Staff recommends approval of the Lease Agreement with John H. Osborne & Derek Schoening d/b/a Lake Marine Sales
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.
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
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.
Prepared by: __Charlie Weller_________
Attachments: Yes _X___ No ______
Advertised: ____Not Required __X____
Attorney Review : Yes _X__ No ____
Reviewed by: Dept. Head ________
Finance Dept. __________JB______
Deputy C.M. ___________________
City Manager ___________________
Account No. _001-0000-362-0110__
Project No. ___________________
WF 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.