Item D10 D10
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5
The Florida Keys Mayor Pro Tern James K.Scholl,District 3
Craig Cates,District 1
Michelle Lincoln,District 2
' David Rice,District 4
Board of County Commissioners Meeting
May 15, 2024
Agenda Item Number: D10
2023-2476
BULK ITEM: Yes DEPARTMENT: Tourist Development Council
TIME APPROXIMATE: STAFF CONTACT: Ammie Machan 305-296-1552
N/A
AGENDA ITEM WORDING: Approval of an Amendment to Agreement with C.B. Schmitt Real
Estate Co., Inc. to provide office and parking space for the Monroe County Tourist Development
Council administrative office for an additional five (5)year period for $10,880/month commencing on
October 1, 2024 and terminating on September 30, 2029 with an option to extend for an additional five
(5)year period with rent to be renegotiated at fair market rate. This amendment also includes additional
office and parking spaces at no additional monthly cost.
ITEM BACKGROUND:
See attached.
TDC approved at their meeting of April 30, 2024
PREVIOUS RELEVANT BOCC ACTION:
BOCC approved original lease Agreement at their meeting of December 9, 1998 and Amendments to
Agreement at their meetings of November 19, 2003, December 17, 2008, September 18, 2013 and April
17, 2019
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
Amendment to Extend and include additional office and parking spaces (at no additional monthly
charge)
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
TDC Office Lease.pdf
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FINANCIAL IMPACT:
116-76007-SC_00050 $10,880/month plus 48% of yearly property tax
116-76077-SC_00039 not to exceed $50,000 to build out new office space
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DATE: April 30, 2024
TO: Monroe County Board of County Commissioners
FROM: Maxine Pacini, TDC Office Manager
RE: Consideration and Action re: Schmitt Real Estate Lease Agreement 2024 - 2029
Our current agreement with C.B. Schmitt Real Estate Co. Inc. to provide office and parking space for
the Monroe County Tourist Development Council administrative office expires on September 30,
2024. C.B. Schmitt Real Estate Co. Inc. has agreed to extend the lease for the next five (5) years for
a monthly rent payment of $10,880 (current is $9,550) with an option to extend for an additional five
(5) year period with the rent to be re-negotiated at fair market rent in effect at that time.
In addition to the extension on the currently leased office space, CB Schmitt Real estate Co. Inc. has
agreed to provide the TDC with an additional 1415 Sq. ft of the adjacent building and four (4)
additional parking spots (totaling 8) at no extra cost per month. This will enable us to provide space
for the additional staff we may need to hire in the near future. The new office space will need to be
built out to meet our requirements and the TDC will pay for those required changes. The space will
be accessible to us beginning October 1, 2024.
Attached is a copy of the Addendum to Agreement to extend the lease to September 30, 2029 with
an option to extend for one (1) additional five year period with the rent to be re-negotiated at fair
market rent in effect at that time.
Assistant County Attorney Christine Limbert has reviewed the Addendum to Agreement and signed
for approval of it.
TDC approved same at their meeting of April 30, 2024.
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ADDENDUM TO AGREEMENT
THIS ADDENDUM to Lease Agreement is made and entered into this day of
2024 by and between C.B. SCHMITT REAL ESTATE CO. Inc. (hereinafter
"Lessor"), a corporation incorporated in the State of Florida, whose address is 1201 White
Street, Suite B, Key West, Florida 33040 and MONROE COUNTY (hereinafter "Lessee"), a
political subdivision of the State of Florida, whose address is 1100 Simonton Street, Key West,
Florida 33040.
WITNESSETH
WHEREAS, there was an Agreement entered into on December 9, 1998, between the
parties, to provide office and parking space for the Monroe County Tourist Development Council
(hereinafter"TDC") administrative offices; and
WHEREAS, the original agreement provided an option to extend the lease agreement
for two (2) additional five-year(5) terms; and
WHEREAS, there was an Addendum to Agreement entered into on November 19, 2003
to exercise one (1) of the additional five-year(5) terms; and
k WHEREAS, there was an Addendum to Agreement entered into on December 17, 2008
to exercise the second (211) additional five-year (5)term; and
WHEREAS, there was an Addendum to Agreement entered into on September 17th
2013 to extend Agreement through September 30, 2019 with an option to extend for an
additional five (5) year period with the rent to be re-negotiated at fair market rent in effect at that
time; and
WHEREAS, there was an Addendum to Agreement entered into on April 17th, 2019 to
extend Agreement through September 30, 2024 with an option to extend for an additional five
(5)year period with the rent to be re-negotiated at fair market rent in effect at that time; and
WHEREAS, the Lessee continues to require office and parking space for the TDC
administrative offices and the TDC administrative offices also seeks additional office and
parking space in order to add staff as needed; and
WHEREAS, the Lessor is able to continue to provide office and parking space for the
TDC administrative offices and is also able to provide additional office space of approximately
1415 sq. ft. in the adjoining office space and additional parking space commencing October 1,
2024 with all improvement necessary to be completed by Landlord's contractor and reimbursed
by the TDC; and
WHEREAS, the TDC recommends that the agreement be extended for a term of five (5)
additional years, with an option to extend for one (1) additional five year period with the rent to
be re-negotiated at fair market rent in effect at that time;
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
parties agree to hereby amend the agreement entered into on December 9, 1998 and amended
2024 TDC Office Lease Amendment to Agreement
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on November 19, 2003; December 17, 2008; September 1711, 2013 and April 1711, 2019 as
follows:
1. Paragraph 1. PROPERTY shall be revised to add the following:
Commencing on October 1, 2024, the LESSOR, leases exclusively to the LESSEE an
additional office space of approximately 1415 sq. ft. as noted as "additional TDC space"
as shown on Site Plan-Exhibit C and the entire back parking lot (8 parking spots).
2. The following language shall be added to Paragraph 2. TERM:
The term of this Addendum to Lease Agreement is five (5) years running from October 1,
2024 through September 30, 2029 with an option to extend for an additional five (5) year
period with the rent to be re-negotiated at fair market rent in effect at that time.
3. Paragraph 4 RENT. shall read:
4. RENT.
For the use of the premises, including the additional office space of approximately 1415
sq. ft, the Lessee must pay the Lessor the sum of $10,880 per month (October 1, 2024
through to September 30, 2029) due in monthly installments on the first day of each
month. The monthly payments shall be remitted to C.B. Schmitt Real Estate Co., Inc.
1201 White Street, Suite B, Key West, FL 33040 upon receipt of a monthly invoice. If the
option to extend for an additional five (5) year period is exercised, the rent will be re-
negotiated at fair market rent in effect at that time.Monroe County's performance and
obligation to pay under this lease agreement is contingent upon annual appropriation by
the Monroe County Board of County Commissioners. Additionally, Lessee shall pay
Lessor, upon receipt of an invoice and proof of Lessor's payment of property taxes, 48%
of the property taxes for 1201 White Street. The Lessor shall submit to Lessee by
September 1st of each year a copy of the proposed annual property tax assessment, in
order for the amount of payment in the succeeding fiscal year to be established in the
budget.
4. Paragraph 7. CONDITION OF PREMISES. shall be amended to add the following:
The additional office space of approximately 1415 sq. ft. will be built out and renovated
by Lessor's contractor(s) of choice. The build out and renovation will include but not be
limited to adding an interior entrance, new flooring/carpeting, and painting. The
estimated cost for the build out and renovation is approximately $50,000. The Lessee will
reimburse the Lessor for the completed build out and renovation upon presenting proof
of payment/paid invoice to the LESSOR's contractor.
5. Paragraph 9 HOLD HARMLESS shall be amended to read as follows:
Subject to the provisions of Sec. 768.28, Florida Statutes, The LESSEE is liable for and
shall defend, release, discharge, indemnify and hold harmless the LESSOR, and against
any and all claims, demands, causes of action, losses, costs and expenses of whatever
type including investigation and witness costs and expenses and attorneys' fees and
costs- that arise out of or are attributable to the LESSEE's operations on the premises
except for those claims, demands, damages, liabilities, actions, causes of action, losses,
costs and expenses that are the result of acts or omissions of the LESSOR, its
employees and agents.
6. Paragraph 10 NON-DISCRIMINATION shall be amended to read as follows:.
2024 TDC Office Lease Amendment to Agreement
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The Parties agree that there will be no discrimination against any person, and it is
expressly understood that upon a determination by a court of competent jurisdiction that
discrimination has occurred, this Agreement automatically terminates without any further
action on the part of any party, effective the date of the court order. The Parties agree to
comply with all Federal and Florida statutes, and all local ordinances, as applicable,
relating to nondiscrimination. These include but are not limited to: 1) Title VII of the Civil
Rights Act of 1964 (PL 88-352) which prohibits discrimination in employment on the
basis of race, color, religion, sex, and national origin; 2) Title IX of the Education
Amendment of 1972, as amended (20 USC ss. 1681-1683, and 1685-1686), which
prohibits discrimination on the basis of sex; 3) Section 504 of the Rehabilitation Act of
1973, as amended (20 USC s. 794), which prohibits discrimination on the basis of
disabilities; 4) The Age Discrimination Act of 1975, as amended (42 USC ss. 6101-
6107) which prohibits discrimination on the basis of age; 5) The Drug Abuse Office and
Treatment Act of 1972 (PL 92-255), as amended, relating to nondiscrimination on the
basis of drug abuse; 6) The Comprehensive Alcohol Abuse and Alcoholism Prevention,
Treatment and Rehabilitation Act of 1970 (PL 91-616), as amended, relating to
nondiscrimination on the basis of alcohol abuse or alcoholism; 7) The Public Health
Service Act of 1912, ss. 523 and 527 (42 USC ss. 690dd-3 and 290ee-3), as amended,
relating to confidentiality of alcohol and drug abuse patient records; 8) Title VIII of the
Civil Rights Act of 1968 (42 USC s.3601 et seq.), as amended, relating to
nondiscrimination in the sale, rental or financing of housing; 9) The Americans with
Disabilities Act of 1990 (42 USC s. 12101 Note), as may be amended from time to time,
relating to nondiscrimination on the basis of disabilities; 10) Monroe County Code,
Chapter 14, Article II, which prohibits discrimination on the basis of race, color, sex,
religion, disability, national origin, ancestry, sexual orientation, gender identity or
expression, familial status or age; 11) Any other nondiscrimination provisions in any
Federal or state statutes which may apply to the parties hereto, or the subject matter of,
this Agreement.
7. Paragraph 11 TERMINATION shall be amended to read as follows:
Termination of this Lease Agreement shall be September 20, 2029. LESSEE may
terminate this Lease Agreement by providing at least six (6) months' written notice of
termination. LESSEE shall have the option to extend this Lease Agreement for one (1)
additional five-year (5) periods unless terminated earlier pursuant to Paragraph 12 or by
providing six (6) months'written notice of termination. In order to exercise the options
granted herein, LESSEE must exercise the options in writing by certified mail at least
ninety (90) days prior to the end of the original lease term or any extensions therefore if a
prior option has been exercised.
8. The remaining provisions of the contract dated December 9, 1998, and amended
November 19, 2003; December 17, 2008; September 17th, 2013, and April 17th, 2019,
not inconsistent herewith shall remain in full force and effect.
(SEAL)
Attest: Kevin Madok, Clerk Board of County Commissioners of
Monroe County
By: By:
Deputy Clerk Mayor/Chairman
MONROE COUNTY ATTORNEY
APPR van AS TO FO a:
2024 TDC Office Lease Amendment to Agreement SSIIS"TCNTCOUN:R ATTORNEY
ASSISTANT COUNTY ATTORNEY
DATE, 4/17/24
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Lessor, C.B. Schmitt Real Estate Co., Inc.
By:
Witn ss P sIdent
Printed Name: - °C I ej i
Third Party, 3406 North Roosevelt Blvd. Corp
By:
President
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2024 TDC Office Lease Amendment to Agreement
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EXHIBIT C-SITE PLAN
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