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7th Amendment 01/18/2023 GV�S COURTq c o: A Kevin Madok, CPA - �o ........ � Clerk of the Circuit Court& Comptroller Monroe County, Florida �z cooN DATE: January 25, 2023 TO: Strzi Rubio Senior Project and Budget Manager FROM: Liz Yongue, Deputy Clerk SUBJECT: January 18th BOCC Meeting The following item has been executed and added to the record. C4 Approval of Seventh Arnendrnent to Lease Agreement with Salute Watersports, LLC, for a rent abatement in the amount of$264.26,representing October 1, 2022 through October 15, 2022 due to Higgs Beach closure during and after Hurricane Ian. Should you have any questions please feel free to contact me at(305) 292-3550. cc: County Attorney_ Finance File KEY WEST MARATHON PLANTATION KEY 500 Whitehead Street 3117 Overseas Highway 88770 Overseas Highway Key West, Florida 33040 Marathon, Florida 33050 Plantation Key, Florida 33070 SEVENTH AMENDMENT TO LEASE AGREEMENT FOR HIGGS BEACH CONCESSION,KEY WEST,MONROE COUNTY,FLORIDA THIS SEVENTH AMENDMENT TO LEASE AGREEMENT is made and entered into this 18th day of January, 2023, between MONROE COUNTY, FLORIDA ("COUNTY"/"LESSOR"), a political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West, Florida 33040, and SALUTE WATERSPORTS, LLC ("CONTRACTOR"/"LESSEE"), a Florida limited liability company, whose address is 1000 Atlantic Blvd., Key West, Florida 33040. WHEREAS, on October 17, 2018, the County entered into a Lease Agreement with Tropical Watersports, LLC, the predecessor in interest, for the operation of a mobile concession on the Clarence S. Higgs Memorial Beach Park, Key West, Monroe County, Florida, (hereinafter "Original Agreement"); and WHEREAS, on July 17, 2019, the Monroe County Board of County Commissioners ("BOCC") approved the Lease Assignment, Assumption and Consent ("Assignment") of the Original Agreement from Tropical Watersports, LLC, to Salute Watersports, LLC, for the operation of a mobile concession on the Clarence S. Higgs Memorial Beach Park, Key West, Monroe County, Florida; and WHEREAS, on December 11, 2019, the BOCC approved the First Amendment to the Original Agreement to renew the term for the first of five (5) optional one-year periods with the term to commence retroactive to October 16, 2019, and terminate on October 15, 2020, and to adjust the CPI-U increase of 1.9%retroactive to October 16, 2019; and WHEREAS, on June 17, 2020, the BOCC approved the Second Amendment to Lease Agreement to abate total monthly rental payments and the 7.5% monthly gross taxable sales payments due by Lessee for the months of March, April, and May 2020, due to Higgs Beach COVID-19 closures; and WHEREAS, on November 17, 2020, the BOCC approved the Third Amendment to the Original Agreement to renew the term for the second of five(5)optional one-year periods with the term to commence retroactive to October 16, 2020, and terminate on October 15, 2021, and to adjust the CPI-U increase of 2.3%; and WHEREAS, on August 18, 2021, the BOCC approved the Fourth Amendment to the Original Agreement to renew the term of the Agreement for the third of the five (5) optional one- year periods with the term to commence on October 16, 2021, and terminate on October 15, 2022, and the rental amount was adjusted in accordance annually with the percentage change in the U.S. Department of Commerce Consumer Price Index (CPI-U) for all Urban Consumers as reported by the U.S. Bureau of Labor Statistics at December 31 of the previous year of 1.4%; and WHEREAS, on January 21,2022,the BOCC approved a Fifth Amendment to the Original Agreement to abate one-half(1/2) of the monthly rental payment due by Lessee for a partial month 1 of October 2021 and the full month of November 2021, due to Higgs Beach shoreline restoration project closures, which was initiated by the County; and WHEREAS, on September 21, 2022, the BOCC approved a Sixth Amendment to the Original Agreement in which the parties renewed the term for an additional one-year period with the term to commence on October 16, 2022, and terminate on October 15, 2023, and the rental amount was adjusted in accordance with the percentage change in the U.S. Department of Commerce Consumer Price Index(CPI-U)for all Urban Consumers as reported by the U.S.Bureau of Labor Statistics at December 31 of the previous year of 7%, with the total monthly rental payment increasing to Five Hundred Sixty-five and 52/100 ($565.52) Dollars, with an effective date of October 16, 2022; and WHEREAS, Hurricane Ian passed by Key West on September 27 and 28, 2022, causing significant damage to Higgs Beach resulting in the beach being closed to the public; and WHEREAS, said damage rendered Higgs Beach unusable and affected the ability of Lessee to conduct its watersports business on the beach; and WHEREAS, the Lessee has requested the County to abate a portion of its monthly rental payment for October 2022 due to the Hurricane Ian closures; and WHEREAS, Monroe County Board of County Commissioners has agreed to abate a portion of the rental fees while the business was closed because of the significant damage and the beach closure; and WHEREAS, the parties have found the Original Agreement, as amended, to be mutually beneficial; and WHEREAS, the parties find that it would be mutually beneficial to enter into this Seventh Amendment to Lease Agreement; NOW THEREFORE, IN CONSIDERATION of the mutual promises and covenants contained herein, it is agreed as follows: 1. In accordance with Paragraph 6 (a), (b), and (c) of the Original Agreement, as amended, Lessee currently paid rent in the amount of Five Hundred Twenty-eight and 52/100 ($528.52) Dollars per month as of the time of the beach closure on September 27, 2022,plus applicable use tax, for retail merchandise or service concession space, with said rental payments due by the first (1") day of the month for which the rent is due. Lessee additionally pays to Lessor 7.5% of its monthly gross taxable sales, and a guaranteed minimum annual fee of 10.125%of its annual gross taxable sales, or the annual monthly rental of Five Hundred Twenty-eight and 52/100 ($528.52) Dollars,plus the total of the 7.5% of the monthly gross taxable sales, whichever is greater. 2 -.), The County, as Lessor, agrees to abate one-half of the total monthly rental payment for October 2022, which equals an abatement of fifteen (15) days in the amount of Two Hundred Sixty-four and 26/100(S264.26) Dollars due to the closure of Higgs Beach as a result of Hurricane Ian damage. This total rental abatement amount set forth herein may be applied as a credit towards the October rental payment or towards any future monthly rental payment due by Lessee if the October rental payment has already been paid by Lessee to the County. 3. Except as set forth in paragraphs 1 and 2 of this Seventh Amendment, in all other respects, the terms and conditions set forth in the Original Agreement, as amended, remain in cull force and effect. IN 'WITNESS WHEREOF, the parties hereto have set their hands and seals the day and year first above written. W ___11 AVIANI "hKi4.;-0-k\ \ . , BOARD OF cou-NTy COMMISSIONERS 4.1.--i74 cAt. IWO' EVEN MADOK, CLERK OF MONROE COUNTY, FLORIDA, --V,.... o \APOrgi IAA,.7...,,/,:, ‘,., 11 LESSOR .-1 t) • .• •1 • i001. ) " '7, li Utg',,,It.:,r11, / ,', ''.0,•••'.7.;,,,:, ...,.<.,/,''''' ,t ''''- ''riiY: Br lIa*1°4Y‘rt°1r A.seputy Clerk Mayor `Date: il it I Z023 • „A , .oRTs LNIft Witnesses for LESSEE: c LE- SEE ik- Si 1.),tUre Of person authorized to Signature legally bind Corporation Date: i 119'122- . lAdiPL-,-Nyidi Wridos cuirie-Nr 1 i tinted NArne a.nd Date . .. Print Name and Title co 3 1564-Address: -IA —rho rilo 5h : - tignati4 c, to 3 c-.+. , UKali a. 332410 1..... ,cm c•-:. CI mc. t..) 14-.1 —) c5._ _ _ ,...... [,-- Minted lviame and Date . Telephone Number - ft 3 monilifae=MTV ArrOlitiast'S OFFICE •49:14pS TO IVIV 112•16,711 I CIA EABLE ASSISTAK WINVZ4e4TTOFIN EY Inwrir! I 1 i VI ZAI#1:1— SALU WAT-01 REGAN L DIYYYY) DATE(MMID CERTIFICATE OF LIABILITY INSURANCE FDATE THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER.THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S),AUTHORIZED REPRESENTATIVE OR PRODUCER,AND THE CERTIFICATE HOLDER. IMPORTANT: If the certificate holder is an ADDITIONAL INSURED,the policy(ies)must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy,certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). PRODUCER CO NTT CT Linda Regan Insurance Office of America PHONE FAX 13361 Overseas Highway (A/C,No,Ext): (305)537-2782 (A/C,No): Marathon,FL 33060 E-MAIL Linda.Regan@ioausa.com INSURERS AFFORDING COVERAGE NAIC# INSURERA:Century Surety Company 36951 INSURED INSURER B: Salute Watersports,LLC INSURER C: 729 Thomas Street INSURER D: Key West,FL 33040 INSURER E INSURER F: COVERAGES CERTIFICATE NUMBER: REVISION NUMBER: THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACTOR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES.LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. INSR TYPE OF INSURANCE ADDL SUBR POLICY NUMBER POLICY EFF POLICY EXP LIMITS LTR INSD WVD MMIDDIYYYY MMIDD/YYYY A X COMMERCIAL GENERAL LIABILITY EACH OCCURRENCE $ 1,000,000 CLAIMS-MADE X OCCUR CCP1082332 8/2/2022 8/2/2023 DAMAGE TO RENTED 100 000 X PREMISES Ea occurrence $ X Owner's&Contractor MED EXP(Any oneperson) $ 5,000 PERSONAL&ADV INJURY $ 1,000,000 GEN'L AGGREGATE LIMIT APPLIES PER: GENERAL AGGREGATE $ 2,000,000 X POLICY PELT LOC PRODUCTS-COMP/OP AGG $ Included OTHER: $ A AUTOMOBILE LIABILITY COMBINED SINGLE LIMIT 500,000 Ea accident $ ANY AUTO X CCP1082332 8/2/2022 8/2/2023 BODILY INJURY Perperson) $ OWNED SCHEDULED AUTOS ONLY AUTOS BODILY INJURY Per accident $ X HIRED X NON-OWNED PROPERTY DAMAGE AUTOS ONLY AUTOS ONLY Per accident) ccident $ UMBRELLA LIAB OCCUR EACH OCCURRENCE $ EXCESS LIAB CLAIMS-MADE AGGREGATE $ DED RETENTION$ $ WORKERS COMPENSATION PER OTH- AND EMPLOYERS'LIABILITY YIN STATUTE ER ANY PROPRIETOR/PARTNER/EXECUTIVE OFFICER/MEMBER EXCLUDED? NIA (Mandatory in NH) E.L.DISEASE-EA EMPLOYEE $ If yes,describe under DESCRIPTION OF OPERATIONS below E.L.DISEASE-POLICY LIMIT $ DESCRIPTION OF OPERATIONS I LOCATIONS I VEHICLES (ACORD 101,Additional Remarks Schedule,may be attached if more space is required) Named A/I CG 2011 0413-Landlord Monroe County BOCC is additional insured with respect to General Liability and Auto Liability APPROVED RISK MANAGEMENT DATE 9/8/2022...,.. WAVER N/A YE X CERTIFICATE HOLDER CANCELLATION SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. AUTHORIZED REPRESENTATIVE Monroe County BOCC 1100 Simonton Street _ . (_; Key West FL 33040 ACORD 25(2016/03) ©1988-2015 ACORD CORPORATION. All rights reserved. The ACORD name and logo are registered marks of ACORD 2018 Union MONROE COUNTY,FLORIDA REQUEST FOR WAIVER OF INSURANCE REQUIREMENTS It is requested that the insurance requirements,as specified in the County's Schedule of Insurance Requirements,be waived or modified on the following contract. ;.,2 - &'),r/ '� , " LLB Contmc(or.,Vendor- Project or Service: Aec,-_eL ContractoriVendor Address&Phone 9 0 x? 154-et jos� -7 General Scope of Work.- C-k""3 U",4�-eAavv el--' - Reason for Waiver or 'o -ec', oc Modification: Policies Waiver or Modification will apply to: Signature of Con(ractor.'VerWor: ........... Dale: 4LL�_ Approved Not Approved Risk Managern"t Signature.... Dale, County Administrator appeal: Approved; Not Approved: Date: Board of County Commissioners appeal Approved: Not Approved: Meeting Dale: 431 off w ul, Administalfiv In str'udio 7500.7"J 104 -)IVA