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Item C25BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: March 19, 2008 Division: Housing & Community Development Bulk Item: Yes X No _ Department: Housing & Community Development Staff Contact Person: Reggie Paros/289-6002 AGENDA ITEM WORDING: Approval of Second Amendment to Ground Lease Agreement between Monroe County and Sea Grape Apartments, LTD. ITEM BACKGROUND: At their August 15, 2007 meeting, the Board accepted the Sea Grape Apartments -Phase I site in Marathon from the Monroe County Land Authority and approved a 99-year Ground Lease. South Florida Water Management District is requiring the County to be a co -applicant and a co-permittee for an environmental resources permit. This lease amendment delegates and makes the Lessee responsible for all permit applications and submissions and the Lessee agrees to indemnify the County for any adverse consequences resulting from applications or the activities under any permits. PREVIOUS RELEVANT BOCC ACTION: On August 15, 2007, the Board accepted the Sea Grape Apartments -Phase I site in Marathon from the Monroe County Land Authority and approved a 99-year Ground Lease. On February 20, 2008, Board approved First Amendment to lease, to extend the deadline to commence construction of project. CONTRACT/AGREEMENT CHANGES: The attached amendment delegates and makes the Lessee responsible for all permit applications and submissions and the Lessee agrees to indemnify the County for any adverse consequences resulting from applications or the activities under any permits. STAFF RECOMMENDATIONS: Approval TOTAL COST: N/A BUDGETED: Yes No COST TO COUNTY: SOURCE OF FUNDS: REVENUE PRODUCING: Yes No AMOUNT PER MONTH Year APPROVED BY: County Atty YES OMB/Purchasing N/A Risk Management N/A DOCUMENTATION: DISPOSITION: Revised 8/06 Included X Not Required AGENDA ITEM # SECOND AMENDMENT TO GROUND LEASE AGREEMENT (Sea Grape Apartments Phase I) THIS SECOND AMENDMENT (hereinafter "Amendment 2") to the Ground Lease Agreement (hereinafter "Lease") is made and entered into in Key West, Monroe County, Florida, on this day of , 20o8, by and between MONROE COUNTY (hereinafter "Lessor") and SEA GRAPE APARTMENTS, LTD., a Florida limited partnership (hereinafter "Lessee"). RECITALS WHEREAS, the parties entered into the Lease dated September 28, 2007 and recorded in Official Records Book 2323 at Page 795; and WHEREAS, the purpose of the lease is to allow Lessee to construct and manage 56 units of affordable rental housing known as Sea Grape Apartments Phase I; and WHEREAS, Lessee has not received the development approvals necessary to commence construction, including but not limited to those required from environmental agencies such as South Florida Water Management District and Army Corps of Engineers; and WHEREAS, Lessee is willing to take all responsibility for applications for development necessary to proceed with construction of the affordable housing; NOW THEREFORE, in consideration of the mutual covenants and obligations contained herein, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. Section 9.04 of the Lease is added as follows: Lessee shall make all applications for building and environmental permits and permits of any other type and nature required for the Project. Lessor designates Lessee to make such applications on its behalf and will cooperate in the execution of any documents necessary to complete the applications. Lessee shall be solely responsible for the content and accuracy of all such applications and shall hold harmless and indemnify Lessor for any errors, statements, and representations made in any such applications. Lessee shall indemnify and hold harmless Lessor for all activities performed or not performed by Lessee, for any of its acts or omissions and those of its contractors, agents, employees and servants as required by any permitting agency. Lessee shall abide by any permit requirements, conditions, encumbrances or restrictions of any kind on the real property which is the subject of this Lease. The conditions of any permit shall be required in any contract between Lessee and its contractors and sub- contractors. Direct costs associated with permits including fees, fines, mitigation and penalties shall be the obligation of the Lessee. Page i of 2 2. The remaining terms of the Lease, not inconsistent herewith, shall remain in full force and effect. IN WITNESS WHEREOF, the Lessor and the Lessee have hereunto set their hands and seals, as of the day and year above written. (Seal) ATTEST: DANNY L. KOLHAGE, CLERK Deputy Clerk Signed, Sealed and Delivered in the presence of two witnesses: Printed Name Printed Name (as to Lessee) STATE OF FLORIDA COUNTY OF MIAMI-DADE LESSOR: MONROE COUNTY am Mayor LESSEE: SEA GRAPE APARTMENTS, LTD. By: Lloyd J. Boggio, President For TCG SEA GRAPE, LLC, General Partner The foregoing instrument was acknowledged before me this day of , 2008, by Lloyd J. Boggio, as President of and for TCG Sea Grape, LLC, a Florida limited liability company, the general partner of Sea Grape Apartments, Ltd., a Florida limited partnership, on behalf of both entities, who is [ ] personally known to me, or who [ ] has produced a drivers license as identification. Notary Public Print Name: My Commission expires: Seal Page 2 Of 2 MONROE COUNTY ORNEY • �t APPROV AST RM D