Staff recommends approval of the Lease Agreement with All Terrain Lawn & Tractor, Inc.
The airport property located at 8735 US Highway 441 has been vacant for approximately one year. 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.
In the interim it is recommended that the property be leased to All Terrain Lawn and Tractor, Inc.. The building will be used for the storage, repair and sale of new and used tractors. In return for paying no rent in December 2009 and January 2010, the Lessee will paint the exterior of the building using a color approved by the City. Repairs will also be made to the exterior of the building including the roof and overhead doors and landscaping will be added. All of this work will be completed at the Lessee’s expense.
The attached lease agreement has in initial term of two-years ending in November, 2011. At the expiration of that term, if the tenant wishes to remain in the building the lease includes an option for one two-year renewal. At the end of the second term, if the tenant wants to stay in the building it will be 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 and second years is $1,000.00 per month plus all applicable taxes (including property taxes). Rent for the third lease year will be $1,500.00 per month and rent for the fourth 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.
1. Approve execution of the Lease Agreement with All Terrain Lawn & Tractor, Inc.; or
2. Such alternative action as the Commission may deem appropriate
This agreement will generate $22,000.00 in revenue to Leesburg International Airport over the initial two-year term. The lease will 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. ___________
Deputy C.M. ___________________
City Manager ___________________
Account No. _001-0000-362-0110 _
Project No. ___________________
WF No. ______________________
A RESOLUTION OF THE CITY COMMISISON OF THE CITY OF LEESBURG, FLORIDA AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE A LEASE AGREEMENT WITH ALL TERRAIN LAWN & TRACTOR, INC., A FLORIDA CORPORATION, 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 All Terrain Lawn & Tractor, Inc. , a Florida corporation, whose address is 8735 US Highway 441 South, Leesburg, Florida 34788 for property 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 9th day of November, 2009.