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Item C20BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: February 20, 2008 Division: Housing & Community Development Bulk Item: Yes X No _ Department: Housing & Community Development Staff Contact Person: James R. "Reggie" Paros/289-6002 AGENDA ITEM WORDING: Approval of First Amendment to Ground Lease Agreement between Monroe County and Sea Grape Apartments, LTD, to extend the deadline to commence construction of Project ITEM BACKGROUND: At their August 15, 2007 meeting, the Board accepted the Sea Grape Apartments -Phase 1 site in Marathon from the Monroe County Land Authority and approved a 99-year Ground Lease. Provision 14.01(a) requires that the Initial Lessee shall commence construction of the Project by the earlier of one hundred twenty (120) days after the issuance of the building permits for the construction of the Project or November 1, 2007. It further states that the limitation of time for the completion of the project may be extended by written agreement between the parties. A letter has been received from Carlisle requesting an extended construction commencement deadline of May 30, 2008, as the development approvals necessary to commence construction have not been received. PREVIOUS RELEVANT BOCC ACTION: See above. CONTRACT/AGREEMENT CHANGES: The attached amendment extends the deadline to commence construction from November 1, 2007 to May 30, 2008. STAFF RECOMMENDATIONS: Approval TOTAL COST: N/A COST TO COUNTY: REVENUE PRODUCING: Yes No BUDGETED: Yes No SOURCE OF FUNDS: 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 # to lack,� CARLISLE DEVELOPMENT MANAGEMENT CONSTRUCTION January 29, 2008 Mr. Mark Rosch Executive Director Monroe County Land Authority 1200 Truman Avenue, Suite 207 Key West, FL 33040 Re: Sea Grape Apartments Ground Lease Amendment Petition Mr. Rosch: Provision 14.01(a) of the lease agreement between Monroe County and Sea Grape Apartments, Ltd. stipulates in pertinent part that "Initial Lessee shall commence construction of the Project by the earlier of one hundred twenty (120) days after the issuance of the building permits for the construction of the Project or November 1, 2007." While we have already been awarded our building permits for the project, the permits stipulate that we are unable to commence with construction until we receive our SFWMD permit. As you are aware from our earlier discussions, we have submitted our application for SFWMD permit and we expect to receive it within the next 30-60 days. In order to provide for this protracted permitting timeline, we respectively request that you accept an amendment to the lease agreement that would allow for an extended construction commencement deadline of May 30, 2008. Should you care to discuss this matter in greater detail or have any questions or concerns, please do not hesitate to contact me. Very truly yours, Charles S. Picciola CSP/ Encl. cc: Richard Deutch, Esq. (via email) Susan Grimsley, Esq. (via email) 2950 SW 27 Avenue • Suite 200 • Miami. FL 33133 • 305.476.8118 • 305.476.1557 carlisledevelopmentgroup.com FIRST AMENDMENT TO GROUND LEASE AGREEMENT (Sea Grape Apartments Phase I) THIS FIRST AMENDMENT (hereinafter "Amendment") to the Ground Lease Agreement (hereinafter "Lease") is made and entered into in Key West, Monroe County, Florida, on this day of , 2oo8, 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 by the deadline established in the Lease and Lessee requests an extension of said deadline; 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 14.01(a) of the Lease is deleted and replaced with the following: (a) Initial Lessee shall commence construction of the Project by May 30, 2oo8, and shall substantially complete construction of all fifty six (56) Affordable Housing Units within eighteen (18) months thereafter. The foregoing limitation of time for the completion of the Project may be extended by written agreement between the parties hereto. [There remainder of this page is blank.] Page 1 of 2 FEB-5-2008 05:21P FROM: TO:6071 P.3/3 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 LESSOR: MONROE COUNTY 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 Mayor t IAO� OE VED AS T FORY Y 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 [ l personally known to me, or who [ J has produced a drivers license as identification. Notary Public Print Name: My Commission expires: Page 2 of 2