.........................................
due 4mJ I Ilk
...................
2. ExxqN as set lbrib in Paragraph I hereinabove, all other provisions of the Leme, as
wnendeAt nc.A gym wm%iment herewith,shall re=in in fidl fmce and of
WITNESS WHEREOF, the panics hamto bavc set their hands and seals dui day atul
#Ouve.Vnium
N:1
fj
Z' BOARD OF COUNTY COMMISSIONERS
IN 14ADOIC,CLERK. OF MONROE COUNTY,FLORIDA,
LESSOR
By:--
'hairper
As, 11,41k Mayor/( son
wrl'NESSES., 1000 ATLANTIC BOUI.EVAIM,UZ,
A Flotida I.,imited Liability Umm y,
ss S F;F
Mo
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signative 'Titk M4anag, ng Partner
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Print lRame 1"Afe, Print Nwne Date
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