AGENDA MEMORANDUM

Meeting Date: October 26, 2009

From:                          Kenneth L. Thomas, Director of Housing & Economic Development

Subject:                      Resolution authorizing a Lease Agreement with  Family Furniture & Carpet, Incorporated

Staff Recommendation: 

Staff recommends approval of the lease agreement with Family Furniture & Carpet, Incorporated for the purpose of occupying a City owned building at 8626 U.S. Highway 441, Leesburg.

Analysis:

The subject building is formally known as the “Furniture Country Galleries” site.  Family Furniture & Carpet will occupy the entire building square footage for the purpose of selling home furniture and carpet.  The terms of the lease are as follows:

Terms	Amount per month
Year 1 Jan 2010 to Oct 31, 2010	$8,000.00
Year 2 Nov 2010 to Oct 31, 2011	$8,500.00
Year 3 Nov 2011 to Oct 31, 2012	$9,500.00
Year 4 Nov 2012 to Oct 31, 2013	$10,000.00
Year 5 Nov 2013 to Oct 31, 2014	$11,000.00
Second Term
Year 6 Nov 2014 to Oct 31, 2015	$12,000.00
Year 7 Nov 2015 to Oct 31, 2016	$13,000.00
Year 8 Nov 2016 to Oct 31, 2017	$13,500.00

Beginning on November 1, 2017 and on November 1^st of each year thereafter of the first and second renewal terms if exercised, the rent shall be increased by adding to the rent paid during the immediately preceding lease year an amount equal to the product of the rent being paid in the immediately preceding lease year times the percentage increase over the immediately preceding lease year in the CPI (Consumer Price Index).

Options:

1.  Approve the lease agreement and/or; 

2.  Such alternative action as the Commission may deem appropriate

Fiscal Impact: 

Over the 1^st term of the contract the City will realize a total of $564,000 and if the 2^nd term is executed the amount will total $462,000 with a grand total of $1,026,000 (less the remaining two years).

Submission Date and Time:    10/23/2009 3:25 PM____

Department: ______________________ Prepared by:  ______________________                      Attachments:         Yes____   No ______ Advertised:   ____Not Required ______ Dates:   __________________________                      Attorney Review :       Yes___  No ____ _________________________________            Revised 6/10/04

Reviewed by: Dept. Head ________ Finance  Dept. _________JB_______                                    Deputy C.M. ___________________                                          Submitted by: City Manager ___________________

Account No. _________________ 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 FAMILY FURNITURE AND CARPET, INCORPORATED TO LEASE SPACE AT 8626 U.S. HIGHWAY 441, LEESBURG, FLORIDA; 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 an agreement with  Family Furniture and Carpet, Incorporated for purpose of leasing space at 8626 U.S. Highway 441, Leesburg, Florida 34748, Alternate Key 2653311.

 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 _26th____ day of __October_______ 2009.

                                                                            _________________________________

                                                                             Mayor

ATTEST:

_______________________________

City Clerk