AGENDA MEMORANDUM

 

 

Meeting Date:           September 14, 2009

 

From:                          Charlie Weller, Airport Manager

 

Subject:                      Resolution authorizing a Lease Agreement with John H. Osborne & Derek Schoening d/b/a Lake Marine Sales for property at Leesburg International Airport

 

 

Staff Recommendation:

Staff recommends approval of the Lease Agreement with John H. Osborne & Derek Schoening d/b/a Lake Marine Sales

 

Analysis:

The airport property located at 8735 US Highway 441 has been vacant for several months.  Previous tenants include used vehicle retailers Drive Time and Truck World.  The intent is to eventually build T-hangars on the property to generate revenue for Leesburg International Airport.  However, funding for this project will not be available from the State (FDOT) for three to four years.

 

The building will be used for a marine sales lot and marine engine repair and maintenance business.  In return for not paying rent in September and October, 2009, the Lessee will paint the exterior of the building using a color approved by the City.  Lessee will also cover the cost of repairs  to the exterior of the building including the roof and overhead doors and landscaping. 

 

The attached lease agreement has in initial term of three-years ending in August, 2012.  At the expiration of that term, if the tenant remains in the building the lease will continue on a month to month basis.  When funding becomes available to move forward with the T-hangars, the lease will be terminated.

 

The lease rate for the first year is $1,000.00 per month plus all applicable taxes (including property taxes).  Rent for the second lease year will be $1,500.00 per month and rent for the third year will be $2,000.00 per month.  The Lessee will be responsible for maintenance on the building, air conditioning system, parking lot, utilities, and grounds keeping during the lease period.

 

The Airport Advisory Board reviewed this agreement at their September 8, 2009 meeting.

 


 

Options:

1.  Approve the Lease Agreement with John H. Osborne & Derek Schoening d/b/a Lake Marine Sales; Or

2.  Such alternative action as the Commission may deem appropriate

 

 

Fiscal Impact

This agreement will generate $52,000.00 in revenue to Leesburg International Airport over the initial three-year term. This lease will also generate additional revenue for the City via use of City utilities.

 

 

 

Submission Date and Time:    9/10/2009 10:47 AM____

 

Department: __Airport_______________

Prepared by:  __Charlie Weller_________                     

Attachments:       Yes _X___   No ______

Advertised:   ____Not Required __X____                     

Dates:   __________________________                     

Attorney Review :     Yes _X__  No ____

                                                

_________________________________           

Revised 6/10/04

 

Reviewed by: Dept. Head ________

 

Finance  Dept. __________JB______                                     

                              

Deputy C.M. ___________________                                                                         

Submitted by:

City Manager ___________________

 

Account No. _001-0000-362-0110__

 

Project No. ___________________

 

WF No. ______________________

 

Budget  ______________________

 

Available _____________________


 

RESOLUTION NO._______________

 

A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA, AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH JOHN H. OSBORNE & DEREK SCHOENING D/B/A LAKE MARINE SALES CENTER FOR PROPERTY AT LEESBURG INTERNATIONAL AIRPORT; AND PROVIDING AN EFFECTIVE DATE.

 

BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF LEESBURG, FLORIDA:

 

            THAT the Mayor and City Clerk are hereby authorized to execute a Lease Agreement with John H. Osborne & Derek Schoening d/b/a Lake Marine Sales whose address is 9023 South U.S. Highway 441, Leesburg, Florida 34788, for property located at 8735 US Highway 441 South, Leesburg, FL at Leesburg International Airport.

 

             THAT this resolution shall become effective immediately.

 

PASSED AND ADOPTED by the City Commission of the City of Leesburg, Florida, at a regular meeting held the 14th day of September, 2009.

 

 

 

                                                                            __________________________

                                                                             Mayor

 

ATTEST:

 

 

__________________________

City Clerk